The MRO strategy towards net-zero

LRQA Aerospace & Defence Industry Team’s supply chain assurance director, Dan Carmel looks at sustainable MRO and how net-zero goals are affecting aviation MRO requirements.

With aviation accounting for about 2-3% of global greenhouse gas emissions per year, the international civil aviation organisation (ICAO) has set a net-zero goal for CO₂ emissions of 2050 for the industry, agreed by aviation representatives from 184 countries. The emissions reduction measures include short, medium and long-term activities. In the long-term, investment in innovative aircraft and propulsion technologies are planned and in the medium-term, increased production and use of sustainable aviation fuel (SAF) is being introduced.

We cannot yet say how the use of SAF will impact MRO operations and much work is being done to introduce SAF to propulsion systems with as minimal an impact as possible. But what can be done to affect MRO today and in the near-term? According to IATA and representatives at the MRO Europe 2022 conference in London, near-term improvements in infrastructure and operational efficiencies, which include MRO, are beginning to steer the industry towards its net-zero goals. So, although small, MRO infrastructure and operational efficiencies can and must be the first steps on this journey.

Initiatives start at the top

Leading MRO service providers have established corporate governance teams to oversee sustainable development of MRO services, including those for airframe, line, component and engines as well as inventory and fleet technical management, cabin solutions, freighter conversions, parts manufacturing and technical training. These sustainable development teams are responsible for setting and driving sustainability initiatives across MRO operations and for reporting on sustainability risks and performance.

In the near-term, key focus areas are: Infrastructure improvements: decarbonising operations and raw materials and enabling scope 1, 2 and 3 emissions reductions, internally, upstream (suppliers) and downstream (at customers); Circular value streams: Embedding circular practices in operations while enabling recyclability along the value chain; Deploying environmentally-friendly products; Workforce and people improvements; Environmental improvements.

These focus areas must be supported by end-to-end transparency, reliable data and consistent measurement.

Some Tier 2 and Tier 3 suppliers to the MRO supply chain have embraced net-zero goals themselves and taken steps to accelerate energy efficiency and cut emissions at their respective sites. Activities such as installing solar panels and thermal energy systems to generate their own, renewable power while also purchasing green energy from local suppliers has made them attractive partners with whom OEMs can work to meet their own upstream (suppliers) and downstream (customers) carbon footprint goals.

Some suppliers to MRO operations are adopting circular approaches for managing water and waste at key sites by creating closed-loop systems and increasing recycling at their sites as well as saving and reusing water through process optimisation and on-site wastewater treatment. When conducting sustainability assessments and emissions data verification, businesses utilising such suppliers will notice that they score more highly in terms of running a sustainable operation and a positive impact on their customers’ sustainable operations.

Circular value streams

Some adhesives and sealants suppliers to the MRO supply chain are working to transform their portfolio of key products into one that is based entirely on renewable, carbon-based materials. They have defined a comprehensive strategy for cutting Scope 3 emissions, which are those that are not produced by the supplier itself and not the result of activities from assets owned or controlled by the supplier, but by those that it's indirectly responsible for, upstream and downstream of the value chain, in line with their own goals and pathways to net-zero.

They assess the carbon footprint of every raw material being used in order to identify ways of cutting the related emissions. Chemical engineers are then replacing fossil-based, raw materials with ingredients from renewable carbon sources like bio-mass, recycled materials and atmospheric CO₂ wherever possible. Examples in the MRO supply chain include a 98% bio-based material used in packaging and a 60% bio-based ‘Loctite’ adhesive used for electronics assembly and a re-heatable, hotmelt adhesive which allows for removing components without damaging housings.

More OEMs and their major Tier 2 companies are taking a proactive, circularity-themed role in sustainable MRO initiatives, connecting key players from every step in their value chain, with dedicated projects and partnerships focusing on reuse, repair and recycling.

Workforce and people

A happy and safe workforce will lead to a committed workforce. If people in the organisation are also empowered to succeed, the business will succeed. These two vital ingredients of commitment and empowerment are a direct result of an engaged and trusted leadership. Once you have these two ingredients, a workforce will be inclined to take accountability and ownership of their roles and that is where a true, quality mindset can flourish within a workforce.

Whether in OEM or independent repair stations, the safety and wellbeing of a workforce must be paramount to that organisation. By keeping staff safe and enhancing their physical and mental wellbeing, that organisation can enhance their quality of life and increase their productivity. High staff turnover is an increasing problem in the aviation MRO industry, so by fostering a work environment where employees feel safe is crucial for retaining talent, increasing productivity, and building a strong company culture and brand. By focusing on this, one leading MRO provider reduced their ‘lost-days due to accidents’ rate by 45% between 2019 and 2023, with a target of 90% in place for 2030.

MRO operations will need to change in-line with changes driven by wider aviation industry net-zero goals. In the longer term, MRO operations will need to evolve to meet new propulsion technologies, such as hydrogen fuel cells or electric batteries and these sorts of evolutions will entail significant investments in infrastructure if and when the commercial need ultimately arises. Some OEMs are committed to accelerating new propulsion and airframe technologies, and by 2030 we’re sure to see new innovations from Pratt & Whitney, Rolls-Royce and CFM in the sphere of Hydrogen, SAF, thermal and propulsive efficiency. Digital twin engineering at Airbus as well as GE’s jet engine services centres (STAC) sharing data globally via the cloud, both represent a move to more efficient and less energy-intensive MRO operations.

MRO operations are the point-man leading the aviation industry’s march to realising its net-zero goals. Driven by committed OEMs, airlines and logistics and freight operators, net-zero goals will flow down onto MRO facilities and their suppliers who are crucial to the global delivery of MRO services. It is these business who will therefore benefit from the recognition of implementing verifiable carbon footprint upgrades in infrastructure, together with energy-efficient improvements in operations, all while focusing on the safety and wellbeing of their most important assets - people.

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