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Basis of Preparation of the 2010 Sustainable Development Report

a) Reporting tools

To avoid ambiguity, definitions of each parameter are communicated across the Cathay Pacific Group to ensure the quality and consistency of reporting. Data is collated via Swire's Environment, Health, and Safety (EHS) Database for our operations in Hong Kong covering Cathay Pacific, Dragonair, 100% owned and 60% owned Hong Kong-based subsidiaries. Cathay Holidays Limited and outports reported separately via questionnaires.

b) GHG Emissions Accounting and Reporting Policies

The inventory of our greenhouse gas (“GHG”) emissions is reported in accordance with the World Resources Institute and World Business Council on Sustainable Development’s Greenhouse Gas Protocol (2004, Revised Editions).

Organizational boundaries
Cathay Pacific Group has adopted a financial control approach in the reporting of greenhouse gas emissions. The organizational boundaries for the reporting of greenhouse gas emissions include Cathay Pacific Airways and the following 100% owned Hong Kong-based companies (the “subsidiaries”):

  • Hong Kong Dragon Airlines Limited (KA)
  • Cathay Holidays Limited (CHL)
  • Cathay Pacific Catering Services (H.K.) Limited (CPCS)
  • Cathay Pacific Loyalty Programmes Limited
  • Hong Kong Airport Services Limited (HAS)
  • Vogue Laundry Service Limited (VLS)

In 2010, we have also expanded the boundary to include aviation fuel from our 60% owned AHK Air Hong Kong Limited (AHK).

Other principal subsidiaries, as outlined on pages 96 to 97 of the Cathay Pacific Group 2010 Annual Report that are not included within the scope of this report, will be considered for inclusion in the future, where relevant.

Operational boundaries
The operational boundaries for the reporting of greenhouse gas emissions are as follows:

  • Scope 1 – Direct GHG emission, including global CO2 emissions from flights, ground vehicles and Towngas combustion
  • Scope 2 – Electricity and Towngas (production) indirect GHG emissions

The reporting period of the GHG data is the twelve-month period of January to December 2010. Consistent with our 2009 Report, the 2010 Report uses 1998 as the base year for comparing the emissions profile for Scope 1 emissions over time. Hence, all percentages of improvements for Scope 1 emissions are calculated based on 1998 data. However, please note there have been changes in organisation and operational boundaries over the years which will impact comparability.

Scope 1 Emissions
Our Scope 1 emissions include fuel and Towngas usage from ground-based activities in Hong Kong covering Cathay Pacific and the subsidiaries. For 2010, we expanded the scope to include aviation fuel emissions from AHK. In Hong Kong, the CO2 emission factors used follow the guidelines published by the Environmental Protection Department (EPD) of the Hong Kong Special Administrative Region (HK SAR) Government in February 2010 (i). For CO2 emission factors for outport data, references have been made to the International Energy Agency (2010) (ii).

In respect of our GHG emissions from aircraft fuel consumption, our scope includes all flight activities, including testing, training flights and wet lease. As fuel density varies according to a number of factors, we use the Joint Inspection Group’s (iii) recommended specific gravity of 0.80 kg/L to calculate the weight of fuel. We use the IPCC’s emission factor of 3.15 (iv) to determine CO2 emissions from the combustion of aircraft fuel.

We are continuing to work on providing a verifiable number for our HFC emissions in the medium term. This has not been included in this Report.

Scope 2 Emissions
Our scope includes electricity consumption and Towngas production for our operations in Hong Kong covering Cathay Pacific and the subsidiaries. Emission factors used in our scope follow the guidelines published by the EPD of the HK SAR Government in February 2010 and the International Energy Agency (2010).

For GHGs other than CO2, i.e. CH4, N2O, PFCs and SFs are either not applicable or not material to the overall GHG reporting.

Methodologies used to calculate or measure emissions
Refer to Endnote References.

c) Other indicators

Environmental Indicators
This year, the scope of our resource usage includes operations in Hong Kong covering Cathay Pacific, the 100% owned subsidiaries. Air Hong Kong (60% owned subsidiary) who occupy the same headquarter building at Cathay Pacific City, and five of our outports which were able to provide auditable numbers. We will continue to work on increasing the scope to cover all major outports in future reports.

Social indicators
In addition to operations in Hong Kong covering Cathay Pacific and the subsidiaries, we expanded the scope to include AHK on a number of indicators, which are identified on the Social Indicators table.

d) GRI Content Index

The GRI Content Index is prepared with reference to the applicable presentation requirements to meet the GRI G3 Guidelines V.3 A+ application level (as set out on page 2 of GRI Application Levels). The GRI content index does not reflect actual implementation of CX's sustainable development initiatives nor the value or quality of the report and its content. 

e) Other matters

FLYgreener offsets
FLYgreener offsets are calculated as the tonnes of CO2 purchased by all passengers (including staff), using either cash or Air Miles as a method of payment. One tonne of CO2 had a cash price of HK$58.14 from January to October 2010 and HK$54.04 in November and December 2010.  The average Air Miles price was 1,691.5 Air Miles per tonne of CO2 during the year ended 31 December 2010. The total tonnage was computed based on the amount paid during the year.  Cash received during the year related to flights taken in 2008 to 2011.

Fuel efficiency
Fuel efficiency is calculated as fuel usage per available tonne kilometre (ATK).  ATK is defined in the Cathay Pacific Airways Limited Annual Report 2010 as overall capacity, measured in tonnes available for the carriage of passengers, excess baggage, cargo and mail on each sector multiplied by the sector distance.

RTK is defined as traffic volume, measured in load tonnes from the carriage of passengers, excess baggage, cargo and mail on each sector multiplied by the sector distance.

Total fuel usage of 4,920 thousand tonnes includes 102 thousand tonnes in relation to Air Hong Kong. The fuel consumption figure shown on the Environmental Indicators Table on p.27 only accounts for Cathay Pacific and Dragonair for comparability with last year’s report.

ATK of 24,461 million used in this calculation is taken from the Cathay Pacific Airways Limited Annual Report 2010.

Our Communities: Volunteers
The number of volunteers reported refers to employees or cadet graduates of Cathay Pacific and Dragonair whose attendance and participation at an event was recorded in attendance records.

2010 Action Items
This year, the report includes details of commitments included in the 2009 Sustainable Development Report and the actions Cathay Pacific have taken in response to these.

FLYgreener corporate brochure
Refers to a 5-page corporate brochure entitled “Business Guide to Carbon Offsetting with Cathay Pacific and Dragonair” which has been produced during the year and approved by the Cathay Pacific Corporate Communications Department.

Supply Chain Risks
A Supplier’s Code of Conduct exists to set out standard procedures to be followed in order to identify and mitigate any risks which may arise through the supply chain. General Managers received a presentation on this at the October 2010 General Manager meeting.

Baggage handling skills training event
Training provided to cabin crew encompassed a half-day event covering topics such as situational awareness and correct lifting technique.

Fatigue Risk Management System
The Fatigue Risk Management System is a proactive, evidence based, data driven system (p. xx)used to continuously monitor fatigue risk.

Flight attendants learning zone
The learning zone is accessible to cabin crew and addresses personal development topics including “Airline knowledge”, “Wining and dining in the air”, “Self-presentation” and “Service language”.

(i)Environmental Protection Department. (2010, February). Guidelines To Account For And Report On Greenhouse Gas Emissions And Removals For Buildings In Hong Kong. Retrieved from http://www.epd.gov.hk/epd/english/climate_change/ca_guidelines.html

(ii)International Energy Agency (2010). CO2 Emissions from Fuel Combustion - Highlights. Summary Table: CO2 emissions per kWh from electricity and heat. IEA.

(iii)Formed by international oil companies, the Joint Inspection Group performs regular inspections of their airport facilities to ensure that they are operated in accordance with their procedures for handling aviation fuel at airports and upstream aviation fuel facilities.

(iv)IPCC. (1999). Aviation and the Global Atmosphere. Cambridge: Cambridge University Press.