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SUSTAINABILITY Sustainability Statement

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SUSTAINABILITY Sustainability Statement SUSTAINABILITY Sustainability Statement ..........................................................................................156 Materiality Analysis ...............................................................................................158 Safety & Health ...................................................................................................... 160 SUSTAINABILITY Stakeholder Engagement ...................................................................................163 Talent Attraction & Retention ...........................................................................170 Operational Efficiency ......................................................................................... 173 Service Efficiency .................................................................................................. 174 Energy Consumption & Fuel Management .................................................. 175 Risk & Crisis Management ..................................................................................179 [156 ] AirAsia Group Berhad SUSTAINABILITY SUSTAINABILITY STATEMENT IN MALAYSIA, WE ARE THE LEADING AIRLINE, DOMINATING ALMOST HALF THE DOMESTIC AND INTERNATIONAL MARKETS. AND WE ARE STILL GROWING. SUSTAINABILITY AirAsia Group Berhad [157 ] [158 ] AirAsia Group Berhad SUSTAINABILITY SUSTAINABILITY STATEMENT Following the completion of the internal leading airline, dominating almost half the While we disclose our financial reorganisation of AirAsia Berhad (AAB) and domestic and international markets. And performance in the rest of this annual the transfer of its listing status to AirAsia we are still growing. While other airlines in report, we describe our actions to create Group Berhad (AAGB) on 16 April 2018, the region were reducing capacity in 2017, stakeholder value in the following pages AAB is now a wholly-owned subsidiary we saw the delivery of seven aircraft as we of this Sustainability Statement. By of AAGB. This Sustainability Statement expanded our route network. creating stakeholder value, we mean represents AAB’s initiatives and materiality investing into areas that are important matrix for the financial year ended 31 Our ongoing success hinges on two to our guests, our Allstars, our investors, December 2017 (the Financial Year), which key factors: staying true to our low- business partners, the government and will be adopted by AAGB in the next cost business model; and truly valuing the public. financial year. people. The former has provided us the financial strength to grow even in less We have always had a good idea as to As part of the One AirAsia initiative, we are than optimum economic conditions, while what is important to our guests – from committed to reducing costs further, while the latter underlines our commitment to feedback obtained through various improving efficiencies across the board. operating safely, responsibly and with communication channels, as well as Apart from the impact on costs and greater integrity, and has gained us the trust of from face-to-face interactions. In 2016, revenue generation, this initiative also puts our stakeholders. Our One AirAsia drive we obtained similar insight for other in place the long-term sustainability of the is adding to our efforts, providing greater stakeholders by conducting our first business as well as ensures an effective career opportunities to our own people, ie materiality assessment. Through a succession planning in the long run. our Allstars. structured process of workshops, surveys and interviews, we were able to determine AAB was founded to enable everyone Both keeping our costs low and those issues that are important both to to fly. In the 16 years that we have been strengthening our relationships are AAB as well as to all our stakeholders, building skybridges across Asia, we have equally important to our sustainability, and to prioritise these according to their carried more than 466.7 million guests and will continue to underpin all our impact. across the Group1. In Malaysia, we are the actions and decisions. AIRASIA’S MATERIALITY MATRIX Materiality refers to issues that reflect an organisations’ most significant economic, environmental and social impacts (X-axis), and the concern of stakehoolders (Y-axis). Quadrants 1, 2 and 3 are prioritised issues, which we report on. Transparency Responsible Marketing Service Efficiency Health & Safety and Communication 4 Human Rights 3 1 Stakeholder Engagement Environmental Management Talent Attraction Operational & Retention Efficiency Training and Education Energy Consumption & Fuel Management Labour Practice/ 7 Effluents and Waste 5 Management Relations GHG Emissions 2 Risk & Crisis Management Competitive Behaviour Fleet Management Concern to Stakeholders to Concern 9 8 6 Impact on the Company Legend: Priority issues Economic Environmental Social 1 By “the Group” we refer to AirAsia Malaysia, AirAsia Indonesia, AirAsia Philippines, AirAsia Thailand, AirAsia India, AirAsia Japan, AirAsia X Malaysia, AirAsia X Thailand and AirAsia X Indonesia. Although the Group’s total fleet size stood at 205, this included three aircraft on lease to third parties, six that were grounded for redeployment to other affiliates in 1Q18 and eight operated by AirAsia X Indonesia. SUSTAINABILITY AirAsia Group Berhad [159 ] Seven issues were highlighted through We focused on these seven material Two other key developments in our this materiality assessment, namely: matters in our Sustainability Statement sustainability practice have been the • Safety & Health in 2016, and are reporting on them again establishment of a dedicated team to • Stakeholder Engagement in this report, highlighting progress made manage issues related to the environment, • Talent Attraction & Retention in each area. In certain material matters, and formalisation of a sustainability • Operational Efficiency such as carbon emissions, we have governance structure. The head of the • Service Efficiency improved our data collection and have newly-established Green & Environmental • Energy Consumption & Fuel been able to increase the scope of our Affairs Department will also oversee our Management reporting. corporate sustainability, and will be part • Risk & Crisis Management of a newly set up Sustainability Working Committee for the AirAsia Group. Board of Directors Nomination and Audit Safety Review Remuneration Committee Board Committee Sustainability Working Committee Committee Chair* Executive Director OTHER SUPPORTING GROUP HEAD, GROUP HEAD, GROUP HEAD, GROUP HEAD, CHIEF OPERATING FUNCTIONS: CUSTOMER GLOBAL AFFAIRS Risk Management PEOPLE & CULTURE COMMUNICATIONS OFFICER HAPPINESS & DEVELOPMENT Investor Relations Commercial Branding SUB-COMMITTEE 1 ENVIRONMENTAL COMMITTEE SUB-COMMITTEE 2 CORSIA COMMITTEE * The position of the Committee Chair will always be held by an Executive Director of AirAsia Berhad [160 ] AirAsia Group Berhad SUSTAINABILITY SUSTAINABILITY STATEMENT The Sustainability Committee, chaired by considerable resources to keep enhancing clear lines of individual and collective Tan Sri (Dr) Tony Fernandes, will report our safety frameworks, recognising responsibility and accountability. twice a year to the Board, while a Working that maintaining the highest standards Continuous training is provided to Committee comprising Group Heads of of safety is necessarily an ongoing ensure all Allstars understand our safety Departments will ensure all our material mission. We take a vigilant, proactive processes and are able to carry out areas are taken into consideration in our and systematic approach to protect the their functions safely. To reinforce our business plans and strategies. Through Group against a range of risks and strive commitment to maintaining the highest this governance structure, sustainability for continuous improvement in our safety levels of safety, we encourage constant will be integrated more formally into practices and performance. conversations on safety behaviours. Our our operations and risk assessment objective is for every individual in AirAsia processes. Clear key performance Safety Management System (SMS) Malaysia to contribute to the safety of indicators (KPIs), targets and goals will be every aspect of our operations, on ground set in 2018, and reported in the future. Safety at AirAsia Malaysia is reinforced and in the air. by a robust Safety Management System Scope of Statement (SMS) which ensures systematic hazard Departmental level engagement and risk management in line with the with internal safety champions was This Sustainability Statement covers requirements of the International Civil significantly enhanced during the year the sustainability initiatives of AirAsia Aviation Organization (ICAO) and the Civil with an improved reporting system that Malaysia for the financial year 2017. The Aviation Authority of Malaysia (CAAM). promotes vigilance among Allstars. These AirAsia Group is based in Malaysia, and The SMS consists of four pillars: Safety reports are discussed at safety meetings, AirAsia Malaysia remains the biggest Policy and Objectives, Safety Risk which are held regularly and where revenue contributor. We have put in Management (SRM), Safety Assurance proactive, innovative resolutions are place the relevant mechanisms to collect (SA) and Safety Promotion. formed. data in Malaysia and are in the process of standardising the data collection in Guided by the SMS, we promote a safety our other country operations. Once the culture within the organisation with relevant
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