CORSIA
A321neo
Diversity
Net Zero
Technology
eBoarding Pass
Gender Pay Gap
Carbon Intensity
Carbon Offsetting
Operational Safety
Women in Aviation
Operational Efficiency
Anti-Human Trafficking
Sustainable Aviation Fuel
Anti-Bribery & Anti-Corruption
Sustainability
Report
2023
THIS REPORT
Introduction
01 | About This Report | Our Sustainability Approach | ||
02 | Message From the Chief Sustainability Officer | 07 | Sustainability Redbook & Framework | |
04 | Our Sustainability Journey | 09 | Sustainability Governance | |
06 | Awards & Recognition | 10 | Stakeholder Engagement | |
12 | Membership of Associations | |||
13 | Material Matters | |||
Economic | ||||
Good Governance | Transforming into a Digital Travel and Lifestyle Brand | |||
18 | Corporate Governance | 31 | Guest Experience | |
23 | Sustainable Supply Chain | 40 | Technology and Innovation | |
29 | Human Rights | 46 | Information Security and Data Privacy | |
Environmental | ||||
Addressing Climate Change | ||||
52 | Climate Strategy | |||
72 | Waste Management | |||
Social | ||||
Safety As Our Priority | Uplifting Communities in Asean | |||
80 | Operational Safety | 102 | Growing Asean Social Enterprises | |
85 | Occupational Safety and Health | 106 | Celebrating and Supporting the ASEAN | |
86 | Food Safety | Community |
Empowering Allstars
88 Diversity and Inclusion
94 Talent Attraction and Retention
Appendices
- Performance Table
- GRI Content Index
- Assurance Statement
ABOUT THIS REPORT
(GRI 2-1,2-2,2-3)
Capital A Berhad (Capital A or the Group)'s Sustainability Report 2023 marks the first standalone publication of our sustainability journey, demonstrating our long-term commitment to transparent and accountable reporting. In this report, we provide updates on the sustainability initiatives executed to propel our business.
This report provides an overview of our economic, environmental and social (EES) approach, performance and achievements to create long- term sustainable value for our stakeholders. We demonstrate our ability to carefully manage pertinent sustainability risks and opportunities that impact both our business operations and stakeholders.
The focus this year is on championing the spirit of doing more with less
to resonate with our practice of delivering positive sustainable action with the resources we have. In addition, we describe new initiatives introduced as well as the progress and achievements of existing initiatives throughout the year.
This report should be read along with our 2023 Annual Report for more comprehensive disclosure on our operating and financial performance.
REPORTING FRAMEWORK,
GUIDELINES & INDICES
This report was developed based on various international and local sustainability guidelines and standards to provide our stakeholders with meaningful disclosures. The list includes Bursa Malaysia Securities Berhad (Bursa Malaysia)'s Main Market Listing Requirements on Sustainability Statements in Annual Reports with guidance from its Sustainability Reporting Guide (3rd Edition). We have also referred to the Global Reporting Initiative (GRI) Standards 2021.
Other frameworks and guidelines taken into consideration include:
- FTSE4Good Bursa Malaysia (F4GBM) Index
- Dow Jones Sustainability Index (DJSI)
- Task Force on Climate-related Financial Disclosures (TCFD)
- United Nations' Sustainable Development Goals (UN SDGs)
-
Malaysian Code on Corporate
Governance (MCCG)
REPORTING SCOPE AND
BOUNDARIES
This report covers the sustainability performance of Capital A and
its subsidiary companies for the reporting period from 1 January 2023 to 31 December 2023, unless stated otherwise. Throughout the report, the terms "we" or "the Group" refer to Capital A while each subsidiary is referred to by its own name, and the airlines collectively are referred to as AirAsia. Where relevant and available, this report provides comparative historical data.
Disclosures for the airlines include AirAsia Malaysia (MAA), AirAsia Thailand (TAA), AirAsia Indonesia (IAA), AirAsia Philippines (PAA) and AirAsia Cambodia. In 2021 and 2022, we reported only on MAA, IAA and PAA, with TAA statistics reported separately in Asia Aviation Public Company Limited's sustainability statement. This year, TAA has been reincorporated into our reporting scope in line with the Group's
acquisition of full equity in the airline, while AirAsia Cambodia has only recently been set up in late 2023.
All monetary values in this report are expressed in Ringgit Malaysia (RM), consistent with the Malaysian Financial Reporting Standards, unless stated otherwise.
FORWARD-LOOKING STATEMENTS
This report contains certain forward- looking statements which reflect the Group's expectation of future value creation as well as financial and non- financial performance. Such statements are based on current assumptions and circumstances which could change, hence necessarily involve uncertainties. Unforeseen events and risks may arise beyond the Group's control, leading to actual results differing from those stated in the statements.
ASSURANCE
To ensure the accuracy and integrity of our disclosures, this report has been reviewed by Capital A's Sustainability Working Group (SWG), audited by the Group's internal audit department in line with the International Professional Practices Framework, and endorsed by the Board of Directors. The Board has, further, validated the report's relevance to the Group's business and performance. Moving forward, we aim for a more comprehensive internal audit to further strengthen the credibility of our sustainability reports.
CONTACT US
In order to continuously improve our reporting and sustainability efforts, we welcome ideas and comments from our stakeholders. Please direct your enquiries, feedback or comments on Capital A's 2023 Sustainability Report to:
sustainability@airasia.com
Website: https://www.capitala. com/sustainability.html
S U S T A I N A B I L I T Y R E P O R T 2 0 2 3 | 1 |
INTRODUCTION
Message from the Chief Sustainability Officer
(GRI 2-22)
Welcome to our first standalone sustainability report, published in a year that holds special significance for all of us at Capital A. This is the first year since 2019 that all AirAsia airlines have been able to fly uninterrupted by lockdowns at our hubs and stations. It is also the year that our entities charted a return to profitability. In sustainability, we finally reaped the fruits of a strategic realignment that we started over two years ago to prioritise the management of our ESG risks and to communicate better. This earned us improvements in ESG scores across all our tracked indices and won us our first Gold Environmental Sustainability Rating from the Centre for Aviation (CAPA).
2 C A P I T A L A B E R H A D
Of the progress made this year, there are three areas that I wish to highlight. The first relates to the phenomenal effort that our aviation arm has put into rebuilding our network. Getting aircraft that have been mothballed for two years back to tip-top shape remains challenging, given a continued global shortage of skilled manpower, parts and maintenance slots. However, in measuring our guest experience, we found that our airline group had maintained an overall on- time performance of 77% in tandem with a strong recovery of our Net Promoter Score to 52 from a low of 36 in 2022. This was while retaining our 7* safety rating by AirlineRatings.com. Our carbon intensity measures have also fallen below 2019 levels, indicating a full recovery in operational efficiency performance.
Alongside reactivation of our fleet, we also had to recruit rapidly while keeping sight of our diversity target to employ at least 30% women in all job categories. Some significant wins were in raising the number of women in leadership positions in our aviation arm to 15.2% from 10.5% the previous year and increasing female pilot representation to 7% from 6.6%. We also successfully raised the representation of women in IT to 23.9% from 17.7% in 2022.
Third, we launched a fresh approach to communicating our sustainability and net zero commitments, sharing our perspectives on aviation sustainability at numerous national and international fora. In all our AOC countries, we have been able to establish new relationships with stakeholders in the environmental sector, from government officials to carbon market players. AirAsia representatives were also appointed as experts to ICAO's Committee for Environmental Protection.
As we move into the new year, we will be continuing the core initiatives that have been set in motion and raising the bar on others. Ongoing initiatives would include securing regulatory approvals for our plan to manage our CORSIA offset and reduction exposure, and taking our aviation sustainability awareness campaign regional. At ADE, we are finalising plans to introduce renewable energy at our maintenance facilities while GTR aims to expand its fleet of e-vehicles. With our digital business streamlined to drive growth, we are also investing in enhancing our information security infrastructure. We can also expect to see renewed activity at AirAsia Foundation to develop partnerships on sustainable travel.
These initiatives will enable us to continue raising the bar on sustainability performance across the Group and keep air travel safe, secure and accessible.
With regards,
Yap Mun Ching
Chief Sustainability Officer
Capital A Berhad
1st
GOLD
Environmental Sustainability Rating from the Centre for Aviation (CAPA)
Female pilot
representation:
7%
(2022: 6.6%)
Women in leadership positions:
32%
S U S T A I N A B I L I T Y R E P O R T 2 0 2 3 | 3 |
INTRODUCTION
Our Sustainability Journey
2003
- Extension of cabin crew retirement age to 55 years
-
Employed first female pilot,
Captain Janet Chen Nyuk Jin
2006
-
First in the region to have
Airbus A320 full-flight simulators at the new AirAsia
Academy - Hosted first EU-Malaysia civil aviation safety conference
2002
- AirAsia goes
ticketless
2005
• First batch of cadet pilots completed training
• Received first Airbus A320ceo reducing carbon emissions by 15% per seat
2012
- AirAsia Foundation established to contribute to Asean community building
- First airline in the world to operate the Airbus A320 with Sharklet wingtips
2008
- Introduced ambulift facility for disabled guests
2010
- Introduced self check- in kiosk facilities
2013
• | Launched Malaysia's first |
baggage self-tagging service | |
• | First to adopt the Required |
Navigation Performance |
2015
- e-boardingpass available for all flights
2014
- Raised RM7.6 million through To Philippines with Love campaign to aid reconstruction efforts in Typhoon Haiyan affected areas
- INTERPOL and AirAsia reaffirmed commitment to integrate I-Checkit system for enhanced international travel security
- Launched onboard Wi- Fi service to increase connectivity
• Launched mobile bookings
2007
• Employed first in-house counsellor
Authorisation Required (RNP- |
AR) approach for flight paths |
in Malaysia |
4 C A P I T A L A B E R H A D
2017
-
Launched anti-human trafficking training,
#KnowtheSigns - RNP-ARapproach extended to other flight paths in Asean
2019
- Received the first Airbus A321neo, which brings 20% fuel savings per seat
- Launched artificial intelligence (AI) powered chatbot, AVA, to improve the customer experience
-
Published the Group's
Environmental Policy - Opened the first social
enterprise hub, Destination GOOD
Onwards #NeverStop
2022
2020
• Listed on FTSE4Good Bursa Malaysia (F4GBM) Index for the first time
• Revised and strengthened the Anti-Bribery and Anti- Corruption Policy
2018
- Opened a creche at RedQ to support Allstar parents
- Launched Malaysia's first airport facial recognition system, Fast Airport Clearance Experience System (FACES)
- Debuted the new Mirus Hawk seats that avoid 200 tonnes of carbon emissions per aircraft per year
-
Appointed the Group's Chief
Sustainability Officer - Officially a TCFD supporter
-
Published the Group's
Sustainability Policy - Launched the Group's sustainability strategy for the next five years under Sustainability Redbook
-
Participated In the Bloomberg
Gender Equality Index for the first time - Introduced Digital Trip Files to reduce paper printing and manual workflow on the ground
2023
• Hosted our first Sustainability |
Day for key stakeholders |
• Publication of Doing More with |
Less: AirAsia's Guide to Aviation |
Sustainability |
• Contributed to the national |
2016
- First airline in Asean to fly the Airbus A320neo aircraft, improving fuel efficiency by 16%-20% and saving up to 666 litres of fuel per flight
2021
- Announced goals towards net zero carbon emissions by 2050
- Established the Board Risk Management and Sustainability Committee (RMSC)
- Aligned with the Task Force on Climate-related Financial Disclosures (TCFD) for the first time
- Published the Group's gender pay gap analysis
- Introduced the Group's Anti-Harassment Policy
State Action Plan version |
4, incorporating updated |
emissions mitigation measures |
and more ambitious targets |
• Introduced the Group's Diversity |
Recruitment Guidelines |
• Appointed to the ICAO |
Committee on Aviation |
Environmental Protection |
Experts' Working Group |
• Appointed as an adviser on |
the national climate change |
advisory panel |
• CAPA Gold Environmental |
Sustainability Rating |
S U S T A I N A B I L I T Y R E P O R T 2 0 2 3 | 5 |
INTRODUCTION
Awards &
Recognition
Recognition received for efforts carried out in 2022 that were assessed in 2023:
1 | CAPA |
Centre for | |
Aviation | |
2 | FTSE4Good Bursa |
Malaysia Index | |
3 | London Stock |
(LSEG)Exchange Group | |
4 | S&P Global |
Corporate | |
AssessmentSustainability | |
5 | The Stock Exchange |
of Thailand |
Gold rating
In the CAPA-Envest Global Airline Sustainability Benchmarking & Rating Report 2023
3.2/5
A three percentage point improvement from 2021
71%
Ranked 15th out of 124 passenger transportation service companies assessed
40%
Maintained score from previous year
81%
A 14 percentage point increase from the reporting year 2021
6 | Maybank | 59% |
Investment Banking | ||
Above the average ESG score | ||
& Advisory | ||
7 | Bloomberg Gender | 65% |
Equality Index (GEI) | in 2022 - results for 2023 to be released in Q2 2024 |
6 C A P I T A L A B E R H A D
OUR SUSTAINABILITY APPROACH
Sustainability Redbook & Framework
GRI 2-23,2-24
Throughout the years, we have progressively strengthened the foundation laid to embed sustainability in our business. In 2022, we developed a Sustainability Redbook, which sets out our EES roadmap up to the year 2035. This roadmap will guide us towards the Group's vision of delivering positive impact for the business, environment and communities, anchored on the framework below.
Vision | ||||||
To be the brand for sustainable business setting industry | ||||||
standards to strengthen our competitive advantage | ||||||
Mission | ||||||
To think (and be) sustainable by integrating sustainability into our corporate DNA | ||||||
Pillars | ECONOMIC | ENVIRONMENTAL | SOCIAL | |||
Strive for best practice | Reduce carbon footprint | Create an enabling and | ||||
Strategic | inclusive workplace | |||||
Drivers | ||||||
Innovate to raise the bar | Minimise waste | Invest in our communities | ||||
Our Material Matters
Corporate Governance
Sustainable Supply Chain
Human Rights
Guest Experience
Technology and Innovation
Information Security and
Data Privacy
Climate Strategy
Waste Management
Health and Safety
Diversity and Inclusion
Talent Attraction and
Retention
Community Investment
Key SDG
Alignment
Our Sustainability Redbook was designed to complement the Group's five-year business strategy, outlining a net zero roadmap as we progress towards our sustainability objectives. Under the economic, environmental and social pillars, we identified six strategic drivers to deliver outcomes categorised under 12 material topics. We have set internal time- bound targets for the short, medium and long term to track our progress towards our goals.
As the sustainability landscape is dynamic, we will keep reviewing our goals and targets to improve the Sustainability Redbook and align our business objectives with the global sustainability agenda.
S U S T A I N A B I L I T Y R E P O R T 2 0 2 3 | 7 |
OUR SUSTAINABILITY APPROACH
Environmental | • Convert all on-site servers to cloud-based servers | |
Net Zero Emissions | ||
• Cap emissions at 85% of 2019 levels | ||
• Invest in Sustainable Aviation Fuel for utilisation in the | ||
near future | ||
• Utilise bio-fuels to operate ground vehicles | ||
• Explore and purchase suitable carbon offsets for | ||
residual carbon emissions | ||
• 15% of power consumption mix to be renewable energy | ||
• All new buildings to be Green certified and utilise at | ||
least 30% renewable energy | ||
• Achieve full paperless operations | ||
Under the environmental | ||
and social pillars, we | ||
have centred our targets | ||
for 2026 on four focus | Circular Economy | |
areas for better impact: | • Reduce waste to landfill by 10% per annum | |
• Zero single-use plastics | ||
OUR | • Cap food waste at 15% | |
• 30% of total procurement to be from ESG-compliant suppliers | ||
• 10% of materials to be biodegradable or recycled | ||
AMBITIONS FOR | ||
2026 | People and Talent | |
SUSTAINABILITY POLICY | • Achieve a minimum of 30% | |
women representation | ||
across all employee levels | ||
Our Sustainability Policy highlights our | including the Board | |
• Support women in STEM | ||
commitment to minimising our environmental | ||
by achieving a minimum | ||
footprint, securing the integrity of our | ||
of 10% women pilots and | ||
systems, investing in our talent, and serving | ||
engineers, and 30% women | ||
our communities. The policy was approved | ||
ocial | in tech | |
by the Risk Management and Sustainability | ||
• Invest 2% of total | ||
Committee and AirAsia Aviation Group | ||
manpower budget into | ||
Limited Sustainability Committee in the | S | |
training & development | ||
first quarter of 2023, further strengthening | ||
• Achieve 1.5 human capital | ||
our commitment towards advancing our | ||
return on investment ratio | ||
sustainability agenda. It will be reviewed | ||
periodically to ensure that it remains up to date |
with our progress.
Our overall ambition is to do more with the resources we have and be the brand for sustainable business. Moving forward, we will continue to internalise and work towards targets set in the Sustainability Redbook while increasing sustainability awareness across our operations to Win As One.
Communities
- Positively impact 100 million people
- Generate RM12 million revenue per annum from social and micro, small & medium enterprises (MSMEs)
For more information on our Sustainability Policy, please visit https://www.capitala.com/misc/Capital_A_Sustainability_Policy_2023.pdf
8 C A P I T A L A B E R H A D
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Capital A Berhad published this content on 06 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 May 2024 07:08:04 UTC.