CAE Inc. (CAE): Análisis PESTLE [Actualizado en Ene-2025]

En el mundo dinámico del entrenamiento aeroespacial y de defensa, CAE Inc. está a la vanguardia de la innovación tecnológica, navegando por un complejo panorama de desafíos y oportunidades globales. Desde tecnologías de simulación de vanguardia hasta consideraciones geopolíticas intrincadas, este análisis de mortero presenta el ecosistema multifacético que da forma a la trayectoria estratégica de CAE, ofreciendo una visión integral de los intrincados factores que impulsan una de las compañías de capacitación y simulación más sofisticadas en el mercado global.

CAE Inc. (CAE) - Análisis de mortero: factores políticos

Apoyo del gobierno canadiense para industrias aeroespaciales y de formación de defensa

El gobierno canadiense asignó $ 1.5 mil millones en el apoyo de la industria aeroespacial y de defensa para el año fiscal 2023-2024. CAE se ha beneficiado directamente de los programas de financiación del gobierno.

Programa gubernamental	Monto de financiación	Año
Fondo de innovación estratégica	$ 75 millones	2023
Subvención de modernización de la industria de defensa	$ 45 millones	2023

Contratos de defensa internacionales y tensiones geopolíticas

Los contratos de defensa internacional de CAE a partir de 2024 incluyen:

• Contratos de capacitación de la OTAN valorados en $ 320 millones
• Valoro de los acuerdos de simulación del Departamento de Defensa de los Estados Unidos $ 250 millones
• Programas de capacitación de defensa europeas por un total $ 180 millones

Regulaciones gubernamentales que afectan las tecnologías de simulación de aviación

Los requisitos de cumplimiento regulatorio canadiense para las tecnologías de simulación de aviación incluyen:

• Estándares de certificación de transporte de Canadá
• Protocolos de seguridad de tecnología obligatoria
• Requisitos de infraestructura de ciberseguridad

Políticas de exportación canadienses que influyen en la expansión del mercado global

Mercado de exportación	Valor de exportación	Porcentaje de crecimiento
Estados Unidos	$ 425 millones	8.5%
unión Europea	$ 275 millones	6.2%
Región de Asia-Pacífico	$ 215 millones	7.9%

Las regulaciones de control de exportaciones administradas por Global Affairs Canada impactan directamente en las estrategias comerciales internacionales de CAE, con $ 915 millones En total ingresos globales de exportación para 2023.

CAE Inc. (CAE) - Análisis de mortero: factores económicos

Naturaleza cíclica de las inversiones en la industria aeroespacial y de defensa

CAE Inc. reportó ingresos totales de $ 4.33 mil millones para el año fiscal 2023, con el segmento de soluciones de capacitación de aviación civil que genera $ 1.92 mil millones y el segmento de defensa y seguridad que contribuye con $ 1.41 mil millones.

Segmento	Ingresos 2023 (mil millones de dólares)	Crecimiento año tras año
Capacitación de aviación civil	1.92	16.5%
Defensa y seguridad	1.41	12.3%

Recuperación económica global Demanda de impulso

La Asociación Internacional de Transporte Aéreo (IATA) proyectó la recuperación del tráfico de pasajeros globales a los niveles de 2019 para 2024, con un estimado de 4.0 mil millones de pasajeros esperados en 2024.

Segmento de mercado	Proyección de demanda de capacitación 2024	Estimación de la inversión
Entrenamiento de piloto comercial	27,300 nuevos pilotos necesarios anualmente	Valor de mercado de $ 1.2 mil millones
Entrenamiento de simulación militar	CAGR proyectado de 8.5%	Mercado global de $ 3.6 mil millones

Tipos de cambio fluctuantes

CAE Inc. informó que el impacto en las divisas de Efecto de traducción positiva de $ 42 millones En el año fiscal 2023 estados financieros.

Inversión de transformación digital

CAE Inc. asignado $ 185 millones en inversiones en I + D Para tecnologías de simulación y capacitación digital en 2023.

Área de inversión tecnológica	Monto de inversión 2023	ROI esperado
Tecnologías de simulación digital	$ 95 millones	14-16% de retorno proyectado
Soluciones de entrenamiento de IA	$ 45 millones	12-15% de retorno proyectado
Entrenamiento de realidad virtual	$ 45 millones	13-17% de retorno proyectado

CAE Inc. (CAE) - Análisis de mortero: factores sociales

Creciente demanda global de capacitación en piloto profesional

Según el piloto y técnico de Boeing Outlook 2022-2041, la industria de la aviación global requerirá 649,000 nuevos pilotos comerciales En los próximos 20 años. El desglose regional indica:

Región	Demanda de piloto	Porcentaje
Asia Pacífico	261,200	40.2%
América del norte	130,200	20.1%
Europa	119,000	18.3%
Oriente Medio	74,300	11.4%
América Latina	41,500	6.4%
África	22,800	3.5%

Aumento de énfasis en la seguridad y las metodologías avanzadas de capacitación

Los datos de seguridad de la Asociación Internacional de Transporte Aéreo (IATA) revelan que la tasa de accidentes de la aerolínea global en 2022 fue 1.47 accidentes por millón de vuelos. Las metodologías de capacitación avanzada contribuyen a esta mejora de la seguridad.

Brecha de habilidades de la fuerza laboral en los sectores de aviación y defensa

Una encuesta realizada por la Asociación de Industrias Aeroespaciales indica que 89% de las empresas aeroespaciales informan dificultades para reclutar fuerza laboral calificada. El desglose de la brecha de habilidades:

• Escasez de habilidades técnicas: 62%
• Competencias de tecnología digital: 47%
• Experiencia de simulación avanzada: 35%

Interés creciente en experiencias de aprendizaje basadas en simulación tecnológica

Se proyecta que el mercado global de capacitación de simulación llegue $ 14.7 mil millones para 2027, con una tasa de crecimiento anual compuesta del 13,7%. Los segmentos del mercado de simulación de aviación y defensa incluyen:

Tipo de simulación	Cuota de mercado	Índice de crecimiento
Simulación de vuelo	42%	14.2%
Simulación de entrenamiento militar	33%	12.9%
Simulación médica	15%	15.5%
Simulación de capacitación industrial	10%	11.6%

CAE Inc. (CAE) - Análisis de mortero: factores tecnológicos

Desarrollo de tecnología de simulación y capacitación avanzada

CAE Inc. invirtió $ 275.6 millones en investigación y desarrollo en el año fiscal 2023. La compañía opera 160 centros de capacitación a nivel mundial, con 67 dispositivos de entrenamiento de vuelo comerciales y militares.

Segmento tecnológico	Monto de inversión (USD)	Cuota de mercado
Tecnología de simulación civil	$ 142.3 millones	38.5%
Tecnología de simulación de defensa	$ 133.2 millones	36.7%
Simulación de atención médica	$ 25.1 millones	6.9%

Integración de inteligencia artificial en plataformas de capacitación

CAE tiene tecnologías de IA integradas en 47 plataformas de entrenamiento en sectores de aviación militar y civil. Las plataformas de simulación impulsadas por IA aumentaron la eficiencia de capacitación en un 22,6% en 2023.

Innovaciones de realidad virtual y aumentada en capacitación profesional

CAE desarrolló 23 nuevos módulos de entrenamiento de realidad virtual en 2023, cubriendo los sectores de aviación, defensa y atención médica. La inversión total de tecnología VR/AR alcanzó los $ 56.4 millones.

Dominio de entrenamiento VR/AR	Número de módulos	Horas de entrenamiento simuladas
Aviación comercial	12	45,678 horas
Entrenamiento militar	7	32,456 horas
Simulación de atención médica	4	18,234 horas

Inversión continua en infraestructura de simulación digital

CAE asignó $ 189.7 millones para la expansión de la infraestructura digital en 2023. La compañía actualizó 92 centros de capacitación existentes con tecnologías avanzadas de simulación digital.

Categoría de inversión de infraestructura	Monto de inversión (USD)	Porcentaje de actualización de tecnología
Infraestructura de hardware	$ 87.3 millones	46.1%
Desarrollo de software	$ 62.4 millones	32.9%
Infraestructura en la red y la nube	$ 40 millones	21%

CAE Inc. (CAE) - Análisis de mortero: factores legales

Cumplimiento de las regulaciones internacionales de capacitación en aviación

CAE Inc. mantiene el cumplimiento de múltiples organismos reguladores de aviación internacional, que incluyen:

Cuerpo regulador	Nivel de certificación	Estado de cumplimiento
Administración Federal de Aviación (FAA)	Parte 142 Centro de entrenamiento	Cumplimiento total
Agencia de Seguridad Aviación de la Unión Europea (EASA)	Organización de capacitación aprobada por parte de la parte 147	Cumplimiento total
Transport Canada	Centro de capacitación de aviación civil	Cumplimiento total

Protección de propiedad intelectual para tecnologías de simulación

CAE Inc. sostiene 87 patentes activas Relacionado con las tecnologías de simulación a partir de 2024, con una cartera de patentes valorada en aproximadamente $ 425 millones.

Categoría de patente	Número de patentes	Inversión anual de I + D
Tecnología de simulación de vuelo	42	$ 78.5 millones
Simulación de entrenamiento militar	35	$ 62.3 millones
Simulación de atención médica	10	$ 22.1 millones

Pautas de adquisición de contratos de adherencia a la defensa

CAE Inc. cumple con Regulaciones de adquisiciones del Departamento de Defensa (DOD), Mantenimiento 11 Contratos de defensa activos con un valor de contrato total de $ 1.2 mil millones.

Tipo de contrato	Valor de contrato	Estado de cumplimiento
Entrenamiento de vuelo militar	$ 475 millones	Cumplimiento total
Sistemas de simulación de defensa	$ 350 millones	Cumplimiento total
Soluciones de entrenamiento táctico	$ 375 millones	Cumplimiento total

Requisitos reglamentarios para estándares de entrenamiento militar y de aviación

CAE Inc. se encuentra 17 Normas de capacitación internacional a través de la aviación y los sectores militares.

Estándar de entrenamiento	Cuerpo regulador	Verificación de cumplimiento
Entrenamiento piloto avanzado	Icao	Anualmente verificado
Normas de simulación militar	OTAN	Anualmente verificado
Capacitación de aviación civil	EASA	Anualmente verificado

CAE Inc. (CAE) - Análisis de mortero: factores ambientales

Compromiso con el desarrollo de tecnología sostenible

CAE Inc. informó una reducción del 22% en las emisiones de gases de efecto invernadero en su informe de sostenibilidad 2022. La compañía invirtió $ 47.3 millones en investigación y desarrollo de tecnología sostenible en el año fiscal 2023.

Métrica de sostenibilidad	Valor 2022	2023 objetivo
Inversión en I + D en tecnologías verdes	$ 47.3 millones	$ 52.6 millones
Reducción de emisiones de gases de efecto invernadero	22%	30%
Uso de energía renovable	18%	25%

Reducción de la huella de carbono a través de soluciones de capacitación digital

Las soluciones de capacitación digital implementadas por CAE redujeron las emisiones de carbono en aproximadamente 3.750 toneladas métricas en 2022. Las plataformas de simulación virtual de la compañía eliminaron un estimado de 125,000 horas de entrenamiento físico.

Métrica de reducción de carbono	Rendimiento 2022
Las emisiones de carbono evitadas	3.750 toneladas métricas
Horas de entrenamiento físico eliminado	125,000 horas

Diseño de tecnología de simulación de eficiencia energética

Las tecnologías de simulación de CAE lograron una mejora del 17% en la eficiencia energética en 2023. Los centros de datos de la compañía redujeron el consumo de energía en un 22% a través de tecnologías de enfriamiento avanzadas.

Métrica de eficiencia energética	2023 rendimiento
Tecnología de simulación Eficiencia energética	17% de mejora
Reducción del consumo de energía del centro de datos	22%

Apoyo a las iniciativas verdes en sectores de entrenamiento aeroespacial y de defensa

CAE colaboró ​​con 12 organizaciones aeroespaciales para desarrollar programas de capacitación sostenible. La compañía asignó $ 18.6 millones para las asociaciones de Iniciativa Green en 2023.

Métrica de la Iniciativa Verde	Valor 2023
Colaboraciones de asociación aeroespacial	12 organizaciones
Inversión en iniciativas verdes	$ 18.6 millones

CAE Inc. (CAE) - PESTLE Analysis: Social factors

The social factors influencing CAE Inc. are overwhelmingly positive, driven by a deep, structural talent shortage across the global aviation and defense sectors. This isn't a cyclical blip; it's a long-term demographic and growth trend that makes training a non-negotiable priority for all major customers. The industry needs a massive, sustained influx of new professionals, and that puts CAE's core business in a powerful position for the next decade.

Global pilot shortage requires training over 280,000 new pilots this decade

You need to look past the occasional airline hiring slowdown to see the big picture: the global commercial and business aviation sectors require 300,000 new pilots by 2034. This demand is split between two main drivers: replacing pilots who are retiring and training new ones to support fleet expansion. For example, in North America and Europe, a large portion of the hiring wave is fueled by retirements, while the Asia-Pacific region, led by China and India, is the epicenter for growth-driven demand. Honestly, the industry is struggling to keep up with this pace.

Here's the quick math on the commercial pilot demand alone, which totals 267,000 new pilots needed globally over the next ten years.

• Growth: 138,000 new pilots to support fleet expansion.
• Replacement: 129,000 new pilots to replace those leaving.

Military demand amplified by a global shortage of uniformed personnel

The civil aviation crunch is mirrored in the defense world. Geopolitical tensions are escalating, and NATO and allied nations are increasing their defense budgets to focus on modernization and readiness. But money can't fix a people problem overnight. A global shortage of uniformed personnel across air, land, and naval forces is a huge social constraint for governments. So, armed forces are increasingly partnering with companies like CAE to outsource and sustain operational readiness, which directly drives demand for high-fidelity training and simulation solutions. This is a defintely a secular tailwind for the Defense & Security segment.

Total demand for nearly 1.5 million aviation professionals by 2034

The pilot shortage is just one part of a larger talent gap. According to the CAE 2025 Aviation Talent Forecast, the total demand for civil aviation professionals-including pilots, maintenance technicians, cabin crew, and air traffic controllers-is estimated at 1.5 million worldwide by 2034. This staggering number highlights the systemic challenge facing the industry, which CAE is uniquely positioned to address through its comprehensive training services. The sheer volume of training required ensures a long-term, predictable revenue stream for the company's Civil Aviation segment.

The breakdown shows where the pressure points are, which helps us map CAE's investment priorities:

Professional Category	Total Professionals Needed (2025-2034)	Key Driver
Commercial Pilots	267,000	Fleet Growth & Retirements
Business Aviation Pilots	33,000	Retirements & Sector Growth
Aircraft Maintenance Technicians	347,000	Complex Fleet & Retirement Wave
Cabin Crew	678,000	Passenger Traffic Growth
Air Traffic Controllers	71,000	System Modernization & Retirement
Total Civil Aviation Professionals	~1.5 million	Record Air Travel Demand

Training center utilization at 74% for the full fiscal year 2025

The high demand translates directly into operational performance. For the full fiscal year 2025, CAE's Civil training center utilization rate was 74%. This is a key metric showing how efficiently the company is using its global network of full-flight simulators (FFSs) and training centers. A high utilization rate, which even hit 75% in the fourth quarter of fiscal 2025, reflects the constant, non-discretionary need for recurrent training and type-rating courses, even when near-term pilot hiring slows down due to aircraft delivery delays. It's a sign of the business model's resilience.

CAE Inc. (CAE) - PESTLE Analysis: Technological factors

You know that in our business, technology isn't just a cost center; it's the core product and the engine for growth. For CAE Inc., the technological landscape in 2025 is defined by a rapid shift from traditional full-flight simulators (FFS) to a digitally immersive ecosystem. This pivot is driven by the need to train a massive influx of new pilots faster and more efficiently, plus the growing demand for complex, networked military and healthcare simulation.

The company is backing this up with serious capital. CAE is currently executing a five-year, C$1 billion R&D investment program, dubbed Project Resilience, which focuses heavily on digitally immersive solutions, data ecosystems, and Artificial Intelligence (AI). Honestly, that kind of commitment-with fiscal year 2025 CAPEX totaling $356.2 million-shows they're not just talking about innovation; they're buying it.

Rapid adoption of Virtual Reality (VR) and Augmented Reality (AR) in pilot training.

The days of pilots only training in multi-million dollar full-flight simulators are ending. The industry is seeing a rapid expansion of Virtual Reality (VR) and Augmented Reality (AR) tools, and CAE is right in the middle of it. VR-based training is a game-changer because it improves skill retention rates by up to 30%, which is a huge efficiency gain for airlines facing pilot shortages.

CAE is using its CAE Sprint Virtual Reality Trainer and the CAE e-Series MR Visual System (MR stands for Mixed Reality) to deliver high-fidelity experiences at a fraction of the cost of an FFS. This is a smart move, because the entire global Aviation AR & VR Market is projected to reach $1.49 billion in 2025, and CAE's existing market leadership-holding roughly 23.5% of the civil aviation flight training market-positions it perfectly to capture that growth.

AI-enhanced training systems are being deployed for adaptive, data-driven learning.

The real power of all this new data is Artificial Intelligence (AI). CAE employs over 2,500 engineers and technical experts who are focused on leveraging AI and Machine Learning (ML) algorithms to make training adaptive and personalized. This means the simulation dynamically adjusts the training modules based on a trainee's real-time performance, ensuring they master complex maneuvers efficiently.

The company's core AI-enhanced products include:

• CAE Trax Academy: A data-driven platform that streamlines military pilot training.
• Adaptive Learning: Patented engine that improves training efficiencies.
• CAE 7000XR Series Simulators: New 2025 models feature integrated VR and AI to enhance realism and decision-making under stress.

AI is what translates raw simulation hours into measurable competency, which is defintely what regulators and airlines want to see.

Shift to cloud-based simulation platforms enables remote training and real-time data access.

The move to the cloud is a critical strategic opportunity. By shifting simulation platforms to the cloud, CAE can offer Software as a Service (SaaS) arrangements, giving customers the right to access a cloud-based environment that CAE manages. This eliminates the need for expensive on-premise hardware and provides on-demand compute power for complex simulations.

This trend is accelerating across the broader Computer-Aided Engineering (CAE) market, where cloud-based deployment is expected to account for a significant 24.7% market share in 2025. For CAE, this means greater accessibility for smaller institutions and the ability to offer remote training and real-time data access, which is essential for global operations and distributed military exercises.

Development of next-generation visual systems using engines like Unreal Engine.

Visual fidelity is no longer a proprietary black box. CAE made a strategic pivot to use the commercial off-the-shelf software platform, Unreal Engine, for its next generation of visual solutions. This decision allows them to tap into a massive ecosystem of content and development tools, drastically shortening the time it takes to develop new simulator visuals.

This pivot resulted in the creation of the Prodigy Image Generator (IG). Prodigy uses Unreal Engine to deliver extremely realistic virtual environments, supporting high-end features like compatibility with up to 8K projectors. This focus on leveraging commercial technology over proprietary development is a smart way to manage R&D costs while maintaining a leading edge in visual realism.

Technological Trend	CAE Inc. Product/Strategy	Fiscal Year 2025 Impact/Metric
Virtual/Augmented Reality (VR/AR)	CAE Sprint VR Trainer, CAE e-Series MR Visual System	VR training improves skill retention by up to 30%. Aviation AR/VR Market: $1.49 billion in 2025.
Artificial Intelligence (AI) & Machine Learning (ML)	CAE Trax Academy, Adaptive Learning Engine, AI-integrated 7000XR Simulators	Part of a 5-year, C$1 billion R&D investment. Enables personalized, data-driven training.
Cloud-Based Simulation Platforms	SaaS arrangements for cloud-based environments	Cloud deployment expected to hold 24.7% of the broader CAE market share in 2025. Supports remote access and real-time data.
Next-Generation Visual Systems	Prodigy Image Generator (IG) powered by Unreal Engine	Supports extremely realistic virtual environments and up to 8K projectors. Accelerates simulator development time.

Next step: Operations should confirm the integration timeline for the new AI-driven Adaptive Learning features into the Civil Aviation division's core curriculum by the end of Q3 2026.

CAE Inc. (CAE) - PESTLE Analysis: Legal factors

EASA's New Flight Simulation Training Device Capability Signature (FCS)

The biggest near-term regulatory shift for CAE Inc.'s Civil Aviation segment is the European Union Aviation Safety Agency's (EASA) move to a Flight Simulation Training Device Capability Signature (FCS). This new regulation, RMT.0196, is scheduled for a vote in February 2026, which means a two-year transition period will begin shortly after. This is not just a paperwork change; it's a fundamental shift from rigid device categories, like Level D simulators, to a 'task-to-tool' concept.

Instead of a one-size-fits-all approach, the FCS framework certifies a simulator based on its capabilities across approximately 14 distinct features. This is a clear opportunity for CAE Inc. because it favors manufacturers who can design and qualify a wider array of devices, including more cost-effective, high-fidelity trainers, and not just the most complex full-flight simulators (FFS). The shift promotes flexibility and technology neutrality, which is defintely a tailwind for innovation.

Regulatory Shift in Mandatory Simulator Training

While the outline mentioned a potential for new regulations to increase mandatory training hours, the actual trend, driven by EASA's FCS, is toward a more efficient and capability-based mandate. The focus is on ensuring the right training tool is used for the specific task, which can optimize the use of high-cost FFS time. This is a subtle but powerful legal change.

For CAE Inc., this regulatory evolution means the value proposition shifts from simply selling the highest-level simulator to providing an integrated ecosystem of training devices. This is a competitive advantage for a company with a broad portfolio. The table below outlines the core change in the regulatory philosophy:

Regulatory Philosophy	Old Model (Pre-FCS)	New Model (FCS/Task-to-Tool)
Certification Basis	Device Categories (e.g., Level D)	Device Capabilities (approx. 14 features)
Training Mandate Focus	Prioritizing Full-Flight Simulators (FFS)	Matching the training task to the most appropriate device
Impact on Innovation	Limited by rigid categories	Technology-neutral, fostering new devices like Virtual Reality

Managing U.S. FOCI Compliance Risk

The Defense & Security segment of CAE Inc. faces ongoing, heightened compliance risk related to U.S. Foreign Ownership, Control, or Influence (FOCI). As a Canadian-headquartered company with significant U.S. defense contracts, maintaining a Facility Security Clearance (FCL) is non-negotiable.

The U.S. Department of Defense (DoD) is increasing its scrutiny of foreign ties, and a FOCI review is now likely even for unclassified contracts exceeding $5 million. CAE Inc. must continuously invest in its enterprise risk management framework to mitigate this. The risk isn't just losing a contract; it's the potential for severe operational disruption and reputational damage if a FOCI violation is found. This is a cost of doing business in the defense sector, and it requires a dedicated, well-funded compliance team.

Projected Effective Income Tax Rate of 25% Creates a Tax Headwind

A clear financial headwind for fiscal year 2025 is the projected annual effective income tax rate. CAE Inc. expects this rate to be approximately 25%. This is a direct consequence of operating across numerous international jurisdictions and the implementation of global minimum tax policies, which are designed to ensure multinational corporations pay a minimum level of tax regardless of where they report profit.

This 25% rate, while an expectation, is a significant factor in financial planning. For context, the adjusted effective tax rate in the fourth quarter of the prior fiscal year was 47%, so the new 25% annual projection, while seemingly lower on an adjusted basis, represents the structural tax burden going forward, which is a headwind against maximizing net income.

• Focus: The 25% rate is driven by the complex mix of global jurisdictions.
• Action: Finance must model the impact of this rate on all forward-looking adjusted net income projections.
• Limit: This estimate hides the quarterly fluctuations; for example, the adjusted effective tax rate for Q4 FY2025 was also 25%.

CAE Inc. (CAE) - PESTLE Analysis: Environmental factors

You are operating in an industry where environmental scrutiny is intense, so a credible, science-backed decarbonization strategy is not just compliance-it's a competitive advantage. For CAE Inc., the environmental picture in Fiscal Year 2025 (FY2025) shows a clear shift from simply achieving carbon neutrality via offsets to embedding emissions reduction into core business decisions and product value.

The biggest opportunity for CAE is that its core product is a key enabler for customer decarbonization, which is a massive tailwind. The primary risk is the complexity of reducing the company's own value chain (Scope 3) emissions, which are the largest part of its footprint.

Science-based decarbonization strategy has near-term targets submitted to SBTi.

CAE has formalized its commitment to climate action, moving beyond its 2020 carbon neutrality status. The Science Based Targets initiative (SBTi) officially validated the company's near-term greenhouse gas (GHG) reduction targets in September 2024. This validation aligns CAE's strategy with the latest climate science, ensuring its reduction path contributes to limiting global warming to 1.5°C.

The targets are ambitious, focusing on significant cuts across both direct operations and the value chain by the end of FY2033:

• Reduce Scope 1 and 2 emissions by 85.7% (against a FY2019 baseline).
• Reduce Scope 3 emissions by 32.5% (against a FY2022 baseline).

Here's the quick math: achieving these targets requires a complete overhaul of energy consumption and supply chain engagement, especially since Scope 3 emissions are the most complex to control.

Carbon emissions remained stable in FY2025 despite a 10% business increase.

Despite a 10% increase in business activity across the company in FY2025, total carbon emissions remained stable, demonstrating the initial impact of targeted efficiency investments and strategic use of renewable energy. This decoupling of growth from emissions is a critical indicator of a successful, albeit early, decarbonization strategy. The stability is largely attributed to the continued use of Renewable Energy Certificates (RECs) and internal efficiency projects.

For context, the partial breakdown of CAE's GHG emissions for FY2025 is highly skewed toward its value chain activities:

GHG Scope	FY2025 Emissions (tonnes of CO2e)	Nature of Emissions
Scope 1	17,804	Direct emissions from owned or controlled sources (e.g., company cars, fuel for live training).
Scope 2	65,906	Indirect emissions from the generation of purchased electricity (location-based).
Scope 3 (Partial)	372,214	Value chain emissions, including purchased goods, capital goods, and use of sold products.

Scope 3 is the elephant in the room, representing the vast majority of the company's carbon footprint, so its reduction is defintely the long-term challenge.

Implementation of a shadow internal carbon price (ICP) for investment decisions.

To embed climate risk into financial planning, CAE developed a shadow Internal Carbon Price (ICP) process in FY2025. This shadow price is a hypothetical cost per tonne of carbon emissions that is not actually levied, but instead used as a financial modeling tool.

The key action here is that as of April 1, 2025, this shadow ICP process began to be integrated directly into the evaluation of capital investment decisions and Mergers & Acquisitions (M&A). This mechanism forces project proponents to quantify the future financial risk associated with carbon emissions, favoring low-carbon investments and increasing the company's resilience to potential future carbon taxes or regulations. It's a direct way to translate climate ambition into a budget line item.

Simulation solutions are a key enabler for customer decarbonization by reducing live flight hours.

The most significant environmental opportunity for CAE is the inherent sustainability of its core product. Simulation-based training and digital solutions are a crucial enabler for the aviation industry's own decarbonization efforts.

By using CAE full-flight simulators for pilot training, the Civil Aviation business unit helps customers avoid over five million tonnes of CO2e emissions per year compared to performing the same training using live aircraft. This massive avoidance number is a powerful competitive differentiator, positioning CAE as a partner in the global push for sustainable aviation. Plus, the company is actively incorporating eco-design features into its training operations to further reduce its own footprint.