Aviation Sustainability and the Environment, CAPA 06-Aug-2020
Delta Air Lines releases Corporate Responsibility Report, remains committed to carbon neutrality
Air France-KLM environmental strategy remains unchanged despite 'unprecedented' COVID-19 crisis
Melbourne Tullamarine Airport to put solar farm into operation in Jan-2021
ACI World: 312 airports gain Airport Carbon Accreditation
New Zealand Ministry for the Environment outlines climate change risks to airports
This CAPA report features a summary of recent aviation sustainability and environment news, selected from the 300+ news alerts published daily by CAPA. For more information, please contact us.
Delta Air Lines releases Corporate Responsibility Report, remains committed to carbon neutrality
Delta Air Lines reported (31-Jul-2020) the following highlights from its 2019 Corporate Responsibility Report:
- Maintained 3.9% total recordable injury rate performance, in line with 2018 and rated as 43% better than the industry average;
- Introduced security incident response tool, designed to mitigate dangerous circumstances that may damage Delta's operations, employee safety or property;
- Posted record net promoter score (NPS) in 2019. Delta's NPS is recorded as having grown more than 10 points during the past five years.
Delta Air Lines chief sustainability officer Gareth Joyce said the carrier said the carrier will "uphold" its commitment to become carbon neutral during the next decade, "despite limiting investments today to aspects of our business and operations that are mission-critical to navigating this crisis". [more - original PR]
Original report: Delta's Corporate Responsibility Report pledges continued commitment to social impact and sustainability in face of pandemic
While 2019 was a banner year for Delta, with the company sharing record profits with employees and committing $1 billion over 10 years toward carbon-neutrality, the devastating impact of the COVID-19 pandemic has created an unprecedented crisis for the airline industry and Delta. Despite this, we have not changed our commitment to environmental sustainability.
"Even as the global pandemic continues, we remain focused on sustainable development and protecting the future of our company," said CEO Ed Bastian. "We are a company deeply grounded in our values with a clear understanding of our commitments, and that will never change."
Delta supports The United Nations Sustainable Development Goals that engage organizations across all sectors to help end poverty, protect the planet and ensure prosperity for all. To be transparent about our goals related to sustainability, Delta reports our progress to the Sustainability Accounting Standards Board and the Task Force on Climate-related Financial Disclosures.
Our 2019 Corporate Responsibility Report expands on the following commitments:
SAFETY
In 2019, Delta's safety culture enabled the company to maintain a 3.9 percent Total Recordable Injury Rate performance, the same rate as 2018 and 43 percent better than the industry average. The company also introduced a special Security Incident Response tool, allowing us to better mitigate dangerous circumstances that might unintentionally damage the airline's operations, employee safety or property. Delta continues investing in personal safety initiatives that improve safety awareness, culture and knowledge.
SUSTAINABILITY
Even as we face challenges related to COVID-19, sustainability work is essential to protecting the planet and must continue. Deltaremains committed to investing $1 billion over the next 10 years on its journey to become the first carbon neutral airline in the world. The company will achieve this by investing in clean air travel technologies, accelerating the reduction of carbon emissions and waste, and establishing new projects to mitigate the balance of emissions. Learn more about Delta's voluntary sustainability efforts here.
"Fortunately, we've always viewed sustainability as a long-term, ongoing investment. That's why we will uphold our pledge to becoming carbon neutral, and investing toward that goal over the next decade to make air travel sustainable for our planet's future - despite limiting investments today to aspects of our business and operations that are mission-critical to navigating this crisis," said Chief Sustainability Officer Gareth Joyce. "As a global community, the need to come together and address a crisis that threatens us all is as important now than ever."
In 2019, the airline operated its first full year with the Airbus 220, the airline's newest, state-of-the-art aircraft featuring best-in-class fuel efficiency. Replacing older aircraft currently has the largest impact on Delta's emissions and efficiency. New aircraft are 25 percent more efficient per seat mile than the aircraft they replace. After COVID-19 forced us to park aircraft, Delta has retired our entire MD-88, MD-90, 777 and 737-700 fleets and portions of the 767- 300ER and A320 fleets earlier than planned, making way for more sustainable flying.
Additionally, Delta operated our first Sustainable Aviation Fuel (SAF) flights in 2019, delivering four Airbus 330-900neos from Toulouse, France, to Atlanta. Delta also partnered with Airbus and Air BP to ensure that the next 20 A321 deliveries from Mobile, Ala., to Atlantawould be carbon neutral by using an SAF blend and offsets. In 2019, we had the first nine of these aircraft delivered. In total, these 13 flights used approximately 141,000 gallons of SAF. The SAF used in the A321 deliveries produced an 83 percent reduction in life-cycle emissions, compared to conventional jet fuel.
PEOPLE
Our achievements of 2019 were possible thanks to the diligent work of Delta employees around the globe who provide world-class service to customers every day. In 2020, their passion shines through on the front lines against the virus, as they work to keep U.S. airways open for essential travel.
Delta's culture of giving back has served as a connection to the communities in which our employees live, work and serve. Delta people donate thousands of pints of blood each year and were named the No. 1 corporate blood donor to the American Red Cross in 2018, 2019 and 2020. The company has also been named an honoree of The Civic 50 by Points of Light, the world's largest organization dedicated to volunteer service for the past three years in a row.
In 2019, for a third straight year, Delta landed on Fortune's 100 Best Companies to Work For list, the only airline to do so. Delta has also been named Best Workplaces for Diversity, Women and Millennials by Fortune and Great Places to Work.
CUSTOMERS
Customers have always been at the center of our business decisions, and that continues to be true as the airline navigates the COVID-19 pandemic. Caring for customers during these times includes electrostatic spraying to sanitize each aircraft before every flight, extensively cleaning high-touch areas and blocking middle seats to give passengers more space while traveling.
Delta's Net Promoter Score (NPS), a key measure of customer satisfaction, hit a record high for the company in 2019. Our NPS has grown more than 10 points over the past five years as the company has focused on customer experience, operational reliability and customer service.
Delta operated 84 percent of our flights on time across our network in 2019. Delta also achieved a record 281 days without canceling any mainline flights, including 165 days with no cancellations on the entire Delta network (including regional partners), a 15 percent increase from 2018.
Air France-KLM environmental strategy remains unchanged despite 'unprecedented' COVID-19 crisis
Air France-KLM CEO Benjamin Smith said (31-Jul-2020) the group's 2Q2020 results "demonstrate the unprecedented impact of the COVID-19 crisis", though cost reduction and liquidity preservation measures rapidly implemented have enabled operational losses to be reduced.
Mr Smith added that while state aid commitments from France and the Netherlands have provided the company with liquidity needed to weather the crisis, there remains "very strong" uncertainty linked to the health situation, the opening of borders and the general economic situation.
Air France-KLM's stated strategy remains unchanged despite the crisis, including sustainability commitments, fleet modernisation and optimisation of fuel use to reduce its CO2 emissions per passenger by 50% by 2030 compared to 2005. [more - original PR]
Excerpt from original report: SECOND QUARTER 2020 Performance strongly impacted by the Covid-19 crisis, significant liquidity available to weather the crisis.
The Board of Directors of Air France-KLM, chaired by Anne-Marie Couderc, met today to approve the financial statements for the First Half 2020 and review the acceleration of the Group transformation plan.
- SECOND QUARTER 2020 The Covid-19 crisis severely impacted the Second quarter 2020 results:
- Revenue at 1,182 million euros, down 5,839 million compared to last year
- Operating result at -1,553 million euros, down 1,976 million euros compared to last year
- EBITDA loss minimalized to an average of 260 million euros per month compared to an initial estimate of 400 million euros thanks to effective cash preservation and cost control measures
- Net income at -2,612 million euros, including an impairment on Airbus 380 and 340 aircraft at respectively -520 and -72 million euros, Covid-19 related over-hedging at -105 million euros, and restructuring provision at -227 million euros
- xNet debt/EBITDA ratio at 4.8x, compared to 1.5x at the end of 2019
The French and the Dutch governments have provided financial packages with conditions attached to increase competitiveness and achieve sustainability objectives. Thus at 30 June 2020 the Air FranceKLM Group has 14.2 billion euros of liquidity or credit lines at its disposal to weather the crisis and restructure its business.
Melbourne Tullamarine Airport to put solar farm into operation in Jan-2021
Melbourne Tullamarine Airport announced (04-Aug-2020) a large solar farm will have the capability to produce enough renewable energy to power all four passenger terminals and is set to generate 17GWh of electricity per annum, equal to nearly 15 per cent of the airport's annual electricity consumption.
Melbourne Airport chief of landside access, utilities and facilities group Lorie Argus stated: "The project is expected to deliver significant annualised energy cost savings, a timely benefit with the impacts of COVID-19 wreaking havoc on the aviation industry". Construction of the solar farm is expected to be complete by the end of Sep-2020 and be operational in Jan-2021. [more - original PR]
Original report: Melbourne Airport's Sustainable Solar Approach
A new solar farm at Melbourne Airport will have the capability to produce enough renewable energy to power all four passenger terminals when it is turned on in January 2021.
The project is the largest of its kind in Australia.
Melbourne Airport is set to generate 17 GW hours of electricity per annum, equal to nearly 15 per cent of the airport's annual electricity consumption.
Melbourne Airport Chief of Landside Access, Utilities and Facilities Group, Lorie Argus, said she was proud of the investment in renewable energy which will reduce the airport's carbon footprint.
"With the airport's electricity demand expected to grow, the construction of our solar farm makes sense for several reasons," said Mrs Argus.
"The project is expected to deliver significant annualised energy cost savings, a timely benefit with the impacts of COVID-19 wreaking havoc on the aviation industry.
"We are committed to growing the airport in an environmentally, socially and economically sustainable way. This renewable energy project is another chapter in that story."
Beon Energy Solutions General Manager, Glen Thomson said the company is excited to be working with Melbourne Airport to deliver Australia's largest behind the meter solar installation - the largest of any Airport in the country.
"The airport location brings with it some unique complexities and challenges, which utilises our collective strengths," Mr Thomson said.
"We congratulate Melbourne Airport on their investment and focus on innovative solutions to their growing energy needs and we look forward to continuing the relationship with similar projects across the airport precinct."
Construction of the solar farm is expected to be complete by the end of next month and be operational in January 2021.
ACI World: 312 airports gain Airport Carbon Accreditation
Airports Council International World (ACI World) announced (29-Jul-2020) 312 airports have been certified under its Airport Carbon Accreditation programme. [more - original PR]
Original report: Airport industry reaffirms commitment to climate action as aviation takes first steps towards post-COVID 19 recovery
As the aviation sector looks towards initial greenshoots of recovery, airports have renewed their commitment to climate action as a cornerstone of rebuilding an industry dealt a devastating blow by the global pandemic.
Through its Airport Carbon Accreditation programme first launched in 2009, the airport industry laid down the gold standard for carbon management in a sector which faces steep challenges in making a positive contribution to limiting climate change.
Eleven years later, with aviation reeling from losses in passenger traffic and revenues, airports worldwide are still showing unswerving determination to work towards sustainable air travel.
Despite the economic crisis and a recovery to 2019 passenger traffic levels not foreseen until 2024, the airport industry recognises that timely action is key to reducing the risk of future global and regional crises due to climate change - which in turn will be crucial in strengthening airport resilience.
Continued commitment through the height of the crisis - 300 milestone reached
Underpinning the sustainability ambitions Of the airport sector, during the height of the COVID 19 crisis a number of airports joined Airport Carbon Accreditation for the first time, and several more progressed further through the accreditation levels.
In fact, it was during the worst of the pandemic that the programme passed the milestone of 300 accredited airports worldwide. The global total now stands at 312 Carbon Accredited airports.
Empowering airports to invest for a sustainable future
In order to ensure that airports can maintain and grow their climate action in spite of the crisis and its impacts, the Airport Carbon Accreditation Advisory Board has approved a set of temporary adjustments to the programme requirements. Amongst others, these changes allow airports to benefit from a one year extension of their certification, a streamlined verification process and thus reduced overall costs of accreditation. In this way, airports are supported during the worst of the economic downturn and enabled to embed climate action into their recovery plans moving forwards.
"Build Back Better"
In addition to being an unquestionable moral obligation, climate action will be key in rebuilding that vital ingredient in the recovery of the sector - public trust. Investing in climate-friendly infrastructure, operational efficiencies and teaming up with partners throughout the aviation eco-system for the benefit of our customers and local communities makes business sense as well as benefitting all our futures.
Niclas Svenningsen, Manager for Global Climate Action, UNFCCC said, "Looking to the post-COVID 19 future, we're certainly going to see the acceleration of certain trends. With huge commitment and determination from the airport industry, their leadership in setting the path towards tangible reductions in climate footprint was already in place. Recovery from the pandemic is an opportunity to Build Back Better. Airports are voting for the future they want with their feet - by taking us beyond the 300 accredited airport milestone even at the height of the hit. This is an industry with an unshakable determination not to just play its part but to make a true difference".
New Zealand Ministry for the Environment outlines climate change risks to airports
New Zealand's Ministry for the Environment published (Aug-2020) the findings of New Zealand's first National Climate Change Risk Assessment, outlining the following risks to airports:
- At risk due to projected changes in temperature, wind, extreme weather events and sea levels. Other hazards include inland and coastal flooding and coastal erosion;
- Climate change could damage airport infrastructure assets, and extreme weather and flooding could compromise their operation;
- Increased hot days may affect aircraft takeoff and damage runways;
- The networked nature of airports to surrounding infrastructure such as access roads and other airports, domestically and internationally, increases the potential for cascading impacts. This heightens the consequences for New Zealand;
- The adaptive capacity of airports varies. Some have invested in plans to address key risks. For others, a lack of finance is a major hurdle and will limit adaptive capacity. [more - original PR]
Excerpt from original report: National climate change risk assessment for New Zealand - Main report
This report presents the findings of New Zealand's first National Climate Change Risk Assessment (NCCRA). The risk assessment gives a national picture of how New Zealand may be affected by climate change-related hazards. It:
- identifies the most significant risks and opportunities for New Zealand
- highlights gaps in the information and data needed to properly assess and manage the risks and opportunities.
The risk assessment identifies 43 priority risks across five value domains (natural environment, human, economy, built environment and governance) and highlights 10 risks considered to be the most significant. These are risks from that need to be addressed most urgently. The risk assessment will enable the Government to prioritise action, including through a national adaptation plan.
The risk assessment will enable the Government to prioritise action, including through a national adaptation plan which will be developed over the next two years.
Further detail on the risk assessment's findings are provided in the technical report, and the method report provides more information on the methodology used. There is also a Snapshot which summarises the main report. See links below