Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Safety
• Security
• Community

Environmental Achievements

• Achieved emission savings of more than 280,000 tonnes of carbon dioxide emissions, of which 130,000 tonnes were from specific initiatives to improve operational fuel efficiency.
• On course to achieve cumulative savings of two million tonnes over the five years to June 2011.

Social Achievements

• Launched Sharing the Spirit program, providing assistance to five key charities.
• Created over 7,000 jobs since 1999.
• Established a second Joey Club childcare facility for Qantas staff.
• Spent more than $280 million on staff training.

Governance Achievements

• Achieved IATA Operational Safety Audit Certification.
• Established a Qantas Crime and Corruption Control Policy.
• Implemented a Protected Disclosures Policy.

Climate Goals & Targets

Environmental Challenges

• High fuel costs (increased by 19% or more than $500 million despite hedging).
• Fierce competition from Virgin Blue and Tiger Airways domestically, and government-supported airlines internationally.
• Additional air rights granted to three Middle Eastern hub carriers.
• Planned trans-Pacific services from Virgin Blue and AirAsia X.

Mitigation Strategies

• Continued focus on cost reduction through the Sustainable Future Program ($3 billion target).
• Two-brand strategy (Qantas and Jetstar) to adapt to changing customer demand.
• Investment in new fuel-efficient aircraft (A380 and B787) to reduce costs and emissions.
• Business segmentation program to unlock value in individual business assets.

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: IOSA Registration

Third-party Assurance: Independently reviewed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Safety and Security
• Environment and Climate Change
• Community
• Employee Well-being
• Diversity and Inclusion

Environmental Achievements

• Qantas took delivery of three A380 aircraft, which emit fewer carbon emissions per passenger and have a substantially decreased noise footprint
• Q Catering Cairns reduced waste to landfill by 80%
• Q Catering Adelaide received an award for its reduction of annual water consumption
• Snap Fresh is reclaiming and reusing approximately one million litres of water
• Qantas Freight began replacing aluminium cargo containers with a lightweight Twintex version, which will save more than 20,000 tonnes of CO2 emissions over seven years

Social Achievements

• Opened $10 million Centre of Service Excellence
• Qantas supported a national campaign – ‘AllofAus’
• QantasLink won the 2008 National Breast Cancer Foundation Patron’s Award for Innovation
• Jetstar’s New Zealand charity flight raised $10,000 for local charity Cure Kids
• Qantas Group people contributed more than $800,000 in support of Australians affected by the February 2009 bushfires

Governance Achievements

• Appointment of new management team led by Alan Joyce
• Improved on-time performance and customer satisfaction ratings
• Restructuring to create a leaner and more responsive organization
• Implementation of a new check-in and boarding system
• Strengthened Crime and Corruption Control Policy

Climate Goals & Targets

Environmental Challenges

• Global financial crisis impacting airline industry
• Industrial dispute and maintenance backlog affecting punctuality and reputation
• Two inflight incidents damaging reputation
• H1N1 Influenza 09 negatively affecting Asian markets
• Increased competition domestically and internationally

Mitigation Strategies

• Decisive measures to ensure financial strength (e.g., capital raising, cost reductions)
• Restructuring of capital expenditure pipeline
• Innovative sales activity and capacity adjustments
• Focus on corporate account retention
• Capacity reductions and aircraft grounding

Climate-Related Risks & Opportunities

Transition Risks

• Carbon compliance regimes in Australia, New Zealand, EU, and US
• Global trading scheme for international aviation emissions

Opportunities

• Investment in advanced technologies and fuel-efficient aircraft
• Focus on fuel conservation
• Development of sustainable aviation fuel

Reporting Standards

Frameworks Used: Global Reporting Initiative G3 Sustainability Reporting Guidelines, United Nations Global Compact’s principles, Organisation for Economic Co-operation and Development Guidelines for Multinational Enterprises

Awards & Recognition

• Australian International Design Award 2009 for the A380 Economy Seat
• Best Long Haul Airline, 2009 ULTRAS (UK Daily Telegraph)
• Best Airline Australasia, 2009 Skytrax World Airline Awards
• Aviation Category, Condé Nast Traveller Innovation and Design Awards 2009 for A380 design
• Best Airline Accessory, Cutlery for Qantas, Wallpaper Design Award 2009

Environmental Metrics

ESG Focus Areas

• Climate action
• Reducing waste through circularity
• Protecting nature through sustainable tourism
• Supporting our people to feel safe and valued
• Enhancing inclusion and diversity
• Respect for human rights
• Connecting the regions
• Supporting communities
• Aboriginal and Torres Strait Islander partnerships

Environmental Achievements

• Removed over 29 million single-use plastic items in FY22 and 94 million since 2019
• Achieved a fuel efficiency of 51 L / 100 RTK (higher than long-term average and 41% above 2019 baseline)
• Purchased 3.2 million liters of SAF at London Heathrow for FY22, reducing carbon emissions by up to 10% on that route
• Sourced LGCs for 100% of electricity consumption for all Qantas Group buildings in Australia since the beginning of 2022.

Social Achievements

• Launched Green Tier Frequent Flyer program to encourage sustainable choices
• 24% improvement in TRIFR from FY21 to FY22
• Increased targets for women in senior leadership roles and Aboriginal and Torres Strait Islander employment
• Restarted Graduate and Engineering Apprentice programs; Aboriginal and Torres Strait Islander Career Tracker Interns program; and School-Based Trainees pathway program.

Governance Achievements

• Incorporated a cost associated with decarbonisation into business cases, starting with long-term fleet investment decisions
• Linked executive remuneration to a climate-related target in FY23 Annual Incentive Plan
• Revised Code of Conduct and Ethics and Business Practices Document to communicate human rights commitments

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19
• Slower than projected market supply of SAF
• Volatile offset market spot prices
• Increased weather-related disruptions due to climate change (projected 15% increase by 2050)
• Managing human rights risks across global operations and supply chains

Mitigation Strategies

• Developed targeted networks to repatriate Australians from various countries
• Partnered with Airbus to invest US$200 million in developing a domestic SAF industry
• Investing directly in carbon offset projects and undertaking strategic forward purchasing of high-integrity offsets
• Implementing human trafficking training for aircrew and modern slavery training for key personnel
• Engaging expert advisory consultants to refresh salient human rights issues and undertake due diligence on supplier relationships

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supply Chain Assurance (SCA) program
• Supplier Requirements
• Supplier Code of Conduct
• Modern slavery clauses in contracts

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Increased weather-related disruptions

Transition Risks

• Policy and regulatory changes
• Evolving stakeholder expectations
• SAF market supply
• Volatile offset market

Opportunities

• Development of SAF
• Fleet modernisation
• Operational efficiencies

Reporting Standards

Frameworks Used: GRI Standards: Core option, UNGC, TCFD

Certifications: Climate Active

Third-party Assurance: KPMG (Limited Assurance on selected metrics)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 8 (Decent Work and Economic Growth)
• Goal 10 (Reduced Inequalities)
• Goal 17 (Partnerships for the Goals)

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Compostable alternatives to plastic items

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Customer Satisfaction
• Operational Safety
• Reputation

Environmental Achievements

• Delivered emissions reductions totalling 402,000 tonnes CO2-e, exceeding the target of 390,000 tonnes CO2-e.
• Investing in new aircraft that burn around 20 per cent less fuel

Social Achievements

• $340 million in benefits shared with employees
• Launched a new campaign to actively encourage customer usage of flight credits

Governance Achievements

• Significant changes to our Executive team, with the CEO announcing his retirement
• Board renewal with new appointments

Climate Goals & Targets

Environmental Challenges

• Significant issues with cancellations and delays due to supply chain and resourcing challenges post-COVID.
• Reputational challenges and loss of trust due to service shortcomings and other pandemic-related issues.
• ACCC proceedings against Qantas for alleged breaches of Australian Consumer Law.
• High Court finding that Qantas’ decision to outsource ground handling was a breach of the Fair Work Act.

Mitigation Strategies

• Increased investment in recruitment and building network resilience, resulting in improved on-time performance.
• Board applied its discretion to reduce short-term incentives for senior executives.
• Working through the legal process for ACCC allegations and High Court finding.
• Working with the Court on appropriate compensation for ground handling outsourcing breach.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Increased extreme weather events

Transition Risks

• Development of alternative fuel and changes to government policy, law and regulation

Opportunities

• Investing in fuel-efficient aircraft

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainability
• Decarbonisation
• Climate Action
• Sustainable Aviation Fuels (SAF)

Environmental Achievements

• Reduction of 146 million single-use plastic items, targeting zero single-use plastics by 2027
• Zero waste to landfill by 2030 (excluding quarantine waste)
• A321P2F (passenger to freighter conversion) with ~30% lower emissions and ~40% greater range compared to B737F

Social Achievements

• Roll-out of new inclusivity training to frontline staff in 2023
• Strong recruitment and retention, with attrition rate stabilizing at 5%
• Establishment of Qantas Group Pilot Academy and Qantas Group Engineering Academy

Governance Achievements

• Disciplined application of the financial framework enables flexible strategic investments and shareholder distributions
• Integrated layers of risk management reduces earnings volatility
• ESG included in all business decisions

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (e.g., APU shortages)
• Labour availability and training constraints
• High cost of Sustainable Aviation Fuel (SAF)

Mitigation Strategies

• Sourcing additional APUs and enhancing maintenance
• Investing in recruitment and training programs
• Establishing the Qantas Climate Fund to invest in SAF scaling opportunities, offsets and operational efficiency, and advocating for supportive government policy

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services
• Opportunities in the SAF market

UN Sustainable Development Goals

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

Sustainable Products & Innovation

• Sustainable Aviation Fuels (SAF)