Air New Zealand releases 2020 Sustainability Report

Sustainability
Report
— 2020

— Contents
Introduction
03 Letter from the
Air New Zealand
Chief Executive Officer
04 Letter from the Chair
of Air New Zealand’s
Sustainability
Advisory Panel
05 About Air New Zealand06 Strategy & Governance
of Sustainability at
Air New Zealand
Sections
08 01.
Caring for
our people
& communities
12 02.
Tackling climate
change & carbon
emissions
16 03.
Championing
sustainable
tourism & regions
20 04.
Strengthening
sustainable
supply chains
& reducing waste
24 05.
Sustainability
dashboard &
performance
metrics
CONTENTS 2 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020

— Letter from the Chief Executive Officer
It has certainly been a very
challenging year for the
aviation sector and for Air New
Zealand. We have worked hard
to ensure the actions we have
taken over past months will
enable the airline to emerge
competitively and sustainably
from the Covid-19 crisis. But
some of the decisions we have
had to make as an organisation
have been painful and I am
grateful to the entire Air New
Zealand whānau – both those
who are still employed with
us, and those who are not – for
their incredible efforts and
personal sacrifices through
this really difficult time.
The pandemic we are together
facing has accentuated the
importance of connection, and
the crucial role international trade
links and international tourism play
in the New Zealand economy. The
impact of the global pandemic
has resulted in Air New Zealand
operating significantly fewer
flights in the past year, which has
seen our carbon emissions reduce
by 19 percent. While we will rebuild
our airline, there is no doubt our
emissions profile in the coming
years must be lower than it was
pre-Covid. Air New Zealand is one
of the most fuel-efficient operators
in the world with a very modern
fleet – but further significant
decarbonisation will be required,
especially because family
connections, business, tourism
and New Zealand’s key export
industries rely on international
air transport.
Being able to decarbonise our
business is considered vital to our
long-term success and remains
an important part of our business
model, even as we navigate the
most challenging economic
circumstances we have ever seen as
an airline. Acting on climate change
is not something we consider to
be a choice; it is an integral part
of the recent company-wide
strategy reset we have called Kia
Mau (“get ready” in te reo Māori).
Through this work it has become
increasingly clear that as an airline
and as a country, if we are to meet
our shared net zero by 2050 goal
and take decisive action in the
coming decade, we need to pursue
sustainable alternative fuels.
Sustainable fuels and the
infrastructure they rely on require
significant upfront capital and new
policy settings to give producers
confidence there will be long-term
demand and to ensure commercial
viability to the end user. These fuels
currently cost two to three times
that of traditional fuel – but that
commercial gap can be narrowed.
Making this a reality will require
close collaboration, investment
from both the public and private
sectors, and strong enabling
policy to attract investment
and ensure long-term industry
competitiveness. And we are up
for this challenge – because there
are equally strong environmental,
social and economic benefits to
be gained. Investing in sustainable
alternative fuels will create skilled
jobs benefiting regional New
Zealand; enable more resilient
fuel supply chains; and utilise
waste materials as feedstock from
forestry and landfills or municipal
solid waste, with the ability to
transition to other feedstock gases
using green hydrogen in the future.
New Zealand’s high mix of
renewable energy, reliance on
aviation for domestic connectivity,
and high proportion of relatively
short distance regional flights
also mean it is uniquely placed
to be an early adopter of next
generation aircraft (electric,
hybrid and/or hydrogen). Air New
Zealand is working with several
aviation equipment manufacturers
to accelerate development and
deployment of future aircraft and
engine technology. Establishing
New Zealand as a hub for aircraft
innovation and an attractive
location for the trialling of future
aircraft technologies will accelerate
the commercialisation of next
generation aircraft while also
providing employment and regional
development benefits.
A big thank you to our customers
too for your continued support.
We have been especially delighted
with voluntary offsetting rates
in the past year – through our
voluntary carbon offsetting
function FlyNeutral, together
we have contributed close to
$1.5 million towards permanent
native forestry projects across
New Zealand and achieved an
average uptake rate across all
retail storefronts of 7.1 percent.
Air New Zealand has a fantastic
story about what it has achieved
over the past decade and I’m
especially proud this year of our
continued support for strong
biodiversity outcomes with the
Department of Conservation
and to supporting regional
communities through domestic
tourism – including advocating for
better, more sustainable, tourism
outcomes for New Zealand
communities. In the coming year
we will continue to build on the
actions we have taken, leading
and advocating for action on
decarbonisation and in turn,
fulfilling our promise of taking
care further than any other airline.
Ngā mihi
Greg Foran
Air New Zealand
Chief Executive Officer
October 2020
Greg Foran — Air New Zealand
Chief Executive Officer
3 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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INTRODUCTION — LETTER FROM THE CHIEF EXECUTIVE OFFICER

This has been a terrible year
for the global aviation industry.
And there will be no immediate
bounce-back either. The
lingering effects of Covid-19,
quarantine controls, residual
nervousness in some people
about getting back on a plane,
even after a global vaccination
programme – it all points to a
slower recovery for aviation
than for almost every other
sector of the economy.
It also points to the imperative,
for all airlines, of positioning
strategically for that post-
pandemic world. There are many
uncertainties about what that world
will look like. But one thing that
is absolutely guaranteed is that
there will be a far greater sense of
urgency in addressing the Climate
Emergency in which the world finds
itself engulfed.
Many governments have – at
long last woken up to the scale
of this Emergency. And to the
fact that we can no longer defer
immediate radical action. The
Intergovernmental Panel on
Climate Change tells us, quite
straightforwardly, that emissions
of greenhouse gases need to halve
over the course of the next decade.
The aviation sector will not be able
to halve its emissions by 2030. But
it’s going to have to be on a steeply
declining trajectory by then, and
capable of demonstrating exactly
what its contribution would be to
avoiding the nightmare of runaway
climate change. A nightmare that
will make the impact of Covid-19
on the global economy look like
a minor market perturbation.
It is therefore very encouraging
to see Air New Zealand doubling
down on its Carbon Reduction
Programme and its overall
Sustainability Strategy, as reflected
in Greg Foran’s introductory
words. It would be so easy, facing
such incredibly difficult head
winds, having to take such painful
decisions to ensure the company’s
future success, just to put
sustainability ‘on the backburner’.
I can say categorically that this is
not happening, and that all of us on
Air New Zealand’s Sustainability
Panel (page 7) are impressed at
the leadership being shown here
both by the Board and by the whole
Executive Team.
I have been deeply critical of
the aviation sector in the past.
Ever since governments chose
to exempt international shipping
and aviation from the binding
agreement of the Kyoto Protocol
back in 1997, the response to
accelerating climate change on
the part of both sectors has been
complacent and obstructive.
If nothing else, Covid-19 has
shocked aviation into a more acute
realisation both of its vulnerabilities
and of its obligations.
Hopefully, it will have simultaneously
shocked governments into a
realisation of how much smarter
they now need to be in providing
the right policy settings to make it
possible for airlines to do what they
need to do. The new Government
in New Zealand now has a precious
opportunity to show what real
leadership looks like in that regard,
working closely with Air New
Zealand to ensure that one of New
Zealand’s most iconic companies
can indeed continue to thrive
indefinitely into the future.
And that, of course, is exactly what
sustainability means.
Sir Jonathon Porritt
Chair of Air New Zealand’s
Sustainability Advisory Panel
October 2020
Sir Jonathon Porritt — Chair of
Air New Zealand’s Sustainability
Advisory Panel
— Letter from the Chair of the Sustainability Advisory Panel
4 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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INTRODUCTION — LETTER FROM THE CHAIR OF THE SUSTAINABILITY ADVISORY PANEL

— About Air New Zealand
Prior to the 2020 Covid-19 pandemic, Air New Zealand operated a global
network, with a Pacific Rim focus, connecting passengers and providing
cargo services to, from, and within New Zealand.
As a small island nation in the Pacific, air travel provides a vital
connection to the rest of the world and this became even more
evident as global air travel reduced in the past eight months in
response to the pandemic.
While passenger numbers have dropped significantly since March 2020
due to Covid-19, we operated five repatriation flights to get returning
Kiwis home to New Zealand’s shores as well as 26 repatriation charter
flights for stranded visitors in New Zealand. This included flying to ports
we had never flown to before.
We carried more than 35,000 tonnes of cargo on our network in
the past year, supporting New Zealand businesses and facilitating
urgent movements of medical and infrastructure supplies and
transporting high value products to international markets.
domestic destinations



20
of the 2019 Deloitte 200
Sustainable Business Award
in New Zealand

social media fans, up from 3.08m
in the prior year


3
.
18
m
Number of Airpoints™ members,
up 9% from the prior year


3
.
49
m
of cargo carried, including 20,000
tonnes under the International
Airfreight Capacity Scheme
commenced with the Ministry of
Transport in May 2020
35
,
045
tonnes
W
inner
5 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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INTRODUCTION — ABOUT AIR NEW ZEALAND

— Strategy & Governance of Sustainability at Air New Zealand
Our purpose at Air New Zealand is to enrich our country by connecting
New Zealanders to each other and New Zealand to the world.
Our Sustainability Framework has helped to guide our
actions and is aligned with the United Nations Sustainable
Development Goals (SDGs), the blueprint to create a better and
more sustainable future for all. We have identified nine SDGs
that we have the greatest ability to positively impact.
Internally, we regularly monitor and track performance against targets in each of our framework areas. In the
past year we had a four-member Sustainability Executive Steering Group comprising our Executives responsible
for Strategy; Ground Operations; Marketing & Customer; and Operational Integrity and Safety. Moving forward,
the full Executive will meet monthly to discuss advancement of our decarbonisation plans and sustainability
agenda given their significance within our new company-wide strategy.
Sustainability Framework
Manaakitanga
Our people
Air New Zealanders
Communities
2020 marks the final year for many of our targets as articulated in our Sustainability Framework
and in 2021 we will be sharing our new strategy, focus areas and associated goals and targets.
Key learnings over past years include:
• The importance of ensuring
strong cross-business
collaboration and holding
relevant senior leaders jointly
accountable for achieving
the company’s sustainability
targets, coupled with strong
shared governance at the
Executive level to ensure
delivery within the organisation.
• The critical roles that
organisational culture and
building sustainability
knowledge within senior
leadership, delivery teams, and
partners play in achieving our
sustainability objectives. In the
past year, the Sustainability
Masterclass (see page 10), hosted
for key Air New Zealanders and
external parties, helped to drive
more personal and therefore
business-wide ownership of the
sustainability agenda.
• The need to get started, even at a
small scale, to generate learnings
and eventually build momentum
for larger scale impacts. An
example here includes our small
initial substitutions for single-use
plastic inflight materials, which
have subsequently encouraged
the exploration of new suppliers
and products to deliver more
widespread waste reductions.
This led us to removing 55
million single-use plastic items
from our operations through
transitioning items to lower-
impact alternatives or removing
them entirely.
Kaitiakitanga
Our place
Carbon
Nature & Science
Ōhanga Ora
Our economy
Tourism
Trade & Enterprise
6 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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INTRODUCTION — STRATEGY & GOVERNANCE OF SUSTAINABILITY AT AIR NEW ZEALAND

Our Sustainability Advisory Panel provides an independent forum by which expert
guidance and critique is provided on our sustainability agenda.
The Panel is currently made up of four external members who
meet with relevant Executives and senior leaders twice a year
to hear about our current progress on sustainability targets,
provide updates on new developments in the sustainability
space, and debate and develop new opportunities.
Panel members have been selected based on their unique sets of skills to assist us with driving our sustainability
agenda forward. Current Panel members include Sir Jonathon Porritt, Dame Anne Salmond, Dr Susanne Becken,
and Professor Tim Jackson. We were also deeply saddened by the passing of Sir Rob Fenwick in early 2020.
Sir Rob was a member of our Panel since 2015 and we valued him hugely for his contribution, support and
challenge on our sustainability agenda. He had incredible vision and took significant actions to improve New
Zealand’s biodiversity, climate and waste reduction outcomes and was fundamental in accelerating corporate
sustainability progress across the country. To read more about our Panel members click here. The Panel also
provides continuing advice on sustainability matters outside of these bi-annual meetings, including supporting
us on sustainability aspects of our new Kia Mau (‘get ready’) strategy.
Sustainability Advisory Panel
Material issues for 2020
In this report we focus on the following:
01.
Caring for
our people &
communities
02. Tackling climate
change & carbon
emissions
03. Championing
sustainable
tourism & regions
04. Strengthening
sustainable
supply chains &
reducing waste
05. Sustainability
dashboard &
performance
metrics
Ongoing engagement with our internal and external
stakeholders allows us to consider the key issues they care
about and identify material issues that are relevant to Air New
Zealand in the current operating context. Consultation takes
place with our employees, customers, investors, suppliers,
industry partners and the communities we operate in.
The identification of our material issues is further supported by our Board
of Directors, Executive, and Sustainability Advisory Panel who assess
the issues that are most material to our operations, the environment,
our customers and other stakeholders. Our Executive also reviews the
risks identified in our Enterprise Risk Process and annual and long-term
strategic planning cycles.
The material issues identified as part of this canvassing of multiple
stakeholders then forms the backbone of our direction as a company,
including strategic priorities, sustainability initiatives, mitigation of risk,
and reporting.
7 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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INTRODUCTION — STRATEGY & GOVERNANCE OF SUSTAINABILITY AT AIR NEW ZEALAND

– Caring for our people
& communities
People are and have always been the heart of
our airline – he tāngata, he tāngata, he tāngata.
Manaaki or caring for our people is inherent in who
we are – that care carries through to our customers
which is why they choose to fly with us.
This year our people have proven yet again how
resilient and dedicated they are as we have faced
one of the most difficult times in the airline’s history.
Despite saying goodbye to friends and colleagues
and adapting to Covid-19 Alert Levels, they continue
to deliver exceptional service to our customers and
outstanding work.
SECTION 01 — CARING FOR OUR PEOPLE & COMMUNITIESAIR NEW ZEALAND SUSTAINABILITY REPORT 2020 8 —
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Supporting our
people through
Covid-19
The past eight months have been
exceptionally challenging – the
impact of Covid-19 on the aviation
and tourism industries has been
heart-breaking. Over this time our
priority has been the health, safety
and wellbeing of our people and
our customers.
We have worked closely with the
Ministry of Health to implement
measures to keep our crew and
the New Zealand public safe.
Such measures have included
the extensive use of personal
protective equipment (PPE),
on-site Covid-19 testing for our
people, isolation of international air
crew, and the cleaning of aircraft
with antiviral products.
The difficult economic
circumstances meant we had to
make the tough decision to right-
size our organisation to match
the reduced flying demand and
prepare the airline to be smaller
for at least a time. We worked
with our unions and employees to
find alternative ways of reducing
costs to minimise the number
of redundancies. Unfortunately,
we still had to farewell more than
4,000 Air New Zealanders and
more than 1,000 others have
taken voluntary periods of leave
without pay or reduced hours to
support the airline.
We have put in place a number of
measures to support people exiting
the business and safeguard the
wellbeing of all Air New Zealanders.
This included promoting our
wellbeing resources:
• Wellbeing Hub with customised
Covid-19 toolboxes on financial
wellbeing, managing stress
and anxiety, self-isolation and
working remotely
• Weekly wellbeing check-in text
messages and emails – people
could tell us how they and their
whānau were feeling and request
a wellbeing check-in. More than
28,000 responses were received
• Thrive mental health app
• Employee Assistance
Programme
• Peer Assistance Networks
• Our Special Assistance Team
was deployed to support
vulnerable employees
• Health & wellbeing livestreams
on managing stress, financial
wellbeing and mental health
The Āwhina Trust was set up to
provide employees with hardship
grants, using funds provided
through salary sacrifice and
donations from employees. More
than 1,000 Air New Zealanders
have received a grant so far. We
also worked with AMP to enable
our FlexiSaver members to make
withdrawals of up to 30 percent
from their superannuation account.
Internal secondment opportunities
were maximised to keep people
employed for as long as possible.
For example, cabin crew and airport
workers supported the Contact
Centre team in answering the tens
of thousands of queries we received
every week. The Learning team
partnered with tertiary education
providers to promote reskilling
courses and funding options for
impacted employees. Learning
materials were also created along
with curated LinkedIn Learning
modules. Career transition support
was provided through:
• 1:1 Careerdesk advice
• Career livestream sessions,
workbooks and videos
• Promotion of external job
opportunities – more than
1,000 jobs shared with nearly
45,000 views
• Staying Connected Register for
departing employees to receive
future job opportunities
It has been enormously challenging
for our international crew flying our
cargo and repatriation flights. They
undergo testing before departure,
isolation in hotels while on layover,
then more testing and self-isolation
on return. Our Chief Medical Officer
works closely with the Ministry of
Health to make sure we have the
most up-to-date practices and
precautions to ensure safety. The
team recently established in-
house compliance and surveillance
testing for employees to make it
easier for them to get tested. We
are also working with overseas
hotels to make sure crew have
access to fresh, healthy food and
rooms with outlooks to improve the
layover experience.
We are extremely grateful for
the professionalism Air New
Zealanders have shown throughout
this crisis. They have been
steadfast through the constantly
changing environment and remain
the backbone of our business.
Our diverse
people
Diversity creates a better
culture, drives innovation and is
ultimately good business. With
more than 132 known ethnicities,
we strive to create a workforce
that represents Aotearoa and is a
place Air New Zealanders can be
themselves and thrive.
Our 10 employee networks
connect, support and give a voice
to our employees, driving an
inclusive workplace where people
of all genders, sexual identities
and abilities are respected,
accepted and valued. They have
been instrumental in us attaining
the Gender, Rainbow and
Accessibility Ticks.
In addition, we have learning
modules on understanding our
different communities, what being
inclusive looks like and awareness
of the impact of unconscious bias
on decision-making.
Gender
balance
We pride ourselves on developing
women and promoting gender
diversity, creating a culture that
empowers women. We have
increased the proportion of women
in senior leadership positions over
the past year, with 51 percent of
our Airline Leadership Team now
women. Our gender pay equity gap
shows men are paid 0.89 percent
more than women in comparative
roles, so we will continue to review
our processes and policies to
ensure they promote equality.
9 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 01 — CARING FOR OUR PEOPLE & COMMUNITIES

Māori &
Pasifika
development
Our commitment to growing and
developing Māori and Pasifika
leaders continues, with 17 percent
of leaders now of Māori or Pasifika
descent
1
. We are well on track to
meet, and hopefully exceed, our
target of 20 percent by 2022.
Mango Pare, our programme to
develop aspiring Māori and Pasifika
leaders through indigenous
values, kicked off last year. The
first 16 participants shared
overwhelmingly positive feedback
– check out what they had to say
here. We are running another
course this year and are grateful for
the funding received from Te Puni
Kōkiri to support this.
Over the past year our Tu p uTo a
intern programme (which aims to
create career pathways for Māori
and Pasifika students) had eight
interns, four of whom have stayed
employed with Air New Zealand
following their internships.
Embedding
sustainability
Pre-Covid-19, a key strategic focus
was on embedding sustainability
and enabling more than 100
of our people leaders and key
stakeholders (suppliers, airport
operators, key customers and
investors) to build awareness
and capability to deliver on our
sustainability agenda. In November
2019, Sir Jonathon Porritt, Chair of
Air New Zealand’s Sustainability
Advisory Panel, facilitated a two day
Sustainability Masterclass, where
world-class local and international
contributors provided expert
insights and facilitated discussion –
assisting participants to build their
knowledge and explore ideas and
actions to meet the sustainability
challenges confronting both Air
New Zealand, the aviation sector
and partners across New Zealand.
Community
support
As an airline we endeavour to
extend manaaki to the communities
we fly to and support New
Zealanders through a number of
initiatives. Unfortunately many of
our programmes were impacted
by Covid-19, but some of the
successes were:
• Our Carepoints™ programme
launched in May enabling
Airpoints™ members to donate
Airpoints Dollars™ to three
charity partners – KidsCan,
Women’s Refuge and New Zealand
Red Cross. Nearly 250,000
Airpoints Dollars were donated
• The Airpoints for Schools
programme had some travel
that was impacted. We are
working with the chosen schools
to reschedule them on their
educational travel
• Our internal team of
conservationists, called the
Greenteam, supported several
volunteering activities this year,
including the Department of
Conservation Pāteke release in
the Arthur Valley
As we look to 2021 we will continue to
rebuild our community programmes
around the Covid-19 restrictions,
adapting where we can.
Playing our
part to deliver
essential
personal
protective
equipment
As the Covid-19 pandemic grew
in impact and reach, we worked
with the business sector and
the Government under tight
timeframes to arrange 80
dedicated cargo flights from
Shanghai to Auckland. Many of
these flights contained PPE for
health workers and other essential
services. In total millions of items of
PPE were delivered, with dedicated
PPE flights on average containing:
• 416,000 masks
• 8,300 sterilised gowns
• 23,000 medical alcohol wipes
• 5,000 plastic face shields
• 16,600 litres of hand sanitiser
These logistically complex
operations provided vital PPE
reserves for New Zealand at a
time when there was substantial
demand for such supplies
around the world. Across April
and May alone, we moved
around 1,200 tonnes of cargo
from Shanghai to New Zealand,
the majority of it PPE. We continue
to keep these key cargo links
open to ensure adequate PPE
supplies globally.
1 Based on those Air New Zealanders that have elected to fill out their descent details.
10 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 01 — CARING FOR OUR PEOPLE & COMMUNITIES
SECTION 01 — CARING FOR OUR PEOPLE & COMMUNITIES

MĀORI & PASIFIKA LEADERS
2018
13
%
2019
15
%
2020
17
%
WOMEN IN LEADERSHIP/
MANAGEMENT
2020
36
%
WOMEN IN SENIOR LEADERSHIP
2020
51
%
average unique users each month
WELLBEING HUB VISITS
1,165
EMPLOYEE ASSISTANCE PROGRAMME (EAP) UTILISATION RATE
1
2019
9.8
%
2020
10. 5
%
2020
TOTAL RECORDABLE RATES (TRR) OF INJURIES
2
5.1/million hours
(down from 10.3 in 2019)
— Key metrics
EMPLOYEE NETWORKS IN OPERATION
1. Pride
2. Manu
3. Enable
4. Women’s
5. Kiwi Asia
6. E x-Ser vice s
7. Yo u n g
Professionals
8. Women in Digital
9. WINGs (Women
Inspiring the
Next Generation)
– Pilots
10. Women in
Engineering,
Maintenance
& Supply Chain
1 EAP Association Guidelines indicate that a utilisation rate (the percentage of new and re-opened cases, based on FTE) over 6% is an indication EAP is being used as a proactive wellbeing tool.
2 Based on injuries (medical treatment and lost time incidents) x 1,000,000 / actual hours worked.
11 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 01 — CARING FOR OUR PEOPLE & COMMUNITIES

Despite Covid-19 clipping the wings of the global aviation industry
in the past eight months, the importance and urgency of climate
action remains as pressing as ever.
While the Covid-19 pandemic essentially grounded
a significant proportion of the global aviation industry
in 2020, the climate has continued to warm. World
over, devastating climate-related weather events have
gained momentum and intensity. From wildfires in
Australia, the United States and the Arctic, to flooding
in New Zealand, the climate crisis has not stopped for
the pandemic.
– Tackling climate change
& carbon emissions
12 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 02 — TACKLING CLIMATE CHANGE & CARBON EMISSIONS

At the same time, the pandemic
has exposed the criticality of air
transport to New Zealand’s trade,
export, investment and tourism
industries. The importance and
pitfalls of global connectivity
have never been more stark and
the enormous economic benefit
created by air travel has never
been more apparent. It is clear
that aviation remains vital to our
future prosperity, but the industry
must evolve and operate in a more
sustainable manner.
Through our dedicated Carbon
Reduction Programme, we have
continued to focus on making
the operation as fuel efficient as
possible, both in the air and on the
ground. This focus has helped us
improve fuel efficiency by more
than 18.3 percent since 2009.
The Covid-19 pandemic and New
Zealand’s elimination strategy
and border closure, required the
airline to pivot and support the
recovery of the economy via its
cargo operation. During the year,
the airline operated hundreds
of charter flights, enabling the
movement of pandemic response
equipment, PPE, and facilitating
repatriation of people. However,
continued fleet substitution
challenges caused by the Rolls-
Royce Trent engine issues coupled
with the unique challenges
posed by the Covid-19 operating
environment, ultimately eroded
some of the hard won efficiency
gains in the first part of the year, as
the operation responded to a new
network, new destinations, new
social distancing guidelines, fewer
passengers and more cargo.
Air New Zealand continues to be
a participant in the New Zealand
Emissions Trading Scheme and 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. In the 2019 calendar
year, our Emissions Trading
Scheme obligation was 628,408
tonnes CO
2
-e. For emissions
generated in international
airspace, we participate in the
Carbon Offset and Reduction
Scheme for International Aviation
(CORSIA) requiring carbon neutral
growth from 2020 and annual
measurement and reporting.
Read more about our climate-
related governance, strategy,
risk management, metrics and
targets in our 2020 Taskforce
for Climate Related Financial
Disclosures (TCFD) contained in
our 2020 Annual Financial Results
available here.
Covid-19 has not dampened our
customers’ awareness of the
effects of climate change or
their commitment to travel in a
more sustainable manner. More
customers than ever before chose
to voluntarily offset their flight-
related carbon emissions in the
year, either by “ticking the box”
when booking, or by offsetting
through our FlyNeutral programme
for corporate and government
customers. Air New Zealand also
continued to voluntarily offset all
the carbon emissions attributable
to employees flying for work
around our network.
VOLUNTARY OFFSETTING UPTAKE RATES IN FY20
1
1 Number of bookings partially or fully offset as a percentage of all bookings through the relevant online storefront; New Zealand, United Kingdom, United States, Canada and Australia data for all FY20, other markets since functionality was available within the year.
2 Customers are listed in order of tonnes of CO
2
-e offset through the programme in FY20.
New Zealand (up from 4.6% in FY19)
7.0
%
UK (up from 9.8% in FY19)
14.0
%
US (up from 7.3% in FY19)
10.3
%
Canada (up from 6.0% in FY19)
9.0
%
Australia (up from 4.3% in FY19)
6.3
%
Singapore (since launch 4 Oct 2019)
4.8
%
Japan (since launch 3 Mar 2020)
6.9
%
7. 1
%
Uptake rate across
all activated storefronts
(up from 4.6% in FY19)
CORPORATE AND GOVERNMENT CUSTOMER ROLL OF HONOUR
Corporate and Governmental
organisations demonstrating
leadership by offsetting
flight-related travel emissions
in FY20 through FlyNeutral
2
Massey University / Spark / Ministry of Social Development / Accident Compensation Corporation /
Ryman Healthcare / AsureQuality / Health Quality and Safety Commission / PĀMU Farms of New Zealand /
Stuff / New Zealand Oil & Gas / Milford Asset Management / Information Leadership / Arvida / Bell Gully /
Hawkes Bay Regional Council / BLAKE / Co-op Bank / Office of the Clerk / Deloitte New Zealand
13 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 02 — TACKLING CLIMATE CHANGE & CARBON EMISSIONS

Within FlyNeutral, half of the carbon
emitted was offset with emission
reduction units generated from
permanent native forestry projects
in New Zealand, including from the
NZ Native Forest Restoration Trust,
Wellington City Council’s Outer
Green Belt, the Coatbridge Native
Forest Project (Marlborough),
the Tempello Biodiversity Project
(Marlborough), Hinewai Reserve
(Banks Peninsula) and Owenga
Reserve (Chatham Islands). The
airline and its customers supported
permanent native afforestation
throughout New Zealand by
contributing around $1.47 million
to these New Zealand projects in
the past year. The other half of the
carbon emitted was offset with
emission reduction units generated
from biodiversity and sustainable
energy projects in New Caledonia,
Australia and China. Air New
Zealand keeps none of the funds
collected via FlyNeutral.
Despite the devastating impact of
the pandemic, customers chose
to voluntarily offset more carbon
emissions than ever before through
FlyNeutral in the year – along with
the airline’s own voluntary offsetting
commitments, customers elected
to offset over 92,000
2
tonnes of
CO
2
-e up from over 63,000 tonnes
in the previous year.
The supply of permanent New
Zealand native forestry offsets
is a clear challenge for New
Zealand (and for the future of
Air New Zealand’s FlyNeutral
programme) and we have
encouraged and supported the
biodiversity workstream of the
Aotearoa Circle to produce its
report Native Forests: Resetting
the Balance. The report explores
the opportunities and benefits
that indigenous forestry presents
to New Zealand for carbon
sequestration, biodiversity, soil
health and other ecosystem
services, as well as potential
solutions to encourage more
widespread native afforestation.
Internal
governance
The Board of Directors is ultimately
responsible for our response
to the risks and opportunities
presented by climate-related
issues. Board oversight is through
the Audit and Risk Committee,
which oversees key risks including
climate change. This committee
meets quarterly and updates the
Board following each meeting.
Management has day-to-day
responsibility for identifying and
managing climate-related risks
and opportunities. Climate-related
workstreams are the responsibility
of the full Executive team, the
Executive Climate Committee and
the Sustainability team. For more
information please refer to our
TCFD disclosures contained in
our 2020 Annual Financial Results
available here.
2 Retail customers offset at the time of booking. Where flights have been cancelled due to Covid-19, customers
have been issued credits, including for the value of offsets purchased. This figure includes tonnes of carbon
purchased by retail customers in the year, the value of which was credited back to the customer due to
Covid-19 related cancellations.
3 In 2019, up to four of our most fuel-efficient aircraft, the Boeing 787-9 Dreamliner, were unavailable for use
due to the global Rolls-Royce Trent 1000 engine issues. Air New Zealand leased two Boeing 777-200 and one
Boeing 777-300 aircraft which, depending on flight route and duration, typically used 20 to 26 percent more
fuel than the Dreamliner, resulting in the decline in fuel efficiency this year.
4 In 2020, two of our most fuel-efficient aircraft, the Boeing 787-9 Dreamliner, were unavailable for use due to
the global Rolls Royce Trent 1000 engine issues resulting in less fuel-efficient Boeing 777-200 and Boeing
777-300 aircraft being substituted on routes. Additionally, the impact of Covid-19 on payloads, mandated
social distancing requirements and network changes negatively impacted fuel efficiency.
In 2019, New Zealand Ministry for the Environment released a new set of greenhouse gas emissions
factors for organisational reporting, including for the first time an emissions factor for aviation fuel.
Air New Zealand has adopted this figure to stay consistent with national greenhouse gas inventory
guidance, a process which has included updating our baseline inventory and inventories for financial
years 2016 to 2019. A correction was made to the use of this factor for the 2020 financial year, which has
been implemented for all previous years.
GREENHOUSE GAS INVENTORY
To t a l
operational
emissions
scope
GHG emissions
sources
To n n e s
CO
2
-e 2018
To n n e s
CO
2
-e 2019
To n n e s
CO
2
-e 2020
Scope 1Aviation Fuel,
LPG, Natural
Gas, Ground
Diesel, Ground
Bio Diesel,
Ground Petrol
3,730, 2463,925,6503,176,634
Scope 2Electricity3,0443,0982,832
Totals3,733,2903,928,7483,179,466
Biomass Wood pellets
(CO
2
)
6387251,050
kg CO
2
-e/RTK
Average annual fuel
efficiency improvement
compared to 2009 baseline
FUEL EFFICIENCY: CO
2
- e PER REVENUE TONNE KILOMETRE
1
1 Revenue Tonne Kilometre (RTK) is a measure of the weight that has been paid for on the aircraft (freight and passengers) multiplied by the number of
kilometres transported. Freight values are from Air New Zealand records, and passenger weights are estimated at 100kg per passenger (including checked
and carry-on baggage) as recommended by IATA for generating a fuel efficient target. CO
2
-e emissions are from Air New Zealand’s use of aviation fuel over
the same time periods.
0.73
20172018
0.72
0.93
2009
0.88
2010
0.85
2011
0.81
2012
0.79
2013
0.78
2014
0.76
2015
0.74
20162020
0.75
4
2019
0.73
3
1.8
%
14 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 02 — TACKLING CLIMATE CHANGE & CARBON EMISSIONS

7.4
7.17.0
7.1
1
7.5
2017
201820202016
FLEET AGE IN YEARS (SEAT-WEIGHTED)
2019
TOTAL TONNES CO
2
-e SAVED THROUGH CARBON REDUCTION PROGRAMME
2020
10,557
— Key metrics
1 Excludes the Boeing 777-200 fleet, which has been grounded for an indefinite period.
2018
11,468
2019
15,084
15 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 02 — TACKLING CLIMATE CHANGE & CARBON EMISSIONS

The environment and New Zealand’s unique culture are at the
heart of New Zealand’s tourism proposition and protecting it
therefore remains critical.
Our strong tourism partnerships have been vitally
important as tourism industry players pull together
to face into the challenges of Covid-19. Pre-Covid-19,
great inroads were being made in raising the value
that international visitors provide to New Zealand.
This strategy remains important once international
border restrictions ease. Going forward, the recovery
of the tourism industry from the substantial impact
of Covid-19 must be one of collaboration and with
sustainability’s relevance more front of mind, as
has been foreshadowed through the New Zealand
Tourism Taskforce’s mandate and ongoing work.
From March 2020 we saw international visitor numbers
drop sharply due to global border closures. As a result,
stimulating domestic tourism and maintaining cargo
trade links throughout Covid-19 have been major focus
areas. A key part of this work has been the resumption
of flights to all 20 of the domestic destinations that we
were flying to pre-Covid-19.
– Championing sustainable
tourism & regions
16 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 03 — CHAMPIONING SUSTAINABLE TOURISM & REGIONS

The
importance
of value
over volume
Growing the value of tourism faster
than volumes of travellers has
been a goal of the New Zealand
tourism industry and great
progress was being made towards
this in 2019. Annual expenditure
by international visitors increased
5.2 percent to $17.2 billion, while
international visitor arrivals
increased by 1.3 percent, in the
year ended March 2019
1
.
Pre-Covid-19, tourism export
earnings were also boosted by the
expansion of our international route
network, connecting consumers in
North America, Asia and Australia
directly with New Zealand.
Targeting high-value visitors in large
global markets requires significant
marketing investment, which we
undertook more effectively by
working in partnership with Tourism
New Zealand and other airline and
tourism industry partners.
Continued
partnering
with Tourism
New Zealand
With international borders severely
restricted by the pandemic, our
partnership with Tourism New
Zealand shifted focus to promote
domestic tourism. The “Do
Something New, New Zealand!”
campaign launched in May 2020,
which we supported by promoting
the campaign in Kia Ora magazine,
consumer communications and
retail marketing campaigns.
The campaign encourages New
Zealanders to get out and see their
own backyard, with a particular
emphasis on travelling outside of
the peak holiday periods.
We also continued
our collaboration
with the Department
of Conservation,
Local Government
New Zealand, New
Zealand Maori
Tourism, Tourism
Holdings Limited, Tourism
Industry Aotearoa and Tourism
New Zealand to promote the
Tiaki Promise to domestic and
international visitors. Tiaki means
to care and protect and the Tiaki
Promise guides visitors on how
to travel New Zealand safely and
responsibly. As part of this work, a
summer campaign was launched
in November 2019 with Kiwi kids
asking New Zealanders and
international visitors to care for
New Zealand and act as kaitiaki
for now and for future generations.
As at March 2020, 84 percent of
New Zealanders indicated that the
Tiaki Promise is important to help
inform people how to travel New
Zealand responsibly
2
.
Championing
sustainable
activities
In March 2020 we launched a new
Sustainable Activities Website,
profiling local sustainable tourism
operators committed to making
New Zealand a world-class
sustainable visitor destination.
Over 245 sustainable activities
and attractions, endorsed by
Qualmark, can be explored, and
booked on the website.
Developing
the next
generation
of tourism
leaders
Recognising the key role that
sustainable tourism plays in
enabling prosperity within New
Zealand’s regions coupled with
the need to provide higher
value and skilled employment
opportunities in the tourism
sector, in mid-2019 we established
a strategic partnership with
Queenstown Resort College’s
(QRC) Tai Tokerau Paihia campus.
The goal of the partnership is
to build New Zealand’s tourism
talent pipeline and enable youth
employment pathways, while
developing regional capability for
the tourism sector. In addition to
providing travel support to staff
and students, 45 QRC students
have had the opportunity to visit
Air New Zealand’s Auckland
operations to bring classroom
learning to life and hear stories
about potential career pathways.
To get a sense for study and life
at QRC, 20 Tairāwhiti/Gisborne
students were flown to Tai
Tokerau to attend Experience
QRC – a school holiday initiative
1 Source: Tourism Satellite Account 2019, Statistics New Zealand. 2 Source: Mood of the Nation, March 2020, Tourism Industry Aotearoa and Tourism New Zealand.
airnewzealand.co.nz/sustainable-activities/
Find and book quality, sustainable activities
and attractions, endorsed by Qualmark
17 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 03 — CHAMPIONING SUSTAINABLE TOURISM & REGIONS

for students in their final year of
school. The experience enabled
the group to better understand
what residential tertiary study
entails. Of the 20 students who
attended, nine enrolled in a QRC
programme (seven of these
in Gisborne). In 2020, the first
QRC student also completed
their internship at Air New
Zealand, assuming a variety
of responsibilities, including a
placement in our Brand team, the
Academy of Learning and as an
airport-based Holiday Host.
In November 2019 we partnered
with the National Geographic
Society to run photo camps in
New Zealand communities to
give underserved youth a voice
through photography. National
Geographic photographers
travelled from across the world to
provide guidance and expertise
on photographic storytelling.
The first camp, in Murupara, Bay
of Plenty, involved twenty young
locals spending five days exploring
what it means to be a young Māori
in Aotearoa, and learning how
to use a camera to tell personal
stories. After the camp, the
students presented their photos
and essays to their families,
peers, and local communities.
We intend to conduct further
photo camps in conjunction with
National Geographic once border
restrictions ease.
Maintaining
key cargo links
In 2020 and in response to the
Covid-19 pandemic impacting
global supply chains and transport
networks, our cargo operation
repositioned to a cargo charter
business to enable high-value
export products from regional
producers to continue to reach
key global markets in the absence
of passenger flying. In May, an
International Airfreight Capacity
Scheme commenced with the
Ministry of Transport to add
capacity and maintain key trade
links. The agreement currently
enables more than fifty Air New
Zealand cargo flights per week
to carry Kiwi products (such as
lobster, salmon, flowers, and
meat) to strategic trading ports
in China, the United States of
America, Australia and the Pacific
Islands. To date we have seen 500
flights and 20,000 tonnes of cargo
moved under the scheme, which
has allowed exporters to keep their
position in valuable markets.
The future
of tourism
The New Zealand tourism industry
is demonstrating huge resilience in
managing the impacts of Covid-19
and no international visitors, while at
the same time focusing on building a
more sustainable tourism system for
the future. The impact of Covid-19
has only heightened the complex
issues that long distance travel
creates for the industry, especially
in terms of the related carbon
emissions. These complexities will
need to be untangled and addressed
for New Zealand to continue with a
strong and authentic sustainable
tourism proposition. It has also
highlighted the importance of
domestic tourism as more New
Zealanders are experiencing their
own country. New Zealanders
travelling domestically helps many
tourism businesses, saves jobs and
boosts regional economies. Our
work with Tourism New Zealand
and regional partners to promote
domestic tourism has also helped to
maintain regional air connectivity,
with our domestic network ramping
back up to around 85 percent of
pre-Covid-19 demand.
The strong partnerships we have
developed have been vital in
allowing us to continue to support
and work towards a sustainable
tourism offering and successful
regions. Shared goals create a
shared momentum that will keep
us all moving forward through
challenging times.
18 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 03 — CHAMPIONING SUSTAINABLE TOURISM & REGIONS

SUPPORTING OUR GREAT WALKS
498 threatened species and 42 conservation
dogs relocated including:
FURRY AND FEATHERED
FRIENDS TRANSPORTED FOR DOC
Kiwi
27
Pāteke / Brown Teal
274
Conservation dogs
42
Takahē
23
Native Falcon
4
Kākāpō
26
43,247
OUR LONGSTANDING
RELATIONSHIP WITH DOC
We have played a key role in establishing increased
sustained pest control to:
hectares on six Great Walks (including the Paparoa Track
which opened in November 2019)
Air New Zealand and DOC are working together to bring birdsong
back to our Great Walks, currently covering six key projects.
Abel Tasman
National Park
3,330 hectares of
sustained predator
control covered
1
Heaphy Track
6,421 hectares of
sustained predator
control covered
2
Milford Track
9,344 hectares of
sustained predator
control covered
3
Routeburn Track
8,300 hectares of
sustained predator
control covered
5
Whanganui Journey
64 hectares of
predator control
and 3,700 hectares
of environmental
maintenance covered
6
1
2
3
4
5
6
— Key metrics
Enhancing
conservation
outcomes
with DOC
Our longstanding partnership with
the Department of Conservation
(DOC) has enabled more than
43,000 hectares of sustained pest
control on six of New Zealand’s
iconic Great Walks, including
400 predator control traps being
installed on the Paparoa Track on
the West Coast, which opened in
November 2019. In the past year, an
additional 498 threatened species
were translocated by the airline and
42 conservation dogs flown.
A new
safety video, A Journey to Safety,
was released with an associated
campaign to highlight New
Zealand’s biodiversity crisis and
the need to protect native birds.
The video received more than 27.5
million views globally (the highest
for an Air New Zealand video).
Paparoa Track
12,088 hectares of
sustained predator
control covered
4
19 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 03 — CHAMPIONING SUSTAINABLE TOURISM & REGIONS

In response to Covid-19, our supply chain had to adjust quickly
to the changing demands of the business.
Despite this, our suppliers continue to maintain
sustainable business practices previously agreed
to ensure they remain compliant. As our supplier
base begins to recover, this will allow for future
opportunities to be identified and the furthering of
our sustainability programme in this space. While
Covid-19 has provided obstacles to setting and
achieving refreshed waste targets, Project Green
has continued to deliver waste reduction and
supply chain efficiencies. Reducing single-use
plastics and working with our partners to
expand available recycling and composting
infrastructure remain priorities.
– Strengthening sustainable
supply chains & reducing waste
20 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 04 — STRENGTHENING SUSTAINABLE SUPPLY CHAINS & REDUCING WASTE

Working with
our suppliers
to create a
sustainable
supply chain
Covid-19 has had an unparalleled
impact on Air New Zealand and
our diverse range of suppliers.
The repercussions of border
restrictions and lockdowns on our
operations have had vast flow-
on effects for our highly valued
suppliers. Despite this, suppliers
representing 94.2 percent of Air
New Zealand’s spend
1
have now
provided positive assurance of our
Supplier Code of Conduct. This is
an increase on the previous year
(93.2 percent positive assurance)
but falls short of our original 100
percent target by 2020. Gaining
positive assurance from each of our
suppliers is an intricate process. As
such, we have focused resourcing
on strategic and managed suppliers
(contracted spend over $150,000).
We are currently scoping different
digital tools to provide a more
seamless and comprehensive
assurance process that will support
Air New Zealand in reaching the
100 percent target.
Palm oil identification in the supply
chain continues to be a challenge
due to the many guises palm oil can
have within various products. This
is also hindered by regulation not
requiring more specific labelling.
This has made the process of
identifying palm oil within our
supply chain a labour-intensive
process. Despite these challenges,
one of our caterers, Compass NZ,
was successfully certified as using
100 percent sustainable palm oil in
the past year. To provide ongoing
governance in relation to palm oil,
Air New Zealand’s Palm Oil Position
Statement was refreshed in
December 2019 to include updated
Roundtable on Sustainable
Palm Oil (RSPO) principles for
certification and provide more
robust monitoring and measuring.
To acknowledge the critical role
our suppliers play in palm oil
identification processes, we now
insert contractual obligations
in all catering agreements to
ensure palm oil compliance is
maintained in accordance with the
requirements set by the airline.
Reducing
inflight waste
through
Project Green
Project Green continued to deliver
waste reduction results in 2020.
By reinjecting a range of sealed
and completely untouched inflight
product back onto flights, in FY20
alone, Project Green has saved
11,378,925 units at a weight of 142.7
tonnes of product from going to
landfill and recycled 263 tonnes
of glass. Since Project Green’s
inception, Air New Zealand has
reinjected 435 tonnes of product
back onto flights and recycled
593 tonnes of glass. Combined,
this equates to over 25 A320
aircraft and over 33,701,279 total
units recovered. Project Green
remains operational in Auckland
and Los Angeles and will return
to Christchurch, Wellington, and
Queenstown once these ports
resume international flights. While
we planned to roll out Project
Green in San Francisco, Chicago,
and Houston in 2020, this has not
been possible due to the impact
of Covid-19 on our international
network. We look forward to
expanding the project to other
ports when able.
Resetting
waste targets
To develop robust and ambitious
waste targets, consistent waste
data is required. Unfortunately, due
to our rapidly changing operations
and the corresponding fluctuations
in waste output, the increased use
of non-recyclable PPE, and the loss
of in-house contractor resource
from our waste management
supplier to work with us on
minimising waste, such waste data
was not sufficiently representative.
As such, while we were intending
to have refreshed waste targets
in place, these are still under
development. This will allow time
to obtain more representative
waste data and allow us to carry
out waste audits to ascertain key
waste reduction opportunities.
Despite the new targets still being
set, this has not fundamentally
changed our continued efforts to
reduce waste to landfill, including
current initiatives, such as Project
Green, scoping the transition of
further single-use plastic items
on our flights to more sustainable
alternatives, supporting the
expansion of recycling and
composting infrastructure, and
embedding a waste minimisation
culture throughout Air New
Zealand. These initiatives, along
with the new targets will further
assist us in our drive towards
instilling a circular economy
approach within our supply chain.
1 This excludes fuel and labour and is based on
contestable spend (over $150,000)
21 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 04 — STRENGTHENING SUSTAINABLE SUPPLY CHAINS & REDUCING WASTE

Supporting
local
communities
Due to our substantially reduced
schedule, this year a range
of inflight dry goods in our
warehouses were surplus to
requirements. After working with
suppliers to return as much product
as possible, hundreds of thousands
of products remained that had
limited shelf-life. This provided
a unique opportunity to donate
food products and materials to
local New Zealand communities at
a time when it was most needed
and reduced unnecessary waste
going to landfil.
Investing in
sustainable
property
In 2020, our new distribution centre
at Auckland Airport was awarded
a 5-Star Green Star NZ – Industrial
Design certified design rating. The
Green Star rating demonstrates
New Zealand excellence and
leadership in green building.
To achieve the rating a range of
factors are considered including
energy, water, materials, Indoor
Environment Quality, transport,
land use and ecology, management,
emissions, and innovation.
Particular sustainability highlights
of the new warehouse include
maximising natural ventilation
and lighting, and using harvested
rainwater for toilet flushing and
water-efficient tapware. Given
the long-term nature of built
infrastructure, we recognise the
importance of investing in new
low-impact, sustainable builds to
deliver ongoing efficiencies in our
supply chain.
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SECTION 04 — STRENGTHENING SUSTAINABLE SUPPLY CHAINS
& REDUCING WASTE
22 —

DONATIONS TO LOCAL COMMUNITY PROGRAMMES
inflight blankets to a range of charitable organisations, including
New Zealand Red Cross, SPCA, VisionWest, Foster Hope,
Middlemore Foundation and Kidz First Community Health Service
8,900+
TOTAL WEIGHT OF ITEMS REINJECTED ONTO OUR AIRCRAFT
AS A RESULT OF PROJECT GREEN IN THE 2020 FINANCIAL YEAR
Cookie Time cookies shared with
charities, essential worker groups
and social enterprises
150,000+
dry goods such as muesli, crackers and sauces
redistributed to New Zealand food banks
7 70,000+
To
nne
s
PROJECT GREEN
Project Green has saved 11,378,925 units at a weight of 142.7 tonnes
of product from going to landfill and recycled 263 tonnes of glass
— Key metrics
23 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 04 — STRENGTHENING SUSTAINABLE SUPPLY CHAINS & REDUCING WASTE

05
Ta r g e tBaseline Year201820192020Status
Increase representation of Māori and Pasifika in Management
positions thorough the organisation to 20% by 2022
13% (FY18)13%15.4%17%
Reported rate of injuries
1
reducing by 15% year-on-year
resulting in a rate of less than 10 by end FY20 (against FY17)
Reported rate of injuries of
14.8 (FY17)
Reported rate of injuries of 11.2 and
215 employee injuries (25% decrease
from FY17)
Reported rate of injuries of 10.3 and
179 employee injuries (38% decrease
from FY17)
Reported rate of injuries of 5.1 and 103
employee injuries (64% decrease from FY17)
90% execution of Critical Risk Management (CRM) Plans with
controls tested by end FY20
25% of CRM Plans in place
with controls tested (based
on Critical Risks Gap Analysis)
(FY17)
All critical risks and controls are registered
in the Enterprise Risk Register
All critical risks and controls are registered
in the Enterprise Risk Register
All critical risks and controls were registered
in the Enterprise Risk Register
Risk control improvement plans now being
implemented
Achieve an average Flourishing Scale
2
score of 45 or better
by end FY20 against FY17
Establishing baseline
in FY17
47.047.0N/A
3
N/A
75% employee engagement by end FY20
(The last survey was in 2018)
67% (FY14)71%71% (FY18)
4
N/A
5
N/A
50% Senior Leadership Team (SLT) female by end FY2016% (Jan 2013)39%44%51%
6
70% of our SLT alumni Executive level or Non-Executive Director
or SLT roles in organisations with New Zealand Interests
86%86%75%N/A
7
N/A
Increased proportion of employees who participate in
community programmes
N/A276 employees participated in community
programmes
497 employees participated
in community programmes
Many employees participated in community
programmes in FY20 including volunteering
with the New Zealand Red Cross to pack
parcels for hope and the Department of
Conservation with a pāteke release in the
Arthur Valley. Employees also volunteered with
local food banks and charitable organisations
during Covid-19 alert levels 3 & 4.
Due to Covid-19 and the restrictions
on gathering sizes, the majority of our
volunteering activity was paused in FY20.
Air New Zealanders
1 Based on TRFIR rate: injuries (medical treatment and lost time incidents) x 1,000,000/actual hours worked. 2 The Flourishing Scale is designed to assess an individual’s psychological resources and strengths and their ability to live life with purpose and happiness. 3 Wellbeing
360 survey not conducted due to Covid-19. 4 Your Voice employee engagement survey conducted on bi-annual basis using Aon Global engagement methodology. 5 Your Voice employee engagement survey cycle paused due to Covid-19. 6 This percentage relates to the newly
formed Airline Leadership Team (ALT) which replaced the SLT in the 2020 calendar year. Across all employees, 57.6% identify as a man, 42.4% identify as a woman, and 0.1% identify as gender diverse. 7 Data not able to be obtained due to the impact of Covid-19.
– Sustainability dashboard
& performance metrics
24 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 05 — SUSTAINABILITY DASHBOARD & PERFORMANCE METRICS

Ta r g e tBaseline Year201820192020Status
Impactful projects implemented in East Coast (Tairāwhiti) and
Northland (Te Tai Tokerau) to drive social and economic benefit
N/A• 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
• Ngāti Porou smoked fish on board Tasman
and Pacific Islands flights
• Air New Zealand, in partnership with
Trust Tairāwhiti launched a destination
marketing campaign in February inspiring
Kiwis to visit Tairāwhiti Gisborne. The
‘See Gisborne in a new light’ campaign
showcased visitor experiences in the
region; from spectacular beaches and
cultural experiences to exceptional food
and wine
• The Strategic partnership with Queenstown
Resort College’s Paihia campus to support
youth in regional New Zealand meet their
potential by fostering clear pathways into
study and employment continued and
developed in FY20
• Ngāti Porou smoked fish on board Tasman
and Pacific Islands flights
2

Community activities implemented in every New Zealand
region Air New Zealand flies to (20 ports)
N/A• 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
• The Airpoints for Schools programme
had some travel that was impacted. We
are working with the chosen schools to
reschedule them on their educational travel
• Covid-19 also had a significant impact
on our Koru Care partnership. With no
possibility of offshore travel we had to
cancel offshore Koru Care trips planned
in FY20. We are working to continue our
support in FY21
Full compliance with ICAO noise standards for aircraft fleetN/ANo 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

No notified noise breaches in FY20
Achieved full compliance with ICAO
noise standards
Red Cross supported to respond to all disasters in New Zealand
and the South Pacific
N/ACargo provided support to MFAT,
Red Cross, and UNICEF following 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 and 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
Members of Air New Zealand’s Special
Assistance Team (SAT) were deployed to
assist survivors and their families affected by
the Whakaari White Island eruption.
1 In FY19 target was adapted to focus approach on the East Coast to have maximum impact. 2 Served on flights up until March 2020, as menus had to be simplified due to the impact of Covid-19.
Our Communities
25 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 05 — SUSTAINABILITY DASHBOARD & PERFORMANCE METRICS

Ta r g e tBaseline Year201820192020Status
Increase number of customer journeys offset voluntarilyFY18130,282183,62424 3,132
1.5% average annual improvement in aviation fuel efficiency
(2009-2020)
1
0.93t CO₂-e per revenue
tonne kilometre (FY09)
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)
3.1% degradation compared to FY19
5
18.3% improvement compared to FY09
(1.8% average annual improvement)
Carbon Reduction Programme implemented in line with
IATA audit recommendations
N/AThe Carbon Reduction Programme
saved 3,633,950kg of fuel or 11,468
tCO
2
-e. This is comprised from the
following initiatives: Acceleration altitude
415,936kg fuel (1,310 tCO
2
-e), Ground
Power 2,015,000kg fuel (6,367 tCO
2
-e),
Lightweight LD3 Unit Load Devices
1,128,014kgs fuel (3,553 tCO
2
-e) and
RNP(AR) approaches in Christchurch
75,000kg fuel (237 tCO
2
-e).
The Carbon Reduction Programme saved
4,780,000kg of fuel or 15,084 tCO
2
-e. This
is comprised from the following initiatives:
Acceleration altitude 574,600kg fuel (1,813
tCO
2
-e), Ground Power 2,637,000kg fuel
(8,322 tCO
2
-e), Lightweight LD3 Unit Load
Devices 1,219,000kg fuel (3,847 tCO
2
-e),
RNP(AR) approaches in Christchurch
152,000kg fuel (480 tCO
2
-e), and
197,000kg fuel (622 tCO
2
-e) from
on-board weight reduction.
The Carbon Reduction Programme saved
3,341 t of fuel or 10,557 tCO
2
-e. This is
comprised from the following initiatives:
flight path efficiencies 698t fuel (2,203
tCO
2
-e), Ground Power 2,372t fuel (7,495
tCO
2
-e), Lightweight LD3 Unit Load Devices
155t fuel (490 tCO
2
-e), and 116 t of fuel (366
tCO
2
-e) from on-board weight reduction.
5% annual reduction in electricity use against 2011 baseline56,210,433 kWh (FY11)0% reduction compared to FY17
2
43% reduction compared to FY11
6.5% reduction compared to FY18
46% reduction compared to FY11
3.4% reduction compared to FY19
48.4% reduction compared to FY11
100% electric vehicles in light ground fleet (where feasible)
3

by end FY30
0% (FY15)Complete data for entire light vehicle fleet
not available for 2018
92% Electric Vehicles where feasible
56% of full fleet are Electric Vehicles
85% Electric Vehicles where feasible
(68 of the 80 applicable vehicles)
55% of full fleet are Electric Vehicles
100% electric Ground Service Equipment (where feasible)
3

by end FY23
32% (FY15)51.5%62.1%69.0%
82% diversion from landfill at Auckland ground sites by end
FY19 (zero waste to landfill by end FY20)
4

65% (FY15)73.4%75.0%52.6%
75% diversion from landfill at non-Auckland ground sites by
end FY19
4
71.8% (FY17)68.3%68.2%36.0%
50% international inflight dry waste diverted from landfill at
Auckland by end FY19
49.6% (FY17)46.2%43.0%N/A
6
N/A
50% of domestic jet inflight waste diverted from landfill by
end FY19
4
28.8% (FY17)3 7.1%39.6%12.4%
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 Claim relates to the specific locations/sites that the waste contractor services directly. 5 Predominantly due to the global Rolls Royce Trent 1000 engine issues resulting in less fuel-efficient
aircraft being substituted on routes and the impact of Covid-19 on payloads, mandated social distancing requirements and network changes negatively impacting fuel efficiency. 6 The facility that processes our international inflight dry waste has not been processing this
waste since level 4 lockdown due to the risk of contact with Covid-19. This data is therefore not comparable to previous years.
Carbon
26 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 05 — SUSTAINABILITY DASHBOARD & PERFORMANCE METRICS

Ta r g e tBaseline Year201820192020Status
Support six biodiversity projects with DOC and iwi partners
on New Zealand Great Walks
Projects active on three Great
Walks (Lake Waikaremoana
on hold), species transfer
programme fully supported
(FY16)
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)
1
. 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. Species
transfer programme fully supported.
Maintain zero environmental non-compliancesZero environmental
non-compliances as
at end FY15
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 Regulation).
A compliant above ground tank was
operational by the end of July 2019.
Zero environmental non compliances as at
end FY20.
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 activities
N/AIEnvA stage 2 certification achievedIEnvA stage 2 certification achievedIEnvA stage 2 certification achieved.
In FY20, the scope of the certification
was extended beyond Flight Operations
and Corporate to include national Cargo;
Maintenance Repair Organisations; Ground
Services; and Auckland Airport.
Ta r g e tBaseline Year201820192020Status
Increase proportion of international visitors on Air New Zealand
travelling during shoulder season relative to peak
2
N/A48.4%47. 8%N/A
3
N/A
Promote Tourism New Zealand's Qualmark certification and
certified organisations
N/AAchieved Qualmark Gold Award
Investigating opportunities to promote
Qualmark organisations through Air New
Zealand channels
A project was in development that would
enable Air New Zealand to promote and sell
Qualmark activities
Air New Zealand supported the 100%
Pure Experience Awards that recognised
Qualmark endorsed tourism operators
going above and beyond to create
exceptional experience for visitors and local
communities alike.
A new website; airnewzealand.co.nz/
sustainableactivities, launched in March
2020 to promote activities and attractions
awarded a Qualmark endorsement for
their commitment to quality, safety and
sustainability.
Ta r g e tBaseline Year201820192020Status
100% of suppliers providing positive assurance of our
Supplier Code of Conduct by 2020
0% (FY15) New Code of
Conduct launched
Suppliers representing 93.0% of our spend
4

provided positive assurance
Suppliers representing 93.2% of our spend
4

provided positive assurance
Suppliers representing 94.2% of our spend
4

provided positive assurance
Increase annual volume of New Zealand exports on
Air New Zealand
42,000 tonnes (FY17)41,000 tonnes38,600 tonnes35,045
5
tonnes
1 The Lake Waikaremoana project did not proceed to full development and implementation phase. 2 Inbound shoulder season (April to November) arrivals on Air New Zealand Source: Statistics New Zealand, International Visitors. 3 Due to the impact of Covid-19 this data
was not comparable to previous years. 4 This excludes fuel airport fees, aircraft, taxes, and 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. 5 The cancellation of Air New Zealand’s Shanghai service early in the 2020 calendar year due to Covid-19 in China, significantly impacted on volumes and the ability to move key perishable products to market in China, such as lobsters.

Nature & Science
Tourism
Trade & Enterprise
27 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2020
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SECTION 05 — SUSTAINABILITY DASHBOARD & PERFORMANCE METRICS

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