Caring for the World We Carry Our Commitment to ESG 2018-2019 ESG REPORT Table of Contents Our ESG Strategy .............................................................................................................3 A Message from Our Leaders .......................................................................................4 Environment ................................................................................................5 Reducing Aircraft Emissions .......................................................................................6 Reducing Aircraft Noise .................................................................................................8 Reducing Resource Consumption ..............................................................................9 Through responsibility, Social ...........................................................................................................10 transparency and compliance, Safety & Security ......................................................................................................... 11 Atlas Air Worldwide’s ESG vision Employee Experience .................................................................................................. 13 Community Impact & Philanthropy ........................................................................ 15 is to be an aviation industry Enhancing Global Prosperity ......................................................................................17 leader that partners with our Labor Relations ............................................................................................................. 19 stakeholders to foster economic and social progress while Governance ................................................................................................20 safeguarding the environment. Corporate Governance ................................................................................................ 21 Ethics and Integrity ..................................................................................................... 23 Compliance ..................................................................................................................... 24 Data Privacy and Cybersecurity .............................................................................. 26 Public Policy Advocacy................................................................................................ 28 Our ESG Stories ........................................................................................29 Click here to view this report online ENVIRONMENT Our ESGStrategy Strategy Our environmental, social and governance (ESG) journey, which began with our founding in 1992, is rooted in our core values, including our unyielding commitments to safety, security and compliance. We believe long-term growth and success are achieved by sustaining and protecting our natural resources, empowering our employees and business partners, and demonstrating transparency and accountability through responsible corporate governance. Our ESG Strategy and Policy In 2019, we formalized our ESG strategy and policy, which outline our vision, priorities and management approach. The priorities we’ve identified are important to our business and important to our stakeholders, and are issues on which we believe we can have a meaningful impact in a cost-effective and efficient manner. Atlas Air Worldwide’s ESG Strategy Our Priorities Stakeholders ENVIRONMENTAL » Reducing Aircraft Emissions Reducing Aircraft Noise L » A T » Reducing Resource Consumption N S E O M C N I A O Our ESG Vision L R I V Through responsibility, SOCIAL N E transparency and compliance, » Safety & Security Atlas Air Worldwide’s ESG vision » Employee Experience is to be an aviation industry leader » Community Impact & Philanthropy that partners with our stakeholders » Enhancing Global Prosperity to foster economic and social » Labor Relations progress while safeguarding the environment. GOVERNANCE G » Corporate Governance OVERNANCE » Ethics and Integrity » Compliance » Data Privacy and Cybersecurity » Public Policy Advocacy Read more in the Atlas Air Worldwide ESG Policy. ATLAS AIR WORLDWIDE 2018-2019 ESG Report | 3 A Message from Our Leaders November 2019 Caring for the World We Carry Thank you for your interest in Atlas Air Worldwide and our commitment to environmental, social and governance (ESG) performance and reporting. We have been committed to being a responsible corporate citizen since our founding in 1992 with one Boeing 747-200. We have not wavered in our drive to deliver excellence daily, do business the right way and be our customers’ most trusted partner, as our business has grown to include a total fleet of 122 Boeing aircraft as of the writing of this letter. “Caring for the world we carry” captures our commitment to our people, communities and the world by being a catalyst for economic and social progress. We have had a global mindset from the beginning. Our business connects markets around the world and enables the growth of economies in emerging countries. For example, our air cargo network enables farmers in East Africa to move from subsistence farming to exporting produce and other products for global markets. The same is true for those who are growing flowers or farming asparagus and blueberries in Latin America. We also fly humanitarian missions to deliver food, water, medical supplies and other daily living essentials to natural disaster-ravaged areas, and we are honored to be the largest provider of military passenger and cargo airlift globally to support the U.S. military. We are also focused on maintaining high standards of compliance with laws and regulations related to the environment, safety, corporate governance, ethics and data security in the U.S. and globally. This includes our commitment to be an industry leader in addressing aircraft fuel efficiency and reducing greenhouse gas emissions. Today, Atlas operates the world’s largest fleet of Boeing 747 freighters. Growth is important to us, and so is being a responsible corporate citizen. Our goal is to deliver tangible impact on issues that matter and also influence others in our industry and value chain to do so as well. With the guidance of our internal ESG executive committee, we have established our ESG policy and made meaningful progress in enhancing and coordinating our many ESG-related efforts. We are on a journey of continuous improvement and ongoing engagement with our key stakeholders – customers, investors, employees, partners in both the private and public sectors, and the communities where we operate. Atlas has a world of opportunity to lead and innovate, and we are moving boldly forward with purpose. We look forward to updating you on our progress. Bill Flynn John Dietrich Chairman of the Board President and Chief Executive Officer ATLAS AIR WORLDWIDE 2018-2019 ESG Report | 4 Environment Doing our part to protect the natural environment, while helping to drive global prosperity, supply chain efficiency and e-commerce, is one of Atlas Air Worldwide’s most important responsibilities. This commitment includes working with our customers, shareholders and partners to meet In This Section: Reducing Aircraft Emissions their expectations of us. We continue to invest in Reducing Aircraft Noise technology that allows us to fly farther, with cleaner, Reducing Resource Consumption quieter engines and advanced airframes, for greater payload and fuel efficiency. ATLAS AIR WORLDWIDE 2018-2019 ESG Report | 5 ENVIRONMENT Reducing Aircraft Emissions Atlas Air Worldwide addresses the need to reduce Driving Operating Efficiencies greenhouse gas emissions and improve aircraft fuel We seek to optimize the efficiency of our payloads and efficiency in multiple ways, including: driving operating flight-planned routes. For more than a dozen years, Atlas efficiencies, continuing to upgrade our fleet and has been utilizing our Fuel Wise program in conjunction advancing the sustainable aviation fuels agenda. Our with our flight-planning software to identify additional approach is intended to be good for the environment and opportunities to conserve fuel by optimizing flight speeds, good for business. altitudes, routes, climb, cruise and descent segments. Our Commitments The company adopted a Fuel Management Information System in 2016 that tracks and helps promote fuel- Even though air travel accounts for only a small portion efficient best practices throughout the company. This of total greenhouse gas emissions, our industry and system allows Atlas to analyze fuel consumption our company are committed to helping create a more performance and identify opportunities for improvement. efficient, lower-emissions world. It is also worth noting Some examples of current best practices are: that aircraft fuel is one of the most significant expenses for Atlas. During 2018, 2017 and 2016, fuel costs ◊ Reduced extra fuel uplift represented 19.5%, 17.4%, and 16.5%, respectively, ◊ Engine-out taxi-in of our total operating expenses. In several ways, we strive to play a leadership role in our industry‘s fuel ◊ Idle reverse thrust usage on landing efficiency efforts: ◊ Contingency fuel reduction initiative ◊ In 2019, William J. Flynn continues to be on the Board of Directors of Airlines for America, a key ◊ Route and altitude planning alignment with air traffic industry trade association, which has adopted control assignments aviation-specific emissions targets: 1.5% average We routinely evaluate and