Air New Zealand has launched a major drive to “future-proof” its business partly due to its belief a global carbon price will emerge in the coming years.
The aviation sector is responsible for an estimated 2 to 4 per cent of global carbon emissions, making it a target of environmentalists concerned about climate change.
At some point when carbon is priced – and it is coming – then we will be more ready for it than our competitors and it will improve our relative competitiveness as a result.
At a time when some banks are refusing to fund coal projects due to their impact on the environment, Air NZ chief executive Christopher Luxon said it was in the interests of the environment, investors and customers for the airline to change its business practices.
Christopher Luxon, Air New Zealand chief executive, says the airline is preparing for a global carbon price. Photo: Supplied
The carrier already takes part in New Zealand’s emissions trading scheme that applies to the 15 to 20 per cent of its emissions that occur domestically, but Mr Luxon said it needed to be prepared for a stricter global regime.
Mr Luxon said Air NZ was expected to grow its capacity by 34 per cent over the next five years, but fuel consumption would rise at a lower rate of 19 per cent.
The airline will also look to cut fuel use on the ground by replacing all of its road vehicles and ground equipment with 100 per cent electric vehicles where feasible by the end of 2017. The first electric vehicles will be delivered later this year.
Mr Luxon said the environmental component was an important part of the carrier’s sustainability focus, but its newly formed sustainability advisory panel was also focused on social and economic sustainability.
Initiatives include working with Tourism New Zealand to ensure tourism is sustainable throughout the year rather than focused on peak periods as well as ensuring the airline’s 4500 suppliers also had sustainable business practices.
As an example, Air NZ now recycles its crew uniforms. Unbranded jackets go to charitable organisations and other garments are recycled and converted into products like carpet underlay, furniture and blankets, saving 6.4 tonnes of material going to landfill each year as well as the disposal costs.
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