Climate Change Data

Environmental Metrics

ESG Focus Areas

• Performance
• People
• Planet

Environmental Achievements

• Reduced jet fuel consumption by 8.5 million gallons through various initiatives (winglets, ground idle speed reduction, gate electrification, improved flight efficiencies, engine wash program)
• Converted 1,014 pieces of ground support equipment to cleaner-burning technologies
• Recycled 250 tons of electronics, 5,616 cubic yards of landfill space, 11,000 fluorescent bulbs, and 210,000 pounds of batteries
• Reduced CO2e emissions by 82,210 metric tons
• Launched a more robust onboard recycling program
• Purchased more than 15 million kilowatt-hours of wind power

Social Achievements

• Donated more than $11.6 million and over 45,000 employee volunteer hours to charities
• Launched EarlyBird Check-In, P.A.W.S. (Pets Are Welcome on Southwest), and an Unaccompanied Minor service charge, generating over $20 million in incremental revenue
• Improved baggage tracking, social media presence, and added email and call-back features to customer support
• Maintained industry-leading low customer complaint ratio and second-best on-time performance this decade
• Southwest Airlines Employee Catastrophic Assistance Charity (SWAECAC) distributed $10 million in employee contributions to coworkers in need

Governance Achievements

• Achieved 37th consecutive year of profitability
• Complied with the Global Reporting Initiative (GRI) C+ application level, third-party verified for completeness and accuracy

Climate Goals & Targets

Environmental Challenges

• Turbulence of the “Great Recession” leading to restricted travel and reduced discretionary spending
• Decline in business travel and full-fare ticket purchases
• Volatile fuel prices

Mitigation Strategies

• Cutting approximately 10 percent of flights and reallocating to new markets
• Implementing strategic technology enhancements
• Introducing new revenue-generating programs (EarlyBird Check-In, P.A.W.S., Unaccompanied Minor service charge)
• Trimming costs through a voluntary early retirement program, salary freezes, and avoiding fleet growth
• Managing fuel hedge portfolio

Supply Chain Management

Responsible Procurement

• Partnership with Reliant Energy for renewable energy
• Partnership with Republic Services, Inc. for onboard recycling

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Burns & McDonnell

Sustainable Products & Innovation

• LIFT coffee in eco-friendly cups

Awards & Recognition

• EPA’s Fortune 500 Green Power Partnership list (rank 33)
• Newsweek’s Green Ranking of 500 largest publicly traded companies (rank 179)
• Zagat survey awards for green operations, customer service, and baggage policy

Environmental Metrics

ESG Focus Areas

• Performance
• People
• Planet

Environmental Achievements

• 65 percent improvement in 2010 over the amount of paper, plastic, aluminum, and cardboard recycled in 2009
• Met commitment by purchasing more than 15.7 million kilowatt-hours of wind power
• Saved more than 570,000 gallons of fuel and reduced emissions by approximately 5,700 metric tons of carbon dioxide equivalent through the use of electric ground support equipment

Social Achievements

• Donated more than $13.9 million to communities
• Employees volunteered more than 80,000 hours
• Achieved the highest industry Customer satisfaction rating
• Launched inflight Internet connectivity
• Launched international connecting itineraries through Volaris

Governance Achievements

• More than 37,000 Employees and contractors certified receipt of code of ethics and insider trading policy
• More than 750 individuals received and completed a mandatory questionnaire regarding the Foreign Corrupt Practices Act (FCPA)

Climate Goals & Targets

Environmental Challenges

• Escalating fuel prices
• Fragile domestic economy
• Volatile fuel prices

Mitigation Strategies

• Cost containment efforts
• Fuel hedging program
• Network optimization
• Revenue management enhancements

Supply Chain Management

Responsible Procurement

• Green procurement survey

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Burns & McDonnell Engineering Inc.

Sustainable Products & Innovation

• Green Plane materials
• Compostable containers and biodegradable utensils in The Landing

Awards & Recognition

• PR News Annual Report Winner
• FORTUNE magazine's World's Most Admired Companies
• Energy Star Label for Headquarters
• Many other awards listed in the report

Environmental Metrics

ESG Focus Areas

• Economic Performance
• People
• Planet

Environmental Achievements

• Improved jet fuel efficiency by 30.6% on a revenue ton mile (RTM) basis since 2005
• Saved more than 25 million gallons of fuel in 2016 through refined fuel planning
• Saved over 300,000 gallons of fuel per year by reducing idling of provisioning vehicles
• Improved CO2e intensity ratios for the fifth straight year
• Replaced 89% of eligible equipment at Phoenix Sky Harbor airport with electric equipment
• Recycled or repurposed 35% of waste in 2016
• Diverted 3,348 tons of waste from landfills in 2016

Social Achievements

• Employees earned $586 million in profit sharing for 2016
• 85% of Employees surveyed said they are proud to work for Southwest
• Nearly 2 million hours spent in training and education programs by Employees
• Gave more than $25 million in monetary, in-kind, and ticket donations to nonprofit organizations
• Lowest number of Customer complaints (0.47 per 100,000 enplanements) as reported by the U.S. Department of Transportation
• External Customer commendations increased by 19% in 2016

Governance Achievements

• Maintained investment grade credit ratings from all three credit rating agencies
• Returned nearly $2 billion to shareholders through dividends and share repurchases
• More than 59,000 Employees and business associates certified receipt of Code of Ethics and Insider Trading policy

Climate Goals & Targets

Environmental Challenges

• Significant low fare competition and industry domestic capacity growth outpacing sluggish economic growth
• Technology outage that disrupted operations for three days
• Potential risks associated with climate change (regulatory change and extreme weather events)

Mitigation Strategies

• Fuel hedging program to mitigate risk associated with fuel price volatility
• Honest, transparent, quick, genuine, progressive, and omni-channel communication during technology outage
• Investment in fuel efficiency improvements ($565 million since 2002), including winglets, engine upgrades, and electronic flight bags
• Electrification project at Phoenix Sky Harbor Airport to reduce emissions

Supply Chain Management

Responsible Procurement

• Thorough procurement policy including sections on green procurement and human rights

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes

Opportunities

• Fuel efficiency improvements

Reporting Standards

Frameworks Used: GRI G4 Guidelines

Awards & Recognition

• Airline Program of the Year
• #1 Best Employer
• Domestic Carrier of the Year
• Best Low Cost Carrier in North America
• #30 100 Best Corporate Citizens
• Most Valuable Employer for military
• #8 Most Admired Companies in the World

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability

Environmental Achievements

• 1450+ electric-powered ground service vehicles in service
• 100% of corporate campus electricity use from renewable sources (as of May 2021)
• 22% of total waste recycled during 2021
• Fuel saving initiatives saved an estimated 7.5 million gallons
• Fuel efficiency (ASMs per gallon) increased by 4.6% compared to 2019
• Use of RNP approaches saved more than 750,000 gallons of fuel in 2021
• Jet fuel emissions per ASM reduced 59% since 1971
• Fuel efficiency (ASMs/gallon) improved by 32% in the past twenty years
• 12,893 tons of waste diverted from landfills since 2017
• Boeing 737 MAX 8, the most fuel-efficient aircraft, returned to service in 2021

Social Achievements

• 144,000 pounds of seat covers donated during 2021
• Expanded Repurpose with Purpose program to divert seat leather from landfills

Governance Achievements

• Launched Green Incentive Program for corporate customers
• $10 million commitment to Yale University for carbon capture research
• Joined the Aviation Climate Taskforce (ACT)
• Partnered with National Renewable Energy Laboratory (NREL)

Climate Goals & Targets

Environmental Challenges

• High carbon emissions from aviation

Mitigation Strategies

• Long-term goal to achieve carbon neutrality by 2050
• 10-year plan to maintain 2019 carbon emission levels while growing operations
• Reduce carbon emissions per ASM by at least 20% by 2030 (excluding offsets)
• $10 billion investment in fuel-efficient aircraft over the next decade
• Replace 10% of jet fuel consumption with SAF by 2030
• Partnerships with Neste and Velocys for SAF
• Carbon offset program with loyalty points

Supply Chain Management

Responsible Procurement

• Partnerships for Sustainable Aviation Fuel

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: U.S. Climate Action Plan, CORSIA, A4A targets

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Performance
• Governance

Environmental Achievements

• Reduced carbon emissions intensity by 1.9% compared to 2019 baseline.
• Fuel efficiency initiatives saved an estimated 33+ million gallons, avoiding more than 315,000 metric tons of CO2e.
• Electrified 33% of eligible ground support equipment (GSE).

Social Achievements

• Hired more than 18,000 new Employees in 2022.
• Launched a new Employee recognition platform (SWAG).
• Introduced a Campus Reach Neurodiversity Internship Program.
• Donated more than $4 million in free transportation through the Medical Transportation Grant Program.

Governance Achievements

• Completed a key topics assessment using the revised GRI Universal Standards 2021.
• Published a robust SAF policy.
• Ratified new agreements with several unions.
• Implemented a plan to increase winter operational resiliency after Winter Storm Elliott.

Climate Goals & Targets

Environmental Challenges

• Operational disruptions in December 2022 resulting in more than 16,700 flight cancellations.
• Supply chain disruptions impacting onboard service products and Employee uniforms.
• Higher fuel prices and cost inflation.
• Scaling challenges in the SAF market.

Mitigation Strategies

• Internal and third-party assessments to improve operational resiliency.
• Data-driven analyses on current and prospective suppliers.
• Fuel-saving initiatives and fleet modernization.
• Investments in SAFFiRE Renewables, LLC and offtake agreements with SAF producers.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Diversity Program
• Supplier Code of Conduct
• Sustainability questions in RFPs

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (winter storms, tropical storms)
• Coastal flooding
• Drought
• Heat waves
• Inland flooding
• Wildfires

Transition Risks

• Changing Customer behavior
• Increased cost of raw materials
• Policy and legal risks
• Reputation risks
• Technology risks

Opportunities

• Use of SAF
• More fuel-efficient technologies
• Low-carbon airline branding

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UN SDGs

Certifications: LEED (Denver hangar)

Third-party Assurance: Third-party assurance for greenhouse gas inventory

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 10
• Goal 11
• Goal 12
• Goal 13

Initiatives contribute to these goals through community outreach, employee wellbeing programs, training and education, supplier diversity, and climate action.

Sustainable Products & Innovation

• Possibilities Take Flight collection of sustainable travel bags (partnership with Unshattered).

Awards & Recognition

• 2022 Aviation Award from Port of Seattle
• America's Most Responsible Company
• Best Place To Work For LGBTQ+ Equality
• Military Friendly Company

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Performance
• Governance

Environmental Achievements

• Launched Nonstop to Net Zero: Southwest’s path toward net zero carbon emissions by 2050, including three new operational environmental sustainability goals
• Recycled more than 880,000 lbs of material from retired aircraft
• 37% electric GSE systemwide
• Secured SAF gallons through offtake agreements projected to replace 2% of our fuel in 2030

Social Achievements

• Launched seven ERGs
• Introduced Southwest Learning Summit, an all-virtual development opportunity
• Expanded our work with Repurpose with Purpose partners
• Invested more than $1.7 billion in Employee benefits, excluding Company contributions to 401(k) and ProfitSharing Plans
• Invested $10 million to realign Noncontract Employee wages with changing market rates

Governance Achievements

• Launched our Code of Conduct
• Began partnering with EcoVadis to assess our top 200 suppliers (based on spend)
• Expanded our annual Cybersecurity Awareness Training requirement to all Employees
• Collaborated on strategic ESG initiatives with our ESG Executive Steering Group

Climate Goals & Targets

Environmental Challenges

• Cost pressures, particularly from higher labor costs and maintenance expenses
• Supply chain disruptions
• Climate-related risks (extreme weather events)

Mitigation Strategies

• Comprehensive winter action plan
• Enhanced cross-team collaboration
• Accelerated operational investments (upgraded tools and technology)
• Fleet modernization (more fuel-efficient aircraft)
• SAF strategy (offtake agreements, investments)
• Risk management processes (ERM, Emergency Response, Business Continuity)

Supply Chain Management

Supplier Audits: Top 200 suppliers assessed using EcoVadis

Responsible Procurement

• Supplier Code of Conduct
• Sustainability questions in RFP process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (winter storms, tropical storms, inland flooding, coastal flooding, heat waves, wildfires)
• Drought

Transition Risks

• Increased cost of raw materials
• Changing Customer behavior
• Enhanced emissions and climate reporting obligations
• Mandates on and regulation of existing products and services
• Increased Stakeholder concern or negative Stakeholder feedback
• SAF value chain risks
• Transitioning to lower emissions aircraft technology

Opportunities

• Use of SAF
• Low-carbon airline and less carbon intensive products and services
• Use of more fuel-efficient technologies for fleet and operations
• Use of more efficient modes of transport

Reporting Standards

Frameworks Used: GRI Universal Standards 2021, SASB, TCFD, UN SDGs

Certifications: Null

Third-party Assurance: Third-party assurance provider for GHG emissions (reasonable assurance)

UN Sustainable Development Goals

• 3
• 4
• 5
• 8
• 10
• 11
• 12
• 13

Southwest's initiatives contribute to these goals through various programs and policies related to employee well-being, education, diversity and inclusion, economic impact, community engagement, waste reduction, and climate action.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• America’s Most Responsible Companies
• America’s Greatest Workplaces for Diversity
• Fortune World’s Most Admired Companies
• SEAL Business Awards