Air New Zealand releases 2021 Sustainability Report

Sustainability
Report
2021

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 Our new Sustainability
Framework
Sections
09 01
Caring for
New Zealanders
Te manaaki i ngā
tāngata o Aotearoa
12 02
Genuine
climate action
He mahinga
taiao tūturu
18 03
Driving towards
a circular economy
Te whai i te
ōhanga whai hua
21 04
Sustainable
tourism
He Tāpoi Mau Roa
Contents
25 Fundamental metrics
table
CONTENTS 2 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021

Despite the pandemic
grinding our business to
a halt, we believe climate
change is the biggest crisis
facing our airline. And if
anything our commitment to
take action has strengthened.
Throughout the impact of
Covid-19, our people have been
at the frontline, keeping cargo
moving and bringing more than
70,000 New Zealanders home
from overseas in the last year.
There hasn’t been a single day
where an Air New Zealand flight
hasn’t taken to the skies, moving
essential workers and supplies
around Aotearoa and the world.
I’m immensely proud of the Air New
Zealand whānau who have worked
hard to protect themselves, each
other and our customers.
In 2021, the climate crisis has
continued to accelerate, with the
latest climate change report from
the Intergovernmental Panel on
Climate Change giving the starkest
warning yet that the window to limit
global temperature rise to 1.5°C is
narrowing rapidly. We recognise
it has never been more important
for business and government to
work together and take bold steps
to ramp up the pace and scale of
genuine climate action.
This year has seen a renewed
focus on the environmental
impact of flying, and we are acutely
aware that decarbonising aviation
and Air New Zealand will be even
more important when borders
open. This will be key to our
ability to continue to connect
New Zealanders to the world and
play our part in helping Aotearoa
future proof its high-value exports
and tourism sectors.
We’ve been working on a range
of opportunities to achieve our
net zero emissions by 2050
target, with particular focus on
making sustainable aviation fuel
(SAF) a reality in New Zealand
and hastening the arrival of zero
emissions aircraft. It is becoming
increasingly clear that without
readily available access to SAF,
we will not be able to reach our
net zero target.
We are in close discussion with
the New Zealand Government
on this and in July we signed a
Memorandum of Understanding
with the Ministry of Business,
Innovation and Employment
to determine the feasibility of
producing SAF in New Zealand.
SAF can be made using a range
of waste materials and is critical
to decarbonising the airline, in
particular our long-haul flights.
We are actively pursuing
opportunities around electric
and hydrogen aircraft as an option
for shorter domestic and regional
flights, with ambitions to have
electric aircraft in our fleet by
2030. This includes a strategic
partnership with Airbus to explore
the possibility of operating
hydrogen planes on our domestic
network. We are excited by the
opportunities these technologies
present that will allow us to better
serve our customers with low
carbon travel.
To help us deliver on our promise
of taking care further than any
other airline, I’m also delighted to
introduce our new Sustainability
Framework, which this year’s
Sustainability Report is structured
around. The Framework will ensure
we can continue to build on our
strengths to prepare us for what
lies ahead.
It has been fantastic to welcome
Katherine Corich, Sam Mostyn
AO, and Nadine Toe Toe to our
Sustainability Advisory Panel this
year. Katherine, Sam and Nadine
add a wealth of sustainability
knowledge and experience to our
already very talented Panel and
will ensure the Panel continues to
provide that robust critique to drive
our sustainability agenda forward
(see page 8).
As we reflect on 2021 and set our
eyes to the future, I’d like to say a
big thank you to our customers
who continue to challenge us each
day to be our best and hold us
to account on our sustainability
journey. My appreciation also
goes to the Air New Zealand Board
for their continued support and
guidance and to our partners who
are working alongside us to help
achieve our goals.
Ngā mihi
Greg Foran
Air New Zealand
Chief Executive Officer
November 2021
Greg Foran — Air New Zealand
Chief Executive Officer
Letter from the Chief Executive Officer
3 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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LETTER FROM THE CHIEF EXECUTIVE OFFICER

What an extraordinary year
it’s been for Air New Zealand
– with continuing disruption
from Covid-19, significant
commercial pressures,
and rising expectations on
climate change as the year
ended with the massive
climate conference in
Glasgow. Running an airline
in the golden age of aviation
must have been a doddle
by comparison!
For all of us involved in Air New
Zealand’s Sustainability Advisory
Panel (see page 8), it’s obviously
been disappointing not being able
to meet in person. But our online
sessions have allowed us not just
to stay completely up to speed with
what is still an extremely dynamic
agenda, but to continue to provide
the kind of advice and challenge on
which the Panel’s value to our Air
New Zealand colleagues depends.
As the new Sustainability
Framework so succinctly
demonstrates (see page 7), there’s
so much more to an airline’s
overall sustainability obligations
than its response to accelerating
climate change. But the Climate
Emergency now looms so large as
to require the constant attention
of the Board, the CEO and the
whole leadership – as well as the
small team of sustainability and
climate specialists charged with
direct responsibility for driving
things forward.
In that regard, there have been a
number of key developments in
the course of the year which the
Panel has warmly welcomed: the
development of a formal science-
based target for the reduction
of greenhouse gases (still to be
accredited by the Science Based
Targets initiative); a strategic
partnership with Airbus, alongside
extensive engagement with a wide
range of partners in new technology
pathways for aviation; and
continuing support from customers
for FlyNeutral (see pages 12-17).
There are two factors that
differentiate the aviation sector
from all other sectors: first, people
who fly today value the privilege,
and most of those who don’t or
can’t fly today would love to be able
to; second, the route to net zero
carbon aviation, technologically,
is harder than for any other sector.
Pre-Covid, that persuaded a lot of
leaders in the sector to sit back and
refine their greenwash. But those
days are long gone.
All airlines’ social licence to operate
will now become increasingly hard
to earn and increasingly dependent
on actions not on fine words.
And after years of technological
procrastination, the route to Net
Zero for aviation is now fully under
way – with highly significant
competitive issues.
Over the last couple of years, for
instance, interest in sustainable
aviation fuels (SAF) has gone from
a few niche players providing
vanishingly small volumes, to a
rapidly-maturing global industry
enthusiastically signed up to a
target of providing 10 percent of
the volumes required by 2030.
From a few millions of gallons to
many billions – in just eight years.
As a small country at the end of the
world, New Zealand will always be
a price-taker. By 2030, it will be the
big players in the industry who will
be determining that price.
The only way of managing
that risk is for New Zealand to
ensure its own, indigenous SAF
capability – and that means
taking big decisions in a clear and
accountable way over the next
couple of years.
For most people, it may previously
have been a rhetorical flourish
to talk about sustainability as
mission-critical for airlines. Now
it’s for real – as in which airlines will
survive and which won’t.
Sir Jonathon Porritt
Chair of Air New Zealand’s
Sustainability Advisory Panel
November 2021
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 2021
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LETTER FROM THE CHAIR OF THE SUSTAINABILITY ADVISORY PANEL

5 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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About Air New Zealand
It has been a year of contrasts
for Air New Zealand. A robust
domestic network, high-
performing cargo business, and
the Australian and Cook Islands
border re-openings have kept the
business moving. In 2021 we flew
more than 8.6 million customers
and operated 7,191 international
cargo flights, carrying 104,572
tonnes of cargo, including
delivering life-saving medicines
and essential personal protective
equipment to New Zealand and
37,600 tonnes of New Zealand
exports to international markets.
While the impact of border closures
and lockdowns have challenged our
recovery, the pandemic has only
reinforced the critical role that aviation
plays in connecting New Zealand’s trade
and tourism, and has also reinforced the
significant opportunity the airline has
to build back better. Integral to building
back better is the implementation of our
new Sustainability Framework which
is focused on taking bold and genuine
action as we aspire to lead the aviation
industry globally in sustainability and
decarbonisation.
This framework is not just about Air New
Zealand. It’s about future proofing our
key export and tourism industries. It’s
about keeping Kiwis and Kiwi products
connected to the world and it’s about
ensuring that we prosper and remain a
sustainable airline, now and into the future.
social media fans,
up from 3.2m in the
prior year
3
.
3m
domestic network
regions serviced across
New Zealand
20
Airpoints™ members,
up 3.9 percent from the
prior year
3
.
6m
tonnes of New Zealand
exports flown to
international markets
37
,
600
charter flights
including MIQ and
repatriation flights
407
1 The FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong Environmental, Social and Governance (ESG) practices.
Air New Zealand is
a constituent of the
FTSE4Good Index Series¹
FTSE4Good
customers flown

8
.
6m
ABOUT AIR NEW ZEALAND

6 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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2 For more information on our stakeholder engagement, click here.
Our new Sustainability Framework
Framework development
To develop our new framework, we considered feedback from
our ongoing engagement with our stakeholders, including customers,
investors, communities and partners, as well as the following forums:
• Air New Zealand Board of Directors, the
Executive and Airline Leadership Team
• Air New Zealand’s independent
Sustainability Advisory Panel
• Key industry and sustainability bodies²
This provided a foundation for our materiality
assessment and enabled us to consider the
feedback alongside the company’s strategic
priorities, key risks and opportunities, and
competitive environment.
We then interviewed key internal subject
matter experts from across the business,
and asked stakeholders to identify
environmental, social and governance
opportunities and risks related to Air
New Zealand’s operations over the short,
medium and long-term, as well as rate
the extent to which these impacted the
following factors:
• Significance of the issue to stakeholders
• Importance of the issue to
Air New Zealand
• Air New Zealand’s ability to control
and/or influence the issue
The material issues identified through this
consultation process were then shared
with our Sustainability Advisory Panel,
the Executive and the Board for further
consultation as part of Kia Mau, our
company-wide strategy reset in 2020.
Sustainability Framework
The insights gained from this materiality assessment enabled us to
identify the four pillars of our new Sustainability Framework:
• Caring for New Zealanders: Caring for
Air New Zealanders, our customers and
communities, and supporting New Zealand
in its recovery from the pandemic
• Genuine climate action: Setting an interim
science-based target, implementing our
decarbonisation roadmap to step us closer
to our goal of net zero emissions by 2050,
taking customers along with us on the
journey, and supporting biodiversity and
native forestry offsetting
• Driving towards a circular economy:
Designing and procuring with a circular
mindset, reducing single-use plastics,
supporting new recycling infrastructure
and sustainable packaging innovation, and
embedding a waste minimisation culture
• Sustainable tourism: Industry leadership
and collaboration, including in relation
to the Tiaki Promise and Qualmark, and
supporting regional and Māori tourism
OUR NEW SUSTAINABILITY FRAMEWORK

Te whakakaha i te manaakitanga o te tangata, o te hapori, o te motu whānui me te ao hoki
Empowering care of our people, communities, country and planet
Our
priorities
Caring for
New Zealanders
Te manaaki i ngā tāngata o Aotearoa
Genuine
climate action
He mahinga taiao tūturu
Driving towards
a circular economy
Te whai i te ōhanga whai hua
Sustainable
tourism
He Tāpoi Mau Roa
Our focus
areas
• Care for Air New Zealanders
and nurture a diverse, equitable
and inclusive workplace
• Care for our customers
and communities
• Support New Zealand’s social
and economic revival
• Decarbonisation target
and roadmap
• Customer education and
engagement on climate action
• Strong governance and
climate-related disclosures
• Support biodiversity and native
forestry offsetting
• Design and procure with
a circular mindset
• Reduce single-use plastics
• Support new infrastructure
and innovation
• Drive waste minimisation
culture and awareness
• Diversion from landfill
• Sustainable tourism thought
leadership for New Zealand
• Endorse Qualmark
• Embrace Tiaki Promise
and conservation in regions
• Support regional
and Māori tourism
Our
targets
Air New Zealand’s employee
engagement score being in Glint’s
Global Top 20% Engagement Index
1
.
Grow access to and use of employee
assistance support tools (including
Employee Assistance Programme,
Peer Support Network and Bullying
and Harassment Contacts).
Establish a baseline of Air New
Zealand spend with Māori and
Pasifika-owned businesses and social
enterprises by 2022.
Better connecting New Zealand
exporters to the world by increasing
cargo load factors on our widebody
international network to 85%
2
by 2025
(from 67% in 2019).
Set a science-based carbon
reduction target.
Net zero emissions
by 2050.
10% of Air New Zealand’s total fuel
uplift is SAF by 2030.
Removal of 50% of forecasted
single-use plastic items on our
international flights by 2023 from
a 2021 baseline
3
. This amounts to
the removal of over 28 million
forecasted single-use plastic items.
65% of total solid waste diverted
from landfill by 2023
4
.
Increase annual growth in bookings
for Qualmark-awarded operators
on Air New Zealand’s website by
100% by 2023 from a 2021 baseline.
60% of New Zealanders aware of
Tiaki Promise by calendar year 2023
5
.
1. Glint’s Global Top 20% Engagement Index is based on employee
survey results across more than 750 companies surveyed
around the globe and 175 million data points.
2. Based on the volumetric utilisation of available belly capacity
(including passenger bags) unless a 100% gross weight load
factor is achieved sooner.
3. The 2021 baseline value was adjusted to reflect the updated
forecasts for passenger volumes as of May 2020.
4. This target covers Air New Zealand’s domestic ground sites
and airports serviced by our main waste provider.
5. As measured by Air New Zealand’s Insights Tracker that
surveys 400-500 New Zealand travellers each month.
United Nations Sustainable
Development Goals

Sustainability Framework
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Implementation of
the Framework
We have identified key targets
under each pillar to drive
Ambitious Action and hold
ourselves to account.
These pillars and the opportunities that
sit underneath them are deeply
interconnected. For instance, reducing
waste will decrease the greenhouse
gas emissions from sending waste to
landfill, and supporting biodiversity and
native forestry offsetting will further
protect and enhance the environment
that is the centrepiece of New Zealand’s
tourism offering.
Collaboration with Government, industry,
iwi and communities will be vital for us to
deliver on the initiatives contained in our
new Framework.
Key focus areas and targets will be
reviewed and externally reported on
annually to ensure action on Air New
Zealand’s most material issues remains
relevant and has the most significant
positive impact.•
Sustainable
Development Goals
The Sustainable Development
Goals provide a blueprint for a
more sustainable future for all.
We have identified 10 sustainable
development goals that Air New Zealand
has the greatest ability to positively
impact through the four pillars of our
Sustainability Framework.
Governance of Sustainability
at Air New Zealand
The Air New Zealand Board have
the overarching responsibility for
sustainability and has signed off on
significant sustainability targets.
The Board meet with our external
Sustainability Advisory Panel on an
annual basis. In addition to regular
reporting from management to the Board,
more detailed oversight of elements
within the Sustainability Framework is
exercised through the Board’s People
Remuneration & Diversity Committee,
Health, Safety & Security Committee,
and Audit and Risk Committee.
The Sustainability team reports to the
Executive on how we are tracking against
our sustainability strategy each month,
and our progress against key projects
and goals is reviewed through the monthly
Kia Mau executive steering committee.
Sustainability Advisory Panel
Our Sustainability Advisory Panel has
six external members who were selected
based on the range of skills and expertise
we considered necessary to shape and
inform our sustainability agenda. The
panel meets twice a year to independently
advise and challenge all aspects of our
sustainability journey. Panel members
also provide guidance to Air New Zealand
in between these meetings, including
on the ongoing implementation of our
decarbonisation roadmap. Members
of Air New Zealand’s executive team
participate in the Sustainability Advisory
Panel meetings. To find out more
about the panel, including its three new
members that came onboard this year,
click here.
OUR NEW SUSTAINABILITY FRAMEWORK 8 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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He tāngata,
he tāngata,
he tāngata.
People are at the heart of everything
we do and everything we stand for.
With a promise of manaaki, we are
committed to taking care further than
any other airline. This promise extends
from our employees to our customers
and communities.
While we continue to adapt to Covid-19,
our focus is on how we support the
recovery of New Zealand’s economy by
connecting Kiwis with each other and
the world. Growing our cargo business
is key to this, as well as continuing
to support our local suppliers and
communities as they too recover.
Caring for
New Zealanders
9 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 01 — CARING FOR NEW ZEALANDERS

Caring for Air New Zealanders
Supporting our people
Air New Zealanders’ ability to
adapt quickly to change and
support each other and our
customers in times of uncertainty
has been particularly apparent
over the past 20 months. Our
people have worked harder
than ever before and we have
continued to support them with
several wellbeing tools, including
our Wellbeing Hub and the Thrive
mental health app. Financial
assistance has been offered
through the Āwhina Trust¹,
providing hardship grants to
more than 1,585 employees since
its establishment in April 2020.
Health & Safety is our highest priority and
supporting the wellbeing of our people is
central to this. We have recruited and trained
Peer Support volunteers in operational areas
across the business, supported our leaders
to build competency in this space and run a
number of Mental Health, Resilience and QPR
Institute suicide prevention workshops. Our
aim is to grow access to and use of support
tools and resources, including the Employee
Assistance Programme, Peer Support
Network, Wellbeing Check Ins and Bullying
& Harassment Contacts. The utilisation rate
of support tools was 15.6 percent in 2021
2
.
Vaccination against Covid-19 is important.
In addition to the Government-mandated
frontline worker vaccination rollout,
we recently broadened our employee
vaccination requirements in response to the
increased risks posed by the Delta variant.
We have worked closely with our people
and unions to support the vaccination rollout,
making sure all the information we provide
is clear, and inviting vaccination experts
to answer questions. We also created
opportunities for Air New Zealanders and
their whānau to get vaccinated to help ensure
our people and their loved ones are safe.
Our focus on diversity,
equity & inclusion
Our diversity, equity & inclusion
vision is to create an inclusive
environment where our diverse
workforce of Air New Zealanders,
proudly representative of Aotearoa,
can be themselves and thrive.
Our focus is on building and
instilling a culture of manaaki that
flows through to our customers
and communities. Unconscious
Bias workshops, as well as looking
at the language we use, the
behaviours we accept, and the
workspaces we offer, help to lay the
foundations for what we aspire to.
Core to an inclusive environment are our
10 Employee Networks that are led and run
by Air New Zealanders passionate about
providing support and the space for
everyone to be themselves. The Networks
come together regularly to share ideas
and identify opportunities to collaborate,
and are instrumental in the renewals of our
Gender, Rainbow and Accessibility Ticks.
Another focus is how we develop, retain and
attract diverse talent. We have come a long
way in our drive to increase the number of
women in leadership, with more than
50 percent of the Airline Leadership Team
comprised of women. In addition, we are
supporting Māori and Pasifika into leadership
roles, with a target of 20 percent by 2025
(from 16 percent in 2021). We have continued
our Mangōpare leadership development
programme to engage aspiring leaders of
Māori and Pacific Islands descent through
embracing indigenous values.
Listening to our people
In 2021 we introduced our
quarterly Employee Survey to
give us a pulse on how people are
feeling and enable us to focus
our efforts based on feedback
provided by Air New Zealanders.
We have an engagement aspiration
of reaching Glint’s Global Top 20 percent
Engagement Index
3
. Air New Zealand’s
engagement index score as at 1 September
2021 was 71
4
(compared with the Global Top
20 percent benchmark of 79). As we work
towards this target, we have made some
changes to the ways we work, improved
access to senior leaders, and reintroduced
new remuneration and benefits for
Air New Zealanders to acknowledge their
exceptional efforts, including a one-off
$1,000 award of shares or cash.
1 The Āwhina Trust was set up to provide employees with hardship grants, using funds provided through salary sacrifice and donations from employees. 2 The EAP Association guidelines suggest that a utilisation rate over 6 percent is an indication of EAP being used as
a proactive wellbeing service, whereas less than 6 percent indicates it is more reactive. Air New Zealand aims to maintain a utilisation rate of support services above 10 percent. 3 Glint’s Global Top 20 percent Engagement Index is based on survey results across more than
750 companies surveyed around the globe and 175 million data points. 4 This score is out of 100 and based on the responses to two questions in our Employee Survey which is run quarterly on the Glint platform – “How happy are you working at Air New Zealand” and “I would
recommend Air New Zealand as a great place to work”. Responses are measured on a 5-point scale.
Employee networks in operation
1. Pride
2. Manu
3. Enable
4. Women’s
5. Kiwi Asia
6. Ex-Services
7. Yo u n g
professionals
8. Women in Digital
9. WINGs (Women
Inspiring the
Next Generation)
– Pilots
10. W ISE (Women
in Supply Chain,
Engineering &
Maintenance)
SECTION 01 — CARING FOR NEW ZEALANDERS 10 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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11 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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Caring for our communities
Air New Zealand’s wide-reaching
operations allows us to provide
manaaki to every community
we fly to.
As a proud partner of Koru Care 4 New
Zealand for more than 35 years, we’ve helped
make dreams come true for thousands
of children with a range of illnesses and
disabilities. In May 2021, our Little Heroes
flight departed from Christchurch carrying
50 Koru Care kids on a very special flight
path. Many Air New Zealanders and special
guests, The Drax project and All Blacks
Sam Cane and Joe Moody, ensured it was
a magical event that left the kids and their
families on a high.
Air New Zealand also continued to donate
a range of excess goods, like blankets,
pillows, cookies and unbranded uniforms.
In 2021, 720,874 goods were given to a
range of charities, including Women’s
Refuge, to support people and local
communities that have been particularly
hard hit over the last year.
Supporting New Zealand’s recovery
As Air New Zealand recovers it
is vital we support New Zealand’s
recovery more widely.
Throughout the pandemic, our cargo
operations have played an integral role in
ensuring New Zealand exports continue to
reach key international markets, including
37,600 gross tonnes of exports in 2021.
We recognise aviation has an important role
to play in reducing emissions in the freight
supply chain through improving efficiencies,
so are taking steps to reduce the carbon
intensity of our air cargo operations. One
objective is to increase cargo load factors
to 85 percent
1
by 2025. Filling underutilised
belly capacity is one lever available to
reduce our carbon intensity.
Taking suppliers on our sustainability journey
is also a priority. In July we launched our new
supplier management system, Ivalua, to
enhance our procurement capabilities.
The system allows us to capture more
accurate data, enabling us to create more
resilient and sustainable supply chains.
Ivalua will help us establish a clearer
picture of our supplier network and will
be instrumental in meeting our new
target to establish a baseline of Air New
Zealand spend with Māori and Pasifika-
owned businesses and social enterprises
by 2022. This will aid our efforts to
grow partnerships with this sector and
allow these businesses, as well as the
communities they support, to thrive.
To assist us with these endeavours,
we became an Aumatua member
of Amotai in July 2021. Amotai is a
supplier diversity intermediary that is
connecting us with Māori and Pasifika-
owned businesses. We are also a
connect member of Ākina’s Impact
Buyer Programme, a social procurement
programme run by the Ākina Foundation,
an impact development consultancy that
are champions of social enterprise.
1 Our objective to increase cargo load factors to 85 percent is based on the volumetric utilisation of available belly capacity (including passenger bags) unless a 100 percent gross weight load factor is achieved sooner.
SECTION 01 — CARING FOR NEW ZEALANDERS

New Zealand is an island nation
at the bottom of the world, and
air travel keeps us connected
around the globe.
Whether it’s connecting customers with
their families or keeping our trade and
export industry moving, air travel is key
to keeping New Zealand connected.
We acknowledge this means we have
higher greenhouse gas emissions
than many New Zealand companies
and are committed to taking urgent
and ambitious action to decarbonise.
Genuine
climate action
12 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 02 — GENUINE CLIMATE ACTION

Our roadmap to decarbonisation
Our decarbonisation roadmap
identifies four main levers needed
to reach net zero by 2050:
• The use of sustainable aviation
fuel (SAF)
• The operation of zero
emissions aircraft
• Continued investment in our modern
fleet replacement programme
• Improvements in operational
efficiencies (such as through
optimised flight planning)
Significant innovation and close
collaboration between the private
and public sectors will be vital to
dramatically reduce emissions in
less than 30 years.
Even with the full deployment of
available technologies, there is no
known technology mix that can
enable the aviation industry to
reach absolute zero emissions
by 2050. This is why offsetting
remains in our roadmap to address
residual emissions.
Zero emissions
aircraft
Sustainable
aviation fuel (SAF)
Operational
efficiency
Fleet
renewal
Carbon
offsetting
Description
Future hydrogen or battery or
hybrid aircraft technologies
Non-fossil derived jet fuel,
carbon reduction potential of
more than 80%, compatible
with existing aircraft without
modification
Optimising carbon efficiency from
flight and ground operations
Rollover current fleet to new jets
that achieve greater fuel efficiency
1. Purchasing industry-agnostic
carbon credits;
2. Using carbon capture technology
that processes and safely stores
CO₂ underground (~2040-2050)
2050
Decarbonisation
Potential
20% 50% <2% 20%
Residual
Key Initiatives
• Q300 replacement programme
focused on electric or hydrogen
substitute
• Memorandum of Understanding
with Airbus – hydrogen aircraft
technologies
• Memorandum of Understanding
w i t h AT R – battery/hybrid designs
• Partnering with future energy
stakeholders to enable both
battery-electric and green
hydrogen solutions
• Government advocacy and
engagement on key policy,
regulatory, and investment
settings needed to make SAF
a reality in New Zealand
• Member of the SAF Consortium –
joint research and advocacy
on steps to establish domestic
SAF production and a public-
private aviation decarbonisation
advisory body
• Memorandum of Understanding
with the Ministry of Business,
Innovation and Employment
to engage in a process seeking
respondents to demonstrate
the feasibility of establishing
a domestic SAF plant
• Optimising cabin weight to
reduce fuel burn, including
the use of our cost of weight
calculator to inform decisions
• Member of New Southern Sky
Programme considering
airspace efficiencies
• Ground efficiency improvements
through electric ground power
and pre-conditioned air units
• Plan to replace the Boeing 777
fleet with more efficient Boeing
787 aircraft
• Airbus domestic fleet
transitioning to Airbus A321neo
aircraft
• Representation on government
working group to develop
a framework for voluntary
offsetting in New Zealand
Ta r ge t
(2050)
Fleet
renewal
Zero

emissions
aircraft
Operational
efficiency
Sustainable
aviation
fuel
Baseline
(2021)
13 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 02 — GENUINE CLIMATE ACTION

Setting a science-based target
Air New Zealand is committed
to taking genuine climate action.
In addition to our goal of net
zero carbon emissions by 2050,
we are planning to set a science-
based carbon reduction target.
Air New Zealand was a member of the
Science Based Targets initiative’s technical
working group developing the target setting
methodology for aviation and is currently
working through target accreditation.
The target is aligned to a ‘well below 2°C’
pathway and requires an absolute reduction
in carbon emissions, with no provision for
carbon offsets.
To guide us to meet these targets, we have
developed the decarbonisation roadmap
that identifies the technologies and actions
we must adopt to reduce our emissions.
Emissions snapshot
We use a range of carbon metrics in our
internal reporting, strategy formation and
decision making. This includes metrics
related to assessing the impact of gross
carbon emissions, emissions intensity
values and the value of New Zealand’s
carbon compliance obligations. The impact
of Covid-19 has had a significant impact on
Air New Zealand’s operations and network
as well as the key metrics that Air New
Zealand reports on. As a consequence,
it is difficult to meaningfully compare the
key metrics with prior years.
CARBON EMISSIONS DATA
1
201920202021
Scope 1 International Network Emissions (Tonnes of CO₂-e)
2
(Jet Fuel)3,286,502 2,649,922 817,0 78
Scope 1 Domestic Network Emissions (Tonnes of CO₂-e) (Jet Fuel)629,876 518,607 508,737
Scope 1 Other Emissions
3
(Tonnes of CO₂-e)9,273 8,106 7, 3 76
Scope 2 Emissions (Tonnes of CO₂-e) (Electricity)3,098 2,832 2,720
COMMENTARY ON CARBON EMISSIONS DATA
Total Scope 1 and 2 emissions reduced by
58% in 2021. This reduction is due to the
reduction in Scope 1 emissions from the
international network which reduced by
69%, compared to a 2% reduction in Scope 1
emissions from the domestic network.
International Network
61%
Domestic Network
38%
Scope 1 Other and Scope 2
0.6%
Emissions
analysis
C A R B O N I N T E N S I T Y DATA
Carbon intensity data below provides a measure of emissions generated for each kilogram of payload flown.
This is the prominent metric for benchmarking airline carbon intensity. Air New Zealand aims to improve
carbon intensity by reducing emissions and maximising total payload carriage (RTK)
4
.
201920202021
International NetworkGrams of CO₂-e per Revenue Tonne Kilometre (RTK)726747972
Domestic NetworkGrams of CO₂-e per Revenue Tonne Kilometre (RTK)1,0281,1121,168
COMMENTARY ON CARBON INTENSITY DATA
Air New Zealand’s carbon intensity
(measured in gCO₂-e/RTK)
increased 31% compared to 2020.
This increase was largely due to
New Zealand border restrictions
leading to lower than usual load
factors on the international network
and multiple national lockdowns
impacting load factors on the
domestic network.
1 Air New Zealand discloses its emissions within its Greenhouse Gas (GHG) Inventory report, full definitions of emission scopes can be found within that report, extracts from that report are duplicated here within. Deloitte was engaged to provide reasonable assurance over the 2021
GHG Inventory Report. Refer to the reporting and communications page on Air New Zealand’s website for the full GHG Inventory and Assurance Report. 2 Gases included in the carbon dioxide equivalents (CO₂-e) factor are carbon dioxide (CO₂), methane (CH₄) and nitrous oxide (N₂O).
3 Scope 1 other emissions include the combustion of jet fuel from ground operations, LPG, natural gas, diesel, petrol, and wood pellets. 4 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 efficiency target. CO₂-e emissions are from
Air New Zealand’s use of aviation fuel over the same time period.
14 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 02 — GENUINE CLIMATE ACTION

Sustainable aviation fuel
SAF is critical on our pathway to
net zero and is the only current
option for decarbonising long-
haul flights. Made from waste
materials such as used cooking
oils, forestry residues or landfill
waste, SAF has the potential to
reduce carbon emissions by more
than 80 percent compared with
traditional jet fuel.
SAF is known as a ‘drop in’ fuel, providing
direct replacement fuel to fossil jet fuel,
and not requiring different infrastructure
or engine technology. It is safe and proven
– since 2016, more than 300,000 commercial
flights have used SAF.
Currently, there is no SAF supply in
New Zealand, and there is a global SAF
shortage – less than 1 percent of aviation
fuel supplied in the world is SAF. Where it
is available, it is three to five times the
cost of traditional jet fuel.
Air New Zealand has been working on
solving the issue of SAF supply in New
Zealand, including in collaboration with
others in the private sector through
several SAF consortia.
In August this year we announced our
partnership with the Government to
investigate the feasibility of producing SAF
in New Zealand with the hope it will result in
local SAF production in five to seven years’
time. As well as reducing aviation emissions,
domestic production has other economic
and social benefits, including creating
skilled jobs benefiting the regions, enabling
more resilient fuel supply chains (rather
than relying solely on imported fuels), and
utilising waste materials as feedstock, for
example from forestry.
We continue to actively engage in
government consultations on climate
change policy, advocating for additional
research, policies and investment that are
vital to establish a SAF market and reduce
the cost. This includes advocating for a
SAF-specific mandate to stimulate SAF
demand and encourage investment in
SAF production. We are also advocating
for the establishment of a public-private
aviation decarbonisation advisory body
to consider and advise on the right
policy settings to advance SAF (and zero
emissions aircraft) in New Zealand. We
have outlined these and other actions
in our responses to the Climate Change
Commission’s draft advice, and the
Government’s consultations on a pathway
to get transport to net zero by 2050
and a biofuels mandate. In May 2021,
we also shared a SAF White Paper with
the Government that outlined vital and
immediate policy steps to make SAF
a reality in New Zealand.
SECTION 02 — GENUINE CLIMATE ACTION 15 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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(c) Airbus 2020 - All Rights Reserved
Zero emissions aircraft
To truly decarbonise aviation,
we’ll need both SAF and battery-
electric, hybrid-design, and/or
hydrogen-electric aircraft.
Our ambition is to be operating
these zero emissions aircraft on
our regional network from 2030,
or as soon as feasible.
New Zealand has a unique
opportunity to be a world
leader in the adoption of zero
emissions aircraft given the
country’s high percentage of
renewable energy. These aircraft
also have the potential to enable
us to operate new, shorter routes,
increasing connectivity for
regional New Zealand.
To expedite the development of these
aircraft, Air New Zealand has established
several strategic partnerships with
manufacturers of zero emissions aircraft
to deepen our understanding of these
technologies. This includes a Memorandum
of Understanding with aircraft manufacturer,
Airbus, to analyse the impact hydrogen
aircraft may have on our network, operations
and infrastructure.
We are also engaging across the broader
aviation and energy sectors to plan and
prepare for the new renewable energy
and infrastructure requirements of zero
emissions aircraft.
16 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 02 — GENUINE CLIMATE ACTION

Fleet renewal
Air New Zealand has an average fleet age
of 6.7 years¹ making it one of the youngest
and most efficient fleets in the world. This
is due to continued development of our
fleet modernisation and simplification
strategy, including the addition of Airbus
A321neo aircraft to the domestic fleet in
2022, retirement of our Boeing 777-200ER
fleet, phasing out our Boeing 777-300ER
fleet by 2027, and preparing for the future
delivery of the more fuel efficient Boeing
787 Dreamliners powered by new GE next-
generation engines from 2023.
Operational
efficiencies
and airspace
optimisation
Our carbon intensity across the network
increased by 31 percent compared to 2020
(from 789 grams CO₂-e per RTK in 2020 to
1,039 grams CO₂-e per RTK in 2021). This
increase was largely due to New Zealand
border restrictions leading to lower than usual
load factors on the international network and
multiple national lockdowns impacting load
factors on the domestic network.
Our Carbon Reduction Programme has been
running since July 2017 and has delivered
more than 41,600 tonnes of carbon emission
reductions. While carbon reduction initiatives
implemented in prior periods remain
ongoing, the impact of Covid-19 restrictions
and operational constraints have limited our
ability to implement new initiatives in 2021
and our ability to accurately report savings by
initiative. This remains a focus going forward.
FlyNeutral
This year we made some changes to our
offsetting programme, FlyNeutral. Originally,
we sourced half of our FlyNeutral carbon
credits from permanent native forestry
projects in New Zealand. Unfortunately, we
can no longer find enough of these credits
to meet demand. Now when a customer
chooses to offset their flight related
emissions, 100 percent of their carbon is
offset using carbon credits from international
projects that comply with international
best practice. In addition, a customer’s
FlyNeutral contribution directly contributes
to supporting New Zealand’s native
biodiversity through a donation to the Native
Forest Restoration Trust (NFRT). Between
January and 30 June 2021, over $350,000 of
customer funds were donated to the NFRT to
spend on activities that accelerate the
restoration, regeneration, and production of
New Zealand’s permanent native forests. For
more information, see our FlyNeutral video.
Despite the disruption caused by Covid-19,
the number of our retail customers that
voluntarily offset their flight-related carbon
emissions under FlyNeutral remained
stable at 7.0 percent in 2021, compared
to 7.1 percent in 2020. In total, customers
elected to offset over 40,000 tonnes of
CO₂-e in 2021.
Climate-related
risks
Ensuring Air New Zealand has an effective
governance structure and strategy in
place to manage the risks that climate
change presents is a major priority for the
airline. Our 2021 Taskforce for Climate-
Related Financial Disclosures sets out our
climate-related governance, strategy, risk
management, metrics, and targets that
provide the basis by which our airline will
adapt to the changing world that climate
change is already affecting.
Carbon
compliance
Air New Zealand remains 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 2020 calendar year,
our Emissions Trading Scheme obligation
was 412,810 tonnes of CO₂-e, resulting in
a compliance cost of $14.5 million.
With the introduction of auctioning in the
Emissions Trading Scheme, Air New Zealand
continues to advocate for auction proceeds to
be ring fenced to accelerate the development
and deployment of technologies that enable
aviation decarbonisation and provide a suite
of co-benefits to New Zealand.
For emissions generated in international
airspace, we continue to participate in the
Carbon Offset and Reduction Scheme for
International Aviation (CORSIA) requiring
carbon neutral growth from a 2019 baseline
and annual measurement and reporting.
1 On a seat-weighted basis.
17 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 02 — GENUINE CLIMATE ACTION

Driving towards a circular
economy requires sustainability
to be taken into account right
from the design phase.
It requires innovation in sustainable
products and packaging and an
expansion of recycling infrastructure.
Air New Zealand must continue to
build on the work we have already
undertaken to reduce single-use plastic
and divert waste from landfill.
Fundamental to all of this is embedding
a waste minimisation culture so that
every Air New Zealander plays a role in
contributing to this pillar and meeting
our new waste target.
Driving towards
a circular economy
18 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 03 — DRIVING TOWARDS A CIRCULAR ECONOMY

Waste target
With a renewed strategic focus
and greater understanding of
our waste profile, in June 2021 we
set a waste target of 65 percent
diversion from landfill by 2023.
This target covers Air New
Zealand’s domestic ground sites
and airports serviced by our
main waste provider
1
.
At the end of 2021, Air New Zealand was
diverting 41.3 percent of our waste from
landfill. To identify opportunities to divert
further waste from landfill, a range of waste
audits were conducted at our Auckland
sites (including our Auckland Airport
domestic waste dock, engineering, cargo,
and corporate offices). Consultation across
the business and with our waste provider
helped us gain further clarity on the key
actions available to meet this target.
The target is ambitious to drive bold
waste minimisation initiatives while
also recognising the complexities that
arise from our operations, including the
range of locations where we operate and
varying degrees of access to recycling
infrastructure.
Embedding a waste minimisation culture
With over 8,000 employees,
embedding a waste minimisation
culture across the business is
integral to our ability to improve
waste diversion.
In October 2020, Air New Zealand
participated in Recycling Week, with a call
to action to reduce contamination (non-
recyclable waste) in our mixed recycling
bins. We also ran a Plastic Free July
campaign focusing on using reusable coffee
cups and disposing of takeaway coffee
cups correctly. These campaigns prompted
a great conversation between Air New
Zealanders about their recycling habits and
identified future education opportunities to
embed a circular way of thinking.
Covid-19 has provided some challenges in
improving our waste diversion. For example,
the changing operational requirements of
our cabin crew caused by the various
impacts of Covid-19, has limited
opportunities to implement effective
recycling education to further divert inflight
waste from landfill. To reignite effective
recycling habits on our domestic jets, we
ran a targeted campaign with our Airbus
A320 cabin crew to increase the amount
of recycling and compostable material
collected on flights. This resulted in a
substantial increase in mixed recycling and
compostable collections, from 1.4 tonnes
in Q1 of 2021 to 10.3 tonnes in Q4 of 2021.
Waste audits also identified opportunities
to divert more waste from landfill at our
Engineering & Maintenance, and Cargo
sites. A waste culture change project is
planned in these business areas to identify
opportunities for more impactful signage
and education to further encourage
effective recycling practices. The project
aims to identify longer-term wins, such as
improved recycling services and working
with our suppliers to reduce unnecessary
packaging and transition required
packaging to more sustainable alternatives.
1 The target does not include international inflight dry waste. Due to the significant reduction in international flights in 2021, there was not a sufficient baseline to develop a target. This will be reviewed when feasible.
19 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 03 — DRIVING TOWARDS A CIRCULAR ECONOMY

Sustainable design
The majority of a product’s
environmental impact is
determined during product
design. This was front of mind
when Air New Zealand launched
a programme of work to redesign
its international serviceware
offering as part of the wider
Future Aircraft Cabin Experience
(FACE) programme to reimagine
our international inflight offering.
Measurable sustainability objectives,
including reducing single-use plastic and
weight reduction targets were set at the
project’s inception to focus the team’s efforts
on developing more sustainable serviceware.
A range of sustainability factors were then
considered during product evaluation.
This included the impact of the raw materials
used to create the serviceware and the life
cycle carbon emissions produced, including
added weight on our aircraft. As a result,
we are on track to exceed our sustainability
objectives, including removing 28 million
single-use plastic items annually. While
some of the changes being trialled will be
obvious, such as our bagasse (a renewable
plant-based agriculture by-product)
economy casserole dish and cutlery made
from renewable sources, other changes will
be more discrete, such as lighter weight
ceramics in our premium cabins. We look
forward to launching these products on
our flights next year. To find out more about
the serviceware trials, click here.
The key learnings gained from the
serviceware redesign will be a valuable
resource as we continue to partner with
sustainable and innovative suppliers to meet
our circular economy objectives.
Project Green delivers again
Project Green, an initiative that
reinjects a range of sealed and
untouched products back onto
flights and recycles a substantial
amount of glass, continues to
be a key tool to divert waste
from landfill.
Since Project Green’s inception in 2017,
we have diverted 1,103 tonnes of reinjected
product and recycled glass from landfill,
the equivalent to the weight of over 26
Airbus A320 aircraft. In 2021, Project Green
volumes were impacted by our reduced
international network, however, 2,515,420
units (57 tonnes) of products like cookies
and boxes of tea were still diverted from
landfill, and 22 tonnes of glass was recycled.
Plans to return Project Green to our major
domestic ports and expand it further in
America were paused in 2021 due to the
continuing impact of Covid-19. We look
forward to expanding Project Green further
when feasible.
20 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 03 — DRIVING TOWARDS A CIRCULAR ECONOMY

21 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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While supporting the economic
wellbeing of tourism has
been a priority this year, our
commitment to sustainable
tourism remains firm.
Through our partnerships with Tourism
New Zealand, Qualmark, Queenstown
Resort College, the Department of
Conservation, our collaboration with
New Zealand Māori Tourism, and
our support for Tiaki – Care for New
Zealand, positioning tourism to thrive
and build back sustainably when
international borders reopen is
a priority for Air New Zealand.
The continuing uncertainty caused by
Covid-19 has tested the New Zealand
tourism industry like never before.
Sustainable
tourism
SECTION 04 — SUSTAINABLE TOURISM

1 As measured by Air New Zealand’s Insights Tracker that surveys 400-500 New Zealand travellers each month.
Sharing the Tiaki Promise
As one of the founding organisations
of Tiaki – Care for New Zealand,
Air New Zealand participates in the
Tiaki Governance Group, which over
the last year developed a new strategy
with an increased focus on educating
New Zealanders on the Tiaki Promise.
The Tiaki Promise promotes
responsible and safe travel
behaviour and actively encourages
(international and domestic)
visitors to experience New Zealand
in a way that keeps everyone safe,
protects our environment, respects
our culture and protects the
country for future generations.
Air New Zealand has promoted
the Tiaki Promise on a range of
channels in 2021, including on our
domestic inflight entertainment,
billboards, Kia Ora magazine, and
social media channels.
To advance our endeavours and
further promote the Tiaki Promise,
we’ve set a target of having 60
percent of New Zealanders aware
of the Tiaki Promise by calendar
year 2023 (from a baseline of
26 percent in June 2021)
1
.
The closure of New Zealand’s border for international
visitors until the trans-Tasman bubble opened in April
2021, only to close again in June, meant a sudden and
significant loss of revenue for tourism businesses
across the country.
Air New Zealand moved quickly to rebuild domestic
capacity providing a critical pipeline for domestic
tourism to support both businesses and communities
reliant on tourism.
In partnership with Tourism New Zealand and
regional tourism operators, we invested in
marketing campaigns to encourage Kiwis to explore
the incredible destinations and unique attractions
across Aotearoa, New Zealand.
SECTION 04 — SUSTAINABLE TOURISM 22 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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Championing sustainable
tourism businesses
To celebrate the businesses contributing to Aotearoa
becoming a world-class sustainable visitor destination,
Tourism New Zealand and Air New Zealand support
the Qualmark 100 percent Pure New Zealand Experience
Awards, launched in 2019.
This year’s winners were selected
by a judging panel that included
Air New Zealand Sustainability
Advisory Panel member Dr
Susanne Becken, and Air New
Zealand’s Head of Sustainability,
Meagan Schloeffel. The 12 diverse
winners were chosen for offering
world-class experiences which
apply sustainability best practices
through looking after the people
and the land.
Air New Zealand’s domestic
marketing campaigns have
stimulated leisure demand by
encouraging Kiwis to explore the
country. Our retail campaigns
have promoted fares to regional
destinations, and we have
undertaken partnership activity
with Auckland Unlimited, Dunedin
Airport, Destination Rotorua,
Destination Marlborough,
Destination Queenstown,
Nelson Airport, Northland Inc.,
Trust Tairāwhiti, Wellington
Regional Destination Agency
and Venture Taranaki.
To further champion sustainable
businesses, Air New Zealand’s
website now features more than
360 Qualmark-awarded sustainable
activities and attractions. Our aim
is to increase annual growth in
bookings for Qualmark-awarded
operators on our website by 100
percent in 2023 from a 2021
baseline. Integral to meeting this
target is our ambition to only list
operators on the website that have
achieved Qualmark endorsement
by 31 March 2022.
Developing
tourism talent
Our partnership with Queenstown Resort College (QRC),
established in 2019, has continued to strengthen this
year and focuses on encouraging New Zealanders into
a career in tourism.
We have shared learnings and
resources with QRC, including
our Mental Health and Wellbeing
Strategy, promoted QRC in features
in our Kia Ora magazine, and
continued to support QRC staff and
students to stay connected through
our travel fund. Air New Zealand
Chief Executive Officer Greg Foran
also presented the Air New Zealand
& QRC Pūmanawa Award (including
a $1,000 Air New Zealand travel
voucher) at the QRC graduation
in December 2020. The award
recognises hard work, resilience,
integrity and being yourself.
When New Zealand reopens its
borders to international tourists,
it’s critical the tourism industry is
prepared. Central to this is having
a sufficient talent base as the
industry rebuilds. To assist with
building this talent pipeline, Air
New Zealand’s partnership with
QRC will continue to promote the
tourism industry as an exciting
and sustainable sector offering
a variety of career options.
SECTION 04 — SUSTAINABLE TOURISMAIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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23 —

Conserving nature through
our partnership with DOC
Air New Zealand’s longstanding partnership with the
Department of Conservation (DOC) has continued to
soar this year.
In 2021, the airline relocated
more than 600 threatened
species, and 73 conservation
dogs were flown, representing a
record number of transfers since
the partnership’s inception. The
translocation of 15 takahē to
their new home on the Heaphy
Track was a particular highlight.
Air New Zealand’s partnership
support has enabled 45,294
hectares of sustained pest control
alongside six of New Zealand’s
Great Walks. This includes an
additional 41 new predator control
traps installed on the Routeburn
Track, increasing Air New Zealand
funded predator control to 10,347
hectares (up from 8,300 hectares
in 2020).
The Greenteam, our internal team of
conservationists, has also supported
the Department of Conservation
with seabird counting at Kāpiti Island
and tree planting in the Te Waihora
wetlands in Canterbury.
Sustainable safety showcasing
domestic tourism
To inspire and support domestic tourism, Air New
Zealand collaborated with Tourism New Zealand to
release Aotearoa, the 8th Wonder of the World safety
video in December 2020.
A Department of Conservation staff
member (and former Threatened
Species Ambassador) featured in
the video to promote Tāne Mahuta
and to acknowledge DOC’s role
within New Zealand destinations.
In addition, A Journey to Safety
came back on board earlier this year,
highlighting the need to protect our
native taonga. Combined, these
videos received more than 15.4
million views globally in 2021.
24 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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SECTION 04 — SUSTAINABLE TOURISM

PriorityMetric201920202021
Caring for
New Zealanders
Te manaaki i ngā tāngata
o Aotearoa
Representation of Māori and Pasifika
in people leadership positions¹
throughout the organisation
15.4%17.0%16.0%
Employee engagement71 (2018)²N/A³Engagement index score of 71
(September 2021)⁴
Women in Airline Leadership Team
( A LT )
44.0%⁵51.0%⁶51.0%⁷
People Safety Risk Control
Effectiveness (RCE) rating of
substantially or fully effective⁸
N/A⁹N/A⁹84.0%¹⁰
Environmental non-compliancesOne 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 2020
Zero environmental non-compliances
as at end 2021
IEnvA stage 2 certification via IATAIEnvA stage 2 certification achievedIEnvA stage 2 certification achieved. In 2020, the
scope of the certification was extended beyond Flight
Operations and Corporate to include national Cargo;
Maintenance Repair Organisations; Ground Services;
and Auckland Airport
IEnvA stage 2 certification achieved. In 2021, the scope
of the certification was extended to include all New
Zealand airports along with Flight Operations and
national Corporate, Maintenance Repair Organisations
and Cargo operations
Suppliers providing positive
assurance of our Supplier Code of
Conduct¹¹
Suppliers representing 93.2% of our spend provided
positive assurance
Suppliers representing 94.2% of our spend provided
positive assurance
Suppliers representing 92.7%¹² of our spend provided
positive assurance
Annual volume of New Zealand
exports on Air New Zealand
38,600 tonnes35,045¹³ tonnes37,600 tonnes
Full compliance with ICAO noise
standards for aircraft fleet
No notified noise breaches in 2019. Achieved full
compliance with ICAO noise standards
No notified noise breaches in 2020. Achieved full
compliance with ICAO noise standards
No notified noise breaches in 2021. Achieved full
compliance with ICAO noise standards
1 A people leadership position includes any position in the airline which has employees reporting into it. Data is based on ethnicity data collected via our people management system Workday. This is an optional data field and coverage is currently 56.0%. We continue to
encourage employees to complete this data to inform our strategies and programmes. 2 Based on Your Voice employee engagement survey conducted on a bi-annual basis using Aon Global engagement methodology. 3 Your Voice employee engagement survey cycle paused
due to Covid-19. 4 A new quarterly employee survey was introduced in 2021. As at 1 September 2021, the Glint Global Top 20% engagement threshold was an engagement index score of 79. 5 This percentage relates to the Senior Leadership Team (SLT) which was replaced
by the Airline Leadership Team (ALT) in calendar year 2020. 6 Across all employees, 57.6% identify as a man, 42.4% identify as a woman, and 0.1% identify as gender diverse. 7 Across all employees, 60.5% identify as a man, 39.2% identify as a woman, and 0.1% identify as gender
diverse, with 0.2% unspecified. 8 Risk Control Effectiveness (RCE) review and verification is part of the company risk management process and is a framework being implemented to give depth to the risk declarations. The RCE scale ratings are totally ineffective, largely ineffective,
partially effective, substantially effective, and fully effective. 9 In 2019 and 2020 we were developing this new rating tool and the key metrics that underlie it. 10 The remaining 16.0% of People Safety Risk Controls are rated partially effective (the minimum for compliance). 11 Based on
percentage of spend. 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.

12 A decrease of 1.5% from 2020 result, mainly due to Covid-19’s impact on Air New Zealand’s spend profile with its strategic suppliers. 13 The cancellation of Air New Zealand’s Shanghai service early in calendar year 2020 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.
Fundamental metrics table
Our new Sustainability Framework outlined in this report has key
headline targets that we will be reporting on. In addition to those targets,
the following fundamental metrics, which detail Air New Zealand’s
impact, are also tracked.
25 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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FUNDAMENTAL METRICS TABLE

PriorityMetric201920202021
Genuine
climate action
He mahinga taiao tūturu
Tonnes of CO₂-e Emissions
(Scope 1 and 2)
3,928,7493,179,4671,335,911
Average annual reduction in carbon
intensity¹⁴
2.4% increase compared to 20183.6% increase compared to 2019¹⁵31.6% increase compared to 2020¹⁶
Carbon Reduction Programme
implemented in line with IATA audit
recommendations
The Carbon Reduction Programme saved 4,780,000kg
of fuel or 15,084 tCO₂-e. This is comprised from the
following initiatives: Acceleration altitude 574,600kg
fuel (1,813 tCO₂-e), Ground Power 2,637,000kg fuel
(8,322 tCO₂-e), Lightweight LD3 Unit Load Devices
1,219,000kg fuel (3,847 tCO₂-e), RNP(AR) approaches in
Christchurch 152,000kg fuel (480 tCO₂-e), and 197,000kg
fuel (622 tCO₂-e) from on-board weight reduction
The Carbon Reduction Programme saved 3,341t of fuel
or 10,557 tCO₂-e. This is comprised from the following
initiatives: flight path efficiencies 698t fuel (2,203
tCO₂-e), Ground Power 2,372t fuel (7,495 tCO₂-e),
Lightweight LD3 Unit Load Devices 155t fuel (490
tCO₂-e), and 116t of fuel (366 tCO₂-e) from on-board
weight reduction
While carbon reduction initiatives implemented in
prior periods remain ongoing, the impact of Covid-19
restrictions and operational constraints have limited
our ability to implement new initiatives in 2021 and
our ability to accurately report savings by initiative.
This remains a focus going forward
Tonnes of carbon offset through
FlyNeutral
63,97192,3394 0,74 9
FlyNeutral uptake rate¹⁷ 4.6%7.1%7.0%
Customer funds donated to activities
that accelerate the restoration,
regeneration, and production of
permanent native forests
N/AN/AOver $350,000¹⁸
Reduction in electricity use6.5% reduction compared to 20183.4% reduction compared to 20197.4% reduction compared to 2020
Electric vehicles in light ground fleet
(where feasible)¹⁹
92.0% Electric Vehicles where feasible
56.0% of full fleet are Electric Vehicles
85.0% Electric Vehicles where feasible
55.0% of full fleet are Electric Vehicles
86.0% Electric Vehicles where feasible
55.0% of full fleet are Electric Vehicles
Electric Ground Service Equipment
fleet (where feasible)¹⁹
62.1%69.0%73.0%
Driving towards
a circular economy
Te whai i te ōhanga whai hua
Diversion of waste from landfill at
domestic ground sites and airports
serviced by our main waste provider
N/A²⁰40.6%41.3%
Sustainable
Tourism
He Tāpoi Mau Roa
Sustained pest control enabled
on the Great Walks through
partnership with the Department
of Conservation
31,793 hec tare s43,247 hectares45,294 hectares
Enabling regional connectivity
through flight departures that connect
Auckland/Wellington/Christchurch
to regional centres
119,27996,47996,247
14 Percentage change has been updated from the 2020 Sustainability Report to reflect updated reporting policies. 15 Increase in carbon intensity 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. 16 Increase in carbon intensity largely due to New Zealand border restrictions leading to lower than usual load factors on the
international network and multiple national lockdowns impacting load factors on the domestic network. 17 Number of bookings partially or fully offset as a percentage of all bookings through online storefronts where FlyNeutral is available. 18 This represents funds collected from
20 January 2021 to 30 June 2021 under the amended FlyNeutral programme. 19 Where feasible refers to availability of electric models for operational requirements. 20 Air New Zealand transitioned to a new waste provider over the course of 2019.
26 —AIR NEW ZEALAND SUSTAINABILITY REPORT 2021
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FUNDAMENTAL METRICS TABLE

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