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Air New Zealand releases 2019 Sustainability Report

ESG25 September 2019AIRIndustrials

Report
2019

Sus

tain

ability

We are all on this journey together
He waka eke noa

We are moving forward together, Air New Zealand whānau, customers, suppliers

and stakeholders. Together we can achieve more for the future of Aotearoa than

if we work alone. In this report we highlight some of the challenges that Air New

Zealand, our nation and the world are facing, and we look at some of the ways we

are coming together with a range of partners to deliver our sustainability agenda.

Engaging Air New ZealandersTackling climate change & carbon0923
01

04

02

03

05

Letter from the CEO

Working together to promote New Zealand to the world

Plastic, not so fantastic

Working with partners to reduce waste

Our approach

A taste of New Zealand

Tourism's role in protecting our environment

Recognising our suppliersRe-evaluating our waste targets

Showcasing the best of regional New Zealand

Supporting tourism and development in the regions

Letter from the Sustainability Advisory Panel ChairEmbracing diversityReducing our carbon footprint

Gender balanceMeeting regulatory obligations

International Women in Engineering DaySupporting the Zero Carbon Bill

Developing Māori and Pasifika leadersFlyNeutral

Building a strong learning culture

Protecting our people's wellbeing

Community engagement

Our business

Our customers

Sustainability at Air New Zealand

Our material issues

Intro

01

35

51

53

45

47

41

4652

38

39

031225

1329

1430

1531

17

19

21

05

06

07

08

Supporting New Zealand

through sustainable tourism

Working with our suppliersReducing waste & plastic

Dashboards

334349

55

2
1

| Sustainability Report 2019


He waka eke noa |

| Introduction

We stand at a pivotal moment

in time with a groundswell

of sustainability awareness

demanding that business,

governments and

communities together do

more to play their part in

responding to the climate

crisis and other critical

sustainability challenges.

The immense challenges we face underscore

the relevance of Air New Zealand’s company

purpose, to supercharge New Zealand’s

success — socially, environmentally and

economically. This purpose reflects the

critical and multifaceted roles we play —

connecting people and products across

New Zealand and the world, supporting

people and communities as one of

New Zealand’s largest employers, and

leading a conversation on the future of

sustainable tourism, New Zealand’s

largest contributor to GDP. Our company

purpose also reflects the airline’s role in

helping to protect the natural environment

for Kiwis and visitors alike, and the

desire that our workplaces offer equal

opportunities irrespective of gender, race,

sexual orientation or physical ability.

This year the Air New Zealand Executive

identified ‘Sustainability in the Bloodstream’

as a long-term organisation-wide strategic

pillar. This commitment will accelerate

progress towards our sustainability goals

with an additional focus on enhancing

awareness and capability of all senior

leaders to deliver our ambitious agenda.

In 2019 the climate crisis has taken centre

stage. We have seen unprecedented

engagement of community and youth

leaders shining a light on the challenges

that climate change poses and the need

for urgent action. Countries are crystallising

targets and enshrining mechanisms in

legislation to deliver to the 2050 Paris

targets. The New Zealand Government is

seeking to pass the Zero Carbon Bill to

establish long-term emissions budgets.

As a founding member of the New Zealand

Climate Leaders Coalition, Air New Zealand

has supported the net-zero ambition and

seeks enhanced policy certainty and the

design of new mechanisms to support

low-carbon technology, particularly for

hard-to-abate sectors like aviation.

Globally, consumer awareness of the

negative carbon impacts of flying is rising.

Responding to the climate crisis remains Air

New Zealand’s single biggest sustainability

challenge. The most impactful lever we

have currently is to fly modern, more fuel-

efficient aircraft, which we continue to

invest in, and to ensure our operations both

in the air and on the ground are as efficient

as possible. We also know that new fuels

and electric aircraft technology must form

part of the longer-term solution for reducing

emissions. In the past year we are proud that

our voluntary customer carbon offset

programme passed a milestone of $1 million

going towards the purchase of carbon

offsets from permanent New Zealand forests.

This past year has also seen continued low

levels of trust globally in governments,

NGOs and media. In the trust stakes, “my

employer” is the most trusted relationship

by a significant margin. With such trust

comes responsibility — the expectation

upon businesses that they stand up like

never before to be a trustworthy source of

information, to take a stand on contentious

societal issues and help deliver a fairer, safer

and more resilient society. People are at the

heart of Air New Zealand so I’m really proud

that we have led national conversations

around important social issues such as

diversity and inclusion, automation and

the future of work. Within Air New Zealand,

the proportion of women in our Senior

Leadership Team roles has jumped from

16 percent in 2013 to 44 percent this year,

we have advanced a leading parental leave

policy and we continue to embrace te reo

Māori. Our progress has been recognised

externally, securing the inaugural Diversity

& Inclusion Award from the International

Air Transport Association and winning New

Zealand’s Most Attractive Employer award

for the sixth time. These awards are great

recognition, but the bigger prize is the

difference I see in employee satisfaction

and improved business performance.

Our unique position as the national carrier

of Aotearoa extends to the positive impact

we have on New Zealand economically —

bringing overseas visitors to our shores,

transporting high-value cargo exports,

stimulating regional economies and

supporting local businesses across our

supply chain. At our inaugural Tūhono

Supplier Awards, we celebrated the

contribution of many of our suppliers to

our own business success. In the regional

impact and tourism space, we recently

announced a four-year strategic partnership

with Queenstown Resort College’s Tai

Tokerau campus. This partnership aims

This year the Air New Zealand Executive identified

'Sustainability in the Bloodstream' as a long-term

organisation-wide strategic pillar.

A LETTER FROM

The Chief

Executive Officer

to stimulate economic and social impact

in the regions by promoting tourism career

pathways for young people who would not

otherwise access tertiary training.

I’m incredibly proud of what we’ve

collectively achieved at Air New Zealand

in the past seven years during my tenure

as CEO, and our sustainability journey

has been absolutely one of the highlights.

My appreciation again goes to the Air

New Zealand Board and members of

Sustainability Advisory Panel for their

continued guidance and the challenges

they have set, and to our partners who are

working alongside us to deliver results.

When Air New Zealand first launched

our sustainability agenda, not many New

Zealand companies, and certainly not

many airlines, were so “all in”. I’m

therefore grateful for the support and

trust the Air New Zealand Executive and

Board had to launch and take this critical

strategy forward.

To make lasting and significant progress

to address the biggest of the world’s

challenges — and there are many —

business must continue to step up and

mobilise their people, knowledge and

capital. Ultimately, we will get the future

we design and are prepared to invest in

together — and our people, communities,

long-term resilience as a business,

and health of our planet depend on our

collective and continued bold leadership.

Nāku noa, nā

Ngā mihi,

Christopher Luxon

Chief Executive Officer,

Air New Zealand

4
3

| Sustainability Report 2019


He waka eke noa |

| Introduction

success by addressing whatever key

challenges that company may be facing —

in Air New Zealand’s case, Climate Change,

Tourism (Sections Two and Three), and

getting on top of its waste management

issues, with a particular focus these days

on plastic waste (Section Five) — where

Air New Zealand has a good story to tell

(see page 49).

Get all that right, and suppliers (Section Four)

will be proud to help that company achieve

its goals. At which point, investors will be

assured of good returns, in both the short

and the long term, as a direct consequence

of getting the basics right everywhere else

in the company.

With an airline, inevitably, investors will be

particularly keen to know that its Board

of Directors is managing climate risk as

purposefully as is now required at a time

of climate emergency. My colleague Tim

Jackson spells that out very clearly on

page 32. In that regard, the decision by

Air New Zealand’s Board to sign up to

the requirements of the Task Force on

Climate-related Financial Disclosures is

particularly encouraging (see page 23).

This last year has been dreadful, with

one extreme weather event after another

Sustainability

Advisory

Panel Chair

A LETTER FROM THE

PHOTO: Photograph by Charles Glover

Although there are lots of

companies today that talk

a lot about corporate

sustainability (or Corporate

Social Responsibility), very

few of them really get it.

Worse yet, a lot of them are

still just ‘adding it on’ to the

‘shareholder-first imperative’.

Paradoxically, there’s a strong case to be

made that the best way of putting

shareholders first is to put shareholders last!

And the structure of this report perfectly

exemplifies that heretical idea. Corporate

sustainability for Air New Zealand starts

with Air New Zealanders (Section One) — the

heart and soul of the company. As it is for

every company. Screw this up, or even play it

down, and that’s pretty much game over for

any company seeking genuine sustainability.

Get it right, and that goes a long, long way

in terms of securing customer loyalty and

attracting new customers.

That kind of loyalty depends completely

on trust, and that kind of trust depends in

part on having the right strategic partners,

prepared to co-create future commercial

At long last, there is now a much greater recognition

of both the scale and the urgency of the climate crisis.

somewhere in the world. In fact, the UN

tells us that we’re now witnessing one such

calamity every week, and that this will get

much worse with sea levels starting to

rise much faster, and a deeply disturbing

projection of a one metre average sea-level

rise by the end of the century.

For many people in the Pacific, that’s the

equivalent of their countries being put on

death row. Kiribati (home to 100,000 people

on 33 islands) has for a long time been the

poster child for all small island states in this

region, given that most of Kiribati is only

just above sea level and is already

disappearing. Back in 2014, former President

Anote Tong had the foresight to purchase

6,000 hectares on Vanua Levu, Fiji’s second

largest island — but it’s still hard for people

to understand the psychological trauma

of leaving behind one’s homeland, culture,

history and very identity as a people.

New Zealand’s leadership on climate

change (as well as that of Fiji itself) is going

to be crucial over the next few years. The

phrase ‘he waka eke noa’ takes on an extra

resonance in that regard (‘we’re all in the

same boat’ seems insipid by comparison!),

reminding us not just that we have to plan

and implement a very rapid transition to a

low-carbon world, but that we have to do

it in a fair, just and accountable way. Air New

Zealand has an important part to play in

that regard, empowering its own Māori and

Pasifika employees, and thinking even more

dynamically about its role in South Auckland

— as a critically important element in a

broader community engagement strategy

which has moved forward in leaps and

bounds over the last 18 months.

The world already looks to New Zealand (and

to its national carrier) for leadership in such

troubled times. Lending real substance to the

principle of Tūhono — standing together —

will set the benchmark for others to aspire to.

Sir Jonathon Porritt

Founder Director, Forum for the Future

September 2019

6
5| Sustainability Report 2019


| IntroductionHe waka eke noa |

2.84M3.08M2.38M

Employees at end of June 2019

12,553

1 2019 ATW Airline Awards 2 Colmar Brunton Corporate Reputation Index 2019 (New Zealand); Reputation Institute’s 2019 Corporate Reputation Index (Australia) 3 Total Ordinary dividend

declared $247 million 4 Includes Seoul which commences late November 2019

1 Facebook (global networks) — have ‘liked’ Air New Zealand; Instagram (global networks) — have followed Air New Zealand; YouTube (global networks) — have subscribed to Air New Zealand

channel; Twitter (New Zealand network only) — have followed Air New Zealand

Air New Zealand flights

in 2019 financial year

Passengers carried in

2019 financial year

Corporate reputation in

New Zealand and Australia

2

17.7M#11 9 0 K+

Eco-Airline

of the Year

1

Domestic

destinations

International

destinations

4

2032

Dividend paid to the New

Zealand government in 2019 ³

$128M

Annual volume of New Zealand exports

carried on Air New Zealand

38,600

Number of Airpoints™ members,

up 11% from the prior year

Total number of social media fans

1

3.2M

Our business

Our customers

Air New Zealand operates

a global network, with a

Pacific Rim focus, that

provides passenger and

cargo services to, from,

and within New Zealand

to more than 17 million

customers a year.

Our domestic network is unmatched,

offering services to 20 main centres and

regions across New Zealand, while our

alliance relationships with airlines in key

offshore markets complement the

destinations we fly to. With more than 3.2

million members, our Airpoints™ programme

is considered the most valuable loyalty

programme in New Zealand. We have a

proven history of achieving profitability,

delivering positive earnings every year

since 2003 and paying dividends to our

shareholders every year since 2005.

Air New Zealand connects

New Zealanders to each other

and with the world. We take

our responsibilities to our

customers very seriously.

Whether we are helping

friends and family to connect,

bringing tourists to New

Zealand or taking exports to

the world, customers are at

the very core of why we

do what we do.

If we can make their experience safer, better,

with less impact on the environment, and get

them where they need to be, when they need

to be there, we have succeeded.

The number of customers flying on our

network continues to grow. In the last year,

Air New Zealand flew more than 17 million

customers on more than 190,000 flights. Our

international flights carried more than six

million customers to over 30 international

destinations. We also operate one of the most

connected

1

domestic networks in the world

with more than 30,000 customers travelling

on more than 400 flights each day between

20 domestic destinations.

We carried more than 180,000 tonnes of

cargo on our network in the past 12 months,

supporting New Zealand businesses and

facilitating urgent movements of medical and

infrastructure supplies. For a small island

nation in the Pacific, air travel provides a

vital connection to the rest of the world.

There are many economic and social benefits

to travel, connecting people with friends

and family, providing exposure to different

cultures and experiences, and facilitating

tourism and trade.

Consumers in New Zealand and around

the world are increasingly concerned with

how the industry can provide these

benefits at the same time as reducing the

negative environmental impact of aviation.

This is another area where we need to

work together.

The power of consumers to influence

change in the world, particularly around

sustainability issues, has increased

significantly in recent years. Social media

has made it much easier for like-minded

groups to advocate for environmental and

social advances. This makes it even more

important for us to give our customers a

voice and to listen.

Customers can make a difference by

choosing to fly with airlines that are making

significant positive change and they can take

action by offsetting the carbon emissions

from their flights. In the past year more of

our retail customers around the world

chose to offset some or all of their carbon

emissions, offsetting close to 45,000 tonnes

of carbon emissions from more than 183,000

journeys — a 41 percent increase on the

previous year (albeit still a low percentage

of bookings overall). We also introduced

offsetting for our corporate and government

customers, with more than 7,000 tonnes of

carbon emissions offset in the inaugural year

of the programme.

We believe our success

is inextricably linked to

the success of New Zealand

and this is reflected in

our company purpose:

Supercharge New

Zealand’s success


socially, environmentally

and economically.

20172018

tonnes

2019

PHOTO: Photograph by Joao Inacio

8
7

| Sustainability Report 2019


He waka eke noa |

| Introduction

Kaitiakitanga

Our place

Ōhanga Ora

Our economy

Carbon

Nature & Science

Tourism

Trade & Enterprise

Our material

issues for 2019

Sustainability at

Air New Zealand

Our purpose is to supercharge

New Zealand's success —

socially, environmentally

and economically. Our

Sustainability Framework

helps guide our actions and

is aligned with the United

Nations Sustainable

Development Goals (SDGs),

the blueprint to create a

better and more sustainable

future for all.

By continually assessing

which issues are most

material to our operations, the

environment, our customers

and other stakeholders, Air

New Zealand is better able

to mitigate risk and harness

opportunities. Our material

issues inform our strategic

priorities, sustainability

approach and reporting.

In this report we focus

on the following issues:

01

Engaging Air New Zealanders

02 Tackling climate change

& carbon

03 Supporting New Zealand

through sustainable tourism

04 Working with our suppliers

05 Reducing waste & plastic

Our Sustainability Advisory Panel brings

together an internationally renowned group

of experts selected for their skills, expertise

and ability to challenge our sustainability

agenda. Six external members, Dame Anne

Salmond, Sir Rob Fenwick, Dr Susanne

Becken, Dr Suzi Kerr, Professor Tim Jackson

and Chair Sir Jonathon Porritt are joined

by our Chief Executive and Chief Strategy,

Networks and Alliances Officers.

The Panel and other company

representatives meet twice a year to discuss

progress, identify emerging issues and

develop responses. The Panel are also

consulted on issues identified outside of the

regular meetings.

We have identified nine SDGs that we have

the greatest ability to positively impact.

We have a four-member Sustainability

Executive Steering Group comprising our

Executives responsible for Strategy,

Networks and Alliances, Ground Operations,

Marketing and Customer, and Operations

Integrity and Standards. This group steers

our sustainability agenda and drives

change through their respective parts of

the business.

Internally we use an online sustainability

dashboard to regularly monitor and track

performance against targets in each of our

framework areas.

Sustainability

Advisory Panel

Sustainability

Framework

We engage with a wide range of stakeholders

internally and externally to understand

what is important to them.

1

We listen to

feedback from our employees, customers,

investors, suppliers, industry partners and

communities. We receive input and guidance

from throughout the organisation — from

our Board of Directors and Executive to

our passionate employees sharing their

aspirations for change.

Our Sustainability Executive Steering Group

regularly reviews the risks identified in

our Enterprise Risk Process and annual

and long-term planning cycles, while the

Sustainability Advisory Panel provide a vital

external reality check.

1 Read more about how we engage with our stakeholders at airnewzealand.co.nz/stakeholders

Manaakitanga

Our people

Air New Zealanders

Communities

10
9

| Sustainability Report 2019


He waka eke noa |

They trust they are getting on

a well-maintained aircraft with

a crew that will get them safely

to their destination. And when

things go wrong and disruptions

happen, they rely on our

customer care teams truly

caring and helping to get them

moving again.

To deliver on this we need to

attract and retain the best

people and ensure they have the

right leadership, training and

support to perform their roles to

the highest standard. Collectively,

passionate and inspired

Air New Zealanders are our

greatest strength.

As an airline, we

distinguish ourselves

through the personal

connections our

people make with

customers each

day. Our customers

choose to fly with us

because they know

they will be greeted

at the airport and the

aircraft door with a

warm smile and a

welcoming kia ora.

Engaging

Air New

Zealanders

MĀORI & PASIFIKA IN MANAGEMENT

Proportion of Māori & Pasifika

in management positions

throughout the organisation

in 2019 ²

We are consistently ranked

as one of New Zealand’s most

attractive employers, taking the

top spot in the annual Randstad

Employer Brand Research Awards

a record six times. This success

is highlighted when it comes to

recruitment. In 2019 we received

40,470 job applications — more

than three times the number of

our total workforce.

We work hard to ensure the

perception of Air New Zealand

as a great employer meets

the reality of the employee

experience once on board. Your

Voice, our bi-annual employee

engagement survey, helps us

identify what's working well and

what we need to improve. Our

2018 engagement score was

71 percent

1

which places us in

the top quartile of organisations

in Australia and New Zealand.

2018

13

%

2019

15

%

1 Your Voice employee engagement survey conducted bi-annually using Aon global engagement methodology. Engagement score increased

by 2 percentage points from 2016 to 2018 2 Based on available ethnicity data in our internal Human Resources management system

EMPLOYEE ASSISTANCE PROGRAMME (EAP) CASES

9.3% average utilisation rate - 2019

1

855

2017

804

2016

924

2018

1,157

2019

1 EAP Association guidelines indicate that a utilisation rate over 6 percent is an indication EAP is being used as a proactive wellbeing tool

43

%

Female

57

%

Male

SPLIT OF ALL EMPLOYEES

DIVERSITY & INCLUSION

GENDER

RAINBOW

ACCESSIBILITY

External accreditation ticks

received since 1 July 2018

FEMALE SENIOR LEADERSHIP

2019

44

%

2018

39

%

2017

39

%

2016

30

%

EMPLOYEE NETWORKS IN OPERATION

3

7

Māori and Pacific Islands

Manu Network

4

Young Professionals

Network

2

6

Ex-Services

Network

Kiwi Asia

Network

1

5

Enable

Network

Pride

Network

Women’s

Network

12
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| Sustainability Report 2019


| Engaging Air New ZealandersHe waka eke noa |

Reflecting the country’s rich diversity is

what sets us apart as an airline, leading to

a stronger connection with our breadth of

customers and in turn driving better

business results.


We were proud to be awarded the inaugural

Diversity & Inclusion Team Award at the

2019 International Air Transport Association

(IATA) Annual General Meeting. The award

recognised Air New Zealand as leading the

way for diversity and inclusion in the global

aviation industry.

We have seven active employee networks,

each sponsored by a member of the

Executive, which connect, support and give

voice to all employees. These employee

networks are a driving force in creating

an inclusive workplace and have been

instrumental in Air New Zealand receiving

the Gender, Rainbow and Accessibility Tick

accreditations, which provide independent

validation that people of all genders, sexual

identity and abilities respectively are

accepted and valued in our workplace.

In 2018 we introduced an unconscious

knowledge and bias awareness programme

to help employees understand how

personal bias affects decision-making. This

programme has been immensely popular,

and so far 733 employees have completed

the training. By June 2019, 63 percent of our

Senior Leadership Team had completed the

programme, on track to meet our target of

80 percent by 2020.

Embracing

diversity

We have enhanced our people policies to

better reflect an inclusive and fair workplace

and to strengthen our position as an

employer of choice. For example, we have

significantly enhanced our Parental Leave

package, acknowledging the importance of

this stage in our people's lives and providing

greater financial security for new parents.

Related to this, we actively promote flexible

working arrangements where possible, giving

people greater control in how they structure

their work and personal life. Working with

the White Ribbon Trust, we are also taking a

strong stand against domestic abuse with a

new initiative that includes training, internal

and external support options, and up to 15

days' paid leave.

Our vision is to create a diverse workforce, proudly

representative of Aotearoa, a place where Air New Zealanders

can be themselves and thrive. With more than 200 different

ethnicities calling Aotearoa home, New Zealand is a culturally

diverse country and getting more so all the time.

We have seven active

employee networks, each

sponsored by a member

of the Executive, which

connect, support and

give voice to all employees.

01

PHOTO: Air New Zealand employees farewell the

All Blacks with a haka before their flight to Japan

14
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| Sustainability Report 2019


| Engaging Air New ZealandersHe waka eke noa |

01

In the last year our Executive Team has

been strengthened by the addition of two

exceptional leaders: Carrie Hurihanganui,

who re-joined the airline in July 2018 as

Chief Ground Operations Officer, and in

May 2019 Jennifer Sepull took up the role of

Chief Digital Officer. At the end of the 2019

financial year, 43 percent of the Air New

Zealand Board were female.

The proportion of women in our Senior

Leadership Team increased from 39 percent

in 2018 to 44 percent in 2019. This compares

favourably to the 43 percent of women

across our entire employee base. Twenty

women are participating in our internal

Women in Leadership programme in 2019,

designed to accelerate the development

of our top female talent. And we’re seeing

results — since its inception in 2016,

18 participants having been promoted and

13 have moved laterally into new roles.

By November 2019, 69 women will have

completed the programme.

Gender

balance

We see gender diversity at all levels as a business

imperative. It’s good for culture, innovation, customer

connections and the bottom line. Regardless of

whether on the ground or in the air, we’re working

hard to create a culture that empowers, attracts,

recognises, develops and engages women.

Through our ongoing partnership with

Global Women and its Champions for

Change initiative, we have increased external

female development opportunities aimed

at mid-manager level. In the past year, two

of our high-potential leaders have become

members of the International Women’s

Forum Fellows Program, gaining customised

training in partnership with the Harvard

Business School and INSEAD.

Air New Zealand publishes an annual Gender

Equity Pay Gap Report and in 2019 males

were paid 0.46 percent more than females

in roles with similar complexity and

responsibility, compared to 0.41 percent

more in the 2018 financial year. This gap

and the change since last year are driven by

differences in tenure, experience and

performance. We continue to critically

examine our processes and policies to

ensure they promote equitability.

Three employee-led Air New Zealand groups

are making it their business to increase the

number of women participating in STEM

1


careers in aviation. Women Inspiring the Next

Generation of Pilots, Women in Engineering

and Women in Digital are working alongside

schools and community groups to promote

career pathways for women in aviation.

The networks host groups of young women

at Air New Zealand to experience a day in

the life of a pilot, engineer or a member of

our Digital team. They also participate

in programmes such as Shadowtech,

providing leadership shadowing and work

experience for female digital students in

partnership with the Manukau Institute of

Technology, and events such as the Classic

Fighters Airshow in Blenheim and Wings

over Wairarapa in Masterton.

CASE STUDY

International Women

in Engineering Day

PHOTO: Our Engineering team hosted around

40 female high school students to celebrate

International Women in Engineering Day in June

1 STEM is a curriculum based on four disciplines —

Science, Technology, Engineering and Mathematics

16
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| Sustainability Report 2019


| Engaging Air New ZealandersHe waka eke noa |

We are committed to greater

diversity of thought at

leadership level. Māori and

Pasifika employees make

up 18 percent of our

employees and 15 percent

of our leaders.

1

Our target to

increase Māori and Pasifika

talent into leadership roles

to 20 percent by 2022 will be

driven by a series of recently

introduced initiatives.

This year we have partnered with Mike Moka

and his Indigenous Growth organisation

to jointly create and deliver Mango Pare,

a new innovative learning programme

to develop leaders through indigenous

values. The initiative will see our aspiring

Māori and Pasifika leaders gain the skills,

knowledge and belief to take on leadership

opportunities. It also instills in our people a

cultural diversity which flows into their work

practices at Air New Zealand. The first group

of 16 leaders and aspiring leaders started

their Mango Pare journey in July 2019.

Developing Māori

& Pasifika leaders

The Manu Network is led by Māori and

Pasifika employees to showcase and

celebrate Polynesian language and cultures

and provide support for Māori and Pacific

Islanders to learn, be inspired and grow.

For those starting their career, our

partnership with the TupuToa internship

scheme creates a talent pipeline for young

Māori and Pasifika superstars. We’ve

partnered with TupuToa since 2016,

committing to taking on 25 interns by

2020. Already 21 have come through our

doors. We recently committed to another

three years with the programme, with a

stronger focus on converting internships

to permanent roles.

Our next focus on ensuring diversity of

thought at a leadership level is among our

Asian employees, who make up a significant

proportion of our total employment base.

The Mango Pare is the traditional Māori symbol

of strength & courage, tenacity of life, unrelenting

determination, vigour and wealth.

Dame Anne Salmond

Sustainability Advisory Panelist

When I joined Air New Zealand’s

Sustainability Advisory Panel five years

ago and began having conversations

about cultural diversity, I felt there was

genuine commitment to change but also

a long way to walk — or fly — in this case.

What started with the Koru on the tail of

the aircraft and a sense of appreciation for

the beauty of the language has now evolved

into a much deeper and more integrated

approach across all aspects of Tikanga

Māori. The partnership with Ngati Porou is

a great example of this, involving mutual

learning and capacity-building as well as

commercial interests.

On the sustainability front there’s a huge

amount to learn from the Māori philosophy of

Kaitiakitanga and the strong sense of kinship

PANEL VOICE

Sharing Tikanga Māori

We want all Air New Zealanders to be

comfortable and capable of sharing Māori

language and culture with the world, and

to be true ambassadors for Aotearoa. We

share a range of te reo and tikanga

2

Māori

resources across our organisation and have

developed a mobile app so our people and

customers have access to cultural education

and language resources wherever they

go. Customers can also engage with te reo

through our Inflight Entertainment system

and kiosks.

We have partnered with Te Matatini, New

Zealand’s premier kapa haka competition to

jointly develop and showcase the festival to

a wide audience. In June we held Hakamania,

an internal event encouraging Air New

Zealanders to engage with Māori culture and

language. Teams from across the business,

including entries from Australia and London,

competed to perform the best haka.

This year saw another 373 employees

participate in Te Ara Nui, the marae-based

graduation ceremony for new cabin crew

and ground employees of all cultures to

celebrate, with their whānau, the completion

of their training.

and guardianship Māori have for the natural

environment. I think there’s more room for

movement and I see a real appetite for that

in the organisation.

The aspiration to get more Māori and Pasifika

into leadership roles is being supported

by new approaches to leadership training

and talent acquisition. Involvement with Te

Matatini and Hakamania, and the growing

number of internal events being held on

marae help to signal that diversity is truly

welcomed and Air New Zealand employees

can be themselves at work.

I admire the experimental spirit of Air New

Zealand and the innovation that comes

from this and I look forward to seeing the

positive outcomes on their workforce and

wider community.

1 Based on available ethnicity data in our internal Human Resources management system 2 Tikanga: Māori customs and traditional values

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He waka eke noa |

17| Sustainability Report 2019


| Engaging Air New Zealanders

01

Building a strong

learning culture

The coming wave of

automation presents a

skills gap which we need

to urgently close to better

equip our people for the

future of work.

To build tomorrow’s leaders at Air New

Zealand, we have identified core future-

focused capabilities that are being integrated

into our leadership programmes. We are

also transforming from predominantly

class-based or event learning to a more

personalised and flexible learning style

where employees can choose how, where

and when they learn.

We have invested in two key digital learning

platforms to ignite continuous learning as

a key feature of the employee experience,

and to help us accelerate upskilling of the

entire workforce. Workday Learning gives

employees the ability to learn on a phone or

tablet, not just in the classroom, and LinkedIn

Learning provides access to a digital library

of thousands of global, expert-led online

courses across a wide range of topics.

We have also transitioned from paper-based

exams to digital E-Exams through an external

provider. This efficient solution ensures we

meet our stringent regulatory compliance

requirements and is projected to save 5,000

hours processing paper exams and 25,000

pieces of paper a year.

Building key life skills in our people is another

core priority and has seen us launch Project

Mana this year. A pilot programme with

Literacy Aotearoa and our airport teams,

it aims to improve literacy levels and develop

knowledge and skills to help employees

realise their full social, cultural, economic

and career potential. The first round of

Project Mana participants from Auckland

Airport graduated with qualifications in

Business Communication, Computer Skills,

Maths, Effective Writing Skills and Verbal

Communication. With the continued

support of Literacy Aotearoa we plan to

roll this initiative out to other airport teams

in New Zealand.

This year we signed up to the Prime

Minister’s Business Advisory Council Future

of Work Skills Pledge, committing to double

our training/reskilling hours by 2025 and to

report annually on our progress.

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| Sustainability Report 2019


| Engaging Air New ZealandersHe waka eke noa |

Operational challenges experienced by

the airline in the past year further highlight

the importance of this responsibility. To

support our people through the disruptions

associated with the Rolls-Royce engine

issues, we implemented a People Resilience

team which hosted monthly check-in calls for

leaders to assess any impact on resourcing,

absence or wellbeing issues. Any additional

support was implemented immediately or

escalated to the Executive for action.

We were proud to take overall honours at the

New Zealand Workplace Health and Safety

Awards this year, winning the WorkSafe New

Zealand/ACC Best Overall Contribution to

‘improving workplace health and safety in

New Zealand’. Our process to elect 293

Health and Safety representatives across our

entire network was recognised by the New

Zealand Safety Blackwoods’ ‘best initiative’

award to encourage worker involvement in

health and safety.

Protecting our

people’s wellbeing

Supporting the health, safety

and wellbeing of our people

is a critical part of being

a good employer. With more

than 12,500 Air New

Zealanders working in a

variety of roles across our

business, a systematic

approach to identifying

and minimising risk to our

employees’ health and

wellbeing is critical.

TOTAL RECORDABLE RATE OF INJURIES (TRR)¹

11.210.3

201720182019

26%8%

15.2

% year on year decrease

Employee Assistance

Programme

All Air New Zealand employees and their

immediate families have free access to our

Employee Assistance Programme (EAP).

EAP is an independent, confidential,

professional support service available 24/7

to help them deal with issues or events in

their lives. There were 1,157 EAP cases

in the past year, up from 924 in the 2018

financial year. We have actively promoted

the programme over the last year to ensure

our people are aware of the different ways

they can use it. We provided onsite EAP

counselling in Nelson during the February

wildfires when some of our families

were evacuated from their homes and in

Christchurch in March to support many

employees and families in the aftermath

of the mosque attacks.

Reducing injuries

There was a continued reduction in total

recordable rate of injuries

1

from 11.2 in 2018

to 10.3 in 2019. Most reported injuries were

the result of manual handling activities, slips,

trips and falls, and contact with objects. The

majority of these occurred while handling

baggage, special handling, stowing cabin

bags and during meal service.

Our long-term focus in this area is to

implement ‘safety in design principles’ to

eliminate or reduce manual handling risks.

For example, installing bag drop conveyors

at check-in means customers can safely

and easily upload their bags, reducing the

risk of handling injuries for employees and

customers. We have installed self-service

bag drops at Auckland Domestic, Wellington,

Napier, New Plymouth, Invercargill, Dunedin

and Christchurch Airports.

We are also addressing fitness for work

through targeted High Performance

Engagement

2

initiatives and the roll out of

our Safe Teams manual handling training

programme. The trial of vacuum-assisted

bag lifting technology at Christchurch Airport

shows promise as a future game-changer in

reducing manual handling injuries.

1 Based on injuries (medical treatment and lost time incidents) x 1,000,000 / actual hours worked

2 An interest-based approach to solving business challenges and opportunities by involving those people closest to the issues or opportunities

32% decrease from 2017 to 2019

Target TRR of less than 10 by end FY20.

01

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21

| Sustainability Report 2019


| Engaging Air New ZealandersHe waka eke noa |

Community

engagement

Koru Care flights

We have a longstanding relationship with

Koru Care New Zealand, who are best

known for taking groups of children with

major health issues to magical overseas

destinations. In the past year, Air New

Zealanders helped with five Koru Care flights,

flying 66 seriously ill children and their

guardians to dream holidays at Disneyland

California and Australia’s Gold Coast.

Airpoints™ for Schools

With the Airpoints™ for Schools programme

we team up with Airpoints™ members to

give Kiwi kids an opportunity to take flights

for educational travel experiences.

Airpoints Dollar™ donations from Airpoints

members, matched by Air New Zealand,

help schools with their flight costs, giving

aspiring young leaders the opportunity to

gain knowledge and inspiration to reach

their potential. This year 164 students from

10 schools with outstanding environmental,

cultural, social and educational goals were

selected for international and domestic

travel. Six students from Whangarei's He

Matariki Teen Parent School flew to explore

the capital city and visit Parliament, Te Papa

and Victoria University. Hatea-A-Rangi, a

decile two school in Tokomaru Bay, gave 25

students the chance to travel to Rarotonga

to connect with their Cook Island heritage

and perform at the Te Maeva Nui Festival,

and Hedgehope School in Southland sent

30 students to Russell to learn more about

New Zealand culture and the history of the

Treaty of Waitangi.

Greenteam in

the community

Passionate employees are engaged

employees. We encourage Air New

Zealanders to be active in their communities,

participating in programmes and causes

they care deeply about.

Our Greenteam is a network of more than

2,000 employees across New Zealand and

around our international network who can

volunteer to take part in projects that protect

and conserve our natural environment.

This year Greenteamers and their families

have cleaned up beaches and rivers, planted

native trees, and assisted the Department of

Conservation with the release of Pāteke on

the Milford Track, trapping predators in the

Abel Tasman and surveying seabird numbers

around Kapiti Island.

We set a target last year to increase the

number of employees who participate in

community programmes. In the last year 497

employees took part in a Greenteam activity,

a big increase from 276 the previous year.

01

24
23

| Sustainability Report 2019


He waka eke noa |

11

1 Total savings compared to the prior year 2 In 2019, at times up to four aircraft were unavailable for use as a result of the uncontrollable Rolls-Royce engine issues. To provide operational surety,

two Boeing 777-200 and one Boeing 777-300 aircraft were leased. Depending on flight route and duration, the leased aircraft typically used 20 to 26 percent more fuel than the aircraft they

replaced 3 Journeys partially or fully offset through Air New Zealand online booking engines; excludes corporate offsetting and offsetting made post-booking

1 Based on 2017 data. Sources: Air New Zealand’s Greenhouse Gas Inventory and the Ministry for the Environment’s 1990-2017 New Zealand’s Greenhouse Gas Inventory 2 In calendar year 2018

Air New Zealand’s domestic emissions covered by the NZETS were 621,078 tonnes, with a surrender obligation of 517,563 tonnes. One hundred percent of emissions have a surrender obligation

in calendar year 2019 3 In 2019, at times up to four aircraft were unavailable for use as a result of the uncontrollable Rolls-Royce engine issues. To provide operational surety, two Boeing 777-

200 and one Boeing 777-300 aircraft were leased. Depending on flight route and duration, the leased aircraft typically used 20 to 26 percent more fuel than the aircraft they replaced 4 More

details available at www.climateleaderscoalition.org.nz/action 5 In 2019, the 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. Air New Zealand has adopted this figure to remain consistent with national greenhouse gas inventory guidance, a

process which has included updating our baseline inventory and inventories for financial years 2016 to 2018 6 One tonne difference between the Total 2019 emissions on this table and the

Greenhouse Gas Inventory Report is due to rounding

Tackling climate

change & carbon

air operations account for about

0.7 percent of New Zealand's total

emissions.

1

²

The growth of the global aviation

industry has created enormous

economic and social good — it

connects people and cultures,

enables international trade and

enterprise, and boosts tourism

and local economies. What is

clear is we now need to grow in

a different way.

While we are delivering such

benefits and working to minimise

our carbon emissions, until

aviation biofuels are readily

available in New Zealand or

there are significant technology

breakthroughs such as electric

aircraft, we are unlikely to deliver

further significant carbon

emissions reductions through

our own operations.

In 2019 our carbon footprint

(greenhouse gas emissions)

increased by just over 5 percent.

This was primarily due to network

growth of four percent and fleet

substitution challenges triggered

by the Rolls-Royce engine issues.

3

Climate change is

without doubt the

biggest risk our

industry has faced.

As an airline, we are already

seeing the impact of climate

change in New Zealand, with

increasingly volatile weather

patterns and severe events

such as cyclones and storms

affecting flights and preventing

customers from getting to

where they need to go.

These weather events are no

longer rare occurrences — they

are happening more regularly

and have become a fact of life

for our operational teams which

are constantly having to juggle

schedules, customers and

aircraft as a result.

The aviation industry contributes

between two and four percent

of global emissions. Air New

Zealand emits around 3.5

million tonnes of carbon dioxide

annually, which makes us

one of the country’s largest

carbon emitters. Our domestic

Our carbon strategy is governed

by our Sustainability Executive

Steering Group with regular

reporting to the Air New Zealand

Board on carbon emissions and

our regulatory obligations.

Air New Zealand is a founding

member of the Climate Leaders

Coalition (CLC), a group of

more than 100 organisations

in New Zealand that work

together to take action on climate

change. By joining the CLC, Air

New Zealand has committed to

taking climate action in

accordance with the CLC’s

Climate Change Statement.

4

In August 2019 Air New Zealand

became one of the first New

Zealand companies to sign up

as a supporter of the Task Force

on Climate-related Financial

Disclosures (TCFD), joining over

800 other organisations globally

committed to implementing

and improving climate-related

disclosures. We will be

reporting against the TCFD

recommendations from the 2020

financial year.

GREENHOUSE GAS INVENTORY ⁵

Total operational

emissions scope

GHG emissions

sources

Tonnes

CO

2

-e 2017

Tonnes

CO

2

-e 2018

Tonnes

CO

2

-e 2019

Scope 1Aviation Fuel, LPG,

Natural Gas, Ground

Diesel, Ground Bio

Diesel, Ground Petrol

3 ,19 7,0113,296,0853,468,712

Scope 2Electricity2,6243,0443,098

To t a l s3,199,6353,299,1293,471,810⁶

Biomass (wood pellets)998638725

TOTAL TONNES CO

2

-e SAVED THROUGH CARBON REDUCTION PROGRAMME

1

201720182019

3,553

11,468

15,105

FLEET AGE IN YEARS (SEAT-WEIGHTED)

9.1

7.07.8

7.57.5

7.1

2017

2018

2019

2014

2015

2016

Number of customer journeys voluntarily offset through FlyNeutral

3

F LY N E U T R A L

20182019

130,282

183

,624

FUEL EFFICIENCY IMPROVEMENT

201720182019

2

0.3

%

1.1

%

-1.1

%

Average annual improvement

since 2009

2.3

%

Average annual improvement in aviation fuel efficiency (improvement vs previous year)

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| Sustainability Report 2019


He waka eke noa |

| Tackling climate change & carbon

We have instigated a number

of fuel savings measures

that have helped us improve

efficiency by more than 20

percent since 2009. We are

also focused on reducing

fuel use and emissions by

investing in a modern, fuel-

efficient fleet that will drive

future savings.

In May we announced our commitment to

purchase eight Boeing 787-10 Dreamliner

aircraft powered by GE Aviation’s GEnx-1B

engines. The first of these highly fuel

efficient aircraft will join our fleet in the

2023 financial year.

These long-haul aircraft will replace our fleet

of eight Boeing 777-200 aircraft, which will

be phased out by around the middle of the

next decade. These aircraft are expected

to be up to 25 percent more fuel efficient

than those they are replacing and have the

potential to save 190,000 tonnes of CO₂-e

emissions per year.

To the end of the 2019 financial year, we

had taken delivery of five A321NEO and three

A320NEO aircraft. New generation engines,

fuel efficient Sharklet wingtip devices and,

on the A321NEO, more seats, mean these

aircraft are collectively expected to help

deliver fuel savings of at least 15 percent

compared with the aircraft they are replacing.

Reducing our carbon

footprint in the air...

Improving efficiency

through flight operations

Last year we implemented more efficient

departure climb profiles on our Boeing 777

and Boeing 787-9 aircraft, which has resulted

in CO₂-e savings of 1,815 tonnes and 575

tonnes of fuel saved.

Approach-path efficiencies have also

progressed. In December 2018 we

implemented new approaches into

Christchurch across our jet fleet to reduce

the distance flown, allowing for continuous

low-powered descents and decreasing

the amount of fuel required. In the past 12

months these approaches have saved more

than 150 tonnes of fuel and 473 tonnes of

CO₂-e. We are currently trialling similar

approaches into Wellington and plan to

have these in place from September 2019.

Over the past year we have focused on

removing further unnecessary weight from

our domestic jet aircraft and have saved

nearly 200 tonnes of fuel and 631 tonnes of

CO₂-e. This includes carrying less potable

water on each flight, meaning we top up more

frequently to meet the specific needs of

individual flights.

Exploring biofuel

production

While there has been lots of testing of

aviation biofuel production globally, in

Australasia large scale and practical volumes

of aviation biofuel remain some way from

being a commercial reality, particularly in

the absence of clear policy incentives to

encourage production.

We know a future biofuel solution is

necessary. The big challenge is being able

to sustainably produce a viable aviation

biofuel option at the scale required to meet

aviation industry supply needs. We joined

with Z Energy, Refining NZ, SCION and

Auckland International Airport to investigate

how we could transition aviation fuel into

biofuel and whether setting up an aviation

biofuel plant in New Zealand could work. The

capital investment would be significant and it

has not been achieved anywhere in the world

without substantial government support to

establish production and thereafter ensure

fuel pricing remains economically viable.

We are working with aircraft manufacturers

to explore the role new propulsion

technologies could play in the future of

regional aircraft. Hybrid electric aircraft

are expected to enter the market in the

next decade. Depending on when these

technologies become available for larger

turboprop aircraft, we believe these could be

a viable option for our regional network.

We have also partnered with Zephyr

Airworks, the operator of Cora, the world’s

first autonomous air taxi. The agreements

with both partners signal our commitment

to embracing new technologies that will

make life easier for our customers, as well

as understanding the potential of cleaner

energy solutions for travel in the near future.

Regulatory support will be critical to

attracting these new technologies to

New Zealand and enabling their uptake.

Hybrid and electric aircraft:

flying into the future

02

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| Sustainability Report 2019


He waka eke noa |

| Tackling climate change and carbon

02

Two years ago we moved to using electricity

to power aircraft while at the gate whenever

available at Auckland International Airport,

and a roll out to Wellington International

Airport and Christchurch International

Airport quickly followed. Traditionally our

aircraft have been powered by an Auxiliary

Power Unit (APU) while on the ground that

consumes jet fuel and generates carbon

dioxide emissions. We estimated we would

save more than 6,000 tonnes of CO₂-e

annually by switching the APU off and

connecting to a renewable power source,

and we’ve exceeded expectations. This

financial year we saved 2,637 tonnes of fuel,

generating 8,322 tonnes of CO₂-e savings.

Further afield, we recently began plugging

into ground power at our newest US

destination, Chicago O’Hare International

Airport, as well as at Sydney Airport in

Australia for our wide-body aircraft. We will

begin reporting on the carbon savings from

these ports over the coming financial year.

An extension of the existing initiative aimed

at increasing carbon savings is in progress

at Auckland International Airport. The aim

is to further reduce APU use by utilising

ground power in conjunction with external

electrically powered air-conditioning units.

...and on the ground.

Electrifying our

ground fleet

Increasing our use of

ground power to save fuel

We've converted 83 percent

of our on-road light vehicles

to electric.

1

We have a target

that all our specialist airport

ground service equipment,

including aircraft tugs,

loaders and golf carts,

are 100 percent electric

where viable options exist.

Currently 62 percent of

our New Zealand-based

ground service equipment is

powered by electricity, and

we will convert 92 percent of

this equipment to electric by

the end of 2020.

1 Refers to on-road light vehicles where electric options exist

30He waka eke noa |
Meeting regulatory

obligations

We participate in the New

Zealand Emissions Trading

Scheme. In the 2019 calendar

year, Air New Zealand has

an obligation to report

greenhouse gas emissions

generated from fuel use on

all domestic flights and then

purchase and surrender to

the Government an equal

number of New Zealand Units

to match those emissions.

For emissions in international airspace, we

participate in the Carbon Offset and

Reduction Scheme for International Aviation

(CORSIA). Governed by the International

Civil Aviation Organization, CORSIA sets the

global framework to measure, report and

cancel offset units for international aviation

emissions. The monitoring phase commenced

this year and requires us to report emissions

from international aviation. Along with

other global participants we will begin to

offset emissions associated with growth

beyond 2020.

We also support the industry’s targets of

1.5 percent annual average fuel-efficiency

improvement (2009-2020), carbon-neutral

growth from 2020 and halving 2005

emissions by 2050.

02

Drylandcarbon

In March 2019 Air New Zealand entered into

a limited liability partnership with Contact

Energy, Genesis Energy and Z Energy to form

Drylandcarbon One Limited Partnership

(Drylandcarbon), which will see the four

companies invest in the establishment of a

geographically diversified forest portfolio to

sequester carbon and deliver New Zealand

Units (NZUs).

Drylandcarbon is specifically targeting

marginal, unproductive and often erosion-

prone land for conversion to sustainable

forestry for carbon farming.

Although the primary objective is to produce

a stable supply of forestry-generated NZUs

to support the partners meeting their annual

requirements under the New Zealand Emissions

Trading Scheme, given the potential size of

the portfolio the partnership is well placed

to make a real contribution to New Zealand’s

broader emission reduction objectives.

Forestry

Forestry remains an important

part of New Zealand’s short-term

response and Air New Zealand’s

engagement with landowners and

stakeholders to drive afforestation

has been valuable in moving those

efforts in a more professional and

efficient direction. Focusing on

new forests rather than purchasing

units generated from forests that

already exist but may not have

previously been entered in the ETS

is a more credible approach. The

other environmental effects of the

forests that are created will need to

be carefully considered.

Dr Suzi Kerr

Sustainability Advisory Panelist

PANEL VOICE

Zero Carbon Bill

The Zero Carbon Bill will lay

the foundation for New Zealand’s

low-emission economy, setting

high-level goals and establishing

the Climate Change Commission

to guide New Zealand’s

low-emissions transformation.

While progress on the Zero Carbon

Bill is critical and promising, as

always the devil is in the detail.

The Climate Change Commission

will need to have an appropriate

structure as well as sufficient and

stable resourcing to enable it to

build the capability required to

provide credible advice and strong

engagement with key players.

The Commission will need a

constitutional structure and

relationship that maintains

democratic control, but requires

the Government to release its

reports in a timely manner, take

recommendations from the

Commission seriously and respond

to recommendations publicly if

they choose not to follow them.

The relationship between the

Commission and Government

must continue to depoliticise the

process of New Zealand’s

low-emissions transformation.

Supporting the

Zero Carbon Bill

We are supportive of,

and submitted on, the

Government’s Zero Carbon

Bill. We want to see the

Government work in

partnership with sectors

that have limited emissions

reduction options to explore

complementary policy

measures that could support

lower-emission investments

and industry innovation.

We would particularly welcome engagement

and development of specific policies within

the aviation sector to support low-emission

technology solutions.

Aviation biofuels have the potential to enable

significant carbon emission abatement.

Incentivising development of local sustainable

aviation biofuels for scalable and cost-

effective supply would be of direct benefit

to New Zealand and would reduce aviation

emissions. Policy to facilitate a smooth

transition to lower-emission, hybrid or fully

electric aircraft will also be required in the

short-to-medium term.

A stable and well-planned low-emission

transition has the potential to traverse

election cycles and certainty would assist

corporate New Zealand to invest in a

lower-emissions future.

02

32
31| Sustainability Report 2019


| Tackling climate change & carbonHe waka eke noa | | Tackling climate change and carbon

FlyNeutral —

Helping our customers

voluntarily offset

carbon emissions

With growing awareness of

the effects of climate change,

we know many of our

customers are committed to

living in a more sustainable

way. FlyNeutral is one way

for customers to do their bit

alongside us to minimise

the impact of air travel on

the planet.

When customers choose to offset the carbon

from their flights, the money collected

goes to carefully chosen projects which

provide permanent, verified and sustainable

emission reductions. These projects

generate emissions reduction units, which

are purchased and then cancelled from

circulation permanently.

Through FlyNeutral and with the assistance

of Permanent Forests NZ, we support

permanent native forestry projects across

New Zealand, from Northland to the Chatham

Islands and from Wellington City Council's

Outer Green Belt to Hinewai Reserve on the

Banks Peninsula. These projects are certified

under the New Zealand Government's Forest

Sink Initiative. We also support sustainable

energy projects in countries we fly to,

including those in the Pacific region.

As well as absorbing carbon from the

atmosphere, native forestry projects

offer many benefits to the surrounding

communities. Chatham Islands Mayor

Alfred Preece has set aside a large part

of his land for reforestation and it’s become

a habitat to encourage back some of the

unique plants and birdlife of the Chatham

Islands and return that part of the island to

how it was pre-settlement. Alfred’s native

forestry project is one of six permanent

native forestry projects in New Zealand

supported through FlyNeutral. This year

the programme reached a significant

milestone — together with our customers we

have purchased more than $1 million worth of

carbon offsets from permanent New Zealand

native forestry projects.

Since integrating the offsetting functionality

into the booking flow in late 2016 and

introducing offsetting through our US, United

Kingdom, Canadian and Australian websites

this year, we’ve seen a stronger uptake

rate — from less than 100 bookings a month

to more than 15,000 journeys per month.

In the past year, retail customers partially

or fully offset more than 183,600 journeys,

up from just over 130,200 in the previous

year. We have also seen a rise in the number

of corporate and government customers

joining our FlyNeutral programme, albeit in

lower numbers than we would have hoped,

and we continue to encourage individual

retail customers and businesses to join

us in understanding and offsetting their

emissions. As well as encouraging our

customers to offset their carbon dioxide

emissions through FlyNeutral, we offset

all carbon dioxide emissions associated

with employees flying for work around our

network. In the last year this amounted to

more than 11,500 tonnes of CO₂-e reduced or

removed from the atmosphere.

In the past year, retail customers partially

or fully offset more than 183,600 journeys,

up from 130,000 in the previous year.

1 Number of bookings partially or fully offset as a percentage of all bookings; New Zealand data for all of FY19, other markets since functionality available

in early 2019

VOLUNTARY OFFSETTING UPTAKE FY19

1

New ZealandAustraliaUnited KingdomAmerica

4.6

%

4.3

%

9.8

%

7.3

%

When you’re living in the middle of

a vast ocean 2,000 km from the

nearest country, the last thing you

want to hear about is ‘flygskam’.

Translated literally it means ‘flying

shame’ and it’s the name of the

Swedish anti-flying movement that

led to an 8 percent fall in domestic

plane journeys within Sweden

during the first four months of 2019

alone. The movement argues that

the climate change implications

of flying around the world are now

so severe that people should be

ashamed of doing it. Tough gig

for a Kiwi.

Carbon from flying represents

only two to four percent of global

emissions, so it’s tempting to

believe this movement will never

really take off (so to speak). But

that is to miss the point. Emissions

Prof Tim Jackson

Sustainability Advisory Panelist

PANEL VOICE

could grow three- or four-fold by

2050 if nothing is done. And in any

case, flygskam is about fairness.

One return flight from Auckland

to London accounts for about four

tonnes of carbon dioxide; that’s 10

times larger than the entire annual

carbon footprint of the average

Bangladeshi. Flying must either find

a way to go fossil-free or else there

must be fewer air miles factored

into the business plan, rather than

more and more each year. Waiting

for it all to blow over is really not

an option, which is why Air New

Zealand’s world-leading Carbon

Reduction Programme is so vital.

The flygskam movement came from

a letter written in 2017 signed by

opera singer Malena Ernman, who

happens to be... Greta Thunberg’s

mum. It was Greta herself who

made it all famous. Just a year ago,

she was a lone schoolgirl sitting

outside the Swedish Parliament

with a handwritten placard. Six

months later she had inspired a

million and a half students from 112

countries to join her school strike

for the climate. This (northern)

summer she sailed across the

Atlantic to get to the UN climate

change conference. Not flying.

There is a simplicity to any message

when it comes from the mouths of

children. The house is on fire, says

Greta. The time for talking is over.

It’s time to act on climate change.

That’s a massive challenge for

any airline, whichever hemisphere

you’re in. But it’s a challenge that

Air New Zealand is already well

placed to take on.

02

1 Inbound shoulder season (April to November) arrivals on Air New Zealand; Source: Statistics New Zealand, International Visitors 2 To ensure comparability between years, previous years’
results have been updated using the same approach as 2019

COMMUNITY

ACTIVITIES

Tourism is vital

to New Zealand’s

economy,

contributing more

than $39 billion

1


annually and

providing jobs

for almost one in

seven working

New Zealanders.

Air New Zealand’s success and

New Zealand’s prosperity are

inextricably linked. We all

benefit from a healthy tourism

industry, but equally we need

to make sure that it is truly

sustainable. The benefits must

Supporting

New Zealand

through

sustainable

tourism

TRAVELLING DURING

SHOULDER SEASON

1


2017

2

45.7

%

2018

48.4

%

2019

47.8

%

Proportion of international visitors

on Air New Zealand travelling

during shoulder season relative

to peak

NUMBER OF PASSENGERS

FLOWN ON REGIONAL NETWORK

5.71M

2017

2018

2019

FLIGHTS PER DAY ON

REGIONAL NETWORK

2017

2018

2019

305

308

320

Average number of flights per day

FURRY AND FEATHERED FRIENDS TRANSPORTED FOR DOC

Kiwi

60

Kakapo

50

Pāteke / Brown Teal

109

Conservation dogs

77

405 threatened creatures and conservation dogs relocated including:

Schools supported

through Airpoints™ for

Schools programme

10

Biodiversity projects

supported with DOC and

iwi partners alongside

Great Walks

6

Marine sentinel sites

supported with DOC

with 10 research

projects underway

2

1 Tourism Satellite Account 2018, Statistics New Zealand

be felt across New Zealand

and not just in the main centres.

The peaks and troughs of high

and low seasons need to be

balanced to ensure year-round

employment and business

stability. Growth in demand

must be matched by quality

infrastructure and our

natural and cultural resources

must be protected and

enhanced. Ensuring the right

balance between the social

and economic benefits of

tourism and the environmental

impact is a challenge that the

New Zealand tourism industry

needs to collectively address.

These are big asks. Fortunately,

we have strong partners

including Central Government,

Tourism New Zealand, Tourism

Industry Aotearoa, Qualmark,

iwi, the Department of

Conservation and Regional

Tourism Organisations, all

working together to deliver

a more sustainable tourism

industry for Aotearoa.

We also acknowledge there is a

tension between network growth

and carbon emissions, which is

something Air New Zealand and

the aviation industry still need

to solve.

36
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35| Sustainability Report 2019


| Supporting New Zealand through sustainable tourism

Alongside our colleagues at Tourism New

Zealand (TNZ), we also invest heavily in

marketing New Zealand to prospective

visitors in offshore markets. Together with

TNZ we have recommitted to a marketing

partnership worth up to $20 million annually

to promote New Zealand offshore. The

joint activity will target potential visitors

from Australia, China, North and South

America, Japan, Singapore, the United

Kingdom and Europe.

We are working together to increase the

economic value of tourism, ensuring our

visitors enjoy memorable experiences and

promoting travel throughout the country,

often in the shoulder seasons, so that all of

New Zealand gets to enjoy the economic

benefits tourism brings. This is the sixth

consecutive year TNZ and Air New Zealand

have coordinated their international market

development and promotion, taking the total

joint investment to more than $100 million.

Tourism New Zealand and Air New Zealand

are also premium sponsors of TRENZ,

an annual industry event which brings

together about 300 tourism operators with

international travel and tourism buyers

and media from established and emerging

tourism markets. The event, held this year

in Rotorua, directly helps to grow New

Zealand’s $39 billion tourism industry.

ExportNZ, in partnership with Air New

Zealand Cargo, is helping to unlock Kiwi

business potential on the world stage. Its

Excelerate100 programme assists ambitious,

motivated firms with global growth

aspirations to access new export markets.

Air New Zealand Cargo is a platinum

partner of the programme, which provides

a combination of group learning and

mentoring support, for exporters, by

exporters. Senior leaders share their

experiences and provide practical advice

and perspectives on how to grow an export

business in a strategic way.

Part of our Cargo strategy is to help

perishable product exporters get their

products to customers in the best possible

condition. To do so, we have recently

purchased more than 500 new insulated

thermal containers compatible with our

Boeing and Airbus aircraft. These containers

ensure chilled products stay colder and

fresher for longer and enable shipping to

markets with hotter climates.

Air New Zealand added Chicago and Taipei

to its international network in November 2018

and will begin flying to Seoul in November 2019.

We're seeing strong customer demand for

our Chicago route, our fifth mainland North

American port. It’s not just attractive to

travellers from New Zealand, but significant

numbers of American visitors from the

Chicago area and beyond are flying on this

new route. We expect the route to contribute

significantly to the New Zealand economy,

and our regions will also benefit as we know

around 37 percent

1

of spending by US

visitors to New Zealand occurs outside the

main centres.

New routes bringing new

visitors to our shores

Supporting New Zealand

exporters

Working together to

promote New Zealand

to the world

03

The Taipei route is also performing well and

has seen visitors to New Zealand increase

by 24 percent

2

since we started flying. Most

of these visitors are holiday-makers, many

of whom visit regional ports when in New

Zealand, as well as the main cities.

Seoul is a densely populated city with more

than 10 million residents and inbound leisure

travel from South Korea to New Zealand

has grown significantly in recent years,

presenting an important tourism growth

opportunity for the airline and the New

Zealand tourism economy. The new service

will more conveniently connect the estimated

40,000 Koreans living in New Zealand with

friends and family in their home country.

Air New Zealand plays a pivotal role in the success of New

Zealand’s tourism industry and, similarly, the tourism industry’s

performance is an important factor in our commercial success.

Together with our alliance partners we fly about 45 percent of

all international visitors to our shores.

1 Monthly Regional Tourism estimates from the Ministry of Business, Innovation and Environment for July 2018 to June 2019.

Main centres for the purpose of this estimate are Auckland, Wellington, Christchurch and Dunedin 2 Visitor arrivals from

November 2018 to April 2019 compared to the corresponding period a year earlier (data only available until April 2019);

Source: Statistics New Zealand

38
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37| Sustainability Report 2019


We want to see all New

Zealand regions benefit

from sustainable tourism

growth and we are

committed to working with

councils, regional tourism

offices, airports, chambers

of commerce and iwi to

build demand for regional

New Zealand.

With a slowdown in inbound tourism growth,

we need to do more than ever to encourage

Kiwis to visit this great country and support

regional tourism. Growing visitor numbers

outside of peak periods is an industry focus

to take the pressure off tourism infrastructure

at the busiest times of the year.

Our direct service between Invercargill and

Auckland started on 25 August 2019. We

worked closely with Invercargill Airport and

our community partners to make the

service a reality, signalling our ongoing

support for Southland. It will mean the

region is more connected to New Zealand's

most populous city and largest airport, will

bring more visitors to the region, and makes

it easier for business travellers to get to and

from Southland.

Prior to the new service commencing, Air

New Zealand, Great South (formerly known

as Venture Southland) and key Southland

stakeholders launched the ‘Find yourself

speechless in Southland’ campaign to

showcase all that’s on offer in the region.

At the other end of the country, we launched

a joint campaign with the Bay of Islands

Marketing Group and Northland Inc. to

attract visitors to the Northland region

outside of the peak summer months.

Activities such as mountain biking around

Waitangi, kayaking around Haruru Falls,

exploring the caves of Motuarohia Island,

and sampling some of the fine local cuisine

were highlighted.

Showcasing the best of

regional New Zealand,

all year round

Destination marketing campaign

'Christchurch. Explore something new.'

was launched in May 2019 to inspire

and encourage New Zealanders to visit

Christchurch during spring. The campaign

focused on some of the beautiful locations

and great new culinary destinations in and

around Christchurch.

More broadly, our domestic marketing

campaigns have stimulated leisure demand

by encouraging Kiwis to explore the country,

specifically encouraging shoulder season

travel. Our retail campaigns have promoted

fares to regional destinations, and we

have undertaken awareness activity in

partnership with Dunedin Airport, Nelson

Airport, Wellington Regional Destination

Agency, Destination Rotorua and Tourism

Bay of Plenty.

PHOTO: Tutukaka coastline, photograph

by Nazar Abbas Photography

03

| Engaging Air New Zealanders
40

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| Sustainability Report 2019


He waka eke noa |

| Supporting New Zealand through sustainable tourism

Supporting tourism

and development in

the regions

This year we entered a long-term partnership with Queenstown

Resort College’s (QRC) Tai Tokerau Paihia campus, which aims

to build a tourism talent pipeline and career pathways for young

people, including those from underprivileged backgrounds. It

focuses on youth in Tairāwhiti Gisborne, Te Tai Tokerau, South

Auckland, the Bay of Plenty and the South Island.

Air New Zealanders will have the opportunity

to share their career journeys, expertise

and leadership with the College's tutors

and students. The top student from each

graduation class will receive an Air New

Zealand award and we will offer scholarship

support, opportunities for paid internships

PHOTO: Queenstown Resort College’s

(QRC) Tai Tokerau Paihia Campus, 2019

PHOTO: Pou on Maunga Hikurangi. Image

belongs to Te Runanganui O Ngati Porou

Working alongside

stakeholders in

Tairāwhiti Gisborne

We continue to work alongside Activate

Tairāwhiti and tourism stakeholders to boost

tourism in Tairāwhiti Gisborne.

Two Māori cultural tourism offerings, Maunga

Hikurangi Experience and the Tairāwhiti

Waka Hourua (double-hull sailing waka),

deliver an authentic cultural experience for

the region’s visitors. Both have received

Qualmark Gold accreditation in their first

year of operation, recognising their high level

of professionalism, sustainability practices

and customer-centric approach. This is an

outstanding achievement so early on in their

development and operation.

Getting the word out about these two new

experiences, as well as Tairāwhiti Gisborne

as a ‘must visit’ tourism destination, remains

a key priority, and we are developing a plan

of partnership marketing activity to

stimulate visitation outside of the peak

summer months.

Giving Kiwi youth a voice

and inspiring a new

generation of storytellers

Earlier this year, we signed a long-term

partnership agreement with the National

Geographic Society. As part of this

agreement, over the next two years we

will run Photo Camps in five different

New Zealand communities.

At these camps, young people, including

at-risk and underprivileged teens, will

learn how to use photography to tell their

own stories, explore the world around them

and develop deep connections with others.

With National Geographic photographers

as their mentors, they are challenged to

consider the difficult issues they face in their

own lives, whether economic, environmental

or social. Through presentations in their

own communities and public exhibitions

that reach millions of viewers, the students

will share their perspective on these

important issues.

Since 2003, National Geographic has run

more than 80 photo camps in over 20

countries. The first New Zealand camp will

be held in Murupara in the Bay of Plenty.

03

unemployment rate in some regions, and a

skills shortage in the tourism sector. Tourism

is New Zealand’s number one export earner

and we need to invest in future leaders with

the drive and skills to deliver its continued

success. A thriving, sustainable tourism

industry means a more prosperous country

for everyone.

and where possible jobs for some graduates.

In July 2019 the first College intern started a

nine-month placement at Air New Zealand.

By promoting tourism as a career, and

pathways into tourism, the partnership

addresses two key challenges: a high youth

42
41| Sustainability Report 2019


He waka eke noa |

| Supporting New Zealand through sustainable tourism

Tourism's role in

protecting our

environment

Dr Susanne Becken

Sustainability Advisory Panelist

Air New Zealand’s place at the heart of

New Zealand’s tourism industry is unusual

in a global context. When I look at other

countries, I can’t think of another example

where the national carrier plays such a

leadership role. Airlines are often the biggest

single player in a country’s tourism sector.

By bringing their scale, professionalism and

expertise to the table they can move the

dial considerably more than smaller players

acting individually. In this regard Air New

Zealand is leading the way.

The Tiaki Promise launched last year by

a coalition of tourism industry partners,

including Air New Zealand, iwi, and the

public sector, showed what this collaborative

approach could yield.

PANEL VOICE

Tiaki brings sustainability out from the

back-of-house, behind-the-scenes efforts

of individual industry players to harness

the energy of the whole industry and,

importantly, asks visitors to play their role.

The time seems right for this initiative;

it hits public sentiment both in terms of

visitors wanting to do the right thing and

destinations wanting responsible tourism

that adds value to their communities. It’s a

fantastic framework to build from and Air

New Zealand now has an opportunity to

use its channels and influence to provide

tangible advice and options to travellers

on how to be responsible visitors in New

Zealand. This is what I’ll be looking out for

in the coming year.

Bringing birdsong back to

our iconic Great Walks

Our partnership with the Department

of Conservation (DOC) as its National Partner

for Conservation is helping to protect and

restore biodiversity within some of New

Zealand’s most spectacular environments

alongside the Great Walks network.

We have supported over 31,000 hectares

of sustained pest control aiding the return

of native birdsong to these special places.

These biodiversity projects cover many

of the well-known Great Walks that New

Zealand has become famous for including

the Milford Track, Routeburn Track and

Heaphy Track.

Our latest commitment with DOC is to fund a

four-year $400,000 project on the Paparoa

Track Great Walk on the South Island’s West

Coast that will assist the reintroduction and

establishment of whio into the area while

increasing knowledge of the biodiversity in

the Paparoa Range.

The Paparoa Track, a 55km walk due to open

in December 2019, has been built for

mountain-bikers and walkers and is

expected to draw thousands of international

and New Zealand visitors annually, providing

significant economic support to the local

community. This track will provide access

into remote back-country areas, creating

a unique opportunity to increase the

protection and management of biodiversity

surrounding the area.

Encouraging responsible

tourism

In November 2018 we joined six other

New Zealand organisations to launch Tiaki

— Care for New Zealand, an initiative that

encourages international and domestic

travellers to experience New Zealand in a

way that keeps everyone safe, protects our

environment, respects our culture and takes

care of the country for future generations.

It is built on the notion that travellers have

both rights and responsibilities while

travelling around Aotearoa.

We promote the content through our inflight

entertainment screens, in Kia Ora magazine

and on our websites. Tiaki means to care and

protect in te reo Māori.

Our partnership with DOC means you may

sometimes find yourself on a flight with a

very precious passenger. In April this year we

translocated our 3,000th wildlife passenger,

a rare Okarito rowi kiwi chick named

Caedance. We have partnered with DOC

since 2012 to transport some of the country’s

most threatened wildlife to new homes,

as well as the conservation dogs who help

monitor them. New Zealand has nearly 4,000

threatened species, and they need more

help to ensure they have a brighter future.

Flying endangered

species

03

In our most popular tourist

locations, increasing visitor

numbers are placing greater

demands and pressure on

the natural environment

that New Zealand is famous

for. The tourism industry

has an important role to

play in helping protect the

environment and our precious

native flora and fauna for

future generations.

44
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| Sustainability Report 2019


He waka eke noa |

Our suppliers are an integral

part of how we will successfully

drive sustainability across our

business and contribute to a

more environmentally sound

and fairer New Zealand.

That’s why we have sharpened

our focus on strong supplier

partnerships based on shared

values and objectives. If our

suppliers don’t understand why

we are on this journey and share

our commitments, our global

supply chains will never reach

their true potential. We are

working to gain more visibility

and assurance across all our

supplier interactions.

Our considerable

scale gives us

the opportunity

to advance our

sustainability

agenda, but the size

and complexity of

our supply chain

means we simply

can’t do it alone.

Working with

our suppliers

1 Excludes fuel, airport fees, taxes and labour 2 Excludes fuel, airport fees, taxes and labour. Where supply agreements are not in place and supplier spend is less than $150,000,

Air New Zealand’s purchase order terms and conditions are used to apply the Supplier Code of Conduct

BOTTLES OF NEW ZEALAND WINE SERVED

963,232

OUR SUPPLIER CODE OF CONDUCT

201720182019

88.7

%

93.0

%

93.2

%

Percentage of suppliers (by

spend

2

) providing positive

assurance of our Supplier

Code of Conduct

New Zealand beef and lamb

dishes enjoyed

1.6M

Food preparation

locations

24

Meals served globally

6.3M

NUMBER OF MEALS SERVED

NGATI POROU FISHERIES

The airline prepared more than

45,000 appetisers featuring Ngati

Porou's Ahia™ smoked fish

45,000+

We also work with New Zealand

iwi and regional and sustainable

producers to build their capability

to supply into corporate supply

chains and to give them a

platform for driving demand

for their products and services

at home and around the

world. Helping these suppliers

showcase their products to our

customers and employees is

something we are really proud of.

SUPPLIER AWARDS

Tūhono Award

(Supreme)

Flight Interiors

Sustainability &

Ethical Practices

Ecoware

Operational Excellence

Michelin Australia

Best New Zealand

Partnership

Villa Maria

Customer Commitment

or Impact

Concentrix

Best International

Partnership

ST Engineering Aerospace

Innovation

Flight Interiors

Regional Partnership

JNP Aviation

Over $1.1 billion spend

across our global supply

chain in 2019

1

1.1B

SUPPLY AND DEMAND

More than 4,000 suppliers

4,000

46
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| Sustainability Report 2019


He waka eke noa |

| Working with our suppliers

Our Supplier Code of Conduct, based on the

United Nations Global Compact principles,

sets out our minimum expectations of

suppliers for labour, human rights, the

environment and ethical business. We have

achieved positive assurance from suppliers

representing 93.2 percent of procurement

spend

1

that they meet this code.

We are continuously improving our

processes but recognise we still have much

to do. This year we incorporated options for

the inclusion of sustainability considerations

across our procurement lifecycle, from how

we request proposals to how we measure

and track supplier performance. Further

embedding these within our teams’ practices

is something we will be focusing on in the

coming year. We have also improved our

supply agreement template to cover how

we work with our suppliers when either of

us believe the code is not being met.

Food and beverage sourcing is a particular

focus. Our catering partners continue to

work with us to understand and implement

requirements for sourcing sustainable

food products and proteins. This includes

standards in relation to the origin, quality

and traceability of proteins, horticultural

practices for fruit and vegetables, and

products that contain only sustainable

palm oil. We have partnered with caterers

to ensure animal welfare standards are

in place, certification of proteins sourced

in New Zealand, and the identification of

provenance through palm oil audits.

Our offshore catering supply chain is

particularly complex, and in collaboration

with our offshore caterers, discrete

programmes of work are underway to identify

and report on their sourcing practices.

Having a base of more than 4,000 suppliers

comes with challenges. This coming year

we will be introducing digital tools to enable

and support a deeper understanding of Air

New Zealand’s supply chain risk and drive

increased compliance with our sustainability

standards. In addition to broadening supply

chain compliance with Air New Zealand’s

Supplier Code of Conduct, we are working

proactively with our strategic suppliers to

ensure both parties’ sustainability goals are

progressed through joint activity.

1 Excludes fuel, airport fees, taxes and labour. Where supply agreements are not in place and supplier spend is less than $150,000, Air New Zealand’s purchase order terms and conditions are

used to apply the Supplier Code of Conduct

To be a sustainable business,

we must take responsibility

for what we purchase, the way

our products and services

are used and how waste is

disposed of. Our sustainable

supply chain strategy and

execution plan is governed by

an Executive Steering Group

and led by a Sustainable

Supply Chain Working Group

to ensure effective focus

and management of our

sustainability initiatives.

Changing the status quo

requires innovation and we

rely on our suppliers’ industry

expertise to bring Air New

Zealand’s sustainability

initiatives to life. This year we

launched Air New Zealand’s

Tūhono Supplier Awards with

a formal awards and dinner

event in August. Tūhono is te

reo for ‘standing together’.


The aim of the Awards was to recognise and

celebrate suppliers whose performance and

relationship with us over the past year have

made a strong and sustainable contribution

to the airline’s strategic objectives. It was also

an opportunity to highlight the importance

of our supply chain to achieve sustainability

outcomes such as waste reduction and

supply chain traceability.

Ecoware was the winner of the Sustainability

& Ethical Practices Award. They are pioneers

and experts in low-impact, compostable

packaging and have been instrumental in

enabling us to develop and implement

low-impact alternatives to many of our

inflight single-use plastic products.

The Awards were a fantastic way to

celebrate our suppliers’ contributions

to our business and the work we’ve

done together in partnership.

Recognising

our suppliers

04

Our

approach

04

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| Sustainability Report 2019


He waka eke noa |

| Working with our suppliers

A taste of

New Zealand

We have an opportunity

to showcase the best of

the nation's regions to our

customers. We are the

largest server of wine in

New Zealand and, apart

from the champagne and

port served in our Business

Premier™ cabin, we only

serve New Zealand wine.

This includes a selection of the best wines

from around the country, including Māori

and regional wineries. Through our

continued partnership with Villa Maria

wineries we collaborate on projects to

support shared sustainability goals, such

as waste minimisation.

We also support New Zealand wine growers

through our relationship with the Fine Wines

of New Zealand programme. We support

events that showcase the best wines the

country has to offer and we help wineries

facilitate export opportunities. Our own wine

consultants work with the programme’s

experts to ensure quality wine is served on

our flights and in our lounges.

We have been working closely with iwi and

businesses to showcase more premium,

homegrown product in our inflight menus.

Our partnership with Ngati Porou aims to

generate further economic and social growth

in Tairāwhiti Gisborne. We saw an opportunity

to build a sustainable, self-reliant tourism

region together and mutual value in being

able to procure regional products.

Since September 2018 we have been serving

Ngati Porou Fisheries Ahia™


smoked moki

as a menu option in our Business Premier™

and Premium Economy cabins on some

North American, Tasman and Pacific Islands

services. And when Christmas came around

at Air New Zealand, all of our employees

received a pot of Ngati Porou Tihi Honey in

their regional-themed Christmas gift box.

We are proud to be working together to

showcase authentic New Zealand products

to our customers and employees.

CASE STUDY

Ngati Porou

partnership

The positive impact on

our business has been

overwhelming with

a massive increase in

online sales, emails

and personal visits to

our outlet in Gisborne

and the Gisborne

Farmers Market from

visiting Air New

Zealand employees.

Also, Air New Zealand

employees from several

regions in New Zealand

are now regular

online purchasers.

Our business has grown

as a result and the

experience has better

prepared us for future

large orders.”


Vanessa Hayes,

General Manager

Torere Macadamias Ltd

Brett Johnston

Ngati Porou Holding Company Limited

Air New Zealand and Ngati Porou Holding

Company met for first the time in 2016 and

we took the time get to know each other,

understand how each other operates and

get comfortable working together.

There is a significant opportunity for the

provinces, including iwi, to partner with our

national carrier. Our partnership with Air New

Zealand has fast-tracked opportunities to

showcase our produce to whole new markets.

PARTNER VOICE

We have clear and honest conversations with

Air New Zealand to make sure everyone is

aligned on decisions and actions. Air New

Zealand and LSG Sky Chefs’ strict standards

for food safety and security have set a new

benchmark for our business.

Our burgeoning partnership with Air New

Zealand is a model for other iwi and regional

producers to emulate. It’s great to be

working with such an iconic business that

shares our passion for sustainability and

regional wellbeing.

04

Through our partnership with Tairāwhiti

Gisborne and Ngati Porou, we are now

serving sustainably caught fish from the

region on some of our international flights.

And during July, we shook up cocktail hour

offering alcohol-free spirits from boutique

Kiwi distillery Ecology and Co on flights

between San Francisco and Auckland.

In our lounges, we serve certified organic

and Fairtrade coffee from Hummingbird and

continue to work with local businesses such

as Loaf Handcrafted Breads to have their

products integrated into selected lounge

menus. We’ve also showcased around 60

different products such as licorice from

Levin-based RJ’s Licorice, Bottled by the Sun

juice from New Zealand’s only solar-powered

juicer, the Chia Sisters, and lobster from iwi

producer Port Nicholson Fisheries.

Last Christmas we treated our 11,500 New

Zealand-based employees with a regional

sustainability themed gift, with products

from a number of up-and-coming regional

and Māori producers. The size of the order as

well as the considerable exposure to a wide

range of potential purchasers gave these

local producers a well-deserved boost.

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| Sustainability Report 2019


He waka eke noa |

SINGLE-USE PLASTIC

Number of single-use plastic items being eliminated from Air New

Zealand’s waste stream or replaced by lower-impact alternatives

1

29M

460K

7.1M

550K

15.5M1.5M

200K

Plastic cups

- Recyclable

Water bottles

- Eliminated

Stirrers

- Compostable

Plastic bags

- Compostable

Cheese trays

- Compostable

Café cups and lids

- Compostable

Sauce packets

- Eliminated

PROJECT GREEN

Items recovered in 2019 financial year from international

flights arriving at Auckland Airport and reinjected onto our

aircraft (diverted from disposal)

1 Estimated annualised number of products that will be replaced, for those products where replacement commenced or was committed to in the 2019 financial year

Total number of items

11.3M

PLASTIC CUPS

4,800,000

SUGAR STICKS

1,700,000

PAPER CUPS

1,600,000

STIRRERS

880,000

OTHER

630,000

PLASTIC

CUTLERY

190,000

PAPER CUPS

& LIDS

1,500,000

Of course, great customer

experience and sustainability

are not mutually exclusive.

Increasingly our customers

expect us to deliver the unique

service we’re known for while

taking a leadership position

around issues such as waste

and plastic — after all, they are

doing their bit to reduce waste

and plastic in their lives. It’s a

challenge we must rise to if we

are to ensure our future social

licence to operate.

Unlike businesses that operate

on the ground, we cannot

simply return to using heavier,

We continue to see

the phenomenal

rise of consumer

awareness and

concern around

single-use plastic

products and the

impact of waste on

the environment.

Our people are also

pushing for change.

Reducing

waste & plastic

reusable materials, as extra

weight added to an aircraft has

a flow-on effect for fuel use and

carbon emissions. Therefore,

we need to be highly strategic

about who we purchase from and

what we purchase to ensure it

meets customer, regulatory and

sustainability expectations.

International flights are also

subject to strict Customs and

biosecurity standards, adding

a degree of complexity to how

we handle all international

inflight waste.

TOTAL WEIGHT OF ITEMS

REINJECTED ONTO OUR

AIRCRAFT AS A RESULT OF

PROJECT GREEN IN THE 2019

FINANCIAL YEAR

To

nne

s

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| Sustainability Report 2019


He waka eke noa |

| Reducing waste and plastic

Plastic,

not so fantastic

Re-evaluating our

waste targets

Our initial commitment made in October

2018 was to transition 24 million single-use

plastic items to lower-impact alternatives

over the next 12 months. By the end of

October 2019, we will have far exceeded

this, expanding the scope of the project to

transition 55 million single-use plastic items

across our global inflight network and ground

locations including lounges, offices and

workshop locations.

We’ve permanently withdrawn single-use

plastic water bottles from Business Premier

and Premium Economy cabins on Tasman

and Pacific Islands services under five hours,

as well as from our Works Deluxe offering on

these flights. This is expected to divert more

than 460,000 bottles from landfill annually

and reduce carbon emissions by more than

300 tonnes per year by reducing weight

on the aircraft.

One of our key milestones this year

was devising a strategy to reduce

single-use plastic use across the

business. To do this, we worked closely

with product suppliers and our waste

management provider to ensure new

products coming into the business

could be composted or recycled in

existing New Zealand facilities.

Ecoware was one supplier we closely

collaborated with, developing a fully

compostable, bespoke cheese tray

that is used on Koru Hour flights on

domestic routes.

CASE STUDY

Ecoware

By the end of October 2019,

all directly procured,

single-use plastic items

used on domestic flights

will have been switched to

lower-impact alternatives

1

,

and we will have rolled out

recyclable water cups and

coffee cups made from plants

across our global network,

marking the completion of

the first phase of our plastic

reduction strategy.

Tautalaaso Sonny Mataia

Travel Centre Consultant in Samoa

This year more than 600 Air New Zealanders

took part in our employee-led Plastic Free July

campaign. Our people took the challenge to

reduce their usage of single-use plastic very

seriously and were able to win some great

prizes as a result. One of the most impressive

examples was our team based in Samoa, which

arranged a fully catered meal to celebrate

Matariki in traditional style using zero plastics.

We based our Plastic Free July efforts around

the way our people lived before plastics

consumption was introduced to Samoa. We

emulated the way our ancestors ate, so we

wove coconut leaves into placemats and used

taro leaves as plates. Coconuts were split in

two and used as bowls and cups. We used a

Kava bowl to put our food in.

These bowls are made from wood and can

last up to 30 years, unlike a plastic takeaway

bowl that is used for a few minutes and then

takes centuries to break down in landfill. We

decided to tie this in with Matariki because

we felt that Matariki is a cultural celebration

for our Māori brothers and sisters and we

wanted to celebrate that as well as bring a

bit of Samoan flavour to the celebration.

EMPLOYEE VOICE

Individual plastic sauce packets have also

been removed from Business Premier cabins

on mainland North America and Hong

Kong services, and these will be eliminated

entirely from our global network by the end

of October 2019. Customers will instead be

served sauce in reusable dishes which is

expected to prevent around 200,000 plastic

packets going to landfill each year.

New Zealand faces

challenges when it comes

to waste, in particular a

lack of composting and

recycling infrastructure.

This is not a problem we can

solve on our own. A change

in New Zealand’s waste

infrastructure is required

before we, and the country,

can take our waste reduction

efforts to new heights.

At present we’re focused on reducing the

amount of waste and plastic packaging we

purchase at source, so we are less reliant on

having the appropriate end-of-life facilities

in place. The coming year will see a renewed

focus on working closely with our pool of

4,000 suppliers to drive changes in the

packaging of products, including some

customer-favourite inflight products.

Recycling, composting and waste diversion

constraints as well as data integrity

challenges mean we have not achieved

our waste reduction targets in the 2019

financial year and we are re-evaluating the

targets for the next year and beyond. The

types of products we can divert from landfill

through recycling systems have decreased

significantly. Previously we were able to

recycle seven types of plastic in existing

New Zealand facilities - now we can recycle

two. There is also limited infrastructure,

particularly in regional New Zealand, for

composting and diverting waste from landfill.

As a result, we’re investigating the types of

products we purchase to make sure these

can be processed in existing New Zealand

waste facilities.

Alongside these challenges, there is more

we can do to change our own behaviour —

from reducing single-use product use at

our ground sites to using the appropriate

bins. We are currently collecting further

data and developing revised targets in

conjunction with our new waste management

partner. This data will be externally audited

and we plan to announce new targets by the

end of 2019.

1 Directly procured items are those which Air New Zealand buys directly from suppliers (food

trays, bags, cups etc). This excludes plastic packaging/ wrappers that food items come in

It's been great working with Air New

Zealand as we commence the war on

plastic by substituting single-use plastic

products used on board with products

which can be reused or composted. We've

been honoured to partner with them

over the course of the last 12 months to

design and manufacture custom plant-

based packaging which is unique, fit for

purpose, and certified compostable.”


Alex Magaraggia

Co-Founder & Director,

Ecoware

0505

54
53| Sustainability Report 2019


He waka eke noa | | Reducing waste and plastic

Working with partners

to reduce waste

Project Green continues

to deliver

One of our major international waste

diversion projects is the Project Green

initiative, launched in conjunction with the

Ministry for Primary Industries and our

catering partner LSG Sky Chefs in July 2017.

In the 2018 financial year, 40 types of inflight

products were reclassified so they can be

reused on future flights if they are removed

from the aircraft sealed and untouched.

Products include cans of soft drink, packets

of cookies, boxes of tea, packets of coffee

and sugar sachets. To date we have

reinjected more than 280 tonnes of product

into our network and recycled more than

302 tonnes of glass. This is equivalent to the

weight of 13 Airbus A320NEO aircraft.

In July 2019 we rolled out Project Green in

Wellington and Christchurch, followed by

Queenstown in August. We’re also excited to

have introduced the initiative to our operation

in Los Angeles, our largest offshore catering

port, in conjunction with our partner LSG Sky

Chefs. This is the first time Project Green has

been implemented outside of New Zealand.

Based on trials in the four new ports, we

expect to divert around 111 tonnes of product

from landfill annually. We are also able to

save costs which we can reinvest on other

sustainable supply chain initiatives, with

less product waste going to landfill. Carrying

only what we need reduces weight on the

aircraft and helps to reduce fuel burn and

carbon emissions.

We plan to roll out Project Green in San

Francisco, Chicago and Houston over the

next 12 months.

As we step up our focus on waste, this

year we switched waste management

contractors which has led to new ways

of working together.

Waste Management NZ Limited will take

co-responsibility for delivering on our

public waste targets and are providing

full-time, in-house resource to work with

us on minimising waste at source.

Together we are looking at the entire

process holistically, from production

through procurement to end-of-life.

Working with our new waste

management partner

05

I work in the Ramp team at Auckland

Airport — we’re responsible for loading and

unloading cargo and baggage from aircraft

on arrival and before departure.

Earlier this year several members of the

team and I identified a surplus of magazines

were being delivered but not loaded onto

aircraft each month and were subsequently

being thrown away. This was creating a lot of

unnecessary waste, so I got in touch with the

Sustainability team to share my concerns.

Dan Watkins

Ramp team member, Auckland Domestic Airport

EMPLOYEE VOICE

As a result, the number of magazines printed

was reduced by around 2,000 copies each

month. Reducing the print run has resulted in

around 10,800 kilograms less magazines per

year being circulated.

I’m really happy with the outcome, which has

saved on waste and cost for the company.

And it’s been a great lesson in speaking up

when something doesn’t seem right — I’m

one of around 12,500 employees globally,

and it’s a reminder that responsibility for

making changes sits with every one of us.

Plastic refuses to leave centre

stage in the world’s war on waste.

In the Ministry for the Environment’s

public surveys, it remains a top

environmental concern for New

Zealanders. That’s not surprising

when we read plastic is now

detectable in fresh polar snow!

The global battle to minimise use

of plastic raises numerous threats

and opportunities for Air New

Zealand which, like other businesses,

has evolved alongside a highly

innovative and useful plastic industry.

For a start we must take a proactive,

as opposed to reactive, approach to

Sir Rob Fenwick

Sustainability Advisory Panelist

PANEL VOICE

the waste dilemma. Start with

purchasing and consuming less

wasteful products — simply

generate less waste in the first place.

Passengers expect change and Air

New Zealand has started by making

changes in its procurement

approach. To enable full resource

recovery, such as for compostable

organics, the airline will need to

create new partnerships.

Engaging a new waste management

partner in New Zealand presents

opportunities to collaborate around

new targets, develop industry

standards on reusable materials

and advocate for the significant

shifts to national waste policy

which are required alongside

behavioural change.

On a final note — Air New Zealand’s

inaugural Tūhono Supplier Awards

recently illustrated the multiples of

influence that lie within the airline’s

huge supply chain. It is waiting to

be tapped into. Customers and

suppliers ultimately want to preserve

the world’s stock of natural capital

as much as we do. It will happen

quickly with a bit of leadership from

private and public sectors.

PHOTO: Image courtesy of Getty

56
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| Sustainability Report 2019


He waka eke noa |

Air New Zealanders

Ta r g e tBaseline Year201720182019Status

Increase representation

of Māori and Pasifika in

Management positions

thorough the organisation

to 20% by 2022

13% (FY18)

13%15.4%

Recordable rate of injuries

1


reducing by 15% year-on-year

resulting in a rate of less than

10 by end FY20 (against FY17)

Recordable rate of injuries

of 15.22 (FY17)

Recordable rate of injuries

of 15.22 and 288 employee

injuries (15% decrease

from FY16)

Recordable rate of injuries

of 11.20 and 215 employee

injuries (26% decrease

from FY17)

Recordable rate of injuries of

10.30 and 179 employee injuries

(32% decrease from FY17)

90% execution of Critical

Risk Management Plans with

controls tested by end FY20

25% of CRM Plans in

place with controls tested

(based on Critical Risks

Gap Analysis) (FY17)

New target in FY18

All critical risks and controls

were registered in the

Enterprise Risk Register

All critical risks and controls

are registered in the Enterprise

Risk Register

Achieve an average

Flourishing Scale score

of 45 or better by end

FY20 against FY17

2

Establishing baseline

in FY17

47. 847.047.0

75% employee engagement

by end FY20

(Engagement survey sent out

bi-annually. The last survey

was in 2018. The next survey

will be in 2020) ³

67% (FY14)69% (FY16)71%71% (FY18)

50% Senior Leadership Team

(SLT) female by end FY20

16% (Jan 2013)39%39%44%

70% of our SLT alumni attain

Executive level, Non-Executive

Director or SLT roles in

organisations with New

Zealand Interests

86%

86%75%

Increase proportion of

employees who participate in

community programmes

New target in FY18

276 employees participated

in community programmes

497 employees participated

in community programmes

1 Based on TRR 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 Your Voice employee engagement survey conducted on bi-annual basis using Aon global engagement methodology

Ta r g e tBaseline Year201720182019Status

Impactful projects

implemented in East Coast

(Tairāwhiti) and Northland

(Te Tai Tokerau) to drive

social and economic benefit

by end FY19

New in FY18

Initial activities underway

• Product development project

implemented to support

capability to bring three

cultural tourism products

to market (Mount Hikurangi,

Waka Hourua and

Chardonnay Express)

• Air New Zealand and

Ngati Porou partnership

agreement signed

• Scoping of measurement

framework commenced (to

measure social, economic

and environmental progress

in region)

1

• Product development project

implemented in Tairāwhiti

which supported launch

of two cultural tourism

products (Mount Hikurangi

and Waka Hourua). Both

tourism experiences received

Qualmark Gold accreditation

• Strategic partnership with

Queenstown Resort College’s

Paihia campus launched to

support youth in regional New

Zealand meet their potential by

fostering clear pathways into

study and employment

• Ngati Porou smoked fish on

board Tasman and Pacific

Island flights

Community activities

implemented in every

New Zealand region

Air New Zealand flies

to (20 ports)

Airpoints™ for Schools with

10 schools selected in FY17

• Activities implemented in

18 ports

• Airpoints™ for Schools covered

off all but 7 ports

• Two ports were not delivered

to — Blenheim and Hokitika

• Significant community activity

throughout the regions with

the involvement of Koru Care

Dreamliner flight

• Airpoints™ for schools in 10

schools, located across 8 ports

Full compliance with

ICAO noise standards

for aircraft fleet

No notified noise breaches

in FY17

Achieved full compliance

with ICAO noise standards

No notified noise breaches

in FY18

Achieved full compliance with

ICAO noise standards

No notified noise breaches in FY19

Achieved full compliance with

ICAO noise standards


Red Cross supported to

respond to all disasters

in New Zealand and the

South Pacific

Air New Zealand not called

upon for response in FY17

Cargo provided support to MFAT,

Red Cross, and UNICEF during

Cyclone Gita in Tonga

17 tonnes of humanitarian relief

including, but not limited to, the

following items:

- Blankets

- Jerry Cans

- Kitchen Sets

- Solar Lamps

- Mosquito Nets

- Shelter Tool Kits

- Tarpaulins

- Generators

Members of Air New Zealand’s

Special Assistance Team

(SAT) were deployed to assist

Air New Zealanders and their

family and friends affected

by the Christchurch Mosque

attack victims

1 In FY19 target was adapted to focus approach on the East Coast to have maximum impact

Sustainability Dashboard

Our communities

58
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| Sustainability Report 2019


He waka eke noa |

Ta r g e tBaseline Year201720182019Status

Support six biodiversity

projects with DOC and iwi

partners on New Zealand

Great Walks to end 2020

Projects active on three

Great Walks (Lake

Waikaremoana on

hold), species transfer

programme fully

supported (FY16)

Projects active on four

Great Walks: Whanganui

River Journey, Abel

Tasman Coastal Track,

Heaphy Track and Milford

Track (Lake Waikaremoana

in development). Species

transfer programme fully

supported

Projects active on five Great

Walks: Whanganui River

Journey, Abel Tasman Coastal

Track, Heaphy Track, Milford

Track and Routeburn Track

(Lake Waikaremoana on hold).

Species transfer programme

fully supported

Projects active on six Great Walks:

Whanganui River Journey, Abel

Tasman Coastal Track, Heaphy

Track, Milford Track, Paparoa

Track and Routeburn Track (Lake

Waikaremoana on hold). Species

transfer programme fully supported

Antarctic Ecosystems Project

delivered by December 2019

First year of Antarctic

Ecosystems project

completed in FY17 by

NZARI scientists

First year of Antarctic

Ecosystems project

completed in FY17 by

NZARI scientists

Second year of Antarctic

Ecosystem projects completed

in FY18 by NZARI scientists

Third year of Antarctic Ecosystem

project completed in FY19 by NZARI

Scientists. Projects reported relate to

those completed by December 2018

Maintain zero environmental

non-compliances

Zero environmental

non-compliances as at

end FY15

Zero environmental

non-compliances as

at end FY17

1

Zero environmental

non-compliances as

at end FY18

One environmental non-compliance:

underground fuel tanks (at Auckland

Engineering & Maintenance) failed to

meet HSWA (Hazardous Substances

Regulations)

A compliant above-ground tank will

be operational by the end of 2019

IEnvA stage 2 certification via

IATA (Core activities-Flight

Operations & Corporate by

end FY19)


FY19 Target: IEnvA

recertification via IATA

with scope extended to

include all activities²

Maintained stage 1 IEnvA

certification in FY17

IEnvA stage 2 certification

achieved

IEnvA stage 2 certification achieved

Ta r g e tBaseline Year201720182019Status

Increase number of

customer journeys offset

voluntarily

FY18N/A (New in FY18)130,282183,624

1.5% average annual

improvement in aviation fuel

efficiency (2009-2020)

1

0.93t CO₂-e per

revenue tonne

kilometre (FY09)

0.3% improvement compared

to FY16

20% improvement compared

to FY09

(2.5% average annual

improvement)

1.1% improvement compared

to FY17

21.4% improvement compared

to FY09

(2.4% average annual

improvement)

1.1% degradation compared to

FY18

20.3% improvement compared

to FY09

(2.0% average annual

improvement)

Carbon Reduction

Programme implemented

in line with IATA audit

recommendations

Lightweight LD3 Unit Load

Devices saved 1,128,014kgs

of fuel or 3,553 tonnes CO₂-e

(new ground power procedures

confirmed at Auckland and

Christchurch)

The Carbon Reduction

Programme saved 3,633,950kg

of fuel or 11,468t CO₂-e. This

is comprised of the following

initiatives: Acceleration altitude

415,936kg fuel (1,310t CO₂-e),

Ground Power 2,015,000kg fuel

(6,367t CO₂-e), Lightweight LD3

Unit Load Devices 1,128,014kg

fuel (3,553t CO₂-e) and RNP(AR)

approaches in Christchurch

75,000kg fuel

(237t CO₂-e)

The Carbon Reduction

Programme saved 4,780,000kg

of fuel or 15,105t CO₂-e. This

is comprised of the following

initiatives: Acceleration altitude

574,600kg fuel (1,816t CO₂-e),

Ground Power 2,637,000kg fuel

(8,334t CO₂-e), Lightweight LD3

Unit Load Devices 1,219,000kg

fuel (3,852t CO₂-e), RNP(AR)

approaches in Christchurch

152,000kg fuel (480t CO₂-e), and

197,000kg fuel (623t CO₂-e) from

on-board weight reduction

5% annual reduction in

electricity use against

2011 baseline

56,210,433 kWh

(FY11)

8.8% reduction compared to FY16

43% reduction compared to FY11

0% reduction compared

to FY17

2

43% reduction compared

to FY11

6.5% reduction compared to FY18

46% reduction compared to FY11

100% electric vehicles in

light ground fleet (where

feasible)

3

by end FY19

0% (FY15)

100% Electric Vehicles where

feasible

3

Complete data for entire

light vehicle fleet not

available for 2018

83% Electric Vehicles where

feasible

44% of full fleet are Electric

Vehicles

4

60% electric Ground Service

Equipment (where feasible)

3


by end FY19 (92% by end

FY20)

32% (FY15)50.7%51.5%62.1%

Sustainable Building

Guidelines implemented

across Property and

Infrastructure portfolio by

end FY19 with 20% of new

lease agreements qualifying

as green leases by end FY19

25% (FY18)N/A (New in FY18)25.0%8.3%

82% diversion from landfill at

Auckland ground sites by end

FY19 (zero waste to landfill by

end FY20)⁵

65% (FY15)76.8%73.4%75.0%

75% diversion from landfill

at non-Auckland ground

sites by end FY19 ⁵

71.80% (FY17)71.8%68.3%68.2%

50% international inflight

dry waste diverted from

landfill at Auckland by end

FY19

49.60% (FY17)49.6%46.2%43.0%

50% of domestic jet inflight

waste diverted from landfill

by end FY19 ⁵

28.80% (FY17)28.8%3 7.1%39.6%

1 IATA industry target 2 Going forward future gains in electricity reduction will be incremental as our energy reduction program has reached the point where major reductions and easy wins have

been achieved. We will continue to focus on maintaining achieved reductions 3 Where feasible refers to availability of electric models for operational requirements 4 In 2019 we decided to publish

the proportion of EVs, relative to the full light vehicle fleet, in order to increase transparency around Electrification of our light vehicle fleet 5 Claim relates to the specific locations/sites that the

waste contractor services directly

1 There were seven minor environmental non-compliances in FY17. These were all quickly resolved and did not result in any sanctions or fines for non-complinace from the relevant councils

2 The IENvA stage 2 certificate is only for the large domestic airports Auckland, Wellington and Christchurch and not any other ports

CarbonNature and Science

Sustainability Dashboard

60
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| Sustainability Report 2019


He waka eke noa |

1 This excludes fuel airport fees, aircraft, taxes, labour. Where supply agreements are not in place, Air New Zealand's purchase order terms and conditions are used to apply the Supplier Code

of Conduct where the supplier spend is below $150,000

1 Inbound shoulder season (April to November) arrivals on Air New Zealand Source: Statistics New Zealand, International Visitors * To ensure comparability between years', previous year’s results

have been updated using the same approach as the current year

Ta r g e tBaseline Year201720182019Status

Increase proportion of international

visitors on Air New Zealand travelling

during shoulder season relative to peak

1

4 5.7%

*

48.4%47. 8%

Promote Tourism New Zealand's

Qualmark certification and certified

organisations

Achieved Qualmark Gold

Award

Investigating opportunities

to promote Qualmark

organisations through Air

New Zealand channels

A project is in development

that would enable Air New

Zealand to promote and sell

Qualmark activities

Ta r g e tBaseline Year201720182019Status

100% of suppliers providing positive

assurance of our Supplier Code of

Conduct by 2020

0% (FY15) New Code of

Conduct launched

Suppliers representing

88.7% of our spend

1


provided positive

assurance

Suppliers representing

93.0% of our spend

1


provided positive assurance

Suppliers representing

93.2% of our spend

1


provided positive assurance

Increase annual volume of New Zealand

exports on Air New Zealand

42,000 tonnes (FY17)42,000 tonnes41,000 tonnes38,600 tonnes

TourismTrade and Enterprise

Sustainability Dashboard

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tain

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