Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Reduced fuel consumption by 51,000 tonnes, equivalent to reducing 157,000 tonnes of carbon dioxide emissions.
• Improved fuel efficiency by 0.5% through engine water cleansing, reducing fuel emissions by approximately 3,700 tonnes annually.
• Improved total fuel efficiency by 1% (15,000 tonnes of jet fuel saved annually) by introducing B787 Dreamliners.
• Saved 1,700 tonnes of fuel annually by installing tablets on B737 and B767 aircrafts.
• Reduced noise pollution during landing and take-off by 6.5% through technological transformations and installation of carbon fiber composite aircraft winglets.
• Reduced water consumption by 2662.09 tonnes.

Social Achievements

• Launched the “Green Tour” project, embodying green philosophy in various aspects.
• Developed a comprehensive welfare system, provided professional training, and launched recreational activities for employees.
• Implemented special territorial distribution of human resources and promoted diversification of employment, strengthening the international talent pool.
• Implemented flexible benefit packages for employees.
• Organized over 100 cultural activities for employees, with nearly 20,000 participants.
• Launched the “Love Wings” charity program, supporting over 300 people's journeys.
• Launched the “Hainan Airlines Bringing Love Home” program, providing free air tickets to over 160 people for Chinese New Year.

Governance Achievements

• Introduced an energy management system in accordance with international standards.
• Introduced the IATA Fuel Efficiency gap analysis program.
• Implemented the “2015 Talent Acceleration Development Plan”.

Climate Goals & Targets

Environmental Challenges

• Some energy-saving projects did not achieve their targets due to factors such as differences between actual and possible flight hours, failure to achieve fuel-saving rates in certain destinations, and issues with electricity supply on airport bridges.

Mitigation Strategies

• Strengthened flight operation control, focused on monitoring underperforming destinations, included fuel-saving rates in annual KPI assessments, optimized project control targets, strengthened communication with airports, and provided pilot training on proper bridge load usage.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Environmental Metrics

ESG Focus Areas

• Safety
• Passenger Service
• Employee Development
• Environmental Protection
• Community Involvement
• Governance
• Supply Chain Management
• Internationalization

Environmental Achievements

• Reduced fuel consumption by 54,000 tons, equivalent to a reduction of 170,000 tons of CO2 emissions.
• Launched the ‘Green Tour - Carbon Offset’ public welfare project in cooperation with the China Green Carbon Foundation.
• Implemented various initiatives to reduce aircraft weight, leading to emission reductions.
• Installed solar photovoltaic panels on a new parking building, saving electricity and reducing coal consumption.

Social Achievements

• Served 47.02 million passengers.
• Ranked 3rd in the JACDEC Airline Safety Ranking.
• Achieved 5-Star Airline ranking by SKYTRAX for the sixth consecutive year.
• Launched public welfare projects such as ‘Change for Good’, ‘Bringing Love Home’, and ‘Love Wings’, assisting over 400 people.
• Opened approximately 20 regular routes to remote and poverty-stricken areas to promote poverty elimination.
• Improved passenger services with initiatives like ‘Less is More’ and ‘Whole-Journey Check-in’.
• Upgraded VIP lounges.
• Improved flight on-time performance to 78.29%.
• Implemented various initiatives to improve customer satisfaction and address complaints.

Governance Achievements

• Honored among the ‘Top 30 Boards of Supervisors of Listed Companies’ by the China Association for Public Companies.
• Improved compliance management system and conducted compliance training for over 500 employees.
• Completed internal control appraisal in overseas offices.
• Adhered to business ethics and complied with laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Increasing internationalization and global counter-terrorism situation.
• Environmental change and increasing pressure on runway safety.
• Growing passenger volume and cargo and mail traffic increasing pressure on energy-saving targets.
• Competition for talent in the aviation industry.
• Need to balance talent distribution and improve remuneration and benefits system.

Mitigation Strategies

• Equipped staff with advanced security protection technology and introduced training methods from world-class security companies.
• Formulated the Hainan Airlines Overseas Security Management System Construction Plan.
• Implemented various initiatives to reduce fuel consumption and emissions.
• Improved employee welfare system and redesigned remuneration structure.
• Implemented the ‘International Talent Introduction Project’ and ‘International Talent Training Program’.

Supply Chain Management

Supplier Audits: Annual assessments of cooperative agencies

Responsible Procurement

• Adhered to compliant procurement, strictly abided by the laws and regulations related to bidding and tendering, and strengthened supplier management.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4, ISO 26000:2010, GB/T 36001-2015, CASS-CSR 3.0

Awards & Recognition

• Four awards at the 2016 World Travel Awards (WTA): ‘World’s Best Business Class’, ‘World’s Best Inflight Service’, ‘World’s Best Airline Cabin Crew’ and ‘World’s Best Cabin Service’
• SKYTRAX 5-Star Airline for six consecutive years
• Listed among ‘BrandZ Top 100 Most Valuable Chinese Brands 2015’
• ‘Annual Award for Overseas Promotion of Chinese Enterprises’ of PR Newswire
• ‘Internationalized Talents Cultivation Program’ of the International Society for Performance Improvement (ISPI)
• ‘Award for Overseas Promotion’ of the Civil Aviation Resource Net of China (CARNOC.com)
• ‘Best Airline in China’ and ‘Asia’s Fastest Developing Airline’ awards from Global Traveler
• ‘Golden Footprint International Tourism Marketing Award & 16th IAI International Advertising Award’ at the International Advertising Awards (IAI)
• First ‘Hainan Province Government Quality Award’
• ‘Excellent Employer of China 2016’ by 51job
• ‘Top 10 Domestic Airlines Highly Praised by Consumers’ by the China Tourism Destination and National Image Forum
• ‘Prize for the Highest Web Sales Increase in 2015/16’ by Amadeus
• Listed in the JACDEC Airline Safety Ranking as the 5th safest airline in the world
• ‘GoldenBee Ecological Civilization Award’
• ‘Top 30 Boards of Supervisors of Listed Companies’ by the China Association for Public Companies
• ‘Most Popular Airline in Mainland China’ by Global Times - Global Travel
• Four awards at the 2016 World Travel Awards (WTA): ‘Asia’s Leading Airline’, ‘Asia’s Leading Airline - Business Class’, ‘Asia's Leading Cabin Crew’ and ‘Asia's Leading Inflight Food & Beverages’

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Saved 97,200 tons of fuel and launched 67 new energy-saving and emission-reduction projects.
• Completed the first transoceanic flight in China using domestically produced bio-aviation fuel.

Social Achievements

• Achieved 87% employee engagement and won the China Best Employer Award.
• Continued the “Change for Good”, “Love Wings”, and “Sending Love Home” public welfare projects.

Governance Achievements

• Awarded the title of SKYTRAX Five-Star Airline for the seventh consecutive year and ranked 9th in the World’s Best Airlines.
• Abided by business ethics, laws, and regulations, promoting fair competition and operation with integrity.

Climate Goals & Targets

Supply Chain Management

Responsible Procurement

• Strictly follow laws and regulations for bidding, insist on procurement in accordance with regulations, and strengthen supplier management.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000:2010, GB/T 36001-2015, CASS-CSR 4.0

Awards & Recognition

• SKYTRAX Five-Star Airline (7 consecutive years)
• Top 10 World’s Best Airlines by SKYTRAX
• China Best Employer Award
• Responsible Brand Award (2017)

Environmental Metrics

ESG Focus Areas

• Safety
• Customer Service
• Employee Development
• Environmental Responsibility
• Social Contribution
• Governance

Environmental Achievements

• Annual fuel saving of 125,000 tons, reducing carbon emissions by 239,000 tons.
• Implementation of electronic release on domestic flights, reducing paper consumption by nearly 90% per flight.
• Implementation of "CIRCLE FLY" operation, reducing annual carbon emission by 4,500 tons.

Social Achievements

• Launched the 6th “Bring Love Home” Initiative, providing free air tickets to over 130 poor university students.
• Launched the “Change for Good®” onboard fundraising plan, supporting children in post-disaster reconstruction and child protection mechanisms.
• Organized over 230 daily cultural and sports activities for employees.
• Employee satisfaction reached 80%.

Governance Achievements

• Established and improved the comprehensive risk management system.
• Held 11 shareholders' meetings, 23 meetings of Boards of Directors, 15 meetings of committees under the Board of Directors, and 11 meetings of Board of Supervisors.
• Revised related rules and regulations such as the Articles of Association and the Working System of the Secretary of the Board of Directors to further improve the transparency of business management.

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Adherence to compliance procurement, strengthening supplier management.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards, GB/T36001-2015, ISO 26000:2010, CASS-CSR4.0

Certifications: IOSA safety standard

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• SKYTRAX Five Star Award (8th time)
• Top 100 Green Gold Enterprises on Ecological Civilization
• 2017 Best Airline of Award (4th time)
• Annual Responsibility Case Prize
• Special B&R Award and the CSR TOP 100 Brands
• Best Chinese Airline in China
• World's Best Airline, World's Best Airline - Asian Routes, World's Best Crew and World's Best Flight Services
• Golden Bee 2018 Excellent Corporate Social Responsibility Report & Customer Responsibility Information Disclosure Prize
• Best Airlines in China
• Model Enterprise in Harmonious Labor Relations of Hainan Province