Air France - KLM, A i r TSustainability r a n , AReporting l a s k a of2010 A i r the G rWorld's o u p , Largest I n c . ,Airline A mCompanies erican Airlines, British Airways, Continental Airlines, ExpressJet Holdings, Japan Airlines, JetBlue Airways Corporation, Lufthansa Group, Northwest Airlines, Skywest Inc, Southwest Airlines, UAL, US Airways Group Pacific Sustainability Index Scores A benchmarking tool for online sustainability reporting Helping Commerce Help Nature J. Emil Morhardt, Elgeritte Adidjaja, Juliet Marie Archer, Jeffrey Alan Astor, Owen Black Brewer, Olivea Omalara Fayola Callender-Scott, Carolyn Hendricks Collins, Jacyln T. D'Arcy, Bukola Jimoh, Teija Campbell Mortvedt, Brittany Nunnink, Caitrin Elise O'Brien, Noah Monte Proser, Emma Ryland Reese, and Aden Eyob F. Weldegiworgis Claremont McKenna College Roberts Environmental Center Contents Topics Company Rankings Lead Analyst’s Comment PSI Overview PSI Scoring in a Nutshell Environmental Intent Topics Environmental Reporting Topics Social Intent Topics Social Reporting Topics Environmental Intent Element of the PSI Scores Environmental Reporting Element of the PSI Scores Social Intent Element of the PSI Scores Social Reporting Element of the PSI Scores Environmental Intent Scores Ranking Environmental Reporting Scores Ranking Environmental Performance Scores Ranking Social Intent Scores Ranking Social Reporting Scores Ranking Social Performance Scores Ranking Visual Cluster Analysis Company Rankings Based on the Number of Goals Reported Company Rankings Based on the Better Performance Reported Analyst’s Comments, alphabetically listed by company name Page 3 4 5 6 7 8 9 10 11 Questions should be addressed to: Dr. J. Emil Morhardt, Director (emorhardt@cmc.edu) Roberts Environmental Center Claremont McKenna College 925 N. Mills Ave. Claremont, CA 91711-5916, USA Direct line: (909) 621-8190 Elgeritte Adidjaja, Research Fellow: (909) 621-8698 (eadidjaja@cmc.edu) Departmental secretaries: (909) 621-8298 12 13 14 15 16 17 18 19 20 21 22 23 24 The Roberts Environmental Center has been the foremost analyst of corporate sustainability reporting for over a decade. We analyze corporate online disclosure using our Pacific Sustainability Index (PSI) and publish the results on this website. Industrial Sector** Aerospace and defense Airlines Banks, Insurance Chemicals Largest Companies in China Colleges/Universities Computer, Office Equipment, and Services Consumer Food, Food Production, & Beverages Electronics and Semiconductors Energy Entertainment Food Services Forest and Paper Products General Merchandiser Homebuilders Industrial and Farm Equipment Mail, Freight, & Shipping Medical Products & Equipment Metals Mining, Crude Oil Motor Vehicle and Parts Oil and Gas Equipment Petroleum and Refining Pharmaceuticals Scientific, Photo, & Control Equipment Telecommunications, Network, & Peripherals Utilities, Gas, and Electric 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 X 2 0 1 0 X X X X X X X X X 1 X X X X X X * X X * X X X X X X X X X X X X * X * X X X X X X X X X X X X X X X X * X * X * Multiple-sector category was separated in later years. **As of March 2010. 1 Top 50 Liberal Art Colleges. The goal of corporate report analysis conducted by the Roberts Environmental Center is to acquaint students with environmental and social issues facing the world’s industries, and the ways in which industry approaches and resolves these issues. The data presented in this report were collected by student research assistants and a research fellow at the Roberts Environmental Center. Copyright 2010 © by J. Emil Morhardt. All rights reserved. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 2 Claremont McKenna College Roberts Environmental Center Airline Sector Corporate Environmental and Sustainability Reporting Company Rankings Japan Airlines Overall Grade 56.83 Lufthansa Group 48.27 Continental Airlines 37.61 American Airlines 36.43 Southwest Airlines 35.52 UAL 34.33 Air France - KLM 31.42 British Airways A+ Japan Airlines (Japan) AB Lufthansa Group (Germany) Continental Airlines (USA) B American Airlines (USA) B Southwest Airlines (USA) BB- UAL (USA) Air France - KLM (France) C+ British Airways (U.K.) C C Alaska Air Group,Inc. (USA) AirTran (USA) C CC- JetBlue Airways Corporation (USA) Delta Airlines (USA) ExpressJet Holdings (USA) C- US Airways Group (USA) D- Skywest Inc (USA) 28.69 Alaska Air Group,Inc. 25.87 AirT ran 23.04 JetBlue Airways Corporation 21.40 Delta Airlines 21.22 ExpressJet Holdings 17.67 US Airways Group 17.03 Skywest Inc 3.55 0 25 50 75 100 This report is an analysis of the voluntary environmental and social reporting of companies on the 2008 Fortune Global 500 and Fortune 500 Airline sector lists. Data were collected from corporate websites during the initial analysis period (dates shown below). A draft sector report was then made available online and letters were sent to all companies inviting them to review the analysis, to identify anything missed by our analysts, and to post additional material on their websites if they wished to improve their scores. We omitted Northwest Airlines because it is in the process of merging with Delta Airlines. Analysis Period: Draft sector report available for review: www.roberts.cmc.edu 2/25/2009 through 4/22/2009 10/16/2009 through 2/1/2010 2010 Sustainability Reporting of World's Largest Airline Companies 3 Claremont McKenna College Roberts Environmental Center Lead Analyst’s Comments The sector was led by Japan Airlines (JAL Group) with detailed CSR and extensive social and environmental initiatives. JAL Group ranked highest in the sector in enviromental reporting and performance and social intent and performance scores. Clearly, environmental responsibility is not new to JAL Group. The company has invested in exploring “ways of flying in an eco-friendly fashion” since 1990, when it created its fuel efficiency committee. Researching the environment to minimize the company’s impact on it is a key part of JAL Group’s sustainability initiative. Furthermore, JAL Group has programs in everything from volunteer tree planting, to Siberian wildfire reporting, to preventing desertification in inner-Mongolia. JAL Group has discovered thoughtful, intelligent ways to reduce its fuel consumption and is a model of environmental reporting for industry as a whole. Lufthansa, which ranked 2nd in the sector, also provides an impressive corporate responsibility report. Lufthansa puts particular emphasis on the preservation of biodiversity and ecosystems, supports the International Air Transport Association’s Fuel Efficiency Goal, and is attempting to reduce the CO2 emissions of its fleet by 25% by 2020. To achieve the same end, Continental Airlines offers a carbon offset program to their customers, has invested $12 billion in new fuel efficient aircraft, and begun testing biofuels blends. American Airlines and AirTran both discuss fuel conservation and emissions reduction but, neither company explicitly mentions climate change. ExpressJet Holdings also does not mention climate change, but has nonetheless made considerable improvement in its sustainability reporting since last year. Alaska Air Group discusses climate change very briefly, but expresses interest in adopting environmentally responsible initiatives. Although it scored lower, JetBlue’s Fuel Challenge Team seeks ways to conserve fuel and reduce overall consumption. The company, which received a C-, reports savings from new initiatives in both dollars and GHG emissions. As airplanes emit considerable amounts of greenhouse gases, greenhouse gas emissions, fuel consumption, and climate change are critical sustainability topics for airlines. The International Air Transport Association, which represents 230 airlines (93% of air traffic), focuses almost entirely on emissions in its environmental reports and web pages, and boasts tremendous strides in fuel efficiency in the past decade, but admits further emission reductions are necessary and possible (www.iata.org). The majority of the sector’s companies discussed greenhouse gas emissions to some extent in their sustainability reporting, and top ranked companies received excellent environmental intent scores as a result. Overall, over 60% of the companies in the sector addressed climate change. Unfortunately, many of our airline-specific topics were ignored by these companies. Fewer than 10% of the airlines we analyzed addressed air quality on board, and only about one-fifth discussed food waste. Large companies with higher annual revenues performed better on average and covered more sector-specific topics. Although the majority of the companies scored were based in the United States, the two highest scores were received by a Japanese and German airline. The nine lowest scoring companies are American, and all airlines based outside the United States were ranked in the top half of the sector. Bukola Jimoh, CMC ‘11 Roberts Environmental Center Research Analyst Claremont, California February 11, 2010 www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 4 Claremont McKenna College Roberts Environmental Center The Pacific Sustainability Index (PSI) Overview the PSI Scoring System The Pacific Sustainability Index (PSI) uses two systematic questionnaires to analyze the quality of the sustainability reporting—a base questionnaire for reports across sectors and a sector-specific questionnaire for companies within the same sector. The selection of questions is based on, and periodically adjusted to, the most frequently-mentioned topics in over 1,900 corporate sustainability reports analyzed from 2002 through 2009 at the Roberts Environmental Center. The Roberts Environmental Center The Roberts Environmental Center is an environmental research institute at Claremont McKenna College (CMC). Its mission is to provide students of all the Claremont colleges with a comprehensive and realistic understanding of today’s environmental issues and the ways in which they are being and can be resolved--beyond the confines of traditional academic disciplines and curriculum--and to identify, publicize, and encourage policies and practices that achieve economic and social goals in the most environmentally benign and protective manner. The Center is partially funded by an endowment from George R. Roberts (Founding Partner of Kohlberg Kravis Roberts Co. and CMC alumnus), other grants, and gifts, and is staffed by faculty and students from the Claremont Colleges. Methodology Student analysts download relevant English language web pages from the main corporate web site for analysis. Our scoring excludes data independently stored outside the main corporate web site or available only in hard copy. When a corporate subsidiary has its own sustainability reporting, partial credit is given to the parent company when a direct link is provided in the main corporate web site. We archive these web pages as PDF files for future reference. Our analysts use a keyword search function to search reporting of specific topics and, they fill out a PSI scoring sheet (http://www.roberts.cmc.edu/PSI/scoringsheet.asp), and track the coverage and depths of different sustainability issues mentioned in all online materials. scores and ranks When they are finished scoring, the analysts enter their scoring results into the PSI database. The PSI database calculates scores and publishes them on the Center’s web site. This sector report provides an in-depth analysis on sustainability reporting of the largest companies of the sector, as listed in the latest Fortune Global 500 and 1000 lists. Prior to publishing our sector report, we notify companies analyzed and encourage them to provide feedback and additional new online materials, which often improve their scores. What do the scores mean? We normalize all the scores to the potential maximum score. Scores of subsets of the overall score are also normalized to their potential maxima. The letter grades (A+, A, A-, B+, etc.), however, are normalized to the highest scoring company analyzed in the report. Grades of individual companies in the report might be different from grades posted online on the Roberts Environmental Center's web site, since the normalization of scores of an individual company online is not limited to the companies analyzed in the sector report, but also includes other companies of the same sector irrespective of the year of analysis. Companies with scores in the highest 4% get A+ and any in the bottom 4% get F. We assign these by dividing the maximum PSI score obtained in the sector into 12 equal parts then rounding fractional score up or down. This means that A+ and F are under-represented compared the other grades. The same technique applies to the separate categories of environmental and social scores. Thus, we grade on the curve. We assume that the highest score obtained in the sector and any scores near it represent the state of the art for that sector and deserve an A+. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 5 Claremont McKenna College Roberts Environmental Center PSI Scoring in a Nutshell Our analysis of sustainability reporting has a set of basic topics applied to all organizations as well as a series of sectorspecific topics. The topics are divided into environmental and social categories—the latter including human rights—and into three types of information: 1) intent, 2) reporting, and 3) performance. 1. intent The “Intent” topics are each worth 2 points; 1 point for a discussion of intentions, vision, or plans, and a 1 point for evidence of specific actions taken to implement them. 2. reporting The “Reporting” topics are each worth 5 points and are either quantitative (for which we expect numerical data) or qualitative (for which we don’t). For quantitative topics, 1 point is available for a discussion, 1 point for putting the information into perspective (i.e. awards, industry standards, competitor performance, etc., or if the raw data are normalized by dividing by revenue, number of employees, number of widgets produced, etc.), 1 point for the presence of an explicit numerical goal, 1 point for numerical data from a single year, and 1 point for similar data from a previous year. For qualitative topics, there are 3 criteria summed to 5 points: 1.67 points for discussion, 1.67 points for initiatives or actions, and 1.67 points for perspective. 3. Performance For each “Reporting” topic, 2 performance points are available. For quantitative topics, 1 point is given for improvement from the previous reporting period, and 1 point for better performance that the sector average (based on the data used for this sector report normalized by revenue). For qualitative topics we give 1 point for any indication of improvement from previous reporting periods, and 1 point for perspective. The 11 “human rights” topics are scored differently, with 5 “reporting” points; 2.5 points for formally adopting a policy or standard, and 2.5 points for a description of monitoring measures. In addition, there are 2 “performance” points; 1 point for evidence of actions to reinforce policy and 1 point for a quantitative indication of compliance. Distribution of Scores by topics Social, Qualitative Data 29% Social, Quantitative Environmental, Data Qualitative 8% Data 24% Environmental, Quantitative Data 24% Social, Human Rights Data 15% www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 6 Claremont McKenna College Roberts Environmental Center Airline Environmental Intent Topics * Accountability Percent of total possible score for all companies combined. 4 19 Report contact person Environmental structure or management * Management 16 20 21 23 70 Environmental education Environmental management system Environmental accounting Stakeholder consultation * Policy 60 9 10 11 12 13 50 40 Environmental policy statement Climate change/global warming Habitat/ecosystem conservation Biodiversity Green Purchasing * Vision 30 5 6 20 Environmental visionary statement Environmental impediments and challenges 10 Vision Policy Management Accountability 0 Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sector specific questions. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 7 Claremont McKenna College Roberts Environmental Center Airline Environmental Reporting Topics * Emissions to air Percent of total possible score for all companies combined. 112 117 118 231 232 233 Carbon dioxide (CO2) or equivalents (i.e. GHG) Nitrous oxide (N2O) Carbon monoxide (CO) Air quality on board airplane Pandemic prevention Fleet profile * Energy 30 26 27 Energy used/consumption Renewable energy consumption * Management 25 38 39 40 230 20 15 Environmental notices of violation Environmental expenses and/or investments Environmental fines Innovation in air transporation * Recycling 30 32 10 Waste recycled Office recycling rate * Waste 5 Water Waste Recycling Management Energy Emissions to air 0 34 35 37 109 228 229 Waste disposed of Hazardous waste produced Hazardous waste released Packaging materials waste Food Waste Service Items Waste * Water 29 Water used Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sector specific questions. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 8 Claremont McKenna College Roberts Environmental Center Airline Social Intent Topics * Percent of total possible score for all companies combined. 51 Health and Safety, or Social organizational structure 54 Third party validation * 70 60 Accountability Management 17 Workforce profile: Ethnicities/Race 18 Workforce profile: Gender 52 Workforce profile: Age 53 Emergency preparedness program 82 Employee training for career development * Policy 50 40 45 Social policy statement 47 Code of conduct or business ethics 49 Supplier screening based on social or environmental performance/ Supplier management. 30 * 20 80 Employment for individuals with disabilities * 10 Vision 42 Social visionary statement 43 Social impediments and challenges Vision Social Demographic Policy Management Accountability 0 Social Demographic Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sector specific questions. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 9 Claremont McKenna College Roberts Environmental Center Airline Social Reporting Topics * Human Rights Percent of total possible score for all companies combined. 1 7 8 58 59 60 70 61 60 62 63 64 65 50 Sexual harassment Political Contributions Bribery Anti-Corruption practices Corporal punishment of employees Equal opportunity, elimination of discrimination, promotion of diversity, or non-discrimination policy Free association and collective bargaining of employees Fair compensation of employees Forced labor of employees Working hours Use of illegal child labor 40 * Management 2 30 Women in Management * Qualitative Social 20 10 Quantitative Social Qualitative Social Management Human Rights 0 66 67 68 70 72 226 227 Community Development Employee Satisfaction Survey Community Education Occupational health and safety protection Employee volunteerism Noise Local air quality * Quantitative Social 3 74 75 76 77 81 Turnover Rate Recordable incident rate/ Accident indices Lost workday case rate Health and safety citations Health and safety fines Social community investment Notes: * These numbers correspond to the numbers in the PSI questionnaire. Items with numbers higher than 99 are sector specific questions. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 10 Claremont McKenna College Roberts Environmental Center Airline Environmental Intent Element of the PSI Scores Environmental visionary statement Environmental policy statement Environmental structure or management Environmental education Environmental impediments and challenges Climate change/global warming Green Purchasing Environmental management system Stakeholder consultation Habitat/ecosystem conservation Environmental accounting Report contact person Biodiversity 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 11 Claremont McKenna College Roberts Environmental Center Airline Environmental Reporting Element of the PSI Scores Energy used/consumption Fleet profile Carbon dioxide (CO2) or equivalents (i.e. GHG) Waste recycled Renewable energy consumption Water used Waste disposed of Innovation in air transporation Nitrous oxide (N2O) Office recycling rate Hazardous waste produced Packaging materials waste Environmental expenses and/or investments Service Items Waste Carbon monoxide (CO) Hazardous waste released Food Waste Pandemic prevention Air quality on board airplane Environmental notices of violation Environmental fines 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 12 Claremont McKenna College Roberts Environmental Center Airline Social Intent Element of the PSI Scores Code of conduct or business ethics Social visionary statement Employee training for career development Social policy statement Employment for individuals with disabilities Health and Safety, or Social organizational structure Supplier screening based on social or environmental performance/ Supplier management. Workforce profile: Ethnicities/Race Workforce profile: Gender Emergency preparedness program Social impediments and challenges Third party validation Workforce profile: Age 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 13 Claremont McKenna College Roberts Environmental Center Airline Social Reporting Element of the PSI Scores Community Development Equal opportunity, elimination of discrimination, promotion of diversity, or non-discrimination policy Occupational health and safety protection Community Education Employee volunteerism Noise Sexual harassment Anti-Corruption practices Political Contributions Bribery Social community investment Women in Management Free association and collective bargaining of employees Fair compensation of employees Local air quality Working hours Recordable incident rate/ Accident indices Employee Satisfaction Survey Forced labor of employees Use of illegal child labor Corporal punishment of employees Lost workday case rate Turnover Rate Health and safety citations Health and safety fines 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% = Percentage of companies addressing the topics = Percentage of the total possible number of points awarded to all companies combined for each topic, indicating the depth of reporting coverage measured by PSI criteria for each topic. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 14 Claremont McKenna College Roberts Environmental Center EI Scores Rankings Environmental Intent Scores A+ Lufthansa Group A Japan Airlines B+ UAL B+ B+ Southwest Airlines Continental Airlines Southwest Airlines B Air France - KLM Continental Airlines B B- JetBlue Airways Corporation Delta Airlines B- American Airlines C+ British Airways CC- US Airways Group Alaska Air Group,Inc. C- ExpressJet Holdings D+ F AirTran Skywest Inc Lufthansa Group Japan Airlines UAL Air France - KLM JetBlue Airways Corporation Delta Airlines American Airlines British Airways US Airways Group Alaska Air Group,Inc. ExpressJet Holdings AirT ran Skywest Inc 0 25 50 75 100 Environmental intent scores include topics about the firm’s products, environmental organization, vision and commitment, stakeholders, environmental policy and certifications, environmental aspects and impacts, choice of environmental performance indicators and those used by the industry, environmental initiatives and mitigations, and environmental goals and targets. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 15 Claremont McKenna College Roberts Environmental Center ER Scores Rankings Environmental Reporting Scores A+ Japan Airlines B American Airlines B Lufthansa Group American Airlines B C Southwest Airlines British Airways Lufthansa Group C Continental Airlines C C- Air France - KLM UAL C- ExpressJet Holdings C- AirTran D+ D JetBlue Airways Corporation US Airways Group D Delta Airlines DD- Alaska Air Group,Inc. Skywest Inc Japan Airlines Southwest Airlines British Airways Continental Airlines Air France - KLM UAL ExpressJet Holdings AirT ran JetBlue Airways Corporation US Airways Group Delta Airlines Alaska Air Group,Inc. Skywest Inc 0 25 50 75 100 Environmental reporting scores are based on the degree to which the company discusses its emissions, energy sources and consumption, environmental incidents and violations, materials use, mitigations and remediation, waste produced, and water used. They also include use of life cycle analysis, environmental performance and stewardship of products, and environmental performance of suppliers and contractors. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 16 Claremont McKenna College Roberts Environmental Center EP Scores Rankings Environmental Performance Scores A+ American Airlines B Japan Airlines C Air France - KLM Japan Airlines CD+ Southwest Airlines Lufthansa Group Air France - KLM D+ British Airways Southwest Airlines D+ D- AirTran JetBlue Airways Corporation D- ExpressJet Holdings D- Continental Airlines F F US Airways Group UAL F Skywest Inc F F Delta Airlines Alaska Air Group,Inc. American Airlines Lufthansa Group AirT ran British Airways ExpressJet Holdings JetBlue Airways Corporation Continental Airlines Skywest Inc Alaska Air Group,Inc. US Airways Group Delta Airlines UAL 0 25 50 75 100 Environmental performance scores are based on whether or not the firm has improved its performance on each of the topics discussed under the heading of environmental reporting, and on whether the quality of the performance is better than that of the firm’s peers. Scoring for each topic is one point if performance is better than in previous reports, two points if better than industry peers, three points if both. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 17 Claremont McKenna College Roberts Environmental Center SI Scores Rankings Social Intent Scores A+ Lufthansa Group B Southwest Airlines B+ Continental Airlines Lufthansa Group B B+ Air France - KLM UAL Southwest Airlines C+ JetBlue Airways Corporation Continental Airlines C+ B- British Airways Alaska Air Group,Inc. B- American Airlines C- US Airways Group CC ExpressJet Holdings Delta Airlines C AirTran D- Skywest Inc Japan Airlines Air France - KLM UAL JetBlue Airways Corporation British Airways Alaska Air Group,Inc. American Airlines ExpressJet Holdings US Airways Group AirT ran Delta Airlines Skywest Inc 0 25 50 75 100 Social intent scores include topics about the firm’s financials, employees, safety reporting, social management organization, social vision and commitment, stakeholders, social policy and certifications, social aspects and impacts, choice of social performance indicators and those used by the industry, social initiatives and mitigations, and social goals and targets. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 18 Claremont McKenna College Roberts Environmental Center SR Rankings Social Reporting Scores Japan Airlines Lufthansa Group Continental Airlines UAL Alaska Air Group,Inc. American Airlines Southwest Airlines A+ Japan Airlines A+ Lufthansa Group A- Continental Airlines B+ B+ UAL Alaska Air Group,Inc. B American Airlines BB- Southwest Airlines British Airways B- Air France - KLM B- AirTran C+ C Delta Airlines US Airways Group C JetBlue Airways Corporation CD- ExpressJet Holdings Skywest Inc British Airways Air France - KLM AirT ran Delta Airlines US Airways Group JetBlue Airways Corporation ExpressJet Holdings Skywest Inc 0 25 50 75 100 Social reporting scores are based on the degree to which the company discusses various aspects of its dealings with its employees and contractors. They also include social costs and investments. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 19 Claremont McKenna College Roberts Environmental Center SP Rankings Social Performance Scores A+ Japan Airlines B+ Lufthansa Group B- Continental Airlines Lufthansa Group BC+ Alaska Air Group,Inc. UAL Alaska Air Group,Inc. C+ American Airlines C C Southwest Airlines Delta Airlines C AirTran C- British Airways CD+ Air France - KLM ExpressJet Holdings D US Airways Group D D- JetBlue Airways Corporation Skywest Inc Japan Airlines Continental Airlines UAL American Airlines Southwest Airlines AirT ran Delta Airlines Air France - KLM British Airways ExpressJet Holdings JetBlue Airways Corporation US Airways Group Skywest Inc 0 25 50 75 100 Social performance scores are based on improvement, performance better than the sector average, or statements of compliance with established social standards. www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 20 Claremont McKenna College Roberts Environmental Center Visual Cluster Analysis Visual cluster analysis multivariate data of the sort produced by the PSI are difficult to summarize. Here we have created radar diagrams of the performance of each company analysed in the sector by its environmental and social intent, reporting, and performance sorted by company ranking. Maximum scores will match the outer sides of the hexagon which total up to 100 percent. EI = Environmental Intent, ER = Environmental Reporting, EP = Environmental Performance SI = Social Intent, SR = Social Reporting, SP = Social Performance ER EI ER ER 100 100 100 75 75 75 75 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SP SI SR SP SI SR Japan Airlines SP SI SR Lufthansa Group ER SI SR Continental Airlines ER SP SR American Airlines ER Southwest Airlines ER ER 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SP SI SR SP SI SR UAL SI SR Air France - KLM ER SP ER SP SI SR British Airways SP AirTran ER ER 100 100 100 100 100 75 75 75 75 75 50 EP EI 50 EP EI 50 EP EI 50 EP EI 50 25 25 25 25 25 0 0 0 0 0 SI SP SR JetBlue Airways Corporation www.roberts.cmc.edu SI SP SR Delta Airlines SI SP SI SR SP SR ExpressJet Holdings EP SR Alaska Air Group,Inc. ER EP SP 100 SI EI ER 100 75 SI EI ER 100 US Airways Group SI EP SP SR Skywest Inc 2010 Sustainability Reporting of World's Largest Airline Companies 21 Claremont McKenna College Roberts Environmental Center Number of Explicit numerical goals Reported Japan Airlines 14 Lufthansa Group 7 British Airways 2 Continental Airlines 2 0 5 10 15 20 25 Explicit Goals Most Frequently Reported 1 2 3 4 5 6 7 Carbon dioxide (CO2) or equivalents (i.e. GHG) Packaging materials waste Waste disposed of Food Waste Carbon monoxide (CO) Nitrous oxide (N2O) Waste recycled www.roberts.cmc.edu 4 3 3 2 2 2 2 2010 Sustainability Reporting of World's Largest Airline Companies 22 Claremont McKenna College Roberts Environmental Center Number of Topics Showing Performance Improvement over Previous Year Data Japan Airlines 11 AirTran 3 Air France - KLM 2 American Airlines 1 Lufthansa Group 1 0 5 10 15 20 Topics Most Frequently Reported as Having Improvements over previous year data 1 2 3 4 5 6 7 8 9 10 11 12 13 Noise Fleet profile Innovation in air transporation Occupational health and safety protection Pandemic prevention Local air quality Carbon dioxide (CO2) or equivalents (i.e. GHG) Recordable incident rate/ Accident indices Employee volunteerism Community Education Employee Satisfaction Survey Community Development Women in Management www.roberts.cmc.edu 3 2 2 2 1 1 1 1 1 1 1 1 1 2010 Sustainability Reporting of World's Largest Airline Companies 23 Claremont McKenna College B- Roberts Environmental Center Air France - KLM Air France - KLM 2007/2008 Corporate Social Responsibility Report Air France-KLM’s 2007-2008 Corporate Responsibility Report communicates the company’s awareness of environmental issues, such as global warming, the preservation of biodiversity, and the conservation of ecosystems. On board its aircraft, it is making small but significant changes towards becoming more sustainable. It has converted the majority of the paper-based log books and documentation forms used in the cockpit to electronic log books. It is also using lighter pallets to reduce aircraft weight, and therefore decrease fuel usage. The company is incorporating more biodegradable packaging materials, and offering fair-trade coffee and chocolate. Including discussion of other environmental and social topics, explicit numerical goals, and reporting of any improvement between the current and previous year performance would have improved Air FranceKLM’s overall PSI scores. Olivea Omalara Fayola Callender-Scott E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E E 40% ES A S 65 37 S 60% SSA 0 25 50 65 EI 75 20 10 ER EP 20 Air France - KLM SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 6 8 75 Excellent Policy 7 10 70 Good Vision 3 4 75 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 7 42 17 Needs substantial improvement Energy 4 14 29 Needs improvement Management 3 28 11 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 6 42 14 Needs substantial improvement Water 3 7 43 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 7 10 70 Good Policy 3 6 50 Good Social Demographic 2 2 100 Excellent Vision 3 4 75 Excellent Score Max Score % General Comment 28 77 36 Needs improvement Needs improvement Social Reporting Question Category Human Rights Management 2 7 29 Qualitative Social 22 49 45 Needs improvement Quantitative Social 3 42 7 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 24 Claremont McKenna College C Roberts Environmental Center AirTran AirTran 2007/2008 CSR Report and 2009 Web Pages AirTran has done an excellent job of providing information on its work with the community through different volunteer organizations such as “Habitat for Humanity” and the “Make a Wish Foundation.” The report shows exceptional generosity in corporate giving to various community organizations including the A+ awards program in support of youth education. On the other hand, AirTran does not offer much information on its environmental commitment. When environmental topics are mentioned, they are vague or brief. It would be beneficial if the company would include discussions of its environmental actions, policies, and goals. There seems to be no branch or contact person specifically related to environmental wellbeing. AirTran does provide some information on its airplane emission levels but it is lumped together as one large “emissions” statement, which ought to be broken down into its various components (CO, CO2, NOX.) AirTran describes its commitment to customers’ health and safety, but it does not go into much detail about the health and safety of its employees. It would also be helpful if the company discussed some of the facts and figures of its workforce such as race, gender, and age distributions. Teija Campbell Mortvedt E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 36 E 30% ES A S 19 0 25 50 15 5 S 70% SSA 22 19 EI 75 ER EP AirTran SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 4 8 50 Good Policy 0 10 0 Needs substantial improvement Vision 1 4 25 Needs improvement Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 11 42 26 Needs improvement Energy 2 14 14 Needs substantial improvement Management 4 28 14 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 42 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 1 4 25 Needs improvement Score Max Score % General Comment 28 77 36 Needs improvement Needs improvement Social Reporting Question Category Human Rights Management 3 7 43 Qualitative Social 22 49 45 Needs improvement Quantitative Social 2 42 5 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 25 Claremont McKenna College C Roberts Environmental Center Alaska Air Group,Inc. Alaska Air Group, Inc 2009 Annual Report and 2009 Web Pages Alaska Air Group has good 2009 social sustainability reporting, demonstrating an awareness of the social impact the company has on the communities it flies to, and has made a commitment to support these communities by contributing to and investing in programs that promote education, community development, environmental projects, and employee volunteerism. For instance, Alaska Air Group raised $ 600,000 for the Make-A-Wish Foundation as well as donating over $100,000 to educational programs recommended by its employees. In addition, Alaska Air Group has shown dedication to supporting and enhancing the experience of its employees as evidenced in programs such as The Employee Assistant Fund (EAF). However, its evident commitment to environmental sustainability is very weak. Although the website has a virtual assistance, I found myself spending several hours searching outside the Alaska Air Group site for any information on the company’s stance on environmental policies. Finally, after finding a link to the environmental manual, to my dismay it was on a login-in basis. A little more openness is certainly called for, and would improve the PSI score as well as the company’s image, at least in my eyes. Aden Eyob F. Weldegiworgis E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 16 % E ES A 42 43 32 31 S S 84% SSA 0 25 50 75 EI 5 0 ER EP Alaska Air Group,Inc. SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 1 8 13 Needs substantial improvement Policy 4 10 40 Needs improvement Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 3 42 7 Needs substantial improvement Energy 2 14 14 Needs substantial improvement Management 0 28 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 42 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 2 10 20 Needs substantial improvement Policy 4 6 67 Good Social Demographic 1 2 50 Good Vision 2 4 50 Good Score Max Score % General Comment 56 77 73 Good Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 12 49 24 Needs substantial improvement Quantitative Social 1 42 2 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 26 Claremont McKenna College B Roberts Environmental Center American Airlines American Airlines 2009 Web Pages American Airlines’ has some sustainability reporting on its web site, but no formal sustainability report. Reporting on energy, water, recycling, and overall waste includes numerical data and is well documented but should include details of hazardous waste releases and should report on environmental management activities such as fines and investments, food sources and recycling, service items, packaging, and materials waste. The company has implemented programs to track hazardous waste resulting in a significant reduction in water use and hazardous waste produced within the past six years. Surprisingly, there is no discussion of climate change, nor any mention of conservation, biodiversity, or environmental accounting. The qualitative social reporting is detailed in some areas, but needs more reporting on specific activities and initiatives. No quantitative data about social activities are reported, nor is there any discussion about the various aspects of human rights most good reporters include. Carolyn Hendricks Collins E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 58 ES A E 46% S SSA 0 25 50 38 31 41 30 21 S 54% American Airlines EI 75 ER EP SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 5 8 63 Good Policy 4 10 40 Needs improvement Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 17 42 40 Needs improvement Energy 4 14 29 Needs improvement Management 3 28 11 Needs substantial improvement Recycling 6 14 43 Needs improvement Waste 7 42 17 Needs substantial improvement Water 4 7 57 Good Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 5 10 50 Good Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 1 4 25 Needs improvement Score Max Score % General Comment 35 77 45 Needs improvement Social Reporting Question Category Human Rights Management 2 7 29 Needs improvement Qualitative Social 25 49 51 Good Quantitative Social 4 42 10 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 27 Claremont McKenna College C+ Roberts Environmental Center British Airways British Airways 2007/2008 CSR Report and 2009 Web Pages British Airways’ 2007-2008 Sustainability Report needs more breadth and depth. It demonstrates awareness of the company’s environmental impacts and documents practices to minimize the contributions to climate change, air quality, noise, waste, and renewable resources, and promises to protect ecosystems and biodiversity as indicated by its compliance with the Wildlife Trust’s New Biodiversity Benchmark for Land Management, and Global Canopy Program. But the report lacks quantitative information on environmental expenditures, hazardous waste releases, disposal of packing materials, food, and service items, and any substantial information on human rights, management, health and safety programs. Aden Eyob F. Weldegiworgis E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 50 E 38% ES A S S 62% SSA 0 25 50 46 37 21 20 5 EI 75 ER EP British Airways SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 2 8 25 Needs improvement Policy 6 10 60 Good Vision 3 4 75 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 10 42 24 Needs substantial improvement Energy 2 14 14 Needs substantial improvement Management 4 28 14 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 4 42 10 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 3 10 30 Needs improvement Policy 4 6 67 Good Social Demographic 2 2 100 Excellent Vision 3 4 75 Excellent Score Max Score % General Comment 35 77 45 Needs improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 18 49 37 Needs improvement Quantitative Social 3 42 7 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 28 Claremont McKenna College B Roberts Environmental Center Continental Airlines Continental Airlines 2009 Environmental Report, Global Citizenship Report and Web Pages Continental Airlines demonstrates its commitment to protecting and preserving the environment through its initiatives to reduce emissions and fuel consumption using innovative technology and equipment. In 2009, Continental released a publication, "Commitment to Environmental and Social Responsibility", which details the steps that it has already taken, as well as those that it will take in the near future. Continental outlines its corporate initiative, Eco-Skies, intended to reduce the company’s own carbon footprint, while encouraging its customers and suppliers to do the same. The airline’s statements on reducing its carbon footprint lack quantitative data regarding its actual emissions, the company’s improvements, and the results of certain programs, such as its water conservation and waste recycling programs. Continental engages in efforts of social sustainability as well. Within the community, Continental invests in local projects as well as sponsorships of organizations that promote and foster health and medicine, culture, education, and sports. The airline’s cargo division has contributed to humanitarian efforts by transporting provisions, volunteers, and relief assistance to disaster-torn areas, including communities that have endured hurricanes, wildfires, and earthquakes. Internally, Continental promotes effective communication and cooperation among its employees. The Commitment to Social Responsibility does not provide any quantitative data on recordable incident rate, lost workday case rate, health and safety citations, or turnover rate, however. Emma Ryland Reese E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 32% ES A S 69 51 S 68% SSA 0 25 50 69 32 20 Continental Airlines 2 EI ER EP SI SR SP 75 Environmental Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 4 8 50 Good Policy 8 10 80 Excellent Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 9 42 21 Needs substantial improvement Energy 2 14 14 Needs substantial improvement Management 1 28 4 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 8 42 19 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 8 10 80 Excellent Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 56 77 73 Good Needs improvement Social Reporting Question Category Human Rights Management 2 7 29 Qualitative Social 18 49 37 Needs improvement Quantitative Social 2 42 5 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 29 Claremont McKenna College C- Roberts Environmental Center Delta Airlines Delta Air Lines 2007 Corporte Responsibility Report and 2009 Web Pages Delta Airline's provides almost no sustainability reporting this year, despite performing adequately in previous years. The company should expand on the little information they currently have available. Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points E Distribution of points 58 E 3 1% ES A S 32 SSA 0 25 50 22 19 S 69% EI 75 7 0 ER EP Delta Airlines SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 2 8 25 Needs improvement Policy 7 10 70 Good Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 0 42 0 Needs substantial improvement Energy 2 14 14 Needs substantial improvement Management 0 28 0 Needs substantial improvement Recycling 3 14 21 Needs substantial improvement Waste 0 42 0 Needs substantial improvement Water 2 7 29 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 3 6 50 Good Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 35 77 45 Needs improvement Social Reporting Question Category Human Rights Management 0 7 0 Needs substantial improvement Qualitative Social 12 49 24 Needs substantial improvement Quantitative Social 3 42 7 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 30 Claremont McKenna College C- Roberts Environmental Center ExpressJet Holdings Express Jet 2009 Web Pages, Principles of Conduct, and Environmental Policy Statement ExpressJet Holdings shows a marked concern for the environment in its Environmental Policy Statement and on its website. Its use of a newer, more fuel-efficient fleet of planes and its onboard recycling program are commendable. Unfortunately, only a few other initiatives are documented. ExpressJet could greatly improve its score by providing quantitative information about its recycling program, CO2 emissions, energy used, fuel consumption, and water use, and efforts to limit emissions. ExpressJet should also clearly state its stance on global warming. Furthermore, the report needs to include more information on fair employment practices, and efforts to provide for the upward mobility of its employees and a point of contact information specifically for sustainability matters. Noah Monte Proser E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 27 E 43% ES A S S 57% SSA 0 25 50 23 17 20 16 2 EI ER EP ExpressJet Holdings SI SR SP 75 Environmental Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 0 8 0 Needs substantial improvement Policy 2 10 20 Needs substantial improvement Vision 3 4 75 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 4 42 10 Needs substantial improvement Energy 1 14 7 Needs substantial improvement Management 9 28 32 Needs improvement Recycling 1 14 7 Needs substantial improvement Waste 3 42 7 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 1 10 10 Needs substantial improvement Policy 4 6 67 Good Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 28 77 36 Needs improvement Management 0 7 0 Needs substantial improvement Qualitative Social 5 49 10 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 31 Claremont McKenna College A+ Roberts Environmental Center Japan Airlines Japan Airlines 2007 CSR and 2009 Web Pages Japan Airlines Corporation does a great job outlining its plans and goals to reduce its carbon footprint and impact on the environment. In a statement to the public, its CEO stated that with the news that the airline industry is responsible for 2% of the world's CO2 emissions, Japan Airlines would put forth its best possible effort to reduce its own emissions. With a goal of 20% emission reduction by 2010, Japan Airlines has decreased by 17% by the fiscal year 2007. It has also made a significant effort to reduce the amount of packaging and food waste as well as the noise generated in surrounding areas. The environmental report is thorough and stresses key topics of environmental sustainability. It is also clear that it has produced a solid effort to benefit neighboring communities. Jeffrey Alan Astor E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 100 85 E 4 1% ES A S S 59% SSA 0 25 50 60 48 58 14 EI 75 ER EP Japan Airlines SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 8 8 100 Excellent Policy 8 10 80 Excellent Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 23 42 55 Good Energy 6 14 43 Needs improvement Management 9 28 32 Needs improvement Recycling 5 14 36 Needs improvement Waste 10 42 24 Needs substantial improvement Water 3 7 43 Needs improvement Social Intent Question Category Score Max Score % General Comment Accountability 4 4 100 Excellent Management 10 10 100 Excellent Policy 6 6 100 Excellent Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 49 77 64 Good Social Reporting Question Category Human Rights Management 7 7 100 Excellent Qualitative Social 42 49 86 Excellent Quantitative Social 6 42 14 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 32 Claremont McKenna College C Roberts Environmental Center JetBlue Airways Corporation JetBlue 2006 Environmental and Social Report and 2009 Web Pages JetBlue Airways may be new to the world of sustainability reporting, but since its first flight in 2000, the company has been well aware of what it means to be an environmentally and socially responsible company. The US Department of Transportation has reported that JetBlue is the most fuelefficient airline in America. As a younger and smaller company, JetBlue was able to start with more current values, ethics and better processes than most airlines. It makes a strong and apparent effort to interact well with its employees and it customers as it focuses on being transparent, and it is very willing to engage in dialogue with its customers. In 2006, JetBlue began gathering data to create its first Environmental and Social Performance Report. Although the report lacks much quantitative data, the efficiency of JetBlue's new fleet and its partnerships with other responsible companies, show it is on the right path. In the future we should be seeing much more detailed CSR reports from JetBlue, as well as follow ups on some of its current innovative research to incorporate things such as a nontoxic de-icing system, more efficient engines, and its new terminal at JFK, which focuses on recycling spilled jet fuel, using paperless tickets, re-using cooking oils, and more. Brittany Nunnink E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E E 40% ES A S 62 S 60% SSA 0 25 50 EI 75 54 24 11 2 ER EP SI SR 12 JetBlue Airways Corporation SP Environmental Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 6 8 75 Excellent Policy 6 10 60 Good Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 6 42 14 Needs substantial improvement Energy 2 14 14 Needs substantial improvement Management 0 28 0 Needs substantial improvement Recycling 1 14 7 Needs substantial improvement Waste 2 42 5 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 1 10 10 Needs substantial improvement Policy 4 6 67 Good Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 21 77 27 Needs improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 0 7 0 Qualitative Social 14 49 29 Needs improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 33 Claremont McKenna College A- Roberts Environmental Center Lufthansa Group Lufthansa Sustainability Report 2008 Lufthansa's 115-page corporate social responsibility report is well-crafted and detailed. The company's dedication to the environment is evident through its complete reporting of almost all environmental data, and through clear initiatives and programs. The majority of the information about the company’s social and corporate governance policies is found in the United Nations Global Compact, of which Lufthansa is a signatory. The only information noticeably missing from Lufthansa’s report are data regarding reported incidents, environmental health and safety violations/fines, and lost workday case rates. Lufthansa’s report does not follow GRI guidelines and has not been validated by a third party, but it is still very complete and contains the vast majority of the information included in the PSI. Caitrin Elise O'Brien E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 92 85 E 36% ES A 59 S S 64% SSA 0 25 50 44 31 5 EI 75 ER EP Lufthansa Group SI SR SP Environmental Intent Question Category Accountability Score Max Score % General Comment 4 4 100 Excellent Management 6 8 75 Excellent Policy 10 10 100 Excellent Vision 4 4 100 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 15 42 36 Needs improvement Energy 3 14 21 Needs substantial improvement Management 6 28 21 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 7 42 17 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 10 10 100 Excellent Policy 4 6 67 Good Social Demographic 2 2 100 Excellent Vision 4 4 100 Excellent Score Max Score % General Comment 63 77 82 Excellent Social Reporting Question Category Human Rights Management 3 7 43 Needs improvement Qualitative Social 28 49 57 Good Quantitative Social 1 42 2 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 34 Claremont McKenna College D- Roberts Environmental Center Skywest Inc SkyWest Inc. 2009 Web Pages SkyWest Airlines expresses no commitment to bettering its environment or community. It briefly describes its safety policies and employee diversity, but the information is cursory and shows no initiative. The company seems to be uninterested in community development and its web pages have no information on sustainability, climate change, or any other environmental issues. SkyWest Inc. should start developing programs that promote corporate responsibility and sustainable growth if it hopes to score better in the future. Bukola Jimoh E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 5 E 29% ES A S S 71% SSA 0 25 50 0 EI 75 4 4 3 Skywest Inc 0 ER EP SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 8 0 Needs substantial improvement Policy 0 10 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 3 42 7 Needs substantial improvement Energy 0 14 0 Needs substantial improvement Management 0 28 0 Needs substantial improvement Recycling 0 14 0 Needs substantial improvement Waste 0 42 0 Needs substantial improvement Water 0 7 0 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 0 10 0 Needs substantial improvement Policy 1 6 17 Needs substantial improvement Social Demographic 0 2 0 Needs substantial improvement Vision 0 4 0 Needs substantial improvement Social Reporting Question Category Score Max Score % General Comment Human Rights 7 77 9 Needs substantial improvement Management 0 7 0 Needs substantial improvement Qualitative Social 2 49 4 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 35 Claremont McKenna College B Roberts Environmental Center Southwest Airlines Southwest Airlines: 2008 Cares Report and 2010 Web Pages Southwest Airlines states that it is committed to delivering the best for its employees, customers, and the environment, and does discuss a few important environmental issues such as energy, but provides almost nothing on the company’s own environmental performance. It does, however, have many commendable social activities that benefit its communities and employees. There seems to be a determination to pursue more aggressive sustainability initiatives, but there is not much reporting yet. Jacyln T. D'Arcy E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E 69 E 44% ES A S SSA 0 25 50 69 37 30 S 56% 26 7 EI 75 ER EP Southwest Airlines SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 7 8 88 Excellent Policy 8 10 80 Excellent Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 12 42 29 Needs improvement Energy 4 14 29 Needs improvement Management 4 28 14 Needs substantial improvement Recycling 5 14 36 Needs improvement Waste 8 42 19 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 1 4 25 Needs improvement Management 7 10 70 Good Policy 5 6 83 Excellent Social Demographic 1 2 50 Good Vision 4 4 100 Excellent Score Max Score % General Comment 42 77 55 Good Social Reporting Question Category Human Rights Management 3 7 43 Needs improvement Qualitative Social 10 49 20 Needs substantial improvement Quantitative Social 4 42 10 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 36 Claremont McKenna College B- Roberts Environmental Center UAL UAL 2008-2009 Corporate Responsibility Report and 2010 Web Pages UAL summarizes its sustainability activities in its 2008-2009 Corporate Responsibility Report. Quantitative social and environmental data are condensed in one page, making it very easy to analyze. There are, however, no historical data, quantitative numerical goals, or reporting of performance improvement, likely due to the first attempt to gather all data into one report. The narration provided in the report is comprehensive, touching the bases of many fundamental sustainability aspects in airline industry. But most of the reporting is positive, leaving out much discussion about the clear challenges faced by the industry and options of new innovation to overcome them. However, this report is still quite a good start. Owen Black Brewer E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Source of points Distribution of points E E 32% ES A S 69 S 68% SSA 0 25 50 62 47 30 17 UAL 0 EI 75 ER EP SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 5 8 63 Good Policy 7 10 70 Good Vision 3 4 75 Excellent Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 6 42 14 Needs substantial improvement Energy 2 14 14 Needs substantial improvement Management 4 28 14 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 3 42 7 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 2 4 50 Good Management 6 10 60 Good Policy 6 6 100 Social Demographic 0 2 0 Needs substantial improvement Vision 2 4 50 Good Score Max Score % General Comment 42 77 55 Good Excellent Excellent Social Reporting Question Category Human Rights Management 6 7 86 Qualitative Social 23 49 47 Needs improvement Quantitative Social 2 42 5 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 37 Claremont McKenna College C- Roberts Environmental Center US Airways Group US Airways 2008 Environmental Report The US Airways 2008 Environmental Report takes a very superficial and basic approach to environmental reporting. Almost no data are provided and the report is mostly composed of vague statements about the company's environmental initiatives and goals. The company provides the most substantial information for its LEED-certified buildings, the benefits of which are outlined in detail, and compose the bulk of the sustainability report. There is no mention of climate change or global warming, which should be a matter of great importance, particularly for a company in an industry that relies heavily on fossil fuel. It is clear that this environmental report is a hastily thrown-together compilation designed to appease stakeholders and that US Airway's environmental initiatives are not fully developed, or at least not in a form the company wishes to make public. Caitrin Elise O'Brien E=Total Environmental Score, ESA=Environmental Sector Average Score, EI=Environmental Intent, ER=Environmental Reporting, EP=Environmental Performance, S=Total Social Score, SSA=Social Sector Average Score, SI=Social Intent, SR=Social Reporting, SP=Social Performance Comparison with sector averages Distribution of points Source of points E 35 E 33% ES A 23 S S 67% SSA 0 25 50 25 12 9 US Airways Group 0 EI 75 ER EP SI SR SP Environmental Intent Question Category Score Max Score % General Comment Accountability 3 4 75 Excellent Management 0 8 0 Needs substantial improvement Policy 4 10 40 Needs improvement Vision 2 4 50 Good Environmental Reporting Question Category Score Max Score % General Comment Emissions to air 4 42 10 Needs substantial improvement Energy 1 14 7 Needs substantial improvement Management 0 28 0 Needs substantial improvement Recycling 2 14 14 Needs substantial improvement Waste 2 42 5 Needs substantial improvement Water 1 7 14 Needs substantial improvement Social Intent Question Category Score Max Score % General Comment Accountability 0 4 0 Needs substantial improvement Management 2 10 20 Needs substantial improvement Policy 2 6 33 Needs improvement Social Demographic 2 2 100 Excellent Vision 0 4 0 Score Max Score % General Comment 21 77 27 Needs improvement Needs substantial improvement Social Reporting Question Category Human Rights Management 3 7 43 Needs improvement Qualitative Social 12 49 24 Needs substantial improvement Quantitative Social 0 42 0 Needs substantial improvement www.roberts.cmc.edu 2010 Sustainability Reporting of World's Largest Airline Companies 38 39 Air France - KLM, AirTran, Alaska Air Group,Inc., American Airlines, British Airways, Continental Airlines, ExpressJet Holdings, Japan Airlines, JetBlue Airways Corporation, Lufthansa Group, Northwest Airlines, Skywest Inc, Southwest Airlines, UAL, US Airways Group Roberts Environmental Center The Roberts Environmental Center is a research institute at Claremont McKenna College, endowed by George R. Roberts, Founding Partner, Kohlberg Kravis Roberts & Co. The Center is managed by faculty and staff, and its research, including the material in this report, is done by students at the Claremont Colleges. Claremont McKenna College Claremont McKenna College, a member of the Claremont Colleges, is a highly selective, independent, coeducational, residential, undergraduate liberal arts college with a curricular emphasis on economics, government, and public affairs. The Claremont Colleges The Claremont Colleges form a consortium of five undergraduate liberal arts colleges and two graduate institutions based on the Oxford/Cambridge model. The consortium offers students diverse opportunities and resources typically found only at much larger universities. The consortium members include Claremont McKenna College, Harvey Mudd College, Pitzer College, Pomona College, Scripps College, Keck Graduate Institute of Applied Life Sciences, and the Clremont Graduate University which—includes the Peter F. Drucker and Masatoshi Ito Graduate School of Management. Contact Information Dr. J. Emil Morhardt, Director, Phone: 909-621-8190, email: emorhardt@cmc.edu Elgeritte Adidjaja, Research Fellow, Phone: 909-621-8698, email: eadidjaja@cmc.edu Roberts Environmental Center, Claremont McKenna College, 925 N. Mills Avenue, Claremont, CA 91711-5916, USA.