Climate Change Data

Air China Limited

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:22,791,000 tonnes
Scope 1 Emissions:2,260.8 tonnes
Scope 2 Emissions:18.3 tonnes
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:274,869.5 MWh
Water Consumption:5,268,000 tonnes
Waste Generated:1,338 tonnes (hazardous) + 4,015 tonnes (kitchen) + 6,400,000 tonnes (industrial)
Carbon Intensity:1,058.7 g/tonne-km

ESG Focus Areas

  • Safety Development
  • Green Operations
  • Quality Service
  • Employee Development
  • Community Responsibility
  • Responsible Governance
  • Climate Change Response and Carbon Reduction

Environmental Achievements

  • Achieved a year-on-year reduction in carbon emission intensity.
  • Completed the replacement of in-flight supplies listed in the plastic phase-out inventory.
  • Reduced fuel consumption through various measures (optimizing altitudes and extra fuel in flight plans, controlling aircraft weight, optimizing flight routes and paths, implementing mobile map applications, replacing APUs with alternative facilities).
  • Successfully completed the first commercial passenger flight of a wide-body aircraft using a 10% blend of domestically produced SAF.

Social Achievements

  • Improved passenger's overall satisfaction (88.4 points).
  • Maintained a high flight execution rate (99.2%).
  • Achieved 100% passenger complaint handling rate.
  • Implemented various employee wellbeing initiatives (EAP hotline, psychological training for frontline managers, heat-relieving care activity, rest and recuperation program for excellent employees).
  • Invested RMB 42.17 million for 20 assistance projects in rural revitalization.
  • Provided volunteer teaching hours (3,303 hours in Zhaoping County and 79 hours in Sonid Right Banner).

Governance Achievements

  • Improved corporate governance structure by separating the Board's Nomination and Remuneration Committee.
  • Optimized the staffing of the Board's various professional committees.
  • Improved the compliance management system and conducted multiple corporate compliance practices.
  • No lawsuits related to corruption, bribery, fraud, or money laundering.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon peaking and carbon neutrality.
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Significantly reduce the consumption intensity of disposable plastic products by 2025 compared with 2020.

Environmental Challenges

  • Stringent emission requirements imposed by new climate-related laws and regulations.
  • High price of sustainable aviation fuel (SAF).
  • Extreme weather events affecting flight operations.
  • Potential reputational risk from failure to effectively implement carbon emission reduction efforts.
Mitigation Strategies
  • Developed plans for a low-carbon development path.
  • Established short-term, medium-term, and long-term carbon peaking and carbon neutrality goals and strategies.
  • Explored and optimized greenhouse gas (GHG) emission reduction paths.
  • Developed special emergency rescue plans to deal with extreme weather.
  • Adjusted flight plans promptly.
  • Strengthened cooperation with industry associations and research institutions to explore the research and application of SAF.
  • Established communication methods to receive complaints and feedback from stakeholders.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Green procurement practices.
  • Supplier Management Regulations.
  • Procurement Business Inspection Management Regulations.
  • Letter of Supplier Commitment against Commercial Bribery.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events (typhoons, extreme rainfall, floods).
  • Extremely hot and cold temperatures affecting aircraft performance and fuel efficiency.
Transition Risks
  • New climate-related laws and regulations.
  • High price of SAF.
  • Lack of a mature industry chain for SAF domestically.
Opportunities
  • Development and application of SAF.
  • Introduction of high fuel-efficiency aircraft models.
  • Route optimization.

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Reporting Guide

Certifications: ISO 14001, ISO 9001, FSSC 22000, HACCP, ISO/IEC 27001, PCI-DSS

Third-party Assurance: SGS-CSTC Standards Technical Services Co., Ltd.

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 8 (Decent work and economic growth)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 11 (Sustainable cities and communities)
  • Goal 13 (Climate action)
  • Goal 17 (Partnerships for the goals)

Air China's initiatives contribute to these goals through various actions such as promoting renewable energy, creating decent work opportunities, investing in infrastructure, supporting sustainable cities, mitigating climate change, and engaging in partnerships.

Sustainable Products & Innovation

  • Biodegradable in-flight supplies.
  • Eco-friendly Notebook set.

Awards & Recognition

  • China's 500 Most Valuable Brands (24th)
  • The World's 500 Most Influential Brands (283rd)
  • Brand China NO.1 (Aviation Industry)
  • Five Star Global Airline (APEX)
  • Digital Procurement Innovation Platform
  • Age-Friendly and Barrier-Free Service