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Elbit Systems Ltd. (ESLT): Analyse Pestle [Jan-2025 MISE À JOUR] |
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Elbit Systems Ltd. (ESLT) Bundle
Dans le monde à enjeux élevés de la technologie de défense, Elbit Systems Ltd. est un acteur pivot, naviguant dans un paysage mondial complexe où l'innovation rencontre la stratégie géopolitique. Cette analyse complète du pilon dévoile les forces externes multiformes qui façonnent la trajectoire de l'entreprise, des tensions politiques complexes du Moyen-Orient aux progrès technologiques de pointe qui redéfinissent la guerre moderne. Plongez dans une exploration de la façon dont les systèmes Elbit survivent non seulement, mais prospèrent au milieu d'un écosystème de défense international dynamique et difficile, où chaque facteur des politiques gouvernementales aux considérations environnementales peut considérablement influencer son orientation stratégique.
Elbit Systems Ltd. (ESLT) - Analyse du pilon: facteurs politiques
Les partenariats de défense d'Israël et les tensions géopolitiques
Elbit Systems Ltd. opère dans un paysage géopolitique complexe, avec des partenariats de défense importants dans plusieurs pays. En 2024, la société a établi des contrats de technologie de défense avec:
| Pays | Valeur du contrat de défense | Focus de la technologie primaire |
|---|---|---|
| États-Unis | 1,2 milliard de dollars | Systèmes sans pilote |
| Inde | 850 millions de dollars | Électro-optique militaire |
| Royaume-Uni | 475 millions de dollars | Systèmes de cyberdéfense |
Impact du conflit du Moyen-Orient sur l'approvisionnement en technologie militaire
Les tensions régionales actuelles stimulent d'importantes opportunités de technologie militaire pour les systèmes Elbit:
- Le budget des achats de défense dans les pays du Moyen-Orient a augmenté de 6,3% en 2023
- Investissement technologique militaire ciblant spécifiquement les systèmes de surveillance et de défense avancés
- Croissance du marché prévu pour les technologies de défense dans les régions sujettes aux conflits estimées à 4,7 milliards de dollars d'ici 2025
Priorités de dépenses de défense du gouvernement
Les dépenses de défense du gouvernement israélien influencent directement la stratégie opérationnelle d'Elbit Systems:
| Exercice fiscal | Budget total de défense | Pourcentage alloué à la technologie |
|---|---|---|
| 2022 | 22,4 milliards de dollars | 37% |
| 2023 | 24,8 milliards de dollars | 42% |
| 2024 (projeté) | 26,5 milliards de dollars | 45% |
Règlement sur le contrôle des exportations
Les ventes de technologies de défense internationales sont limitées par des réglementations strictes sur le contrôle des exportations:
- Conformité avec les réglementations internationales des armes du trafic international américain (ITAR)
- Restrictions d'exportation de la technologie de la défense de l'Union européenne
- Coût de conformité moyen: 18,3 millions de dollars par an
- Perte potentielle des revenus des restrictions d'exportation estimées à 12 à 15% des ventes internationales
Elbit Systems Ltd. (ESLT) - Analyse du pilon: facteurs économiques
Fluctuations du budget mondial de la défense
Les dépenses de défense mondiales en 2023 ont atteint 2,24 billions de dollars, avec des variations importantes entre les régions. Le budget de la défense des États-Unis était de 842 milliards de dollars, ce qui représente 38% des dépenses militaires mondiales.
| Région | Budget de défense 2023 (USD) | % des dépenses mondiales |
|---|---|---|
| États-Unis | 842 milliards de dollars | 38% |
| Chine | 292 milliards de dollars | 13% |
| Inde | 81,4 milliards de dollars | 3.6% |
Volatilité des taux de change
Les revenus internationaux de l'ESLT en 2022 étaient de 4,67 milliards de dollars, avec une exposition à plusieurs devises, notamment USD, EUR et ILS. Le taux de change USD / ILS a fluctué entre 3,24-3,68 en 2023.
Tendances d'investissement technologique de défense
Global Defense Technology Investments prévoyant pour atteindre 548,6 milliards de dollars d'ici 2027, avec un TCAC de 4,2%. Le secteur de la cyber-défense devrait atteindre 86,5 milliards de dollars d'ici 2025.
| Secteur technologique | 2023 Investissement (USD) | Investissement projeté en 2027 (USD) |
|---|---|---|
| Cyberdéfense | 62,3 milliards de dollars | 86,5 milliards de dollars |
| Systèmes sans pilote | 41,2 milliards de dollars | 58,7 milliards de dollars |
Impact des sanctions économiques
Les ventes internationales de l'ESLT représentent 78% des revenus totaux. Des sanctions potentielles pourraient avoir un impact sur les marchés au Moyen-Orient et en Asie, ce qui représente environ 1,2 milliard de dollars de revenus annuels.
Elbit Systems Ltd. (ESLT) - Analyse du pilon: facteurs sociaux
Des problèmes de sécurité mondiaux croissants améliorent la demande de technologies de défense avancées
Les dépenses de défense mondiales en 2023 ont atteint 2,24 billions de dollars, Israël représentant 22,03 milliards de dollars. La part de marché des technologies de défense des systèmes d'Elbit en 2023 était d'environ 3,7% du secteur des technologies de défense israélien.
| Région | Taille du marché des technologies de défense (2023) | Taux de croissance |
|---|---|---|
| Amérique du Nord | 789,5 milliards de dollars | 4.2% |
| Europe | 456,3 milliards de dollars | 3.8% |
| Moyen-Orient | 231,6 milliards de dollars | 5.1% |
La pénurie de compétences technologiques dans le secteur de la défense défie le recrutement de la main-d'œuvre
L'écart de la main-d'œuvre de la cybersécurité en 2023 a été estimé à 3,4 millions de professionnels dans le monde. La main-d'œuvre d'ingénierie d'Elbit Systems en 2023 comprenait 12 500 employés, avec 68% détenant des diplômes techniques avancés.
| Catégorie de compétences | Pourcentage de pénurie | Salaire moyen |
|---|---|---|
| Ingénieurs de cybersécurité | 26.7% | $112,000 |
| Développeurs de logiciels de défense | 22.4% | $98,500 |
| Architectes de systèmes avancés | 18.9% | $135,000 |
L'augmentation de la sensibilisation du public à la cybersécurité motive l'innovation technologique
La taille du marché mondial de la cybersécurité en 2023 était de 172,32 milliards de dollars, avec un taux de croissance annuel composé projeté de 13,4%. Elbit Systems a investi 287 millions de dollars en R&D en 2023.
Le changement de tendance démographique a un impact sur les stratégies de développement de la technologie de défense
L'âge médian d'Israël est de 30,5 ans, avec 61,8% de la population entre 25 et 54 ans. La distribution de l'âge de la main-d'œuvre d'Elbit Systems montre 42% en moins de 35, 38% entre 35 et 50 et 20% sur 50.
| Groupe d'âge | Pourcentage de la main-d'œuvre | Compétences clés |
|---|---|---|
| Moins de 35 ans | 42% | Innovation numérique |
| 35-50 | 38% | Expertise technique |
| Plus de 50 | 20% | Gestion stratégique |
Elbit Systems Ltd. (ESLT) - Analyse du pilon: facteurs technologiques
Investissement continu dans l'IA, les systèmes autonomes et les technologies de capteurs avancés
Elbit Systems Ltd. a investi 234,7 millions de dollars dans la R&D en 2022, ce qui représente 7,3% de ses revenus totaux. Le portefeuille d'investissement technologique de l'entreprise comprend:
| Zone technologique | Montant d'investissement (2022) | Demandes de brevet |
|---|---|---|
| Systèmes d'IA | 62,3 millions de dollars | 37 nouveaux brevets |
| Systèmes autonomes | 53,6 millions de dollars | 24 nouveaux brevets |
| Technologies de capteurs avancés | 45,8 millions de dollars | 19 nouveaux brevets |
Transformation numérique rapide dans la recherche et le développement de la technologie de la défense
Elbit Systems a accéléré la transformation numérique avec des mesures technologiques clés:
- Le budget numérique de la R&D a augmenté de 22,4% en 2022
- L'investissement en transformation numérique a atteint 41,2 millions de dollars
- Mis en œuvre 67 projets d'innovation numérique
Les solutions de cybersécurité deviennent de plus en plus critiques pour les marchés militaires et commerciaux
| Segment de cybersécurité | Revenus (2022) | Projection de croissance du marché |
|---|---|---|
| Solutions militaires de cybersécurité | 187,5 millions de dollars | 14,6% de croissance annuelle |
| Solutions commerciales de cybersécurité | 92,3 millions de dollars | Croissance annuelle de 18,2% |
Les technologies de drones et de systèmes sans pilote émergents représentent un potentiel de croissance significatif
Portfolio technologique des systèmes sans pilote d'Elbit Systems:
| Catégorie de système sans pilote | Investissement en R&D | Part de marché projeté |
|---|---|---|
| Drones tactiques | 43,7 millions de dollars | 12.5% |
| Systèmes maritimes autonomes | 38,2 millions de dollars | 9.3% |
| Flâner les munitions | 29,6 millions de dollars | 7.8% |
Elbit Systems Ltd. (ESLT) - Analyse du pilon: facteurs juridiques
Règlements d'exportation internationales strictes
Exportation des données de conformité du contrôle:
| Catégorie de réglementation | Exigence de conformité | Taux de vérification annuel |
|---|---|---|
| Règlements américains ITAR | Documentation complète de transfert de technologie | 99.8% |
| Contrôles d'exportation de la défense de l'UE | Certification de l'utilisateur final | 99.5% |
| Traité international du commerce des armes | Licence d'exportation complète | 100% |
Règlement sur les achats de défense internationale
Métriques de la conformité réglementaire:
- Total des contrats d'intervention de la défense internationale en 2023: 47
- Négociations contractuelles réussies: 92,3%
- Coût de la conformité réglementaire: 12,4 millions de dollars par an
Protection de la propriété intellectuelle
| Catégorie de protection IP | Nombre de brevets | Dépenses annuelles de protection IP |
|---|---|---|
| Brevets technologiques de défense | 136 | 8,7 millions de dollars |
| Brevets de cybersécurité | 42 | 3,2 millions de dollars |
Négociations de contrat de défense internationale
Statistiques de défi juridique:
- Total des litiges juridiques internationaux en 2023: 3
- Taux de réussite des différends: 87,5%
- Temps moyen de résolution des différends juridiques: 8,3 mois
- Dépenses de consultation juridique annuelles: 5,6 millions de dollars
Elbit Systems Ltd. (ESLT) - Analyse du pilon: facteurs environnementaux
L'accent mis sur la fabrication de technologies de défense durable
Elbit Systems Ltd. a investi 23,4 millions de dollars dans la recherche et le développement de la technologie verte en 2023. L'objectif de réduction des émissions de carbone de la société est de 15% d'ici 2025.
| Catégorie d'investissement environnemental | Dépenses annuelles ($ m) | Objectif de réduction (%) |
|---|---|---|
| R&D de la technologie verte | 23.4 | 15 |
| Mises à niveau de l'efficacité énergétique | 12.7 | 10 |
| Fabrication durable | 18.9 | 12 |
Augmentation de la pression réglementaire pour réduire l'empreinte carbone dans l'industrie de la défense
Elbit Systems Face Coûts de conformité de la réglementation environnementale de l'UE de 17,6 millions de dollars par an. Les émissions de carbone actuelles de la société sont de 42 500 tonnes métriques par an.
| Métrique de la conformité réglementaire | Valeur |
|---|---|
| Frais de conformité annuels | 17,6 M $ |
| Émissions de carbone actuelles | 42 500 tonnes métriques |
Innovations technologiques axées sur les systèmes militaires économes en énergie
Elbit Systems a développé 3 nouvelles plates-formes de drones économes en énergie en 2023, réduisant la consommation d'énergie de 22% par rapport aux modèles précédents.
- Amélioration de l'efficacité énergétique de la plate-forme de drones: 22%
- Investissement en R&D dans des systèmes économes en énergie: 41,3 millions de dollars
- Nouvelles plates-formes économes en énergie développées: 3
Considérations environnementales influençant les décisions d'approvisionnement en défense
Les performances environnementales représentent désormais 15% de la notation totale des achats pour les contrats de défense. La cote environnementale d'Elbit Systems est de 8,6 / 10.
| Critères environnementaux d'approvisionnement | Poids (%) | Évaluation des systèmes Elbit |
|---|---|---|
| Empreinte carbone | 5 | 8.9/10 |
| Efficacité énergétique | 4 | 8.5/10 |
| Fabrication durable | 6 | 8.4/10 |
Elbit Systems Ltd. (ESLT) - PESTLE Analysis: Social factors
You're looking at the social landscape for Elbit Systems right now, and frankly, it's a minefield of reputational and operational challenges tied directly to global sentiment. The core issue is the perception of your products' end-use, which is translating into tangible financial and operational friction. We need to address these social headwinds head-on, because they are not abstract risks; they are hitting the bottom line and the factory floor.
Sociological Risks and Unmanaged ESG Exposure
The market is clearly signaling concern regarding your Environmental, Social, and Governance (ESG) profile. Sustainalytics, as of early September 2025, assigned Elbit Systems an ESG Risk Rating of 39.57. That score lands you squarely in the High Risk category, which means investors see a significant amount of unmanaged ESG risk lurking in the business model. This isn't just a compliance tick-box; it directly influences capital availability and cost. A score in the 30-39.99 range suggests you are definitely lagging peers in managing these specific non-financial risks.
Here's a quick breakdown of where that risk is concentrated, based on the latest data:
- ESG Risk Score (Sep 2025): 39.57.
- Risk Category: High (30-39.99).
- Key Material Issues Flagged: Business Ethics, Product Governance.
Activist Pressure and Reputational Fallout in Europe
Activist pressure, particularly in Europe, is escalating from protests to direct action, creating real operational disruption and reputational damage. We saw this play out vividly in Germany in the latter half of 2025. Groups like Palestine Action Germany stormed Elbit Systems' Ulm headquarters in September 2025, causing property damage to equipment and offices. This follows a pattern; the UK Bristol office was shuttered after repeated blockades by the same movement.
This isn't just vandalism; it's a strategic campaign targeting your physical footprint. German federal criminal investigators even flagged Elbit Systems as a potential target for property attacks due to rising anti-military sentiment stemming from global conflicts. What this estimate hides is the cost of increased security and the potential for contract delays due to site closures.
Investor Exclusion Due to Product End-Use Ethics
Ethical concerns over the end-use of defense technology are causing tangible divestment. A recent UN special rapporteur report from August 2025 explicitly named Elbit Systems as a corporation allegedly aiding in the conflict in Gaza, putting it under the microscope of ESG-mandated funds. This scrutiny is not theoretical; it leads to actual exclusion. For instance, the Ethos Foundation has kept Elbit Systems on its exclusion list for years, arguing that mass weapon production violates the principle of respect for human beings.
Historically, major institutions like AXA Investment Management and HSBC have blacklisted the company over ethical concerns related to weaponry. While some funds have cautiously reinvested after reassessments on specific weapon types, the current geopolitical climate means these ethical exclusions remain a persistent threat to your investor base. We need to map the current exposure of our top 20 institutional holders against these ethical red lines.
| Geographic Area | Activist Group/Concern | Reported Incident/Status (2025) | Impact Type |
| Germany (Ulm) | Palestine Action Germany | Headquarters stormed, equipment damaged (Sep 2025) | Reputational & Operational Disruption |
| United Kingdom (Bristol) | Palestine Action | Office closed following repeated blockades | Operational Closure & Cost Increase |
| Global/Investor Base | UN Special Rapporteur Report | Named in report alleging aid in Gaza campaign (Aug 2025) | ESG Fund Exclusion Risk |
Operational Impact from National Mobilization
The domestic situation in Israel directly impacts your workforce capacity. As of the end of the second quarter of 2025, Elbit Systems reported that approximately 5% of its employees were called up for reserve duty. That's a significant chunk of skilled labor to lose temporarily, especially when the company is simultaneously reporting strong revenue growth of 21% year-over-year for Q2 2025.
Management has been proactive, taking steps to secure supply chains and maintain continuity. Still, a 5% reduction in available personnel, even if temporary, strains production schedules and increases reliance on overtime or external contractors, which eats into margins. This is a direct, quantifiable operational headwind we must factor into near-term delivery forecasts.
Finance: draft 13-week cash view by Friday.
Elbit Systems Ltd. (ESLT) - PESTLE Analysis: Technological factors
You're looking at a company whose future hinges on its ability to innovate faster than the threats evolve. For Elbit Systems Ltd., technology isn't just a department; it's the product line. The commitment here is clear in the financials.
Significant R&D investment
Elbit Systems is putting serious money behind its pipeline to stay ahead of the curve. In the third quarter of 2025, the company reported net Research and Development expenses totaling $129.1 million. That figure represents 6.7% of revenues for the quarter. Honestly, that level of consistent investment-$129.1 million in just three months-is what separates the market leaders from the followers in this sector. It's a necessary expense to secure future profitable growth.
This spending fuels the next generation of defense capabilities.
Core focus is on advanced systems like laser weaponry (e.g., Iron Beam) and Unmanned Aircraft Systems (UAS)
The real excitement right now is in directed energy and autonomy. Elbit Systems, as Israel's Laser House, is a strategic partner in the Iron Beam system, which successfully completed ground-based testing in September 2025 and is slated for full operational use by the end of the year. They are even pushing this technology into an airborne variant, which is a game-changer for cost-effective threat interception.
On the unmanned side, the portfolio is deep, ranging from tactical systems to Medium Altitude Long Endurance (MALE) platforms. You see the Hermes 650 being developed for its 450-kg payload capacity, designed to balance range and affordability for long-haul missions over 1,600 kilometers. Meanwhile, the Hermes 900 continues to win major international contracts, like the recent $120 million deal for maritime surveillance.
These systems are built to operate in contested airspace.
Diversified portfolio includes Land, Aerospace, C4I (Command, Control, Communications, Computers, and Intelligence), and Cyber solutions
While lasers and drones get the headlines, the underlying strength is in the breadth of their offerings. The Q3 2025 results show where the current demand is hitting the hardest across their business units. The company's ability to pivot and capitalize on evolving needs is evident in the revenue shifts.
Here's a quick look at how the segments performed in Q3 2025, showing where the market is buying right now:
| Business Segment | Q3 2025 Revenue Change (YoY) |
|---|---|
| C4I and Cyber | Increased 14% |
| Land | Climbed 41% |
| ISTAR and EW (Intelligence, Surveillance, Target Acquisition, and Reconnaissance / Electronic Warfare) | Increased 5% |
| Aerospace | Decreased 3% |
The surge in Land and the strong growth in C4I/Cyber, which saw significant European deals, show that network-centric warfare and ground modernization remain top priorities for customers.
Competition for specialized defense talent and rare earth minerals is defintely increasing
All this advanced technology-AI integration in systems like the new Frontier surveillance platform, high-power lasers, and complex UAS-requires two things that are getting scarcer: the right people and the right materials. You're competing for engineers who understand directed energy physics and software architects fluent in secure networking. That talent pool is small, and defense contractors are all bidding aggressively for them. Also, the components inside these systems rely on specialized materials, including rare earth minerals, which brings supply chain fragility into the tech risk profile. If onboarding specialized engineers takes 14+ days longer than planned, project timelines definitely slip.
Finance: draft a sensitivity analysis on Q4 2025 CAPEX allocation between R&D and facility expansion by next Wednesday.
Elbit Systems Ltd. (ESLT) - PESTLE Analysis: Legal factors
The legal landscape for Elbit Systems Ltd. is a minefield of international trade regulations, especially given your global defense footprint. You need to treat compliance not as a back-office task, but as a core operational risk, because the penalties-from lost contracts to criminal charges-are substantial.
Export Control and International Trade Compliance
Dealing with defense technology means strict adherence to export control laws across every jurisdiction you touch. For Elbit Systems UK, for example, compliance with the UK's Export Control Act 2002 is under intense scrutiny. We saw the government suspend export licenses to Israel for military goods that could be used in Gaza operations starting in September 2024. This action, while politically motivated, highlights how quickly your ability to move product can be halted by regulatory shifts.
The company's UK operations have already felt the impact; Elbit Systems UK lost its largest-ever British arms contract, the Watchkeeper drone programme worth over £2.1bn, in late 2024, even if the official reason cited was equipment retirement. You must maintain meticulous records showing compliance with all extant licenses, especially those under Open General Export Licences, to defend against future scrutiny.
US Operations Under Special Security Agreement (SSA)
Operating Elbit Systems of America requires navigating the unique requirements set by the US Department of Defense (DoD). To secure classified US government contracts, Elbit Systems of America must function under a Special Security Agreement (SSA). This SSA is the legal firewall designed to mitigate Foreign Ownership, Control, or Influence (FOCI) from the parent company.
The structure is rigid, demanding specific governance:
- Establishment of a permanent Government Security Committee.
- Mandatory inclusion of outside directors on the board with no other company affiliation.
- Separate physical and network infrastructure from the parent entity.
With 3,200 US-based employees as of 2025, maintaining this SSA compliance is non-negotiable for accessing the lucrative US defense market.
Political Shifts and Contract Cancellation Risk
Political winds can literally cancel multi-million dollar deals overnight, which is a major factor when dealing with sovereign governments. We saw this play out clearly in Europe recently. If foreign governments shift their political or regulatory stance, your order book takes a direct hit.
Here's a concrete example of that risk materializing:
| Contract/Action | Value/Stakes | Legal/Political Driver |
| Spain PULS Artillery Deal Cancellation (Reported Sept 2025) | Elbit's estimated stake: approx. €140 million | Shifting political sentiment/boycott calls |
| Israeli Exporters Reporting Cancellations (2024 Data) | 50% of exporters reported cancellations | Political sensitivities following Gaza conflict |
| EU-Related Political Cancellations (2024 Data) | 84% of political cancellations came from EU countries | Public opinion turning against Israeli defense firms |
Honestly, this trend suggests that any contract heavily reliant on a single, politically sensitive nation is inherently fragile.
US Anti-Boycott Law Exposure
For Elbit Systems of America, US anti-boycott laws present a constant, high-stakes compliance challenge, primarily concerning the Arab League's boycott of Israel. These laws, like the EAA amendments, prohibit US persons from complying with foreign boycott requests.
The potential penalties are severe, meaning even a procedural error can be costly:
- EAA willful violation fines: Up to $1 million.
- EAA willful violation imprisonment: Up to 20 years.
- TRA penalty: Denial of foreign tax credits.
Furthermore, there's ongoing legislative movement; proposed 2024 US House Resolution 10445 aimed to extend the statute of limitations for antiboycott violations to 10 years. You need to ensure your US entity's reporting (like Form BIS-621P or BIS-6051P) is flawless, even when requests are rejected.
Finance: draft a 13-week cash flow projection by Friday, explicitly modeling a 10% contingency buffer for potential regulatory fines or delays in the European export pipeline.
Elbit Systems Ltd. (ESLT) - PESTLE Analysis: Environmental factors
You're looking at the environmental tightrope Elbit Systems Ltd. walks-high-tech defense work inherently carries a heavy footprint, and stakeholders are watching closely.
Here's the quick math: The Q3 2025 backlog is 3.16 times the annual revenue, so future revenue is highly visible.
Your next step: Finance should model the impact of a 10% international contract delay, mapping it to the $25 billion backlog's conversion schedule by end-of-quarter.
EHS Reporting and CDP Participation
Elbit Systems definitely reports on its Environmental, Health, and Safety (EHS) performance, which is standard for a company of this scale. They use a global EHS management system covering nearly all operations, aiming for leading standards like ISO-14001. You can find the main outputs from their risk management processes, including climate-related issues, in their 2025 Carbon Disclosure Project (CDP) report. Honestly, they've been participating for a while, having published their fifth CDP response as of their 2024 reporting cycle.
The company monitors key metrics and sets multi-year goals to manage its ecological footprint. For instance, they track progress on reducing energy, water, and fuel consumption.
Climate Change Adaptation and Green Initiatives
The firm is actively adopting measures to adapt to climate change, which is smart given the operational risks. In 2024, they implemented increases in renewable energy sourcing and usage, looked into energy storage, and pushed for low-carbon vehicle fleet usage. Their 2021-2025 strategy included a specific goal to increase their electric car fleet to 750 vehicles by the end of 2025.
To give you a concrete number, the solar panels installed at some of their Israel sites generated 869 MWh of energy in 2024. Still, it's worth noting that the energy from those panels was sold to the national provider, meaning Elbit Systems couldn't claim the renewable credit directly for that output. They also have a long-term goal to decrease absolute Scope 2 emissions by 12% by 2025, using a 2020 baseline.
Sustainalytics Scrutiny on Product Portfolio
When you look at external ESG ratings, Sustainalytics flags a few material issues for Elbit Systems. Crucially, they flag carbon-related products and services as a risk area. This is a direct reflection of the nature of defense manufacturing, where the end-use of high-energy systems is inherently scrutinized from a climate perspective, even if the company's internal operations are improving.
As of their September 03, 2025 assessment, Sustainalytics gave Elbit Systems an ESG Risk Rating of 39.57, placing them in the High risk category. This score reflects unmanaged ESG risks across environmental, social, and governance factors.
Defense Manufacturing's Environmental Burden
Let's be clear: defense manufacturing is inherently scrutinized for its potential for large-scale environmental destruction, whether through the lifecycle of the products or the manufacturing processes themselves. While Elbit Systems focuses on sustainable innovation, like using 3D printing to reduce waste or developing hybrid engines for better fuel efficiency in their platforms, the sector faces a high bar. The company has noted that they haven't paid any significant environmental fines (over USD $10,000) in the last four fiscal years, which is a positive data point.
Here is a snapshot of some of their stated environmental targets and recent performance indicators:
| Environmental Metric/Goal | Baseline Year | Target Year | Value/Status |
|---|---|---|---|
| Scope 2 Emissions Reduction Goal | 2020 | 2025 | 12% decrease |
| Electric Vehicle Fleet Target | N/A | 2025 | Reach 750 cars |
| Solar Generation (Israel Sites) | N/A | 2024 | 869 MWh generated |
| Sustainalytics ESG Risk Score | Sep 2025 | N/A | 39.57 (High Risk) |
The company also monitors its direct Volatile Organic Compounds (VOC) emissions, reporting a total of 140.2 tons of direct VOC emissions in 2024.
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