Better Health for All

The company's principal goods and services, which are defense products and services, have no significant direct positive or negative health impact. Leonardo DRS's charitable foundation supports the National Intrepid Center of Excellence for Traumatic Brain Injury (TBI) and psychological health.

The foundation also supports the LifeBac program, which addresses alcoholism using psychotherapy and pharmacotherapy (Baclofen), reporting a 65% success rate for treatment-resistant alcoholics and a 92% craving suppression rate.

Fair Pay & Worker Respect

Leonardo DRS's CEO to median employee pay ratio was 89:1 in 2024.

As of December 31, 2024, 7% of Leonardo DRS employees were represented by labor unions. For the parent company, Leonardo, the total median value of the remuneration ratio (women average remuneration/men average remuneration) was 104% in 2024. Leonardo DRS achieved a 'Great Place to Work®' certification in 2022, and in 2023, 83% of surveyed employees responded positively that DRS is a great place to work. In the past three years, DRS Technical Services Inc. had a $13,700,000 False Claims Act violation in 2014 and a $1,000,000 False Claims Act violation in 2015. DRS Power Technology, Inc. had a $13,000 workplace safety or health violation in 2018. DRS-Test & Energy Management, LLC had an $8,000 labor relations violation in 2011.

Fair Trade & Ethical Sourcing

The provided articles, including Leonardo DRS's 2023 Supplier Code of Conduct and an article on supplier diversity, do not contain any quantitative data points relevant to the Fair Trade & Ethical Sourcing KPIs.

While the Supplier Code of Conduct outlines expectations for suppliers regarding human rights, child labor, human trafficking, and conflict minerals, it does not provide specific metrics on certification coverage, audit frequency, incident rates, traceability, remediation speed, contractual clause coverage, high-risk material spend, or supplier diversity spend. Both articles explicitly state the absence of quantitative data for the requested metrics.

Honest & Fair Business

Leonardo DRS, Inc. mentions a Code of Ethics & Business Conduct with annual employee confirmation of adherence, indicating a policy exists but without details on training effectiveness, hotline presence, or investigation processes.

The company states compliance with FCPA and other anti-corruption laws, but specific policy strength, training frequency, or enforcement details are not provided.

No War, No Weapons

The company's core business is providing defense products and services to military, intelligence, and security agencies worldwide, including the U.S. Department of Defense and allied governments. This is evidenced by its self-description and contracts such as a $417.2 million agreement with a five-year duration from July 2024 to July 2029, with $250,000 obligated for Fiscal 2024, and a $45 million U.S. Navy investment commitment for a new naval propulsion manufacturing facility.

The company has a Conflict Minerals Policy Statement, but no quantitative data is provided on the percentage of its supply chain certified free from conflict minerals.

Planet-Friendly Business

The company's total Scope 1, 2, and 3 greenhouse gas emissions in 2023 were 6,075,262 tCO₂e.

It has near-term emissions reduction targets validated by the Science Based Targets initiative (SBTi) in 2024, with Scope 1 and 2 targets classified as adequate for a 1.5°C pathway. 37% of its energy consumption is sourced from renewables. Water withdrawals in 2023 were 4,929 megaliters, and with revenues of €15.3 billion, this equates to approximately 322 m³ per €1 million revenue. The company recovered and/or recycled 49% of its total waste in 2023. It pursues the implementation of Life Cycle Assessment (LCA) methodology for production processes and products. 52% of the company's suppliers by emissions (covering Scope 3, categories 1 and 2) are targeted to set science-based targets by 2028. The company has two recorded hazardous waste violations, one in 2009 for $6,450 and one in 2006 for $5,467. Water Site Risk Analysis (WSRA) covered 31 sites, accounting for nearly 90% of the Group’s annual water withdrawal. Leonardo UK has a net-zero target for Scope 1 & 2 GHG emissions by 2030 and Scope 3 by 2050. The company evaluates and monitors climate risks and opportunities in compliance with the Task Force on Climate-related Financial Disclosure (TCFD) standard. Physical risks are evaluated through scenario analysis considering RCP 8.5 and RCP 2.6 (2°C/1.5°C) scenarios, and the IEA NZE 2050 scenario is used for assessing risks and opportunities. 12% of water withdrawals are from water-stressed areas.

Safe & Smart Tech

Leonardo DRS has certified adherence to the EU-U.S. Data Privacy Framework (DPF) and the UK Extension to the EU-U.S. DPF, demonstrating compliance with significant international privacy standards.

The company provides annual mandatory ethics and compliance training for all employees. It utilizes commercially reasonable security measures such as encryption, firewalls, and Secure Socket Layer (SSL) or HTTPS to protect personal data. Leonardo DRS states it maintains administrative, technical, and physical safeguards to protect personal data against unauthorized destruction, loss, alteration, access, disclosure, or use, and has no documented incidents of unauthorized data use. However, the company collects a broad range of personal data, including financial account information, education, medical information, and employment history, and retains it for a period consistent with the original purpose for collection, without specifying strict minimization or retention limits. While the company states it does not collect 'Sensitive Personal Data' as defined by its policy, its definition of 'personal data' includes categories often considered sensitive. Users have rights to access, correct, and delete their data, but the policy notes these rights are subject to certain exceptions, indicating limitations on user control. Privacy considerations are integrated into development by implementing appropriate technical and organizational measures to ensure a level of security appropriate to the risk, but the extent of privacy impact assessments across products is not specified.

Zero Waste & Sustainable Products

The company achieved a 51% recovery rate for waste produced in 2022.

Through its “Plasticless” project, it eliminated about 80% of water bottles and avoided approximately 120 tons of plastic per year from 2022. The company applies Product Life Cycle Management and Eco-design approaches, including for specific aircraft sub-systems, to design products with lower energy and material consumption and with environmentally friendly materials. It also adopts a “Product as a service” model, manages product end-of-life, and uses Life Cycle Assessment. Waste reduction initiatives include clean-up activities, the “Plasticless” project, and the recovery and reuse of plastic packaging for manufacturing materials. The company aims for a 15% reduction in waste produced by 2025 and by 2030, both against a 2019 baseline. Hazardous waste management includes an 11.5% reduction in the share of hazardous waste in 2023 compared to 2022, and initiatives to substitute SF6 and reduce PFAS pollutants. Products like aircraft structures are designed for a service life exceeding 20 operating years, with component replacement only at end-of-life and software updates to extend hardware life. The company encourages partners to adopt waste recycling targets and plans, with 100% of LEAP partners having set targets and plans on waste recycling.