Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainable tourism

Environmental Achievements

• Air Transat’s fuel consumption was 3.26 liters (8.25 kg of CO2) per passenger/100 kilometers, versus 3.17 liters (8.02 kg of CO2) the previous year.
• Implemented new reduction, reuse and recycling initiatives.
• Seeking LEED-EB certification for Air Transat’s head office and maintenance center in Montreal.
• Implementing an environmental management system with a view to obtaining ISO 14001 certification.
• Integrating 3RV (reduce, reuse, recycle, valorize) principles into our supply strategy.

Social Achievements

• Training in employee coaching has been provided to nearly all managers (more than 500) at all levels.
• Close to 50 employees have undergone assessments aimed at establishing personalized career development plans for them.
• Introduced new programs to reward employees’ efforts and successes (e.g., Vega program).
• Transat, its business units, employees and customers donated approximately $1.8 million to charitable, humanitarian and non-profit organizations.
• Supported eight projects in four countries aimed at preserving cultural heritage, protecting natural sites, helping communities reap economic benefits of tourism, or reducing environmental impacts of tourism.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Rising fuel prices.
• Fluctuating exchange rates.
• Tightening of conditions imposed by air carriers.
• Economic downturn and recessionary conditions affecting certain markets.
• Credit crisis.
• Excess market capacity.
• Competition.

Mitigation Strategies

• Considerable efforts to control costs.
• Air strategy relying on several carriers and various aircraft types, leveraging agreements with third parties.
• Boosted capacity to Europe.
• Measures to improve its product line, move closer to its distribution networks, develop its relationships with the other Transat business units, consolidate agreements with suppliers and optimize its information systems.
• Fuel hedging strategies.
• Strengthening multichannel distribution platform.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Initiated a pilot project aimed at documenting current practices with respect to environmental stewardship, local purchasing, labor relations and community relations.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions

Transition Risks

• Regulations related to greenhouse gas emissions

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

• Canadian Affair earned the distinction “Consumer Favourite Tour Operator” for the fourth year in a row.

Environmental Metrics

ESG Focus Areas

• Sustainable development
• Corporate responsibility
• Sustainable tourism

Environmental Achievements

• Achieved Phase 1 certification under the IEnvA (IATA Environmental Assessment) in June 2014, becoming the first airline in North America to do so.

Social Achievements

• Implemented a comprehensive corporate responsibility program with a report available online.
• Half of senior executives are women.
• Promotes hiring of candidates from minority groups and encourages direct or indirect employment of local personnel at destinations.
• Developed a flexible training offering adaptable to employees’ needs.
• Launched Odyssey program for Canadian managers focusing on key competencies.

Governance Achievements

• Revised Code of Ethics in 2010 and 2015, including commitments related to corporate responsibility.
• Established a whistleblower policy and reporting procedure.
• Adopted a policy amending its Board governance structure to provide for the appointment of a single Lead Director.

Climate Goals & Targets

Environmental Challenges

• Underperformance of Transat’s France operations due to events in North Africa.
• Abundant supply and increased competition on all markets.
• Reduced demand for long-haul flights during winter.
• Steeper decline in demand for medium-haul flights due to terrorism risks.
• Fluctuations in fuel costs.

Mitigation Strategies

• Cost reduction and unit margin improvement program (targeted savings of $45 million in 2015).
• Insourcing of narrow-body aircraft and implementation of Air Transat’s flexible fleet.
• Development of new markets by launching new routes and entering new source markets.
• Improved multichannel distribution strategy, particularly online presence.
• Restructuring of distribution network to improve profitability.
• Conclusion of derivatives to cover a portion of fuel requirements.
• Implementation of fuel surcharges when necessary.

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Best Tour Operator to Canada at the 2015 British Travel Awards (Canadian Affair)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced natural gas consumption by 130,000 m3 per year (30% reduction) at Montreal headquarters, equivalent to 240+ tons of CO2 reduction.
• Air Transat consistently ranked among the best in the Atmosfair Airline Index for fuel efficiency and GHG emission reduction.
• Air Transat offset emissions from two A321neoLR deliveries using SAF and carbon offsets (first carbon-neutral delivery flights in Canadian aviation history).

Social Achievements

• Transat became the first major international tour operator to be Travelife Certified in 2018.
• Transat placed highly on Corporate Knights' Best 50 Corporate Citizens in Canada for several years.

Governance Achievements

• Climate-related issues will be a standing agenda item for Risk Management and Corporate Governance Committee meetings starting in 2021.
• Formalized structure and reporting system for managing climate-related issues.

Climate Goals & Targets

Environmental Challenges

• Increased stakeholder pressure to decarbonize with limited mitigation measures available.
• Government policy-related risks (increased regulations, emissions taxes, emissions trading schemes, reporting requirements).
• Potential reduced demand, reputational risk, cost and availability of decarbonization technology.
• High cost and limited availability of sustainable aviation fuel (SAF).
• Flight shaming movement.
• Potential bans on short-haul flights.
• Restrictions on frequent flyers.
• Increased frequency and severity of extreme weather events.
• Long-term changes in weather patterns and increased precipitation.
• Infrastructure damage from climate change (rising sea levels, severe weather events).

Mitigation Strategies

• Fuel efficiency program (single engine taxi, weight reduction).
• Fleet renewal (A321neoLR aircraft).
• Investment in SAF technology (SAF+ consortium).
• Carbon offsets.
• Train + Plane partnerships.
• Energy-efficient buildings (solar wall, improved HVAC).
• Sustainable transport initiatives for employees.
• Emergency Response Team for severe weather events.
• Integration of climate risk analysis into enterprise risk management and business planning.
• Exploring new vacation destinations less affected by climate change.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Hurricanes, floods, fires
• Sea-level rise
• Changes in weather patterns and precipitation

Transition Risks

• Increased regulations
• Emissions taxes
• Emissions trading schemes
• Reduced demand
• Reputational risk
• Cost and availability of decarbonization technology
• Flight shaming

Opportunities

• Fuel efficiency improvements
• Fleet renewal
• SAF use
• Carbon offsets
• New climate-friendly products and services
• New markets in areas less affected by climate change
• New aircraft and engine technologies

Reporting Standards

Frameworks Used: TCFD

Certifications: Travelife

Third-party Assurance: VERIFAVIA (Scope 1 aircraft emissions only)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Solar Impulse Efficient Solutions Label (SAF+ project)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced natural gas consumption by 130,000 m3 per year (30% reduction) at Montreal maintenance hangar, equivalent to a reduction of 240+ metric tons per year in CO2.
• Fleet renewal with A321neoLR aircraft, emitting 15% less than previous generation aircraft and 50% less NOx and noise.

Social Achievements

• Adoption of a proactive telework policy, significantly reducing real-estate footprint and associated emissions.
• Initiatives to reduce employee emissions by subsidizing public transport, promoting carpooling, encouraging cycling, providing electric charging stations, and reserving parking for low-emission vehicles.

Governance Achievements

• Splitting the Risk Management and Corporate Governance Committee into two separate committees: Risk Management and Corporate Responsibility Committee (RMCRC) and Corporate Governance and Nomination Committee (CGNC) to better define mandates.
• Updated Board skills matrix to include members with relevant experience and expertise in corporate responsibility and climate change.

Climate Goals & Targets

Environmental Challenges

• Increased fuel costs due to taxes or carbon pricing on fossil fuels.
• Increased operational costs due to a direct carbon tax on the aviation industry.
• Limits on license to operate.
• Banning of short-haul flights.
• Heightened reporting requirements.
• Shift in supply and demand with transition to low-carbon economy.
• Damage to brand due to increased public concern about climate change.
• Exposure to litigation.
• Emerging technology aimed at supporting the transition to a low-carbon economy.
• Increased precipitation, wind changes, extreme weather events, temperature change, and sea-level rise impacting operations.

Mitigation Strategies

• Implementation of the airline’s fuel efficiency strategy.
• Advocacy and investments to accelerate the availability and commercial viability of SAF.
• Partnership with TGV InOui for Train + Air Service.
• Investment in emission and fuel efficiency software and development of internal expertise in emissions and fuel reporting.
• Monitoring consumer demand and risks in the supply chain.
• Commitment to adding increasingly fuel-efficient aircraft to our fleet.
• Significant commitments in SAF.
• Development of a comprehensive climate change and environmental sustainability strategy and stakeholder engagement.
• Working with policymakers to identify decarbonization solutions.
• Comprehensive fleet renewal project.
• Emergency management and contingency planning processes and customer support.
• Consideration of extreme weather events in seasonal programming and evaluation of airports.
• Consideration of temperature changes when evaluating new aircraft and engines and during programming and flight planning.

Climate-Related Risks & Opportunities

Physical Risks

• Increased precipitation
• Wind changes
• Extreme weather events
• Temperature change
• Sea-level rise

Transition Risks

• Policy and legal risks (regulations, carbon pricing, SAF mandates)
• Market and reputational risks (customer perception, demand changes)
• Technological risks (SAF availability, aircraft technology)

Opportunities

• Investment in more efficient fleet
• Investment in SAF
• Cost reduction from renewable energy for ground operations
• Investment in carbon offsets, sustainable aviation fuel, and low-emission aviation technology
• Develop/promote low emissions services
• Resource diversification by investing in SAF

Reporting Standards

Frameworks Used: TCFD

Third-party Assurance: VERIFAVIA (for international flights only)

Sustainable Products & Innovation

• Train + Plane service