Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Performance
• Client Health and Safety
• Client Relations Management
• Product and Service Labeling
• Client Privacy
• Employment
• Talent Attraction
• Labor/Management Relations
• Diversity and Equal Opportunity
• Human Capital Development
• Corporate Social Responsibility Management
• Training and Education
• Investment
• Commitments to External Activities
• Ethics and Integrity
• Environmental Policies
• Products and Services
• Compliance
• Climate Change
• Emissions
• Occupational Health and Safety
• Anti-corruption
• Corruption/Bribery/Transparency
• Public Policy
• Anti-competitive Behavior

Environmental Achievements

• Improved fuel consumption by 3.2% and produced 1,815,944 tons of CO2. 61% of aircraft have Sharklets, reducing fuel consumption by approximately 4% and decreasing around 18,000 tons of annual CO2 emissions.
• Welcomed "Berenice", the first Airbus A320 Neo aircraft, reducing the carbon footprint of flights by reducing annual fuel consumption by more than 15% per seat. Reducing emission of 5,000 tons of CO2 and 50% of NOx per year.
• Procured 9,594 TCO2 (carbon credits), compensating 100% of 226 round flights in the MEX-GDL route and offsetting the carbon footprint of 35,533 Clients
• 52% less waste generation in Corporate Offices; eliminated paper use in pilot training and aircraft.

Social Achievements

• Launched 20 new routes (11 domestic, 10 international), transporting over 15 million clients.
• Hired 1,281 Ambassadors; turnover rate of 13.67%.
• Invested Ps. 3,598,408 on social actions; 88 children with chronic illnesses fulfilled their dreams.
• Transported 9 organs and tissues in alliance with CENATRA.
• Supported youth entrepreneurship through Bluebox alliance.
• Offered support to migrants with preferential rates.

Governance Achievements

• Maintained membership in the Sustainability Index of the Mexican Stock Exchange for the second consecutive year.
• Received the Socially Responsible Company Distinction (ESR) for the 7th consecutive year.
• Implemented an internal program evaluating suppliers semiannually or monthly.
• Received 181 cases through the Whistleblowing Line, related to work climate, employment affronts and inappropriate use of Company’s assets.
• 344 Ambassadors trained on FCPA policies; 83% compliance.

Climate Goals & Targets

Environmental Challenges

• Exchange rate and fuel price pressures.
• Environmental impact of the airline industry.

Mitigation Strategies

• Implemented Sharklets on aircraft, reducing fuel consumption.
• Invested in fuel-efficient aircraft (A320 Neo).
• Carbon offsetting through MéxiCO2.
• Waste reduction initiatives.
• Improved fuel consumption controls and use of Cost Index.

Supply Chain Management

Supplier Audits: Semiannual or monthly basis

Responsible Procurement

• Internal program evaluating suppliers on quality, reliability, response time, operational risk and communication.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 (Core)

Certifications: ISO 9001:2008, ISO 14001:2004

Sustainable Products & Innovation

• Airbus A320 Neo aircraft

Awards & Recognition

• Airline with Value 2017 (Air Transport World)
• Low-cost leadership (Airline Strategy Awards)
• Best Airline in Launches (SimpliFlying Awards 2016)
• Best Airline in Central & South America (SimpliFlying Awards 2016)
• Effie Award for best campaign in tourism and travel

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Human Rights
• Governance

Environmental Achievements

• Reduced fuel burn by 10.7 million gallons per transported passenger vs 2017 and against the previous year’s projections.
• 73% of aircraft have Sharklets, reducing fuel consumption by approximately 4% and preventing around 18,000 tons of annual CO2 emissions.
• Reduced CO2e emissions per passenger kilometer transported in international flights by 5% vs 2017.
• Prevented the use of almost 34 tons of paper through mobile check-in, saving 576 trees and +915,000 liters of water.
• Ensured the correct disposal of 42.5 tons of hazardous waste.

Social Achievements

• Obtained the Socially Responsible Company (ESR) distinction for the ninth consecutive year.
• Trained 425 new Ambassadors on The Code and ECPAT; reinforcement for 3,397 operative Ambassadors.
• Invested Ps. +3,125 million in benefits for Ambassadors.
• Implemented several programs to motivate excellence and pride in Volaris (ReconoSER, Service Stars, Ambassador of the Month, Travel Experience, December Overnight Stay Program).
• Implemented the Volaris Competence Model to strengthen Leaders through training.

Governance Achievements

• First Mexican airline listed in the New York Stock Exchange (NYSE).
• Corporate Governance complies with best international practices and those suggested by institutions like the Mexican Stock Exchange.
• Implemented several policies to ensure operations’ integrity (Immunity Policy, “Son-Grandparent” Policy, Antifraud Compliance Policy, Fraud Prevention and Control Policy, Gifts and Benefits to Third Parties Management Policy, Gifts and Benefits from Suppliers or Third Parties Management Policy).
• Received 107 reports through the Whistle Blowing Line, 45% less than in 2017.

Climate Goals & Targets

Environmental Challenges

• Fuel costs went up dramatically in 2018 (representing 37% of revenues).
• Central America is an overpriced market strangulating volume growth.

Mitigation Strategies

• Substitution of 20% of the fleet with NEO aircraft (by 2022, 56% will be substituted with engines that burn less fuel and have sharklets).
• Implemented a Fuel Data Analytics system to identify improvement areas by flight phase, route and aircraft type.

Supply Chain Management

Supplier Audits: 20%

Responsible Procurement

• Constant evaluation of suppliers, including observance with guidelines to ensure the quality of their services, as well as compliance with social and environmental criteria.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: ISO 14001:2015, ISO 9001:2016, IOSA, Safety Management System

Sustainable Products & Innovation

• #ForACleanSky carbon offsetting program

Awards & Recognition

• SimplyFlying Awards (excellent Customer service on social media)

Environmental Metrics

ESG Focus Areas

• Economic and Corporate Governance
• Planet Care
• People Care

Environmental Achievements

• Reduced CO2 emissions by 17% since 2012 (73.3g CO2/RPK in 2019)
• Reduced fuel consumption by 18.5% since 2012 (19.2 GAL/RPK in 2019)
• Saved 15.8 million gallons of fuel versus 2018 consumption
• Purchased 898 carbon-emission reduction credits in 2019, offsetting 100% of 20 flights on the Mexico-Guadalajara route
• Reduced paper use by 32 tons through Mobile Check-in, equivalent to saving 543 trees and 862,000 liters of water
• Reduced electricity consumption by 6.3% versus 2018

Social Achievements

• Maintained a competitive wages and benefits plan surpassing the minimum wage by 1.9 times
• Implemented Mexican Official Standard NOM-035-STPS-2018 (Psychosocial risk factors at work)
• Donated 265 airplane tickets through the "Avión Ayuda Volaris" program, with a commercial value of $941,000 Mexican pesos
• Trained 961 new Ambassadors in The Code-ECPAT protocol and reinforced training for 3,681 Ambassadors
• Included the clause on Obligations to The Code-ECPAT Guidelines in 100% of accommodation and charter agreements
• Settled 97% of complaints filed with PROFECO (Mexican Consumer Protection Agency)
• Earned an AAA rating from the BCA (Business Consumer Alliance) and an A+ from the Better Business Bureau in the USA

Governance Achievements

• Maintained ISO 9001 and 14001 certifications
• Extended the scope of ISO 9001/14001 certifications to include Cargo Operations, Crew Planning, and Operations Engineering processes
• Received 127 reports through the Whistle Blowing Line, with 5 related to corruption issues
• 98% of Ambassadors received Volaris Code of Ethics training

Climate Goals & Targets

Environmental Challenges

• Political and social events in Mexico and changes in governmental policies
• Adverse economic conditions
• Highly competitive industry
• Price and availability of fuel
• Maintaining and renewing permits and concessions
• Cyber-attacks
• Ability to attract and retain qualified personnel
• Labor disputes

Mitigation Strategies

• Cost reduction strategies
• Strong and diverse network
• Fuel efficiency management
• Information Security Awareness Program
• Cybersecurity controls and Security Operation Services
• Competitive wages and benefits
• Talent attraction and retention programs
• Collaboration with union representation

Supply Chain Management

Supplier Audits: Annual random evaluation of General Procurement Suppliers

Responsible Procurement

• Evaluation and audit process for all Suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 14001, IOSA

UN Sustainable Development Goals

• No Poverty
• Gender Equality
• Quality Education
• Good Health and Well-being
• Industry, Innovation and Infrastructure
• Climate Action
• Partnerships for the Goals
• Reducing Inequalities
• Peace, Justice and Strong Institutions
• Decent Work and Economic Growth
• Responsible Consumption and Production

Volaris's initiatives contribute to these goals through various programs and actions detailed in the report.

Awards & Recognition

• SRE (Socially Responsible Enterprise) award (10th consecutive year)
• Boscar award (Communication for the Forests category)

Environmental Metrics

ESG Focus Areas

• Environmental Protection and Climate Change Mitigation
• People Care
• Economic and Corporate Governance

Environmental Achievements

• Reduced emissions by 12.5% in terms of gCO2/RPK compared to 2015, equivalent to 35.8 million gallons in fuel savings and a reduction of 247,278 tons of CO2 emissions.
• Saved 103.68 tons of paper by changing the onboard magazine to digital format.
• Saved 25.96 tons of paper due to 38% of customers using mobile check-in.
• Purchased 807 certified carbon credits (tCO2), offsetting 100% of 26 flights for the Mexico-Guadalajara route.

Social Achievements

• Preserved all jobs during the pandemic.
• Reduced turnover rate compared to 2019.
• Implemented initiatives to ensure ambassadors’ comprehensive wellbeing during the COVID-19 pandemic.
• Transported more than 45 tons of humanitarian aid through the Avión Ayuda Volaris Program.
• Maintained a proactive and transparent discourse with all investors about the implementation of the biosecurity protocol.

Governance Achievements

• Renewed ISO 9001 and 14001 Certifications.
• Implemented the best international practices and systems for risk management, such as COSO, COSO ERM, and COBIT.
• Created a Sustainability Committee and an Ethics Committee.
• No corruption incidents as defined by the Anticorruption Compliance Policy and the Fraud Prevention and Control Policy.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic significantly impacted the airline industry.
• Highly competitive industry.
• Sensitivity to changes in economic conditions.
• Stringent environmental regulations.
• Security concerns in Mexico.
• Political and social events in Mexico.
• Adverse economic conditions in Mexico.
• Cybersecurity threats.

Mitigation Strategies

• Implemented a strict liquidity preservation program.
• Negotiated cost reductions and credit extensions with suppliers.
• Implemented biosecurity protocols.
• Launched the “With Volaris, Fly Sure” campaign.
• Developed new digital tools and platforms.
• Strengthened cybersecurity measures.
• Implemented a risk management program.
• Maintained open communication channels with stakeholders.

Supply Chain Management

Responsible Procurement

• Developed a Responsible Supply Chain Management Model.
• Developed the Volaris Supplier Ethics Policy.
• Included sustainability clauses in certain contracts.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, UN Sustainable Development Goals (SDGs)

Certifications: ISO 9001, ISO 14001, APEX Health Safety (Platinum level), WTTC Safe Travels Stamp, Mexico City Tourism Security Stamp, Yucatán Best Sanitary Practices Certificate

Third-party Assurance: Ernst & Young Global Limited

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions
• Goal 17: Partnerships for the Goals

Volaris initiatives contribute to these goals through various programs and strategies outlined in the report.

Awards & Recognition

• Dow Jones Sustainability Index
• MILA Pacific Alliance Index
• Socially Responsible Company (ESR) badge (CEMEFI)