Our approach to ESG Our ESG focus areas ESG focus areas Our ESG focus areas are long-standing AAR priorities that align with Environment Although this 2021 ESG report is our first time publicly sharing our our business and our values and are also areas where we believe that Protecting the planet environmental, social and governance (ESG) practices in a consolidated we have the greatest opportunity to make a meaningful impact. ® report, we have focused on Doing It Right to connect and make a Waste prevention and reduction positive impact on the world every day. With long-standing values that In our product and service offerings, as well as in our facilities, prioritize quality and safety, inclusion, creative thinking and integrity, we diligently seek ways to become more efficient, including by our commitment to ESG principles is embedded in our culture. preventing waste and limiting our use of natural capital, benefiting not just our bottom line but our planet. We also strive to positively ESG oversight and governance impact the economic and social well-being of our employees and Our focus on ESG matters is embedded in our strategy, which to make valuable contributions to the communities where we live is overseen by our Board of Directors. The Board’s standing and work. Supporting all of our ESG initiatives is a sound corporate committees oversee our ESG focus areas based on the delegated governance framework and our company-wide commitment to Social subject matter: the Aviation Safety and Training Committee (ASTC) operating with integrity and honesty. Empowering people oversees all aspects of aviation safety, including our culture of As we continue to evaluate our ESG impacts and develop our ESG safety compliance; the Nominating and Governance Committee strategies, we consider the perspectives of our many stakeholders. Diversity and inclusion (NGC) oversees our governance policies and practices and the Through ongoing engagement, we expect to increasingly discuss Audit Committee receives reports related to our ethics hotline and ESG priorities and seek feedback on our focus areas. For more Military and veteran programs oversees AAR’s cybersecurity planning and protections efforts. Our information, see Stakeholder engagement on page 35. ESG report is reviewed by the NGC on behalf of the Board. STEM and aviation-focused AAR’s membership in industry and other associations provides education At the management level, we have assembled a multidisciplinary team additional channels for communication, collaboration and advocacy. of senior leaders representing legal, communications, human resources, See Appendix for a list of AAR’s membership of associations. and environmental, health and safety. This group, with input and guidance from senior business leaders, assess risks and opportunities related to our ESG focus areas, monitor and implement our ESG strategies, track our progress and guide our reporting to stakeholders. Governance Governing with Integrity Our manufacturing activities Ethics and compliance We are generally engaged in only limited manufacturing activities – primarily restricted to our Mobility Systems business, comprising approximately Safety 5% of our sales. Accordingly, at this time, our ESG focus areas may not include impacts typically reported by manufacturing companies. 11