Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Improved corporate score to "A-" in the Carbon Disclosure Project (CDP), ranking among the top eight of 129 Turkish companies and the highest-scored transportation entity in Turkey.
• Minimized operational environmental impact through aircraft model selection, weight reduction efforts, route optimization, single-engine taxiing, and taxiway improvements.

Social Achievements

• First airline to join the UN Women’s Empowerment Principles.
• Participation in IATA’s 25by2025 Initiative to improve female representation in the aviation industry.
• Membership with the Turkish General Directorate of Civil Aviation Gender Balance Development Commission.
• Partnership with NGOs in the area of gender equality.
• Implementation of equal opportunity policies in recruitment and human resources.

Governance Achievements

• Adoption and public announcement of the Pegasus Corporate Sustainability Policy.
• Achieved 96.30% Corporate Governance Compliance Rating in 2020.
• Readmission to the BIST Sustainability Index in 2020.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Technological developments, alternative fuel, sustainable energy resources

Reporting Standards

Frameworks Used: Turkish Capital Markets Board Sustainability Principles Compliance Framework, CDP, CORSIA, EU ETS, ISO 14001:2015, ISO 9001:2015, ISO 27001:2017, ISO 45001:2018, UN Global Compact

Certifications: ISO 14001:2015, ISO 45001:2018

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced fuel consumption through efficient flight planning and route optimization resulting in 31,360 tons of CO2e emissions reduction.
• Reduced emissions by 12,884 tonnes of CO2e by replacing older aircraft with more fuel-efficient Airbus NEO aircraft.
• Reduced 442 tons of emissions by replacing diesel-powered tractors with electric versions.

Social Achievements

• Not disclosed

Governance Achievements

• Established a Sustainability Office and Sustainability Working Group to manage climate-related risks and opportunities.

Climate Goals & Targets

Environmental Challenges

• Increased direct costs due to emerging carbon pricing mechanisms (EU ETS, CORSIA, potential Turkish ETS).
• Increased direct costs due to mandates on the use of Sustainable Aviation Fuels (SAF).
• Potential for reduced revenues due to shifting consumer preferences towards less carbon-intensive travel options.

Mitigation Strategies

• Investment in fuel-efficient Airbus NEO aircraft.
• Ongoing monitoring of emerging regulations and participation in policy dialogues.
• Public disclosure of sustainability efforts to enhance brand reputation.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with current regulations and ISO 14001 requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events disrupting operations.

Transition Risks

• Increased costs due to carbon pricing mechanisms and SAF mandates.

Opportunities

• Reduced fuel costs and increased revenue from more efficient aircraft.

Reporting Standards

Frameworks Used: The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, ISO 14064-1

Certifications: ISO 14001

Third-party Assurance: EMICERT

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Airbus NEO aircraft with fuel-efficient LEAP-1A engines.

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Corporate Governance
• Environmental Management
• Human Rights
• Stakeholder Engagement

Environmental Achievements

• Joined IATA's 2050 Net Zero Target and set an interim goal to decrease flight-related carbon emissions per unit passenger km by 20% by 2030 (compared to 2019).
• Launched a Sustainability Hub on their website.
• First airline in Turkey to use sustainable aviation fuel in domestic flights.
• Secured sustainability performance-linked EXIM-backed aircraft financing for 10 Airbus 321neo aircraft.

Social Achievements

• Joined IATA's "25by2025" initiative to improve female representation in the industry.
• Revised "Policy on Representation in the Board of Directors" to ensure minimum 25% female representation by 2025.
• Launched a new employee recommendation system ("FLYDEA") encouraging innovative ideas, including sustainability initiatives.
• First airline in Turkey to commit to the UN Global Compact.
• First airline globally to sign up with the UN's Women's Empowerment Principles.

Governance Achievements

• Integrated ESG into their main strategic roadmap.
• Developed a risk & opportunity framework under the Corporate Governance Committee.
• Incorporated ESG-related risks into their corporate risk ledger.
• Established a Sustainability Director directly reporting to the CEO.

Climate Goals & Targets

Environmental Challenges

• Reducing Scope 3 emissions across the value chain.
• Meeting ambitious climate targets within the aviation industry.

Mitigation Strategies

• Plans and works in place to strengthen and infuse sustainability initiatives across the value chain (to be implemented in the next three-year period).
• Exploring partnerships with stakeholders and NGOs for policy work and collaboration.

Supply Chain Management

Responsible Procurement

• Plans and works in place to strengthen and infuse sustainability initiatives across the value chain (to be implemented in the next three-year period).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CDP, UN Global Compact, CORSIA, EU ETS, UK ETS

Certifications: ISO 14001, ISO 45001

Awards & Recognition

• National and international awards on customer experience, brand image, and services (details in Annual Report).