Climate Change Data

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Employees
• Community

Environmental Achievements

• Operated two biofuel flights, one resulting in a 42% reduction in emissions compared to a regular flight on the same route.
• Continued support for the development of alternative, environmentally-friendly fuels.
• Achieved a 33% improvement in average fuel efficiency since 1990.
• From 2006 to 2011, fuel efficiency program contributed to a cumulative reduction of 318,000 tonnes of CO2 emissions.

Social Achievements

• Concluded labor agreements with main Canadian unionized employees.
• Launched HR Connex intranet portal.
• Implemented a new management talent development program (AC Way).
• Created the Air Canada Foundation to manage community investment programs.

Governance Achievements

• Board extensively reviewed corporate governance practices and concluded compliance with or exceeding requirements of National Instrument 58-101.
• Successfully completed its fifth IATA Operational Safety Audit (IOSA) with “no findings; six observations”.

Climate Goals & Targets

Environmental Challenges

• Significant changes required in labor contracts to achieve financial sustainability.
• Significant pension solvency deficit.

Mitigation Strategies

• Concluded labor agreements with improved work rules and pension arrangements.
• Reduced adjusted net debt by $295 million.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct; preference given to suppliers complying with it; consideration of environmental and sustainable attributes during procurement.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3.1 Application Level B

Certifications: ISO 14001

Awards & Recognition

• Best International Airline in North America (Skytrax)
• Best Airline in North America (Global Traveler)
• Best North American Airline for International Travel (Business Traveler)
• Best North American Airline In-Flight Experience (Business Traveler)

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Employees
• Community

Environmental Achievements

• Improved fleet fuel efficiency by 35% between 1990 and 2013
• Fuel efficiency initiatives saved more than 7,000 tonnes of fuel or 22,800 tonnes of CO2e emissions in 2013
• Reduced over-fueling by more than 40%, yielding fuel burn reductions of 288,000 kilograms
• Reduced APU use, saving an estimated 670,000 kilograms of fuel
• Achieved estimated savings of 720,000 kilograms of fuel through SOP changes
• Saved an estimated 5.1 million kilograms of fuel by adjusting engine cleaning procedures
• Began issuing iPads to pilots, expected to eliminate 110-200 tonnes of CO2e fleet-wide
• Introduced new Hybrite carts, resulting in over 2,000 tonnes of weight savings once fully implemented
• Air Canada Cargo's new ULD containers resulted in a fuel weight saving of over 320,000 kilograms in 2013

Social Achievements

• Successfully completed its biennial IATA Operational Safety Audit (IOSA)
• Successfully completed a Transport Canada audit of its Safety Management System (SMS)
• Number of Lost Time Injuries declined from the previous year
• Finalized agreements with CUPE for the operation of Air Canada’s leisure carrier, Air Canada rouge
• Restructured HR activities and realigned customer service training
• Named one of Canada’s Top 100 Employers for 2014
• Named one of Canada’s most attractive employers by Randstad Canada
• Launched Employee Value Proposition (EVP) to gather employee feedback
• Launched Arrivals Connection, a networking session for new managers
• Introduced a new “Back to Basics” training course for in-flight service
• Profit sharing incentive program paid out $31 million to employees below senior management level in 2013
• Employee Recognition Award granted shares to employees
• Revamped and expanded its GoAC program to provide employees more travel options
• Opened a new $60 million Operations Centre in Brampton, Ontario with employee-focused features
• Launched Creative Juices, an online suggestion box, resulting in product innovations and policy changes
• Implemented an employee suggestion for Air Canada gift cards
• Honored 61 employees with the Award of Excellence
• Inaugurated Family Day celebrations at major hubs

Governance Achievements

• Air Canada’s 2013 report was prepared in accordance with the Core option of the Global Reporting Initiative G4 guidelines
• Adopted and regularly updates its Corporate Policy and Guidelines on Business Conduct (Air Canada Code of Conduct)
• Implemented a comprehensive new anti-corruption policy and program
• ISS ranked Air Canada in the first decile in respect of corporate governance
• Appointed a full-time General Compliance Officer
• Board extensively reviewed the Corporation’s governance practices and concluded that they comply with or exceed the requirements of National Instrument 58-101

Climate Goals & Targets

Environmental Challenges

• GHG emissions from the aviation industry are projected to reach 5% of global emissions by 2050
• Fuel is the single largest expense for Air Canada
• Managing employee relations across a large, geographically dispersed, and largely unionized workforce
• Maintaining a strong safety record in a challenging industry

Mitigation Strategies

• Adopted IATA reduction targets for fuel efficiency and GHG emissions
• Pursuing a four-pillar strategy to limit GHG emissions (technology, operations, infrastructure, economic instruments)
• Investing in fleet renewal with more fuel-efficient aircraft
• Implementing operational changes to reduce fuel consumption (e.g., correct fueling, limiting APU use, SOP changes)
• Collaborating with infrastructure providers to improve air traffic management
• Supporting research and development of sustainable aviation biofuels
• Implementing an Environmental Management System based on ISO 14001
• Cross-functional approach to employee management
• Investing in employee training and development
• Implementing strategies to improve employee engagement and retention
• Maintaining a federally approved SMS in compliance with the Canadian Aviation Regulations

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (SCC), including environmental requirements
• Sourcing locally wherever commercially feasible (83% of contracts with regional suppliers)

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001

Awards & Recognition

• Eco-partnership Award (shared with Airbus Industrie)
• Annual Sustainable Travel Award (from Flight Centre)
• Silver medal in Canadian Occupational Safety magazine’s Canada’s Safest Employer Awards

Environmental Metrics

ESG Focus Areas

• Health and safety
• Customer privacy
• Environment

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Guidelines, GHG Protocol

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Employees
• Community

Environmental Achievements

• Introduced six Boeing 787 aircraft, bringing to 12 the number of these fuel-efficient aircraft acquired under a fleet renewal program
• Completed the retrofit of winglets on additional Boeing 767 aircraft
• Launched a new fuel optimization program for the fleet to further advance GHG emission reductions
• Fuel efficiency initiatives saved almost 11,000 tonnes of fuel or approximately 35,000 tonnes of CO2e

Social Achievements

• Concluded landmark, 10-year agreements with CUPE and the IAMAW workers and a five-year agreement with Unifor
• Increased front-line training by at least 50 per cent
• Launched a Leadership Development program called Leading the AC Way
• Launched the Shine program which empowers employees to recognize their colleagues for “above and beyond” actions

Governance Achievements

• Air Canada’s stock was added to the Jantzi Social Index (JSI)
• Board extensively reviewed the Corporation’s governance practices and concluded that they comply with or exceed the requirements of National Instrument 58-101, Disclosure of Corporate Governance Practices
• ISS ranked Air Canada in the first decile in respect of corporate governance, for the third consecutive year

Climate Goals & Targets

Environmental Challenges

• A serious safety incident during the year when flight AC624 landed short of a runway in Halifax, Nova Scotia.
• Significant pension solvency deficit (addressed in prior years)

Mitigation Strategies

• Supported an investigation by the Canadian Transportation Safety Board
• Canadian plans moved into a surplus position in 2014

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct (SCC) requiring due regard for the environment

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI G4 Core

Certifications: ISO 14001

Third-party Assurance: Third-party, limited assurance for key metrics

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Ranked fourth among the top 20 most fuel-efficient carriers on a transatlantic route (ICCT)
• Canada’s Top 100 Employers for 2016
• One of the 30 Top Employers in Montreal

Environmental Metrics

ESG Focus Areas

• Safety
• Environment
• Employees
• Community

Environmental Achievements

• Improved fleet fuel efficiency by 4.3% compared to 2015, saving over 13,800 tonnes of fuel or approximately 44,400 tonnes of CO2e.
• Launched Canada’s Biojet Supply Chain Initiative (CBSCI) with partners to advance biojet supply logistics in Canada.
• Implemented the Analyzed Contingency Fuel Program onboard to reduce GHG emissions.
• Expanded employee support for tree planting and clean-up efforts at two additional Air Canada bases.

Social Achievements

• Concluded agreements with CALDA for flight dispatchers, and UNIFOR for In-Flight Service and Flight Operations crew schedulers, resulting in unprecedented 10-year labor stability.
• Expanded leadership development programs, doubling classroom capacity and providing greater access to other branches.
• Increased Air Canada Foundation fundraising to a net $1.46 million.
• Achieved a 10% increase in overall donations to Children’s Miracle Network Canadian member pediatric hospitals.
• Supported the opening of three new Aboriginal Breakfast Club of Canada programs.

Governance Achievements

• Conducted Business Impact Assessments of key operational areas including System Operations Control and Security.
• Completed analysis of the Air Canada Environmental Management System to align it with the recently updated ISO 14001 standard.
• Board extensively reviewed the corporation’s governance practices and concluded that they comply with or exceed the requirements of National Instrument 58-101, Disclosure of Corporate Governance Practices.

Climate Goals & Targets

Environmental Challenges

• Slightly more lost time injuries (842 from 840) due to increased passenger movements and flight frequencies.
• A workplace accident claimed the life of an Air Canada employee.

Mitigation Strategies

• Worked with authorities to put in place additional safeguards to help prevent similar accidents.
• Developed an industry-leading capability to measure and assess risks to help identify and rectify factors contributing to unstable aircraft landing approaches.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (SCC) requiring suppliers to have an effective environmental management plan and to reduce their environmental footprint.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core

Third-party Assurance: Third-party, limited assurance for key metrics

Awards & Recognition

• Listed among the top 100 companies in the world for CSR reputation by the Reputation Institute
• 2017 Award for Best Corporate Sustainability Report – Transportation (FSI)
• Ranked among Canada’s Top 100 Employers for 2017
• Chosen as one of the “Top Employers in Montréal”
• One of Canada’s 10 most admired corporate cultures for 2016 (Waterstone Human Capital)

Environmental Metrics

ESG Focus Areas

• Our Business
• Our People
• Our Planet

Environmental Achievements

• 19% improvement in fuel efficiency between 2009 and 2019
• On target to meet the annual 1.5% fuel efficiency improvement by end of 2020
• Progressed on work towards carbon-neutral growth in 2020 for international aviation (through CORSIA)
• Continued to support for development of lower carbon Sustainable Aviation Fuels (SAF) in Canada
• Removed 38.2M pieces of single-use plastics from onboard in 2019
• Achieved 2020 recycling efficiency target in 2019 for the Onboard Domestic Recycling Program

Social Achievements

• Recognized as one of Canada’s Best Diversity Employers for the fourth consecutive year
• Named one of Canada’s Top 100 employers for the seventh consecutive year
• Supported 315 registered charities through the Air Canada Foundation with more than $2 million net fundraised
• More than 100 million miles donated by Aeroplan and its members for charitable purposes
• Disaster relief aid deployed for Canadian floods and Hurricane Dorian
• Created a change management Centre of Excellence
• Further developed the Emerging Leaders Program
• Implemented community partnerships in support of regional network performance, talent acquisition and socio-economic development

Governance Achievements

• Ranked in the top 3% of airlines included in the IATA Operational Safety Audit
• Grew to over 30% of women on Board (as of 2020)
• Deployed Multifactor Authentication program to Air Canada and Air Canada Rouge employee base
• Implemented the Amadeus Altéa Suite passenger service system (completed in 2020)
• Managed the safety risk and hazards associated with the introduction of aircraft, new routes and new initiatives or projects
• Strong privacy action plan
• Joined the United Nations Global Compact (UNGC)

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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

• Introduction of Airbus A220, expected to average 20% less fuel consumption per seat and emit 20% less CO2 and 50% less Nitrogen Oxide than the aircraft they replace

Awards & Recognition

• Top 100 CSR Leader by World Biz Magazine

Environmental Metrics

ESG Focus Areas

• Safety
• Energy Consumption
• Greenhouse Gas Emissions

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

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: GRI

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Employee Well-being
• Diversity and Inclusion
• Community Investment
• Ethical Business Practices
• Waste Management

Environmental Achievements

• Launched Leave Less Travel Program offering corporate customers options to reduce their carbon footprint through SAF and carbon offsets.
• Became a founding member of the Aviation Climate Taskforce (ACT).
• Achieved 70.4% waste diversion from landfill in offices and facilities.
• Reduced fuel consumption through fuel efficiency initiatives, resulting in jet fuel savings and CO2e avoidance.
• First Canadian carrier to join the Clean Skies for Tomorrow Coalition.
• First airline in the Americas to achieve IWT certification.

Social Achievements

• Recalled over 10,000 employees.
• Expanded Air Canada’s Corporate Wellness program, "Unlock the Best in You."
• Supported 175 fundraising initiatives and raised over $1 million for the Air Canada Foundation.
• Welcomed 1.2 million new Aeroplan members.
• Donated nearly 65 million Aeroplan points to charities.
• Established pop-up vaccination clinics, supporting the vaccination of close to 300,000 Canadians.
• Awarded four Captain Judy Cameron Scholarships to women in aviation.

Governance Achievements

• Implemented a comprehensive Anti-Corruption Compliance Program.
• Revised competition law policies, guidelines, and training materials.
• Maintained exemplary IATA Operational Safety Audit results.
• No material breaches in cybersecurity or competition law compliance reported.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic and its impact on operations and travel.
• Achieving net-zero GHG emissions by 2050.
• Supply chain disruptions.

Mitigation Strategies

• Implemented Air Canada CleanCare+ biosafety program.
• Launched Travel Ready hub for customers.
• Developed a Climate Action Plan with ambitious net-zero targets.
• Invested $50 million in SAF and other carbon reduction initiatives.
• Developed a hybrid plan for returning employees to the workplace.
• Implemented a COVID-19 rapid antigen screening program.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainable procurement practices
• Prioritization of suppliers with strong ESG performance.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Sustainable aviation fuels

Reporting Standards

Frameworks Used: GRI Standards, CDP (aligned with TCFD framework), UN Global Compact

Certifications: IEnvA Stage 2, IATA’s CEIV Pharma

Third-party Assurance: PricewaterhouseCoopers LLP (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 11 (Sustainable Cities and Communities)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives contribute to these goals through various programs and commitments.

Sustainable Products & Innovation

• Leave Less Travel Program
• Sustainable aviation fuels

Awards & Recognition

• Forbes World’s Best Employers
• 50 Most Engaged Workplaces™
• Various awards for customer service and cabin cleanliness

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Diversity, Equity, and Inclusion
• Employee Well-being
• Community Investment
• Responsible Business Conduct
• Sustainable Aviation Fuel (SAF)

Environmental Achievements

• Reduced Scope 1 GHG emissions to 9,513,174 tCO2e in 2022 from 13,205,187 tCO2e in 2019
• Reduced Scope 2 GHG emissions to 8,705 tCO2e in 2022 from 10,489 tCO2e in 2019
• Reduced Scope 3 GHG emissions to 1,012,659 tCO2e in 2022 from 1,644,501 tCO2e in 2019
• Introduced CHOOOSE as a carbon offset program provider
• Operated four SAF-dedicated commercial flights on Earth Day
• Continued electrification of ground support equipment with over 2,400 electric vehicles
• Launched electric shuttle service for employees at Vancouver airport
• Achieved 57.4% waste diversion rate from landfills in Canadian offices and facilities
• Diverted 7.6 tonnes of electronic waste from landfill

Social Achievements

• Launched Unlock the Best in You (UBY) employee well-being program
• Formalized several Employee Resource Groups (ERGs)
• Offered over 2 million hours of employee training
• Supported over 285 charities through the Air Canada Foundation, disbursing over $1.6 million
• Provided humanitarian relief to Ukraine and communities affected by Hurricane Fiona
• Improved employee engagement with a record-high response rate in the employee survey
• Increased representation of women on the Board to 38%

Governance Achievements

• Amended Board committee charters to enhance ESG oversight
• Integrated ESG practices into business strategy
• Maintained and updated a global anti-corruption policy and guidelines
• Implemented a comprehensive Anti-Corruption Compliance Program
• Amended Air Canada Procurement Policy to integrate sustainability considerations

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Climate change impacts (implied)
• Achieving net-zero emissions by 2050

Mitigation Strategies

• Fleet renewal with more fuel-efficient aircraft
• Investment in sustainable aviation fuels (SAF)
• Electrification of ground support equipment
• Carbon offsetting program
• Investment in carbon removal technologies
• Collaboration with stakeholders on climate action

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct
• Sustainability considerations integrated into procurement process

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather (implied)

Transition Risks

• Regulatory changes (implied)
• Market shifts (implied)

Opportunities

• Development of energy-efficient products and services (implied)

Reporting Standards

Frameworks Used: GRI, CDP (aligned with TCFD), UNGC

Certifications: IEnvA (equivalent to ISO 14001:2015), CEIV Live Animals, Illegal Wildlife Trade (IWT)

Third-party Assurance: PricewaterhouseCoopers LLP (limited assurance)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 13 (Climate Action)

Various initiatives contribute to these goals, as detailed in the report.

Sustainable Products & Innovation

• More fuel-efficient aircraft
• Electric ground support equipment
• Hybrid-electric regional aircraft (ES-30)

Awards & Recognition

• Best Airline in North America (Global Traveler)
• TravelPulse Readers’ Choice Awards
• Skytrax awards
• Travvy award
• Leisure Lifestyle Awards
• Wherever Awards
• Forbes World’s Best Employers
• Canada’s Best Employers
• Payworks Award
• OHS awards
• Canada Awards for Excellence for Mental Health
• Roberta Bondar Foundation Award