Climate Action Plans
At the general assembly of the International Civil Aviation Organization (ICAO) convened in 2010, two aspirational global CO2 reduction goals were agreed on for the international aviation sector: Improvement of fuel efficiency by 2% annually, and carbon neutral growth for international flights from 2020 onwards. Additionally, at the general assembly convened in 2016, the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), which mandate airlines operating international flights to purchase CO2 emission credits for any excess CO2 emissions in 2019, from 2021 onwards, was adopted.
JAL Group has established a new long-term goal of “Zero CO2 Emissions” in June,2020, aiming to achieve net zero CO2 emissions by 2050. We will take steps to reduce CO2 emissions based on four pillars; “Promotion of development and utilization of Sustainable Aviation Fuel”, “Upgrade to fuel-efficient aircraft”, “Reduce CO2 Emissions in Daily Operations”, and “Dealing with Emissions Trading”. We have also established an management system to control CO2 emissions.
*The definition of the base year for CORSIA scheme has been revised in 2020, from "Excess from average CO2 emissions of 2019 and 2020 " to "Excess from average CO2 emission of 2019"
Supervision and Management
JAL Group is aware of the critical management issues regarding risks and opportunities in climate change. As a framework to supervise and manage risks and opportunities, based on the global laws and ordinances and political trends concerning climate change, we will minimize climate change risks. Also, to examine business opportunities, a Group Steering Committee was initiated with the President as chair and all directors as members. Furthermore, a Sustainability Promotion Committee, which promotes efforts to achieve Sustainable Development Goals (SDGs), was formed underneath this Group Steering Committee, to promote climate change activities centered around the director in charge.
Awareness of Impact to Business (Risks and Opportunities)
JAL Group, an emitter of large amounts of CO2 in their daily flight operations, is aware of the massive financial impact climate change will have on their business with the rise in aircraft costs due to the restrictions in CO2 emissions and demands to improve fuel efficiency, oil and bio-jet fuel prices, and changes in their usage ratios, among others.
With the trend to decarbonize based on the Paris Agreement and Intergovernmental Panel on Climate Change (IPCC) reports, the financial impact from the climate change-related risks and opportunities, shown on the chart, is expected to grow. We are exploring ways to deal with the conceivable changes in advance to begin necessary preparations. We will also disclose this information widely.
Short-term Target and Medium-Long-Term Target
To achieve short-term target, we have steadily implemented measures to reduce fuel consumption during daily flights and renew aircraft to fuel-efficient aircraft such as the Airbus A350 and Boeing 787 under a plan. As a result, CO2 emissions in fiscal 2018 were 1.6% lower than the previous year. As of the end of fiscal 2018, we have reduced emissions by 19.4% from the fiscal 2005 level. Total emissions in fiscal 2019 were 240,000 tons lower than the previous year. However, the reduction rate per unit of production increased by 2.4%. As a result, the cumulative reduction was only 17.0%.
Medium-Long-Term is to achieve growth without increasing CO2 emissions after 2020. We will achieve this target by upgrading to fuel-efficient aircraft and reducing fuel consumption in daily operations, promoting the development and use of sustainable aviation fuels in accordance with the CORSIA system, and dealing with emissions trading. In addition, we reduce total CO2 emissions by achieving "Zero CO2 Emissions" by 2050.