Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Decarbonization

Environmental Achievements

• Committed to net zero carbon emissions by 2050
• Committed to net zero Scope 3 emissions by 2030
• Committed to 10% sustainable aviation fuel (SAF) by 2030
• First airline group to commit to net zero carbon emissions by 2050

Social Achievements

• Supported approximately 71,000 Spanish jobs in 2019
• Facilitated tourism and business travel contributing to an additional 300,000 jobs and €15bn GVA in Spain
• Iberia's social contributions: repatriation flights, collaboration with national transplant organization, services to minors traveling alone, transporting humanitarian material and vaccines.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decarbonizing the aviation industry to meet EU environmental commitments
• Balancing economic benefits with environmental impact

Mitigation Strategies

• Flightpath Net Zero strategy: new aircraft and operations, SAF, market-based measures with offsets, and carbon removals
• Investment in SAF purchasing and production capacity
• Collaboration with start-ups through Hangar 51 to accelerate climate tech adoption

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Commitment to supporting and monitoring suppliers’ performance to ensure net zero emissions by 2050

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainable Aviation Fuel (SAF)

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Sustainable Aviation Fuels

Environmental Achievements

• Reduced CO2 per passenger kilometer by 87.3 gCO2/pkm in 2020 to a target of 80 gCO2/pkm by 2025 (a 10% reduction)
• Saving almost 100 tonnes of single-use plastic per year through various initiatives.
• Iberia's first Airbus A350 aircraft delivery was powered by a 10% sustainable aviation fuel blend.

Social Achievements

• Appointed 175 onboard ‘War on Waste’ champions
• Offer discounts for customers who bring their own reusable cup
• British Airways will offset carbon emissions for all its UK domestic flights, making them net zero carbon from 2020

Governance Achievements

• Establishing management incentives aligned to climate targets
• IAG committed $400 million over 20 years to the development of sustainable aviation fuel.
• Participation in the EU Emissions Trading Scheme (ETS) since 2012

Climate Goals & Targets

Environmental Challenges

• Aviation's reliance on fossil fuels
• Complexity of low-carbon solutions for aviation compared to other sectors
• 80% of emissions are for journeys over 1,500km where there are no reasonable alternatives to flying

Mitigation Strategies

• Investing in new aircraft (up to 25% more fuel-efficient)
• Improving operational fuel efficiency
• Investing in sustainable fuels, low-carbon aircraft, and carbon capture technologies
• Encouraging passenger participation in voluntary carbon offsetting
• Using high-quality carbon offsets to fund CO2 reduction initiatives

Supply Chain Management

Responsible Procurement

• Investing in sustainable aviation fuels

Climate-Related Risks & Opportunities

Opportunities

• Development of sustainable aviation fuels, hybrid and electric aircraft and carbon capture

Reporting Standards

Frameworks Used: CORSIA (ICAO), EU ETS

UN Sustainable Development Goals

• Goal 13 (Climate Action)

Net-zero CO2 emissions by 2050 target aligns with the UN's objective to limit global warming to 1.5 degrees

Sustainable Products & Innovation

• Sustainable aviation fuels

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Management
• Stakeholder Engagement
• Employee Engagement and Welfare
• Diversity and Inclusion

Environmental Achievements

• 12% improvement in carbon efficiency (83.5g CO2/pkm)
• Secured 250,000 tonnes of SAF for 2030 (25% of target)
• 1,580,000 tonnes of CO2 saved from a more efficient fleet compared to 2019
• 30,000 tonnes of CO2 saved from SAF purchased

Social Achievements

• 17% increase in workforce
• 34% women in senior leadership roles (up from 33% in 2021)
• Launched ‘Peppy’ menopause support app
• Raised over €6.5 million for charitable causes

Governance Achievements

• New Group-wide Whistleblowing Policy issued
• New Group-wide anti-bribery and corruption policy issued
• 89% of staff covered by collective bargaining agreements
• 10% of annual incentive for over 7,400 senior executives and managers linked to annual carbon intensity targets

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Industry-wide skilled resource shortages (engineering and airport operations)
• Inflationary pressures
• Climate-related risks (policy shifts, physical risks, SAF infrastructure)
• Cybersecurity threats

Mitigation Strategies

• Robust ERM framework
• Investment in new aircraft (€13.5 billion 2023-30)
• Investment in SAF (US$865 million committed)
• Operational efficiency initiatives
• Supplier sustainability programme
• Board-approved cyber strategy
• Data centre migration to cloud

Supply Chain Management

Supplier Audits: 32 CSR audits completed in 2022

Responsible Procurement

• Supplier Code of Conduct (SCoC)
• Independent risk screening and sustainability assessments
• ESG scorecards
• New supplier contract clause on sustainability

Climate-Related Risks & Opportunities

Physical Risks

• Acute weather events
• Chronic climate changes impacting routes and assets

Transition Risks

• Policy shifts
• Lack of SAF infrastructure
• Changes in ETS/CORSIA pricing

Opportunities

• Development of energy-efficient products and services
• Investment in SAF production

Reporting Standards

Frameworks Used: TCFD, EU Taxonomy Regulation, GRI Standards (selected)

Certifications: ISAE 3000 (Revised)

Third-party Assurance: Third-party independent verification to limited assurance standards

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through SAF investments, emissions reduction targets, and renewable energy use

Sustainable Products & Innovation

• SAF
• Voluntary offsetting for customers
• Electric buses and trucks at airports

Awards & Recognition

• CDP A-List award (2022)
• Highest-ranked airline in TPI climate ratings

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Aviation Fuel (SAF)
• Waste Reduction
• Noise and Air Quality
• Diversity, Equity, and Inclusion (EDI)
• Employee Wellbeing
• Human Rights
• Supply Chain Sustainability
• Governance

Environmental Achievements

• 80.5 gCO2/pkm carbon intensity, a 3.6% annual improvement
• 157.1k tonnes of CO2 saved from SAF use in 2023 (418% year-on-year increase)
• 14% reduction in noise per take-off and landing cycle versus 2019
• $1 billion total investment in SAF as of 31 December 2023

Social Achievements

• 36% of senior leadership roles held by women (2-point increase from 2022)
• Launched a voluntary, anonymous survey to understand senior leadership diversity
• Over €7.4 million raised for charitable causes
• 3.2+ million training hours completed in 2023

Governance Achievements

• 100% of IAG airline senior executives have climate-related remuneration
• Enhanced SAF governance framework
• A- CDP rating for climate action (fourth consecutive year)
• 90% of suppliers by spend completed ESG scorecards

Climate Goals & Targets

Environmental Challenges

• SAF supply chain challenges (market, policy, and technological risks)
• Climate-related risks (physical and transition risks)
• Supply chain disruptions
• Cybersecurity threats
• Geopolitical instability impacting operations and airspace
• Maintaining operational resilience amidst resource shortages and industrial action

Mitigation Strategies

• Investing in SAF production and securing supply agreements
• Implementing a robust Enterprise Risk Management (ERM) framework
• Supply chain sustainability program (ESG scorecards, supplier risk screening)
• Strengthening cybersecurity posture and investing in IT systems
• Proactive schedule management and disruption mitigation strategies
• Focusing on employee wellbeing and engagement to mitigate industrial action risks

Supply Chain Management

Supplier Audits: 38 independent CSR audits completed in 2023

Responsible Procurement

• Supplier Code of Conduct (SCoC)
• EcoVadis scorecards for supplier sustainability assessment
• Sustainability clauses in supplier contracts

Climate-Related Risks & Opportunities

Physical Risks

• Acute weather events
• Chronic climate changes impacting routes and assets

Transition Risks

• Policy changes
• SAF supply chain readiness
• Changes in ETS/CORSIA pricing

Opportunities

• Development of energy-efficient products and services
• Investment in SAF production

Reporting Standards

Frameworks Used: TCFD, GRI (selected standards), SASB

Certifications: IEnvA (equivalent to ISO 14001)

Third-party Assurance: Third-party verification to limited assurance standards in line with ISAE3000 (Revised)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

IAG's initiatives contribute to these goals through its Flightpath Net Zero strategy, SAF investments, and waste reduction efforts.

Sustainable Products & Innovation

• SAF
• More fuel-efficient aircraft

Awards & Recognition

• A- CDP rating for climate action
• Highest-ranked airline in 2022 Transition Pathway Initiative (TPI)
• Top 10% of airlines assessed by Sustainalytics
• 2024 Eco-Airline of the year by Air Transport World
• Aer Lingus received the Aviation Sustainability and Environment award at the Irish Aviation 2023 Awards

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• Conflict in the Middle East impacting flights to the region.
• Continued delays in the supply chain, especially engines and component availability and reliability.
• Geopolitical tensions and conflicts impacting financial markets, fuel prices, operations, and customer sentiment.

Mitigation Strategies

• The Group has continued to maintain its framework and processes to identify, assess, and manage risks. The Board has continued to monitor and assess risks in the light of changes that influence the Group and the aviation industry and continues to closely review how risks combine to create increased threats.

Supply Chain Management

Climate-Related Risks & Opportunities