Sus tain ability Report 2019 He waka eke noa We are all on this journey together Intro 01 02 01 Letter from the CEO 09 Engaging Air New Zealanders 23 Tackling climate change & carbon 03 Letter from the Sustainability Advisory Panel Chair 12 Embracing diversity 25 Reducing our carbon footprint 05 Our business 13 Gender balance 29 Meeting regulatory obligations 06 Our customers 15 Developing Māori and Pasifika leaders 30 Supporting the Zero Carbon Bill 07 Sustainability at Air New Zealand 17 Building a strong learning culture 31 FlyNeutral 08 Our material issues 19 Protecting our people's wellbeing 21 Community engagement 03 04 05 33 Supporting New Zealand 43 Working with our suppliers 49 Reducing waste & plastic through sustainable tourism 45 Our approach 51 Plastic, not so fantastic 35 Working together to promote New Zealand to the world 46 Recognising our suppliers 52 Re-evaluating our waste targets 38 Showcasing the best of regional New Zealand 47 A taste of New Zealand 53 Working with partners to reduce waste 39 Supporting tourism and development in the regions 41 Tourism's role in protecting our environment 55 Dashboards 1 | Sustainability Report 2019 | Introduction He waka eke noa | 2 A LETTER FROM The Chief Executive Officer We stand at a pivotal moment that climate change poses and the need upon businesses that they stand up like to stimulate economic and social impact in time with a groundswell for urgent action. Countries are crystallising never before to be a trustworthy source of in the regions by promoting tourism career targets and enshrining mechanisms in information, to take a stand on contentious pathways for young people who would not of sustainability awareness legislation to deliver to the 2050 Paris societal issues and help deliver a fairer, safer otherwise access tertiary training. demanding that business, targets. The New Zealand Government is and more resilient society. People are at the seeking to pass the Zero Carbon Bill to heart of Air New Zealand so I’m really proud I’m incredibly proud of what we’ve governments and establish long-term emissions budgets. that we have led national conversations collectively achieved at Air New Zealand communities together do As a founding member of the New Zealand around important social issues such as in the past seven years during my tenure more to play their part in Climate Leaders Coalition, Air New Zealand diversity and inclusion, automation and as CEO, and our sustainability journey has supported the net-zero ambition and the future of work. Within Air New Zealand, has been absolutely one of the highlights. responding to the climate seeks enhanced policy certainty and the the proportion of women in our Senior My appreciation again goes to the Air crisis and other critical design of new mechanisms to support Leadership Team roles has jumped from New Zealand Board and members of low-carbon technology, particularly for 16 percent in 2013 to 44 percent this year, Sustainability Advisory Panel for their sustainability challenges. hard-to-abate sectors like aviation. we have advanced a leading parental leave continued guidance and the challenges policy and we continue to embrace te reo they have set, and to our partners who The immense challenges we face underscore Globally, consumer awareness of the Māori. Our progress has been recognised are working alongside us to deliver results. the relevance of Air New Zealand’s company negative carbon impacts of flying is rising. externally, securing the inaugural Diversity When Air New Zealand first launched purpose, to supercharge New Zealand’s Responding to the climate crisis remains Air & Inclusion Award from the International our sustainability agenda, not many New success — socially, environmentally and New Zealand’s single biggest sustainability Air Transport Association and winning New Zealand companies, and certainly not economically. This purpose reflects the challenge. The most impactful lever we have Zealand’s Most Attractive Employer award many airlines, were so “all in”. I’m critical and multifaceted roles we play — currently is to fly modern, more fuel-efficient for the sixth time. These awards are great therefore grateful for the support and connecting people and products across aircraft, which we continue to invest in, and recognition, but the bigger prize is the trust the Air New Zealand Executive and New Zealand and the world, supporting to ensure our operations both in the air and difference I see in employee satisfaction Board had to launch and take this critical people and communities as one of on the ground are as efficient as possible. and improved business performance. strategy forward. New Zealand’s largest employers, and leading a conversation on the future of To make lasting and significant progress sustainable tourism, New Zealand’s This year the Air New Zealand Executive identified to address the biggest of the world’s largest contributor to GDP. Our company challenges — and there are many — purpose also reflects the airline’s role in 'Sustainability in the Bloodstream' as a long-term business must continue to step up and helping to protect the natural environment mobilise their people, knowledge and for Kiwis and visitors alike, and the organisation-wide strategic pillar. capital. Ultimately, we will get the future desire that our workplaces offer equal we design and are prepared to invest in opportunities irrespective of gender, race, together — and our people, communities, sexual orientation or physical ability. We also know that new fuels and electric Our unique position as the national carrier long-term resilience as a business, aircraft technology must form part of of Aotearoa extends to the positive impact and health of our planet depend on our This year the Air New Zealand Executive the longer-term solution for reducing we have on New Zealand economically — collective and continued bold leadership. identified ‘Sustainability in the Bloodstream’ emissions. In the past year we are proud bringing overseas visitors to our shores, as a long-term organisation-wide strategic that our voluntary customer carbon offset transporting high-value cargo exports, Nāku noa, nā pillar. This commitment will accelerate programme passed a milestone of $1 million stimulating regional economies and progress towards our sustainability goals going towards the purchase of carbon supporting local businesses across our with an additional focus on enhancing offsets from permanent New Zealand forests. supply chain. At our inaugural Tūhono Ngā mihi, awareness and capability of all senior Supplier Awards, we celebrated the leaders to deliver our ambitious agenda. This past year has also seen continued low contribution of many of our suppliers to levels of trust globally in governments, our own business success. In the regional In 2019 the climate crisis has taken centre NGOs and media. In the trust stakes, “my impact and tourism space, we recently stage. We have seen unprecedented employer” is the most trusted relationship announced a four-year strategic partnership Christopher Luxon engagement of community and youth by a significant margin. With such trust with Queenstown Resort College’s Tai Chief Executive Officer, leaders shining a light on the challenges comes responsibility — the expectation Tokerau campus. This partnership aims Air New Zealand 3 | Sustainability Report 2019 | Introduction He waka eke noa | 4 A LETTER FROM THE Sustainability Advisory Panel Chair Although there are lots of success by addressing whatever key companies today that talk challenges that company may be facing — in Air New Zealand’s case, Climate Change, a lot about corporate Tourism (Sections Two and Three), and sustainability (or Corporate getting on top of its waste management issues, with a particular focus these days Social Responsibility), very on plastic waste (Section Five) — where few of them really get it. Air New Zealand has a good story to tell Worse yet, a lot of them are (see page 49). still just ‘adding it on’ to the Get all that right, and suppliers (Section Four) ‘shareholder-first imperative’. will be proud to help that company achieve its goals. At which point, investors will be Paradoxically, there’s a strong case to be assured of good returns, in both the short made that the best way of putting and the long term, as a direct consequence shareholders first is to put shareholders last! of getting the basics right everywhere else And the structure of this report perfectly in the company. exemplifies that heretical idea. Corporate sustainability for Air New Zealand starts With an airline, inevitably, investors will be with Air New Zealanders (Section One) — the particularly keen to know that its Board heart and soul of the company. As it is for of Directors is managing climate risk as somewhere in the world. In fact, the UN to understand the psychological trauma broader community engagement strategy every company. Screw this up, or even play it purposefully as is now required at a time tells us that we’re now witnessing one such of leaving behind one’s homeland, culture, which has moved forward in leaps and down, and that’s pretty much game over for of climate emergency. My colleague Tim calamity every week, and that this will get history and very identity as a people. bounds over the last 18 months. any company seeking genuine sustainability. Jackson spells that out very clearly on much worse with sea levels starting to rise much faster, and a deeply disturbing New Zealand’s leadership on climate The world already looks to New Zealand (and projection of a one metre average sea-level change (as well as that of Fiji itself) is going to its national carrier) for leadership in such At long last, there is now a much greater recognition of rise by the end of the century. to be crucial over the next few years.