Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced CO2e emissions from business travel by 17% in 2019.
• Achieved more than a 17% reduction in Scope 3 GHG emissions (downstream leased assets) since 2014, with a further 10% reduction expected by 2022.
• 58% of the fleet is comprised of new technology aircraft, reducing carbon emissions by as much as 25% compared to previous generation aircraft.

Social Achievements

• Supported a range of charities and ran ~50 initiatives engaging with local communities.
• Introduced AerCap Employee Share Scheme and Approved Profit Sharing Scheme.
• Provided comprehensive medical/dental coverage for employees.

Governance Achievements

• Majority independent board since IPO in 2006.
• No compliance breaches or major lawsuits in 2019.
• No major employee, company, or customer data privacy breaches in 2019.

Climate Goals & Targets

Environmental Challenges

• Transition risk: customer preferences or regulation changes leading to airlines favoring newer aircraft types; environmental regulations and public interest in cleaner travel methods affecting lease rates on current technology aircraft.
• Social risks affecting suppliers' ability to meet delivery obligations.
• Internal social factors impacting talent attraction and retention.

Mitigation Strategies

• Setting a clear target for fleet transformation; purchasing in-demand new technology aircraft; actively selling older aircraft; introducing new technology aircraft to customers; supporting customers' initiatives to transform to a lower-carbon economy; actively communicating ESG strategies.
• Compliance clauses in customer and supplier contracts; working with customers to improve mobility; partnering with communities and OEMs on initiatives.
• Providing industry-leading employee welfare packages; introducing employee equity plans and profit-sharing schemes; promoting charity work.

Supply Chain Management

Supplier Audits: Compliance review of suppliers, including initial KYC check and continuous monitoring.

Responsible Procurement

• Strict anti-bribery and insider-trading policies covering all suppliers.
• Contractually requiring suppliers to meet certain standards and monitoring supplier compliance through multiple channels.

Climate-Related Risks & Opportunities

Transition Risks

• Transition to a lower-carbon economy impacting future demand and residual value of the fleet.

Opportunities

• Fleet transformation to lower-carbon economy providing value to customers and supporting sustainable growth.

Reporting Standards

Frameworks Used: GRI Standards (2016)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• 63% of the fleet comprised of new technology aircraft by the end of 2020 (up from 6% in 2014), significantly reducing Scope 3 GHG emissions.
• Achieved a 57% share of renewable energy in electricity usage across global offices in 2020.
• Reached 25% electric leased cars one year ahead of schedule.

Social Achievements

• Successfully navigated the COVID-19 pandemic without drawing on government support or redundancies.
• Prioritized employee safety and well-being, investing in office infrastructure and implementing flexible working arrangements.
• Sourced and donated almost $500,000 of PPE to public hospitals and healthcare facilities.

Governance Achievements

• Maintained a majority-independent board since IPO in 2006.
• No compliance breaches or major lawsuits in 2020.
• No major employee, company, or customer data privacy breaches in 2020.

Climate Goals & Targets

Environmental Challenges

• Transition risk due to the recovery of the aviation industry being driven by fuel-efficient aircraft and increasing environmental regulations.
• Social risks related to attracting and retaining talent, and increased public scrutiny over social aspects of air travel.
• Governance challenges related to maintaining board independence and effectiveness, and managing information security threats.

Mitigation Strategies

• Setting a clear target for fleet transformation (75% new technology aircraft by 2024).
• Providing industry-leading employee welfare packages and equity plans.
• Maintaining a globally diverse board with a wide array of expertise and implementing robust information security policies and procedures.

Supply Chain Management

Responsible Procurement

• Compliance review of suppliers, including initial KYC check and continuous monitoring.
• Strict anti-bribery and insider-trading policies covering all suppliers.
• Contractually requiring suppliers to meet certain standards and monitoring supplier compliance.

Climate-Related Risks & Opportunities

Transition Risks

• Changes in regulations and market shifts impacting demand and residual value of the fleet.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards: Core option

UN Sustainable Development Goals

• Affordable and Clean Energy
• Decent Work and Economic Growth
• Life on Land

Renewable energy project in Ningxia, China, partially offsets carbon footprint; supports local development and employment.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Governance
• Diversity and Inclusion
• Community Investment
• Employee Wellbeing

Environmental Achievements

• Fleet reached ~66% new technology aircraft, transitioning to a 75% target in 2024. This resulted in a ~20% reduction in emissions intensity from 2014 to 2019.
• Sold 120 older technology aircraft in 2022, improving portfolio risk profile.
• Offset ~60% of Scope 1, Scope 2, and business travel emissions for 2021 (increased from ~40% in 2020), aiming for 100% by 2024.
• ~36% of electricity usage across global offices in 2022 was from renewable energy.

Social Achievements

• Launched Diversity, Equity, Inclusion, and Belonging (DEIB) framework in 2022.
• 47% of new hires in 2022 were women.
• AerCap, together with employees, donated over $800,000 to charities in 2022, focusing on mental health, violence against women prevention.
• Various educational programs supporting the next generation of aviation professionals.

Governance Achievements

• Established a Board-level ESG Committee in December 2021, which met six times in 2022.
• Established a dedicated government affairs function in Brussels in 2022.
• No material compliance breaches or major lawsuits in 2022.

Climate Goals & Targets

Environmental Challenges

• Transition risks due to environmental regulations and public interest in less carbon-intensive travel.
• Attracting and retaining talent in a competitive industry.
• Public scrutiny over social aspects of airlines' behavior.
• Social issues affecting suppliers' ability to meet obligations.
• Growing expectations for ESG reporting from stakeholders.
• Stringent limits on greenhouse gas emissions from aircraft engines.
• Risk of greenwashing accusations.
• Information technology security threats.

Mitigation Strategies

• Fleet transformation strategy towards 75% new technology aircraft by 2024.
• Focus on building a diverse talent pipeline through internal development and external partnerships.
• Attractive employee packages, wellness initiatives.
• Partnering with charities and on social initiatives.
• Establishment of a Board-level ESG Committee.
• Establishment of a Government Affairs function.
• Code of Conduct outlining high standards for employees and partners.
• Top-class IT systems and data protection measures.

Supply Chain Management

Responsible Procurement

• ESG factors incorporated in supplier selection.
• Compliance review of suppliers, including KYC and AML checks.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting air travel demand.

Transition Risks

• Environmental regulations favoring lower-emission aircraft.
• Market shifts towards less carbon-intensive travel.

Opportunities

• Investment in new technology aircraft.
• Partnerships on SAF and hydrogen development.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO (AerCap Materials)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 13 (Climate Action)
• Goal 17 (Partnerships for the Goals)

AerCap's initiatives contribute to these goals through investments in renewable energy, support for emerging markets, diversity and inclusion programs, climate action initiatives, and partnerships with various organizations.

Sustainable Products & Innovation

• New technology aircraft with improved fuel efficiency.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Diversity & Inclusion
• Governance
• Community Engagement
• Sustainable Aviation Fuel (SAF)

Environmental Achievements

• Improved Scope 3 emissions intensity, achieving a 15% reduction in gCO2 per seat/km across the entire fleet in the last decade despite doubling in size through M&A.
• ~70% of owned commercial aircraft fleet consisted of new technology aircraft by the end of 2023.
• Purchased 80 new technology aircraft and sold 74 older technology aircraft in 2023.
• ~49% of electricity usage across global offices in 2023 was from renewable sources.

Social Achievements

• 50% of new hires in 2023 were female.
• Donated over $800,000 to charities and partnerships in 2023.
• Conducted focus groups and training sessions on Diversity, Equity, Inclusion, and Belonging (DEIB).

Governance Achievements

• ESG rating upgraded to 'AA' by MSCI and 'Low Risk' by Morningstar Sustainalytics.
• Board-level ESG Committee met four times in 2023.
• No material compliance breaches or major lawsuits in 2023.

Climate Goals & Targets

Environmental Challenges

• Indirect physical risks from severe weather events impacting air travel demand.
• Indirect transition risks from stricter emission limits and public preference for less carbon-intensive travel.
• Supply chain constraints impacting access to efficient aircraft.
• Growing public scrutiny over social aspects of airlines' behavior.

Mitigation Strategies

• Supporting customers' fleet renewal plans with new technology aircraft.
• Actively engaging policymakers and industry on regulatory developments.
• Exploring ways to encourage the scale-up of SAF.
• Investing in new technology aircraft (~$50 billion since 2014).
• Developing DEIB framework and initiatives.
• Partnering with charities and organizations to address social issues.

Supply Chain Management

Supplier Audits: Compliance review of all suppliers, including initial KYC and AML checks and continuous monitoring.

Responsible Procurement

• ESG factors incorporated in supplier selection processes, preference for local suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events impacting air travel demand.

Transition Risks

• Stricter emission limits, public preference for less carbon-intensive travel, affecting lease rates and residual values of older aircraft.

Opportunities

• Fleet renewal with fuel-efficient aircraft, sustainable finance opportunities, emerging technologies.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO certified (AerCap Materials)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

AerCap supports several UN SDGs through its strategy and actions (detailed in report).

Sustainable Products & Innovation

• New technology aircraft, P2F conversion programs.

Awards & Recognition

• Not disclosed