Aviation Sustainability and the Environment, CAPA 02-Jul-2020

The Council of ICAO today agreed to provide a clear safeguard, in light of the COVID-19 pandemic, to the CORSIA - Carbon Offsetting and Reduction Scheme for International Aviation, the first ever global market-based measure being applied for any industry sector.

The CORSIA was designed to address gaps in aviation's ability to reduce and eliminate its CO2 emissions through ongoing innovations in aircraft design, propulsion, operational procedures, fuels and other more sustainable means, to achieve the sector's aspirational goal of carbon neutral growth from 2020.

ICAO Assembly Resolution A40-19, which defines the CORSIA, includes modalities to adjust the CORSIA both in case of an unforeseen circumstance that affects the sustainability of the scheme or an inappropriate economic burden such as that caused by COVID-19, as well as for reviewing the need for adjusting the design elements of the scheme through periodic reviews every three years.

The impact of the COVID-19, significantly lowering international aviation operations, traffic and emissions in 2020, would lead to a consequential reduction in the CORSIA baseline, calculated as the average of 2019 and 2020 emissions from the sector. This, in turn, would create an inappropriate economic burden to aeroplane operators, due to the need to offset more emissions although they are flying less and generating less emissions.

As the safeguard in light of paragraph 16 of Resolution A40-19, the Council determined that the value of 2019 emissions shall be used for 2020 emissions to avoid inappropriate economic burden on the aviation industry, for the CORSIA implementation during the pilot phase from 2021 to 2023.

The decision of the ICAO Council acknowledged that making use of the significantly unexpected traffic and emissions results being experienced this year due to COVID-19, will disrespect the originally-agreed intention and objectives of ICAO's 193 Member States when they adopted CORSIA in October 2016.

"Council States today have made a measured assessment and have come to the most reasonable solution available given our current and very extraordinary circumstances," remarked ICAO Council President Salvatore Sciacchitano.

Additional points were raised by Council States on the impacts of lower 2020 traffic and CO2 emissions to other CORSIA design elements, such as an emission threshold for CORSIA new entrants, and the selection of an operators' emission basis for offset calculation during the pilot phase, and it was confirmed to use the value of 2019 emissions for these design elements.

In addition to the safeguard during the pilot phase, there could be implications to the subsequent phases of CORSIA in light of how the sector's recovery would take place, and more data and analysis of the situation and impacts on CORSIA will be needed. In light of paragraph 17 of Resolution A40-19 on the CORSIA periodic review beginning in 2022, which coincides with the next session of the ICAOAssembly, States are expected to undertake a review of CORSIA for its possible adjustments to be applied from subsequent phases.

In moving forward to take actions for supporting the aviation recovery from COVID-19, the Organization is considering the need and means to facilitate the green and resilient recovery for sustainable aviation from a longer-term perspective, which is aligned with the ambition of the Paris Agreement and also with the recent ICAO CART recommendations on sustainability. Together with the review of CORSIA, a strong process is in place to accelerate innovative in-sector CO2 reduction measures, including the ongoing ICAO CO2 reduction stocktaking process as part of exploring the feasibility for a long-term aspirational goal.

The EU will take part in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) from the start of its voluntary phase on 1 January 2021. Today, the Council adopted a decision sealing this EU position, which member states will have to notify to the International Civil Aviation Organisation (ICAO) by 30 June 2020.

UPS Publishes 18th Annual Sustainability Report Highlighting Progress

• Announces achievement of obtaining four 2020 goals, one year early
• Showcases leadership in comprehensive reporting & disclosure
• Issues company's first ever Sustainability Accounting Standards Board (SASB) Report

UPS (NYSE:UPS) today announced the launch of its 18th annual Sustainability Report, "Accelerating Sustainable Solutions." The digital Report is fully interactive and details efforts that took place during 2019 to advance the company's 2020 and 2025 sustainability goals in alignment with its enterprise strategy.

Most notable is surpassing four goals one year ahead of schedule, including:

• $123.8 million in charitable contributions,
• 21.7 million employee volunteer hours,
• 15.4 million trees planted, and,
• a 3.1% reduction in auto accident frequency.

"UPS established sustainability goals in 2016 to address our environmental impacts, advance industry-leading safety programs, and strengthen the communities where we live and work," said Suzanne Lindsay-Walker, UPS chief sustainability officer (CSO) and vice president of environmental affairs. "We believe our customers and stakeholders deserve the most credible information about our sustainability performance. That's why we are an industry leader in comprehensive sustainability reporting and disclosure that meets global standards."

In addition, UPS is expanding our disclosure for investors by introducing our first Sustainability Accounting Standards Board (SASB) report. The report allows investors to more easily compare companies within and across industries. It also highlights UPS's commitment to further align business imperatives with sustainability strategies, including the company's ongoing efforts with alternative fuels.

In the last decade, UPS has invested more than $1 billion in alternative fuel and advanced technology vehicles and supporting infrastructure. The company is now the
largest user of renewable natural gas in the transportation industry and has a specialized alternative fuel and advanced technology fleet of more than 10,300 vehicles.
Recently, UPS announced plans to purchase more than 6,000 natural gas trucks through 2022. And, in January, UPS announced an investment in the UK-based technology startup Arrival and committed to buy 10,000 of its electric vehicles.

The UPS Foundation Surpasses Goals

Working in concert with UPS Sustainability programs, The UPS Foundation supports both environmental and social goals, and today also announced the company has surpassed tree planting and employee volunteer goals. Since 2015, more than 15.4 million trees have been planted in 58 countries, helping to provide sources of food, jobs, protection from weather, climate events and erosion, and cleaner air for generations to come. The achievement is the result of UPS employee engagement and collaboration with leading environmental non-profit organizations supported by funding from The UPS Foundation, including the Arbor Day Foundation, The Nature Conservancy, Earth Day Network, Keep America Beautiful, National Park Foundation and World Wildlife Fund.

Likewise, the company has surpassed its goals for employee volunteerism fueled by a 60 percent increase in volunteer hours since 2011, providing volunteer hours representing more than $533 million in support to thousands of non-profit organizations around the world. UPSwas recently named a 2020 honoree of The Civic 50 by Points of Light, the world's largest organization dedicated to volunteer service. The award recognizes UPS as one of the 50 most community-minded companies in the U.S.

Also in the area of social responsibility, UPS has taken action to address racial inequality by mobilizing its workforce and network of non-profit organizations to drive meaningful results. New, focused efforts include support of legislation against hate crimes, funding for programming to support employment, education, small businesses, advocacy and reform, and a new pledge of one million UPSemployee volunteer hours to support mentorship and educational programming in underserved Black communities.

As a proud leader in corporate sustainability, UPS has issued an annual sustainability report every year since 2003 and sought external assurance annually since 2009. UPS completed its first materiality assessment in 2011 and continues its legacy of transparency and disclosure by reporting to the Comprehensive level of the GRI Standards framework. The separate GRI Content Index, externally assured by Deloitte & Touche LLP, provides details about UPS's sustainability management approach, data and policies.

DHL plans "perfect flight" from Leipzig to New York City

The demonstration flight will be carried out under real operating conditions with the cargo plane loaded to its usual capacity.

• North Atlantic Crossing Flight carried out with maximally eco-friendly approach
• Reduced air traffic due to Covid-19 allows optimal flight conditions
• DHL Express Airbus A330-200F to consume minimal possible amount of jet fuel
• All air traffic control units support demonstration flight along the route

DHL Express is conducting a ground-breaking demonstration flight early in the morning of July 1. On its flight from the DHL hub in Leipzigto JFK International Airport in New York City, the A330-200F is scheduled to consume a considerably lower amount of fuel and generate reduced CO2 emissions. This has been made possible by the less busy airspace as a result of the Covid-19 pandemic. DHL's operating airline European Air Transport GmbH has identified more than 50 actions to support a "perfect flight" that will save jet fuel and reduce CO2 emissions. These range from a pre-flight engine washing to improve aerodynamics, to route optimisation using a state-of-the-art flight planning system and an optimal take off route (unrestricted climb to cruising altitude from Leipzig/Halle Airport), right through to a best possible descent procedure at New York John F. Kennedy International Airport where the aircraft descends in a constant angle with minimum engine power.

"It is our purpose every day to connect people and improve their lives," said Alberto Nobis, CEO, DHL Express Europe. "We want to get our customers' shipments to the desired destination country as fast as possible. That is why we have locations in more than 220 countries and territories around the world. We are also aware of our responsibility towards the environment and we try to use innovative technologies to apply all possible levers in our logistics chain to become more efficient and environmentally friendly. Optimal routes and less jet fuel consumption will help us to become even greener."

The "perfect flight" will be carried out under real operating conditions with the cargo plane loaded to its usual capacity (approx. 60 tons of freight). The flight is scheduled to take off from the DHL hub at Leipzig/Halle on Wednesday July 1 at around 3:15 a.m. (Central European Summer Time). The arrival in New York City is scheduled for 12:05 pm (CEST) on the same day. DHL Express developed an optimal flight scenario in cooperation with all air traffic control units and other aviation partners along the Atlantic route, including German Air Traffic Control (DFS), Eurocontrol, NATS (National Air Traffic Services, U.K.), IAA (Irish Aviation Authority), Shanwick Oceanic Control, NavCanada, ISAVIA (Iceland), IATA (International Air Transport Association), the FAA (Federal Aviation Administration) and PANYNJ (Port Authority of New York and New Jersey). A total of 13 participating institutions have committed to support an optimal flight route and altitude taking into account actual weather conditions, wind, and other air traffic during the flight. The jet fuel saving of the flight is anticipated to be 1,000 kg, which corresponds to a reduction in CO2 of 3,150 kg.

Roy Hughes, Executive Vice President, DHL Network Operations Europe, said: "We are delighted to have so many partners on board for this flight. Together we have thoroughly prepared for it and are looking forward to its execution, as well as the results. Our 'perfect flight' can demonstrate a route to making air freight more efficient with the lowest possible fuel consumption and a reduction of CO2 emissions. With this demonstration flight we can gain important insights for the air transport industry and contribute to the Deutsche Post DHL Group's climate goal of net zero emissions from transportation."

This is just one of many initiatives that the Deutsche Post DHL Group is implementing on its way to making logistics and aviation as environmentally friendly as possible. With measures such as the current A330-200F fleet renewal and the acquisition of 14 new Boeing777F aircraft which generate up to 18 percent less CO2 emissions, as well as the construction of an environmentally friendly logistics center at Cologne/Bonn Airport in 2019, the company has invested heavily in the modernization of its airfreight operations in recent years. In addition, Deutsche Post DHL Group uses green alternatives to conventional fuels in various operations. Within the framework of its membership of aireg e.V. and the Global Alliance Powerfuels, the company is pressing ahead with the development of sustainable fuels such as bio-fuel or e-fuel. For road freight, electric delivery vehicles already account for a significant proportion of the company's fleet.