Textron : 2023 Corporate Responsibility Report

2023 Corporate Responsibility Report

2023 CORPORATE RESPONSIBILITY REPORT

Table of Contents

. . . . .Chairman & CEO Letter	. . . . . . . . . . .	.	1. .	.		.SOCIAL. .								GOVERNANCE
2023 Highlights	. . . . . . . .	.	2. .		. People. . . -. Our. . Talent Strategy	. . . . .	.16.		. Data. . .Privacy & Information Security . .	. . . . . .	30. . .
Textron-Around the World .	. . . . . . . . . . .	.	3.	.		.• Safe. . . Workplaces	. . . . . . . .	. . . . .	17. .		. .Ethics. .&.Compliance.	. . . . . . . . . . . . .	. . . .	31. . .	. .
Our Business Segments . . .	. . . . . . . . . . .4 .		. • Health. . &. Well. -Being	. . . . .	.19. .		. . Human Rights	. . . . . . . . . . .	. . . .34. . . .
Our Values	. . . . . . . . .	.	5.			• Compensation & Benefit	Programs .	. . . . . .	20. .	. . . .			. . . .35. . .
. . . . . . .							Supply Chain
							• Talent Development Programs	.. 21			Forward-Looking Statements	. . . . 36
ENVIRONMENT							• Building and Engaging Our Workforce	. . . . . .	24			. . . .	37. . . .
															TCFD Disclosures Index
Building a Sustainable Future	.	6. .		.• 2023. . Workforce.	Metrics .	. . . . . . . . . .	. . . . .	26. . .	. ..			. . . .38. . .
															SASB Disclosures Index
Achieve 2025 Sustainable Operations Goals . .	. .7.			Product Safety .	. . . . . . .	. . . . . . . . . . . .	.28
Sustainability in Our Products and Services . .	.12.			Community . . . .	. . . . . . .	. . . . . . .	. . . . .29
Resilient Facilities	. . . . . . . .	. 15. . .		. . . . . .

2023 CORPORATE	CHAIRMAN	1
RESPONSIBILITY REPORT	& CEO LETTER

"As we make progress on our sustainability initiatives, we continue to innovate with products and technologies that help our customers achieve their sustainability

goals and lessen their environmental footprint."

DEAR COLLEAGUES, SHAREHOLDERS AND FRIENDS,

I am pleased to share our 2023 Corporate Responsibility Report.. At Textron, our core values of integrity, respect, trust and the pursuit of excellence drive who we are and how we conduct our business.. These values are our north star, aligning with the goals that we have set for ourselves with respect to reducing our environmental footprint and supporting the health, safety and well-being of our employees, while upholding the highest standards of ethics and business conduct throughout our global operations..

The comprehensive review presented in this report demonstrates the progress that we've made in our Environmental, Social and Governance (ESG) priorities.. We take seriously our role as a responsible corporate citizen and recognize that our work in each of these areas is inextricably linked to our business and ultimately creates long-term value for our shareholders..

Environmental sustainability continues to be a priority at Textron, both for the products that we develop and manufacture as well as in our operations.. Our businesses have been actively working to reach our Achieve 2025 initiative goals, completing more than 190 projects at our facilities around the world last year to reduce the energy and natural resources used in our operations.. We're seeing

tangible results as we surpass or remain on track to meet our goals in areas of greenhouse gas emissions, energy use, water use and waste generation.. Our efforts have also resulted in measurable cost savings to our businesses..

As we make progress on our sustainability initiatives, we continue to innovate with products and technologies that help our customers achieve their sustainability goals and lessen their environmental footprint.. We are continuing to electrify many of our specialized vehicles products and are making meaningful strides in our development of sustainable aircraft products..

None of these achievements is possible without a highly skilled, engaged and motivated workforce.. We remain committed to developing our people at all levels with trainings, continuing education programs and tools that prepare them for opportunities to learn, grow and achieve throughout their careers with Textron.. In addition, maintaining the health, safety and well-being of our employees remains a key priority for us as a company..

In 2023, we introduced to our employees and other constituents our reimagined Business Conduct Guidelines (BCGs).. Our BCGs have provided guidance to Textron's

management, employees and Board of Directors for more than 40 years.. We've made periodic improvements to our BCGs over the years, but with this new version we have taken a fresh and modern approach, presenting them in a more concise, navigable and easy-to-understand format.. Our BCGs, which have been translated into the languages most frequently used by Textron's global workforce, continue to uphold Textron's values while serving as a guidepost for us to conduct business with the highest ethical standards..

I want to thank our 35,000 Textron employees for their commitment in pursuing our ESG priorities and extend my appreciation to our stakeholders-our shareholders, customers, communities, suppliers and industry partners-

for working with us in our efforts to	build	a more sustainable
future.. I am confident that together	we	will, with respect and

integrity, continue to pursue excellence and drive innovation that leads to more sustainable solutions for our world..

Scott C. Donnelly

Chairman and Chief Executive Officer

2023 CORPORATE	CRR HIGHLIGHTS
RESPONSIBILITY REPORT

2023 Highlights

ENVIRONMENTAL

• Reduced greenhouse gas emissions (GHG) intensity by 29% compared to 2019 baseline year

• 43% of Textron's electricity use was from renewable sources

• Completed more than 190 projects at our facilities worldwide to reduce energy use and conserve natural resources

GOVERNANCE

• Launched Textron's updated Business Conduct

Guidelines

• Our Ethics and Compliance Helpline is available to all employees via telephone or via email-confidentially

• Employees completed more than 14,600 live training hours and over 163,000 online training courses on ethics & compliance topics

2

SOCIAL

• 33.2% of managers in our U..S.. operations are women or people of color
• More than 65% of our 2023 college interns converted to full-time positions or second internships in 2024
• As part of our Education Assistance Program, Textron reimbursed more than $6.3 million to more than 1,300 employees enrolled in approved degree or certification programs

Proud to Be Recognized By:

• Fortune World's Most Admired Companies
• Wall Street Journal Best Managed Companies
• Forbes America's Best Large Employers
• Forbes Best Employers for Diversity
• Forbes America's Best Employers for Women
• Newsweek America's Greatest Workplaces
• Newsweek America's Greatest Workplaces for Parents and Families
• Newsweek America's Most Responsible Companies
• Handshake Early Talent Awards
• Match 2023 Campus Forward Awards
• HBCU Top Supporter

2023 CORPORATE	AROUND	3
RESPONSIBILITY REPORT	THE GLOBE

Textron-

Around

the World

What began as a small New England business in 1923 has grown into

a $13..7 billion company with a worldwide presence supported by 35,000 people in more than 25 countries.. Throughout its history, Textron has been the source of ground-breaking technologies and numerous industry firsts..

$13.7 Billion

NORTH

AMERICA

130

LOCATIONS

EUROPE

27

LOCATIONS

ASIA

20

COMPANY

35,000

PEOPLE

SOUTH

AMERICA

3

LOCATIONS

AUSTRALIA

7

25+

LOCATIONS

LOCATIONS

COUNTRIES

2023 CORPORATE	OUR BUSINESS	4
RESPONSIBILITY REPORT	SEGMENTS

Our

Business

Segments

We are known around the world for our powerful brands of aircraft, defense and industrial products that provide customers with groundbreaking technologies, innovative solutions and first-class service..During 2023, we

conducted our businesses through six operating segments:

TEXTRON AVIATION		BELL		INDUSTRIAL
Textron Aviation is home to the	Bell is a leading supplier of helicopters,		Our Industrial segment designs and
Beechcraft and Cessna aircraft brands	tiltrotor aircraft and related spare parts		manufactures a variety of products within
and is a leader in general aviation through	and services.. Bell supplies military		the Kautex and Textron Specialized
two principal product lines: aircraft and	helicopters and tiltrotors to the U..S..		Vehicles product lines.. Kautex is a leader
aftermarket parts and services.. Aircraft	Government and non-U..S.. military		in designing and manufacturing plastic
includes sales of business jets, turboprop	customers and supplies commercially		fuel systems for automobiles and light
and military trainer and defense aircraft	certified helicopters to corporate,		trucks, along with other automotive
and piston engine aircraft.. Aftermarket	private, law enforcement, utility, public		systems and components.. Specialized
parts and services includes commercial	safety, emergency medical and other		Vehicles includes golf cars, recreational
parts sales and maintenance, inspection	helicopter operators.. Bell provides		and utility vehicles, aviation ground
and repair service..	support and service for an installed base		support equipment and professional
		of approximately 13,000 helicopters..		mowers, manufactured by Textron
				Specialized Vehicles businesses..

	TEXTRON eAVIATION		TEXTRON SYSTEMS		FINANCE
Textron eAviation includes Pipistrel,		Textron Systems' businesses develop,	Our Finance segment, operated by
a manufacturer of light aircraft, along		manufacture and integrate products and	Textron Financial Corporation (TFC),
with other research and development		services for U..S.. and non-U..S.. military,	is a commercial finance business
initiatives related to sustainable aviation		government and commercial customers	that provides financing solutions for
solutions.. Pipistrel offers a family of light		to support defense, homeland security,	purchasers of Textron products, primarily
aircraft and gliders with both electric		aerospace and other missions.. Product	Textron Aviation aircraft and Bell
and combustion engines.. Pipistrel's Velis		and service offerings include electronic	helicopters.. For more than six decades,
Electro is the world's first, and currently		systems and solutions, advanced marine	TFC has played a key role for Textron
only, electric aircraft to receive full type		craft, piston aircraft engines, live military	customers around the globe..
certification from the European Union		air-to-air and air-to-ship training, weapons
Aviation Safety Agency..		and related components, unmanned
			aircraft systems, and both manned and
			unmanned armored and specialty vehicles..

2023 CORPORATE		5
RESPONSIBILITY REPORT	OUR VALUES

Our

Values

At Textron we are guided in all of our business interactions by our four

values: Integrity, Respect, Trust, and Pursuit of Excellence.. These values are core to Textron's culture and define who we are as an organization.. They are intended to help us make the best possible decisions, manage change, and provide a foundation for Textron's future..

INTEGRITY		RESPECT
Integrity is the quality of being honest and		Respect is regard for others.. We show respect by
having strong moral principles.. We exhibit		demonstrating concern and support for individual
integrity by valuing honesty and openness, taking		differences and by listening when others express
responsibility for our actions, respecting others,		their views, even if we disagree..
and demonstrating trustworthiness..

TRUST		PURSUIT OF EXCELLENCE
Trust is a belief in the reliability, ability, strength,		The Pursuit of Excellence is the drive to do our
character, or truth of something or someone..		best.. We demonstrate this pursuit by setting
We demonstrate trust and show that we are		high standards, paying attention to the details,
trustworthy by being honest and reliable, honoring		measuring what we have accomplished, and
our commitments, admitting when we have made		striving for improvement..
mistakes, and communicating effectively so that
others don't misunderstand our intent..

2023 CORPORATE		6
RESPONSIBILITY REPORT	ENVIRONMENT

Building a Sustainable Future

At Textron, we are committed to doing our part to enable a sustainable future for the planet.. Our responsibility to the environment begins with our compliance with regulatory requirements and is supported by our Textron Global EHS Policies and Standards which we follow in all countries where we operate.. Beyond compliance, we are focused on reducing the greenhouse gas and natural resource intensity of both our operations and our products.. Within the communities in which we operate, we strive to be responsible stewards of local ecosystems..

TEXTRON'S 2023 SUSTAINABILITY HIGHLIGHTS

Reducing Our Environmental Footprint

29%

Reduced our greenhouse gas (GHG) emissions intensity by 29% compared to our Achieve 2025 baseline, exceeding our 20% reduction goal.

7%

Reduced our absolute water use by

7% on a year-over-yearbasis-bringingus three-quartersof the way towards reaching our 10% reduction goal.

43% of Textron's electricity use was from renewable sources.

As part of our efforts to reach our Achieve 2025 sustainability goals to reduce the energy and natural resources used by our operations, we completed more than 190 projects at our facilities worldwide. In addition to helping us progress toward our goals, collectively, these projects are projected to save more than $3.5 million on an annual basis.

2023 CORPORATE		7
RESPONSIBILITY REPORT	ENVIRONMENT

Achieve 2025 Sustainable

In 2020, as part of our Achieve 2025 set of sustainability goals to reduce the operations specific to the following areas emissions, energy use, water use and waste 2025, Textron will strive to achieve the the 2019 baseline year (the "Achieve

20%

Reduce greenhouse gas emission

10%

Reduce energy use intensity by 10%

10%

Reduce water use intensity by 10%

10%

Reduce waste generation intensity by 10%

These goals were developed with the intent for Textron to become more efficient in its use of natural resources to meet the expectations of our customers, shareholders, employees and other stakeholders and to better the communities in which our businesses operate.

2023 CORPORATE		8
RESPONSIBILITY REPORT	ENVIRONMENT

GREENHOUSE GAS (GHG) EMISSIONS

In 2023, Textron was successful in further reducing its GHG emissions on a year- over- year basis and has now reduced emissions by 29% on an intensity basis compared to our Achieve 2025 baseline, exceeding our 20% reduction goal.. This was achieved through a combination of energy efficiency and conservation projects, as well as renewable electricity purchases.. Forty-three percent of Textron's electricity use during 2023 was from renewable sources - this is largely a result of Textron Aviation's multi- year agreement with its utility to purchase renewable electricity from Soldier Creek Wind Energy Center, a local wind farm, for its Kansas facilities.. Textron also generates renewable electricity from onsite solar and

purchases Renewable Energy Certificates at select facilities.. Despite having met our 2025 year-end goal, we intend to continue to take actions to further reduce emissions over the duration of the measurement period..

Greenhouse gas (GHG) emissions are determined by following the Greenhouse Gas Protocols developed by the World Business Council for Sustainable Development and the World Resource Institute.. Consistent with these protocols, Textron accounts for Scope 1 and Scope 2 emissions in terms of CO2- equivalents.. Our greenhouse gas emissions and calculation methodology have been verified by an ANSI-accredited independent third party in accordance with ISO 14063-3..

Investing In On-Site Solar

The use of renewable electricity is a key component of Textron's carbon reduction program, which includes developing energy generation capabilities at our facilities. In 2023, Bell's facilities in both Singapore and Coffs Harbour, Australia began utilizing electricity from newly built rooftop solar systems. In 2023, over 50% of electricity use at both locations was generated by their onsite solar installations.

2023 Greenhouse Gas Emissions	5-Year Trend GHG Intensity
	(CO2-e/Revenue)*

5-Year Trend GHG Emissions

(MT CO2-e)

57%

43%

	0.043	0.043	365,790
Direct (Scope 1)
		304,293
241,593 MT
		231,287
Indirect (Scope 2)		0.038	171,065	180,808
180,808 MT
			0.034

422,401 metric tons				0.031	225,817				241,798	268,234	241,593
(MT CO2-e)
				197,989
2019	2020	2021	2022	2023	2019	2020	2021	2022	2023
	*Intensity metrics are normalized to revenue.							Scope 1		Scope 2