AAR CORP.

How this aviation services provider designed on a sustainability strategy fit for purpose.

AAR CORP. maintains and repairs aircraft components, from landing gears to on-flight coffee machines. It also provides related services worldwide. AAR’s site in The Netherlands signals a need for a sustainability strategy. Clients, especially European governments, ask for it. Also, the next generation of employees wants sustainability to be part of their job. What is AAR's sustainability strategy?

Our team helps AAR to formulate a sustainability strategy in two stages. First, we interview the local management team members. Next, we make an inventory of the sustainability areas impacted most by AAR. Compiling a list of 18 relevant items, called externalities. Think of waste, water use, energy use, employee engagement, health & safety.

In the first workshop, we report back our findings to the management team. To get a good understanding of what sustainability entails in AAR’s context. We also provide best practices for each of the 18 externalities. To inspire and discuss. The management team is surprised by the broad definition of sustainability. One that looks beyond CO2 and includes social aspects too. It turns out AAR performs well on the people-side. The company provides employees with a lot of freedom and autonomy, resulting in high employee satisfaction rates. Suppliers also stand out in the equation.

I'm much impressed by the knowledge of the consultants. They opened our eyes to the many aspects of sustainability.

In the second workshop we use the Business Model Canvas+. The Business Model Canvas+ is a tool for sustainable business models. Creating value for people, planet, not just profit. AAR's business model already is a circular one. As it prolongs the life cycle of aircraft and components and reduces the need for new assets. The Business Model Canvas+ helps to understand and explain this better to clients and other stakeholders. At the end of the day, the management team chooses four externalities to focus on. The team writes down what positive impact they want to make. All management team members signed this document. Showing their commitment.

The Dutch team has a strategy it can communicate to its internal and external stakeholders. Satisfying clients' sustainability demands and engaging its (next generation of) employees. From its focus on externalities, the team knows where to act upon.

Shortly after we leave, the team implements major improvements. Insulating the exterior of its buildings, which already saves 25% of gas use. Up next are installing new windows and solar panels. The company is also calculating and offsetting its emissions through a renowned partner, Climate Neutral Group. Progress indeed.

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