Annual report and accounts 2016
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48<br />
Sustainability continued<br />
Sustainability performance<br />
This year, following a <strong>report</strong> benchmarking exercise, we have refined our focus on sustainability performance measures.<br />
This section focuses on the core areas of our sustainability performance reflecting our most material matters, while a broader<br />
overview across all our sustainability performance measures, consistent with previous years, is provided on page 227. During 2017<br />
we will be working to establish consistent data capture to begin <strong>report</strong>ing on energy efficiency, customer satisfaction <strong>and</strong> supply<br />
chain metrics too. The sustainability programmes, initiatives <strong>and</strong> performance measures presented in this <strong>report</strong> are co-ordinated<br />
across the Group through the IAG sustainability network.<br />
Aspect <strong>and</strong><br />
link to<br />
SDGs<br />
Climate<br />
Performance<br />
indicator Target / future direction <strong>2016</strong> highlights Performance<br />
Jet fuel<br />
(Million<br />
tonnes fuel)<br />
Average age of<br />
aircraft fleet<br />
(Years)<br />
As commercial aircraft remain<br />
reliant on liquid kerosene for<br />
the foreseeable future, IAG’s<br />
climate change focus is on<br />
purchasing more fuel efficient<br />
aircraft, developing sustainable<br />
jet fuel, pursuing operational fuel<br />
efficiency <strong>and</strong> supporting the<br />
CORSIA global carbon offsetting<br />
scheme.<br />
The long-term replacement of<br />
Boeing 747, Boeing 767 <strong>and</strong><br />
Airbus A340 aircraft with Airbus<br />
A350 <strong>and</strong> Boeing 787 aircraft<br />
continues. Some new longhaul<br />
deliveries have been delayed by<br />
approximately one year, however<br />
the average age of the fleet is<br />
forecast to continue to fall due<br />
to significant deliveries of new<br />
shorthaul aircraft.<br />
• Global aviation carbon<br />
offsetting scheme (CORSIA)<br />
agreed<br />
• Sustainable aviation fuels<br />
included in UK Consultation<br />
• 37 new aircraft purchased<br />
(11 Boeing 787s, one Airbus<br />
A380, 12 Airbus A330s, <strong>and</strong><br />
12 Airbus A320s)<br />
• 14 aircraft retired from fleet (four<br />
Boeing 767s <strong>and</strong> three Boeing<br />
747s in British Airways, seven<br />
Airbus A340-300s in Iberia)<br />
• Total aircraft fleet at end of<br />
December <strong>2016</strong>: 548<br />
Million tonnes fuel<br />
Years<br />
7.93<br />
2014<br />
10.5<br />
2014<br />
8.28<br />
2015<br />
10.8<br />
2015<br />
8.89<br />
<strong>2016</strong><br />
10.8<br />
<strong>2016</strong><br />
Flights only<br />
emissions intensity<br />
(gCO 2<br />
/pkm)<br />
Target: 10 per cent improvement<br />
by 2020 compared to 2014.<br />
Grammes of CO 2<br />
per passenger<br />
kilometre is a st<strong>and</strong>ard industry<br />
measure of fuel efficiency.<br />
Another way to interpret this<br />
same metric is ‘how far can be<br />
travelled for one tonne of CO 2<br />
?’<br />
For IAG in 2012, the distance<br />
was 9,950 km <strong>and</strong> in <strong>2016</strong> it<br />
was 10,672 km a 7.3% per cent<br />
improvement.<br />
• IAG achieved 2 per cent<br />
improvement, continuing to<br />
exceed the industry target<br />
of 1.5 per cent annual<br />
improvement in fuel efficiency<br />
• We are monitoring closely<br />
any delays in fleet replacement<br />
<strong>and</strong> its potential impact on<br />
this target<br />
• Board approval was given to<br />
reconfigure nine Boeing 777<br />
aircraft to accommodate an<br />
average of 56 additional seats,<br />
improving emissions intensity<br />
gCO 2<br />
/pkm<br />
2020<br />
target:<br />
87.3<br />
97.5<br />
2014<br />
95.6<br />
2015<br />
93.7<br />
<strong>2016</strong><br />
• Fuel efficiency successes. See<br />
case study page 50<br />
Scope 1<br />
Direct GHG<br />
emissions<br />
(Million tonnes<br />
CO 2<br />
e)<br />
IAG <strong>report</strong>s Green House Gas<br />
(GHG) emissions in accordance<br />
with the GHG Protocol’s three<br />
categories; Scope 1, Scope 2<br />
<strong>and</strong> Scope 3 emissions. Put<br />
simply, these can be summarised<br />
respectively as; our flying, our<br />
buildings <strong>and</strong> our other indirect<br />
sources (such as supply chain,<br />
staff commuting etc.).<br />
• IAG discloses detailed<br />
information about our GHG<br />
emissions annually through<br />
the Carbon Disclosure Project<br />
(CDP). Reports are publicly<br />
available to view online<br />
• <strong>2016</strong> CDP score for IAG under<br />
the new scoring format was C<br />
Million tonnes<br />
CO 2<br />
e<br />
25.22<br />
2014<br />
26.40<br />
2015<br />
28.21<br />
<strong>2016</strong><br />
Economic<br />
return<br />
versus<br />
climate<br />
impact<br />
Revenue per<br />
tonne CO 2<br />
e<br />
(€/tonne CO 2<br />
e<br />
for scope 1 <strong>and</strong><br />
2 emissions<br />
combined)<br />
This new Group metric is<br />
designed as a long-term<br />
measure to track the connection<br />
between economic growth <strong>and</strong><br />
climate impact of our operations.<br />
• We have seen an increased level<br />
of revenue per tonnes of CO 2<br />
e.<br />
This dropped in <strong>2016</strong> due to a<br />
levelling off of general revenue<br />
as explained on page 37<br />
€/tonne CO 2<br />
e<br />
796<br />
864<br />
796<br />
2014<br />
2015<br />
<strong>2016</strong><br />
INTERNATIONAL AIRLINES GROUP<br />
<strong>Annual</strong> Report <strong>and</strong> Accounts <strong>2016</strong>
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