Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced fuel cost by approximately 1.6 billion baht through fuel management initiatives (2014-2017).
• Reduced plastic usage by 38.08% compared to 2016 through reuse of plastic sheets, saving 6,332,022 baht.
• Reduced waste from wooden planks by 93.6 tons and saved 1,500,000 baht through reuse and recycling.
• Saved 4,543,861 baht annually through improved in-flight service operations management.
• Reduced water consumption by 6,011 cubic meters compared to 2016.
• Offset 695,000 kilograms of CO2e through the IATA voluntary carbon offsetting program.

Social Achievements

• Implemented the “THAI Spirit” organizational culture (Trust, Hospitality, Accountability, Integrity).
• Successfully trained 3,384 employees in soft skills and 11,678 employees in hard skills.
• Achieved 100% staff performance evaluation.
• 91.86% of employees who took parental leave returned to work.
• Improved customer satisfaction through various initiatives, including the “Service Ring” plan.
• Launched various community and social development projects, including educational promotion, public health promotion, environmental promotion, and assistance in natural disasters.

Governance Achievements

• Strictly followed Corporate Governance principles in line with the CG Code for registered companies in 2017.
• Implemented a Whistle Blower Policy to prevent fraud and corruption.
• Achieved a “Very High” score in the Integrity and Transparency Assessment (ITA) by the Office of the National Anti-Corruption Commission (2014-2017).
• Established a committee to investigate engine procurement procedures and a fraud and corruption prevention committee following Rolls-Royce’s admission of bribery.

Climate Goals & Targets

Environmental Challenges

• Declined ability to compete.
• Operations of loss-making routes.
• High aircraft maintenance costs due to too many aircraft types.
• Intense competition in the airline business.
• Fluctuation of fuel prices and exchange rates.
• Risk of information leaks.
• Natural disasters and climate change.

Mitigation Strategies

• Implemented a three-year Transformation Plan (2015-2017) to cut losses and build competitive strength.
• Adjusted the transformation plan in 2017 into six strategies and 17 major plans/projects.
• Established effective fuel hedging policies.
• Improved safety and security of information.
• Developed corporate structure, performance management, and work processes.
• Implemented a Safety Beyond Compliance initiative adopting EASA standards.
• Established a Crisis Management & Operations Center (CMOC) and DD Command Center.

Supply Chain Management

Responsible Procurement

• Purchasing agricultural products from farmers’ associations.

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters

Transition Risks

• Climate change

Reporting Standards

Frameworks Used: GRI G4 guidelines (Core option)

Certifications: ISO 14001, ISO 50001, IOSA, ISO 9001

UN Sustainable Development Goals

• 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17

The report mentions alignment with the SDGs throughout the document, but does not provide a detailed explanation of how each initiative contributes to specific goals.

Awards & Recognition

• Skytrax World Airline Awards 2017 (World’s Best Economy Class, World’s Best Airline Lounge Spa, Best Economy Class Onboard Catering)
• TTG Travel Awards 2017 (Best Airline of South East Asia)
• Telegraph Travel Awards 2017 (Top three for Best Economy Class Airline Seats; 8th ranking in Best Intercontinental Airline)
• Belgium-Luxembourg/Thai Chamber of Commerce (Most Influential Thai Company in Belgium and Luxembourg)
• People’s Choice Awards (Most favorite Airline by Chinese tourists)
• China Eastern Airline (Honorable Award for Excellent Service for Ground Service and Catering Departments)
• IFSA (2017 best in-flight food)
• Payload Asia Awards 2017 (Corporate Social Responsibility Award)
• FTSE4Good Index Series
• Thai Listed Companies Association (Sustainability Report Award)
• Ministry of Labor (Best Workplace with Occupational Health and Safety 2017 – Diamond Level)
• Thailand’s Greenhouse Gas Management Organization (carbon-offsetting and carbon footprint certificates)
• Adam Smith Awards Asia 2017 (Best Risk Management Solution)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced aircraft fuel consumption by 31,884 tons-liter, reducing CO2 emissions by 100,310 tons CO2e through Fuel Management project.
• Reduced food waste by 400 kilograms a day, equivalent to approximately 20 million Baht a year.
• Reduced plastic sheet usage by 36.09 percent or approximately 126,041 sheets, saving an estimated 177,000 kilograms and 169,397 CO2e in emissions.

Social Achievements

• Launched various CSR projects including educational promotions, public health promotion, religion and cultural promotion, disaster relief assistance, and promotion of public welfare.
• Implemented online Food Safety Brush Up training course for catering employees, reducing paper usage by 14,000-25,000 sheets per course per year.

Governance Achievements

• Published revised edition of corporate good governance manual.
• Received an ITA score of 88.13 out of 100 (Grade A) in the annual National Anti-corruption Commission’s Integrity and Transparency Assessment.
• Organized good governance training programs for employees and top executives.

Climate Goals & Targets

Environmental Challenges

• Highly competitive business environment
• Global economic slowdown
• Natural disasters
• Surging oil prices
• Aging aircraft
• Inconsistency in service quality
• Need for improvement in revenue and cost management

Mitigation Strategies

• Launched “Montra” transformation scheme focusing on profitability and sustainability, including financial structure management, fuel cost reduction, ancillary revenue development, aircraft management, and sales utilization.
• Implemented fleet strategy to cut operational costs by reducing the number and types of aircraft and enhancing fleet efficiency.
• Implemented various initiatives to decrease energy consumption and move towards sustainable use of resources (e.g., fuel management, route optimization, potable water uplift).

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001:2015 (Environmental Management), ISO 50001:2011 (Energy Management), IATA’s Safety Audit for Ground Operations (ISAGO)

Awards & Recognition

• Sustainability Disclosure Award
• Certificate of Appreciation (Friendly Design Thailand 2019)
• Full Service Airline – Best Website at the 11th TraveMole–ITB Asia Awards 2019
• Three awards at the 2019 Suvarnabhumi Service Excellence (SSE) award ceremony
• Other awards listed in the report

Environmental Metrics

Social Achievements

• Restructuring of aviation business operation, transferring Thai Smile Airways Company Limited operations to THAI in January 2024.

Governance Achievements

• Implementation of the Rehabilitation Plan, approved with amendments on October 20, 2022.

Climate Goals & Targets

Environmental Challenges

• Rehabilitation process and potential inability to exit within the planned timeframe.
• Risk of lawsuits from creditors in foreign courts.
• Risk of counterparties terminating contracts due to rehabilitation.
• Implementation of strategic business plan.
• Damage to reputation or brand image.
• Limited number of suppliers for aircraft, engines, and spare parts.
• Fleet performance and certification of new aircraft.
• Significant debt and fuel price fluctuations.
• Business in foreign currencies and exchange rate fluctuations.
• Litigation and regulatory investigations.
• Attracting and retaining key personnel.
• Limited number of service providers for ticket distribution.
• Reliance on third-party services.
• Uninsured risks and inadequate insurance coverage.
• Protection of intellectual property rights.
• Technology and automated system failures and cybersecurity risks.
• Labor-related issues.
• Compliance with environmental laws and regulations.
• Highly competitive and constantly changing global aviation industry.
• Highly regulated industry and regulatory risks.
• Antitrust risks.
• Seasonal fluctuations and other industry-related factors.
• Adverse economic and political conditions.
• International conflicts, terrorism, or other violence.
• Limited ability to pay dividends due to accumulated losses.
• Risks related to share offering and share price fluctuations.
• Potential conflicts of interest among shareholders.
• Restrictions on foreign shareholdings.
• Restrictions on shareholder participation in future offerings.

Mitigation Strategies

• Implementing a recovery plan to improve cost efficiency, increase revenue, and restructure the organization.
• Executing a fleet optimization plan and expanding the route network.
• Transferring Thai Smile operations to THAI.
• Adjusting flight schedules to operate as a hybrid commercial carrier.
• Resuming full-scale international flight operations.
• Increasing the frequency of domestic flights and reinstating suspended routes.
• Decreasing aircraft types to enhance operational efficiency.
• Acquiring additional aircraft to replace those retired or with lease expiration.
• Developing a 10-year flight network plan.
• Codeshare agreement with Turkish Airlines.
• Partnership with Airports of Thailand Public Company Limited (AOT).
• Adjusting fares to reflect rising fuel costs.
• Increasing the utilization of SAF to 45% of fuel consumption by 2032.
• Upgrading ticket booking system and integrating various distribution channels.

Supply Chain Management

Climate-Related Risks & Opportunities