Climate Change Data

Heathrow Airport Holdings Limited

Climate Impact & Sustainability Data (2019, 2021, 2022, 2023)

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:2,089,141 tCO2e (2018)
Scope 1 Emissions:26,246 tCO2e (2018)
Scope 2 Emissions:79,921 tCO2e (2018)
Scope 3 Emissions:2,062,895 tCO2e (2018)
Renewable Energy Share:100% (renewable electricity)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Community Engagement
  • Sustainable Growth
  • Supply Chain Responsibility

Environmental Achievements

  • Became carbon-neutral for airport infrastructure in January 2020 by offsetting 2018 emissions.
  • Launched Way2Go, a colleague initiative to reduce car use.
  • Announced the world’s first airport Ultra Low Emission Zone (ULEZ) to be introduced in 2022.
  • Continued reduction in overall noise levels.

Social Achievements

  • 1,093 apprenticeships started in 2019 (exceeding target).
  • Increased percentage of women in senior management to 35% and BAME representation to 17%.
  • Raised awareness of neuro-developmental conditions.
  • 64 out of 108 contracts amended to ensure supply chain workers receive the London Living Wage.

Governance Achievements

  • Heathrow 2.0 sustainability strategy launched and integrated into business strategy.
  • Regular reporting on sustainability performance and risks to the HAHL Board.
  • Quarterly discussions of sustainability issues at the Sustainability and Operational Risk Committee.

Climate Goals & Targets

Long-term Goals:
  • Achieve net-zero emissions by 2050 (airport infrastructure).
Medium-term Goals:
  • Operate zero-carbon airport infrastructure by the mid-2030s.
  • Achieve 50% of airport passenger journeys made by public transport by 2030.
Short-term Goals:
  • Halve the number of late-running flights after 23:30 by 2022.
  • Transition all direct supply-chain colleagues to London Living Wage by end of 2020.

Environmental Challenges

  • Capacity constraints at the airport.
  • Climate change and carbon emissions.
  • Noise pollution and its impact on local communities.
  • Air quality around the airport.
  • Legal challenges to airport expansion.
Mitigation Strategies
  • Investment in infrastructure improvements and expansion plans.
  • Heathrow 2.0 sustainability strategy with ambitious targets.
  • Incentives for quieter and cleaner aircraft.
  • Introduction of ULEZ and plans for a Vehicle Access Charge.
  • Engagement with local communities and stakeholders.
  • Appealing the Court of Appeal ruling on the Airports National Policy Statement.

Supply Chain Management

Supplier Audits: 64 out of 108 contracts updated to ensure London Living Wage.

Responsible Procurement
  • London Living Wage commitment
  • Removal of zero-hours contracts

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events damaging property and disrupting operations.
  • Changes to flight routes and destination demand due to climate change.
Transition Risks
  • Adoption of new technologies and alternative fuels.
  • Reduced demand for air travel due to changing customer sentiment.
  • Carbon policies and regulations impacting ticket pricing and airport growth.
  • Reputational risks from climate impacts.
Opportunities
  • Leadership in decarbonisation efforts attracting passengers and investors.

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: Deloitte LLP

Sustainable Products & Innovation

  • Trial of technology to convert plastic waste into fuel.

Awards & Recognition

  • edie’s 2019 Mission Possible: Sustainable Business of the Year Award

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:8,154,578 tCO2e
Scope 1 Emissions:29,091 tCO2e
Scope 2 Emissions:49,066 tCO2e
Scope 3 Emissions:8,125,487 tCO2e
Renewable Energy Share:1.60%
Total Energy Consumption:231,082 MWh
Water Consumption:1,180,354 m3
Waste Generated:8,009 tons
Carbon Intensity:1.50 kg CO2e/passenger

ESG Focus Areas

  • Net zero aviation
  • A great place to live and work
  • Responsible business foundations

Environmental Achievements

  • Total waste generated fell to just over 8,000 tonnes compared to almost 24,000 in 2019.
  • Recycling rate remained stable at just under 50%.
  • First delivery of sustainable aviation fuel into Heathrow’s main fuel supply.
  • Airlines representing 66% of Heathrow’s flights committed to use 10% or more sustainable aviation fuel by 2030.

Social Achievements

  • £315,532 contributed to Heathrow Community Trust to fund 49 projects to improve quality of life for communities near the airport.
  • Launched a new mentoring platform to allow colleagues to easily connect with mentors, with 250 users signed up.
  • 729 local students completed virtual work experience.

Governance Achievements

  • Joan MacNaughton joined the Board as an independent Non-Executive Director and assumed the Chair of the Sustainability and Operational Risk Committee.
  • Heathrow implemented the recommendations of the Taskforce for Climate-related Financial Disclosures (TCFD).

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
Medium-term Goals:
  • Up to 15% cut in carbon compared to 2019 by 2030.
  • At least 45% cut in carbon compared to 2019 by 2030.
  • Maximise suppliers achieving gold standard against our Balanced Scorecard by 2030.
  • Give back to 1 million people in our local communities by 2030.
  • Reflect the diversity of our local community at all levels by 2030.
  • 10,000 external jobs, apprenticeships and early career opportunities by 2030.
Short-term Goals:
  • Reduce NOx airside by 18% compared to 2019 by 2030.
  • Limit and where possible reduce the number of people highly sleep disturbed and highly annoyed compared to 2019 by 2030.

Environmental Challenges

  • The pandemic significantly impacted passenger numbers and resources for sustainability improvements.
  • Progress towards targets on diversity and inclusion and waste was slower than desired.
  • Noise complaints remained a key concern for community groups.
Mitigation Strategies
  • Developed a new Sustainable Travel Zone (STZ) to support colleague sustainable travel and provide better travel options to local communities.
  • Introduced a £5 Terminal Drop Off Charge to encourage a shift from private vehicles to public transport.
  • Continued to drive voluntary initiatives with airlines and NATS to reduce noise impacts.
  • Developed Heathrow’s Balanced Scorecard to track supplier sustainability performance.

Supply Chain Management

Responsible Procurement
  • Heathrow became a Living Wage employer in 2017.
  • Transition of the remaining direct Heathrow supply chain to the LLW on 1st of April 2022 was approved.
  • Heathrow is a partner of the Supply Chain Sustainability School.

Climate-Related Risks & Opportunities

Opportunities
  • Scaling up sustainable aviation fuels (SAF)

Reporting Standards

Frameworks Used: TCFD, Greenhouse Gas Protocol, Airport Carbon Accreditation (ACA)

Certifications: ISO 14001

Third-party Assurance: Bureau Veritas

Awards & Recognition

  • COVID-19 Airport Excellence Award (Skytrax)
  • Four-star COVID-19 Airport Safety Rating (Skytrax)
  • CIRIA Big Biodiversity Challenge Client Award

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:14,764,046 tCO2e/year
Scope 1 Emissions:29,806 tCO2e/year
Scope 2 Emissions:52,717 tCO2e/year
Scope 3 Emissions:14,734,239 tCO2e/year
Carbon Intensity:0.48 kg CO2e/passenger

ESG Focus Areas

  • Net zero aviation
  • A great place to live and work
  • Responsible business foundations

Environmental Achievements

  • Scope 1 and 2 carbon intensity decreased to 0.48 kg CO2e/passenger (2021: 1.50)
  • Over 22,000 tonnes of SAF delivered, with lifecycle carbon savings of at least 70%
  • £38 million incentive scheme to encourage airlines to switch to SAF

Social Achievements

  • Launched Giving Back Programme, aiming to help 1 million local people by 2030
  • Continued support for Heathrow Community Trust, contributing £543,000
  • London Living Wage extension benefiting at least 1,300 colleagues

Governance Achievements

  • Heathrow’s tax strategy approved by the Audit Committee
  • Refreshed directors’ conflicts procedure approved by the HAHL Board
  • ESG Carbon performance metric included in all long-term incentive plans

Climate Goals & Targets

Long-term Goals:
  • Net zero aviation by 2050
Medium-term Goals:
  • Up to 15% cut in carbon compared to 2019 by 2030
  • At least 43% female colleagues at senior levels by 2026
Short-term Goals:
  • Reduce NOx airside by 18% compared to 2019 by 2030
  • At least 45% passengers using public transport by 2026

Environmental Challenges

  • Supply chain disruptions and resource challenges impacting operational capacity
  • Regulatory uncertainty regarding the H7 settlement
  • High inflation and rising energy prices impacting profitability
Mitigation Strategies
  • Established ‘Build Back Capacity’ programme to increase capacity and resilience
  • Engaged with the CAA to address errors in H7 proposals
  • Implemented cost-saving measures and secured additional funding

Supply Chain Management

Responsible Procurement
  • London Living Wage extension
  • Heathrow Business Summits
  • CompeteFor platform

Climate-Related Risks & Opportunities

Physical Risks
  • Increased flood risk
  • Impacts from heatwaves
Transition Risks
  • Government policies limiting aviation demand
  • Carbon pricing mechanisms increasing costs
  • Negative consumer sentiment towards flying
Opportunities
  • Increased market share as consumer concern over climate change increases

Reporting Standards

Frameworks Used: TCFD, GRI, Greenhouse Gas Protocol, Airport Carbon Accreditation

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Bureau Veritas UK Limited

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 8 (Decent work and economic growth)
  • Goal 9 (Industry, innovation and infrastructure)
  • Goal 11 (Sustainable cities and communities)
  • Goal 13 (Climate action)

Awards & Recognition

  • Best airport in Europe (2022 Business Traveller Awards)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:18.77 million tonnes CO2e (2023)
Scope 1 Emissions:32,116 tCO2e (2023)
Scope 2 Emissions:0 tCO2e (2023)
Scope 3 Emissions:18,742,184 tCO2e (2023)
Waste Generated:21,686 tons (2023)
Carbon Intensity:0.4 kg CO2e/passenger (2023)

ESG Focus Areas

  • Net zero aviation
  • Great place to live and work
  • Responsible business foundations

Environmental Achievements

  • 2023 emissions were 17.95 million tonnes carbon dioxide equivalent (‘MtCO2e’), 10% below 2019 levels.
  • 2023 emissions were 0.82 million tonnes carbon dioxide equivalent (‘MtCO2e’), 22% below 2019 levels.
  • First airport to achieve science-based validation from the SBTi for 2030 carbon reduction goals.
  • World’s first commercial 100% SAF powered transatlantic flight departed Heathrow to New York in November.
  • Total waste at the airport reduced to 21,686 tonnes, from 23,934 tonnes in 2019.
  • Over 50% of Heathrow operated vehicles are now electric.

Social Achievements

  • Launched the Giving Back Programme, which will deliver activities to nearly 100,000 local people.
  • 67% of colleagues agreed Heathrow is a great place to work (Mini Pulse survey).
  • 594 colleagues promoted (2022: 576).
  • 2,465 individuals engaged in training and development programmes (2022: 285).
  • Heathrow was announced as the 46th best UK employer by Glassdoor.
  • Delivered and supported over 3,117 employment opportunities in 2023.

Governance Achievements

  • Established the ESG Committee, a new formal sub-committee of our Executive Committee.
  • Sustainability is embedded in our culture and through our governance structures.
  • First airport in the world to launch a Sustainability-Linked Bond.

Climate Goals & Targets

Long-term Goals:
  • Net zero carbon emissions by 2050.
Medium-term Goals:
  • Up to 15% cut in carbon compared to 2019 by 2030 (Net zero in the air).
  • At least 45% cut in carbon compared to 2019 by 2030 (Net zero on the ground).
  • 11% SAF by 2030.
Short-term Goals:
  • Reduce NOx airside by 18% compared to 2019 by 2030.
  • At least 45% passengers using public transport and no more than 57% colleague single occupancy vehicle trip mode share by 2026.
  • By 2026 increase the number of people located within 1.5 hours of Heathrow by public transport by 25%, and within 3 hours by 12%.

Environmental Challenges

  • Challenging H7 settlement from the CAA requiring growth with 20% less revenue.
  • Industrial action in April and May.
  • Delays in SAF supply.
  • High inflation, potential slowdowns in economic growth and pressure on consumer spending.
  • Highest aviation taxes in Europe.
  • Continued absence of VAT Free shopping and lack of competitive parity with EU airports.
  • Climate change remains the most significant mid to long-term risk.
Mitigation Strategies
  • Investments in security lanes, replacing the Terminal 2 baggage system, and carbon emission reduction initiatives.
  • Contingency plans to maintain smooth airport operation during industrial action.
  • Plans for continued growth of SAF to 2.5% in 2024 (£71 million available to airlines).
  • Network Strategy to target new routes and grow market share.
  • Dialogue with officials in the Treasury around VAT free shopping.
  • Net Zero Plan to cut emissions by 2030 and beyond.
  • Strategic carbon delivery programme with £250 million of capital investment.

Supply Chain Management

Responsible Procurement
  • Balanced Scorecard to communicate priorities and standards to strategic suppliers.
  • CompeteFor platform to make contract opportunities visible to SMEs.
  • Lift Off forum for innovative SMEs to present products and services.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased flood risk
  • Extreme hot temperatures
  • Changes to precipitation patterns
  • High intensity rainfall events
  • Adverse weather conditions (rainstorms, high winds)
Transition Risks
  • Market volatility
  • Cost inflation
  • Delays in Government policy and investment in decarbonising the aviation sector
  • Policy measures to limit the demand for aviation
  • Changes in consumer sentiment
Opportunities
  • Leveraging Heathrow’s hub model to maximise economic value.
  • Maximising technologies that have the least impact to airport infrastructure, such as SAF.
  • Demonstrating action to decarbonise to make Heathrow appealing for favourable financing terms from investors.

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14001, ISO 50001

Third-party Assurance: Bureau Veritas UK Limited

Sustainable Products & Innovation

  • Low carbon concrete

Awards & Recognition

  • Best airport in Europe (2023 Business Traveller Awards)
  • Most connected airport in the world (OAG Megahubs Index 2023)
  • Wildlife Trust’s Biodiversity Benchmark Award