Case Study | 21 July 2025
How a Europe-Based Aerospace Company Transformed ESG Risks into Sustainable Growth Opportunities?
Posted by : Sanya Mehra
In a period where environmental, social, and governance (ESG) compliance is compulsory for businesses, aerospace organizations are experiencing increased pressure to implement sustainability practices. This case study focuses on a foremost Europe-based aerospace manufacturer that primarily prioritized temporary profitability over ESG reforms, resulting in administrative consequences and recognition challenges. However, with the adoption of Research Nester’s strategic ESG solutions, the company effectively combated risks, readjusted its operations, and achieved long-lasting developmental opportunities. By 2037, the firm regained its position in the market and emerged as the sector leader in sustainability.
An overview:
- The aerospace firm was founded in 1972, and it grew to emerge as one of Europe’s topmost aerospace manufacturers, with specializations in aircraft production, design, and worldwide distribution. In the early 2000s, the company garnered a 28% market share in viable aviation.
- The company effectively distributed defense aerospace solutions, propulsion systems, and aircraft components, and catered to serving governments and major airlines globally.
- The company’s product portfolio comprised cutting-edge lightweight fuselage materials, avionics systems, and turbofan engines, thereby making it an essential player in both military and civilian aviation.
- The company, despite its market upliftment, lacked sustainability and readily ignored labor rights, waste management, and carbon emissions. In 2023, administrative audits demonstrated that the non-compliance with the EU Green Deal standards resulted in an increase in fines by €55 million.
- The firm’s ancient linear production model, which is dependent on non-recyclable and virgin aluminum composites, further hindered the environmental-based footprint, which eventually accelerated administrative backlash.
- Thorough inquiries displayed excessive carbon dioxide emissions, accounting for 2.8 million metric tons yearly, and poor working environments. Due to this, there has been a drop in the share price by 20%, and probable investors withdrew from investing.
- With an estimated €350 million in potential carbon taxes looming by the end of 2030, the company experienced an existential challenge since rival organizations such as Safran and Airbus readily capitalized on this limitation and lured away clients with sustainable alternative options.
- In 2025, the firm consulted Research Nester to implement ESG policies, intending to ensure net-zero emissions by 2037, while re-establishing shareholder trust.
- The diagnostic analysis revealed that almost 62% of emissions originated from inefficiencies in the supply chain, which has prompted a transition to renewable and locally powered production centers.
The Story
The aerospace industry is integrally resource-intensive, constituting 3% to 5% of international carbon dioxide emissions. Besides, the organization’s dependency on outdated manufacturing processes, inefficient supply chains, and fossil fuels worsened its environmental impact. In addition, the aspect of supply chain labor destruction, along with workplace discrimination, further smeared the overall image in the marketplace. Meanwhile, the EU Aviation Safety Agency (EASA) executed stringent ESG reforms and projected to mandate an estimated 58% reduction in aviation emissions by the end of 2035.
The company’s dependency on ancient manufacturing processes, including chemical-heavy surface treatments and high-energy-intensity machining, has worsened the overall environmental footprint. In this regard, an internal audit was conducted in 2024, which has revealed that almost 45% of its suppliers avoided OECD labor guidelines. Meanwhile, ESG reforms under the EU Aviation Safety Agency (EASA) have tightened for its Fit for 55 packages, thereby mandating a 60% reduction in aviation emissions by the end of 2035.
This, however, has triggered the company’s non-compliance aspect with a €77 million fine as of 2024, while 30% of orders converted to competitors such as Airbus, which already gained almost 50.5% of SAF integration. Besides, ESG-based funds, such as Nordea’s Climate and Environment Fund cited systemic ESG negligence and divested the overall fund provision, due to which the company experienced a 16% liquidity risk and stock plunge, thereby leveraging it to seek assistance and guidance to ensure future growth and upliftment and emerge as one of the leaders in the industry.
The organization’s failure to implement compliance resulted in increased penalties for violating the surrounding environment, a decline in almost 25% of orders, owing to the shift towards eco-conscious competitors, and investor removal, with ESG-based funds boycotting the company. The leadership, facing an existential circumstance, sought to Research Nester with the aim of overhauling the ESG initiative and providing compliance without the need to sacrifice profits.
ESG-focused funds, including Nordea’s Climate and Environment Fund, divested entirely, citing "systemic ESG negligence." Facing a 15% stock plunge and liquidity risks, leadership engaged Research Nester to engineer a turnaround—balancing emission cuts with profitability through circular manufacturing, SAF partnerships, and AI-driven ESG monitoring—to avoid being phased out of the €4.2 trillion green aviation market projected by 2037.
Our Solution:
Research Nester conducted more than a 5.5-month audit and recognized notable ESG barriers and accordingly proposed a five-pillar strategy for sustainable development. This includes the following-
- The shift to sustainable aviation fuel (SAF) by the end of 2030 will lead to almost 45% of flights utilizing company aircrafts, ultimately diminishing emissions by 40%.
- In terms of hybrid and electric aircraft growth, approximately €250 million research and development investment in electric-based propulsion systems is intended to achieve zero-emission and short-haul flights by 2035. Additionally, lightweight composite materials diminished aircraft weight by almost 16% and enhanced fuel efficiency.
- By 2032, an estimated 95% of aircraft components will be repurposed or recycled through the process of closed-loop manufacturing. Besides, 3D printing compacted material wastage by 35% and reduced production expenses.
- AI-powered compliance monitoring offered real-time tracking of supply labor practices and diversity programs will enhance female leadership to 40% by the end of 2030.
- Carbon and blockchain tracking ensured immutable emissions to the administrators, and yearly ESG audits uplifted compliance settings, along with investor confidence.
- The collaboration with Green energy organizations assisted in securing €550 million in sustainable funds and ensured consumer awareness through ESG campaigns.
Results
By executing Research Nester’s strategies, the organization successfully achieved extraordinary progress through financial growth and recovery. Revenue is projected to surge from €4.3 billion as of 2025 to €6.9 billion by 2030. In addition, stock prices are anticipated to recover by 50% after ESG reform certification. Then there will be a reduction in the environmental impact with focus on reducing carbon dioxide emissions by 52% by the end of 2035 by EU mandates alignment, along with complete renewable energy utilization in manufacturing facilities by 2032. Meanwhile, the firm is expected to be ranked #1 in the Dow Jones Sustainability Index by 2035 and win the EU Green Aviation Pioneer by 2036. Finally, the projected revenue for 2037 is €9.2 billion, denoting an 8.5% increase from 2025, and zero-emission aircraft is predicted to contribute 28.5% of the overall fleet.
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