Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic performance
• Contribution to the community
• Developing the human resource
• Employee health & safety
• Employment diversity and equal opportunities
• Employment and work environment
• Employee rights & welfare
• Service and customer satisfaction
• On-Time Performance
• Passenger health & safety
• Reduction of greenhouse gas emissions
• Energy consumption – electricity and fuel
• Water and sewage
• Waste management
• Corporate governance
• Business ethics

Environmental Achievements

• Reduced GHG emissions by implementing measures such as changing cruising altitude criteria for 737 aircraft, changing post-landing procedures for 747 aircraft, and changing taxiing procedures for 747 aircraft, resulting in a reduction of 8,615 GHG tons (CO2e).

Social Achievements

• Increased employee volunteerism by 55% (7.36% of employees volunteered, contributing over 10,000 hours).
• Launched the "Cockpit" startup incubator, winning the APEX Award.
• Improved on-time performance from 74% in 2014 to 76% in 2015.
• Implemented a new paid service, "Premium Check-In", allowing passengers to complete security checks and luggage drop-off from home.
• Launched "EL AL 2 Door" service for cargo deliveries directly to customer's door.
• Operated "ELALCHIK" flights with children's activities.
• Increased online ticket sales by 37%.

Governance Achievements

• Implemented an internal enforcement plan to ensure compliance with the Securities Law and Corporate Law.
• Established a Care Team to assist families of passengers during crises.
• Achieved a "Platinum" rating in the Maala Index for corporate responsibility.

Climate Goals & Targets

Environmental Challenges

• Intensifying competition in the aviation sector.
• Fluctuations in fuel prices.
• Growth of metropolises and commerce centers creating new flight destinations.
• Development of new business models in the sector.
• Establishment of low-cost airlines.
• Geopolitical impacts influencing indirect flights and passenger traffic (e.g., Operation Protective Edge).
• Increased electricity consumption due to higher temperatures and aging equipment.

Mitigation Strategies

• Established the "UP" low-cost brand.
• Finalized the largest aircraft procurement transaction in company history (Dreamliner aircraft).
• Reinforced flight offerings during Operation Protective Edge.
• Implemented energy efficiency projects, such as improving cooling systems.

Supply Chain Management

Supplier Audits: Random meetings with contractors' employees to examine wage data and employment conditions.

Responsible Procurement

• Tender process for fuel suppliers.
• Contracts with fuel supplying companies.
• Contracts with companies performing fueling services.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO:9000-2008 (Tamam), HACCP (USDA, EEC) (Tamam), GMP (Tamam)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• APEX Award for "Cockpit" initiative
• Top 20 international airlines by Condé Nast Traveler
• Superbrand in leisure, recreation, and culture
• First place in customer satisfaction survey by Yediot Ahronot
• Freddie Awards for Matmid frequent flyer club

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced GHG emission intensity from 929 gCO2e/RTK in 2021 to 914 gCO2e/RTK in 2022.
• Operates more than 30 fully electric cars and 21 hybrid cars.

Social Achievements

• Received the APEX Luxury Service Award for the third consecutive year with a five-star rating.
• 97% of employees are covered by collective bargaining agreements.
• 41% female employees (including CEO).

Governance Achievements

• Established a Safety Committee.
• Appointed a female external director.
• Updated Code of Ethics.

Climate Goals & Targets

Environmental Challenges

• Climate-related risks, including extreme weather events and rising fuel expenses.
• Decarbonization challenges in the aviation industry.

Mitigation Strategies

• Purchase of newer and modern aircraft with fuel-efficient engines.
• Installation of winglets on specific aircraft.
• Usage of flight planning system to optimize route selection.
• Participation in the European Union's Emission Trading Scheme and ICAO CORSIA plan.
• Planned fleet renewal initiative for narrow-body aircraft starting in 2026.
• Planned implementation of a fuel analytics system in 2024.

Supply Chain Management

Responsible Procurement

• Preference for sustainable procurement practices.
• Human rights integration into supplier agreements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Rising fuel expenses

Opportunities

• Sustainable Aviation Fuel (SAF) usage

Reporting Standards

Frameworks Used: GRI

Certifications: IOSA

Awards & Recognition

• APEX Five Star Award (three consecutive years)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Signed the IEnvA (IATA Environmental Assessment) agreement with IATA and began implementing actions and initiatives to contribute to environmental sustainability.
• Achieved a Platinum rating in the Maala ESG rating.

Social Achievements

• Received the highest APEX service rating of five stars for the third consecutive year.
• Launched an Employee Engagement Survey to assess organizational sentiments, internal communication, well-being, and developmental aspects.
• Approved the Company's Donations and Community Involvement Policy.

Governance Achievements

• Renewed the code of ethics, aligning with core values.
• Strengthened gender diversity on the Board of Directors by appointing an additional female director.
• Appointed a dedicated risk management coordinator and began implementing an Enterprise Risk Management framework.

Climate Goals & Targets

Environmental Challenges

• Ensuring continuous aviation operations to and from Israel despite 13% of employees being called up for reserve duty during the "Iron Swords" war.
• Route changes due to the "Iron Swords" war resulting in longer flights and higher fuel consumption.

Mitigation Strategies

• Added approximately 150 flights and operated special rescue flights to bring citizens back to Israel.
• Expanded cargo operations, transporting over 37,200 tons of cargo.
• Adjusted flight operations, including suspending flights over Omani airspace and halting seasonal flights.
• Implemented comprehensive support measures for employees, including psychological guidance sessions.

Supply Chain Management

Responsible Procurement

• Preference for sustainable procurement practices
• Integration of human rights into supplier agreements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Rising fuel expenses
• Regulatory changes

Opportunities

• Fleet renewal initiative
• Implementation of a fuel analytics system
• Development of sustainable aviation fuel (SAF)

Reporting Standards

Frameworks Used: GRI 2021

Awards & Recognition

• APEX Five Star Luxury Service Award (three consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability

Social Achievements

• Strengthened frequent flyer program with close to 3.1 million members and expanding partnerships with other airlines' loyalty programs.

Governance Achievements

• Raised capital by issuing a package including stock and option warrants for a total of NIS 511 million (approximately $140 million).

Climate Goals & Targets

Environmental Challenges

• Complex market conditions and uncertainty due to the Iron Swords War.
• Cancellation of flights by foreign airlines.
• High demand for flights exceeding supply.

Mitigation Strategies

• Adding new flights and increasing seats on existing flights, focusing on Athens and Larnaca.
• Cutting prices and introducing a flexible cancellation policy.
• Expanding flight schedule, adapting aircraft operation model, and diverting to high-demand destinations.
• Continuing to expand cargo operations.

Supply Chain Management

Climate-Related Risks & Opportunities