Alaska Air Group, Inc.
Climate Impact & Sustainability Data (2023, 2023-01 to 2023-12)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:7,565,867 tCO2e/year
Scope 1 Emissions:7,536,154 tCO2e/year
Scope 2 Emissions:20,873 tCO2e/year
Scope 3 Emissions:2,674,374 tCO2e/year
Renewable Energy Share:0.07%
Total Energy Consumption:30,346,749 MWh/year
Water Consumption:18,141,896 gallons/year
Waste Generated:Not disclosed
Carbon Intensity:1,205 kg CO2e per thousand RTM
ESG Focus Areas
- Safety
- Environment
- People
- Communities
- Governance
Environmental Achievements
- Improved fuel efficiency by 9% over 2022, achieving 1,333 kg CO2/’000 RTM.
- Reduced ground service equipment (GSE) fleet emissions average by 14.6% from baseline.
- Became the first U.S. airline to deliver a plastic-free beverage service onboard.
- Balanced 100% of Alaska and Horizon water consumption through supporting local habitat restoration projects.
- Increased inflight recycling rate from 41% in 2022 to 63% in 2023.
Social Achievements
- Achieved a score of 100 on the Human Rights Campaign Foundation’s 2023–2024 Corporate Equality Index.
- Received a top-score of 100 for the second year in a row in Disability:IN’s Disability Equality Index.
- Increased employee community engagement from 11% in 2021 to 16.8% in 2023.
- Expanded partnerships with companies looking to reduce the carbon impact of their business travel through shared investment in SAF.
- Launched a first-of-its-kind option for individual guests to support SAF and earn elite-qualifying miles (EQMs).
Governance Achievements
- Maintained a strong balance sheet with net leverage below the long-term target of 1.5x for the second year in a row.
- Continued advocacy on sustainable aviation fuel (SAF) policies.
- 99% of active employees completed the 2023 Annual Compliance Training.
Climate Goals & Targets
Long-term Goals:
- Net zero carbon emissions by 2040
Medium-term Goals:
- Leadership representation: 30% BIPOC representation for directors and above
- Inclusive culture: Improve performance as measured by inclusion index of metrics from all-employee survey by 10 points
- Maintain at least 85% Alaska and Horizon employees full-time v. part-time
- Impact at least 175,000 young people around career pathways with a focus on advancing racial equity
Short-term Goals:
- Increase employee safety reporting by 10% or 2,095 safety reports/10,000 departures
- Maintain safety’s high priority among employees
- Sustain a robust process for best practice crisis response
- Minimize and optimize packaging for five inflight food & beverage items
- Inflight recycling sorting performance at 2019 level
Environmental Challenges
- Supply chain issues impacting the reduction of GSE fleet emissions.
- Limited availability and high cost of sustainable aviation fuel (SAF).
- Need for broader public and private investment and action to commercialize SAF technologies at scale.
Mitigation Strategies
- Developing alternative sourcing strategies for GSE.
- Expanding partnerships with SAF producers and engaging customers to support SAF.
- Advocating for public policies to scale and mature the SAF market.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier Code of Conduct
- Sustainability-related inquiries in RFPs
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Wildfires
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Development of energy-efficient products
- Sustainable aviation fuel (SAF)
Reporting Standards
Frameworks Used: TCFD, SASB
Certifications: Null
Third-party Assurance: SCS Global Services
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Boxed Water™, responsibly sourced paper cups
Awards & Recognition
- Forbes America’s Best Employers for Diversity 2023
- Forbes America’s Best Employers for Women 2023
- Human Rights Campaign Foundation’s 2023–2024 Corporate Equality Index
- NerdWallet’s 2023 winner for Best Airline Rewards Program
- Newsweek America’s Best Customer Service 2023
- U.S. News 2023–24 Best Airline Rewards Program
Reporting Period: 2023-01 to 2023-12
Environmental Metrics
Total Carbon Emissions:7,565,867 tCO2e/year
Scope 1 Emissions:7,536,154 tCO2e/year
Scope 2 Emissions:20,873 tCO2e/year
Scope 3 Emissions:2,674,374 tCO2e/year
Renewable Energy Share:0.07%
Total Energy Consumption:30,346,749 MWh/year
Water Consumption:18,141,896 gallons/year
Waste Generated:Not disclosed
Carbon Intensity:1,205 kg CO2e per thousand RTM
ESG Focus Areas
- Safety
- Environment
- People
- Communities
- Governance
Environmental Achievements
- Improved fuel efficiency by 9% over 2022, achieving 1,333 kg CO2/’000 RTM.
- Reduced ground service equipment (GSE) fleet emissions average by 14.6% from baseline.
- Became the first U.S. airline to deliver a plastic-free beverage service onboard.
- Balanced 100% of Alaska and Horizon water consumption through supporting local habitat restoration projects.
- Increased inflight recycling rate from 41% in 2022 to 63% in 2023.
Social Achievements
- Achieved a score of 100 on the Human Rights Campaign Foundation’s 2023–2024 Corporate Equality Index.
- Received a top-score of 100 for the second year in a row in Disability:IN’s Disability Equality Index.
- Increased diverse supplier spend by 17% to over $300 million.
- 16.8% of employees engaged in the community annually; increased engagement from 2022 by 4.8%.
Governance Achievements
- Maintained a strong balance sheet with net leverage below the long-term target of 1.5x for the second year in a row.
- 99% of active employees completed the 2023 Annual Compliance Training.
- Compliant with political contributions policy.
Climate Goals & Targets
Long-term Goals:
- Net zero carbon emissions by 2040
Medium-term Goals:
- Be the most fuel-efficient U.S. airline
- Reduce ground service equipment (GSE) fleet emissions average by 50% per unit
- Carbon neutral growth through 2025
Short-term Goals:
- Increase employee safety reporting by 10% or 2,095 safety reports/10,000 departures
- Maintain safety’s high priority among employees
- Sustain a robust process for best practice crisis response
- Minimize and optimize packaging for five inflight food & beverage items
- Inflight recycling sorting performance at 2019 level
- Leadership representation: 30% BIPOC representation for directors and above
- Inclusive culture: Improve performance as measured by inclusion index of metrics from all-employee survey by 10 points
- Maintain at least 85% Alaska and Horizon employees full-time v. part-time
- Impact at least 175,000 young people around career pathways with a focus on advancing racial equity
- Continue to execute against the Information Security roadmap for program maturation, including for aircraft cybersecurity requirements
- Publicly report political contributions consistent with our policy
- Engage on policy related to sustainability priorities: climate change and racial equity
- Maintain our commitment to strong balance sheet and financial performance
- All employees receive annual privacy and data security training
Environmental Challenges
- Supply chain issues impacting GSE fleet emissions reduction.
- Insufficient availability and high cost of sustainable aviation fuel (SAF).
- Potential delays in government action on SAF policies.
Mitigation Strategies
- Expanded SAF supply through partnerships with Neste and Shell Aviation.
- Partnered with Twelve for SAF production using recaptured CO2.
- Advocating for public policies to scale the SAF market.
- Engaging customers to support SAF through various programs.
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier Code of Conduct
- Sustainability-related inquiries in RFPs
- Supplier Diversity program
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather
- Wildfires
Transition Risks
- Regulatory changes
- Market shifts
- SAF supply and cost challenges
Opportunities
- SAF adoption
- Electrified aircraft technologies
- Operational efficiency improvements
Reporting Standards
Frameworks Used: TCFD, SASB
Certifications: Null
Third-party Assurance: SCS Global Services
UN Sustainable Development Goals
- Not disclosed
Not disclosed
Sustainable Products & Innovation
- Boxed Water™, responsibly sourced paper cups
Awards & Recognition
- Forbes America’s Best Employers for Diversity 2023
- Forbes America’s Best Employers for Women 2023
- Human Rights Campaign Foundation’s 2023–2024 Corporate Equality Index (100)
- Disability:IN’s Disability Equality Index (100)