Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environmental Sustainability
• Social Responsibility
• Corporate Governance
• Employee Well-being

Environmental Achievements

• Reduced carbon emissions through fleet modernization (average fleet age reduced to 5.5 years), fuel-conscious flying practices, and participation in the EU Emissions Trading System.
• Implementation of paperless solutions (Electronic Flight Bag, Crew Pads) to reduce paper waste.

Social Achievements

• Launched the HEART (Hospitable, Efficient, Active, Reliable, Trustworthy) program to define corporate values and guide employee interactions.
• Provided free flights to nearly 300 World War II veterans.
• Supported ill children requiring specialist medical care abroad by providing 110 children and their parents with complimentary air tickets.
• Supported various cultural events and charitable causes.
• Maintained low employee turnover (9.3%).

Governance Achievements

• Continued to maintain exemption from the EU flight ban on Kazakhstani carriers.
• Achieved lifting of frequency restrictions on flights to and from EU destinations.
• Maintained Skytrax 4-Star rating for a third consecutive year.
• Won Air Transport World’s Airline Market Leadership award.

Climate Goals & Targets

Environmental Challenges

• Macroeconomic headwinds in Central Asia and the CIS, including the February 2014 tenge devaluation.
• Slowdown in the Russian and Ukrainian economies due to geopolitical events and falling oil prices.
• Ageing Boeing 757 fleet.
• Safety concerns related to safety oversight in Kazakhstan leading to EU flight ban for other Kazakhstani carriers.

Mitigation Strategies

• Proactive approach to managing the tenge devaluation, including postponement of network expansion and optimization of capacity.
• Increased international fares and transit traffic to boost revenues.
• Launched a charter program to utilize spare capacity.
• Continued investment in fleet modernization and training.
• Development of in-house maintenance capacity.
• Work with the Kazakhstan Civil Aviation Committee to address safety concerns.

Supply Chain Management

Responsible Procurement

• Established procurement rules and guidelines.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: IFRS

Certifications: IOSA, EASA Part 145

Third-party Assurance: KPMG Audit LLP

Awards & Recognition

• Skytrax 4-Star rating
• Air Transport World’s Airline Market Leadership award
• E-Commerce Market Driver award

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2 emissions by 56.4% due to grounded aircraft and reduced flight frequency.

Social Achievements

• Maintained employment levels despite the pandemic, avoiding mass layoffs.
• Named the most attractive employer in Kazakhstan for the fifth consecutive year.

Governance Achievements

• Increased the number of Independent Directors on the Board from 3 to 4.
• Developed and implemented a COVID-19 Crisis Management and Recovery Plan.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic leading to significant reduction in passenger and revenue numbers.
• Grounding of the fleet and suspension of operations.
• Increased demand for refunds.

Mitigation Strategies

• Established a Crisis Management Group and Recovery Group.
• Implemented cost reduction measures, including staff downtime and leave.
• Secured additional liquidity through bank loans.
• Established a new Cargo Division to capitalize on increased cargo demand.
• Negotiated lease payment deferrals and early aircraft returns.

Supply Chain Management

Responsible Procurement

• Transparent and effective procurement process via electronic procurement portal.
• Focus on long-term relationships with suppliers.
• Inclusion of anti-corruption clauses in some contracts.
• Increased participation of local suppliers (36% of procurement budget).

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: OHSAS 18001:2007, IOSA

Sustainable Products & Innovation

• Biodegradable drink stirrers and toothpicks.
• Recyclable plastic cups.
• Bamboo and craft paper amenity kit packaging.

Awards & Recognition

• Skytrax World Airline Awards (Best Airline in Central Asia and India)
• APEX Five Star Major Airline Award
• Tripadvisor Travellers’ Choice Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Developed a Low-Carbon Development Programme (LCDP) for 2023–2032, consistent with Kazakhstan’s aim to achieve carbon neutrality by 2060.
• Invested in a modern, fuel-efficient fleet with lower carbon emissions.
• Implemented fuel-efficient flying training for pilots.

Social Achievements

• Resumed the Stopover Holiday programme for transit passengers, boosting tourism in Kazakhstan.
• Increased salaries for most employees to address high inflation.
• Employee engagement increased to 4.10 out of 5.

Governance Achievements

• Established an Environmental, Social and Governance (ESG) Committee (replacing the CSR Committee).
• Developed an integrated ESG Strategy for 2023–2032, built on best practice and international standards.
• Completed transfer of aircraft registration from Aruba to Ireland.

Climate Goals & Targets

Environmental Challenges

• Civil unrest in Kazakhstan in January 2022.
• Conflict between Russia and Ukraine, causing flight disruptions and supply chain issues.
• Shortage of aviation fuel.
• High inflation.

Mitigation Strategies

• Quickly redeployed employees to crew lifestyle routes.
• Complied with sanctions legislation.
• Increased agility of supply chains.
• Introduced new flights to alternative destinations.
• Negotiated prices with Kazakhstani fuel suppliers.
• Implemented fuel surcharges.
• Increased salaries to compensate for inflation.

Supply Chain Management

Responsible Procurement

• Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Fog, smog, sandstorms
• Snow, ice
• High temperature or high atmospheric pressure

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 45001:2018, ISO 27001

UN Sustainable Development Goals

• SDG 4
• SDG 5
• SDG 8
• SDG 10
• SDG 13
• SDG 17

ESG Strategy aims to contribute to these SDGs through various initiatives.

Awards & Recognition

• Skytrax Award for ‘Best Airline in Central Asia and CIS’ (10th time)
• Skytrax Award for ‘Best Service in Central Asia and CIS’ (1st time)
• Skytrax 4-Star Low-Cost Airline rating for FlyArystan
• APEX Passenger Choice Award for Best Entertainment, Central/Southern Asia

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Health and well-being of employees
• Community Investment
• Diversity & Inclusion
• Corporate Governance

Environmental Achievements

• Reduced CO2 emissions per RPK by 38% since 2016 to 0.076 tonnes in 2023
• Replacing Embraer and older Boeing aircraft with Airbus A320 and A321neos, reducing fuel consumption by up to 20% and CO2 emissions by 20%
• Participating in a research study on sustainable aviation fuel (SAF) in Kazakhstan

Social Achievements

• Increased employee engagement from 4.10 in 2022 to 4.13 in 2023
• Launched ‘Consultation with a psychologist’ employee benefit, with over 1,000 sessions in 2023
• Various community investment initiatives, including stationery donations, travel grants for schoolchildren, and support for medical centers

Governance Achievements

• Successful IPO in February 2024, listing simultaneously on three stock exchanges
• Implemented a robust Compliance Management System, including sanctions screening and whistleblowing lines
• Revised Code of Conduct with added topics on human rights and harassment

Climate Goals & Targets

Environmental Challenges

• High inflation and fallout from the war in Ukraine
• High fuel costs (20% increase)
• Supply chain challenges, including GTF engine recall by Pratt & Whitney
• Increased seasonality in leisure travel
• Geopolitical tensions impacting airspace and oil prices

Mitigation Strategies

• Proactive route planning, cost leadership, and operational agility
• Conservative approach to capital expenditure and variable cost addition
• Sourcing spare PW1100 engines and managing the Airbus NEO fleet
• Restricting personal leave and training for operational crew to low-demand periods
• Developing alternative sourcing strategies
• Fuel hedging (partially)
• Developing a cabin waste management program

Supply Chain Management

Responsible Procurement

• Code of Conduct
• Supplier sustainability requirements (planned)

Climate-Related Risks & Opportunities

Physical Risks

• Natural disasters
• Fog, smog, sandstorms
• Snow, ice
• High temperature or high atmospheric pressure

Transition Risks

• Regulatory changes
• Market shifts related to SAF

Opportunities

• Development of energy-efficient products and services
• Potential for SAF production and use in Kazakhstan

Reporting Standards

Frameworks Used: GRI 2021 Standards, TCFD recommendations, IFRS

Certifications: ISO 45001:2018

Third-party Assurance: Ernst & Young Advisory LLP (limited assurance)

UN Sustainable Development Goals

• SDG 4 (Quality Education)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 10 (Reduced Inequalities)
• SDG 13 (Climate Action)
• SDG 17 (Partnerships for the Goals)

ESG Strategy aligns with these SDGs through various initiatives

Sustainable Products & Innovation

• Biodegradable in-flight products

Awards & Recognition

• Skytrax World Airline Awards: Best Airline in Central Asia and CIS (Air Astana), Best Low-Cost Airline in Central Asia and CIS (FlyArystan)
• APEX Awards: Five Star Major Airline Award, Best entertainment system in Central and South Asia (Air Astana)
• TripAdvisor Travellers’ Choice Award: Regional Airlines in Asia (Air Astana)