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2010 Actions and 2011 Agenda

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2010 Actions and 2011 Agenda
2009 Commitments Progress What we did in 2010 Agenda for 2011
Further develop our materiality matrix to reflect stakeholder and business concerns Completed A detailed response to our stakeholder issues can be found on Engagement with Our Stakeholders

Continue to monitor the issues raised by stakeholders since 2007, and incorporate them into our future plans where appropriate.

Roll out the Sustainable Development Strategy within the company and develop medium to long term commitments for specific departments.

Review and update the Antitrust Policy to ensure compliance with the upcoming Hong Kong Competition Law.

Implement an adequate anti-corruption compliance programme to comply with the UK Bribery Act 2010.

Roll out SD Strategy across the company and develop key departmental short, medium and long-term commitments including targets Partially completed We have met with Cathay Pacific’s internal departments and subsidiaries regarding the SD Strategy. Commitment Papers have also been developed for some departments the next 5 years. There will be a full roll-out of the strategy in 2011.
Stakeholder Engagement
Improving communications to our stakeholders on our CSR initiatives Ongoing In line with our stakeholder engagement strategy, a new focus group was set up in 2010 for social NGOs. We have also engaged strategically with key NGO stakeholders such as WWF. Develop a longer term Stakeholder Engagement strategy.
Climate Change
Develop targets for the reduction of major GHG emission sources Initiated We are developing energy/carbon targets for our main buildings in HK, CX City and KA House. Related work included developing an ISO14064-compliant manual to improve the procedures and quality of data collected across our ground operations and HK-based subsidiaries, in order to help the setting of Group-wide targets in 2011. Implement ground-based GHG emissions reduction targets.
Expand GHG reporting to major outports and subsidiaries Initiated GHG data from four outports and one additional subsidiary (Air Hong Kong) have been included in the 2010 SD Report.
Consider the implications of possible carbon pricing on investment decisions Ongoing A comprehensive study is being undertaken to understand the impacts carbon pricing may have on our business, such that we can better manage these risks.
Undertake a study of climate change impacts to our business Ongoing We have identified some of the operational impacts and are assessing ways to mitigate them.
Launch FLY greener into inflight sales

and offer carbon offsets at different customer touch points including online bookings and at the airport.

This was launched in Jan 2010.

An article on one of the carbon offset projects in Guangdong has been published in The Club magazine in November 2010.
The FLY greener website to be made available on mobile phones.

Improve the FLY greener online booking touch point for customers.
Develop a brochure for corporate clients to encourage further uptake of the FLY greener programme Completed A corporate brochure has been produced. ∆ Develop a concept paper on producing an inflight video on environmental issues.
Streamline our Asian regional flights in terms of services offered to further reduce weight Ongoing

Services on outgoing and incoming flights are being aligned to ensure equipment carried on flights are utilised both ways.

Components of the new equipment to be introduced in 2011 have been rationalised, e.g. previously there were two different types of salad bowls and appetiser plates on regional and long haul flights, whereas now there is only one type of each for both types of flights. These are also made of lighter and more durable material to reduce wastage.

Assess alternative sources to non-renewable material Ongoing Sourcing FSC-certified paper for most of our printing paper, all copying paper at Cathay Pacific City and Dragonair House, paper marketing collaterals, meal tray cards, calendars and diaries. Explore alternatives of more sustainable materials for inflight products.
Environmental Performance
HAS to purchase posi-chargers for all electrical vehicles and expand the scope of real-time task allocation GPS system to locate equipment Ongoing

Till now, two trials have been conducted on the posi-chargers. More technical information need to be collected before confirming the suitability of this fast charger and more trials in HAECO workshop are required in 2011. Purchase budgeted for 2011.

The first trial of the real-time task allocator was completed in November 2010. The software will be fine-tuned to improve its reliability. A re-trial will be conducted in early 2011.

HAS to implement a GSE Replacement Programme.

HAS to phase out all pre-Euro and Euro 1 vehicles in the fleet.

Vogue Laundry to install a new flash steam recovery system to recover waste steam for use by the boiler to generate hot water. This will achieve 5% saving in boiler fuel use.

CPCS to replace fluid cooler coil for the blastchiller.

CPCS to install a solar heater for preheating boiler water.

Vogue Laundry to install a new flash steam recovery system to recover waste steam for use by the boiler to generate hot water. This will achieve 5% saving in boiler fuel use Ongoing

Flash recovering system project has been carried over to 2011.

In addition, a variable speed compressor was introduced in 2010, and the compressed air distribution system was upgraded, achieving a direct electricity saving of 3%-5%. This consists of an automatic switch control, and the system provides improved compressor room ventilation and air distribution and configuration.

Develop a formal strategy for vehicle replacement across the Cathay Pacific Group Ongoing Engaging with Group companies to collect existing data.
Develop guidance documents for our outport offices to improve resource use and waste management practices Initiated This is part of our Sustainable Development Strategy implementation, and work has been initiated.
Develop performance targets for non-GHG environmental data Ongoing Non-GHG targets were developed. These were adopted by Management in November 2010 and will be communicated in 2011. Communicate non-GHG targets to staff and develop a strategy to achieve these targets.
Provide training to improve staff awareness of our company’s corporate sustainability efforts and targets, and engage them to play a role in these initiatives.
Track environmental data in our major outports Ongoing Starting with water consumption, electricity consumption and printer cartridge use at our major outports. Expand the Sustainable Development Report scope to include additional environmental metrics.
(Report findings of water consumption, energy use, waste data in 2010 report – p.23)
Green review of all IT equipment, in particular, data centres at Cathay Pacific City and Dragonair House Initiated There is a current proposal to replace our printers/photocopying machines at our CX City and KA House with better environmental performance.
We Put Safety First
Zero high risk or severe incidents Ongoing There were 2 high risk incidents recorded in 2010.
Introduce a Fatigue Risk Management System Completed The FRMS was launched in September 2010. ∆
Measure the safety culture of cabin crew Completed Refer to the ‘We Put Safety First’ section.
Launch of new Work injury rehabilitation programme for HKIA airport staff Ongoing Planned for 2011. Launch of a new work injury rehabilitation programme for HKIA airport staff.
Develop SMS Company handbook and elearning for all staff Ongoing New joining crew now complete an e-learning module related to OHS as part of induction training. Launch an SMS e-learning module.
Cabin Crew to attend a half-day training session on baggage handling skills Completed This has been made an annual half-day training event for cabin crew. ∆ Launch an aircraft damage prevention programme.
Release a Company Alcohol and Other Drugs Policy Should be completed by Dec 2010 Should be released by end of 2010 as part of the work coming out of the Medical Team (Dr Rose Ong, CMD).
Ensure all cabin crew complete a new e-learning module related to OHS Initiated To be completed in 2011.
Focus on Customers
Develop a chemicals plan to help different departments understand the health and environmental impacts of the chemicals they use in their operations Not progressed This will follow on from the roll out of the SD Strategy, hence action has been carried over to 2011. Develop a chemicals plan to help different departments understand the health and environmental impacts of the chemicals they use in their operations.
Implement a new system to generate customer trends and feedback Ongoing System to be developed in 2012-2013. Improve and refine the way in which we respond to passengers following the launch of the empowerment initiatives.
Enrich sustainability content in inflight magazines and the corporate website Ongoing Featured inflight waste article in Discovery Magazine (Oct/Nov issue).
Has been updated on corporate website.
Produce a carbon offset video, such as on Flygreener, for the inflight entertainment system.
Use the online CX blog to communicate our progress on sustainable development issues and reach out to an important customer segment Ongoing Engagement with the relevant departments to arrange access.
Purchasing and Supply Chain
Develop education and briefing packs on the Supplier Code of Conduct to all CX staff, followed with internal briefing sessions Initiated Continue into 2011. Conduct staff briefing sessions on the Supplier Code of Conduct.
Continue to inform the Swire Supply Chain Sustainability Group Completed Meetings between the Purchasing Working Group and Swire were held. Continue to liaise with other Swire Companies on “Best Practice” sustainability and CSR issues in the Supply Chain.
Continue active membership of the Hong Kong Green Council Completed We continue to be a member of the Green Council, and attended Council meetings.
Formalise approach on sustainable sourcing of food Initiated
Carry out site visits of suppliers deemed to be high risk Initiated Working on a robust approach to compliance visits. Work with suppliers toward full compliance of our Suppliers Code of Conduct.
Assess high risk suppliers using compliance-checking procedures on a more regular basis Not progressed Deferred to 2011. Assess high risk suppliers on a more regular basis using compliance-checking procedures.
Implement a process of internal engagement at Cathay Pacific on supply chain risks including outports Completed Presentations on supply chain risks and the Supply Chain Code of Conduct were held at the Quarterly General Managers Meeting in October, with participation from outport General Managers. ∆
Growing a Winning Team
Provide better preparation and support for new recruits of flight attendants, by means of an online website called the Flight Attendant Learning Zone Completed The Flight Attendant Learning Zone was made available from May 2010. ∆

Renovate and update the Airbus mock-up such that the product environment enables upgrading of our training quality.

Provide CISM training for HKIA frontline airport staff.

Raise awareness amongst staff on work stress management.

Encourage staff in bringing new ideas for operational improvement
Publish e-case studies in Learner’s World to share learning on customer service for cabin crew Completed Launched in January 2010. For ISM training, discussion, pre-class preparation, scenarios with passengers. Launch the new B777 mock up at the Training and Development Centre (TDC) to enhance induction training.
Increase awareness of all policies relevant to employees, particularly the company’s CSR-related policies Ongoing Staff presentations and participation in different team workshops e.g. ISD (env com), outports (Supply Chain CoC) Utilise different channels to communicate the Sustainable Development Strategy.
Investing in Communities
Measure and evaluate the outcomes of our community involvement using established models.