<p>CARBON NEUTRAL National Carbon Offset Standard and Carbon Neutral Program</p><p>CASE STUDY: Virgin Australia Virgin Australia launched in 2000 and has since established itself as a contemporary, full-service airline with a reputation for exceptional customer service. The airline has developed an extensive flight network across Australia, the Asia–Pacific and to key global hubs.</p><p>Our airline is focused on reducing our environmental impacts. We’ve implemented a series of fuel efficiency measures to reduce the amount of fuel we use and, in turn, the emissions we generate. Virgin Australia has been at the forefront of driving the development of the sustainable aviation fuel industry in our region and internationally. Virgin Australia created the world’s first Government certified carbon offset scheme in 2007 and we have continued to look for ways to provide our customers with the opportunity to offset the emissions associated with their flights through our Fly Carbon Neutral program. </p><p>The business case for obtaining carbon neutral certification We are committed to ensuring that we are transparent and accountable for how we manage the funds collected through our Fly Carbon Neutral program. NCOS certification helps to ensure our emissions calculations are robust, and provides assurance to our customers that the offsets they purchase are an accurate reflection of the emissions generated through their flights. </p><p>Achieving carbon neutrality</p><p>Carbon footprint Scope 1 emissions from jet fuel is our primary source of emissions, representing about 92 per cent of our total emissions. The scope 3 emissions related to the upstream extraction and production of the fuel represent about seven per cent of our total emissions with scope 2 and other scope 3 accounting for the remaining one per cent. This includes emissions across Virgin Australia Airlines as well as our regional operations through Virgin Australia Regional Airlines.</p><p>Emission reductions Virgin Australia is committed to addressing our climate change impacts through a combination of fuel efficiency programs, energy reduction programs, and carbon offsetting. Jet fuel contributes to the majority of our emissions and is the focus of our fuel efficiency program. Virgin Australia has a dedicated Fuel Efficiency team comprising of pilots and data analysts, whose role it is to continually investigate and implement fuel efficiency improvements. One example of a fuel efficiency improvement is achieving a reduction in the weight of aircraft cabins through the removal of unnecessary items. Biofuels not only have a smaller carbon footprint but also burn more efficiently than regular jet fuel. This is why we have an aspirational target to use five per cent biofuels by 2020 in an effort to further reduce our emissions. Virgin Australia is currently working with alliance partner Air New Zealand to source 200 million litres of sustainable aviation fuel produced in our region by 2020. Our Fly Carbon Neutral carbon offsets program complements the emission reduction initiatives above, and in the coming year we plan to grow our program to reach a larger portion of those flying with Virgin Australia and our partner airlines.</p><p>Offsetting In 2014 we entered into a partnership with the Tasmanian Land Conservancy to support their New Leaf Carbon project through our Fly Carbon Neutral program. As well as achieving important environmental outcomes, the project supports important biodiversity outcomes and scientific research.</p><p>Benefits and outcomes of carbon neutral certification Providing customers with the option to purchase carbon offsets through our Fly Carbon Neutral program not only allows our customers the opportunity to offset the emissions associated with their flying but also creates an important channel for Virgin Australia to discuss the benefits of carbon offsetting with our customers and key stakeholders. In partnering with the Tasmanian Land Conservancy, we have also enhanced the overall engagement of our employees and customers. The New Leaf Project has resonated with employees and customers not only through carbon reduction but also through enhanced biodiversity, which has provided habitats for a variety of species endemic to Australia.</p><p>Challenges and learnings The biggest challenge for any new business in obtaining carbon neutral certification is to develop an accurate methodology to assess and measure their emissions. Once this is achieved there is an ongoing administrative requirement to collect data and annually report in accordance with the NCOS certification guidelines. However, this process of analysing the emissions in your business can have a range of ancillary benefits and brings important understanding and discipline. </p><p>“Virgin Australia would recommend the NCOS certification program to any company considering offering a carbon neutral product or service to their customers.”</p><p>Want to find out more about other organisations who are carbon neutral? www.environment.gov.au/climate-change/carbon-neutral</p>