Better Health for All

TransDigm Group's operations have resulted in significant health-harming externalities, with 12 environmental violations since 2000, including air pollution and hazardous waste, incurring penalties totaling $343,433.

The most recent environmental violations occurred in 2020 and 2021. The company states it is dedicated to managing process safety and minimizing risks. , with operating units reporting Environmental Health and Safety matters monthly to the executive team. Regarding healthcare data, the company collects employee health data and maintains reasonable security procedures. , has a HIPAA Privacy Notice, and a Privacy Notice for California Personnel. The company's core products, aircraft components, have no significant direct positive or negative health impact on the public, and no revenue is derived from products with direct health impacts. KPIs such as safety record, vulnerable reach, and health equity programs are omitted due to a lack of specific quantitative data required by the rubric. Other health-related KPIs are not applicable to the company's public-facing business.

Fair Money & Economic Opportunity

Transdigm Group Incorporated is a global designer, producer, and supplier of highly engineered aircraft components, systems, and subsystems, primarily serving commercial aerospace, defense, and business jet markets.

The ethical value 'Fair Money & Economic Opportunity' assesses activities related to lending, insuring, moving, or storing money, and evaluates how financial institutions democratize access to fair financial services. As Transdigm is not a financial institution and does not offer financial services to consumers, the provided articles contain no specific, concrete data points relevant to any of the KPIs under this value. Therefore, all KPIs are omitted.

Fair Pay & Worker Respect

In fiscal year 2023, TransDigm's CEO-to-median-employee pay ratio was 411:1.

As of September 30, 2024, approximately 17% of the company's employees were represented by labor unions.

Fair Trade & Ethical Sourcing

TransDigm reported no incidents of forced or child labor for the period of January 1, 2023, to December 31, 2023, and explicitly stated no incidents were reported for fiscal year 2024 (October 1, 2023 – September 30, 2024).

The company's Code of Business Conduct and Ethics strictly prohibits child labor, forced labor, and human trafficking, and its Combatting Trafficking in Persons Policy applies to employees, consultants, and suppliers.

Honest & Fair Business

TransDigm Group Incorporated incurred a $20 million fine for an export control violation in 2023.

The company has a formal Whistleblower Policy, last updated July 24, 2024, which includes a 24-hour ethics hotline, online reporting options, confidentiality, anonymity, and a non-retaliation clause. Reports are reviewed by compliance and legal teams, with the Audit Committee informed of significant findings and receiving regular summaries of all reports. Anonymous reports concerning accounting or auditing can be made via a third-party service, Convercent. However, a former finance executive sued the company in 2023, alleging retaliatory termination after reporting fraudulent practices. In a 2026 filing, checkboxes for error corrections or restatements of previously issued financial statements were not marked. The company's board has 80% independent members, with 8 out of 10 meeting NYSE independence standards. TransDigm also maintains a Code of Business Conduct and Ethics that explicitly prohibits bribery, restricts political contributions, offers ethics training to intermediaries, and conducts regular anti-corruption and fraud audits, in compliance with the Foreign Corrupt Practices Act and the U.K. Bribery Act.

Kind to Animals

TransDigm Group Incorporated operates predominantly in the aerospace and defense sectors, focusing on technology and engineering.

The company has no direct involvement in animal testing, farming, or cruelty practices. Its business model does not involve animal-derived products, animal husbandry, or animal testing operations, leading to N/A scores for all animal welfare KPIs. The company maintains a neutral stance, avoiding harmful practices but also not actively supporting animal welfare initiatives.

No War, No Weapons

In fiscal year 2024, TransDigm's defense market sales accounted for approximately 40% of its net sales.

The company was awarded DoD contracts totaling $268.2 million. TransDigm has faced scrutiny for its pricing practices on defense contracts, with a 2019 Department of Defense audit revealing excessive profits on 46 of 47 spare parts, leading to a $16.1 million refund. A 2021 review found an additional $20.8 million in excess profits on 105 spare parts. The company was not required to provide cost information for over 95% of these deals due to the disclosure threshold.

Planet-Friendly Business

TransDigm Group Incorporated committed in March 2022 to reduce its absolute Scope 1 and Scope 2 greenhouse gas emissions by at least 50% by 2031, using fiscal year 2019 as the baseline

. These targets are not stated to be SBTi-validated. In 2023, the company reported total carbon emissions of approximately 107,662 metric tons of CO₂ equivalent (tCO₂e), comprising about 42,622 tCO₂e from Scope 1 and 65,040 tCO₂e from Scope 2 . The company noted a slight increase in emissions from previous years . TransDigm utilizes renewable energy sources such as solar, hydropower, and wind power, and has implemented energy efficiency measures including HVAC unit upgrades . Its corporate-wide environmental policy addresses energy consumption, GHG emissions management, water conservation, and waste management . The company proactively monitors and complies with environmental laws and regulations and conducts supply chain due diligence regarding conflict minerals .

Respect for Cultures & Communities

TransDigm Group Incorporated has a $2 million commitment to the Cleveland Clinic’s Vision First program

and partners with the Great Lakes Science Center to support STEM education for youth in Cleveland . The company also offers the Doug Peacock Scholarship Program for underprivileged students . These initiatives are part of a broader corporate social responsibility strategy and do not specifically address indigenous rights or cultural heritage preservation . The company's industry focus on Aerospace & Defense implies limited direct engagement with indigenous communities, leading to several cultural-specific KPIs being deemed not applicable to its business model .

Safe & Smart Tech

TransDigm acknowledges significant challenges in complying with data protection laws such as GDPR, CCPA, and PIPL

. The company admits there is no guarantee that its implemented controls can fully ensure compliance with all data protection regulations, posing a significant risk of penalties and reputational damage . These challenges are heightened by the increasing adoption of AI , despite the company stating it has internal controls and procedures to ensure compliance .

Zero Waste & Sustainable Products

The provided articles detail TransDigm's corporate-wide focus on reducing energy consumption and greenhouse gas emissions through initiatives like solar panel installations, LED lighting, HVAC replacements, and other energy upgrades. The company committed in March 2022 to reduce absolute Scope 1 and 2 greenhouse gas emissions by at least 50% by 2031

, aiming for emissions below the 2019 baseline by 2024 . However, no specific quantitative data or initiatives related to waste diversion rates, product recyclability, packaging sustainability, recycled content, single-use plastic reduction, take-back programs, circular design principles, hazardous waste management, product durability, repairability, waste audits, zero waste certifications, waste disposal violations, material efficiency, packaging-to-product ratio, supplier waste requirements, or customer waste education were found.