cathay casestudy

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Cathay Pacic

Case studyFuel efciency projects andairmiles carbon osets


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Cathay Pacifc case study

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Fuel efciency projects and airmiles carbon osets

The Cathay Pacifc Group is part o the Swire Group o Companies, with Swire Pacifc as the largest single shareholder.

They have their own listing on the Hong Kong Stock Exchange and in addition to their 114 strong aircrat eet, their

operations include catering services, aircrat maintenance acilities, and ground handling companies. Their corporate

headquarters are at Hong Kong International Airport. Cathay Pacifc has been reporting since 1997 as part o a

commitment to transparency and accountability to their stakeholders. Reporting enables them to communicate Cathay

Pacifcs impact on the environment and the communities in which they operate, as well as the eorts they are making

towards managing those impacts. The case study gives a avour o their external reporting, and some o the ways they

have generated uel efciency savings, and reduced emissions over the last ew years. Their green credentials include the

very frst carbon oset scheme to be launched by an Asian airline.

Much o our long-term strategy is about anticipating and managing change. Future environmental challenges and

tougher environmental regulations mean we will have to do many things dierently. Christopher Pratt, Chairman,

Cathay Pacifc.

Cathay Pacifc was one o the frst airlines to monitor and publicly report its environmental perormance. It began

monitoring perormance in 1997.

In 2008, Cathay was responsible or a total o 14.4 million tonnes o CO2

(tCO2) emissions, bringing a total efciency

improvement o 22.5% since 1998. It achieved efciency savings o 6% in 2005, well on its way to the IATA goal o 25%

uel efciency improvement by 2020, based on 2005 levels. An extract o their historic environmental perormance

presented in their external CSR report is shown overlea.


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Over the years Cathay Pacifc has made a number o successul investments which have driven the sustainability

agenda. It completed eco riendly initiatives in the ollowing areas.

Cathay invested in a number o new greener planes introducing our more Boeing 777-300 and three more Airbus 220-300s. The business cases clearly demonstrated signifcant efciency gains through reduced uel consumption and eet

maintenance costs.

To urther improve efciency and uel savings, in 2008 they established better routing. For example, the Hong Kong to

Europe route was reduced by 18 nautical miles and routes via the Russian Far East by up to 12 nautical miles. This not

only generated uel savings, but also between 0.6 and 0.9 tCO2

per ight on these routes.

Environmental performance tables

Aircraft Operations

Indicators Units

Power/fuel

Electricity consumption

CO2

emissions from electricity

Ground vehicle fuel consumption

CO2

emissions from ground vehicles

Purchased town gas

CO2emissions from town gas

Fuel dumped due to operational reqs

% of fuel dumped

Water

Seawater consumption

Potable water consumption

Maintenance water consumption

Indicators

Paper

Paper consumed in offices

% of paper recycled vs. consumed

Printer cartridges

Printer cartridges purchased

Printer cartridges refilled

Printer cartridges recycled

Refrigerants containing HFCs

Recycled materials

Aluminium cans recycled

Plastic recycled

Metal waste recycled

Waste lubrication oil recycled

Disposed materials

Office waste disposed of

Food waste disposed of

tonnes

tonnes

467

194mWh

tonnes

litre

tonnes

unit

tonnes

tonnes

%

m3

m3

m3

tonnes

%

no.

no.

pcs

kg

kg

kg

kg

L

2008 Units

42,267

22,924

75,912

183

65,473

39

1,333

0.03%

7,440,000

29,175

106,290

2008 Indicators Units 2008

1,616

15%

2,654

1,076

2,447

17,653

24,459

31,687

234,924

2,203

UnitsATK

RTK

RPK

All rights

Fuel consumption

Fuel efficiency

Global CO2

emissions

Global NOx emissions

Global CO emissions

Global HC emissions

Flights only

Fuel consumption

Fuel efficiency

(*) incorporates KA

million

million

million

thousand tonnes

grammes/ATK

improvement since 1998%

grammes/RTK


thousand tonnes in CO2

(1)

grammes/ATK


grammes/RTK


tonnes

grammes/ATK


grammes/RTK

improvement since 1998%tonnes

tonnes

thousand tonnes

share of total fuel consumption %

grammes/RPK


(1) GWP of CO2

is 1; assumes that all other GHG gases are negligible as these impacts still uncertain.

1998

10,544

6,974

40,594

2,343

222

0.0%

338

0.0%

7,380

701

0.0%

1,060

0.0%

40,294

4

0.0%

6

0.0%13,982

5,736

2,007

85.7%

49

0.0%

1999

10,379

7,431

41,247

2,263

218

1.9%

305

9.4%

7,138

688

1.9%

961

9.3%

37,900

4

5.3%

5

12.1%9,827

3,401

1,953

86.3%

47

4.2%

2000 2001

11,121

8,275

47,042

2,429

218

1.7%

294

12.6%

7,661

689

1.7%

926

12.6%

39,061

3

10.5%

5

20.7%8,751

2,560

2,069

85.1%

44

11.1%

11,452

7947

44,466

2,431

212

4.5%

306

8.9%

7,667

670

4.4%

965

9.0%

36,402

3

15.8%

5

20.7%8,062

2,090

2,068

84.3%

46

6.8%

2002

12,493

9,256

49,661

2,583

207

7.0%

279

16.9%

8,147

652

7.0%

880

17.0%

39,213

3

18.4%

4

27.6%8,268

1,885

2,074

80.3%

42

15.5%

2003

12,976

9,114

44,006

2,590

200

10.2%

284

15.4%

8,169

630

10.1%

896

15.5%

38,537

3

21.1%

4

27.6%8,873

2,112

1,953

75.4%

44

10.2%

2004

15,244

11,182

57,167

3,077

202

9.2%

275

18.1%

9,705

637

9.1%

868

18.1%

45,271

3

21.1%

4

31.0%10,056

2,228

2,404

78.1%

42

14.9%

2005

16,634

12,047

65,018

3,325

200

10.0%

276

17.8%

10,487

630

10.1%

871

17.8%

48,566

3

23.7%

4

31.0%10,190

2,171

2,646

79.6%

41

17.7%

2006

18,173

13,362

71,099

3,598

198

11.0%

269

19.9%

11,342

624

11.0%

849

19.9%

52,542

3

23.7%

4

32.8%10,959

2,233

2,825

78.6%

40

19.6%

2007*

23,140

16,713

82,206

4,371

189

14.9%

262

22.2%

13,786

596

15.0%

825

22.2%

55,951

3

31.6%

4

37.9%13,077

2,271

3,217

73.6%

39

20.1%

2008*

24,483

17,547

91,499

4,589

187

15.9%

260

22.5%

14,411

589

16.0%

821

22.5%

70,546

3

24.2%

4

30.7%13,436

2,107

3,627

79.4%

40

19.1%

This year, due to the change in the sco pe of reporting, the 2008

data is not directly comparable to the 1998-2007 results. Please

note that this only includes Cathay Pacific and Dragonair head

office operations in Hong Kong.


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On the ground, Cathay installed energy saving equipment in its Hong Kong headquarters, including computer

controlled air conditioning, lighting and lits, low emission lights, double glazed windows and sensor controlled window

shades.

On board they have developed protocols to reduce inight meal wastage. They also operate an inight waste recycling

programme that was launched in 2006. In 2008, 4.6 million items, including plastic bottles, cups and tin cans, were

collected rom their aircrats or recycling.

In 2007 Cathay initiated FLY greener, the frst carbon oset scheme o its kind to be launched by an Asian airline.

Passengers can support the initiative by contributing cash or Asia Miles points, which are used or projects that oset

carbon-dioxide emissions associated with their travel. Projects currently being supported include a natural gas uel

switch project in Beijing; a natural run o river hydro plant project in Guizhou; and a group o 20 wind turbines in

Heilongjiang, Mainland China. In 2008 this resulted in passengers and companies in Hong Kong, China and Taiwan,

osetting 3.457tCO2.

Cathay Pacifc continues to consider the implications o possible carbon pricing on investment decisions, and in

recognition o increasing consumer demand or green credentials, has set up a carbon oset scheme.

Read CIMAs latest reportAccounting for Climate Change at www.cimaglobal.com/sustainability

The report includes case studies rom other organisations and looks at how management accountants, their skills

and their tools can provide business intelligence to support strategy and inuence decision making, driving their

organisations to mitigate and adapt to climate change.

I you are interested in sharing your own insights and experiences in this area, we would be delighted to hear rom you.Please email us at [email protected]

978-1-85971-638-0 (pd)

December 2009

Chartered Institute of

Management Accountants

26 Chapter Street

London SW1P 4NP

United Kingdom

T. +44 (0)20 8849 2275

F. +44 (0)20 8849 2468

E. [email protected]

www.cimaglobal.com

Saved 0.6-0.9 t CO2

per flight

Hong Kong

London

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