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Annual report and accounts 2016

48 Sustainability

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

49 Aspect and link to SDGs Noise Waste Air quality Performance indicator Target / future direction 2016 highlights Performance Average noise (QC LTO cycle) Average aircraft cabin waste per passenger (Kg/passenger) Aircraft fleet that meet ICAO CAEP 6 standard for NOx emissions (%) Employment Average manpower equivalent (Number) Target: reduce noise per flight by 10 per cent to 1.0 by 2020 compared to 1.1 in 2015. This metric measures average noise per flight taking into account arrival and departure noise for each aircraft type (using QC values which are a relative categorisation based on certified noise levels) and the number of flights operated in a year. Note: for a single flight a Boeing 747 QC score would be 6.0 whereas an Airbus A320 would be 1.0. During 2017 we will be working to establish average aircraft cabin waste baselines and intend to begin reporting Group performance on this from next year onwards. Both British Airways and Iberia’s performance compares favourably with IATA published average cabin waste figures. We are actively working to minimise impact on local air quality through our investment in new aircraft and the improved operational practices. Seeking efficiencies to maintain a competitive cost base but recognise that number of employees is a positive economic and social metric that will fluctuate with passenger demand and business growth. • 99 per cent of fleet meet ICAO Chapter 4 noise standard • 46 per cent of fleet meet latest ICAO Chapter 14 noise standard • Improved continuous descent operations • Noise mitigation collaboration in Madrid • Iberia take lead in EU catering waste project • British Airways progress in reducing on-board catering in shorthaul • British Airways increase in longhaul cabin waste due to increased packaging weight of tuck boxes and Club Kitchen • Trialled electric tug device • Increased instances of single engine taxiing • Limiting use of auxiliary power units • 24 per cent of our aircraft fleet meet latest ICAO CAEP 8 NOx standard • British Airways won Gold accreditation by Fair Train for quality work experience placements, 350 placements hosted QC LTO cycle 2020 target: 1.0 Kg/passenger 0.61 British Airways 2015 % ICAO CAEP 6 62 2014 59,484 1.11 2015 Iberia 65 0.68 2015 60,892 1.08 2016 2016 0.33 67 2016 Average manpower equivalent 63,387 Strategic report Corporate governance Financial statements Additional information 2014 2015 2016 Gender diversity Board, senior management, and Group Level (%) Female IAG encourages greater gender equality at all levels in the workplace including in our general work force, graduate programme, in senior management and at Board level. • British Airways Science, technology, engineering and mathematics (STEM) work experience programmes attracted 19 per cent females to participate, 10 per cent increase on 2015 • Proactive recruitment of female Board members has improved IAG Board’s female representation from 17 per cent in 2013 to 25 per cent in 2016 % Female 43% 44% 44% 23% 25% 27% 23% 24% 25% 2014 2015 2016 Board Group Senior Management

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