Climate Change Data

LATAM Airlines Group

Climate Impact & Sustainability Data (2016)

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:11,367,134 t CO2e/year
Scope 1 Emissions:11,343,650 t CO2e/year
Scope 2 Emissions:15,767 t CO2e/year
Scope 3 Emissions:7,718 t CO2e/year
Total Energy Consumption:155,668.69 TJ/year
Waste Generated:8,034.76 tons/year
Carbon Intensity:83.02 kg CO2e/100 RTK in 2016

ESG Focus Areas

  • Climate Change
  • Eco-efficiency
  • Noise Reduction
  • Client Connectivity and Relations
  • Health and Safety
  • Talent Management
  • Government Relations
  • Value Chain
  • Economic-Financial Sustainability

Environmental Achievements

  • Reduced greenhouse gas emissions by 2.3%
  • Reduced emissions intensity by 0.95%
  • Fuel savings equivalent to 440,300 t CO2e in emissions
  • 8.3% lower fuel consumption than the IATA average
  • 27% reduction in GHG emissions in ground operations from 2012 to 2016
  • Offsetting measures totaled 13,873 t CO2e from 2012 to 2016

Social Achievements

  • Launched LATAM Recognition Platform, receiving more than 17,000 recognitions
  • Improved client satisfaction across all airports (80%-93% against a target of 85%)
  • Implemented cultural transformation in service areas, impacting 7 million employees
  • Invested US$ 181,612 in Cuido mi Destino program, promoting sustainable tourism
  • Transported more than 672 metric tons of humanitarian aid to Ecuador after earthquake
  • Donated US$ 4.8 million in philanthropic actions

Governance Achievements

  • Approved LATAM Sustainability Policy, ensuring a unified approach to sustainable development
  • Approved four new corporate policies reinforcing self-regulation (Code of Conduct, Management Committee Code of Conduct, Policy on executives’ Roles and Responsibilities, Anti-corruption Compliance policy)
  • Improved financial results: US$ 69.2 million net income, first positive annual result since 2011
  • Reduced financial leverage from 5.8 in 2015 to 5.3 in 2016

Climate Goals & Targets

Long-term Goals:
  • Halve carbon footprint by 2050 against base-year 2005
Medium-term Goals:
  • Increase passenger numbers for domestic flights by 50% by 2020
  • Achieve 1.5% annual increase in fleet fuel efficiency by 2020
  • Carbon neutral ground operations by 2020
Short-term Goals:
  • Implement new domestic flight model in all markets by July 2017
  • Reach all LATAM airports and flight attendants with new service culture by end of 2017

Environmental Challenges

  • Economic slowdown in Latin America
  • Increasingly rigorous environmental regulations
  • Extreme climatic events
  • Volcanic ash impacting air operations
  • Negative performance in Asia and Europe cargo client satisfaction
Mitigation Strategies
  • Implemented Change to One process to enhance efficiency and agility
  • Developed new domestic flight model with more flexible pricing
  • Reduced total assets and fleet commitments
  • Improved flight procedures and fleet renewal to enhance fuel efficiency
  • Developed a standardized methodology for managing reputation and image risks
  • Implemented a system for cross-checking supplier information with international databases
  • Developed specific action plans to improve cargo client satisfaction in Asia and Europe

Supply Chain Management

Supplier Audits: 14,204 assessments in 2016

Responsible Procurement
  • Corporate Procurement Policy
  • Code of Conduct
  • Anti-Corruption policy
  • Environmental clauses in contracts

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme climatic events
Transition Risks
  • Changes in regulatory frameworks governing emissions
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: IEnvA (IATA Environmental Assessment)

Third-party Assurance: Deloitte

Awards & Recognition

  • Dow Jones Sustainability World Index (3 consecutive years)
  • World Airline Awards – Skytrax 2016
  • Global Traveler’s 2016 awards
  • Alas20 Award – Sustainable leaders
  • Socially Responsible Company – Peru 2021
  • Capital magazine – Chile
  • Corporate Transparency Report – Business Intelligence (IdN) – Chile
  • Most Admired Companies in 2016 Peru (EMA 2016)
  • Merco Companies and Merco Leaders – Chile
  • IF Design Awards
  • eCommerce Awards 2015
  • Folha Top of Mind – Brazil