Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• People
• Communities
• Customers

Environmental Achievements

• Average improvement in fuel efficiency of 1.5% per year from 2009 to 2020
• CO2 efficiency reached 0.34 kg CO2 per ATK (available tonne kilometers)
• Reduction of 834 trucks compared to July-December 2017 using TMS
• Jet fuel CO2 emissions reduction of 1,299,531 tonnes (-0.62%)
• CO2 emissions reduction of 4,093,521 tonnes (-0.62%)
• Fuel saved of 152 tonnes and CO2 emissions reduction of 479 tonnes through 'No APU after landing'
• Renewal of “Superdreckskëscht fir Betriber” environmental label for the 10th consecutive year
• 27 aircraft modified with LED lights for vertical fin and wing illumination

Social Achievements

• Launched a structured succession planning program
• Launched the first module of its new digital HR suite, dubbed as the HR Hub
• Increased staff satisfaction (84% proud to work for Cargolux, 87% motivated)
• Implemented Pilot Peer-to-Peer Support program
• Introduced lean and agile methodologies, streamlining processes
• Successfully passed GDP Surveillance Audit, validating GDP certification
• Continued cooperation with schools and job fair programs
• Launched a children’s website (kids.cargolux.com)

Governance Achievements

• Implementation of a robust shipment integrity control system tied to ethical supply chain principles
• Reorganized compliance trainings (in-class, webinars)
• Implementation of GDPR measures, including a new hotline
• Updated Export Control, Anti-trust, and Document Retention Policies
• Preparation for ISO 37001 anti-bribery certificate

Climate Goals & Targets

Environmental Challenges

• Global softening in demand in the second half of 2018
• Uncertainty surrounding Brexit, trade wars, and global economic growth
• Increasingly stringent customer requirements and regulations

Mitigation Strategies

• Implementation of flexible business practices to seize market opportunities
• Continued investment in digitalization and expansion of routes and networks
• Focus on developing specialized product portfolio (CV pharma, CV alive, CV precious)
• Introduction of lean and agile methodologies to streamline processes and reduce costs

Supply Chain Management

Responsible Procurement

• Cargolux Procurement Policy
• Standard tender process
• Focus on local suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (core option), UN Global Compact

Certifications: ISO 14001, OHSAS 18001, IOSA, GDP

Third-party Assurance: Ernst & Young Société anonyme

UN Sustainable Development Goals

• SDG 1
• SDG 3
• SDG 4
• SDG 5
• SDG 8
• SDG 9
• SDG 11
• SDG 12
• SDG 13
• SDG 14
• SDG 15
• SDG 16
• SDG 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• CV pharma
• CV alive
• CV precious

Awards & Recognition

• Best All-Cargo Airline (Logistics Management’s Quest for Quality Award)
• Best Performing Cargo Airline (Budapest Airport Awards)
• Ecovadis Gold Rating

Environmental Metrics

ESG Focus Areas

• Health & Safety
• Emissions
• Fuel Efficiency
• Network Efficiency
• Waste Management
• Ethics
• Emergency Preparedness
• Digital & Physical Assets
• Local Community Development
• Inspiration of Future Talents
• Ecosystem of Innovation & Research
• Sustainable Procurement
• Our People

Environmental Achievements

• Achieved its best carbon footprint on record in 2020, down 3% from 2019 (0.482 kg CO2/FTK)
• Reduced CO2 emissions saved (tonnes) by 6,005 tonnes from fuel-saving initiatives
• Reduced lead-free fuel consumption by 7.74%
• Reduced diesel fuel consumption by 13.8%
• Reduced diesel consumption for industrial machines by 14.19%

Social Achievements

• Maintained an air bridge between China and Europe to transport vital supplies at the height of the pandemic
• Organized a garage sale with proceeds donated to several charities
• Many employees converted their year-end cash gift into charitable donations
• Continued to support Tennis Club Senningerberg, and Top Squash Sandweiler

Governance Achievements

• Finalized the integration of the IT department within the company structure
• Introduced a new and improved cyber security program
• Formalized the internal Compliance program, developed in accordance with ISO 37001

Climate Goals & Targets

Environmental Challenges

• Pandemic-related restrictions and upheaval of traditional working patterns
• Increased demand for cargo carriers due to decreased passenger operations
• Sanitary measures, travel restrictions
• Sourcing PPE during the pandemic
• Maintaining mandatory and regulatory training during the pandemic

Mitigation Strategies

• Procured protective equipment
• Implemented working from home and modified shift patterns
• Introduced a monitoring system for flight crew
• Adapted the network to pressing requirements and optimized capacity
• Converted training to digital platforms

Supply Chain Management

Supplier Audits: 67 due diligence assessments in 2020

Responsible Procurement

• Business Partner Vetting External Questionnaire
• New e-Procurement tool (Zycus) implemented
• Consideration of environmental impact of suppliers
• Zero Single-Use Plastic pledge

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards - core option, UN Global Compact

Certifications: ISO 14001:2015, ISO 45001 (HQ)

Third-party Assurance: Verifavia SARL

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• SquAIR timber for animal transport
• 10ft aluminum pallet connectors

Awards & Recognition

• Ecovadis’ Gold Rating
• Cargolux passed its seventh IOSA audit
• 'Socially Responsible Enterprise’ by Luxembourg’s INDR

Environmental Metrics

ESG Focus Areas

• Carbon Footprint
• Fuel Efficiency
• Ethical Practices in Business Relationships
• Training & Development for Employees
• Occupational Health & Safety
• Waste Management
• Employee Welfare
• Diversity and Inclusion
• Compliance & Ethics
• Sustainable Procurement
• Digitalization & Cyber Security
• Local Community Development

Environmental Achievements

• Achieved best carbon performance on record at 0.463 kg/FTK, down 4% from the previous year.
• Launched a Sustainable Aviation Fuel (SAF) program.
• Analysis underway to assess replacement aircraft for the aging 747-400 fleet.

Social Achievements

• Signed the Luxembourg government’s Diversity Charter.
• Implemented a KYC (Know Your Customer) process, the first known airline to do so.
• Continued to support many initiatives, both locally and abroad, to support communities.
• Offered psychological assistance to employees to alleviate mental stress.

Governance Achievements

• Implemented a KYS/KYC (Know Your Supplier/Know Your Customer) process.
• Developed a dedicated cybersecurity unit.
• Reviewed internal policies and updated anti-bribery and anti-corruption policy.
• Approved a new Human Rights commitment.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to sanitary restrictions and border closures.
• High market demand and significant increase in flight movements.
• COVID-19 pandemic and its related restrictions.
• Increased waste due to employees returning to work on-site.

Mitigation Strategies

• Updated protocols in line with WHO recommendations and in-house assessments.
• Implemented stringent sanitary measures, exceeding governmental recommendations.
• Provided employees with monthly COVID kits and self-tests.
• Implemented 24/7 coverage for staff support.
• Worked with service provider to mitigate increased biodegradable waste.
• Introduced a system to monitor the origin of food waste.

Supply Chain Management

Responsible Procurement

• KYS (Know Your Supplier) process
• e-Procurement solution (Zycus) implementation
• Supplier sustainability charter (planned)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and processes

Reporting Standards

Frameworks Used: GRI Standards - Core Option

Certifications: ISO 14001

Third-party Assurance: Verifavia SARL

Awards & Recognition

• Ecovadis’ Gold Rating
• ESR label by INDR

Environmental Metrics

ESG Focus Areas

• Carbon Footprint
• Employee Welfare
• Fuel Efficiency
• Ethical Practices in Business Relationships
• Occupational Health & Safety
• Training & Development for Staff
• Waste Management

Environmental Achievements

• Achieved a carbon efficiency of 0.488 kg CO2/FTK in 2022 despite longer routes and disruptions.
• Saved over 36,000 tons of Jet A1 fuel since 2017.
• Reduced overall waste generated in 2022 compared to 2021.
• Introduced recycled paper throughout the company.

Social Achievements

• Launched a vast anti-harassment and non-discrimination support campaign.
• Donated a total of 3.5 million USD to humanitarian aid in Ukraine and for refugees.
• Held a garage sale, donating proceeds to 8 Luxembourg-based charities.
• Implemented a Pilot Peer Support Program in cooperation with the Mayday Foundation.

Governance Achievements

• Established a dedicated cross-divisional CSR Committee.
• Implemented a new and improved data governance program.
• Adapted its KYC (Know Your Customer) approach.
• Launched a new e-procurement tool, Zycus.

Climate Goals & Targets

Environmental Challenges

• Longer routes and disruptions due to the closure of Russian airspace.
• Difficult market environment with congestion in major European air freight hubs.
• Supply chain issues due to sanitary restrictions in the Far East and the War in Ukraine.
• Constant price increases for procured goods.

Mitigation Strategies

• Agile decisions and long-term partnerships with RFS providers and GHAs.
• Analysis of decarbonizing the RFS network through alternative energy sources.
• Proactive contact with suppliers to get a clear overview of the situation.
• Increased safety stocks when required.

Supply Chain Management

Supplier Audits: 73 due diligence checks; 3 station visits

Responsible Procurement

• Suppliers Sustainability Charter
• KYC process
• New e-procurement tool, Zycus

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, CSRD

Certifications: ISO 14001:2015, Superdreckskëscht fir Betriber

Third-party Assurance: Ernst & Young; Verifavia

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Became the first airline to uplift SAF at Luxembourg airport and the first foreign airline to uplift SAF in China for an intercontinental flight.
• Signed a landmark collaboration and offtake agreement with Norsk E-Fuel for sustainable fuels.
• Launched Aquarius Aerial Firefighting unit to combat wildfires.

Social Achievements

• Signed a new Collective Work Agreement focusing on career advancement and work-life balance.
• Created a Diversity, Equity, and Inclusion working group.
• Implemented a Working From Home Policy and scheme for ground staff in Luxembourg.

Governance Achievements

• Created a dedicated Sustainability unit led by a Chief Sustainability Officer.
• Established a Sustainability Steering Group and supporting Work Groups.
• Adopted a new Sustainability Strategy in 2023.

Climate Goals & Targets

Environmental Challenges

• High costs of Sustainable Aviation Fuel (SAF) and the challenge of recovering these costs from consumers.
• Geopolitical tensions affecting flight paths.
• Increased industrial activity leading to road congestion and bottlenecks.

Mitigation Strategies

• Investing in new and clean technologies to reduce carbon impact and expand customer offerings.
• Implementing a new cargo management system (iCargo) to optimize load factors.
• Introducing a hydrogen-fueled truck for air cargo transport.

Supply Chain Management

Supplier Audits: 98 due diligence checks/year

Responsible Procurement

• Know Your Supplier (KYS) program
• Supplier Sustainability Charter
• Implementation of e-procurement software (Zycus).

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 14001:2015 (EMS), ISO 45001 (OHS)

Third-party Assurance: Ernst & Young Société anonyme

UN Sustainable Development Goals

• SDG 5
• SDG 8
• SDG 13
• SDG 16

Cargolux's initiatives contribute to these goals through various environmental, social, and governance programs.