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2 — CONTENTS A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — Contents Introduction 03 Letter from the 04 Letter from the Chair 05 About Air New Zealand 06 Strategy & Governance Air New Zealand of Air New Zealand’s of Sustainability at Chief Executive Officer Sustainability Air New Zealand Advisory Panel Sections 08 01. Caring for 12 02. Tackling climate 16 03. Championing 20 04. Strengthening 24 05. Sustainability our people change & carbon sustainable sustainable dashboard & & communities emissions tourism & regions supply chains performance & reducing waste metrics
3 — INTRODUCTION — LETTER FROM THE CHIEF EXECUTIVE OFFICER A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — Letter from the Chief Executive Officer It has certainly been a very decarbonisation will be required, and ensure long-term industry in the past year – through our challenging year for the especially because family competitiveness. And we are up voluntary carbon offsetting connections, business, tourism for this challenge – because there function FlyNeutral, together aviation sector and for Air New and New Zealand’s key export are equally strong environmental, we have contributed close to Zealand. We have worked hard industries rely on international social and economic benefits to $1.5 million towards permanent to ensure the actions we have air transport. be gained. Investing in sustainable native forestry projects across taken over past months will alternative fuels will create skilled New Zealand and achieved an Being able to decarbonise our enable the airline to emerge business is considered vital to our jobs benefiting regional New average uptake rate across all competitively and sustainably Zealand; enable more resilient retail storefronts of 7.1 percent. long-term success and remains fuel supply chains; and utilise from the Covid-19 crisis. But an important part of our business waste materials as feedstock from Air New Zealand has a fantastic some of the decisions we have model, even as we navigate the forestry and landfills or municipal story about what it has achieved had to make as an organisation most challenging economic over the past decade and I’m solid waste, with the ability to circumstances we have ever seen as especially proud this year of our have been painful and I am an airline. Acting on climate change transition to other feedstock gases continued support for strong grateful to the entire Air New using green hydrogen in the future. is not something we consider to biodiversity outcomes with the Zealand whānau – both those be a choice; it is an integral part New Zealand’s high mix of Department of Conservation Greg Foran — Air New Zealand who are still employed with of the recent company-wide renewable energy, reliance on and to supporting regional Chief Executive Officer us, and those who are not – for strategy reset we have called Kia aviation for domestic connectivity, communities through domestic their incredible efforts and Mau (“get ready” in te reo Māori). and high proportion of relatively tourism – including advocating for Through this work it has become short distance regional flights better, more sustainable, tourism personal sacrifices through increasingly clear that as an airline also mean it is uniquely placed outcomes for New Zealand this really difficult time. and as a country, if we are to meet to be an early adopter of next communities. In the coming year The pandemic we are together our shared net zero by 2050 goal generation aircraft (electric, we will continue to build on the facing has accentuated the and take decisive action in the hybrid and/or hydrogen). Air New actions we have taken, leading importance of connection, and coming decade, we need to pursue Zealand is working with several and advocating for action on the crucial role international trade sustainable alternative fuels. aviation equipment manufacturers decarbonisation and in turn, links and international tourism play to accelerate development and fulfilling our promise of taking Sustainable fuels and the in the New Zealand economy. The deployment of future aircraft and care further than any other airline. infrastructure they rely on require impact of the global pandemic engine technology. Establishing significant upfront capital and new Ngā mihi has resulted in Air New Zealand New Zealand as a hub for aircraft policy settings to give producers operating significantly fewer innovation and an attractive confidence there will be long-term flights in the past year, which has location for the trialling of future demand and to ensure commercial seen our carbon emissions reduce aircraft technologies will accelerate viability to the end user. These fuels by 19 percent. While we will rebuild the commercialisation of next currently cost two to three times our airline, there is no doubt our generation aircraft while also that of traditional fuel – but that emissions profile in the coming providing employment and regional commercial gap can be narrowed. years must be lower than it was development benefits. Making this a reality will require pre-Covid. Air New Zealand is one Greg Foran close collaboration, investment A big thank you to our customers of the most fuel-efficient operators Air New Zealand from both the public and private too for your continued support. in the world with a very modern Chief Executive Officer sectors, and strong enabling We have been especially delighted fleet – but further significant policy to attract investment with voluntary offsetting rates October 2020 < B AC K T O C O N T E N T S
4 — I N T R O D U C T I O N — L E T T E R F R O M T H E C H A I R O F T H E S U S TA I N A B I L I T Y A DV I S O RY PA N E L A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — Letter from the Chair of the Sustainability Advisory Panel This has been a terrible year it’s going to have to be on a steeply shocked aviation into a more acute for the global aviation industry. declining trajectory by then, and realisation both of its vulnerabilities capable of demonstrating exactly and of its obligations. And there will be no immediate what its contribution would be to bounce-back either. The avoiding the nightmare of runaway Hopefully, it will have simultaneously lingering effects of Covid-19, shocked governments into a climate change. A nightmare that realisation of how much smarter quarantine controls, residual will make the impact of Covid-19 they now need to be in providing nervousness in some people on the global economy look like the right policy settings to make it about getting back on a plane, a minor market perturbation. possible for airlines to do what they even after a global vaccination It is therefore very encouraging need to do. The new Government programme – it all points to a to see Air New Zealand doubling in New Zealand now has a precious slower recovery for aviation down on its Carbon Reduction opportunity to show what real Programme and its overall leadership looks like in that regard, than for almost every other Sustainability Strategy, as reflected working closely with Air New sector of the economy. in Greg Foran’s introductory Zealand to ensure that one of New It also points to the imperative, words. It would be so easy, facing Zealand’s most iconic companies Sir Jonathon Porritt — Chair of for all airlines, of positioning such incredibly difficult head can indeed continue to thrive Air New Zealand’s Sustainability strategically for that post- winds, having to take such painful indefinitely into the future. Advisory Panel decisions to ensure the company’s pandemic world. There are many And that, of course, is exactly what uncertainties about what that world future success, just to put sustainability means. will look like. But one thing that sustainability ‘on the backburner’. is absolutely guaranteed is that I can say categorically that this is there will be a far greater sense of not happening, and that all of us on urgency in addressing the Climate Air New Zealand’s Sustainability Emergency in which the world finds Panel (page 7) are impressed at itself engulfed. the leadership being shown here both by the Board and by the whole Many governments have – at Executive Team. long last woken up to the scale I have been deeply critical of Sir Jonathon Porritt of this Emergency. And to the the aviation sector in the past. Chair of Air New Zealand’s fact that we can no longer defer Sustainability Advisory Panel immediate radical action. The Ever since governments chose Intergovernmental Panel on to exempt international shipping October 2020 Climate Change tells us, quite and aviation from the binding agreement of the Kyoto Protocol straightforwardly, that emissions back in 1997, the response to of greenhouse gases need to halve accelerating climate change on over the course of the next decade. the part of both sectors has been The aviation sector will not be able complacent and obstructive. to halve its emissions by 2030. But If nothing else, Covid-19 has < B AC K T O C O N T E N T S
5 — INTRODUCTION — ABOUT AIR NEW ZEALAND A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — About Air New Zealand Prior to the 2020 Covid-19 pandemic, Air New Zealand operated a global network, with a Pacific Rim focus, connecting passengers and providing cargo services to, from, and within New Zealand. As a small island nation in the Pacific, air travel provides a vital We carried more than 35,000 tonnes of cargo on our network in connection to the rest of the world and this became even more the past year, supporting New Zealand businesses and facilitating urgent movements of medical and infrastructure supplies and evident as global air travel reduced in the past eight months in transporting high value products to international markets. response to the pandemic. While passenger numbers have dropped significantly since March 2020 due to Covid-19, we operated five repatriation flights to get returning Kiwis home to New Zealand’s shores as well as 26 repatriation charter flights for stranded visitors in New Zealand. This included flying to ports we had never flown to before. Winner 20 3.18m 3.49m 35,045 tonnes of the 2019 Deloitte 200 domestic destinations social media fans, up from 3.08m Number of Airpoints™ members, of cargo carried, including 20,000 Sustainable Business Award in the prior year up 9% from the prior year tonnes under the International in New Zealand Airfreight Capacity Scheme commenced with the Ministry of Transport in May 2020 < B AC K T O C O N T E N T S
6 — I N T R O D U C T I O N — S T R AT E GY & G OV E R N A N C E O F S U S TA I N A B I L I T Y AT A I R N E W Z E A L A N D A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — Strategy & Governance of Sustainability at Air New Zealand Our purpose at Air New Zealand is to enrich our country by connecting New Zealanders to each other and New Zealand to the world. Our Sustainability Framework has helped to guide our Internally, we regularly monitor and track performance against targets in each of our framework areas. In the actions and is aligned with the United Nations Sustainable past year we had a four-member Sustainability Executive Steering Group comprising our Executives responsible for Strategy; Ground Operations; Marketing & Customer; and Operational Integrity and Safety. Moving forward, Development Goals (SDGs), the blueprint to create a better and the full Executive will meet monthly to discuss advancement of our decarbonisation plans and sustainability more sustainable future for all. We have identified nine SDGs agenda given their significance within our new company-wide strategy. that we have the greatest ability to positively impact. Sustainability Framework Manaakitanga Kaitiakitanga Ōhanga Ora 2020 marks the final year for many of our targets as articulated in our Sustainability Framework Our people Our place Our economy and in 2021 we will be sharing our new strategy, focus areas and associated goals and targets. Air New Zealanders Carbon Tourism Key learnings over past years include: Communities Nature & Science Trade & Enterprise • The importance of ensuring • The critical roles that • The need to get started, even at a strong cross-business organisational culture and small scale, to generate learnings collaboration and holding building sustainability and eventually build momentum relevant senior leaders jointly knowledge within senior for larger scale impacts. An accountable for achieving leadership, delivery teams, and example here includes our small the company’s sustainability partners play in achieving our initial substitutions for single-use targets, coupled with strong sustainability objectives. In the plastic inflight materials, which shared governance at the past year, the Sustainability have subsequently encouraged Executive level to ensure Masterclass (see page 10), hosted the exploration of new suppliers delivery within the organisation. for key Air New Zealanders and and products to deliver more external parties, helped to drive widespread waste reductions. more personal and therefore This led us to removing 55 business-wide ownership of the million single-use plastic items sustainability agenda. from our operations through transitioning items to lower- impact alternatives or removing them entirely. < B AC K T O C O N T E N T S
7 — I N T R O D U C T I O N — S T R AT E GY & G OV E R N A N C E O F S U S TA I N A B I L I T Y AT A I R N E W Z E A L A N D A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 Sustainability Advisory Panel Our Sustainability Advisory Panel provides an independent forum by which expert guidance and critique is provided on our sustainability agenda. The Panel is currently made up of four external members who Panel members have been selected based on their unique sets of skills to assist us with driving our sustainability meet with relevant Executives and senior leaders twice a year agenda forward. Current Panel members include Sir Jonathon Porritt, Dame Anne Salmond, Dr Susanne Becken, and Professor Tim Jackson. We were also deeply saddened by the passing of Sir Rob Fenwick in early 2020. to hear about our current progress on sustainability targets, Sir Rob was a member of our Panel since 2015 and we valued him hugely for his contribution, support and provide updates on new developments in the sustainability challenge on our sustainability agenda. He had incredible vision and took significant actions to improve New space, and debate and develop new opportunities. Zealand’s biodiversity, climate and waste reduction outcomes and was fundamental in accelerating corporate sustainability progress across the country. To read more about our Panel members click here. The Panel also provides continuing advice on sustainability matters outside of these bi-annual meetings, including supporting us on sustainability aspects of our new Kia Mau (‘get ready’) strategy. Material issues for 2020 Ongoing engagement with our internal and external stakeholders allows us to consider the key issues they care In this report we focus on the following: about and identify material issues that are relevant to Air New Zealand in the current operating context. Consultation takes 01. Caring for 04. Strengthening place with our employees, customers, investors, suppliers, our people & sustainable industry partners and the communities we operate in. communities supply chains & The identification of our material issues is further supported by our Board of Directors, Executive, and Sustainability Advisory Panel who assess 02. Tackling climate reducing waste the issues that are most material to our operations, the environment, our customers and other stakeholders. Our Executive also reviews the change & carbon 05. Sustainability risks identified in our Enterprise Risk Process and annual and long-term emissions dashboard & strategic planning cycles. The material issues identified as part of this canvassing of multiple 03. Championing performance metrics stakeholders then forms the backbone of our direction as a company, including strategic priorities, sustainability initiatives, mitigation of risk, sustainable and reporting. tourism & regions < B AC K T O C O N T E N T S
8 — S E C T I O N 0 1 — C A R I N G FO R O U R P E O P L E & C O M M U N I T I E S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 – Caring for our people & communities People are and have always been the heart of our airline – he tāngata, he tāngata, he tāngata. Manaaki or caring for our people is inherent in who we are – that care carries through to our customers which is why they choose to fly with us. This year our people have proven yet again how resilient and dedicated they are as we have faced one of the most difficult times in the airline’s history. Despite saying goodbye to friends and colleagues and adapting to Covid-19 Alert Levels, they continue to deliver exceptional service to our customers and outstanding work. < B AC K T O C O N T E N T S
9 — S E C T I O N 0 1 — C A R I N G FO R O U R P E O P L E & C O M M U N I T I E S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 Supporting our more than 1,000 others have taken voluntary periods of leave donations from employees. More than 1,000 Air New Zealanders isolation in hotels while on layover, then more testing and self-isolation Our 10 employee networks connect, support and give a voice people through without pay or reduced hours to support the airline. have received a grant so far. We also worked with AMP to enable on return. Our Chief Medical Officer works closely with the Ministry of to our employees, driving an inclusive workplace where people Covid-19 our FlexiSaver members to make Health to make sure we have the of all genders, sexual identities We have put in place a number of withdrawals of up to 30 percent most up-to-date practices and and abilities are respected, measures to support people exiting from their superannuation account. precautions to ensure safety. The accepted and valued. They have the business and safeguard the team recently established in- been instrumental in us attaining The past eight months have been wellbeing of all Air New Zealanders. Internal secondment opportunities exceptionally challenging – the house compliance and surveillance the Gender, Rainbow and This included promoting our were maximised to keep people impact of Covid-19 on the aviation testing for employees to make it Accessibility Ticks. wellbeing resources: employed for as long as possible. and tourism industries has been easier for them to get tested. We For example, cabin crew and airport In addition, we have learning heart-breaking. Over this time our • Wellbeing Hub with customised are also working with overseas workers supported the Contact modules on understanding our priority has been the health, safety Covid-19 toolboxes on financial hotels to make sure crew have Centre team in answering the tens different communities, what being and wellbeing of our people and wellbeing, managing stress access to fresh, healthy food and of thousands of queries we received inclusive looks like and awareness our customers. and anxiety, self-isolation and rooms with outlooks to improve the every week. The Learning team of the impact of unconscious bias working remotely layover experience. We have worked closely with the partnered with tertiary education on decision-making. Ministry of Health to implement • Weekly wellbeing check-in text providers to promote reskilling We are extremely grateful for courses and funding options for the professionalism Air New Gender measures to keep our crew and messages and emails – people the New Zealand public safe. could tell us how they and their impacted employees. Learning Zealanders have shown throughout materials were also created along this crisis. They have been balance Such measures have included whānau were feeling and request the extensive use of personal a wellbeing check-in. More than with curated LinkedIn Learning steadfast through the constantly protective equipment (PPE), 28,000 responses were received modules. Career transition support changing environment and remain on-site Covid-19 testing for our was provided through: the backbone of our business. We pride ourselves on developing people, isolation of international air • Thrive mental health app • 1:1 Careerdesk advice women and promoting gender Our diverse crew, and the cleaning of aircraft • Employee Assistance diversity, creating a culture that with antiviral products. Programme • Career livestream sessions, empowers women. We have workbooks and videos The difficult economic circumstances meant we had to • Peer Assistance Networks • Promotion of external job people increased the proportion of women in senior leadership positions over make the tough decision to right- • Our Special Assistance Team opportunities – more than the past year, with 51 percent of size our organisation to match was deployed to support 1,000 jobs shared with nearly Diversity creates a better our Airline Leadership Team now the reduced flying demand and vulnerable employees 45,000 views culture, drives innovation and is women. Our gender pay equity gap prepare the airline to be smaller ultimately good business. With shows men are paid 0.89 percent • Health & wellbeing livestreams • Staying Connected Register for more than 132 known ethnicities, more than women in comparative for at least a time. We worked on managing stress, financial departing employees to receive we strive to create a workforce roles, so we will continue to review with our unions and employees to wellbeing and mental health future job opportunities that represents Aotearoa and is a our processes and policies to find alternative ways of reducing costs to minimise the number The Āwhina Trust was set up to It has been enormously challenging place Air New Zealanders can be ensure they promote equality. of redundancies. Unfortunately, provide employees with hardship for our international crew flying our themselves and thrive. we still had to farewell more than grants, using funds provided cargo and repatriation flights. They 4,000 Air New Zealanders and through salary sacrifice and undergo testing before departure, < B AC K T O C O N T E N T S
10 — SEECCTT S I OIN O0N1 — 0 1C— A R IC NAGR FOIN RGO UFO R PR E OO PUL ER& PCE OO PU MM LN EI T&I ECS O M M U N I T I E S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 Māori & of our people leaders and key stakeholders (suppliers, airport • The Airpoints for Schools programme had some travel PPE were delivered, with dedicated PPE flights on average containing: Pasifika operators, key customers and investors) to build awareness that was impacted. We are working with the chosen schools • 416,000 masks development and capability to deliver on our to reschedule them on their • 8,300 sterilised gowns sustainability agenda. In November educational travel • 23,000 medical alcohol wipes 2019, Sir Jonathon Porritt, Chair of Our commitment to growing and • Our internal team of • 5,000 plastic face shields Air New Zealand’s Sustainability developing Māori and Pasifika conservationists, called the • 16,600 litres of hand sanitiser Advisory Panel, facilitated a two day leaders continues, with 17 percent Greenteam, supported several Sustainability Masterclass, where These logistically complex of leaders now of Māori or Pasifika volunteering activities this year, world-class local and international operations provided vital PPE descent1. We are well on track to including the Department of contributors provided expert reserves for New Zealand at a meet, and hopefully exceed, our Conservation Pāteke release in insights and facilitated discussion – time when there was substantial target of 20 percent by 2022. the Arthur Valley assisting participants to build their demand for such supplies Mango Pare, our programme to knowledge and explore ideas and As we look to 2021 we will continue to around the world. Across April develop aspiring Māori and Pasifika actions to meet the sustainability rebuild our community programmes and May alone, we moved leaders through indigenous challenges confronting both Air around the Covid-19 restrictions, around 1,200 tonnes of cargo values, kicked off last year. The New Zealand, the aviation sector adapting where we can. from Shanghai to New Zealand, first 16 participants shared and partners across New Zealand. the majority of it PPE. We continue to keep these key cargo links Playing our overwhelmingly positive feedback open to ensure adequate PPE Community – check out what they had to say supplies globally. here. We are running another part to deliver support course this year and are grateful for the funding received from Te Puni Kōkiri to support this. essential Over the past year our TupuToa intern programme (which aims to As an airline we endeavour to extend manaaki to the communities personal create career pathways for Māori and Pasifika students) had eight we fly to and support New Zealanders through a number of protective interns, four of whom have stayed employed with Air New Zealand initiatives. Unfortunately many of our programmes were impacted equipment following their internships. by Covid-19, but some of the successes were: As the Covid-19 pandemic grew in impact and reach, we worked Embedding • Our Carepoints™ programme with the business sector and launched in May enabling the Government under tight sustainability Airpoints™ members to donate timeframes to arrange 80 Airpoints Dollars™ to three dedicated cargo flights from charity partners – KidsCan, Shanghai to Auckland. Many of Pre-Covid-19, a key strategic focus Women’s Refuge and New Zealand these flights contained PPE for was on embedding sustainability Red Cross. Nearly 250,000 health workers and other essential and enabling more than 100 Airpoints Dollars were donated services. In total millions of items of 1 Based on those Air New Zealanders that have elected to fill out their descent details. < B AC K T O C O N T E N T S
11 — S E C T I O N 0 1 — C A R I N G FO R O U R P E O P L E & C O M M U N I T I E S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — Key metrics WO M E N I N LE AD E R S H I P/ MĀO R I & PA S I FI K A LE AD E R S MANAG E M E NT 13 2018 % 15% 2019 17 % 2020 2020 36% E M PLOY E E N E T WO R K S I N O PE R ATI O N WOMEN IN SENIOR LE ADERSHIP 1. Pride 4. Women’s 7. Young 9. WINGs (Women 10. Women in Professionals Inspiring the Engineering, 2. Manu 5. Kiwi Asia Next Generation) Maintenance 51% 8. Women in Digital – Pilots & Supply Chain 3. Enable 6. Ex-Services 2020 E M PLOY E E A S S I S TAN C E PRO G R AM M E (E AP) U TI LI SATI O N R ATE 1 WE LLB E I N G H U B VI S IT S 9.8 2019 % 10.5 2020 % 1,165 average unique users each month TOTAL R EC O R DAB LE R ATE S ( TR R ) O F I NJ U R I E S 2 5.1/million hours 2020 (down from 10.3 in 2019) 1 EAP Association Guidelines indicate that a utilisation rate (the percentage of new and re-opened cases, based on FTE) over 6% is an indication EAP is being used as a proactive wellbeing tool. 2 Based on injuries (medical treatment and lost time incidents) x 1,000,000 / actual hours worked. < B AC K T O C O N T E N T S
12 — S E C T I O N 0 2 — TAC K L I N G C L I M AT E C H A N G E & C A R B O N E M I S S I O N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 – Tackling climate change & carbon emissions Despite Covid-19 clipping the wings of the global aviation industry in the past eight months, the importance and urgency of climate action remains as pressing as ever. While the Covid-19 pandemic essentially grounded a significant proportion of the global aviation industry in 2020, the climate has continued to warm. World over, devastating climate-related weather events have gained momentum and intensity. From wildfires in Australia, the United States and the Arctic, to flooding in New Zealand, the climate crisis has not stopped for the pandemic. < B AC K T O C O N T E N T S
13 — S E C T I O N 0 2 — TAC K L I N G C L I M AT E C H A N G E & C A R B O N E M I S S I O N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 At the same time, the pandemic movement of pandemic response Carbon Offset and Reduction VO LU NTARY O FFS E T TI N G U P TAK E R ATE S I N F Y20 1 has exposed the criticality of air equipment, PPE, and facilitating Scheme for International Aviation 7.0% 14.0% transport to New Zealand’s trade, repatriation of people. However, (CORSIA) requiring carbon neutral export, investment and tourism continued fleet substitution growth from 2020 and annual industries. The importance and challenges caused by the Rolls- measurement and reporting. pitfalls of global connectivity Royce Trent engine issues coupled Read more about our climate- have never been more stark and with the unique challenges related governance, strategy, the enormous economic benefit posed by the Covid-19 operating risk management, metrics and New Zealand (up from 4.6% in FY19) UK (up from 9.8% in FY19) created by air travel has never environment, ultimately eroded targets in our 2020 Taskforce 10.3% 9.0 % been more apparent. It is clear some of the hard won efficiency for Climate Related Financial that aviation remains vital to our gains in the first part of the year, as Disclosures (TCFD) contained in future prosperity, but the industry the operation responded to a new our 2020 Annual Financial Results must evolve and operate in a more network, new destinations, new available here. sustainable manner. social distancing guidelines, fewer Covid-19 has not dampened our US (up from 7.3% in FY19) Canada (up from 6.0% in FY19) passengers and more cargo. Through our dedicated Carbon customers’ awareness of the 6.3% 4.8% Reduction Programme, we have Air New Zealand continues to be effects of climate change or continued to focus on making a participant in the New Zealand their commitment to travel in a the operation as fuel efficient as Emissions Trading Scheme and has more sustainable manner. More possible, both in the air and on the an obligation to report greenhouse customers than ever before chose ground. This focus has helped us gas emissions generated from to voluntarily offset their flight- improve fuel efficiency by more fuel use on all domestic flights and related carbon emissions in the Australia (up from 4.3% in FY19) Singapore (since launch 4 Oct 2019) 6.9 7.1 than 18.3 percent since 2009. then purchase and surrender to the year, either by “ticking the box” The Covid-19 pandemic and New Zealand’s elimination strategy and border closure, required the Government an equal number of New Zealand Units to match those emissions. In the 2019 calendar when booking, or by offsetting through our FlyNeutral programme for corporate and government % % airline to pivot and support the year, our Emissions Trading customers. Air New Zealand also recovery of the economy via its Scheme obligation was 628,408 continued to voluntarily offset all Japan (since launch 3 Mar 2020) Uptake rate across cargo operation. During the year, tonnes CO2-e. For emissions the carbon emissions attributable the airline operated hundreds generated in international to employees flying for work all activated storefronts (up from 4.6% in FY19) of charter flights, enabling the airspace, we participate in the around our network. C O R P O R ATE AN D G OVE R N M E NT C U S TO M E R RO LL O F H O N O U R Corporate and Governmental Massey University / Spark / Ministry of Social Development / Accident Compensation Corporation / organisations demonstrating Ryman Healthcare / AsureQuality / Health Quality and Safety Commission / PĀMU Farms of New Zealand / leadership by offsetting flight-related travel emissions Stuff / New Zealand Oil & Gas / Milford Asset Management / Information Leadership / Arvida / Bell Gully / in FY20 through FlyNeutral2 Hawkes Bay Regional Council / BLAKE / Co-op Bank / Office of the Clerk / Deloitte New Zealand 1 Number of bookings partially or fully offset as a percentage of all bookings through the relevant online storefront; New Zealand, United Kingdom, United States, Canada and Australia data for all FY20, other markets since functionality was available within the year. 2 Customers are listed in order of tonnes of CO2-e offset through the programme in FY20. < B AC K T O C O N T E N T S
14 — S E C T I O N 0 2 — TAC K L I N G C L I M AT E C H A N G E & C A R B O N E M I S S I O N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 G R E E N H O U S E G A S I NVE NTO RY Within FlyNeutral, half of the carbon emitted was offset with emission Australia and China. Air New Zealand keeps none of the funds Internal Total GHG emissions Tonnes Tonnes Tonnes reduction units generated from permanent native forestry projects collected via FlyNeutral. Despite the devastating impact of governance operational sources CO2-e 2018 CO2-e 2019 CO2-e 2020 in New Zealand, including from the emissions the pandemic, customers chose The Board of Directors is ultimately NZ Native Forest Restoration Trust, scope to voluntarily offset more carbon responsible for our response Wellington City Council’s Outer emissions than ever before through to the risks and opportunities Scope 1 Aviation Fuel, 3,730,246 3,925,650 3,176,634 Green Belt, the Coatbridge Native FlyNeutral in the year – along with presented by climate-related LPG, Natural Forest Project (Marlborough), the airline’s own voluntary offsetting issues. Board oversight is through Gas, Ground the Tempello Biodiversity Project commitments, customers elected the Audit and Risk Committee, Diesel, Ground (Marlborough), Hinewai Reserve Bio Diesel, to offset over 92,0002 tonnes of which oversees key risks including (Banks Peninsula) and Owenga Ground Petrol CO2-e up from over 63,000 tonnes climate change. This committee Reserve (Chatham Islands). The in the previous year. meets quarterly and updates the Scope 2 Electricity 3,044 3,098 2,832 airline and its customers supported permanent native afforestation The supply of permanent New Board following each meeting. Totals 3,733,290 3,928,748 3,179,466 Management has day-to-day throughout New Zealand by Zealand native forestry offsets contributing around $1.47 million is a clear challenge for New responsibility for identifying and Biomass Wood pellets 638 725 1,050 to these New Zealand projects in Zealand (and for the future of managing climate-related risks (CO2) and opportunities. Climate-related the past year. The other half of the Air New Zealand’s FlyNeutral carbon emitted was offset with programme) and we have workstreams are the responsibility In 2019, New Zealand Ministry for the Environment released a new set of greenhouse gas emissions factors for organisational reporting, including for the first time an emissions factor for aviation fuel. emission reduction units generated encouraged and supported the of the full Executive team, the Air New Zealand has adopted this figure to stay consistent with national greenhouse gas inventory from biodiversity and sustainable biodiversity workstream of the Executive Climate Committee and guidance, a process which has included updating our baseline inventory and inventories for financial years 2016 to 2019. A correction was made to the use of this factor for the 2020 financial year, which has energy projects in New Caledonia, Aotearoa Circle to produce its the Sustainability team. For more been implemented for all previous years. report Native Forests: Resetting information please refer to our the Balance. The report explores TCFD disclosures contained in the opportunities and benefits our 2020 Annual Financial Results FU E L E FFI C I E N CY: C O 2 - e PE R R E VE N U E TO N N E K I LO M E TR E 1 that indigenous forestry presents available here. to New Zealand for carbon sequestration, biodiversity, soil 1.8 % health and other ecosystem Average annual fuel services, as well as potential efficiency improvement solutions to encourage more 0.93 compared to 2009 baseline widespread native afforestation. kg CO2-e/RTK 0.88 0.85 2 Retail customers offset at the time of booking. Where flights have been cancelled due to Covid-19, customers 0.81 0.79 0.78 have been issued credits, including for the value of offsets purchased. This figure includes tonnes of carbon 0.76 0.75 4 purchased by retail customers in the year, the value of which was credited back to the customer due to 0.74 0.73 0.73 3 Covid-19 related cancellations. 0.72 3 In 2019, up to four of our most fuel-efficient aircraft, the Boeing 787-9 Dreamliner, were unavailable for use due to the global Rolls-Royce Trent 1000 engine issues. Air New Zealand leased two Boeing 777-200 and one 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Boeing 777-300 aircraft which, depending on flight route and duration, typically used 20 to 26 percent more fuel than the Dreamliner, resulting in the decline in fuel efficiency this year. 1 Revenue Tonne Kilometre (RTK) is a measure of the weight that has been paid for on the aircraft (freight and passengers) multiplied by the number of 4 In 2020, two of our most fuel-efficient aircraft, the Boeing 787-9 Dreamliner, were unavailable for use due to kilometres transported. Freight values are from Air New Zealand records, and passenger weights are estimated at 100kg per passenger (including checked the global Rolls Royce Trent 1000 engine issues resulting in less fuel-efficient Boeing 777-200 and Boeing and carry-on baggage) as recommended by IATA for generating a fuel efficient target. CO2-e emissions are from Air New Zealand’s use of aviation fuel over 777-300 aircraft being substituted on routes. Additionally, the impact of Covid-19 on payloads, mandated the same time periods. social distancing requirements and network changes negatively impacted fuel efficiency. < B AC K T O C O N T E N T S
15 — S E C T I O N 0 2 — TAC K L I N G C L I M AT E C H A N G E & C A R B O N E M I S S I O N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — Key metrics TOTAL TO N N E S C O 2 - e SAVE D TH RO U G H CAR B O N R E D U C TI O N PRO G R AM M E 11,468 15,084 2018 2019 10,557 2020 FLE E T AG E I N Y E AR S (S E AT-WE I G HTE D) 7.4 7.5 7.1 1 2017 2019 7.0 7.1 2016 2018 2020 1 Excludes the Boeing 777-200 fleet, which has been grounded for an indefinite period. < B AC K T O C O N T E N T S
16 — S E C T I O N 0 3 — C H A M P I O N I N G S U S TA I N A B L E T O U R I S M & R E G I O N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 – Championing sustainable tourism & regions The environment and New Zealand’s unique culture are at the heart of New Zealand’s tourism proposition and protecting it therefore remains critical. Our strong tourism partnerships have been vitally has been foreshadowed through the New Zealand important as tourism industry players pull together Tourism Taskforce’s mandate and ongoing work. to face into the challenges of Covid-19. Pre-Covid-19, From March 2020 we saw international visitor numbers great inroads were being made in raising the value drop sharply due to global border closures. As a result, that international visitors provide to New Zealand. stimulating domestic tourism and maintaining cargo This strategy remains important once international trade links throughout Covid-19 have been major focus border restrictions ease. Going forward, the recovery areas. A key part of this work has been the resumption of the tourism industry from the substantial impact of flights to all 20 of the domestic destinations that we of Covid-19 must be one of collaboration and with were flying to pre-Covid-19. sustainability’s relevance more front of mind, as < B AC K T O C O N T E N T S
17 — S E C T I O N 0 3 — C H A M P I O N I N G S U S TA I N A B L E T O U R I S M & R E G I O N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 The Continued to travel New Zealand safely and responsibly. As part of this work, a Developing importance partnering summer campaign was launched in November 2019 with Kiwi kids the next of value with Tourism asking New Zealanders and international visitors to care for generation over volume New Zealand New Zealand and act as kaitiaki for now and for future generations. of tourism Growing the value of tourism faster With international borders severely As at March 2020, 84 percent of New Zealanders indicated that the leaders than volumes of travellers has restricted by the pandemic, our Tiaki Promise is important to help been a goal of the New Zealand partnership with Tourism New inform people how to travel New Recognising the key role that tourism industry and great Zealand shifted focus to promote Zealand responsibly2. sustainable tourism plays in progress was being made towards domestic tourism. The “Do enabling prosperity within New this in 2019. Annual expenditure by international visitors increased Something New, New Zealand!” campaign launched in May 2020, Championing Zealand’s regions coupled with the need to provide higher 5.2 percent to $17.2 billion, while international visitor arrivals which we supported by promoting the campaign in Kia Ora magazine, sustainable value and skilled employment opportunities in the tourism increased by 1.3 percent, in the year ended March 20191. consumer communications and retail marketing campaigns. activities sector, in mid-2019 we established a strategic partnership with The campaign encourages New Queenstown Resort College’s Pre-Covid-19, tourism export Zealanders to get out and see their In March 2020 we launched a new (QRC) Tai Tokerau Paihia campus. earnings were also boosted by the own backyard, with a particular Sustainable Activities Website, The goal of the partnership is expansion of our international route emphasis on travelling outside of profiling local sustainable tourism to build New Zealand’s tourism network, connecting consumers in the peak holiday periods. operators committed to making talent pipeline and enable youth North America, Asia and Australia New Zealand a world-class employment pathways, while directly with New Zealand. We also continued sustainable visitor destination. developing regional capability for Targeting high-value visitors in large our collaboration Over 245 sustainable activities the tourism sector. In addition to global markets requires significant with the Department and attractions, endorsed by providing travel support to staff marketing investment, which we of Conservation, Qualmark, can be explored, and and students, 45 QRC students undertook more effectively by Local Government booked on the website. have had the opportunity to visit working in partnership with Tourism New Zealand, New New Zealand and other airline and Zealand Maori Air New Zealand’s Auckland tourism industry partners. Tourism, Tourism operations to bring classroom Holdings Limited, Tourism learning to life and hear stories Industry Aotearoa and Tourism about potential career pathways. New Zealand to promote the To get a sense for study and life Tiaki Promise to domestic and at QRC, 20 Tairāwhiti/Gisborne international visitors. Tiaki means airnewzealand.co.nz/sustainable-activities/ students were flown to Tai to care and protect and the Tiaki Find and book quality, sustainable activities Tokerau to attend Experience Promise guides visitors on how and attractions, endorsed by Qualmark QRC – a school holiday initiative 1 Source: Tourism Satellite Account 2019, Statistics New Zealand. 2 Source: Mood of the Nation, March 2020, Tourism Industry Aotearoa and Tourism New Zealand. < B AC K T O C O N T E N T S
18 — S E C T I O N 0 3 — C H A M P I O N I N G S U S TA I N A B L E T O U R I S M & R E G I O N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 Maintaining The future key cargo links of tourism In 2020 and in response to the The New Zealand tourism industry Covid-19 pandemic impacting is demonstrating huge resilience in global supply chains and transport managing the impacts of Covid-19 networks, our cargo operation and no international visitors, while at repositioned to a cargo charter the same time focusing on building a business to enable high-value more sustainable tourism system for export products from regional the future. The impact of Covid-19 producers to continue to reach has only heightened the complex key global markets in the absence issues that long distance travel of passenger flying. In May, an creates for the industry, especially International Airfreight Capacity in terms of the related carbon Scheme commenced with the emissions. These complexities will Ministry of Transport to add need to be untangled and addressed for New Zealand to continue with a capacity and maintain key trade strong and authentic sustainable links. The agreement currently tourism proposition. It has also enables more than fifty Air New highlighted the importance of Zealand cargo flights per week domestic tourism as more New to carry Kiwi products (such as Zealanders are experiencing their lobster, salmon, flowers, and own country. New Zealanders meat) to strategic trading ports travelling domestically helps many in China, the United States of tourism businesses, saves jobs and America, Australia and the Pacific boosts regional economies. Our Islands. To date we have seen 500 work with Tourism New Zealand for students in their final year of In November 2019 we partnered stories. After the camp, the flights and 20,000 tonnes of cargo and regional partners to promote school. The experience enabled with the National Geographic students presented their photos moved under the scheme, which domestic tourism has also helped to the group to better understand Society to run photo camps in and essays to their families, has allowed exporters to keep their maintain regional air connectivity, what residential tertiary study New Zealand communities to peers, and local communities. position in valuable markets. with our domestic network ramping entails. Of the 20 students who give underserved youth a voice We intend to conduct further attended, nine enrolled in a QRC through photography. National photo camps in conjunction with back up to around 85 percent of programme (seven of these Geographic photographers National Geographic once border pre-Covid-19 demand. in Gisborne). In 2020, the first travelled from across the world to restrictions ease. The strong partnerships we have QRC student also completed provide guidance and expertise developed have been vital in their internship at Air New on photographic storytelling. allowing us to continue to support Zealand, assuming a variety The first camp, in Murupara, Bay and work towards a sustainable of responsibilities, including a of Plenty, involved twenty young tourism offering and successful placement in our Brand team, the locals spending five days exploring regions. Shared goals create a Academy of Learning and as an what it means to be a young Māori shared momentum that will keep airport-based Holiday Host. in Aotearoa, and learning how us all moving forward through to use a camera to tell personal challenging times. < B AC K T O C O N T E N T S
19 — S E C T I O N 0 3 — C H A M P I O N I N G S U S TA I N A B L E T O U R I S M & R E G I O N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — Key metrics Enhancing S U PP O R TI N G O U R G R E AT WALK S FU R RY AN D FE ATH E R E D FR I E N D S TR AN S P O R TE D FO R D O C conservation outcomes Air New Zealand and DOC are working together to bring birdsong back to our Great Walks, currently covering six key projects. 498 threatened species and 42 conservation dogs relocated including: with DOC 1 274 4 Our longstanding partnership with Abel Tasman the Department of Conservation National Park (DOC) has enabled more than 3,330 hectares of 43,000 hectares of sustained pest sustained predator Pāteke / Brown Teal Native Falcon control on six of New Zealand’s control covered iconic Great Walks, including 2 400 predator control traps being Heaphy Track 23 27 installed on the Paparoa Track on 6,421 hectares of the West Coast, which opened in sustained predator 6 November 2019. In the past year, an control covered additional 498 threatened species 3 Takahē Kiwi were translocated by the airline and Milford Track 42 conservation dogs flown. A new 9,344 hectares of 2 1 safety video, A Journey to Safety, sustained predator 26 42 was released with an associated control covered campaign to highlight New 4 Zealand’s biodiversity crisis and the need to protect native birds. The video received more than 27.5 Kākāpō Conservation dogs 4 million views globally (the highest Paparoa Track for an Air New Zealand video). 5 12,088 hectares of 3 sustained predator control covered O U R LO N G S TAN D I N G 5 Routeburn Track R E L ATI O N S H I P WITH D O C 8,300 hectares of sustained predator control covered We have played a key role in establishing increased sustained pest control to: 6 43,247 Whanganui Journey 64 hectares of predator control and 3,700 hectares of environmental hectares on six Great Walks (including the Paparoa Track maintenance covered which opened in November 2019) < B AC K T O C O N T E N T S
20 — S E C T I O N 0 4 — S T R E N GT H E N I N G S U S TA I N A B L E S U P P LY C H A I N S & R E D U C I N G WA S T E A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 – Strengthening sustainable supply chains & reducing waste In response to Covid-19, our supply chain had to adjust quickly to the changing demands of the business. Despite this, our suppliers continue to maintain achieving refreshed waste targets, Project Green sustainable business practices previously agreed has continued to deliver waste reduction and to ensure they remain compliant. As our supplier supply chain efficiencies. Reducing single-use base begins to recover, this will allow for future plastics and working with our partners to opportunities to be identified and the furthering of expand available recycling and composting our sustainability programme in this space. While infrastructure remain priorities. Covid-19 has provided obstacles to setting and < B AC K T O C O N T E N T S
21 — S E C T I O N 0 4 — S T R E N GT H E N I N G S U S TA I N A B L E S U P P LY C H A I N S & R E D U C I N G WA S T E A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 Working with have within various products. This is also hindered by regulation not Reducing and Los Angeles and will return to Christchurch, Wellington, and reduce waste to landfill, including current initiatives, such as Project our suppliers requiring more specific labelling. This has made the process of inflight waste Queenstown once these ports resume international flights. While Green, scoping the transition of further single-use plastic items to create a identifying palm oil within our supply chain a labour-intensive through we planned to roll out Project Green in San Francisco, Chicago, on our flights to more sustainable alternatives, supporting the sustainable process. Despite these challenges, one of our caterers, Compass NZ, Project Green and Houston in 2020, this has not been possible due to the impact expansion of recycling and composting infrastructure, and supply chain was successfully certified as using 100 percent sustainable palm oil in Project Green continued to deliver of Covid-19 on our international network. We look forward to embedding a waste minimisation culture throughout Air New the past year. To provide ongoing waste reduction results in 2020. expanding the project to other Zealand. These initiatives, along Covid-19 has had an unparalleled governance in relation to palm oil, By reinjecting a range of sealed ports when able. with the new targets will further impact on Air New Zealand and Air New Zealand’s Palm Oil Position and completely untouched inflight assist us in our drive towards our diverse range of suppliers. product back onto flights, in FY20 Resetting Statement was refreshed in instilling a circular economy The repercussions of border December 2019 to include updated alone, Project Green has saved approach within our supply chain. restrictions and lockdowns on our waste targets Roundtable on Sustainable 11,378,925 units at a weight of 142.7 operations have had vast flow- Palm Oil (RSPO) principles for tonnes of product from going to on effects for our highly valued certification and provide more landfill and recycled 263 tonnes suppliers. Despite this, suppliers robust monitoring and measuring. of glass. Since Project Green’s To develop robust and ambitious representing 94.2 percent of Air To acknowledge the critical role inception, Air New Zealand has waste targets, consistent waste New Zealand’s spend1 have now our suppliers play in palm oil reinjected 435 tonnes of product data is required. Unfortunately, due provided positive assurance of our identification processes, we now back onto flights and recycled to our rapidly changing operations Supplier Code of Conduct. This is insert contractual obligations 593 tonnes of glass. Combined, and the corresponding fluctuations an increase on the previous year in all catering agreements to this equates to over 25 A320 in waste output, the increased use (93.2 percent positive assurance) ensure palm oil compliance is aircraft and over 33,701,279 total of non-recyclable PPE, and the loss but falls short of our original 100 maintained in accordance with the units recovered. Project Green of in-house contractor resource percent target by 2020. Gaining requirements set by the airline. remains operational in Auckland from our waste management positive assurance from each of our supplier to work with us on suppliers is an intricate process. As minimising waste, such waste data such, we have focused resourcing was not sufficiently representative. on strategic and managed suppliers As such, while we were intending (contracted spend over $150,000). to have refreshed waste targets We are currently scoping different in place, these are still under digital tools to provide a more development. This will allow time seamless and comprehensive to obtain more representative assurance process that will support waste data and allow us to carry Air New Zealand in reaching the out waste audits to ascertain key 100 percent target. waste reduction opportunities. Palm oil identification in the supply Despite the new targets still being chain continues to be a challenge set, this has not fundamentally due to the many guises palm oil can changed our continued efforts to 1 This excludes fuel and labour and is based on contestable spend (over $150,000) < B AC K T O C O N T E N T S
2222 — — S E C T I O N 0 4 — S T R E N GT H E N I N G S U S TA I N A B L E S U P P LY C H A I N S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 & R E D U C I N G WA S T E Supporting Investing in local sustainable communities property Due to our substantially reduced In 2020, our new distribution centre schedule, this year a range at Auckland Airport was awarded of inflight dry goods in our a 5-Star Green Star NZ – Industrial warehouses were surplus to Design certified design rating. The requirements. After working with Green Star rating demonstrates suppliers to return as much product New Zealand excellence and as possible, hundreds of thousands leadership in green building. of products remained that had To achieve the rating a range of limited shelf-life. This provided factors are considered including a unique opportunity to donate energy, water, materials, Indoor food products and materials to Environment Quality, transport, local New Zealand communities at land use and ecology, management, a time when it was most needed emissions, and innovation. and reduced unnecessary waste Particular sustainability highlights going to landfil. of the new warehouse include maximising natural ventilation and lighting, and using harvested rainwater for toilet flushing and water-efficient tapware. Given the long-term nature of built infrastructure, we recognise the importance of investing in new low-impact, sustainable builds to deliver ongoing efficiencies in our supply chain. < B AC K T O C O N T E N T S
23 — S E C T I O N 0 4 — S T R E N GT H E N I N G S U S TA I N A B L E S U P P LY C H A I N S & R E D U C I N G WA S T E A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 — Key metrics D O NATI O N S TO LO CAL C O M M U N IT Y PRO G R AM M E S 8,900+ inflight blankets to a range of charitable organisations, including 150,000+ Cookie Time cookies shared with New Zealand Red Cross, SPCA, VisionWest, Foster Hope, charities, essential worker groups Middlemore Foundation and Kidz First Community Health Service and social enterprises 770,000+ dry goods such as muesli, crackers and sauces redistributed to New Zealand food banks TOTAL WE I G HT O F ITE M S R E I NJ EC TE D O NTO O U R AI RC R AF T A S A R E S U LT O F PROJ EC T G R E E N I N TH E 2020 FI NAN C IAL Y E AR Tonnes PROJ EC T G R E E N Project Green has saved 11,378,925 units at a weight of 142.7 tonnes of product from going to landfill and recycled 263 tonnes of glass < B AC K T O C O N T E N T S
05 24 — S E C T I O N 0 5 — S U S TA I N A B I L I T Y DA S H B OA R D & P E R FO R M A N C E M E T R I C S A I R N E W Z E A L A N D S U S TA I N A B I L I T Y R E P O R T 2 0 2 0 – Sustainability dashboard & performance metrics Air New Zealanders Target Baseline Year 2018 2019 2020 Status Increase representation of Māori and Pasifika in Management 13% (FY18) 13% 15.4% 17% positions thorough the organisation to 20% by 2022 Reported rate of injuries 1 reducing by 15% year-on-year Reported rate of injuries of Reported rate of injuries of 11.2 and Reported rate of injuries of 10.3 and Reported rate of injuries of 5.1 and 103 resulting in a rate of less than 10 by end FY20 (against FY17) 14.8 (FY17) 215 employee injuries (25% decrease 179 employee injuries (38% decrease employee injuries (64% decrease from FY17) from FY17) from FY17) 90% execution of Critical Risk Management (CRM) Plans with 25% of CRM Plans in place All critical risks and controls are registered All critical risks and controls are registered All critical risks and controls were registered controls tested by end FY20 with controls tested (based in the Enterprise Risk Register in the Enterprise Risk Register in the Enterprise Risk Register on Critical Risks Gap Analysis) Risk control improvement plans now being (FY17) implemented Achieve an average Flourishing Scale2 score of 45 or better Establishing baseline 47.0 47.0 N/A3 N/A by end FY20 against FY17 in FY17 75% employee engagement by end FY20 67% (FY14) 71% 71% (FY18)4 N/A5 N/A (The last survey was in 2018) 50% Senior Leadership Team (SLT) female by end FY20 16% (Jan 2013) 39% 44% 51%6 70% of our SLT alumni Executive level or Non-Executive Director 86% 86% 75% N/A7 N/A or SLT roles in organisations with New Zealand Interests Increased proportion of employees who participate in N/A 276 employees participated in community 497 employees participated Many employees participated in community community programmes programmes in community programmes programmes in FY20 including volunteering with the New Zealand Red Cross to pack parcels for hope and the Department of Conservation with a pāteke release in the Arthur Valley. Employees also volunteered with local food banks and charitable organisations during Covid-19 alert levels 3 & 4. Due to Covid-19 and the restrictions on gathering sizes, the majority of our volunteering activity was paused in FY20. 1 Based on TRFIR rate: injuries (medical treatment and lost time incidents) x 1,000,000/actual hours worked. 2 The Flourishing Scale is designed to assess an individual’s psychological resources and strengths and their ability to live life with purpose and happiness. 3 Wellbeing 360 survey not conducted due to Covid-19. 4 Your Voice employee engagement survey conducted on bi-annual basis using Aon Global engagement methodology. 5 Your Voice employee engagement survey cycle paused due to Covid-19. 6 This percentage relates to the newly formed Airline Leadership Team (ALT) which replaced the SLT in the 2020 calendar year. Across all employees, 57.6% identify as a man, 42.4% identify as a woman, and 0.1% identify as gender diverse. 7 Data not able to be obtained due to the impact of Covid-19. < B AC K T O C O N T E N T S
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