Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Responsibility
• Corporate Social Responsibility
• Human Rights
• Compliance

Environmental Achievements

• Investment in fuel-efficient aircraft (787s and 737s) to reduce emissions.
• Minimized transportation requirements and fuel usage during maintenance.
• Implemented recycling programs across all office locations.
• Water-efficiency measures and reduction in electricity and fuel consumption in offices.
• Promotion of public transportation and biking to work schemes.
• LEED-certified and Energy Star National building in Miami office.

Social Achievements

• Supported Jack & Jill Children’s Foundation (€36k donation).
• Launched a three-year partnership with Pentathlon Ireland focusing on youth development in underprivileged communities.
• Supported local charities in Miami, New York, and Singapore offices.
• Continued support for Orbis Ireland to fight avoidable blindness in Ethiopia.
• Provided career development opportunities to 25% of employees.
• 16 internal moves and promotions, 8 temporary employees made permanent.
• Financial support for further education (16% of employees in third-level courses).
• Wellbeing week with health screenings, dental clinics, and talks on nutrition and work-life balance.

Governance Achievements

• Robust compliance program promoting ethical conduct, fair reporting, and legal compliance.
• Code of Conduct with annual online training for all employees.
• Zero-tolerance policy for child labor, forced labor, and human trafficking.
• Annual anti-bribery and anti-money laundering training.
• Directors’ Compliance Statement Policy to ensure compliance with the Irish Compliance Act 2014.
• Established Audit Committee, Finance Committee, and Nomination and Remuneration Committee.

Climate Goals & Targets

Environmental Challenges

• Geopolitical and economic risks associated with a global business.
• Exposure to the financial condition of the commercial airline industry.
• Risks relating to leasing of aircraft (re-leasing, maintenance, regulations, financing).
• Asset risk (decreasing demand, lease rates, aircraft values).
• Foreign exchange risk (though minimized due to USD transactions).
• Interest rate risk.
• Credit risk (lessee defaults).
• Liquidity risk (meeting payment obligations).

Mitigation Strategies

• Prudent growth strategy, proactive portfolio management, diverse financing sources.
• Diversified customer base (largest customer <6% of portfolio).
• Disciplined re-marketing strategy for aircraft.
• Multiple divestment channels.
• Focus on liquid, in-demand assets.
• Best-in-class pricing, risk, and technical systems.
• Efficient remarketing, contract execution, and aircraft transition management.
• Diversified funding strategy.
• Experienced team of aviation professionals.
• Strong financing track record and robust capital structure.
• Regular reviews of carrying values of assets, receivables, and deferred tax assets.
• Security deposits, letters of credit, and maintenance reserves to mitigate credit risk.
• Derivative contracts to manage interest rate risks.

Supply Chain Management

Responsible Procurement

• Contracting with suppliers to minimize transportation requirements, fuel usage, and emissions during maintenance.

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance Excellence

Environmental Achievements

• Invested over US$1 billion in new technology aircraft, 30% of total fleet, reducing emissions by 14-20% compared to predecessors.
• 30% of the fleet was fuel-efficient technology (up from 22% in 2019).
• Comprehensive aircraft end-of-life strategy to reduce waste and maximize value of components.

Social Achievements

• Half of the leadership team are women.
• Proud sponsors of Advancing Women in Aviation Roundtable (AWAR).
• 54% of airline customers are based in 29 emerging market countries.
• Provided over US$180 million in relief packages to airline customers during the COVID-19 pandemic.
• Continued Community Giving Program across all global offices.

Governance Achievements

• New Code of Conduct for Independent Contractors.
• Returned US$350 million to Shareholders in 2020.
• Zero Compliance Incidents | Zero Data Breaches | Zero Political Contributions during the reporting period.

Climate Goals & Targets

Environmental Challenges

• Climate change and the need to reduce the aviation industry's greenhouse gas emissions.
• Risks to the business model from political motivation to quickly decarbonize economies.
• High level of Scope 3 GHG emissions from leasing aircraft.

Mitigation Strategies

• Progressive fleet transition to newer, more fuel-efficient aircraft.
• Moving Dubai head office to a LEED Platinum building to reduce energy consumption.
• Exploring sustainable electricity sources for other global offices.
• Actively engaging with debt investors and lenders to manage transactions towards lower-carbon investing.
• Implementing carbon offsets for flights.

Supply Chain Management

Responsible Procurement

• Independent Contractor Code of Conduct
• Reviewing vendor policies and procedures to reintroduce annual appraisal of largest vendors.

Climate-Related Risks & Opportunities

Transition Risks

• Political motivation to quickly decarbonize economies.

Opportunities

• Fleet renewal and generating new business through transactions while reducing Scope 3 GHG emissions.

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance Excellence

Environmental Achievements

• Increased fuel-efficient aircraft in fleet to 39.4%
• Increased aircraft with winglets/sharklets to 88.2%
• Invested US$1.1 billion in new, fuel-efficient aircraft

Social Achievements

• Maintained over 40% female employees at DAE Capital
• Increased employee training by 21% at DAE Capital
• Launched Emirati intern program

Governance Achievements

• Published dedicated ESG Policy
• Received Sustainalytics ESG Risk Rating of 14.1 ('Low Risk')
• Strengthened Board composition with new executive and non-executive directors

Climate Goals & Targets

Environmental Challenges

• High Scope 3 GHG emissions from leased assets
• Complexity of decarbonizing aviation industry
• Maintaining a young and liquid aircraft fleet

Mitigation Strategies

• Fleet transition to newer, fuel-efficient aircraft
• Investment in next-generation assets
• Aircraft recycling and dismantling strategy
• Collaboration with industry stakeholders on decarbonization

Supply Chain Management

Supplier Audits: 31 suppliers representing 84% of annual spend underwent performance evaluation

Responsible Procurement

• Independent Contractor Code of Conduct
• Supplier performance evaluation program

Climate-Related Risks & Opportunities

Opportunities

• Fleet transition to lower carbon assets
• Generating new business through fleet renewal

Reporting Standards

Frameworks Used: GRI Standards: Core Option

Third-party Assurance: KPMG

Awards & Recognition

• Sustainalytics ESG Industry Top Rated
• Sustainalytics ESG Regional Top Rated

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Social Responsibility
• Governance, Ethics, and Compliance

Environmental Achievements

• Deploying capital to acquire modern, efficient assets to lower the carbon intensity of the fleet
• Seeking and deploying innovative technologies to enhance the resilience of buildings and maximize environmental efficiency

Social Achievements

• Maintaining an inclusive, equitable, and diverse workplace
• Providing competitive pay and strong benefits packages
• Maintaining a positive workplace environment free from discrimination and harassment

Governance Achievements

• Maintaining strong corporate governance policies and procedures
• Maintaining high ethical standards for directors, employees, and contractors
• Fostering strong stakeholder relationships through transparency and open communication

Climate Goals & Targets

Environmental Challenges

• Increasing cost and complexity of regulatory compliance for airline customers
• Pricing GHG emissions and increases in carbon taxes
• Policy ban on short-haul flights
• Increased ESG reporting requirements
• Risk that technology advancement in aviation does not keep up with GHG reduction targets
• Reputational risk from public concerns around climate change
• Lack of short-term decarbonization options for aviation
• Investor pressure to increase sustainability
• Poor sustainability performance impacting talent attraction and retention

Mitigation Strategies

• Investing in fuel-efficient, new technology aircraft and progressively decommissioning older aircraft
• Working proactively with stakeholders to reduce the carbon intensity of operations
• Developing a comprehensive sustainability strategy to embed sustainability into the business
• Exploring options to manage and reduce carbon emissions
• Exploring alternative partnerships to source carbon reductions and deliver co-benefits
• Reporting in line with GRI and developing internal expertise on ESG reporting
• Increasing the proportion of the fleet that is new technology aircraft
• DAE Engineering has broad maintenance capabilities on older aircraft types, and increased retirements may have a material impact on the business’ revenue DAE Engineering has 13 aircraft type approvals, including a number of new technology aircraft, and it is forecast that a reduction in older technology aircraft being inducted into Maintenance, Repair, and Overhaul (MRO) will be replaced by an increased number of new technology aircraft in global fleets

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Increasing cost and complexity of regulatory compliance for airline customers
• Pricing GHG Emissions and increases in carbon taxes
• Policy ban on short-haul flights
• Increased ESG reporting requirements
• Risk that technology advancement in the aviation sector does not advance quickly enough to keep up with global aviation GHG reduction targets

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• DAE Capital has a young fleet with the average age of its passenger fleet being 7.4 years as of June 30, 2024. At that same date, approximately 47% of DAE Capital’s fleet were next generation and fuel-efficient aircraft, reducing fuel use and emissions by up to 20%. On average each airplane will save up to 8 million pounds of CO2 annually compared to airplanes it replaces.
• DAE has a comprehensive aircraft end of life strategy. We work directly with our customers and industry partners to recycle end of life aircraft to reduce waste while maximizing the remaining value of the aircraft components and engines.
• DAE supports a variety of internal environmental initiatives including the use of energy efficient lighting, water conservation and a continued focus on recycling and reducing waste. Furthermore, DAE encourages staff to communicate using the latest conferencing facilities leading to reduced travel between offices. We also encourage commuting to work using public transport, walking, or cycling where appropriate to do so.

Social Achievements

• DAE has a multi-cultural, diverse working environment with over 26 nationalities. In addition, at June 30, 2024, our DAE Capital business had a ratio of 63% male employees and 37% female employees.
• Through our Community Giving initiative we support a number of charities linked to our local offices and encourage staff to engage in physical and mental well-being activities.

Governance Achievements

• DAE maintains strong corporate governance policies, procedures, and practices that foster board stewardship, management accountability, and proactive risk management.
• All our directors, employees, and contractors are expected to conduct themselves in accordance with the highest ethical and moral standards, as informed by our Code of Conduct

Climate Goals & Targets

Environmental Challenges

• Lower maintenance revenue resulting in decreased net lease revenue.
• Higher labor and material costs in engineering maintenance services.

Mitigation Strategies

• Higher billed labor hours on heavy maintenance checks, new MRO market shares captured and overall operational efficiencies in engineering maintenance services.

Supply Chain Management

Responsible Procurement

• DAE encourages its aircraft recycling and dismantling service providers to comply with industry best practice including IATA’s Best Practices for Aircraft Decommissioning, and where applicable to obtain AFRA (Aircraft Fleet Recycling Association) accreditation.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: KPMG (Limited Assurance)

Awards & Recognition

• ESG Industry Top-Rated and ESG Regional Top-Rated accreditations from Morningstar Sustainalytics (2023)