The Environment

To identify emission reduction opportunities, we are conducting a study looking at the feasibility of renewable energy and expanding the Group's electric vehicle fleet, trialling more energy-efficient equipment where appropriate, and developing a strategy to phase-out and replace old refrigerants in compliance with local and international requirements. In the past 10 years, we have implemented energy-saving measures such as an automatic lights-off policy and switching off equipment during non-peak hours when they are not used. We have installed energy-saving equipment such as energy-saving lighting systems, occupation sensors, integrated building management control systems, alternative renewable energy from solar heaters, and energy-efficiency enhancing technologies, including a heat recovery system and automatic tube-cleaning system to all seawatercooled chillers. More details are available in the Environmental Performance section of this Report.

FLY greener carbon offset programme

Among our efforts to tackle greenhouse gases, we introduced the FLY greener offset programme in 2007, the first of its kind by an Asian airline. Offset programmes allow participants to contribute to projects that reduce carbon dioxide and help raise awareness among passengers, who have the option of using cash or frequent flyer miles to offset the carbon emissions associated with their flight or make a lump sum contribution.

To date, the uptake has been small but growing, and in line with our peers' programmes. In 2010, we continued educating staff, making it easier for passengers to buy the offsets, and promoting the programme through inflight communications. FLY greener was launched in our duty free inflight sales in early 2010. We also promote the concept via partners such as the CCBF (http://www.whatsyourstory.com.hk/) and, most importantly, have also reported on the benefits that such projects have brought to host communities in China to ensure that our passengers can see for themselves the positive impacts that are generated from offsetting their emissions through FLY greener.

In 2010, we announced our third purchase of offsets which, for the first time, included two projects that feed into the Southern China Power Grid. They are a run-of-river hydropower project in the Pearl River Delta region of Guangdong, and a set of 95 small run-of-river hydropower stations in Chongqing, Guizhou, Sichuan and Yunnan provinces that link the electricity generated into the Pearl River Delta region. The third project consists of a group of 23 wind turbines in Shandong. Since FLY greener's launch, Cathay Pacific and Dragonair have offset staff travel amounting to 43,300 tonnes of CO₂. In total, 3,100 tCO₂ ∆ of offset was purchased by our passengers and corporate customers in 2010, an increase of 6% from 2009, including Swire and several other companies in Hong Kong, China and Taiwan. Cathay Pacific and Dragonair also offset staff travel amounting to 12,000 tCO₂ ∆. All these offset credits are certified under the Voluntary Carbon Standard (VCS) or VER Plus. As part of our commitment to provide credible offsets, before investing in specific projects, we carefully evaluate the environmental and social impacts to ensure they provide maximum benefit to local communities.