Climate Change Data

Malaysia Aviation Group (MAG)

Climate Impact & Sustainability Data (2020-2021, 2022)

Reporting Period: 2020-2021

Environmental Metrics

Total Carbon Emissions:1,389,666 tCO2e (2021); 1,597,599 tCO2e (2020)
Scope 1 Emissions:1,389,666 tCO2e (2021); 1,597,599 tCO2e (2020)
Scope 2 Emissions:17,624 tCO2e (2021); 17,014 tCO2e (2020)
Total Energy Consumption:7,727.11 MWh (2021); 6,945.18 MWh (2020)

ESG Focus Areas

  • Environment
  • Social
  • Governance
  • Safety

Environmental Achievements

  • 7000 MWh renewable energy generated annually by solar panels at MABKargo facilities, avoiding almost 5000T of CO2 annually.
  • Introduction of biodegradable materials for meal boxes and cutlery, and e-menu cards for passengers.
  • 1% year-on-year fuel burn reduction for all fleets (excluding fleet replacement).
  • Successful inaugural flight using Sustainable Aviation Fuel (SAF) in December 2021.

Social Achievements

  • 100% COVID-19 vaccination rate for employees.
  • Launched MAG Employee Assistance Programme to support employees.
  • MASkargo flew over 30 tonnes of humanitarian aid to Da Nang, Vietnam.
  • Operated rescue and repatriation flights.

Governance Achievements

  • Established a whistle-blowing programme.
  • Implemented anti-human/wildlife trafficking awareness campaigns.
  • Developed a framework to foster inclusivity, diversity, and equity.

Climate Goals & Targets

Long-term Goals:
  • Net-Zero Emission by 2050.
  • Towards waste circularity by 2050.
  • Rated as World’s Safest Airlines by 2030.
Medium-term Goals:
  • Increase the number of women in senior positions by 25% by 2025.
  • Accelerate opportunity, equity for better community by 2025.
  • Establish an Aviation Safety Culture Certificate Programme by 2025.
Short-term Goals:
  • Zero bribery and corruption cases by 2023.
  • Develop voluntary passenger offset by 2023.
  • Utilize digital platforms and data analytics to entire supply chain by 2025.

Environmental Challenges

  • COVID-19 pandemic impact on operations and supply chains.
  • High cost of Sustainable Aviation Fuel (SAF).
  • Low availability of SAF.
  • Lack of government support and incentives for SAF.
Mitigation Strategies
  • Implemented COVID-19 safety policies and vaccination programs.
  • Used passenger planes for cargo services (P2C and CIC).
  • Collaborated with Petronas and Neste for SAF supply.
  • Developing a long-term SAF roadmap and exploring partnerships.

Supply Chain Management

Responsible Procurement
  • ESG Procurement Blueprint (in development)

Climate-Related Risks & Opportunities

Opportunities
  • Sustainable Aviation Fuel (SAF)

Reporting Standards

Frameworks Used: GHG Protocol Corporate Standard

Certifications: IOSA, ISAGO, AOC

UN Sustainable Development Goals

  • Goal 8 (Decent Work & Economic Growth)
  • Goal 12 (Responsible Consumption & Production)
  • Goal 13 (Climate Action)
  • Goal 5 (Gender Equality)

Sustainable Products & Innovation

  • Biodegradable in-flight materials

Awards & Recognition

  • Best Safety Management Award from KILAT Conference
  • 7-star rating by AirlineRatings.com for COVID-19 preventive measures

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:3,430,363 tCO2e
Scope 1 Emissions:2,779,968 tCO2e
Scope 2 Emissions:18,802 tCO2e
Scope 3 Emissions:631,594 tCO2e
Water Consumption:158,549 L per month
Waste Generated:1036 tonnes

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Governance
  • Community Engagement
  • Employee Wellbeing

Environmental Achievements

  • 20% of waste avoidance to landfills from recycling programs in Kuala Lumpur
  • 22.29 million kg of CO2 saved equivalent to 8,846 seedlings grown over 10 years
  • 400 tonnes of waste recycled by switching 4,190 bulbs to LED
  • 152,785 kg of CO2 saved each year since 2019 by implementing Work From Home
  • 13% less carbon emissions from staff commute = 2,700 trees saved
  • 63% less paper used in senior positions
  • 17 SAF-powered ‘Awareness Flights’ by our subsidiaries (MAB, FY and MW)
  • Completed Greenhouse Gases (GHG) accounting project for MAG

Social Achievements

  • Officially established to empower women employees
  • Collaborated with WWF-Malaysia on passenger donations for an environmental project
  • Collaborated with local talents in upcycling projects
  • 25% female representation in 2022
  • 50% increase in open reports compared to 2019
  • LTIFR of 1.64 (below industry average of 6.6)
  • Zero fatalities in 2022

Governance Achievements

  • Established the Sustainability Office at Group level
  • Collaborated with SHUT to develop and conduct training on victim identification of human trafficking
  • Signed an MOU with Stop Human Trafficking (SHUT)
  • Published MAG’s First Sustainability Report (2020-2021)
  • Awarded the Sustainable Brand Awards 2022 by Business Media International (BMI) & Affin Bank
  • Zero cases of human or wildlife trafficking

Climate Goals & Targets

Long-term Goals:
  • Net-zero carbon emissions by 2050
Medium-term Goals:
  • 50% reduction in single-use plastics (SUP) for in-flight operations and 50% recycling rate by 2030
  • Zero waste to landfill by 2030
Short-term Goals:
  • 50% waste to landfill reduction (mid-term)

Environmental Challenges

  • Higher Costs of sustainable supplies
  • Support for new suppliers in sustainability journey
  • Longer Supplier Turnaround Time (TAT)
  • Loss of Current Suppliers due to economic circumstances
  • Increased waste volume with increased passenger numbers
  • Bird strikes
Mitigation Strategies
  • Focus on target products and green financing incentives for suppliers
  • Vendor Development Programme for Bumiputera SMEs
  • Technology leverage and process improvement requests for suppliers
  • Grace period for compliance for suppliers
  • Waste Circulatory Framework with defined processes
  • Wildlife Hazard Management Program (WHM) with regular meetings and initiatives

Supply Chain Management

Responsible Procurement
  • Sustainable Procurement Blueprint 2022-2030
  • Supplier Code of Conduct
  • ESG elements incorporated into procurement KPIs
  • Vendor Development Programme

Climate-Related Risks & Opportunities

Opportunities
  • Sustainable Aviation Fuel (SAF)

Reporting Standards

Frameworks Used: IATA ESG Metrics, GRI Standards, UN Sustainable Development Goals (UNSDGs)

Third-party Assurance: Verifavia Singapore Pte Ltd (limited assurance)

UN Sustainable Development Goals

  • SDG 5 (Gender Equality)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 12 (Responsible Consumption and Production)
  • SDG 13 (Climate Action)

Initiatives aligned with SDGs are detailed throughout the report.

Sustainable Products & Innovation

  • Sustainable Aviation Fuel (SAF)
  • Upcycled products from waste materials

Awards & Recognition

  • Sustainable Brand Awards 2022