Sustainability Report - Air New Zealand website

 
CONTINUE READING
Sustainability Report - Air New Zealand website
Sustainability
Report
— 2020
Sustainability Report - Air New Zealand website
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
Sustainability Report - Air New Zealand website
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
Sustainability Report - Air New Zealand website
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
Sustainability Report - Air New Zealand website
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
Sustainability Report - Air New Zealand website
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
Sustainability Report - Air New Zealand website
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
Sustainability Report - Air New Zealand website
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
Sustainability Report - Air New Zealand website
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
Sustainability Report - Air New Zealand website
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
You can also read