CORPORATE SOCIAL RESPONSIBILITY REPORT 2009-10

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20 COMBATING CLIMATE CHANGE Climate change knows no borders, so global action is needed to limit greenhouse gas emissions. Air transport accounts for around 2% of man-made CO 2 emissions, but the sector’s continued growth requires it to pursue and increase its efforts to limit its impact. Determined to play its part, Air France-KLM seeks a global commitment for the air transport sector, which it sees as crucial. We call on the United Nations to include international aviation in a separate post-2012 global agreement under the aegis of the International Civil Aviation Organization (ICAO). Keen to move forward, we are playing our role in this joint effort by driving down our CO emissions, notably by bringing forward the 2 deployment of sustainable biofuels. These are key to reducing our carbon footprint and our dependence on fossil fuels. OUR JOINT COMMITMENTS Air France-KLM set up a ‘Climate Action Plan’ to combat climate change. As part of this, the Group: - supports the Kyoto Protocol and efforts to achieve a new agreement post 2012. It has joined schemes to ensure a fair contribution of the aviation sector in collective efforts; - continues to modernize its fleet, contributes to aviation research, and encourages the entire supply chain to cut CO 2 emissions; OUR MANAGEMENT OBJECTIVES OBJECTIVES AIR FRANCE -20% CO 2 emissions for flights to overseas territories based on 2005 level -5% CO 2 emissions for domestic flights based on 2005 level 3.7 liters/passenger/100km -300,000 metric tons of CO 2 per year by 2012 -500,000 metric tons of CO 2 per year by 2020 60% of ramp equipment fleet to be electrically powered by 2020 AIR KLMFRANCE Green electricity in the offices Partnership with WWF-NL: CO 2 neutral growth (2007-11) 20% CO 2 reduction per ton/kilometer in 2020 (based on 2009 levels) Support innovative research programs Target partly achieved On target Target achieved or exceeded SCHEDULE ACHIEVEMENTS 2009-10 STATUS 2012 2012 2009-20 2020 2010 2011 2020 Permanent - asks all its staff to work towards ambitious environmental action plans, from fuel saving in the sky to cutting emissions on the ground; - promotes research programs for renewable energy sources such as sustainable aviation biofuels; - supports environmental protection programs led by NGOs; - provides its customers with transparent and reliable information on their travel-related CO 2 emissions, via a calculator based on real operating data, and opportunities to compensate them. Targets exceeded thanks to the replacement of B747s with B777-300s back in 2008. Reductions extended by capacity cuts in response to the economic crisis. 3.8 liters/passenger/100km in 2009 189,000 metric tons of CO 2 saved in 2009-10 (Fuel plan) 41% of ramp equipment fleet electrified in 2009-10 More than 85% of electricity used by KLM buildings in the NL is generated from renewable energy No CO 2 growth in current year KLM partnership with WWF (NL) complemented by endorsement and support the road to sustainable aviation fuels: heading Sustainability Board SkyNRG ~ 60,000 metric tons of CO 2 saved in 2009 vs. 2008 (Weight & Fuel program) Technical University Delft; CleanEra project and Technical University Delft Design Challenge; co-creation of design for aircraft of the future Development of alternative fuels
BACKGROUND: AIR TRANSPORT’S CARBON FOOTPRINT The air transport sector contributes around 2% of global CO 2 emissions and 1.6% of total greenhouse gas emissions. Share of air transport industry in global man-made CO 2 emissions ~2% 3-4% 15-17% Source : IPCC 1 , Stern Review Air Transport Maritime Transport Transport Ground Transport POLITICAL AND REGULATORY CONTEXT From Copenhagen to Cancún Reaching a global agreement to fight climate change effectively is a massive challenge. It calls for other meetings beyond COP15 (the 15th Conference of the Parties), held in Copenhagen at the end of 2009. The main achievement of COP15 was to gather 192 United Nations member countries to discuss climate change issues for which the main goal was to agree on a global agreement for the reduction of greenhouse gas emissions. Achieving this goal will require similar summits, such as the next one, COP16, to be held in Cancún, Mexico, in December 2010. As the airline business is by nature global, its emissions can only be effectively cut as part of a global sector approach. Air France-KLM plays a leading role in developing concrete proposals for its sector, within IATA (International Air Transport Association), AEA (the Association of European Airlines) and the specially established Aviation Global Deal Group (AGD). UNDERSTANDING… THE COMMITMENT OF AIR FRANCE-KLM AND THE ENTIRE AVIATION SECTOR At the Copenhagen Conference, IATA pledged on behalf of all its member airlines to play its part in combating climate change. Air France-KLM has worked for many years to cut its impact on the environment and is also playing a significant role within IATA. In an unprecedented move, manufacturers, airlines, airports and air traffic control bodies have jointly and globally committed to specific goals to cut aviationrelated emissions: - by 2020, to improve energy efficiency by 1.5% a year; - from 2020, to ensure the stabilization and neutral growth of CO emissions; 2 - by 2050, 50% reduction of CO emissions 2 compared to 2005 levels. 1 Intergovernmental Panel on Climate Change 2 www.sealthedeal2009.org/the-climate-petition 3 www.copenhagencommunique.com Air transport ~2% of global man-made CO2 emissions Air France and KLM CEOs involvement The CEOs of Air France and KLM personally supported the UN-led ‘Seal the deal’ campaign 2 . They also both signed the ‘Copenhagen Communiqué’ 3 , a declaration promoting an ambitious global agreement to curb climate change, together with 700 other companies in more than 60 countries. Air France-KLM prepares to join the European Emission Trading System The European Union system for trading greenhouse gas quotas, set up in 2005, was revised in 2008 to include the aviation sector. The modified directive will apply to the airline industry from 2012. In 2009, the Group started gearing up for the directive’s application. For Air France-KLM, this meant filing monitoring plans for emissions and activities. The Group has played a key role in the first phase of the EU system and remains attentive it does not create unfair competition. Consistent national commitments • In France: two years on from the Grenelle Environment Summit Air France signed in January 2008 the Commitments Agreement for the aviation sector at the Grenelle Environment Summit. After two years of monitoring, the French civil aviation authority (DGAC), confirmed that all partners had worked hard to achieve their commitments. Airlines continue to address their environmental impact, despite the crisis that has hit them particularly hard. The monitoring of commitments made by Air France shows it is well on track to meet its goals. • The Dutch Knowledge & Innovation Agenda The Knowledge & Innovation Agenda was submitted to Minister Eurlings, the Dutch Minister of Transport, Public Works and Water Management, on 7 September 2009. The document serves as an integral action plan with involved parties to make the aviation more sustainable. COMBATING CLIMATE CHANGE 21
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CORPORATE SOCIAL RESPONSIBILITY REPORT 2009-10

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