The Emirates Group Environmental Report 2013-14
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THE EMIRATES GROUP ENVIRONMENTAL REPORT 2013-14 ENVIRONMENTAL REPORT 2013-14 | 1 2 | ENVIRONMENTAL REPORT 2013-14 HH SHEIKH MOHAMMED BIN RASHID AL MAKtoum VICE PRESIDENT AND PRIME MINISTER OF THE UNITED ARAB emirates AND RULER OF DUBAI We recognise that preserving our resources will be one of the greatest challenges in our drive towards sustainable development. This, however, will not materialise unless different facets of our society adopt energy conservation principles in their core values. ENVIRONMENTAL REPORT 2013-14 | 3 Emirates is a global airline, operating the world’s largest fleets of Airbus A380 and Boeing 777 aircraft from its hub in Dubai, United Arab Emirates. Its main activity is the provision of commercial air transportation services. dnata is one of the largest combined air services providers in the world and the largest travel management services company in the UAE. Its main activities are the provision of cargo and ground handling, catering, information technology and travel services. Emirates and dnata are independent entities and do not form a group as defined by International Financial Reporting Standards. However, these entities are under common management. Therefore, in this document they are together referred to as the Emirates Group. 4 | ENVIRONMENTAL REPORT 2013-14 THE EMIRATES GROUP Contents FINANCIAL PERFORMANCE 6 ENVIRONMENTAL PERFORMANCE 8 LETTER FROM THE CHAIRMAN AND CHIEF EXECUTIVE 10 THE LEADERSHIP TEAM 12 SCOPE OF THE REPORT 13 THE EMIRATES GROUP – WHO WE ARE 14 OUR GROWING NETWORK 16 THE EMIRATES FLEET 18 JET FUEL 20 ENGINE EMISSIONS 24 AIRCRAFT NOISE 28 GROUND OPERATIONS 30 ELECTRICITY AND WATER 34 MATERIALS AND WASTE 36 GROUP CARBON DIOXIDE EMISSIONS 38 BIODIVERSITY AND CONSERVATION 40 A GREENER TOMORROW 44 SETTING INDUSTRY TARGETS 48 PWC REASONABLE ASSURANCE REPORT 50 ABBREVIATIONS AND REFERENCES 52 ENVIRONMENTAL REPORT 2013-14 | 5 FINANCIAL PERFORMANCE Emirates Group Financial Highlights 2013-14 2012-13 % change Revenue and other operating income* AED m 87,766 77,536 13.2 Operating profit AED m 5,123 3,654 40.2 Operating margin % 5.8 4.7 1.1 pts Profit attributable to the Owner AED m 4,083 3,102 31.6 Profit margin % 4.7 4.0 0.7 pts Cash assets AED m 18,995 26,968 (29.6) Total assets** AED m 110,100 102,188 7.7 Emirates Financial Highlights 2013-14 2012-13 % change Revenue and results Revenue and other operating income AED m 82,636 73,113 13.0 Operating profit AED m 4,260 2,839 50.1 Operating margin % 5.2 3.9 1.3 pts Profit attributable to the Owner AED m 3,254 2,283 42.5 Profit margin % 3.9 3.1 0.8 pts Return on shareholder's funds % 13.6 10.4 3.2 pts Financial position and cash flow Total assets AED m 101,604 94,803 7.2 Cash assets AED m 16,561 24,572 (32.6) Airline operating statistics Passengers carried number ‘000 44,537 39,391 13.1 Cargo carried tonnes ‘000 2,520 2,086 7.9 Passenger seat factor % 79.4 79.7 (0.3) pts Overall capacity ATKM million 46,820 40,934 14.4 Available seat kilometres ASKM million 271,133 236,645 14.6 Aircraft*** number 217 197 10.2 6 | ENVIRONMENTAL REPORT 2013-14 dnata Financial Highlights 2013-14 2012-13 % change Revenue and results Revenue and other operating income AED m 7,565 6,622 14.2 Operating profit AED m 863 815 5.9 Operating margin % 11.4 12.3 (0.9) pts Profit attributable to the Owner AED m 829 819 1.2 Profit margin % 11.0 12.4 (1.4) pts Return on shareholder's funds % 19.1 21.4 (2.3) pts Financial position Total assets AED m 8,667 7,571 14.5 Cash assets AED m 2,434 2,396 1.6 Key operating statistics Aircraft handled number 288,335 264,950 8.8 Cargo handled tonnes '000 1,604 1,570 2.2 Meals uplifted number '000 41,275 28,584 44.0 Travel services related net sales AED bn 5.9 5.4 10.0 2013-14 figures have been re-classified to conform with the current year’s presentation. * After eliminating inter company income/expense of AED 2,435 million in 2013-14 (2012-13: AED 2,199 million). ** After eliminating inter company receivables/payables of AED 171 million in 2013-14 (2012-13: AED 186 million). *** Number of aircraft excludes one Airbus A319 ACJ used for executive jet charters. Elsewhere in the Environmental Report 2013-14, the total number of aircraft is reported as 218, including the A319 ACJ. The financial year of the Emirates Group is from 1 April to 31 March. Throughout this report all figures are in UAE dirhams (AED) unless otherwise stated. The exchange rate of the dirham to the US dollar is fixed at 3.67. ENVIRONMENTAL REPORT 2013-14 | 7 ENVIRONMENTAL PERFORMANCE Emirates Airline – Environmental Data Metric 1 Unit 2013-14 2012-13 % change Verified2 Jet fuel consumption tonnes 8,141,738 7,125,216 14 . 3 Carbon dioxide (CO2) emissions tonnes 25,646,474 22,444,429 14 . 3 Fuel efficiency L/100PK 4.05 4.07 -0 . 5 L/FTK 0.190 0.207 -8 . 2 L/TK 0.3089 0.3103 -0 . 5 Fuel efficiency (OFEF)8 TK/L 17.74 17.71 0 . 2 8 CO2 efficiency g CO2 / PK 100.3 100.6 -0 . 3 g CO2 / FTK 469.2 511.2 -8 . 2 kg CO2 / TK 0.764 0.767 -0 . 4 Nitrogen oxides (NOx) emissions tonnes <3,000ft 10,552 9,194 14 . 8 Carbon monoxide (CO) emissions tonnes <3,000ft 6,394 5,471 16 . 9 Unburnt hydrocarbon (UHC) emissions tonnes <3,000ft 665 564 17 . 9 Aircraft compliant with ICAO Annex 16 Vol II % 100 100 0 . 0 emissions Standards 3 Noise Efficiency Factor – Takeoff (NEF-T) dBkm2 / TK 2.45 2.51 -2 . 4 Noise Efficiency Factor – Landing (NEF-L) dBkm2 / TK 0.62 0.69 -10 . 1 Aircraft compliant with ICAO Annex 16 Vol I % 100 100 0 . 0 Chapter 4 noise Standards 3 8 | ENVIRONMENTAL REPORT 2013-14 Emirates Group – Ground Operations Environmental Data Metric 1 Unit 2013-14 2012-13 % change Diesel consumption 7 litres 31,766,294 29,047,300 6 9 . 4 Petrol consumption 7 litres 13,451,474 10,468,623 28 . 5 Total fuel consumption (ground) 7 litres 45,217,768 39,515,923 6 14 . 4 Fuel consumption per head of staff 4 litres/head/day 1.97 2.37 6 -16 . 9 Associated CO2 emissions 7 tonnes 115,900 101,722 6 13 . 9 Electricity consumption 7 MWh 1,185,721 1,040,177 14 . 0 Associated CO2 emissions 7 tonnes of CO2 830,005 728,124 14 . 0 Electricity consumption per head of staff 4 kWh/head/day 52.6 51.4 2 . 3 Water consumption 7 ML 8,221 7,338 12 . 0 Associated CO2 emissions 5 tonnes of CO2 116,470 97,800 19 . 1 Water use per head of staff 4 litres/head/day 361.3 344.0 5 . 0 Total waste (not recycled) 7 tonnes 210,376 168,236 25 . 0 Total waste (not recycled) per head of staff 4 kg/head/day 8.8 8.5 3 . 5 Recyclables collected 7 tonnes 7,555.2 6,212.7 6 21 . 6 Emirates Group – Total Carbon Dioxide Emissions Metric 1 Unit 2013-14 2012-13 % change Verified 2 CO2 from flight operations tonnes 25,646,474 22,444,429 14 . 3 CO2 from ground operations tonnes 1,272,751 1,095,882 6 16 . 1 Total Group CO2 emissions tonnes 26,919,225 23,540,311 6 14 . 4 1 For definitions of the metrics in these tables, please see The Emirates Group Environmental Report 2013-14 Reporting Guidelines and Methodology document, available on www.emirates.com/about/environment. 2 The metrics marked are covered by PwC’s assurance procedures (see PwC assurance report on pages 50-51). 3 Excludes wet-leased cargo aircraft. 4 Includes staff of Emirates, dnata and Emirates Flight Catering (EKFC) in Dubai (58,882). It excludes staff from the 29 Emirates airport lounges covered in this report (ex Dubai), Alpha Flight Group Ltd, Emirates outstations and staff of Emirates and dnata subsidiary companies. 5 For desalinated water only. 6 Figure revised since publication of the 2012-13 Environment Report. 7 Includes Emirates, dnata and Emirates Flight Catering (EKFC) in Dubai, Emirates Group’s 12 largest outstations by headcount, 29 Emirates airport lounges (ex Dubai) and Alpha Flight Group Ltd. 8 Unlike the other fuel efficiency metrics we report, the higher the OFEF value, the better the efficiency. A positive percentage change therefore reflects improvement over time. ENVIRONMENTAL REPORT 2013-14 | 9 HIS HIGHNESS SHEIKH AHMED BIN SAEED AL MAKTOUM CHAIRMAN & CHIEF EXECUTIVE EMIRATES AIRLINE & GROUP In 2020, Dubai expects to welcome 20 million tourists and generate Emirates already operates one of the youngest and most efficient AED300 billion in annual tourism revenue. Emirates airline will play a aircraft fleets in the sky. In the past year, we received 24 new big role in supporting this goal, and so will dnata, our home-grown passenger and freighter aircraft comprising Airbus A380s and air services provider which has transformed from modest beginnings Boeing 777s. Representing the very latest in commercial aircraft into a global player. technology, these new aircraft continue to help us improve the overall fuel efficiency and noise profile of our fleet. Today, Emirates airline connects over 145 cities to Dubai and to each other, facilitating trade and tourism flows across six continents; while In November 2013, we made a massive investment in the latest, dnata provides ground handling, catering, cargo and travel services most environmentally efficient aircraft technology with an order not only in Dubai, but across 90 cities, in 38 countries on for 150 next-generation Boeing 777Xs.