Climate Change Data

Environmental Metrics

ESG Focus Areas

• Financial Sustainability
• Operational Efficiency
• Leadership Development
• Organisational Transformation
• Safety Culture
• Skills Development
• Climate Change
• Resource Management
• Environmental Awareness
• Governance
• Regulatory Compliance
• Stakeholder Relationships

Environmental Achievements

• Reduced carbon inventory from 10,469 tons of CO2e in 2014 to 19,135.47 tons of CO2e in 2015 (increase attributed to improved measurement)
• Implemented energy efficiency initiatives at head office (LED lighting)
• Explored use of ICAO IFSET tool to measure aircraft emissions
• Rolled out sustainability initiatives to promote paperless environment and recycling

Social Achievements

• Achieved Level 2 B-BBEE contribution level
• Increased AIC representation to 69.56%
• Increased female representation to 44.05%
• Donated container libraries to schools
• Launched "Visible Safety" campaign to improve safety performance
• Hosted 2nd ATNS Safety Workshop with neighboring ANSPs
• Launched Fatigue Risk Management Programme
• Conducted a safety culture survey

Governance Achievements

• Complied with King III Code (except for non-executive director fees)
• Improved IT governance from Level 2 to Level 4
• Implemented a Fraud Prevention Plan
• Maintained ISO 9001 certification
• No material regulatory compliance findings reported

Climate Goals & Targets

Environmental Challenges

• Rising energy costs and uncertainty of future electricity supply
• Cable theft impacting communication infrastructure
• Simultaneous outages from third-party service providers
• Below-target CAPEX performance due to challenges in achieving B-BBEE targets
• Growing requirement for air traffic controller skills
• Increase in safety events due to human performance failures
• Need to balance human-capital intensive business with increased focus on technology
• Maintaining B-BBEE level under new codes

Mitigation Strategies

• Implementing alternative solutions, such as diesel generators
• Expanding independent communication network
• Collaborating with international OEMs and local suppliers
• Implementing Human Capital plan to address skills shortages
• Launching "Visible Safety" campaign and implementing safety action plans
• Implementing 15-year plan to address skills challenges and technological advancements
• Implementing updated SCM and PP and ED policies

Supply Chain Management

Responsible Procurement

• Preferred Procurement Policy promoting B-BBEE empowered suppliers
• Focus on Enterprise Development through upstream supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting aviation industry

Opportunities

• Improved airspace design to reduce emissions

Reporting Standards

Frameworks Used: IIRC Integrated Reporting Framework v1.0, King III Code of Governance, IFRS, GRI G4, UNGC, CDP

Certifications: ISO 9001

Third-party Assurance: Kwinana Equifin, South African Civil Aviation Authority (SACAA)

Awards & Recognition

• IATA Worldwide Top Regional Training Partner (2012, 2013, 2014)

Environmental Metrics

ESG Focus Areas

• Financial stability
• Operational efficiencies
• Safety
• Training and development
• Employment equity
• Broad-Based Black Economic Empowerment (B-BBEE)
• Environmental sustainability
• Stakeholder engagement

Environmental Achievements

• Total carbon inventory of 25,510.96 tonnes of CO2e
• Environmental training for over 50% of employees (535 employees)

Social Achievements

• Achieved B-BBEE Level 2 rating
• 74 ATS bursars trained
• 6 engineering learnerships
• CSI projects to the value of R1,426,576

Governance Achievements

• Compliance with King III Code (with minor exceptions)
• Zero material non-compliance findings
• Unqualified audit report

Climate Goals & Targets

Environmental Challenges

• South Africa's subdued economy impacting air travel demand
• Global demand for air traffic controller skills leading to high salaries and staff attrition
• System disruptions and flight delays due to infrastructure upgrades
• Cybersecurity threats
• Political instability in certain African countries
• Reliance on third-party service providers
• Theft and vandalism of physical infrastructure

Mitigation Strategies

• African expansion strategy
• Training pipeline management
• Redundancy systems
• Cybersecurity management training and policy development
• Political risk barometers and environmental scans
• Annual review of SLAs and disaster recovery plans
• Standardized security processes and procedures

Supply Chain Management

Responsible Procurement

• B-BBEE compliance
• Enterprise and supplier development programs

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Framework v1.0, GRI G4 Sustainability Reporting Guidelines, UNGC

Certifications: ISO 9001

Third-party Assurance: Rakoma and Associates (financial statements); South African Civil Aviation Authority (SACAA) (safety)

Sustainable Products & Innovation

• Space-based ADS-B service

Awards & Recognition

• IATA Worldwide Top Regional Training Partner (5 consecutive years)
• IATA Premier Circle Member
• ICAO Regional Training Centre of Excellence (RTCE)

Environmental Metrics

ESG Focus Areas

• Economic Sustainability
• Social Sustainability
• Environmental Sustainability

Environmental Achievements

• Reduced carbon footprint from 25,510.96 ton CO2e in 2015/16 to 23,292.01 ton CO2e in 2016/17
• Electricity efficiency improved from 54.48 to 38.92 per air traffic movement
• 7,420 kgs of electronic waste recycled

Social Achievements

• Achieved B-BBEE Level 2 rating
• Increased employee training to 8.13% of salary bill
• Increased AIC representation to 75.12% and female representation to 44.88%

Governance Achievements

• Implemented a fraud prevention plan and whistle-blowing policy, with 8 cases reported
• Improved risk maturity level to 5
• Reviewed and approved Code of Ethics

Climate Goals & Targets

Environmental Challenges

• Unstable IT network
• Reliance on third-party service providers
• Delayed service payments from regional airports
• Inadequate business continuity plans and disaster recovery plans
• Cyber security threats
• Major safety events
• Critical skills in global demand
• Financial unsustainability
• Unavailability of deployed CNS technology
• Political instability in certain African countries
• Economic regulatory uncertainty impacting ATNS permission
• Increased operating costs

Mitigation Strategies

• Implementing a comprehensive operational efficiency programme
• Proactive network assessment and monitoring tools
• Service level agreements (SLAs)
• Annual reviews of SLAs with third-party service providers
• Annual review of disaster recovery plans
• Regular emergency testing and contingency plans
• Implementing the Information Security Management System
• Developing a Cyber Security Policy Framework
• Conducting vulnerability assessments and penetration testing
• Developing an IT Security Strategy
• Implementing a comprehensive operational efficiency programme
• Proactive network assessment and monitoring tools
• Service level agreements (SLAs)
• Implementing a woman empowerment programme
• Implementing people with disabilities action plan
• Reduction of staff resignation and roll out of Employee Value Proposition (EVP)
• Implementation of Employment Equity plan (initiatives and programmes)
• Ongoing investment in core and non-core training for employees
• Complete and implement the ATNS Governance Model
• Complete and implement the supply chain operating model to achieve economies of scale
• Effective cost management and tracking of operational spending
• Enforce internal policies and procedures on operational spending through effective performance management organisation wide
• Maintain staff cost and align to the approved permission staff complement numbers
• Monitor maintenance cost and contracts
• Dedicate personnel resources to recover regional airport funds and ongoing consultation as well as agreement need to be maintained
• Working with industry (users) to set out a shortened consultation schedule for the development of permission modules/financial model and internally with the Board to agree on a fast tracked application process

Supply Chain Management

Responsible Procurement

• Preferential Procurement policies (≥51% black owned and/or ≥30% black female owned)
• Supplier code of conduct
• Enterprise and Supplier Development strategy

Climate-Related Risks & Opportunities

Physical Risks

• Impacts of climate change on water scarcity

Transition Risks

• Non-compliance to legislation and industry requirements

Opportunities

• Improving flight efficiency to reduce fuel burn and emissions

Reporting Standards

Frameworks Used: GRI G4

Certifications: ISO 9001:2000 (ATA)

Third-party Assurance: Some performance information assured as part of overall audit process (details in Financial Report)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 15
• Goal 16
• Goal 17

ATNS supports the achievement of 14 of the 17 UN SDGs through its alignment with ICAO's strategic objectives.

Sustainable Products & Innovation

• Online services
• Distance learning

Awards & Recognition

• Best Service Provider Award at Jane’s Annual ATC Awards Ceremony
• IATA Top Regional Training Partner Award
• Top Service Provider Award – AFRAA
• Integrated Reporting Award 2015 –International Integrated Reporting Council (IIRC)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity & Inclusion
• Governance
• Sustainable Development

Environmental Achievements

• Reduced fuel consumption through various initiatives (CCO, CDO, A-CDM, RECAT), resulting in significant CO2e reduction.
• 23,440.52 tons CO2e total emissions, with 86% from Scope 2 (electricity).

Social Achievements

• Launched various CSI projects, totaling R2,521,704.85.
• Improved B-BBEE score to Level 2 (85.42 points).
• Increased female representation in ATS to 46.55% and overall ATNS to 47.35%.

Governance Achievements

• Transitioned from King III to King IV governance framework.
• Implemented CAPEX Delivery Framework to enhance oversight of capital expenditure projects.

Climate Goals & Targets

Environmental Challenges

• Safety ratio of 5.19 safety events per 100,000 movements (target: 2).
• Non-achievement of CNS system availability targets.
• Irregular expenditure amounting to R54.2 million.
• Delayed payments from regional airports.
• High operational costs.
• Cybersecurity threats.
• Theft and vandalism at ATNS sites.

Mitigation Strategies

• Launched Safety Culture improvement project.
• Country-wide security assessments on ATNS sites.
• Investigations underway to assess irregular expenditure.
• Dedicated personnel resources to recover regional airport funds.
• Cost-saving initiatives and operational efficiency analysis.
• Implemented IT Cyber Initiative and holistic Cyber Security Strategy.
• Developed and implemented a new Security Policy.

Supply Chain Management

Responsible Procurement

• Procurement Code of Conduct based on ATNS Code of Ethics.
• Focus on localisation and enterprise development.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, International Integrated Reporting Framework v1.0 (IIRC), King IV

Certifications: ISO 9001:2015

Third-party Assurance: Rakoma and Associates (financial statements); South African Civil Aviation Authority (SACAA) (safety); Independent corporate reporting firm (materiality)

Sustainable Products & Innovation

• Remote tower technology
• PBN procedures

Awards & Recognition

• ICAO Regional Training Centre of Excellence

Environmental Metrics

ESG Focus Areas

• Safety and health
• Operational and financial resilience
• Technology and industry future-proofing
• Sound governance and regulatory compliance

Environmental Achievements

• Implemented ISO 14001:2015 Environmental Management System (EMS) at four centers.
• Reduced Scope 3 emissions (business travel) due to pandemic-related travel restrictions.

Social Achievements

• Achieved Level 2 B-BBEE rating.
• Continued investment in women and youth development initiatives.
• Increased overall employment equity representation.

Governance Achievements

• Conducted independent board assessment and implemented recommendations for improvement.
• Appointed Ms Lindelwa Mngomezulu as Company Secretary.
• Maintained unqualified audit opinions.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting air travel and revenue.
• Subdued South African economic growth.
• Cybersecurity threats.
• Dependency on third-party service providers.

Mitigation Strategies

• Strengthened balance sheet with increased liquidity ratio.
• Expanding non-regulated business.
• Implementing updated cybersecurity strategy and plan.
• Improved service level agreements with vendors.

Supply Chain Management

Responsible Procurement

• B-BBEE practices
• Preferential procurement

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, King IV

Certifications: ISO 9001:2015

Third-party Assurance: Nexia SAB&T Auditors

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

Initiatives contributing to economic growth, job creation, infrastructure development, sustainable cities, and climate action.

Awards & Recognition

• 2019 Civil Aviation Awards (Transformation, People Development, Training & Development)
• 2019 National Aviation Training Award
• IATA Premier Circle membership

Environmental Metrics

ESG Focus Areas

• Sustainability
• Economic Development
• UN Sustainable Development Goals
• South African National Development Plan 2030
• International Civil Aviation Organisation goals

Governance Achievements

• Application of King IV Report on Corporate Governance for South Africa 2016

Climate Goals & Targets

Environmental Challenges

• Decrease in revenue due to decreased air traffic movements and the impact of the COVID-19 pandemic
• Reduction in debt collection due to airline financial difficulties and the COVID-19 pandemic
• Increased operating costs due to increased staff costs and bad debts
• Delays in project execution leading to lower capital expenditure
• Irregular expenditure due to control weaknesses in supply chain management and poor contract management

Mitigation Strategies

• Revised vision, mission, and strategic focus areas
• Formulated 2025 strategy and corporate plan
• Review and renegotiation of capital commitments to defer non-critical expenditure
• Efforts to keep costs low
• Improved supply chain management and consequence management processes
• Adjusted expected credit losses due to increased credit risk

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Third-party Assurance: Nexia SAB&T Auditors

Environmental Metrics

ESG Focus Areas

• Safety
• Governance
• Financial Sustainability
• Environmental Stewardship

Environmental Achievements

• Not disclosed

Social Achievements

• Achieved a ranking within the top 10 companies in South Africa with regards to female representation at executive levels
• No irregular expenditure was incurred in the period under review (2023:R740k)

Governance Achievements

• Improved SCM processes and conducted training for employees involved in procurement
• The Audit and Risk Committee reviewed the strategic risk register on a quarterly basis and is generally satisfied with how the risks are being managed within the organisation.

Climate Goals & Targets

Environmental Challenges

• Material losses of R 49m were incurred as a result of contracts cancellations in capital work in progress
• Tariff increase application objected to by the Regulating Committee, escalated to the Minister of Transport

Mitigation Strategies

• The matter has been escalated to the Minister of Transport who has since established a tribunal committee for a review
• The RC granted the company a temporary Permission to levy charges based on forecasted inflation until the application process is finalised

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, King IV Report on Corporate Governance of South Africa, 2016, International Integrated Reporting Council’s International Framework (2021)

Certifications: ISO 9001:2015

Third-party Assurance: Nexia SAB&T

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• International Air Transport Association’s (IATA’s) Worldwide Top Regional Training Partner (multiple times)

Environmental Metrics

ESG Focus Areas

• Safety and customer-centricity
• Sustainability
• Operational and financial sustainability
• Environmental stewardship

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Improved SCM processes and training for employees involved in procurement, resulting in no irregular expenditure in 2023 (2022: R330k).

Climate Goals & Targets

Environmental Challenges

• Aviation industry struggled to fully recover from the impact of the Covid-19 pandemic, leading to the loss of a key customer through liquidation.

Mitigation Strategies

• Cost containment measures continued; deferral of some major capital commitments.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, King IV Report on Corporate Governance of South Africa, 2016, International Integrated Reporting Council’s International Framework (2021)

Certifications: Null

Third-party Assurance: Nexia SAB&T

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable modern business
• Good governance
• Skilled workforce
• Air traffic safety
• Environmental, economic and geopolitical instability

Environmental Achievements

• EMS certification for ATA and head office retained
• Reduced environmental impact through operational efficiency improvements
• Started work to acquire GreenATM status

Social Achievements

• Won the transformation award at the 2023 Civil Aviation Industry Awards
• Voted first runner-up for the aviation research and development award
• ATA was voted IATA’s best training academy for three consecutive years
• Incubating two black-owned SMMEs
• Exceeded targets for female representation and appointments from designated groups
• Significant progress in hiring diverse talent

Governance Achievements

• Achieved unqualified audit opinion with findings
• Implemented robust governance structures
• Strengthened environmental and quality management systems
• Reduced fruitless and wasteful expenditure
• Conducted regular policy reviews and benchmarking salary structures

Climate Goals & Targets

Environmental Challenges

• Loadshedding, vandalism and inflationary pressures
• Skills shortages
• Ageing infrastructure requiring increased capital expenditure
• Communication system failures
• Protracted permission application process
• Economic and regulatory changes
• Retention of critical air traffic control skills
• Infrastructure development and maintenance
• Cybersecurity threats

Mitigation Strategies

• Expanded non-regulated business, securing new clients
• Continuous investment in infrastructure redundancy and cybersecurity
• Implemented cost-containment measures, cash preservation strategies and reprioritised capital and operational expenditures
• Established a command centre to improve performance and operational oversight
• Implemented a weekly monitoring system
• Emphasised accountability and communication across teams
• Addressed issues related to consequence management and integrity in reporting
• Implemented robust training and development programmes, including bursary programme
• Invested in advanced air traffic management systems
• Exploring satellite and cloud migration as part of digital transformation strategy
• Building strategic partnerships, developing anticipatory leadership and continuously scanning operating environment
• Established a dedicated continuous improvement department
• Employing scenario planning and other advanced techniques

Supply Chain Management

Responsible Procurement

• Supporting suppliers
• Ensuring timely payments
• Fostering strong partnerships
• Contributing to enterprise development initiatives

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: International Integrated Reporting Council’s International Framework (2021), King Code on Corporate Governance for South Africa 2016™, Generally Recognised Accounting Practice, Public Finance Management Act 1 of 1999, Companies Act 71 of 2008

Certifications: ISO 9001:2015, ISO 14001, ISO 31000

Sustainable Products & Innovation

• BONISA prototype

Awards & Recognition

• Transformation award at the 2023 Civil Aviation Industry Awards
• First runner-up for the aviation research and development award
• IATA’s best training academy (three consecutive years)