The global aerospace and defense (A&D) industry has long played a vital role in safeguarding sovereign nations against persistent threats. But in recent years, public attitudes about the industry, and its contributions to society, have been shifting for the worse.
Amid the growing scrutiny of A&D companies, Airbus and BCG have developed and conducted a total societal impact (TSI) assessment to provide a fact-based evaluation of the industry’s economic, societal, and environmental impacts—both positive and negative.
While sectors like health care and consumer goods have successfully adopted the TSI process, Airbus and BCG were the first to apply it within the A&D industry. The TSI assessment is particularly timely and valuable for A&D companies because it illuminates the pivotal yet often overlooked contributions of the industry—including research and innovation, job generation, wealth creation, and much more.
The industry delivers humanitarian aid during crises and monitors the environment to detect deforestation and methane leaks, to give just two examples. Given the growing demands from customers and governments alike, it's crucial for A&D companies to demonstrate these and other positive impacts on both the planet and the sovereign nations they serve.
From Assessment to Action
The TSI evaluation provides a blueprint for companies to assess their societal impact— both the positive (their "handprint") and the negative ("footprint"). TSI integrates hundreds of parameters and thousands of input factors, blending external data (from institutions like the United Nations or the Organisation for Economic Co-operation and Development) with internal metrics, sensitivity analyses, and expert insights. TSI offers a comprehensive lens to analyze all contributions at a product and company level, based on fact and actual product use.
TSI is more than just an effective reporting tool and framework; it can transform companies that use it to manage key internal processes. TSI can help companies enhance customer engagement, evaluate what their future portfolio should look like, and rethink how their product applications should evolve. By acting on TSI assessments, companies can attract talent, manage their investment decisions and product portfolio strategies, and strengthen their relationships with external stakeholders—including customers, investors, regulators, and the public at large.
For instance, by adopting the proverbial “80–20” approach to product selection, companies can focus on the 20% of products that generate 80% of their revenue. TSI also helps companies recruit the right talent to maximize revenues and gain greater buy-in from managers, employees, and external stakeholders. Additionally, TSI can help finance teams engage meaningfully with investors and regulators, driving deeper alignment and strategic impact across the organization.
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A Tool for Building Trust
To be sure, the A&D industry is not without its challenges, including the potential misuse of products and technologies, the greenhouse gases and hazardous waste produced by its products, and the potential for collateral damage from human rights abuses. The industry is seeking to overcome these challenges through solutions such as sustainable aviation fuels, robust compliance frameworks, and circular production systems.
For the A&D industry, substantiating its contributions is an ongoing journey. Airbus and BCG are committed to refining the methodology and expanding its use to promote positive change throughout the A&D industry. We invite industry members to consider using TSI as a toolkit to authenticate and communicate their societal impact—and with it, gain greater stakeholder trust.
