Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability

Environmental Achievements

• Launched Fly Responsibly initiative
• Announced partnership in the development of a new sustainable aviation fuel plant in the Netherlands
• Supported the design of a radically different aircraft, Flying V
• Electrified 60% of ground services equipment (up from 49% in 2018)
• Switched to green electricity for ground operations, resulting in a 50% CO2 reduction compared to 2018
• Reduced CO2 emissions per passenger by 31% compared to 2005
• Purchased 6,911 tonnes of Sustainable Aviation Fuel
• 175,000 passengers travelled CO2 neutral thanks to KLM’s compensation service CO2ZERO
• Reduced non-recycled waste by 680 hectares of tropical forest planted in Panama by KLM CO2ZERO service

Social Achievements

• Improved customer appreciation (NPS above 40)
• Improved employee satisfaction (EPS above 70)
• Concluded three new collective labour agreements with pilots, cabin crew and ground staff, bringing more stability and higher salaries
• Launched a Health Portal for employees
• Introduced MyJourney, a talent and career portal for cabin crew
• Rolled out Strategic Workforce Planning
• Strengthened focus on leadership with a company-wide leadership development program
• Championed gender equality and inclusivity, meeting almost all 2019 gender targets
• Launched a new Female Leadership Program
• Supported members of the LGBTI community
• Hosted the annual Workplace Pride Conference
• Opened a new training facility for Ground Services staff with a more inspiring and hands-on curriculum

Governance Achievements

• Returned to the number one position of the Dow Jones Sustainability Index
• Strengthened Finance organisation with streamlined financial responsibilities and a First Class Finance strategy
• Implemented a revised Anti-Fraud Policy
• Improved internal control framework processes

Climate Goals & Targets

Environmental Challenges

• Schiphol’s capacity limitations
• Higher fuel costs and pressure on yields
• Slowdown in global economic growth impacting the Cargo market
• Operational disturbances at Schiphol (fuel supply, runway maintenance, Air Traffic Control system updates)
• Geopolitical tensions and uncertainties around Brexit impacting Cargo demand
• Increased service recovery costs due to operational disruptions and changing customer claim behaviour
• Different interpretations of European regulations across jurisdictions
• High taxes on CO2 emissions and noise pollution (ETS, airport surcharge, aviation tax)
• Fragmented European airspace leading to inefficiencies and extra CO2 emissions
• Competition from other airlines and railway networks
• Competition from low-cost airlines
• Competition from long-haul low-cost airlines
• Rapid expansion of non-EU airlines
• Seasonal nature of the air transport industry
• Volatility of oil prices and currencies
• Threats of terrorist attacks, geopolitical instability, and epidemics (COVID-19)
• Risk of loss of airport slots
• Competition from aircraft, engine, and component manufacturers in maintenance
• Public pressure on global and local flight pollution
• Changes in international, national, or regional laws and regulations
• Investigations by authorities alleging breaches of antitrust legislation
• Regulatory authorities’ inquiry into commercial cooperation agreements
• Commitments made to the European Commission
• Legal risks and arbitration proceedings
• Financing risks
• Transfer pricing
• Risks linked to pension plans
• Volatility of KLM’s equity
• Labour disruptions
• Risks linked to the use of third-party services
• IT risks and cybercrime
• Airline accident risk

Mitigation Strategies

• Optimising operational processes and the global network
• Opening promising destinations by sacrificing less profitable ones
• Improving productivity and working on projects to increase efficiency and lower costs
• Investing in fleet renewal (EUR 1.3 billion in 2019)
• Implementing a more integrated approach towards operational decision-making
• Developing and using artificial intelligence-based tools
• Strengthening global alliances and partnerships
• Adapting schedule to compensate for loss of capacity on India routes
• Improving operational processes and ground handling
• Reducing cancellations of European flights
• Implementing a risk-based approach to audits
• Reducing occupational incidents
• Rolling out a new safety app
• Participating in the Joint Sector Integral Safety Management System
• Continuing just culture training
• Safeguarding slots and further improving operations
• Reducing costs related to non-performance
• Rolling out more AI-based tools
• Improving control of the European network
• Building more buffers into operations
• Improving turnaround time for Boeing 737-900
• Working with partners outside KLM and engaging passengers
• Investing in new, more efficient aircraft
• Working with aviation partners to design more fuel-efficient flight routes
• Enabling passengers to offset their carbon emissions
• Reducing the weight of inflight services products
• Piloting the Closed Loop initiative for recycling catering supplies
• Recycling plastic as filament for 3D printers
• Actively defending KLM’s position towards European institutions and the Dutch government
• Implementing various programs and procedures to prevent breaches of legislation
• Strengthening the privacy compliance structure
• Restructuring the Privacy Office
• Fostering social dialogue and employee agreements
• Implementing a supplier relation management program
• Developing business continuity plans
• Implementing specific policies to ensure compliance with anti-bribery and corruption laws
• Monitoring compliance with policies and executing background checks
• Implementing a hedging strategy to manage fuel price, currency, and interest rate risks
• Maintaining sufficient liquidity
• Establishing credit limits for external parties
• Using a hedging strategy to manage currency exposure
• Using swap strategies to convert floating-rate debt into fixed rates
• Hedging fuel price risks using swaps and options
• Hedging ETS risk using forwards
• Regularly reviewing anticipated and potential cash flows
• Maintaining sufficient liquidity, including committed credit facilities
• Monitoring the level of expected cash inflows and outflows

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Adverse weather conditions

Transition Risks

• Changes in laws and regulations regarding CO2 emissions and noise pollution
• Increased public pressure on flight pollution

Opportunities

• Development of energy-efficient products
• Sustainable aviation fuel
• More fuel-efficient flight routes and procedures

Reporting Standards

Frameworks Used: Dutch Corporate Governance Code

Certifications: ISO 14001, IATA’s CEIV Pharma certification

Third-party Assurance: KPMG Accountants N.V. and Deloitte Accountants B.V.

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Sustainable aviation fuel
• Flying V aircraft

Awards & Recognition

• Number one position in Airlines category of the Dow Jones Sustainability Index

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced CO₂ emissions per passenger-kilometer (pkm) by 21.6% by 2019 (relative to 2009 levels).
• Achieved 20% improvement in ground operation energy efficiency by 2020 (relative to 2011 levels).
• Used 49 kilotons of SAF in 2023, saving 179 kilotons of scope 1 and 3 CO2 emissions.
• Reduced non-hazardous, non-separated waste by 19% in 2019 compared to 2011.

Social Achievements

• Launched SAF programs for corporate clients and passengers, allowing them to reduce their carbon footprint.
• Introduced a work-from-home policy and started the electrification of the car fleet used by employees.
• Introduced a hybrid meatball with reduced GHG emissions, water, and land use.

Governance Achievements

• Implemented internal CO₂ pricing (€80 per tonne CO2 in 2023) for fleet and fleet-related investment decisions.
• ISO 14001 certified.
• ISCC-EU certified.

Climate Goals & Targets

Environmental Challenges

• Lack of readily-available zero CO2 emission technology until at least 2035.
• Uncertainty about the magnitude of non-CO2 climate effects and effective mitigation measures.
• Need to increase SAF usage beyond current commitments to meet SBTi targets.
• EU regulation hampering circular practices for waste recycling.

Mitigation Strategies

• Investing in a more fuel-efficient fleet (e.g., Embraer 195-E2, A321neo, Airbus A350F).
• Improving flight operational efficiency (route optimization, weight reduction, fuel-efficient procedures).
• Increasing the use of SAF (aiming for 10% by 2030, potentially needing 15-18% to meet SBTi targets).
• Developing a Scope 3 inventory and engaging with high-emitting suppliers.
• Exploring and implementing operational and technical measures to reduce contrails formation.
• Developing plans to reduce non-separated waste and increase recycling.

Supply Chain Management

Responsible Procurement

• Strict sustainability criteria for SAF.
• Collaboration with suppliers to develop sustainable products (e.g., hybrid meatballs, sustainable uniforms).

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: SBTi, Greenhouse Gas Protocol (GHGP)

Certifications: ISO 14001, ISCC-EU

Sustainable Products & Innovation

• Hybrid meatballs
• Sustainable uniforms