Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 43% since August 2018 with the installation of solar panels.
• Implemented various fuel efficiency measures, including the use of winglets and single engine taxiing, resulting in fuel consumption savings.
• Reduced waste through the "A tree for your garbage can" campaign, reusing 500 garbage cans and planting 500 trees.

Social Achievements

• Supported more than 100 employees in crisis situations through the Collaborator Assistance Program (PAC).
• Achieved 5,723 volunteer hours in Panama, exceeding the quarterly goal of 4,500 hours.
• Implemented the "Viaje Inolvidable" program, fulfilling the dreams of 126 children.
• Adhered to the Women's Empowerment Principles (WEP's).

Governance Achievements

• Updated the Code of Ethics and Business Conduct.
• Established the "Copa Escucha" ethics officer reporting channel.
• Maintained high levels of corporate governance in accordance with New York Stock Exchange standards.

Climate Goals & Targets

Environmental Challenges

• Weaknesses in some South American economies (e.g., Argentina).
• Operational suspension of the Boeing 737 MAX fleet.

Mitigation Strategies

• Strategies to efficiently manage costs and protect market share.
• Redistribution of flights from the Boeing 737 MAX fleet to other aircraft.

Supply Chain Management

Responsible Procurement

• Purchasing Policy for products with a minimum useful life of 80%

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, ISO 26000

Awards & Recognition

• Most Punctual Airline in the World (OAG)
• Best Airline of the Year in Latin America (KAYAK.com)
• Best Airline in Central America and the Caribbean (SKYTRAX)
• Five Star APEX 2020 Airline

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Corporate Governance

Environmental Achievements

• Reduced carbon footprint through various initiatives including fuel efficiency measures, renewable energy use (solar panels at Tocumen International Airport generating 419,399.56 KW-H, avoiding 450.62 tCO²), and waste management (recycling 360.58 tons of materials).

Social Achievements

• Launched 'Copa Contigo' program to support employees during the pandemic, offering training, job placement assistance, and resources for personal and professional development.
• Conducted over 218 humanitarian flights, reuniting over 21,523 passengers with their families.
• Implemented strict biosafety protocols for employees and passengers.

Governance Achievements

• Maintained compliance with NYSE standards, UN Global Compact principles, SEC directives, and Panamanian securities market guidelines during the challenging 2020.
• Established a Biosafety Committee to manage health protocols and employee well-being.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic causing a significant drop in passenger demand and suspension of operations for almost seven months.
• Financial losses of US$598.6 million due to the pandemic.
• New travel restrictions and border closures in the region.

Mitigation Strategies

• Implemented cost-saving initiatives and renegotiated supplier contracts.
• Offered voluntary termination plans, early retirement, and leaves of absence with above-law benefits.
• Developed new technologies to manage cancellations and schedule changes.
• Implemented strict biosafety measures and protocols.
• Reduced fleet size and route network.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Renegotiation of contracts with suppliers to reduce costs during the pandemic.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: UN Global Compact, UN Sustainable Development Goals (SDGs)

Certifications: UNDP Gender Equality Seal (Gold distinction in Panama)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• “The most outstanding Latin American airline of the last 10 years” at the Decade of Airline Excellence Awards.

Environmental Metrics

ESG Focus Areas

• Professional well-being and growth
• Integral development of communities
• Environmental conservation

Environmental Achievements

• Operated the first flight with SAF (sustainable aviation fuel)
• Fleet modernization and efficient fuel use program prevented emissions of an estimated 3,372 tons of CO₂
• Acquired 39,000 liters of SAF in partnership with Boeing
• Together with seven other airlines, used 100,000 gallons of SAF blend for commercial flights, reducing emissions by 472,500 pounds (214,300 kilos) of CO₂
• Replaced plastic stirrers with bamboo, amenity kits with biodegradable products, and plastic cups with recyclable cups, replacing more than 1.3 million plastic units per year
• Recycled about 41 tons of materials

Social Achievements

• Reactivated 100% of employees on leave and rehired more than 800 people
• Reactivated community activities
• Joined IATA’s Commitment 25by2025 to promote gender diversity
• 304 beneficiaries of flight tickets for humanitarian causes
• Relaunched the Panama Stopover program

Governance Achievements

• Updated materiality study using double materiality concept
• Aligned corporate governance with best international practices and NYSE requirements
• Implemented a Compliance Program to prevent crimes and non-compliance
• No complaints meriting warnings or contract terminations in 2021
• No sanctions or fines related to corruption or money laundering in 2021

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impact on the global economy
• Supply chain disruptions
• High energy costs
• Inflation
• Political-economic aspects
• Conflict in Ukraine
• Decarbonization imperative for the aviation sector
• Increased traveler awareness of environmental impact

Mitigation Strategies

• Reducing cash consumption, increasing credit lines, renegotiating contracts
• Enhanced voluntary retirement plans, special support to personnel
• Frequent communication
• Humanitarian flights, biosecurity measures, flexible fares
• Implementation of Copa Academy for digital training
• Improvements to copa.com for better customer experience
• Transition to electric tractors (10 initially, aiming for entire fleet)
• Use of SAF

Supply Chain Management

Supplier Audits: 100% of suppliers know the Code of Ethics

Responsible Procurement

• Code of Ethics and Conduct shared with suppliers
• Negotiation and Contract Policy
• Third-Party Due Diligence evaluating unethical aspects and human rights

Climate-Related Risks & Opportunities

Physical Risks

• Hurricanes
• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts
• Technological risks related to SAF availability

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: IATA NDC Level 4

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• 3
• 4
• 7
• 8
• 9
• 10
• 11
• 12
• 13
• 16

Contribution to SDGs detailed in Annex I, based on material issues

Sustainable Products & Innovation

• Biodegradable amenity kits
• Recyclable cups
• Bamboo stirrers

Awards & Recognition

• Cirum award for most punctual airline in Latin America (8 consecutive years)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 8% compared to 2019 by ASK.
• Reduced energy consumption from fossil sources in the hangar by approximately 15% through solar panels.
• Avoided the emission of 153 tons of CO2 thanks to the use of solar energy.
• Reduced single-use plastic on board by 2.6 million units.
• Successfully reduced emissions by 8% thanks to fleet renewal plan with Boeing 737 Max aircraft.
• Used 39,000 pounds (approximately 17,690 kilograms) of SAF on a demonstration commercial flight.

Social Achievements

• Reactivated the entire pool of pilots and crew on leave.
• Effected 697 internal promotions, including 59 promotions to captain and 334 cabin crew promotions.
• Increased the percentage of women pilots from 9% to 11%, and reaching 7% in technical aeronautical positions and over 40% in managerial positions.
• Voluntarily joined the “25 by 2025” Commitment of IATA to promote gender diversity.
• Invested more than USD$1MM in ALAS and ATA for training future Panamanian pilots and mechanics.
• Impacted more than 500,000 people through social programs in collaboration with Fundación Despega.

Governance Achievements

• Formalized the governance of the Sustainability Committee and published social and environmental reports with double materiality standards.
• Published the Environmental Sustainability Policy with a commitment to Carbon Neutrality by 2050 and emission reduction metrics until 2026.
• Strengthened the ELEVA Program with commitments in terms of diversity, inclusion, and equality.
• Increased the responsibilities of the Nominations and Governance Committee of the Board of Directors to oversee ESG performance.

Climate Goals & Targets

Environmental Challenges

• High fuel costs due to the war in Ukraine.
• Supply chain disruptions affecting the aircraft and parts market.
• Fragility of Latin American economies and anticipated recession.
• Competitive and dynamic market environment.
• Uncertainty around the production capacity of SAF and ability to meet future demand.
• Extreme weather events affecting operations.
• Potential flood risks at Tocumen Airport in the long term.

Mitigation Strategies

• Fleet renewal action plan with aircraft with lower carbon emissions (Boeing 737 MAX).
• Development of alternative sourcing strategies (not explicitly stated, but implied by addressing supply chain disruptions).
• Investing in educational academies (ALAS and ATA) to address the demand for aviation personnel.
• Implementing various initiatives to mitigate carbon footprint and reduce emissions (see Key Achievements).
• Working with the aviation guild in Latin America to promote SAF production policies.
• Strengthening the identification of climate risks (to be completed by March 2024).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Inclusion of Code of Ethics and Conduct clauses in contracts.
• Third-Party Due Diligence to evaluate suppliers and ensure compliance with ethical requirements.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (hurricanes, intense winds, heavy rains)
• Flooding

Transition Risks

• Transition to low-emission technology (SAF availability and cost)
• Possible regulations requiring SAF use without regional availability

Opportunities

• Development of energy-efficient products (implied)

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• SDG 3
• SDG 4
• SDG 7
• SDG 8
• SDG 9
• SDG 10
• SDG 11
• SDG 12
• SDG 13
• SDG 16
• SDG 17

Copa Airlines focuses its efforts on SDGs where it can contribute significantly according to its material themes.

Sustainable Products & Innovation

• Biodegradable products for on-board service.

Awards & Recognition

• Best Airline in Central America and the Caribbean (Skytrax)
• Best Airline Staff in Central America and the Caribbean (Skytrax)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 8% reduction in CO2g/ASK emissions compared to 2019 (from 74.19 to 67.84)
• Eliminated 2.1 million plastic cups
• Avoided 197 tons of CO2 emissions by using 21 electric ground support equipment (GSE) vehicles
• Passengers offset 4,664 tons of CO2

Social Achievements

• Strengthened diversity, inclusion, and equality programs (ELEVA Program)
• Invested over $600,000 in training for pilots and mechanics
• ALAS academy graduated 223 pilots and has 100 active students
• ATA academy graduated 134 aviation mechanics and has 86 enrolled students
• LIFT program trained over 160 Panamanian pilots, with over 20 employed by Copa Airlines
• Benefited more than 500,000 people through donations, raising over $2.5 million
• Donated $50,000 to the National Oncology Hospital of Panama
• Supported over 18 health organizations, benefiting more than 15,000 patients
• Organized the 28th "Viaje Inolvidable" (Unforgettable Trip) for 130 children
• Donated flight tickets for humanitarian and medical emergencies, benefiting 80 people
• Supported 11 Panamanian women's trip to the NASA Training Center

Governance Achievements

• Monitored ESG performance through the Board of Directors’ Nominating Committee
• Participated in the CDP (Carbon Disclosure Project) Report for the third consecutive year, maintaining a B- rating

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB

Awards & Recognition

• "15 best international airlines" (Condé Nast Traveler)
• 5-star status (Skytrax)