South Pole Group Carbon Offsetting Scenario Simulation Thomas Schroder Director Marketing & Communications
South Pole Group Page 2 Agenda Recommended Best Practices for Carbon Offsetting 02 Some Aviation Sector Examples 11 Introducing the Group Exercise 19 Presentation of the results 20 Appendix and FAQs 21
South Pole Group Page 3 Some Aviation Sector Examples
South Pole Group Trends in Airlines Carbon Offsetting Page 4 Launch date of offsetting scheme British Airways, SAS Malaysia, Air New Zealand, Atlas Blue, Jet Blue, Copa Airlines, NatureAir, Austrian Airlines Flights within EEA covered by ETS Kenya Airways, South African Airways Mango, Sri Lankan Airlines LATAM (corporates) 2005-2006 2008 2012 2015 2007 2009 2013 Virgin Australlia Delta, Lufthansa-Swiss AirPlus, TUI Travel, Qantas, Jetstar, Easyjet, Continental AirFrance-KLM Cathay Pacific Dragon Air Virgin America, TAP Thai Airways United, Japan Airlines United (corporate), Delta (carbon neutral growth) Source: South Pole Group, 2016
South Pole Group Page 5 A Leader, Aiming High Qantas Fly Carbon Neutral programme Fuel efficient fleet, facilitated the Sustainable Aviation Fuel industry in Australia, and engaged in aircraft weight reduction initiatives. In addition, 2.5 million tonnes of carbon emissions have been offset since 2007 Fly Carbon Neutral programme focuses on climate change mitigation, protection of wildlife and nourishing communities. Offer brazil nuts to enhance funding to the offset project and providing Qantas passengers with a sustainable snack
South Pole Group Page 6 Align offsetting with strategic priorities LATAM s sustainability program Stated goal to be A leader and worldwide reference in climate change A focus on environmental management system; risk management; eco-efficiency; sustainable alternative energy; internal capacity development; transparency; value chain; emission offsets; communications Offsets ground emissions in pursuit of carbon neutrality Air New Zealand s carbon offset programme New Zealand Emissions Trading Scheme (ETS) offsetting domestic flights Option for passengers to also offset as part of booking process Projects protecting New Zealand s native forestry projects
South Pole Group Page 7 Align offsetting with strategic priorities Cathay Pacific s FLY greener programme FLY Greener Programme offsets staff business travel, carriage of passengers, and selected ground activities Passengers can easily calculate emissions The offset projects make a contribution in regions where Cathay Pacific has operations KLM s CO2ZERO Programme 20% reduction in its CO 2 emissions per passenger by the year of 2020 Strong focus on market for sustainable biofuels, and also involving passengers in offsetting emissions Preference for Gold Standard Projects
South Pole Group Page 8 Align offsetting with strategic priorities Virgin America s offsetting program Option for passengers to offset the carbon footprint of their flights on the inflight entertainment system Offset HQ carbon footprint Scandinavian Airlines Convention Program Priority to target organizers of international conferences and events Give a range of options for the organizer to choose from
South Pole Group Page 9 IATA Carbon Offset Program Some IATA s members such as Thai Airways and South African Airways purchase via IATA Includes a Carbon Calculator methodology Offset supplier, Climate Care, provides high quality carbon credits IATA assists airlines with the implementation Offers a portfolio of offset projects with: large geographical coverage social and economic benefits for local communities.
South Pole Group Page 10 RecommendedCheck List of Best Practices in Carbon Offsetting.
South Pole Group Page 11 Good practices checklist 1. Decide on focus and approach 2. Establish suitable criteria that reflect priorities and requirements 3. Plan to communicate externally and internally 4. Get ready to answer challenging questions 5. Select a reliable, valuable and reputable solutions provider / supplier
South Pole Group Page 12 1. Decide on focus and approach What is the purpose? (e.g. compliance vs. voluntary) What is the objective? (e.g. offsetting own emissions, industry growth emissions, EU ETS compliance, as a client service offering, etc.)
South Pole Group Page 13 2. Establish criteria that reflect your priorities Make a decision on: Standard Type Project location Additional (social) benefits Trends across all sectors: Most used standard: 37% VCS, 12% VCS-CCB, 20% CAR, 19% Gold Standard, 12% other Wind is most popular project type (25%) Major project locations: US, India, Indonesia, Turkey, Kenya and Brazil Source: Ecosystem Marketplace 2016
South Pole Group Page 14 3. Plan to communicate externally and internally
South Pole Group Page 15 4. Get ready to answer challenging questions Offsetting is greenwashing by an industry that must stop growing - Compensating unavoidable emissions makes a difference that would not otherwise occur. - Moreover, it is an addition to other activities in a basket of measures, e.g. technology, operational measures (e.g. route optimisation), and sustainable biofuels. Do the emission reduction projects really have a positive impact? - Yes. Verification and certification procedures ensure additionality, sound practice and measure positive social impacts. Carbon projects can actually be bad for the environment - Certain forestry and large hydro projects are controversial because they have been harmful to local ecosystems. Supporting different project types with high quality standards is therefore advisable.
South Pole Group Page 16 5. Select a reliable partner and supplier Check the reputation, service, track record and size of the supplier Review other useful solutions and services that a partner can offer Consider a long term supplier agreement, to reduce transaction costs Run a tender process to engage in competitive bids
South Pole Group Page 17 Benefits of pre-compliance to CORSIA Take action to reduce the amount of CO2 in the atmosphere and fight climate change Gain experience with carbon markets and providers Benefit from better deals and risk awareness / management Differentiation from competitors and demonstrating climate leadership
South Pole Group Page 18 Introducing the Group Exercise
South Pole Group Page 19 Presentation of the results