Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Customer Service
• Employee Well-being
• Social Responsibility
• Governance

Environmental Achievements

• Annual ton/km fuel consumption decreased by 3.95% year on year.
• Aviation fuel e-cloud platform expected to reduce aviation fuel waste by approximately 1,500 tons per annum.
• World's first 10,000-ton carbon quota swap trade between the European Union and Guangdong Province.
• First use of bio-jet fuel for intercontinental flight.

Social Achievements

• RMB 35.93 million invested in poverty alleviation work in Pishan and Moyu counties of Xinjiang.
• 77 patriotic cadres sent to remote villages to help with poverty alleviation.
• Opened 102 new air routes along the "Belt and Road Initiative".
• Completed 94 charter rescue flights, transporting 9,516 medical personnel and over 495.28 tons of rescue supplies to Hubei Province during the COVID-19 outbreak.

Governance Achievements

• Implemented equity diversification reform through central and local cooperation.
• Withdrew from SkyTeam and expanded international cooperation with new partners.
• Improved corporate governance and listing compliance, receiving an A-level evaluation of information disclosure for 6 consecutive years.
• Implemented a comprehensive compliance management system.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on operations.
• Supply chain disruptions (not explicitly stated, but implied).
• COVID-19 outbreak significantly impacting flight operations.

Mitigation Strategies

• Technological optimization, management improvement, and big data analysis to improve jet fuel use and reduce greenhouse gas emissions.
• Development of alternative sourcing strategies (implied).
• Emergency rescue flights and donation of medical supplies during the COVID-19 outbreak.

Supply Chain Management

Responsible Procurement

• Hierarchical management of suppliers.
• Procurement of green products.
• Use of new energy general vehicles at Daxing International Airport.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Guidelines (GRI Standards), HK-ESG, Guidelines on Preparation of Corporate Social Responsibility Report, Notice on Further Improving Disclosure of Poverty Alleviation Work of Listed Companies

Certifications: IATA Baggage Tracking Resolution 753 Hub Compliance Certification, CEIV Pharma Certification

Awards & Recognition

• Best Chinese Airline of the Year 2019 (Business Travel Magazine)
• Golden Phoenix Award

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Protection
• Social Responsibility
• Green Flight

Environmental Achievements

• Annual carbon dioxide emissions were 19.3180 million tonnes. The fuel consumption per ton kilometer was 2.95 tonnes/10,000-ton-kilometer, and carbon dioxide emissions per ton kilometer were 9.29 tonnes/10,000-ton-kilometer. Annual fuel consumption per ATK decreased by 6.6% year-on-year. Reduced 1.10 million in-flight meals wastage.
• Invested RMB516 million to promote the use of new energy vehicles in the airport control area. Promoted the application of bridge-carrying power supply instead of APU, saving a total of 116,000 tonnes of aviation fuel.

Social Achievements

• Operated a total of 19,000 anti-pandemic flights, transported 25,000 medical personnel and 29,000 tonnes anti-pandemic supplies, and brought back 24,000 stranded compatriots; recorded zero infection among passengers on board in international and domestic flights, and zero infection among all employees at work.
• Launched the “family service 360” and “Kapok Brand” campaign. Passengers were encouraged to cancel meals in exchange for mileage, a green flight service of CSA.
• Baggage tracking project obtained IATA Network-wide Compliance Certificate.
• Reawarded “National Benchmarking Enterprise of Customer Satisfaction”.
• Established EAP aircrew mental health room and “companion” psychological care studio to improve the mental health of employees.

Governance Achievements

• Successfully implemented the “Double Hundred Action” mixed ownership reform.
• Freight and Logistic Company officially implemented the mixed ownership reform and became one of the national backbone aviation logistics enterprises with mixed ownership.
• Improved supplier management mechanisms. Issued the Measures for Supplier Management to promote classification and hierarchical management of supplier, gradually established and improved the supplier assessment system.

Climate Goals & Targets

Environmental Challenges

• Impact of COVID-19 pandemic, Expansion of high-speed rail network, Intensifying competition in the industry, Exchange rate fluctuation, Crude oil price fluctuations

Mitigation Strategies

• Effectively organized pandemic prevention and control, ensured a stable security situation, seized market opportunities, reduced costs and enhanced efficiency, and steadily promoted the reform of systems and mechanisms.
• Proactively adjusted its operating strategies in response to the development of the pandemic and the direction of government policy.
• Spared no efforts to secure passenger revenue, closely followed the changes in the pandemic, rollingly optimized domestic routes and flights, and seized international inbound passenger sources.
• Actively grasped the opportunity to increase revenue from freight logistics, comprehensively improved the utilization rate of freighters, and organized 8,431 freight flight converted from passenger aircraft throughout the year.
• Strove to strengthen cost control, actively sought policy support, and drastically reduced costs.
• Took the initiative to reduce investment and adjusted the pace of aircraft capacity introduction in a timely manner.
• Expedited the revitalization and disposal of assets, and further enhanced the utilization rate of real estate.
• Established a long-term mechanism for lean management and control of cost, and continuously lay a solid foundation to intensify the stamina for development.

Supply Chain Management

Responsible Procurement

• Measures for Supplier Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRSs

Certifications: IATA baggage tracking compliance certification

Third-party Assurance: KPMG Huazhen LLP and KPMG

Awards & Recognition

• Outstanding Units for Blue Sky Protection Campaign

Environmental Metrics

ESG Focus Areas

• Safety
• Low Carbon
• Governance
• Service Quality
• Employee Well-being
• Community Investment
• Supply Chain Sustainability

Environmental Achievements

• Reduced fuel consumption per ton-kilometer and carbon emissions per ton-kilometer by 2.7% compared to the previous year.
• 100% electrification of new or updated vehicles in key regional airports.
• Maintenance hazardous waste treatment rate reached 100%.
• Wastewater treatment rate of aviation food production reached 100%.
• Nearly 260 tons of fuel saved by weight reduction.
• Passengers' "Meal on demand" saved 2.431 million meals.
• 1,427 aircraft dry cleaning completed, reducing water consumption by 48,895 tons.

Social Achievements

• Passenger satisfaction increased by 5.9% year on year.
• Won the Skytrax "China's Best Airlines" award.
• Launched "Five Dimensional" service and "Affinity and Refinement" concept.
• Improved the one-stop full-process service platform of "China Southern E-line".
• Launched "Green Flight--Passenger Carbon Offset" service.
• Invested 72.795 million yuan in targeted counties and 350 million yuan in investment through investment promotion.
• Carried out 274,000 person-times of heart-to-heart talk and more than 1,800 person-times of consultation through the "Kapok Good Mood" studio.
• Launched 32 sessions of "Kapok Heart Companion" online counseling.
• Launched optimized pet consignment products.

Governance Achievements

• Maintained "A" level in the responsibility system assessment of the Party building work of central enterprises for five consecutive years.
• Successfully concluded the three-year reform campaign.
• Completed 100% of filing tasks in the three-year reform of state-owned enterprises.
• Signed 74 contracts under the tenure system and contract system.
• Carried out special rectification of "Institutionalization" in 45 secondary units.
• Improved the company's risk control management system and mechanism.
• Established a risk quantitative monitoring index system.

Climate Goals & Targets

Environmental Challenges

• Extreme difficulties and severe challenges faced in 2022.
• Impact of industrial flight accidents.
• Supply chain disruptions in the service industry.
• Need to restore routes and flights.
• Need to reduce costs and revitalize resources.
• Need to improve flight availability.
• Need to manage risks related to the pandemic, severe weather, and geopolitical events.

Mitigation Strategies

• Implemented operational response plan and stable growth work plan.
• Carried out special actions to improve flight availability.
• Created "Five Dimensional" service.
• Implemented "Affinity and Refinement" concept.
• Improved the "China Southern E-line" platform.
• Opened special passenger service counters and channels.
• Took measures to return and alternate when passengers are in an emergency.
• Implemented seven major actions of carbon neutrality.
• Completed the first phase of the aircraft weight management system.
• Achieved the goal of plastic restriction and the new and updated electrification of in-field vehicles at key airports.

Supply Chain Management

Supplier Audits: 29,270 suppliers evaluated

Responsible Procurement

• Sunshine Procurement
• Green Procurement
• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events

Transition Risks

• Regulatory changes related to carbon emissions

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, UN 2030 Sustainable Development Goals

Certifications: IOSA

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 17 (Partnerships for the goals)

Initiatives contribute to these goals through various ESG programs and initiatives.

Sustainable Products & Innovation

• Green Flight service
• Optimized pet consignment products

Awards & Recognition

• Skytrax "China's Best Airlines" award
• Environmental Airlines of the Year 2022
• 2022 "Archive Civil Aviation" Excellent Short Video First Prize
• Golden Bee 2022 Excellent Corporate Social Responsibility Report Evergreen Award

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Service
• Employees
• Society
• Economy
• Climate Change
• Corporate Governance
• Rural Revitalization
• Supply Chain Management

Environmental Achievements

• Saved 175,100 tons of fuel and reduced 551,600 tons of carbon emissions in 2023.
• Reduced fuel consumption per ton-kilometer by 7.68% compared to 2019.
• Completed sharklet retrofitting for 48 A320CEO series aircraft, reducing CO2 emissions by about 23,000 tons per year.
• Achieved 100% treatment rate of wastewater from aviation food production and hazardous waste from aircraft maintenance.
• Implemented precision water filling, saving nearly 30,000 tons of water and over 2,000 tons of fuel.
• Increased the usage rate of electronic waybills to 95.1%.

Social Achievements

• Launched the "Green Flight" on-demand meal service, utilized more than 4,863,500 times by passengers, reducing meal waste.
• Invested RMB 74.6987 million in recipient counties for paired-up assistance, providing training to 3,061 individuals and attracting investment totaling RMB 1.828 billion.
• Launched "China Southern Air Shuttle" brand service, improving flight scheduling, ticketing services, ground services, etc.
• Upgraded app service experience, making it senior-friendly and accessible to visually impaired users.
• Improved complaint handling system, effectively reducing the complaint rate by 58.48% year-on-year.
• Provided dedicated psychological counseling services for all employees.

Governance Achievements

• Achieved Grade A in the three-year evaluation of state-owned enterprise reform.
• Established a "4+1+4" institutional system to clarify the boundaries of rights and responsibilities of governance subjects.
• Implemented a director skill matrix to evaluate independent director candidates, ensuring a holistic nomination process.
• Conducted compliance training for directors, supervisors, and senior executives.
• Achieved "zero errors" in information disclosure throughout the year.
• Strengthened compliance management system, formulating a comprehensive compliance management framework document.

Climate Goals & Targets

Environmental Challenges

• Climate change impacts
• Supply chain disruptions
• Flight delays
• Maintaining high safety standards
• Ensuring information security
• Managing compliance risks

Mitigation Strategies

• Formulated a Carbon Peaking Action Plan
• Implemented digital fuel-saving practices
• Improved early warning and handling mechanism of flight delays
• Developed seven characteristic safety systems
• Established a network security system
• Strengthened compliance management system and risk management mechanism

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Management Standard for Prohibition and Restriction of China Southern Airlines Disposable Plastic Products
• Category management framework

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, HK-ESG Reporting Guidelines

Certifications: ISO27001, PCI DSS, DCMM Level 4, IATA Operational Safety Audit (IOSA)

Third-party Assurance: TÜV NORD (Hangzhou) Co., Ltd.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 11 (Sustainable cities and communities)
• Goal 17 (Partnerships for the goals)

Initiatives contribute to these goals through various ESG actions.

Sustainable Products & Innovation

• "Green Flight" on-demand meal service
• "Green Flight-Passenger Carbon Offset Service"

Awards & Recognition

• "Three-Star Flight Safety Diamond Award"
• "Five Star Diamond Award for Airlines"
• "Best Airline Award" (six successive years)
• "Sustainable Brand of the Year"
• "Top 50 Central State-owned Enterprises in the ESG Golden Bull Awards"
• "Top 100 Enterprises in the ESG Golden Bull Awards"
• "China Reform ESG Ratings AA-rating"
• "Cargo Airline of the Year"
• "Sustainable Contribution Brand of the Year"
• "Corporate Social Responsibility Brand of the Year"
• "Best Airline in China"
• "Best Airlines in the World" (13th)
• "World's 50 Most Valuable Airlines" (6th)