Finnair, TUI Travel and Munich Airport score highly in CDP international climate leadership index
Finnair Airbus A320 at Munich Airport
Mon 27 Oct 2014 – Finnair, TUI Travel and Munich Airport are stand-out leaders in this year’s Carbon Disclosure Project (CDP) index of climate disclosure and performance by organisations around the world. CDP, an international NGO, provides a global system for companies and cities to measure, disclose, manage and share environmental information with 767 institutional investors worldwide responsible for assets of $92 trillion. The aim is to motivate companies to disclose their impacts on the environment and natural resources, and take action to reduce them. Finnair and Munich Airport have been A-listed on the CDP Climate Performance Leadership Index (CPLI) 2014 for their actions to reduce carbon emissions and climate protection efforts. TUI Travel – which has six airlines – scored an A- on the CPLI and a ‘perfect 100’ on the Climate Disclosure Leadership Index (CDLI).
Information provided by nearly 2,000 listed companies is analysed each year by CDP and measured against two parallel scoring schemes – performance and disclosure.
The performance score assesses the level of action, as reported by the company, on climate change mitigation, adaptation and transparency. A high performance score signals that a company is measuring, verifying and managing its carbon footprint, for example by setting and meeting carbon reduction targets and implementing programmes to reduce emissions in both its direct operations and supply chain.
The disclosure score assesses the completeness and quality of a company’s response. Its purpose is to provide a summary of the extent to which companies have answered CDP’s questions in a structured format. A high disclosure score shows that a company provided comprehensive information about the measurement and management of its carbon footprint, its climate change strategy and risk management processes and outcomes.
High performance and disclosure scores are used by investors as proxy of good climate change management or performance of companies, who can then identify and engage with the companies. For example, a coalition of UK asset owners and mutual fund managers are asking major UK-listed utilities and companies to aim for inclusion in the CPLI. Investors, says CDP, are also using the scores for the creation of financial products.
This year, for the first time, CDP has published its ‘A List’ of 187 companies around the world for their climate performance. Finnair is the only airline and Munich the only airport to appear on the list.
“Aviation is an extremely energy and capital intensive sector, and our advanced capacity to measure and disclose information relating to this intensity allows us and our shareholders not only to understand Finnair’s climate impact but to take steps to actively mitigate it while also controlling costs,” said Finnair CEO Pekka Vauramo. “This recognition from CDP shows that we are determined to proactively meet a commercial and regulatory landscape that is rapidly being transformed by climate change.”
The airline says it is on track to reduce its per-seat CO2 emissions by 24% between 2009 and 2017. To achieve this, it points to a range of measures it is undertaking on fleet renewal, aircraft ‘weight watching’, biofuel development and operational measures such as Continuous Descent Landings. Last year, Finnair was the global launch customer for the Sharklet-fitted Airbus A321 and next year will be the European launch customer for the Airbus A350 XWB, which is expected to be 25% more fuel efficient than the previous generation.
As well as the top grade A in the performance score, Munich Airport was awarded 98 out of a possible 100 in the disclosure score. “This award shows that we are already among the top performers at the global level in terms of climate protection,” said its CEO, Dr Michael Kerkloh. “Through our clear commitment to sustainable airport operations that conserve resources, we are assuming the responsibility for the future.”
For TUI Travel – which has airlines such as Thomson Airways and TUIfly, and a fleet of 138 aircraft – this is the seventh year in succession it has featured in the CDLI and with its perfect 100 score, beat its previous highest score of 92 in 2013. Earlier this month, TUI Travel climbed two places to fourth position in Carbon Clear’s annual ranking of the FTSE 100 companies and was the only travel company to feature in the top 20.
The group says it has saved £28 million ($45m) in environmental efficiencies since 2012, while reducing its airlines’ absolute carbon emissions by 15% in five years and relative carbon emissions by 9.3% in the same period.
“We are committed to providing a lasting legacy of reducing our carbon emissions and as a business, we wholeheartedly recognise our responsibility and the importance of accurate and transparent carbon reporting to all our stakeholders,” said Johan Lundgren, Deputy Chief Executive of TUI Travel.
Annual global CO2 emissions for 2014 are expected to reach 40 billion tonnes, 65% above 1990 levels. “Global greenhouse emissions continue to rise and we face steep financial risk if we do not mitigate them,” said CDP CEO Paul Simpson. “The need for data on corporate climate change impacts and strategies to reduce them has never been greater. The companies on the CPLI and CDLI are responding to market demand for environmental accountability and should inspire others to follow suit.”