Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced total aircraft CO2 emissions to 4.04m tonnes, an 8% reduction on last year, and a 22% reduction since 2007.
• Pilots saved 21,507 tonnes of CO2 through fuel efficiency initiatives.

Social Achievements

• Opened The VHQ, a new head office building with an excellent sustainability assessment.
• People raised over £200,000 for charity through fundraising activities.
• 90% of Virgin Holidays Sales & Service consultants completed the “Selling At Our Best” training.

Governance Achievements

• Successfully renewed IATA Operational Safety Audit (IOSA) certification.
• Maintained position in airlineratings.com’s top 20 safest airlines for 2016.

Climate Goals & Targets

Environmental Challenges

• 20% devaluation of Pound Sterling following the EU referendum vote led to a significant increase in US Dollar-based costs (over £50m impact).
• Increased market capacity across the transatlantic market driven by low-fare carriers.
• Weakened Pound Sterling reduced demand for UK customers traveling overseas.

Mitigation Strategies

• Took steps ahead of the EU Referendum to ensure 2016 income statement and balance sheet were mostly protected from exchange rate instability through currency hedging.
• Continued to optimise fleet deployment, moving Boeing 787-9 aircraft to longer routes to maximize cost savings.
• Implemented fit.nimble programme to drive efficiency and simplicity, targeting £50m in savings in 2017.
• Reduced capacity for 2017 to offset demand challenges.

Supply Chain Management

Responsible Procurement

• Working with buyers and suppliers to improve human, environmental, and animal welfare credentials of sourced products.
• Partnership with Sustainable Restaurant Association to improve sustainability of catering operations.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and low-carbon jet fuel solutions.

Awards & Recognition

• Virgin Holidays rose 98 places to reach 15th in the KPMG Nunwood Customer Experience Excellence ratings.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Supply Chain Sustainability
• People and Partners (Social)
• Community Investment

Environmental Achievements

• Reduced CO2 per revenue tonne km by 18.1% since 2007 (despite setbacks in 2018 due to engine supply issues)
• Reduced ground energy use by 47% and CO2e emissions by 64% since 2008
• Reduced onboard product weight by 8% in the last three years, saving 4,260 tonnes of carbon and £650,000 in fuel costs
• Operated the world’s first commercial flight using LanzaTech’s sustainable aviation fuel

Social Achievements

• Launched diversity and inclusion strategy ‘Be Yourself’
• Established Springboard, a personal and professional development programme for women
• Enrolled 141 apprentices across the business
• Launched mental health first aid training, with 182 people qualifying as mental health first aiders
• Supported diversity and inclusion training for 188 hotel staff and hospitality students in Barbados
• Introduced a hidden disabilities programme at Heathrow and Gatwick airports
• Introduced accessible onboard entertainment system

Governance Achievements

• Enhanced Responsible Supplier Policy
• Worked with EcoVadis to assess and encourage suppliers’ sustainability performance
• Published an annual modern slavery statement
• Registered as an apprenticeship employer provider

Climate Goals & Targets

Environmental Challenges

• Industry-wide engine supply issues impacting Boeing 787-9 fleet, affecting 2018 carbon performance
• Difficulty in accurately calculating Scope 3 emissions due to reliance on modelling techniques
• Legal restrictions on recycling onboard catering waste (Cat 1 waste)

Mitigation Strategies

• Fleet renewal programme with new, more fuel-efficient aircraft (A350s)
• Continued work to improve data collection and accuracy for Scope 3 emissions
• Focus on reducing onboard waste and plastics, improving galley planning

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Responsible Supplier Policy based on international human rights standards and the UK Modern Slavery Act
• Ethical Carriage of Cargo Policy
• Work with EcoVadis to assess supplier sustainability performance
• Encouraging hotels to seek independent sustainability certification (GSTC)

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of sustainable aviation fuels

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol Corporate Standard, ISO 16064-3 verification standard

Certifications: Null

Third-party Assurance: BSI

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Employee Engagement and Behaviour Change at the edie Sustainability Leaders Awards
• World Travel and Tourism Council’s Tourism for Tomorrow’s Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Innovation
• Sustainable Aviation Fuel (SAF)
• Carbon Offsets and Removals
• Fleet Renewal
• Waste Reduction
• Supply Chain Sustainability
• Employee Wellbeing
• Diversity and Inclusion

Environmental Achievements

• 17% reduction in CO2/RTK (2018-2021), expected to increase to 30% by 2026.
• Retired all four-engine aircraft.
• Removed all individual plastic water bottles onboard, reducing plastic use by 11m bottles a year.
• Achieved a 43% reduction in raw single-use plastic inflight service items by weight compared to 2019.

Social Achievements

• Launched carbon offsetting scheme for passengers.
• Partnership with Vertical Aerospace to launch a Virgin Atlantic-branded short-haul network in the UK using eVTOL aircraft.
• 93% of car fleet and 11% of non-specialist airport fleet were petrol hybrid in 2021.

Governance Achievements

• Sustainability team moved into the Corporate Development team, reporting directly to the CEO.
• Adherence to TCFD recommendations.
• Senior leaders incentivized for achieving absolute carbon emission reductions since 2020.

Climate Goals & Targets

Environmental Challenges

• Scale of decarbonizing aviation.
• Commercialization and uptake of SAF at scale.
• High dependency on technology innovation for SAF and breakthrough flight technologies.
• Supply chain sustainability measurement and improvement.
• Disconnected climate-related regulatory environments.

Mitigation Strategies

• Accelerating development of sustainable fuels.
• Investing in a young and clean fleet.
• Working with UK Government and wider industry to accelerate SAF commercialization.
• Membership of cross-industry and governmental forums.
• Partnerships to innovate and support new technology development.
• Offtake agreements with SAF suppliers.
• Investing in high-quality carbon offsets and removals.
• Working with EcoVadis to assess supply chain sustainability performance.
• Reviewing full supply chain sustainability strategy in 2022.

Supply Chain Management

Supplier Audits: Annual questionnaires on sustainability policies and activities using EcoVadis platform.

Responsible Procurement

• Responsible Supplier Policy

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Delays in SAF availability, increased SAF costs, CORSIA and carbon pricing compliance costs, reputational and demand impact for aviation.

Opportunities

• Development and use of SAF, carbon removal technologies.

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: IATA IOSA

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Carbon emission reduction
• Waste and plastics
• Supply chain sustainability
• Diversity, Equity and Inclusion
• Happiness
• Learning
• Social mobility
• Climate change action and resilience

Environmental Achievements

• Reduced absolute carbon emissions by 35% over the last decade.
• Achieved a 4% reduction in CO2/RTK against the 2019 baseline.
• Saved almost 7,500 tonnes of jet fuel (23,600 tonnes of CO2) through operational efficiency initiatives.
• Met the 90% target of removing or replacing raw (virgin) single-use plastic inflight service items by weight versus 2019.
• Took delivery of the first A330neo, delivering an 11% fuel efficiency saving compared to the A330-300s.

Social Achievements

• Welcomed back over 1,000 cabin crew and 300 pilots from holding pools.
• Received over 10,000 applications for 700 cabin crew roles.
• Updated tattoo and gender identity policies to improve inclusivity.
• Voted number one Most Loved Workplace in the UK by Newsweek.
• Launched Red Spirit series recognizing employees who personify the Virgin spirit.
• Invested over £250,000 in the Passport to Change program, impacting 4,636 children.

Governance Achievements

• Strengthened oversight, reporting, and delivery of 'business as a force for good'.
• Senior leaders incentivized and rewarded against carbon emission reduction targets and colleague inclusion scores.
• Undertook an independent ESG maturity assessment.

Climate Goals & Targets

Environmental Challenges

• Omicron variant impacting first-quarter business.
• Russia's invasion of Ukraine increasing costs and causing network disruption.
• High inflation and cost of living crisis.
• Logistical problems and capacity restrictions at Heathrow.
• Challenges in securing a secure supply of SAF and scaling production.
• Consumer expectations on sustainable aviation.

Mitigation Strategies

• Restructuring work undertaken during the pandemic.
• Disciplined approach to capacity management and cost control.
• Industry-leading completion factors of 99.5%.
• Launched new routes to Austin and Tampa.
• Committed to purchase 10m US gallons of SAF per year through Delta, and an option to buy a further 10m US gallons from Air Company.
• Operating the first ever 100% SAF fuelled transatlantic flight.
• Developing more sophisticated measurement, metrics and reporting to give visibility on environmental impact.

Supply Chain Management

Responsible Procurement

• Responsible Supplier Policy

Climate-Related Risks & Opportunities

Physical Risks

• Wildfires
• Inland flooding
• Heatwaves
• Sea level rise
• Water stress
• Cyclones

Transition Risks

• Increased compliance costs
• Fuel and energy sources relating to SAF procurement
• Changing customer behaviour

Opportunities

• Enhancement of customer experience
• Reduced disruptions
• Harness new technologies and energy sources
• Increased revenue opportunities

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Goal 7
• Goal 13

Our most loved pillars are mapped against the SDGs, with 10 goals aligned to our purpose and representing the areas where Virgin Atlantic can have a meaningful impact.

Awards & Recognition

• APEX Passenger Choice Award for Best Overall Airline in Europe
• APEX Five Star Global Airline
• APEX/IFSA award for Best Product or Service
• World's Best Premium Economy Class Airline by Skytrax
• Best Premium Economy Product at the Business Traveller Awards
• World’s Best Business Class Lounge at the 2022 Skytrax World Airline awards

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Sustainable Aviation Fuel (SAF)
• Fleet Transformation
• Community Investment
• Employee Wellbeing

Environmental Achievements

• Operated the world's first 100% SAF transatlantic flight, saving 95 tonnes of CO2.
• Reduced single-use plastic onboard by 90% by the end of 2022.
• Achieved a 30% reduction in CO2 emissions per RTK on LHR-JFK flights compared to competitors.
• 93% of car and light commercial vehicle fleet electric or petrol hybrid by April 2024, 100% by June 2024.

Social Achievements

• Updated gender identity policy allowing crew to choose uniforms regardless of gender.
• Relaxed tattoo policy for all employees.
• Launched Passport to Change, pledging £2.5 million over five years to support STEM initiatives.
• Partnered with various organizations to support STEM education for young people and refugees.
• Named number one on Newsweek’s list of the UK’s Top 100 Most Loved Workplaces for 2022.

Governance Achievements

• Joined SkyTeam alliance, enhancing transatlantic network and customer benefits.
• Completed a £1.5 billion recapitalization.
• Implemented new Cargo Management System for improved digital connectivity.

Climate Goals & Targets

Environmental Challenges

• Decarbonizing the aviation industry.
• Managing supply chain disruptions.
• Maintaining profitability during the COVID-19 pandemic.

Mitigation Strategies

• Investing in a modern, fuel-efficient fleet.
• Utilizing Sustainable Aviation Fuel (SAF).
• Completing a £1.5 billion recapitalization.
• Developing corporate and cargo SAF programs.
• Exploring Direct Air Capture as SAF feedstock.

Supply Chain Management

Responsible Procurement

• Sustainable Restaurant Association (SRA) partnership for ethical sourcing.

Climate-Related Risks & Opportunities

Opportunities

• Development and use of Sustainable Aviation Fuel (SAF).

Awards & Recognition

• Newsweek’s Top 100 Most Loved Workplaces (2022)
• Numerous Skytrax awards (details in report)
• APEX Official Airline Ratings 5* Global Airline Rating (multiple years)
• Other awards listed in the report