MASHINIi

CAE Inc..

CAE.US | Other education n.e.c.

CAE Inc. is a global leader in training for the civil aviation, defence and security, and healthcare markets. The company designs and integrates advanced simulation technologies, training solutions, and critical support services. CAE provides comprehensive training solutions for pilots, aircrew, mai...Show More

Ethical Profile

Mixed.

CAE Inc. is currently under investigation for potential federal securities law violations, stemming from a May 2024 announcement that included a $568.0 million non-cash impairment and $90.3 million in defense contract adjustments, which led to a 13% stock price drop. Critics point to the company's significant $1,847.0 million FY2024 revenue from its Defense & Security segment, providing military training, as conflicting with "No War, No Weapons" values. Conversely, CAE Healthcare offers simulation training that improves patient outcomes, including free coronavirus training during the pandemic. The company supports Indigenous communities with partnerships and donations, such as $160,000 to the First Nations Technical Institute, and is committed to the Progressive Aboriginal Relations program. CAE was also recognized in Forbes’ Canada’s Best Employers 2025 List and achieved carbon neutrality in 2020 with SBTi-validated targets.

Value Scores

Better Health for All30
-100100
Fair Money & Economic Opportunity0
-100100
Fair Pay & Worker Respect10
-100100
Fair Trade & Ethical Sourcing10
-100100
Honest & Fair Business-10
-100100
Kind to Animals0
-100100
No War, No Weapons-40
-100100
Planet-Friendly Business-40
-100100
Respect for Cultures & Communities0
-100100
Safe & Smart Tech0
-100100
Zero Waste & Sustainable Products-30
-100100

Better Health for All

30

The company's simulation training eliminates risk to patients.

1
CAE has no products with significant negative health impacts. CAE Healthcare provides comprehensive healthcare workforce development through tailored training solutions and Centers of Excellence, including the first in Europe
2
and one at Rush University Medical Center.
3
During the COVID-19 pandemic, CAE Healthcare provided free coronavirus simulation training and webinars, including a four-scenario course, to healthcare providers.
4
The company engages in comprehensive health education through partnerships with institutions like RCSI
5
and Rush, establishing Centers of Excellence to advance simulation-based education.
6

Fair Money & Economic Opportunity

0

CAE Inc. is a global leader in training and simulation for civil aviation, defence, security, and healthcare markets

1
. The company's core business does not involve lending, insuring, moving, or storing money for consumers. While CAE facilitates access to third-party financing for pilot training
2
and engages in various diversity, equity, and inclusion initiatives
3
, it does not directly offer financial products or services. Therefore, all KPIs under the 'Fair Money & Economic Opportunity' value are scored as 0, indicating they are not applicable to the company's business model as defined by the rubric.

Fair Pay & Worker Respect

10

CAE's Injury Frequency Rate (IFR) was 0.34 in fiscal year 2024

1
, with no work-related fatalities reported in fiscal years 2022 and 2020.
2
The CEO to median employee pay ratio was 51.24 in fiscal year 2024.
3
The voluntary employee turnover rate was 8.5% in fiscal year 2024.
4
The employee engagement score was 77% in fiscal year 2024.
5
Approximately 17.7% of employees were covered by collective bargaining agreements in fiscal year 2024.
6
The overall ratio of basic salary and remuneration of women to men was 0.90 in fiscal year 2025.
7
CAE USA Inc. received one fine of $15,625 for Occupational Safety and Health Act violations in fiscal year 2024.
8

Fair Trade & Ethical Sourcing

10

CAE reported zero incidents of forced labour or child labour in its operations or supply chain for fiscal years 2024 and 2025.

1
The company employs strong supplier-monitoring systems, including screening 90% of strategic suppliers (representing 98% of direct spend) through EcoVadis
2
and screening 50% of total spend through Dow Jones’ RiskCenter for human rights risks.
3
CAE embeds ethical standards and human rights commitments, such as prohibitions against child labour, modern slavery, and human trafficking, into its standard procurement contract terms and conditions and master agreement templates.
4
These contracts also grant CAE the right to audit supplier records.
5

Honest & Fair Business

-10

CAE Inc. is facing a securities fraud lawsuit and investigation alleging false and misleading statements about cost overruns in its Defense segment

1
, with multiple instances of significant impairments and adjustments announced between August 2022 and May 2024
2
. The company also restated comparative financial amounts for FY23 and FY24 due to the presentation of its Healthcare segment as discontinued operations
3
and for alignment with the Transparency International's Government Defence Anti-Corruption Index
4
. The FY25 report did not undergo any external assurance process
5
, and external limited assurance for Scope 1 and 2 emissions data is only planned for FY26
6
. On January 8, 2024, CAE USA Inc. received a $15,625 fine for violations of the Occupational Safety and Health Act of 1970
7
. The company's board comprises 92% independent directors
8
, with all Board Committee members also being independent
9
. CAE enforces a zero-tolerance anti-corruption policy, prohibiting bribes, kickbacks, and facilitation payments
10
, which applies to all controlled subsidiaries and joint ventures
11
. This policy includes annual general training for all employees and targeted training for high-risk roles
12
, with oversight by the Ethics and Compliance Office and reporting to the Governance Committee
13
. CAE has a comprehensive Internal Reporting/Whistleblowing Policy with a 24/7 independent ethics reporting line
14
, protecting good-faith reporters from retaliation
15
, and reported activities are assessed for investigation, with quarterly summaries provided to the Governance Committee
16
. CAE was included in the top 15% of its industry in the S&P 2024 Global Sustainability Index
17
.

Kind to Animals

0

CAE Inc. specializes in training and simulation solutions for civil aviation, defence and security, and healthcare markets, including patient, surgical, and imaging simulators

1
. The provided articles do not contain any evidence suggesting that CAE's business operations involve animal testing, animal-derived ingredients, animal agriculture, or activities that directly impact wildlife habitats. Therefore, all KPIs related to animal welfare are not applicable to the company's core business model as described and evidenced.

No War, No Weapons

-40

In fiscal year 2024, CAE's Defense & Security segment generated $1,847.0 million in revenue

1
, which constituted 43.12% of the company's total consolidated revenue of $4,282.8 million.
2
The company provides training programs to the US Air Force, Army, and Navy.
3
In September 2024, CAE was awarded a US$57 million contract by the United States Navy for the Republic of India Navy.
4
The Defense and Security segment's revenue increased by 29% in Q4 2025
5
, and its adjusted backlog nearly doubled to $11.3 billion.
6

Planet-Friendly Business

-40

CAE Inc. has had its near-term greenhouse gas emission reduction targets validated by the Science Based Targets initiative (SBTi).

1
The company's carbon emissions remained stable despite a 10% increase in business.
2
An Internal Carbon Price has been developed and will be progressively used in business planning and investments.
3
CAE was included on TIME's List of the World's Most Sustainable Companies 2025.
4
A new Supply Chain Management Program, "CAE Resilient Together," was launched to improve operational excellence and sustainability through collaboration.
5
The company is also engaging with Indigenous communities and investing in employee well-being and professional development.
6

Respect for Cultures & Communities

0

CAE has established four formal partnership agreements with Indigenous or local community groups, including Indspire, First Nations Technical Institute (FNTI), First Nations University of Canada, and FHQ Developments (through its SkyAlyne joint venture).

1
The company has no reported cultural appropriation incidents.
2
CAE's proportion of procurement spending directed to local suppliers in FY25 ranges from 45% in Canada to 91% in the U.S. and South America, with other regions like Europe at 56%, Asia at 66%, Australia at 88%, and the Middle East at 74%.
3

Safe & Smart Tech

0

CAE Inc. implements mandatory training for employees on security policies and procedures.

1
The company grants users rights to access, update, delete, and restrict the use of their data.
2
Furthermore, CAE Inc. adheres to a policy of retaining data only as necessary, ensuring it is deleted or anonymized when no longer required, and states its compliance with applicable privacy laws and regulations.
3

Zero Waste & Sustainable Products

-30

CAE is exploring circular economy practices and mentions eco-design as a factor.

1
It implements upcycling practices and refurbishment programs that extend the lifespan of customers' training devices, using parts from decommissioned simulators.
2
CAE encourages all sites to apply the 3Rs (reduce, reuse, recycle).
3
It advocates for the adoption of non-hazardous products, and uses compost and sorting stations at some sites.
4
The company also uses reusable metal racks instead of wooden crates and recycles wood residues.
5
Digitization of work instructions at its Montreal manufacturing site is estimated to save 360,000 letter-size sheets of paper annually.
6
Specific hazardous waste management measures have been implemented regarding paints and solvents.
7
This includes applying isocyanate-free paints to simulators and planning to transition to water-based paints to reduce hazardous waste.
8
CAE has a Supplier and Business Partner Code of Conduct outlining specific requirements.
9
It launched the CAE Resilient Together Supply Chain Management Program
10
and nominated 12 suppliers for the Aéro Montréal Eco-Responsibility initiative, with one successfully completing the program and others in various stages of adoption.
11

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AI-generated analysis based on publicly available data. Not financial advice. Ratings are expressions of opinion derived from automated models and may contain inaccuracies. See our Risk Disclosure for full details.