Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Tourism
• Waste Management
• Diversity & Inclusion
• Community Engagement
• Supplier Sustainability

Environmental Achievements

• Exceeded target of transitioning 24 million single-use plastic items to lower-impact alternatives, expanding to 55 million items.
• Saved 15,084 tonnes of CO₂-e through the Carbon Reduction Programme.
• Saved 8,322 tonnes of CO₂-e by switching to ground power at airports.
• Reinjected more than 280 tonnes of product into the network through Project Green.
• Reduced fuel use and emissions by investing in a modern, fuel-efficient fleet.

Social Achievements

• Increased proportion of women in Senior Leadership Team from 39% to 44%.
• Awarded the inaugural Diversity & Inclusion Team Award from IATA.
• Launched Project Mana to improve literacy levels and develop skills for employees.
• Won the 'Worksafe New Zealand/ACC best overall contribution to improving workplace health and safety' award.
• Supported 164 students from 10 schools through Airpoints™ for Schools programme.

Governance Achievements

• Signed up as a supporter of the Task Force on Climate-related Financial Disclosures (TCFD).
• Achieved positive assurance from suppliers representing 93.2% of procurement spend that they meet the Supplier Code of Conduct.
• Launched Air New Zealand’s Tūhono Supplier Awards to recognize supplier contributions.

Climate Goals & Targets

Environmental Challenges

• Climate change remains the single biggest sustainability challenge.
• Lack of readily available aviation biofuels in New Zealand.
• Increasingly volatile weather patterns affecting flights.
• Lack of composting and recycling infrastructure in New Zealand.
• Complexity of offshore catering supply chain.

Mitigation Strategies

• Investing in modern, fuel-efficient aircraft.
• Implementing fuel savings measures and improving flight operations efficiency.
• Exploring biofuel production and new propulsion technologies.
• Increasing use of ground power to save fuel.
• Working with suppliers to reduce waste and plastic packaging.
• Implementing Project Green to divert waste from landfill.
• Partnering with Waste Management NZ Limited for waste management.

Supply Chain Management

Supplier Audits: 93.2% of suppliers provided positive assurance of meeting the Supplier Code of Conduct.

Responsible Procurement

• Supplier Code of Conduct based on UN Global Compact principles.
• Sustainability considerations incorporated across procurement lifecycle.

Climate-Related Risks & Opportunities

Physical Risks

• Increasingly volatile weather patterns

Transition Risks

• Lack of readily available aviation biofuels
• Regulatory changes

Opportunities

• Development of energy-efficient products
• New propulsion technologies

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Task Force on Climate-related Financial Disclosures (TCFD)

Certifications: Qualmark Gold (for tourism partners), Gender, Rainbow and Accessibility Ticks

UN Sustainable Development Goals

• Several UN SDGs are mentioned but not explicitly listed

Air New Zealand's Sustainability Framework is aligned with the UN Sustainable Development Goals.

Sustainable Products & Innovation

• Compostable inflight products

Awards & Recognition

• IATA Diversity & Inclusion Team Award
• New Zealand’s Most Attractive Employer award

Environmental Metrics

ESG Focus Areas

• Caring for our people & communities
• Tackling climate change & carbon emissions
• Championing sustainable tourism & regions
• Strengthening sustainable supply chains & reducing waste

Environmental Achievements

• Reduced carbon emissions by 19 percent due to reduced flights from Covid-19.
• Improved fuel efficiency by more than 18.3 percent since 2009 (though some gains were eroded in 2020 due to engine issues and Covid-19).
• Removed 55 million single-use plastic items from operations.
• Auckland Airport distribution center awarded a 5-Star Green Star NZ – Industrial Design certified design rating.

Social Achievements

• Launched Carepoints™ program, enabling Airpoints™ members to donate to charities.
• Supported several volunteering activities through the Greenteam.
• Increased the proportion of women in senior leadership positions to 51 percent.
• 17 percent of leaders are now of Māori or Pasifika descent.
• Supported domestic tourism and maintained cargo trade links during Covid-19.
• Donated surplus inflight goods to local communities.
• Provided career transition support to employees impacted by redundancies.
• Implemented wellbeing resources for employees during Covid-19.

Governance Achievements

• Established a Sustainability Executive Steering Group.
• Full Executive will meet monthly to discuss decarbonisation plans and sustainability agenda.
• Sustainability Advisory Panel provides independent guidance.
• Board of Directors oversees climate-related risks and opportunities through the Audit and Risk Committee.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic significantly impacted operations and reduced flying demand, leading to redundancies.
• Rolls-Royce Trent engine issues affected fleet substitution and fuel efficiency.
• Challenges in obtaining consistent waste data due to operational changes and increased use of non-recyclable PPE.
• Limited supply of permanent New Zealand native forestry offsets for carbon offsetting.
• Palm oil identification in the supply chain remains challenging due to labeling issues.

Mitigation Strategies

• Worked with unions and employees to minimize redundancies.
• Implemented measures to support employees exiting the business.
• Maximized internal secondment opportunities.
• Provided reskilling courses and career transition support.
• Focused resourcing on strategic suppliers for Supplier Code of Conduct assurance.
• Refreshed Palm Oil Position Statement with updated RSPO principles.
• Inserted contractual obligations in catering agreements to ensure palm oil compliance.
• Continued Project Green to reduce waste and improve supply chain efficiencies.
• Encouraged and supported the Aotearoa Circle's report on native forests.

Supply Chain Management

Supplier Audits: 94.2% of suppliers provided positive assurance of Supplier Code of Conduct.

Responsible Procurement

• Supplier Code of Conduct
• Contractual obligations for palm oil compliance in catering agreements

Climate-Related Risks & Opportunities

Physical Risks

• Devastating climate-related weather events (mentioned generally)

Transition Risks

• Need for sustainable alternative fuels and infrastructure; policy settings to ensure commercial viability.

Opportunities

• Development of sustainable alternative fuels; next-generation aircraft technologies; creating skilled jobs; more resilient fuel supply chains.

Reporting Standards

Frameworks Used: UN Sustainable Development Goals (SDGs), Taskforce for Climate Related Financial Disclosures (TCFD)

Certifications: Gender, Rainbow and Accessibility Ticks, IEnvA stage 2 certification (extended scope in 2020), 5-Star Green Star NZ – Industrial Design (Auckland distribution center)

UN Sustainable Development Goals

• Nine unspecified SDGs

The Sustainability Framework is aligned with the UN SDGs.

Awards & Recognition

• Deloitte 200 Sustainable Business Award (2019)

Environmental Metrics

ESG Focus Areas

• Caring for New Zealanders
• Climate action
• Driving towards a circular economy
• Sustainable tourism

Environmental Achievements

• 52.6 percent reduction in single-use fossil-fuel-derived plastic items across all cabins on international flights, removing over 38 million single-use plastic items.
• Reduced carbon intensity (gCO2–e/RTK) by 21 percent compared to 2022.

Social Achievements

• Air New Zealand’s Engagement Index score of 71 (June 2023), up from 68 in May 2022.
• Launched ‘Join our whānau’ campaign to highlight roles and attract new employees.
• Increased start rate at Airports to $30 per hour.
• Improved employee induction and onboarding experience, enhanced Staff Travel and Parental Leave benefits, and provided support to vulnerable employees.

Governance Achievements

• Appointment of Kiri Hannifin as the airline's first dedicated Chief Sustainability Officer.
• Implementation of a new Risk Appetite Statement, including a section dedicated to climate change.
• Incorporation of progress against the 2030 science-based carbon reduction target into the Short-Term Incentive Scheme.

Climate Goals & Targets

Environmental Challenges

• Supply chain issues, staff shortages, rising inflation costs, and significant weather events impacting operations and customers.
• Significant increase in carbon emissions compared to 2022 due to increased operations after Covid-19 restrictions.
• Challenges in increasing waste diversion from landfill due to operational challenges, limited recycling infrastructure, and commercial viability of circular innovations.
• Limited access to and high cost of Sustainable Aviation Fuel (SAF).

Mitigation Strategies

• Implementation of the airline’s decarbonisation strategy, including operational efficiency improvements, fleet renewal, investment in SAF, and advocacy for next-generation aircraft.
• Development of an Air New Zealand-specific tool to measure emissions for corporate and cargo customers (launching in September 2024).
• Enhancements to the Voluntary Emissions Contribution Programme for retail customers.
• Conducting waste audits to gain insights into waste profiles and develop a new waste strategy in 2024.
• Launching a more sustainable serviceware offering on international flights.
• Advocacy for government support for SAF adoption and domestic production.
• Partnership with the New Zealand government to explore domestic SAF production.
• Engagement with various organizations to support SAF development and deployment.
• Piloting an internal carbon tax on select routes to fund sustainability initiatives.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Partnership with Whāriki, Amotai, Aotea, and The Hood & Co.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, cyclones)
• Sea level rise
• Changing precipitation patterns

Transition Risks

• New or increased regulation
• Changing consumer behavior
• Limited SAF supply and high costs
• Delayed next-generation aircraft technology
• Lack of government support for SAF and next-generation aircraft

Opportunities

• Development of energy-efficient products
• Investment in SAF and next-generation aircraft technologies

Reporting Standards

Frameworks Used: Aotearoa New Zealand Climate Standards (NZ CS), Global Reporting Initiative (GRI) Standards 2021, Sustainability Accounting Standards Board Standards for the Airline Industry (SASB), Taskforce on Climate-related Financial Disclosures (TCFD)

Certifications: IEnvA stage 2 certification

Third-party Assurance: Deloitte Limited (limited assurance on Scope 3 emissions)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 12 (Responsible consumption and production)
• Goal 11 (Sustainable cities and communities)
• Goal 17 (Partnerships for the goals)

Air New Zealand's Sustainability Framework and initiatives contribute to these SDGs.

Sustainable Products & Innovation

• More sustainable serviceware
• New uniform (in development)

Awards & Recognition

• Airline of the Year (AirlineRatings.com)
• Most Attractive Employer (Randstad)