Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reducing energy usage in facilities, reducing business travel impact, managing e-waste, water conservation, pollution certificate etc.
• Progressively transitioning its fleet with an average age of 4 to 5 years to the newest and most fuel-efficient aircraft
• Implementing the 3Rs (Reduce, Reuse, Recycle) on board and across the entire fleet
• Collaborating with Bee’ah to enhance recycling and waste disposal
• Adopting a policy of adding only brand-new aircraft to reduce emissions

Social Achievements

• Implementing an award-winning corporate social responsibility (CSR) program, Charity Cloud, providing sustainable education and healthcare initiatives in underprivileged communities
• Renovating homes of those in need in collaboration with Sharjah Social Empowerment
• Visiting orphanages and homes for the elderly in India and Egypt
• Facilitating the children’s cancer clinic in Egypt

Governance Achievements

• Issuing a corporate governance manual covering shareholder communication, code of ethics, share dealing policy, and whistle-blowing policy
• Establishing an Internal Control Department to ensure compliance with policies and procedures
• Forming an Audit Committee responsible for risk management and overseeing insider trading
• Forming a Nominations and Remuneration Committee to manage board nominations and remuneration policies

Climate Goals & Targets

Environmental Challenges

• Continued impact of the COVID-19 pandemic on the aviation industry
• Geo-political challenges in Europe impacting operations
• Fluctuating oil prices adding uncertainty

Mitigation Strategies

• Taking measures to control overall costs and enhance cash position
• Resuming operations where possible
• Adopting further measures to improve the overall cost structure of the group

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, DFM ESG disclosure guidance

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Maintaining a young, fuel-efficient fleet (average age 4-5 years)
• Implementing fuel-saving operational techniques
• Recycling initiatives in offices and aircraft (approximately 6000 kg of materials recycled monthly)
• Collaboration with Bee'ah for waste management and recycling

Social Achievements

• Charity Cloud program providing aid to underprivileged communities
• Community engagement initiatives in multiple countries
• Low employee turnover ratio due to successful retention policy
• Emiratization program to attract and train Emirati talent

Governance Achievements

• Strong, independent Board of Directors with diverse skills and experience
• Established Code of Conduct covering ethics and human rights
• Annual employee engagement surveys to assess ethical conduct, diversity, and human rights
• Transparent shareholder communication through various channels

Climate Goals & Targets

Environmental Challenges

• Oil price volatility
• Supply chain shortages
• Challenges in incorporating Sustainable Aviation Fuel (SAF) due to cost, availability, and technology

Mitigation Strategies

• Adopting a fleet strategy of new, fuel-efficient aircraft
• Implementing fuel-saving procedures and weight reduction measures
• Exploring SAF as a future fuel alternative
• Continuous investment in technology to improve efficiency and reduce costs

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards, UAE’s Vision 2021, UN Sustainable Development Goals (SDGs)

Awards & Recognition

• Airline of the Year at Air Transport Awards 2022
• Most Punctual Airline in 2021 at Moscow Domodedovo Airport
• Four-Star Low-Cost Carrier 2022 rating by APEX

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability
• Social Responsibility
• Governance

Environmental Achievements

• Fleet renewal program with deliveries of 120 new Airbus A320 family aircraft scheduled to commence in 2025, ensuring one of the youngest, safest, and most fuel-efficient fleets.
• Implementation of fuel-saving operational techniques, resulting in savings of 8,478,208 kg of fuel.
• Introduction of biodegradable and recyclable cutlery and packaging on all flights (from November 1, 2023) and 100% recyclable water bottles.

Social Achievements

• 27% rise in annual net profit to a record AED 1.5 billion.
• 14% increase in turnover to AED 6 billion.
• 31% increase in the number of passengers carried to 16.7 million.
• Addition of 26 new routes to the global network.
• Female hire rate at 45%.
• Reduction of the employee turnover rate by 3.8%.
• Over 33,000 training hours conducted in 2023 (a 22.35% increase compared to 2022).
• Establishment of two new medical clinics in Egypt and Tajikistan under the “Charity Cloud” project.
• Zero identified leaks, thefts, or losses of customer data.
• Zero fatalities as a result of work-related ill health.

Governance Achievements

• Robust corporate governance structures emphasizing ethical business practices and risk management.
• Integration of ESG considerations into decision-making processes at all levels.
• Impeccable workplace safety record with no work-related injuries in the past three years.
• Zero substantiated complaints concerning breaches of customer privacy and losses of customer data over the past three years.

Climate Goals & Targets

Environmental Challenges

• Global aviation industry challenges arising from geopolitical factors, prolonged supply chain disruptions, and increased operating costs.
• Climate-related events such as extreme weather patterns that can disrupt airline operations.
• Climate-related hazards posing safety risks.
• Infrastructure vulnerability to climate-related impacts.
• Financial implications of climate-related events.
• Regulatory compliance with emissions reduction, carbon pricing, and environmental reporting.
• Reputation and brand image impact from climate-related incidents.

Mitigation Strategies

• Maintaining a young, advanced, fuel-efficient fleet.
• Implementing fuel-saving operational techniques.
• Optimizing ground transportation planning.
• Incorporating technology and innovation to reduce aircraft noise and emissions.
• Developing operational procedures for overall air quality.
• Recycling from offices, operational facilities, and staff accommodation.
• Comprehensive waste management processes and compliance with regulations.
• Designing solutions to reduce plastic use and other waste from inflight service.
• Ongoing innovation and collaboration to further reduce environmental footprint while enhancing operational efficiency.
• Engagement with stakeholders, setting ambitious targets, and regularly monitoring progress to ensure sustainability objectives are met.

Supply Chain Management

Responsible Procurement

• Preference given to local suppliers.
• Introduction of biodegradable and recyclable cutlery and packaging.
• Introduction of 100% recyclable water bottles.
• Tire restoration and recycling program.
• ESG integration in supplier selection through Total Cost of Ownership (TCO) evaluation.
• Supplier Portal integrating ESG requirements.
• Digital procurement and contracting processes.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather patterns
• Storms
• Heatwaves

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Use of Sustainable Aviation Fuel (SAF)

Reporting Standards

Frameworks Used: GRI Standards (published from 1 January 2023 onwards), Dubai Financial Market’s (DFM) ESG metrics

UN Sustainable Development Goals

• SDG 7: Affordable and Clean Energy
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 11: Sustainable Cities and Communities
• SDG 12: Responsible Consumption and Production
• SDG 13: Climate Action
• SDG 14: Life Below Water
• SDG 15: Life on Land
• SDG 17: Partnerships for the Goals

Air Arabia aligns its strategies and practices with these SDGs through initiatives such as fleet modernization, operational efficiency improvements, waste reduction, and community investment.

Sustainable Products & Innovation

• Biodegradable and recyclable cutlery and packaging
• 100% recyclable water bottles

Awards & Recognition

• Low-Cost Airline of the year (Airline Weekly)
• Low-Cost Airline of the year (Aviation Achievement Awards 2023)
• Budget Airline of the Year (Aviator Middle East Awards 2023)
• Fly Jinnah tops Pakistan Civil Aviation ranking for outstanding punctuality and regularity

Environmental Metrics

ESG Focus Areas

• Corporate Social Responsibility
• Sustainability
• Efficient Operations
• Environmentally Friendly Practices
• Community Support
• Corporate Governance

Environmental Achievements

• Not disclosed

Social Achievements

• Charity Cloud program: built and operates over 15 schools and clinics in 12 countries, treats over 30,000 patients yearly, and provides education for over 1,000 students yearly.

Governance Achievements

• ESG matters are important considerations in corporate governance systems at every organizational level.

Climate Goals & Targets

Environmental Challenges

• Prolonged supply chain challenges impacting costs related to engines, spare parts, staffing, and other areas.
• Higher fuel prices.
• Currency fluctuations in key markets.
• Escalating geopolitical tensions.

Mitigation Strategies

• Focus on driving efficiency higher and costs lower.
• Commitment to serving more customers through a multi-hub business model.

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