The Environment

Climate Change

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Climate Change

Mitigating the impacts of climate change remains one of our greatest environmental challenges as a business. We are dedicated to delivering on our commitments to carbon-neutral growth by continuously improving the sustainability of our flight operations, and continuing to call for a global industry agreement on climate change.

Key issues raised by stakeholders on Climate Change
FLY greener. Engaging passengers on offsetting. Being a leader in the industry and in Hong Kong and in carbon reduction, offsetting, biofuels, reporting. Footprint of supply chain. Cathay Pacific's overall strategy.
Engaging with industry partners

Engaging with regulators and groups involved in shaping climate change and aviation policy is part of our climate change strategy. We work with organisations not only in increasing awareness on climate change issues, but also in developing appropriate solutions for the aviation industry.

International Civil Aviation Organization (ICAO) - The 37th ICAO Assembly took place in Montreal in October 2010 to discuss a number of strategic issues impacting on the global aviation industry, including climate change. The resolution of the assembly called for the need to achieve a global annual average fuel efficiency improvement of 2% until 2050; strive for a collective medium term aspirational goal of capping aviation's carbon emissions from 2020; a global CO2 standard for aircraft engines by 2013; and the development of a global framework on economic measures by 2013. The assembly also reiterated ICAO's role in aviation and climate change issues.

International Air Transport Association (IATA) - The IATA AGM in June 2009 agreed to commit to new and ambitious targets for emissions reduction (see here). Aviation is the only industry where collective targets have been endorsed by the whole industry at a global level. Specific analysis and actions continue to focus on an equitable global sectoral approach to emissions accounting, carbon trading, a full range of balanced mitigation measures and investment support for new aircraft. Tony Tyler, who was our Chief Executive between July 2007 and March 2011, was Chairman of the IATA Board of Governors from June 2009 to June 2010; our Manager International Affairs, Owen Dell, is currently Chairman of the IATA Joint Task Force working on the implementation of the IATA climate change targets. We are also actively involved in the IATA Joint Task Force Working Groups and Environmental Committees through representation by our Head of Environmental Affairs, Mark Watson.

Aviation Global Deal (AGD) - Cathay Pacific continues to be an active member of the AGD Group. The AGD Group recognises the need for a global solution to emissions that meets environmental and developmental needs whilst ensuring a level playing field in our industry, and fully supports IATA's work in this regard. AGD also underscores the need for our industry to continue to invest in the sector's key emissions reduction drivers, namely fleet replacement, air traffic and infrastructure improvements and sustainable biofuels.

Climate Change Business Forum (CCBF) in Hong Kong - We continue to be an active patron member of CCBF, a forum for Hong Kong business leaders to collaborate on tackling climate change. CCBF serves as the Southeast Asia anchor on climate change issues for the World Business Council for Sustainable Development (WBCSD). It is also an international network partner of The Prince of Wales's Corporate Leaders Group on Climate Change (CLG), and is often called upon by these and other groups seeking Asian business leadership on climate change and low-carbon issues. Tony Tyler, our Chief Executive between July 2007 and March 2011, was the Chairman of its Executive Council. In 2010, CCBF launched three pieces of research: Every Building a Powerhouse - identifying technologies to radically improve energy efficiency in Hong Kong's existing building stock; Low Carbon Economy for Hong Kong, a Sector Approach Study - recommending regulatory approaches to help Hong Kong transition to a low-carbon economy; and the first Hong Kong Business Survey on Energy Efficiency and Climate Change.

EU ETS and Regional Schemes At a policy level, we do not support the inclusion of international aviation in the European Union Emissions Trading Scheme (EU ETS) as this distorts competition and does not earmark revenue to fund climate change projects. Our ongoing dialogue with governments in Europe reiterates our full support for a global sectoral approach administered by ICAO, as mandated in the Kyoto Protocol. In March 2010, we submitted our responses to the United Kingdom's consultation on the second stage transposition of the EU Directive (2008/101/EC) to include aviation in the EU ETS, in which we reiterated our position on this issue. Despite this, we have been working on reporting under the relevant regulations, and intend to be in full compliance with the EU ETS.

Sustainable Aviation Fuel Users Group (SAFUG) - Cathay Pacific is a member of the SAFUG, which is an industry working group united by the desire to accelerate the commercialisation of sustainable aviation biofuels by developing robust, global sustainability criteria and best practices for the aviation biofuels market. SAFUG is working closely with the Roundtable on Sustainable Biofuels (RSB) bringing together farmers, airlines, fuel producers, government regulators and NGOs to agree on a way forward for obtaining biofuels from responsible and sustainable sources. We subscribe to the sustainability criteria that aviation biofuels must not compete with food and drinking water supplies, biodiversity and local populations.

Cancun COP 16 - We signed the Cancun Communiqué, an initiative of The Prince of Wales's CLG, which defines the international business community's expectations from negotiations urging governments not to wait for one global deal. Instead, they should pursue new sectoral, bilateral or regional agreements, depending on its appropriateness and relevance. For example, the Communiqué calls for a comprehensive global approach on emissions for aviation and shipping.