Cathay Pacific remains committed to maintaining a high standard of corporate governance and devotes considerable effort to putting in place best practices in accordance with our Code of Conduct on Corporate Governance. The structure for governing sustainable development within the Cathay Pacific Group is shown in this diagram:


The functions of these committees and working groups, as well as how we manage risks and ensure corporate compliance, are described in the Sustainability Governance factsheet of this report and the Corporate Governance Report in the Cathay Pacific Airways Annual Report 2014 p.39-49.

The Cathay Pacific Sustainable Development Strategy is designed to embed sustainability into mainstream thinking of the company and hence in everything we do.

The development of the Strategy in 2009 resulted in five “priority areas” against which different departments, business units and subsidiaries of Cathay Pacific have been implementing sustainable development initiatives. These five priority areas enable us to set specific targets and move purposefully toward our goal. They also encompass the key components of who we are and how we work. In 2012, we launched our 20/20 SD commitments, and each commitment is highlighted under each of the five priority areas.

Our Sustainable Development Targets

Although the 20 commitments are being implemented by different business functions, and, in turn, address different stakeholder priorities, they all promote Cathay Pacific’s sustainable development targets which cut across the group’s activities and aim to:

  1. Reduce our overall emissions;
  2. Offer sustainably sourced products and services to our customers; and
  3. Ensure our community programmes are relevant and effective to the beneficiaries.

This is what the above three targets mean to us:

  1. Reducing Emissions

    According to the Intergovernmental Panel on Climate Change (IPCC) and the International Energy Agency (IEA), aviation currently accounts for 2% of global greenhouse gas emissions from human activity. As aviation grows to meet increasing demand, the IPCC has forecasted that, by 2050, the industry’s greenhouse gas emissions could rise to 3%. While forecasts for 2050 can vary significantly, they highlight a challenge that the aviation industry will face over the next 40 years.

    Projected increases in our emissions cannot be left unchecked, and that is why we are firmly committed to reducing our impacts. The industry has directed significant investment towards addressing the challenge, introducing new technology, better operating procedures and sustainable biofuels.

    Within Cathay Pacific, aircraft emissions constitute 99% of our overall CO2 emissions. Therefore we have committed to manage our carbon emissions and contribute to global efforts to reduce aviation’s impact on the environment and climate change. In fact, we commit to improving our fuel efficiency by 2% year on year to 2020, which is in line with ICAO’s target for the industry. At the same time, we are actively managing the energy and water impacts of our facilities, vehicle fleet and the equipment we use across our subsidiaries.

    To learn more about our performance on this target, go to our Climate Change factsheet .

  2. Offering Sustainably Sourced Products and Minimising Resource Use

    We continually examine options to reduce resource use throughout our supply chain and to use materials from sustainable sources (such as Forestry Stewardship Council and Marine Stewardship Council-certified products, or recycled materials). We ensure our procurement team understand the requirements of our Supply Chain Sustainability Code of Conduct, so they can, in turn, ensure our suppliers comply with our standards. We also look for opportunities to improve recycling and waste management across all facets of our operations. These include products and services provided inflight and at airport lounges, back office operations and the maintenance, repair and overhaul (MRO) process of our aircraft.

    To learn more about our performance on this target, go to our Waste Management factsheet, Sustainable Sourcing factsheet and Biodiversity factsheet.

  3. Ensuring the Effectiveness of Community Programmes

    We support and invest in the Hong Kong community, of which we have been a part for more than six decades. Local staff members are also active in community initiatives in the outport countries where we have a presence.

    Since 2011, we began making reference to the internationally-recognised London Benchmarking Group (LBG) methodology in evaluating one of our flagship projects, English On Air. English On Air provides English-speaking opportunities for young Hong Kong residents. The LBG methodology involves assessing how our goals align with beneficiaries’ needs and expectations. We aim to ensure that our community programmes truly respond to their needs and play to our strengths.

    Our global community investment strategy is to leverage the resources of our company and to motivate our staff and passengers to address the needs of the communities we serve, focusing mainly on three areas: youth and education, medical care and environmental conservation.

    Apart from our work in Hong Kong, we strongly encourage our outport staff to get involved in their local communities and to proactively identify appropriate NGO partners with a view to exploring cooperation opportunities that will benefit the local community.

To learn more about our performance on this target, go to our Community Investment factsheet and Our People factsheet.