Cathay Pacific 2005 Annual Report Download - page 39

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Cathay Pacific Airways Limited Annual Report 2005
Developing a business along sustainable lines –
that is, reducing consumption and minimising
waste – makes sound economic sense and can
make a very real difference to the bottom line, so
taking a proactive stance on environmental issues
is an investment in the future of any company.
Transparency and accountability to stakeholders are
not just desirable objectives in their own right, they
are powerful communications and marketing tools,
which can materially affect the way in which a
company is viewed by its customers and investors.
Corporate responsibility to the environment is
therefore all about striking the right balance
between successful business development and
doing the right thing by society and the world
around us.
The rising price of fuel is a major concern for the
aviation industry. In 2005, fuel accounted for 29.3%
of our net operating expenses and our average cost
of fuel into plane increased from US$1.25 per
American gallon in 2004 to US$1.73, so improving
fuel performance per unit of capacity is highly
desirable. We operate one of the youngest
passenger fleets in the world. New aircraft are
powered by engines that are quieter, more
fuel-efficient, and generate lower levels of carbon
dioxide (CO2) and unburned fuel; coupled with
rigorous engine and mainframe maintenance
programmes on older aircraft, these factors have
seen the fuel efficiency of our mainline fleet
improved by 9% per available tonne kilometres
(“ATK”) since 1998.
We expend considerable effort on flight planning,
and so far as is commercially practicable, select
optimal routes to minimise fuel consumption. We
fully endorse global initiatives urging governments
to straighten airways in order to reduce flight times
and unnecessary fuel burn. Close monitoring of fuel
uptake and the application of stringent weight
criteria in aircraft design and when purchasing
aircraft fittings, are part of our ongoing effort to
reduce consumption.
In 2005, we established a task force to focus on
challenges associated with global climate change.
The aviation industry is contributing to climate
change through the emission of CO2, nitrogen oxide
(NOx) and water vapour into the upper atmosphere.
Since 1998, annual CO2 and NOx emissions
generated by Cathay Pacific aircraft have increased
by 32% and 12% respectively, reflecting the
substantial growth of the airline’s fleet. During the
same period, we achieved a decrease in CO2
emissions of 8.7% per ATK, and in NOx emissions
of 22.3% per ATK. We expect to see these figures
improve as advanced new aircraft come on
stream between now and 2010. Cathay Pacific
became a signatory to the Hong Kong Clean
Air Charter in 2005.
We make every effort to instil the guiding principles
of “replace, reduce, reuse and recycle” into every
area of our business. In Hong Kong, we place
significant emphasis on recycling. In our offices we
collect paper, cans, printer cartridges, CDs, plastic
bottles and rechargeable batteries. Inflight our
plastic cutlery is collected for recycling and for
inbound flights newspapers and magazines are
collected and sent for recycling. Following a trial in
2005, aluminium cans and water bottles will also be
collected and sent for recycling. We continue to
investigate waste recycling opportunities at
destinations worldwide, in the context of varying
hygiene regulations in different countries.
We exert considerable influence on our service
providers – a number of whom are Swire group
subsidiaries or associates – to ensure they conform
to the very highest environmental standards. We
conduct environmental audits of our key Hong Kong
service providers to assess regulatory compliance,
waste handling/storage, wastewater disposal, air
emissions and water and energy efficiency. Our
Swire group service providers are planning to
produce their own corporate environmental reports
on a regular basis.
Corporate Responsibility