Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Responsibility
• Social Responsibility
• Environmental Responsibility

Environmental Achievements

• Reduced emissions by 22% per seat from 1999 to 2009
• Reduced fuel consumption by 2.5% from summer 2008 to summer 2009 through weight optimization and refueling strategies.
• Implemented Continuous Descent Approach (CDA), saving around 5 million kg of fuel per year.

Social Achievements

• Improved employee wellbeing, with decreased sickness absence.
• Launched several wellbeing projects in different business units (e.g., Finnair Technical Services’ Future Factors, Finnair Catering’s Lessons into Everyday Actions).
• Supported UNICEF's Clean Water and Environment for the Children of India program through Change for Good campaign.

Governance Achievements

• Nearly doubled its score in the Carbon Disclosure Project (CDP), ranking among the best airlines.
• Adherence to internationally accepted ethical principles and financial reporting standards.

Climate Goals & Targets

Environmental Challenges

• Global recession impacting demand and profitability.
• Difficult decisions regarding adjustment measures, leading to industrial action.
• Climate change debate and the need to reduce emissions.

Mitigation Strategies

• Implemented adjustment measures, including redundancies, with focus on 'soft' means.
• Fleet modernization to reduce fuel consumption and emissions.
• Active participation in developing international agreements on emissions trading.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ethical principles for suppliers
• Compliance with UN Universal Declaration of Human Rights and local legislation.

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons affecting flight schedules

Transition Risks

• Economic and legislative changes
• Restrictions on flying

Opportunities

• Development of biofuels
• Improved air traffic management

Reporting Standards

Frameworks Used: GRI G3 Guidelines

Certifications: ISO 14001 (Finnair Catering)

Third-party Assurance: pricewaterhouseCoopers Oy (application level checked)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Several awards for publications, commercials, and website design.
• Four stars from Skytrax.
• Award for best proposal to reduce aircraft maintenance costs.

Environmental Metrics

ESG Focus Areas

• Cleaner
• Caring
• Collaborative

Environmental Achievements

• Reduced emissions by 20% per revenue tonne kilometre from 2009-2017.
• Decreased energy usage in facilities by 5.6%
• Implemented new vertical flight optimisation software (PACE) in A350 fleet, resulting in fuel and CO2 emission reductions.
• Replaced milk jiggers with carton-packed Finnish milk, reducing waste by 5.0 tonnes and plastic waste by 10.0 tonnes annually.
• Removed plastic wrapping around renewed amenity kits, reducing plastic waste by 10.0 tonnes annually.

Social Achievements

• Launched ePassi Sport benefit for employees in Finland.
• Published occupational safety policy and introduced a mobile application for reporting safety observations.
• Implemented Workability Management System.
• Launched a program of internal conciliators to improve working atmosphere.
• Introduced e-learning on harmonious workplace for all employees.
• Introduced a new summer camp concept for childcare.
• Renewed Equality and Non-discrimination plan.
• Executed an extensive internal safety campaign.
• Improved Net Promoter Score (customer satisfaction) to 48.

Governance Achievements

• Renewed Finnair Ethics Helpline to increase transparency and effectiveness of incident reporting. New Whistleblowing system launched in Q1 2019.
• Signed IATA Resolution against modern slavery and human trafficking.

Climate Goals & Targets

Environmental Challenges

• CO2 emissions from flight operations increased by 11.7% due to traffic growth and operational challenges.
• Volume of waste increased by approximately 9.1% due to traffic growth.

Mitigation Strategies

• Continued fleet renewal with fuel-efficient Airbus A350 XWB aircraft.
• Ongoing fuel conservation program.
• Implemented PACE software for flight optimization.
• Adjusted standard water uplift volume, saving 100 tonnes of fuel annually.
• Improved efficiency of loading ULDs, saving fuel by about 200 tonnes annually.
• Introduced digital newspapers and magazines on flights.
• Re-configuration of narrow-body fleet resulted in weight savings.
• Finnair Facilities Management joined a nationwide energy efficiency agreement.

Supply Chain Management

Supplier Audits: Over 80 key suppliers using SEDEX self-assessment.

Responsible Procurement

• Finnair Code of Conduct
• Supplier Code of Conduct
• Responsible Sourcing Manual
• Human rights assessments
• SEDEX system

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather phenomena that could restrict or prevent aviation in some regions.

Transition Risks

• Fluctuations in jet fuel prices; costs of market-based emission reduction schemes.

Opportunities

• Development of energy-efficient products and services; use of biofuels.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: IATA Environmental Assessment (IEnvA) Stage 2

Third-party Assurance: PricewaterhouseCoopers Accountants N.V.

Awards & Recognition

• Universum: Most attractive employer for business students.

Environmental Metrics

ESG Focus Areas

• Energy Consumption and Greenhouse Gas (GHG) Emissions
• Biodiversity Aspects
• Community Impact
• Employee Experience
• Consumer Experience
• Supply Chain Management
• Business Conduct
• Aircraft Noise
• Circular Economics
• Climate Change Adaptation

Environmental Achievements

• Finnair’s own non-flight operations (Scope 1 & 2) at Helsinki-Vantaa are carbon neutral from the beginning of 2023.
• Reduced its own business travel emissions by 10% through SAF.
• Used approximately 2,266 tons of SAF, which constituted about 0.2 per cent of the total kerosene consumption.
• Total of 2,435 solar panels were installed on the roofs of Cargo and Hangar buildings.
• Recycling rate at Helsinki hub was 26.7 per cent (26.1) improving by 2.3 per cent and meeting the company’s annual target of 25 per cent.
• Since July 2023, thanks to a process to reuse cabin and ground crew uniforms, the material required for staff uniforms was reduced by 10 per cent during the first six months.
• Measures to optimise the number of meals loaded per flight prevented the production, loading, and disposal of 9,000 unused meals in 2023.

Social Achievements

• Improved dialogue between personnel groups and employee consultation and involvement through pulse surveys.
• Launched diversity training in parts of the organisation.
• Attrition rate for the last 12 months was 3.8 per cent (7.3).
• L TIF (Lost Time Incident Frequency) decreased year-on-year and was 5.5 (6.8).
• The number of absences due to illness was lower than in the comparison period and was 4.6 per cent (5.4).

Governance Achievements

• No material incident of material misconduct was reported through the Finnair Ethics Helpline nor were there any such investigations ongoing in the company.

Climate Goals & Targets

Environmental Challenges

• The closure of Russian airspace to EU carriers clearly affected Finnair’s traffic to Asia.
• The impacts of inflation and rising interest rates on demand and costs remain elevated, causing uncertainty in the operating environment.
• The prevailing situation in the Middle East causes uncertainty in the operating environment.
• Risks related to the impacts of inflation and rising interest rates on demand and costs remain elevated, causing uncertainty in the operating environment.
• International conflicts and global political instability also cause uncertainty in the operating environment.

Mitigation Strategies

• Finnair has re-balanced its network with an emphasis on the West and the Middle East and optimised its European network and traffic structure to increase efficiency.
• Through the Qantas wet and dry lease agreements and the cooperation with Qatar Airways, Finnair will be able to productively deploy its A330 fleet despite the closure of Russian airspace.
• Finnair continued its cost efficiency initiatives during 2023.
• The purchase of six previously leased A321 aircraft will have an annual positive impact of more than 20 million euros on both profit before taxes and cash flow over the next few years.
• The additional pension premium loan repayment of 120 million euros during Q4 will have a positive impact on profit before taxes amounting to approximately 3 million euros in 2024 in the form of lower net interest costs.
• Finnair carried out a rights issue of 570 million euros to strengthen its balance sheet and financial position.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (SCoC)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• EU’s ‘‘Fit for 55’’ legislative package (reform of emissions trading, mixing quota for sustainable aviation fuel, kerosene tax).

Opportunities

• Increased use of SAF

Reporting Standards

Frameworks Used: ESRS, SBTi

Certifications: United for Wildlife

Awards & Recognition

• Best airline in Northern Europe for the 13th consecutive time in the Skytrax customer survey
• Five-star airline in the Airline Passenger Experience Association (APEX) airline evaluation in 2023