Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental, Social, and Governance (ESG)

Environmental Achievements

• Voluntarily began tracking and reporting emissions in accordance with CORSIA methodology in 2020

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Challenging airfreight environment in 2019
• Spread of the novel coronavirus creating ongoing uncertainty
• Global trade flows are typically seasonal
• Potential for increased insurance costs
• Some aircraft deployed in potentially dangerous locations
• Risks of increased labor costs and work interruption or stoppage
• Violation of government procurement rules and regulations
• Unanticipated costs from lawsuits and claims
• Fuel availability and price volatility
• Reliance on third parties for essential services
• Significant data breach or disruption of IT systems
• Limited ability to utilize net operating loss carryforwards
• Operating in multiple jurisdictions and subject to various taxes

Mitigation Strategies

• Managing costs and aligning resources with strategic priorities
• Risk-based security program
• Insurance pooling arrangement with DHL and partners
• Cyber business interruption insurance
• Cost saving and productivity enhancing initiative called “Continuous Improvement”
• Implementing business resiliency and cybersecurity measures
• Initiatives to mitigate the impact of coronavirus disruptions

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: Null

Certifications: Null

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

• Responsible Business Growth
• Environmental Stewardship
• Career, Culture & Equity for Our People
• Social Impact & Community Engagement

Environmental Achievements

• Completed a transoceanic sustainable aviation fuel (SAF) test flight powered by a blend of fuel containing SAF sourced from fresh vegetable oil. SAF has been shown to reduce carbon emissions by up to 80%.
• Began voluntary tracking and reporting emissions in accordance with CORSIA.
• Continued to upgrade our fleet. Our Boeing 747-8F and 777F aircraft are approximately 15% more fuel efficient (which translates to approximately 15% lower CO2 emissions) and also run quieter than previous-generation 747 aircraft.

Social Achievements

• Strengthened our commitment to the employee experience through the launch of our Elevate Atlas initiative, which is focused on elevating our employees’ quality of work life.
• Enhanced our diversity, equity and inclusion (DEI) strategy through the formation of two DEI Councils – Employee Council and Executive Council.
• Transported critical personal protective equipment and e-commerce deliveries around the world, including support for FEMA relief missions and donations to various organizations.

Governance Achievements

• Added environmental and sustainability matters to the purview of the Board of Directors’ Nominating and Governance Committee.
• Created a new role, Director of Corporate Social Responsibility.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic
• Racial injustice and inequality
• Limited availability and high cost of sustainable aviation fuel (SAF)

Mitigation Strategies

• Implemented comprehensive COVID-19 protocols.
• Formed a cross-functional team to initiate a strategic DEI plan.
• Participated in industry efforts to expand the use of SAF and completed a transoceanic SAF test flight.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: CORSIA

Awards & Recognition

• Corporate Secretary magazine awards
• 2020 Women on Boards top rating
• The Responsible 100

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Career, Culture & Equity for Our People
• Social Impact & Community Engagement
• Responsible Business Growth

Environmental Achievements

• Reduced fuel consumption by 16% with new Boeing 747-8 freighters compared to previous models.
• Ordered four new Boeing 777-200LRFs, which are more fuel-efficient.
• 10% of vehicle fleet converted to hybrid and electric vehicles, with plans to increase to 50% by 2030.
• 6% of equipment is electric or hybrid, with plans to replace all propane and diesel forklifts with electric alternatives.

Social Achievements

• Strengthened culture of diversity, equity, and inclusion.
• Launched ELEVATE program to improve employee quality of life.
• Supported U.S. military’s Afghanistan evacuation efforts.
• Supported Operation Airlift India with medical supplies transport.
• Provided disaster relief donation to Kentucky tornado victims.

Governance Achievements

• Received 2021 Corporate Governance Award for Best Proxy Statement – Small Cap.
• Completed comprehensive review of Employee Handbook.
• Joined Kentucky Sustainable Aviation Fuel Coalition.

Climate Goals & Targets

Environmental Challenges

• Climate change and its impact on fuel costs and regulations.
• COVID-19 pandemic and its impact on operations and employee well-being.
• Attracting and retaining a diverse workforce in the aviation industry.
• Managing aircraft noise in densely populated areas.

Mitigation Strategies

• Investing in fuel-efficient aircraft and exploring sustainable aviation fuel (SAF).
• Implementing comprehensive COVID-19 protocols and supporting employee health and well-being.
• Implementing diversity, equity, and inclusion initiatives and workforce development programs.
• Working with aviation organizations and regulators to mitigate aircraft noise.

Supply Chain Management

Responsible Procurement

• Vendor due diligence and related policies and procedures.

Climate-Related Risks & Opportunities

Physical Risks

• Weather-related route choices
• Airport weather conditions

Transition Risks

• Increased carbon costs
• Regulations addressing climate change
• Availability and price of low/zero carbon fuels

Opportunities

• Increased demand for airfreight in some markets (e.g., emergency relief).

Reporting Standards

Frameworks Used: TCFD, SASB

Certifications: IATA Operational Safety Audit (IOSA), IATA CEIV Pharma (Atlas Air and Polar)

UN Sustainable Development Goals

• Goal 9: Industry, Innovation and Infrastructure

Awards & Recognition

• Cigna Well-Being Award
• 2021 Corporate Governance Award for Best Proxy Statement – Small Cap

Environmental Metrics

ESG Focus Areas

• Environmental Stewardship
• Career, Culture & Equity for Our People
• Social Impact & Community Engagement
• Responsible Business Growth

Environmental Achievements

• Formalized carbon emissions reduction goal to reduce Scope 1 emissions by 20% by 2035.
• Introduced four new, fuel-efficient Boeing 747-8F freighters and announced the purchase of four new Boeing 777-200LRFs.
• Reduced carbon emissions in ground operations by 272 metric tons of CO2 compared to 2021 (due to electric forklift transition).

Social Achievements

• Introduced new DEI training; enhanced employee engagement initiatives; expanded internal initiatives and external partnerships to grow diverse talent pipeline.
• Expanded Pathway to Success Program for pilot recruitment, training, and hiring with a focus on equitable and affordable access.
• Launched LIFT, a new employee development program.

Governance Achievements

• Completed a comprehensive review of the Employee Handbook.
• Launched a next-generation security awareness training program.
• Made progress on key advocacy initiatives: advancing sustainability, bolstering the aviation workforce, and supporting global trade.

Climate Goals & Targets

Environmental Challenges

• Increased interest from stakeholders to disclose environmental impact.
• Climate change and its impact on fuel efficiency and operational costs.
• Limited availability and high cost of sustainable aviation fuel (SAF).
• Nationwide and industrywide labor shortage.
• Evolving international airline regulations.

Mitigation Strategies

• Improving operational efficiencies to produce fuel savings.
• Investing in an increasingly efficient aircraft fleet.
• Expanding SAF procurement.
• Developing contracts with fuel providers.
• Implementing standard operating procedures to improve the recruiting process.
• Actively engaging in discussions to develop contracts with fuel providers and other fuel partners to address customers’ growing interest in SAF.
• Investing in FuelPlus software for SAF tracking.
• Working with industry peers and associations to advocate for policies that reward industries for developing new technologies and for the use of lower-impact fuel sources.

Supply Chain Management

Responsible Procurement

• Increasing support of woman-owned, veteran-owned, service-disabled-owned, disadvantaged, HUBZone and small businesses.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Airport weather conditions

Transition Risks

• Additional carbon costs
• Regulatory changes
• Market shifts

Opportunities

• Increased demand for airfreight in some markets (e.g., emergency relief)

Reporting Standards

Frameworks Used: TCFD, SASB, CORSIA

Certifications: IOSA, ENERGY STAR

UN Sustainable Development Goals

• Not disclosed

Awards & Recognition

• O’Hare Noise Compatibility Commission’s Fly Quiet Recognition Award (2022)

Environmental Metrics

ESG Focus Areas

• Reducing Emissions from Aviation
• Reducing Resource Consumption
• Limiting Aircraft Noise
• Employee Experience
• Safety & Security
• Labor Relations
• Community Impact & Philanthropy
• Global Prosperity
• Corporate Governance
• Ethics & Integrity
• Compliance
• Data Privacy & Cybersecurity
• Public Policy Advocacy

Environmental Achievements

• Saved nearly 36,000 metric tons CO2 and more than 3.7 million gallons of fuel by utilizing and tracking fuel-saving best practices.
• Announced a partnership with customer Inditex to incorporate 5% SAF (produced by Repsol) for all flights departing from Zaragoza Airport in Spain.
• Launched the Sustainable Engine Alliance with key partners Kuehne+Nagel and SR Technics Group.
• Implemented a Lean Management 5S program at Cincinnati/Northern Kentucky facility to enhance workflow efficiency, reduce errors and minimize waste.

Social Achievements

• Total number of injuries across operations decreased for the third consecutive year.
• Launched ELEVATE Atlas initiative to support ongoing professional development of employees.
• Established a new employee resource group (PRISM) for LGBTQ+ employees.
• Offered early-career pilots the opportunity to gain experience with 737 aircraft through Pathway to Success program.
• Provided philanthropic support to several veterans’ organizations, including K9s For Warriors.

Governance Achievements

• Appointed Richard Broekman as Head of Sustainability with board-level responsibility.
• Incorporated sustainability into Board committee structure and executive remuneration targets.
• Partnered with the Cybersecurity & Infrastructure Security Agency (CISA) to join the Joint Cyber Defense Collaborative (JCDC).

Climate Goals & Targets

Environmental Challenges

• Year-over-year increase in Scope 1 emissions due to fleet expansion and increased block hours.
• Limited availability, adoption, and price competitiveness of SAF.
• Need for greater production of SAF to decarbonize the aviation sector.

Mitigation Strategies

• Developed a comprehensive, cross-functional decarbonization plan focusing on SAF use, operational efficiencies, and fleet modernization.
• Actively engaged in discussions with fuel providers and partners to scale up SAF use.
• Advocating for policies to increase SAF production through participation in various coalitions and organizations.
• Implementing dynamic routing practices and continuing to reduce zero fuel weight error to further reduce aircraft emissions.
• Investing in hybrid and electric fleet vehicles.

Supply Chain Management

Responsible Procurement

• Spending nearly $240 million with small businesses in 2023; almost doubled spending goal for veteran-owned small businesses.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events impacting flight operations and airport conditions.

Transition Risks

• Increased carbon costs and regulatory changes impacting demand and operational costs.

Opportunities

• Increased demand for airfreight in some markets due to extreme climatic events.

Reporting Standards

Frameworks Used: TCFD, SASB

Awards & Recognition

• Aviation Week Laureate Award for Sustainable Engine Alliance