AerCap N : 2024 ESG Report

CONTENTS

Contacts:

ESG

Donal Handley

Head of Government Affairs & Sustainability dhandley@aercap.com

Media

Gillian Culhane

VP, Corporate Communications gculhane@aercap.com

01 Overview

03 Corporate Citizenship

05 Reporting Approach

Reporting Period

• This report covers the 2023 financial year from January 1, 2023 to December 31, 2023

Delivering Net-Zero Aviation by 2050 Fleet Transformation Strategy Net-Zero 2050: SAF & Other Pathways AerCap's Leading Role in Policy Collaboration AerCap's Decarbonization Vision

Circular Economy & Aviation

Efficient AerCap Office Operations

Funding of Emissions Reduction Projects

Carbon Emissions Disclosures

Reporting Scope

• Information in this report covers AerCap Holdings N.V. and all of our consolidated subsidiaries (which are listed in Exhibit 8.1 of our 20-F), unless specified otherwise

Reporting Process

• We follow the recommended reporting principles of stakeholder inclusiveness, sustainability context, significance and completeness
• This report is produced with reference to the GRI Standards
• AerCap has a formal process to identify new relevant regulatory and stakeholder expectations. As such, AerCap is preparing to report as required under upcoming regulations including CSRD and the SEC and this will be addressed in future reports. As such, this report is not designed to meet all future regulatory reporting obligations

Dear Stakeholders,

It's with great pleasure that I present AerCap's seventh annual ESG Report, covering the year 2023. As we reflect on our journey, marked by two years of dedicated work by our ESG board committee and staff, I am proud of the strides we have made and excited about the path ahead.

As the leading aviation lessor, AerCap is deeply invested in fostering sustainable growth within our industry. We recognize aviation's indispensable role in economic development, harmonizing international relations and facilitating cross-border trade.

The airline industry is faced with increased costs associated with funding the cost of decarbonization, such as carbon charges (e.g., European-Emission Trading Scheme), and higher costs for sustainable aviation fuels.

Against this backdrop, our ESG Committee convened four times during 2023, monitoring the implementation of our work program and, in particular, the Company's preparations to comply with the requirements of the recently adopted EU and U.S. climate disclosure rules.

AerCap's ESG Strategy (approved by AerCap's Board in December 2022) remains the foundation of our ESG

Committee. We firmly believe that sustainability cannot exist in isolation but must be seamlessly integrated into our overarching corporate strategy. By identifying areas where AerCap can maximize its impact and by proactively addressing key risks and opportunities, we aim to drive meaningful change within our industry.

Public ESG and sustainability reporting is becoming more broadly expected by lenders, investors, shareholders, and other parties. ESG rating agencies provide corporate governance and other corporate risk information to investors and shareholders. I am pleased that AerCap's ESG ratings have continued to maintain a positive trajectory, as evidenced by our upgrade by MSCI ESG Ratings to 'AA' or 'Leader' level in September 2023, and by our upgrade by Morningstar Sustainalytics to 'Low Risk' level in April 2024.

Beyond climate concerns, AerCap remains steadfast in its commitment to exemplary governance, diversity and inclusion, and corporate values. We strive to attract and nurture the best talent, leveraging our human capital to deliver sustainable returns for stakeholders. Moreover, we endeavor to make a positive societal impact commensurate with our market leadership position.

Our approach in the year ahead will continue to be twofold: to assert control where feasible, and to exert influence where necessary. By staying ahead of emerging trends and preparing for future challenges, we are confident in our ability to lead our industry toward a more sustainable future.

In closing, I extend my gratitude to our dedicated team and valued stakeholders for their unwavering support. Together, we will continue to chart a course towards a more sustainable and prosperous future for AerCap and the aviation industry at large.

- Stacey Cartwright, ESG Committee Chair

The aviation industry has committed to achieving Net-Zero flying by 2050. However, the path to reaching this goal is complex. It requires a unique level of cooperation across the entire aviation ecosystem, including airlines, OEMs, lessors, lenders, fuel suppliers, and trade associations.

The activity that currently contributes most to decarbonization is fleet renewal, and AerCap continues to play a leading role by investing in the most fuel-efficient new technology aircraft.

By the end of 2023, ~70% of our owned commercial aircraft fleet consisted of new technology aircraft on lease to ~80 airlines, along with a fleet of ~80% new technology engines and an additional ~$18 billion of new technology assets on order.1 Since 2014, we have invested ~$50 billion in new technology aircraft, more than any airline or any other lessor. As a result of this investment, our Scope 3 emissions intensity has improved, generating a 15% reduction in gCO2 per seat/km across our entire fleet in the last decade despite doubling in size through M&A.2

We have ~300 customers and we directly aid our customers' decarbonization efforts. Many airlines lack the financing or delivery slots to enable their transition to new technology aircraft that produce lower emissions, so lessors like AerCap must play a key role. More recently, OEM supply chain constraints have placed further pressure on airlines' ability to access the most efficient aircraft types.

In that regard, during 2023, AerCap:

• Executed a total of 953 transactions, including 592 lease agreements;
• Completed purchases of 173 assets, including 80 fuel-efficient, new technology owned aircraft, for approximately $6.4 billion; and
• Completed sales of 167 assets for aggregate proceeds of approximately $2.8 billion, including 74 owned aircraft with an average age of 16 years.

Building on fleet renewal, AerCap continues to take account of all decarbonization tools and regulatory obligations in our efforts to

support Net-Zero Aviation 2050, including:

• The scale-up of Sustainable Aviation Fuels ("SAF");
• Preparing for EU and U.S. climate-related regulatory disclosures;
• Aircraft decommissioning and recycling;
• Engagement in ESG reporting; and
• Assessing potential opportunities relating to sustainable finance and carbon measures, as well as developments relating to future disruptive technologies.

We have continued to build on our Diversity and Inclusion ("D&I") framework and we are continuing to make positive strides to address the historical underrepresentation of women in our industry. I am pleased to report that in 2023, 50% of our new hires were female.

Training was made available to all employees during 2023 and all relevant corporate policies and procedures were reviewed and adapted where necessary, to promote alignment with the Company's D&I objectives.

AerCap's senior leadership team, together with the ESG Committee, will continue to engage and utilize feedback from employees to further develop programs and initiatives that support our D&I strategy.

Our Corporate Social Responsibility ("CSR") Committee, led by our employees, successfully oversees our charitable activities. In 2023, AerCap, together with our employees, donated over $800,000 to charities and partnerships.

- Aengus Kelly, AerCap CEO

RELATED RISKS

Indirect Physical Risks

• The occurrence of severe weather events or natural disasters may impact demand for air travel or make airlines unable to operate from certain regions, and the frequency or severity of these types of events may worsen as a result of climate change
• However, due to the mobile nature of our assets and our ability to work effectively from various locations, we consider direct physical risks to AerCap to be limited

Indirect Transition Risks

• Due to growing concerns over the risks of climate change, many jurisdictions are moving towards imposing more stringent limits on greenhouse gas emissions from aircraft engines
• The general public's increasing interest in less carbon- intensive travel methods will likely lead to airlines favoring aircraft with lower emissions, and airlines may choose to exit older technology assets more quickly
• This may affect lease rates on our older technology aircraft and pose's a risk to their residual values

AERCAP APPROACH

• 99.9% of our total reported emissions in 2023 related to Scope 3 downstream use of our owned assets across our global fleet. We do not have direct control over these emissions, as the assets are operated by our customers, and this fact restricts our ability to directly impact the quantum of our reported emissions
• In line with our commercial strategy, AerCap's aircraft fleet reached ~70% new technology at the end of 2023 and our order book consists of 100% new technology aircraft, underpinning our fleet transition strategy towards ~75% new technology in 20241
• In 2023, we purchased 80 new technology aircraft, and sold 74 older technology aircraft, with an average age of 16 years, improving the risk profile of our portfolio
• AerCap supports our customers' fleet renewal plans. Eighty of our airline customers now lease new technology aircraft.
• As a lessor of scale, with an installed base of assets with ~300 customers, we are frequently asked to partner with the aircraft OEMs on major campaigns for new technology aircraft

• In 2021, the airline members of the International Air Transport Association ("IATA") approved a resolution to achieve Net-Zero carbon emissions by 2050. Approximately 190 of those airlines are AerCap customers. AerCap is enabling their journey through the provision of the latest new technology aviation assets
• Through our Government Affairs & Sustainability function, we actively engage policymakers and industry on regulatory developments across all Net-Zero aviation areas
• AerCap is exploring how to encourage the scale-up of SAF to support our customers' emissions reduction efforts
• AerCap is preparing procedures to meet all EU and U.S. climate reporting obligations
• Through AerCap Cargo, we recycle older aircraft by placing them into cargo conversion programs, helping our cargo customers reduce their emissions
• Through AerCap Materials, we efficiently retire aircraft, with strict processes around adherence to environmental and safety protocols
• We are engaged with our OEM partners, airlines, and other industry players in discussions regarding the design and commercialization of the next generation of aircraft and engine technology

RELATED RISKS

Internal Risks

• Aircraft leasing is a competitive and niche industry. Our business relies heavily on people, and our ability to attract and retain the best talent in the industry
• Our stance and actions, either as a company or by our employees individually, directly convey our values

Downstream Risks

• Increased public scrutiny over social aspects of airlines' behavior may lead to disruptions to airline schedules or impair airlines' ability to operate at full capacity and efficiency, thereby affecting their ability to meet their lease obligations

Upstream Risks

• Social issues adversely affecting the ability of our suppliers, the OEMs, to meet their delivery obligations may impact our financial performance and pose potential reputational risks

See Supplemental Information - Endnotes.

© AerCap - Confidential property of the company, not for disclosure or use without permission

AERCAP APPROACH

• AerCap has a high-performance culture and operates in a dynamic and fast-paced industry. Our employees are one of our most important assets and we seek to hire, reward and retain the best talent in the industry to help retain our global leadership position
• We are focused on building a diverse talent pipeline, both internally through our continuous professional development programs and externally through our sponsorship of educational programs and partnerships with other industry players
• AerCap provides air mobility to airlines in emerging markets, which represented ~53% of our lease revenue in 2023, enabling countries to develop economic links that support their development and economic growth1
• As part of our, DEIB framework, an extensive staff survey, and focus groups were conducted in 2022 and 2023. Training on topics related to DEIB was made available to all employees during 2023 and all relevant corporate policies and procedures were reviewed, and adapted where necessary, to promote alignment with the Company's DEIB objectives. AerCap's senior leadership team, together with the ESG Committee, will continue to engage and utilize feedback from employees to further develop programs and initiatives that support our DEIB strategy

• At an industry level, we partner with a variety of organizations that are focused on advancing gender diversity and gender equality, including Advancing Women in Aviation Roundtable ("AWAR"), Women in Aviation Singapore Chapter, and PropelHer
• AerCap offers attractive packages to our employees, including competitive salaries, performance-based bonuses, and employee share schemes, as well as comprehensive health and dental coverage and a wide selection of wellness initiatives promoted throughout 2023
• We partner with charities in our local communities and with our airline customers and the OEMs on charitable and social initiatives. In 2023, together with our employees, AerCap donated over $800,000 to charitable and social causes

8

GOVERNANCE

RELATED RISKS

• Public ESG and sustainability reporting is now broadly expected by lenders, investors, shareholders and other stakeholders. Furthermore, both the EU and the U.S. have introduced enhanced disclosure regulations requiring aircraft lessors to report on various climate-related matters
• Aircraft leasing requires both financial and industrial expertise, so it is important to have the correct mix of expertise on the Board of Directors
• Having operations, assets and customers in many different parts of the world requires internationally diverse expertise
• Regulation of aircraft and engine noise and emissions levels are increasingly being adopted and can apply based on where the aircraft is registered or where the aircraft is operated
• Given that aviation is a hard-to-abate sector, there is a heightened risk of being accused of greenwashing
• IT security threats are emerging with growing complexities
• Following the implementation of the General Data Protection Regulation ("GDPR") in the EU, the mishandling of personal data can result in significant financial and reputational damage to the Company

AERCAP APPROACH

• Our Board of Directors is a key competitive advantage for AerCap, and provides a wealth of knowledge and experience, with deep industrial and financial expertise, as well as diversity of gender and nationality
• We strive to conduct our business with integrity and in an honest and responsible manner and to build relationships with our customers, suppliers, shareholders, employees and other stakeholders
• Governance of ESG-related risks and opportunities was further enhanced with the establishment of a Board-level ESG Committee in December 2021
• Our Government Affairs & Sustainability function, located in Brussels, is focused on legislative developments and strategic matters emerging from Europe and beyond, helping AerCap to understand the emerging regulatory landscape and be heard
• Our Code of Conduct outlines the high standards and business principles expected from all employees and business partners

• No material/reported compliance breaches or major lawsuits against AerCap in 2023
• Top-classIT systems with no major employee, Company or customer data privacy breaches in 20231 . (See page 55 which refers to a cybersecurity incident, which occurred in January 2024 and was disclosed in January 2024)
• AerCap is preparing procedures to meet all EU and U.S. climate reporting obligations
• Transparency: AerCap has published an annual ESG Report since 2018 and each year we strive to improve the report to promote transparency and to confirm that the disclosures provided are relevant and focused on what matters most to our stakeholders