Sustainable Development Report 2011
Overview of 2011
Below are some of our financial, operational, environmental and social highlights from 2011:
Financial and Operational
$5.5 27.6 1,649,000 FUEL AS DELIVERY OF
BILLION MILLION TONNES 41.5% 6 BOEING
4 BOEING 747-8F
• New cargo markets at Bengaluru, Chongqing, • New Business Class seats installed in 15 aircraft • Cargo load factor fell by 8.5%
Chengdu and Zaragoza • Mobile boarding pass service introduced in Auckland • Cargo joint venture, Air China Cargo, launched
• New passenger routes to Abu Dhabi and daily • Refurbishment of our Business Class lounge,
flights to Chicago The Wing, at Hong Kong International Airport
15,851 11.6% 19.8% 3RD YEAR ON THE
Contents THOUSAND TONNES
SINCE 1998 GLOBAL INDEX
Overview of 2011
• Adoption of electronic cargo airway bills • “Topping off” of the new Cathay Pacific Cargo • Participation in the European Commission’s long-term
01 A Joint Message from the Chairman • First Cathay Pacific lounge refurbishment aspiring Terminal, which contains sustainability climate change monitoring programme, IAGOS
and Chief Executive to LEED standard at San Francisco • Became a member of the Asia Pacific Business and
• 17,967 tCO2 offset in 2011 by staff and passengers • Partnership with Swire Hotels on our carbon offset Sustainability Council (APBSC)
02 Understanding Our Business scheme, FLY greener
04 Approach to Managing Our Business
05 Stakeholder Engagement
06 Corporate Governance OVER CX AWARDED
10 Operating Our Flights
THE “FIVE YEARS PLUS”
12 Managing Our Infrastructure FOR CX AND KA HONG KONG STAFF COMPANY
14 Interacting with Customers • Evaluation of English On Air programme with • Dragonair Youth Aviation Academy established
reference to the London Benchmarking Group model • Staff appeal efforts for those affected by the New
16 Working with Our Supply Chain • Cathay Pacific Green Explorers programme for young Zealand and Japan earthquakes and Thai floods
18 Investing in People and Communities • Staff performance management system
• Cathay Pacific Charitable Fund launched re-structured to focus on staff development
and career progression
Cathay Pacific Sustainable Development Report 2011 1
“Sustainability is integral to the
success and long-term viability of
Cathay Pacific Airways.”
A Joint Message
The sustainability challenge at Cathay Pacific order to excel, we need to anticipate and provide for the changing
needs of our customers, staff and business partners, honour our
Sustainability is integral to the success and long-term viability commitments to the environment and to the wider community and
of Cathay Pacific Airways. As an airline, we can only remain ensure we have the right tools and resources to grow our business
profitable in a thriving economy which sustainably provides for for the future.
the communities that support our business. Finding ways to
minimise any negative impact on the health of the societies and Whilst it has not always been a simple matter to find environmentally
environment in which we operate has therefore become a priority. sound solutions that are both operationally and economically feasible,
the continuing quest to do so has provided new opportunities
We believe that for real sustainability to be achieved at Cathay for innovation and lateral thinking. Through the resourcefulness,
Pacific, it has to be fully integrated into our business strategy. To creativity and dedication of our staff and with the cooperation of our
this end, we have been formulating our Sustainable Development business partners, we have been able to build the case for adopting
Strategy over the last two years. In 2011, we identified five areas many of these initiatives – some small, some more significant –
where we believe we should focus our efforts in addressing and they are now adding value to the business, as well as bringing
sustainability: flights, customers, staff and the community, positive benefits to the community and environment.
infrastructure and the supply chain. These areas are all integral
to the running of our business and the structure of this year’s We have not yet found the most effective solutions to all the
Sustainable Development report reflects these priorities. challenges we face today, but we remain confident that we can –
and indeed we must – do so. In the meantime, we will continue
One of our biggest challenges is the cyclical and volatile nature to plan for the future, to concentrate on attaining the best possible
of the aviation industry, where more often than not, we need to outcomes for our stakeholders and to strive for operational
focus on immediate issues such as rising fuel prices, operational excellence in everything we do, in order to achieve our vision
disruptions, economic downturns, natural disasters – or even social of being the world’s best airline.
unrest. Our industry currently faces testing times and some of
these issues are highlighted in the Overview of 2011 section. But Sustainability is a journey and we are committed to it for the long
while we need to take a pragmatic approach to dealing with these haul; we realise that this path will not always be easy, but we know
Christopher Pratt John Slosar problems in the short term, it is vital that our overarching strategy that it is the right one.
Chairman Chief Executive for the airline reflects a clear focus on the longer term picture. In
2 Cathay Pacific Sustainable Development Report 2011
Understanding Environmental indicators table
Aircraft Operations units 2011* †
Social indicators table
Issue units 2011+ 2010+
Our Business ATK
Total CX Group workforce
All Flights China no. 825 749
Outports no. 5,549 5,340
Fuel Consumption thousand 5,032 4,818 by Employment Type
Cathay Pacific is an international airline registered and based in
tonnes Flight Crew no. 3,133 3,022
Hong Kong, offering scheduled passenger and cargo services to
162 destinations in 42 countries and territories. As Hong Kong’s Fuel grammes/ATK 191 197 Cabin Crew no. 10,520 9,740
major airline, we provide vital links for trade, investment in Efficiency improvement 11.6% 8.7% Ground Staff no. 8,603 8,120
business and leisure travel. Through our passenger and cargo since 1998 % Subsidiary Staff no. 5,902 5,682
services under Cathay Pacific, Dragonair and Air Hong Kong, grammes/RTK 261 249
we connect Hong Kong to the world. Cathay Pacific and its Average hours of training per year
improvement 19.8% 23.4% Flight Crew hrs 44 47
subsidiaries now employ over 29,000 people worldwide.
since 1998 % Cabin Crew hrs 62 38
Global CO2 thousand 15,851 15,175
Major subsidiaries and associates Airport Staff hrs 32 25
emissions tonnes in CO2e Engineering Staff hrs 264 294
Cathay Pacific Catering Services (HK) Limited 100%
grammes/ATK 601 620 Subsidiary Staff hrs 21 21
Cathay Pacific Holidays Limited 100% improvement 11.6% 8.7% Employee covered under collective % 2.0 3.4
Hong Kong Airport Services Limited 100% since 1998 % bargaining agreement (2)
Hong Kong Dragon Airlines Limited 100% grammes/RTK 821 783 Employees receiving % 100 100(1)
Vogue Laundry Service Limited 100% improvement 19.8% 23.4% performance reviews
since 1998 % + Covers, CX, KA, 100% owned Hong Kong-based Note:
Air Hong Kong Limited 60%
Other indicators (1) subsidiaries, and Air Hong Kong CX: Cathay Pacific Airways
Air China Limited 19.53% (1) Includes CX, KA, CPCS, HAS. KA: Hong Kong Dragon Airlines
(2) % of employees under collective bargaining
Electricity consumption mWh 95,442 93,232 agreements are reported where it is applicable
CPCS: Cathay Pacific Catering Services
HAS: Hong Kong Airport Services
Selected awards for 2011 Potable water m3 741,814 724,933 and in accordance with local legislation. We only
have data for Australian, Canadian, and UK outports.
Cathay Pacific Paper & cardboard tonnes 1,826 1,679
Airline of the Year Aluminium cans kg 77,678 37,671
3rd South East CEO Conclave
Best Frequent Flyer Programme – Asia Miles Plastic recycled kg 89,737 40,463
2011 Business Traveller Asia-Pacific Travel Awards
HKAEE Gold Award 2010 * incorporates KA
Hong Kong Awards for Environmental Excellence (HKAEE) † Fuel consumption includes testing, training, and wet-lease flights
(1) For Hong Kong and 100% owned Hong Kong-based subsidiaries.
(2) CPCS receives significant amount of cardbox from its procurement that are recycled.
Dragonair 1 tonne of fuel = 3.15 tonne of CO2
GWP of CO2 is 1; assumes that all other GHG gases are negligible as these impacts
World’s Best Regional Airline still uncertain.
2011 World Airline Awards (Skytrax)
Air Cargo Excellence Award
2011 “Air Cargo World” Magazine
Visit the report website for the complete table.
Cathay Pacific Sustainable Development Report 2011 3
Economic Value Added 2011 2010 % Change
For the year ended 31 December 2011 HK$M HK$M
Direct economic value generated
Turnover 98,406 89,524 9.9%
Finance income 982 677 45.1%
Surplus on sales of investments – 2,165 -100.0%
Gain on deemed disposal of an associate – 868 -100.0%
Share of profits / (losses) of associated companies 1,717 2,587 -33.6%
101,105 95,821 5.5%
Economic value distributed
Purchases of goods and services 71,949 58,294 23.4%
Employee wages and benefits 14,772 13,850 6.7%
Payments to providers of capital 3,941 6,207 -36.5%
Taxation 803 1,462 -45.1%
Community investments including charitable donation
– Direct payment 17 11 54.5%
– In the form of discounts on airline travel 6 5 20.0%
91,488 79,829 14.6%
Economic value retained
– Depreciation 6,127 6,316 -3.0%
– Profit / (loss) after dividends 3,455 9,681 -64.3%
Retained for re-investment and future growth 9,582 15,997 -40.1%
The above table summarises the distribution of the economic value generated from the Group which includes Cathay Pacific and all its subsidiaries including Dragonair and
Air Hong Kong. Share of losses / profits of associated companies include our share of losses / profits of Air China. Please refer to our 2011 Annual Report page 96-97 for details
of our principal subsidiaries and associates.
Cathay Pacific Group Fleet profile as of 31 December 2011
Cathay Pacific Fleet profile
Aircraft Type (A/C)
777-200 777-300 777-300ER 747-400 747-400F 747-400ERF 747-8F A330-300 A340-300 TOTAL
No. of Operating A/C in Subfleet 5 12 24 21 14 6 4 33 13 132
Average age of Operating Subfleet (years) 14.57 10.62 2.38 19.56 16.01 3.02 0.10 9.21 14.60 10.57
Passenger x x x x x x
Freighter x x x
Dragonair Fleet profile Air Hong Kong Fleet profile
AIRBUS AIRBUS BOEING
Aircraft Type (A/C) Aircraft Type (A/C)
A320-200 A321-200 A330-300 TOTAL A300-600F 747-400BCF TOTAL
No. of Operating A/C in Subfleet 11 6 15 32 No. of Operating A/C in Subfleet 8 3 11
Average age of Operating Subfleet (years) 9.10 11.05 10.19 9.98 Average age (years) 6.72 21.20 14.65
Passenger x x x Passenger
Freighter Freighter x x
4 Cathay Pacific Sustainable Development Report 2011
Toward a sustainable future Sustainable Development Strategy A key component of this Strategy is to encourage staff to mitigate
or reduce the social and environmental impacts by making their
At Cathay Pacific, we are committed to a journey that leads to Our Sustainable Development Strategy comprises five “priority areas”, day-to-day decisions responsibly. This enables us to address and
a sustainable future. This means that our company continues to with safety and sound corporate governance underpinning each area: integrate sustainability issues into our business and support our
deliver financial rewards for our shareholders and brings about the ability to deliver ‘economic value’ – i.e. profits – for shareholders.
benefits of the aviation industry, while not compromising the quality Action plans are being developed to be implemented in the coming
of life of our staff, our passengers, the communities we serve and TE GOVERNANC
five to 10 years, up to 2020.
the state of the environment. P E
C OR TY
Our approach to managing our business toward a sustainable future SAFE
is simple: to ensure we have the right infrastructure to facilitate the Com
atin “As a Group we should always
required improvements that may emerge. We do this by:
Fli seek to be ahead of legislation
rather than reacting to it: that
– Providing a framework in the form of a Sustainable
Development Strategy even if the environmentally ‘clean’
– Engaging our stakeholders regularly way of doing something is more
Wo r k i n g w it h o u r
– Putting in place sound corporate governance systems, expensive and therefore on the
face of it uneconomic, we should
In fr a str
procedures and practices
– Embracing “safety comes first” as an embedded philosophy always, regardless of mandatory
Sir Adrian Swire legislation, have a close look at the
in all our activities
overall feasibility of adopting such
ra c ti
n g w it h o u r C u s t o m a practice, both from the point of
view of general public good and
Cathay Pacific Sustainable Development Report 2011 5
Engagement Below are some of the issues raised by our stakeholder groups this year, together with CX’s actions:
This year our stakeholders said: What we are doing:
They are not familiar with the company’s sustainability strategy and performance, A series of internal initiatives have been planned in 2012 for staff to raise
especially outports. awareness and engage staff on how sustainability relates to their work.
They would like more transparency on our operational impacts, with clear long We have been working with various departments on a set of specific targets for
term goals, performance indicators, action plans and measurement of impacts. the key areas of our operation, which will be rolled out in 2012.
We should develop a supplier audit system. We are putting together a framework for supply chain compliance checking.
Stakeholder engagement helps us understand the current and Below is a summary of ongoing work in developing a well-defined materiality matrix on sustainable development risks.
emerging issues our key stakeholders are concerned about. It helps This enables us to better identify significant issues for the company.
define our Sustainable Development Strategy as well as how and
what we report. We follow a five-year stakeholder engagement plan Safety Interacting with Customers
Included in Report: Included in Report:
to ensure we systematically engage with a range of interest groups Safety Customer
Brief description In-depth with expectation
on a regular basis, at least once every two years. commitments
We aim to report on sustainability issues that are “material” or Operating Our Flights Oﬀering sustainable
products and services
relevant to us – that is, when issues substantially affect our long Fuel eﬃciency and
term commercial and operational viability. GHG reductions
Importance to Multiple Cathay Paciﬁc Stakeholders
Increasing customer awareness
on sustainability issues
Our materiality assessment combines the Swire Group approach New technology
on identifying the risk concerns of our stakeholders, and our own Working with Our Supply Chain
materiality scoring methodology, which follows the principles
Managing Our Infrastructure Engaging suppliers and staﬀ
outlined in international standards such as the Global Reporting on sustainable procurement
Initiative (GRI) and the AA1000APS. Operate buildings to a high
Investing in People and Communities
The resultant ‘materiality’ of our report is then reviewed by an
independent Stakeholder Review Panel. Manage and reduce noise Staﬀ occupational health
Biodiversity and Staﬀ engagement
Creating value for
Air quality issues local communities
Eﬀective resource Engagement with
Not included Included in Report: local communities
in Report Brief description
LOW Potential Impact to Cathay Paciﬁc HIGH sourcing practices
Note: This matrix indicates the relative importance and impact of issues based on our internal analysis.
6 Cathay Pacific Sustainable Development Report 2011
Governance of sustainability Risk management and sustainable development
Cathay Pacific is committed to maintaining a high standard of corporate governance, and devotes The Corporate Risk Management Department (comprising risk management, legal, insurance and
considerable effort to putting in place best practices in accordance with our Code of Conduct on compliance teams) manages corporate risk and provides advice for the entire Cathay Pacific Group.
Corporate Governance. The Group Risk Register is reviewed annually, with a commitment to ensuring that our risk management
system is consistently in line with the AS/NZS 4360: 2004 risk management standards.
The governance of sustainable development at Cathay Pacific is led by the Chairman, with the Chief
Executive being accountable for the Sustainable Development Strategy. The following diagram shows Following the roll-out of the current risk management framework to Cathay Pacific departments in
the reporting lines of various sustainability committees: Hong Kong, this framework was progressively introduced to Cathay Pacific Group subsidiaries and
regional outports in 2011.
In the past few years, we have been identifying our environmental and social risks. After completion
Governance structure for sustainability
of an initial climate change risk study at Cathay Pacific in 2011, we will be incorporating climate change
issues much more consistently into business plans. This process will then expand to other sustainable
Chairman development issues next year – such as environment and community issues.
Board of Directors Corporate compliance
Chief Executive, 5 Executive Directors,12 Non-Executive
Directors, including 4 Independent Directors It is the policy and intent of Cathay Pacific, Dragonair and the Hong Kong-based 100% owned
subsidiaries to operate at all times in full compliance with all applicable laws and regulations.
Management Committee To support clear communication and ensure awareness of our antitrust policy and guidelines, we run
Audit Board Safety Review
Chief Executive, 3 Executive Directors, Committee Committee
8 Executive Officers
face-to-face workshops, online training for new joiners and regular refresher online training for other
employees. We encourage employees to report any apparent or suspected violations of our antitrust
Swire Group policy and associated guidelines, with strict confidentiality ensured.
Fleet Steering Group Sustainable Development Long Term Action Group (LTAG) Environmental
Steering Group on Climate Change Best Practice
Chaired by Director Corporate Affairs Chaired by Director Corporate Development Working Group
The European Union Environmental Committee
Inflight Services Property Services Department
Department Emissions Trading Scheme Swire Supply Chain
Committee Committee Working Group Working Group
Cathay Pacific Sustainable Development Report 2011 7
AUDiTED ON SAFETy
DECREASE ON MODERATE
RiSk SAFETy iNCiDENTS
Very low risk
OF AN ADVERSE EVENT
ASSOCiATED WiTh FliGhT
We put safety first
Our safety performance
One of our safety goals is zero accidents and zero ‘high risk’
incidents. In 2011, there was one event classified as an accident,
Governance of safety at Cathay Pacific compared with two in 2010. There were two ‘high risk’ safety
incidents and 67 ‘moderate risk’ safety incidents in 2011. No
accidents have been reported for Dragonair during the same period.
Cathay Pacific Board
At Cathay Pacific, we manage safety by managing our operational Safety Incidents (Cathay Pacific)
risks. This is primarily achieved through our Safety Management Board Safety Review Committee (BSRC)
System (SMS). To ensure that our staff understands how we use Chairman: Independent safety expert 2011
the SMS and to demonstrate how they can contribute to safety Moderate Risk
management, we rolled out an SMS e-Learning package and
(Meets twice yearly)
knowledge test for CX staff in June 2011. 2 High Risk
During 2011, we updated and revised the way we measure and Chief Executive
monitor our safety performance within the airline. The safety 2010
metrics are documented and reviewed on a monthly basis by 79
the Airline Safety Review Committee (ASRC).
Airline Safety Review Committee (ASRC)
We continue to monitor our flight safety by capturing and analysing
Chairman: General Manager Corporate Safety
flight data from all our flights and reports from staff. For ground
operations, we audit the 75 ports into which we operate on a Directors, General Managers, 2009
Heads of Departments, Managers
regular basis. We also continued assisting with the ISAGO (IATA 82
Safety Audit for Ground Operations) initiative. The aim is to improve (Meets monthly)
operational safety in the airport ground environment and to reduce 3
damage to aircraft and equipment.
Safety Action Committees 2008
Flight Operations Occupational Health & Safety* 118
Engineering Flight Data Analysis Review 4
Cabin Fatigue Risk Management System
Note: Safety Occurrences include all incidents and accidents that occurred in 2011.
Ramp/Cargo Risk levels are determined by the Cathay Pacific risk management matrix. High risk are
(Meets monthly) (Meets bi-monthly *Meets quarterly) significant risks that require immediate attention. Moderate risks are significant risks that
require appropriate mitigation and monitoring.
Governance line Reporting line Information line
8 Cathay Pacific Sustainable Development Report 2011
STAFF FATAliTiES SERiOUS WORk-RElATED iNJURiES
Staff safety “Cathay Pacific has demonstrated
itself as an industry leader by early Charles Haddon-Cave Safety Review
The overall Lost Time Injury Frequency Rate (LTIFR) reduced by
7.9% in 2011. adoption of FRMS as an integral
In 2011, Cathay Pacific commissioned a leading international
We continue to put an emphasis on improving staff Occupational part of their Safety Management expert on aviation safety, Sir Charles Haddon-Cave, Q.C.,
Health and Safety (OHS). All new joining cabin crew complete an System. FRMS is another example to conduct an in-depth review of the safety systems and
e-learning module related to OHS as part of their induction training,
of our commitment to making culture within Cathay Pacific, Dragonair, and Air Hong Kong.
as well as attend an annual half-day training session on manual Seventy deliverable action points were recommended, and
handling skills. Cathay Pacific one of the world’s
each one is being overseen and followed up by a director.
Lost Time Injury Frequency Rate (Cathay Pacific)
Captain Darryl Soligo,
Aircrew Officers Association Technical and Safety Committee, “Safety of our passengers and
FRMS Committee Pilot Representative, and Training Captain
at Cathay Pacific.
crew is front and centre of my
20.6 Subsidiary Staff responsibilities as chief of
KA Cathay Pacific. I am confident
that, consistent with this
33.8 Alcohol and Other Drugs Policy commitment, we have an
Our Alcohol and Other Drugs Policy and Programme aims to excellent and well established
2010 educate employees on issues related to alcohol and other safety programme. At the
18.4 drug use, and to promote and maintain work place safety in same time, even the best
a supportive environment. John Slosar,
47.3 safety programmes always
52.1 Passenger safety have room for improvement.”
There were zero passenger fatalities in 2011 as a result of our
operations in Cathay Pacific and Dragonair.
Fatigue Risk Management System
We continue to conduct comprehensive risk assessments on all
Managing pilot fatigue risk is an important component of Cathay new cabin products. Our crew are also able to call upon inflight
Pacific’s SMS. During 2011, we continued to develop the Fatigue medical assistance 24/7 through the use of the Medlink system.
Risk Management System (FRMS), which is an evidence-based,
data-driven system that is used to monitor and control fatigue risk to
a level that is ‘As Low As Reasonably Practical’ (ALARP). We target
Public health and food safety
any systemic issues with rostering patterns, and conducted a pilot Cathay Pacific monitors public health outbreaks closely to ensure
fatigue survey to help identify flights that needed some attention. that we protect the health and safety of our front line employees as
Current data indicates that Cathay Pacific’s risk of an adverse event well as the travelling public.
associated with flight crew fatigue is very low.
Working together with our caterers, we continue to do our utmost
to serve inflight meals that meet the highest levels of food safety
Cathay Pacific Sustainable Development Report 2011 9
Introduction to Priority
Area Sections Emissions from our flights form the largest part of our business’ operational Operating 10
carbon footprint. As a responsible business, projected increases in our
emissions cannot be left unchecked, and we are therefore committed to
reducing these impacts.
Our ground operation is an area where we are working hard to reduce our Managing 12
footprint, primarily from electricity consumption of our buildings and equipment
stock, vehicular emissions, resource use and waste generation.
Our service philosophy – Service Straight From The Heart – is an integral interacting 14
part of the Cathay Pacific culture. Our priority is to provide a great service that
is warm, friendly, professional and sensitive to our passengers’ needs.
Our Airline Purchasing and Engineering Procurement departments are Working with 16
responsible for purchasing the range of goods and services that the airline
needs, from the largest spend items such as aircraft and fuel, to the smallest
Our Supply Chain
such as office supplies and marketing memorabilia. Many of our suppliers are
companies who also report publicly on their sustainability performance and
hold similar values towards corporate responsibility as ourselves.
Our staff is one of our greatest strengths and assets, and they are an important investing in People and 18
key to our success. That is why we make it a priority to support staff at the
workplace, empowering them to make a difference in the local communities
across our network.
10 Cathay Pacific Sustainable Development Report 2011
Reducing our carbon footprint
Climate change We support fully the International Air Transport Association (IATA)’s Improving fuel efficiency
climate change commitments.
Aviation currently accounts for 2% of global emissions from Our operating culture of fuel efficiency has been embedded since
human activity. As aviation grows to meet increasing demand, our first non-stop long haul flights from Hong Kong to London and
it is forecasted that by 2050, this could rise to 3%. 2010 > An average improvement of fuel efficiency of Vancouver in the early 1980s, through reducing weight onboard.
1.5% per year Our fuel efficiency initiatives reflect the IATA four-pillar strategy:
Comparison of aviation CO2 emissions
vs other forms of transport (%) 2020 > A cap on aviation CO2 emissions from 2020
(carbon neutral growth)
1.5 Technology Operations
2.0 2050 > Aspiration for 50% reduction in net CO2 emissions Airframe, Maximum
16.5 over 2005 levels
New fuels Minimum
ATM Offsets &
International aviation Other transport procedures Incentives
International marine Emissions from other sectors
Cathay Pacific Sustainable Development Report 2011 11
In 2011, we received three A330-300s; six Boeing 777-300ERs In 2011, our Head of Environmental Affairs was appointed to IATA’s
and four Boeing 747-8Fs. We now have a total of 24 Boeing 2011 GHG Emissions (tCO2e)* Climate Change Task Force which is leading the industry’s work to
777-300ERs, powered by two highly efficient GE90 engines, develop airlines’ commitment to carbon neutral growth for 2020 and
which form the backbone of our ultra long-haul fleet, where the Scope 1 Scope 2 to develop proposals for a global agreement on emissions.
greatest fuel efficiency improvements of 26-28% are realised. 16,286,705 (99.67%) 53,695 (0.33%)
Jet fuel, ground fuel Electricity and Carbon offsetting
and Towngas Towngas FLY greener, the first carbon offset programme launched by
Boeing 777-300ER fuel efficient features an Asian airline in 2007, is part of our ongoing effort allowing
* Details of our GHG emissions and PricewaterhouseCoopers report passengers to contribute to projects that reduce CO2 emissions.
are available at in www.cathaypacific.com/sdreport More information can be found at www.cathaypacific.com/flygreener.
New raked wing tip
to improve aerodynamic
Our total CO2 emissions from fuel burn in 2011 were 15.9 million
tonnes, which is in line with the operational growth of the airline.
In 2011, our total carbon efficiency relative to our overall capacity
(available tonne kilometre, ATK) has improved 11.6% since 1998.
Since 1998, our carbon efficiency relative to actual traffic volume
Wing modified to
(revenue tonne kilometre, RTK) has improved 19.8%.
Powered by two GE90 engines
Utilising fuel efficient modern aircraft with the latest designs and In 2011, 3,392 tCO2 were offset by our passengers. Cathay Pacific
technological advancement appropriate for our operations is one and Dragonair also offset the CO2 impacts of staff travelling on
of the most significant ways that we can reduce our environmental business, amounting to 14,575 tCO2 at an approximate cost of
impact and meet our climate change targets. We work with HK$788,000.
manufacturers so that these technologies can be brought to the
Global CO2 emissions – forefront of research and development.
Cathay Pacific Group Fleet Contributing to climate change science
Cathay Pacific is also a member of an industry coalition, the
Sustainable Aviation Fuel Users Group (SAFUG), and the Roundtable To assist in increasing understanding of climate change science
for Sustainable Biofuels (RSB). in the atmosphere, Cathay Pacific signed a memorandum of
agreement with In-service Aircraft for a Global Observing System
In 2011, we hired a dedicated Biofuels Manager and developed a (IAGOS), which is a European Commission long-term climate
900 sustainable aviation biofuels strategy which will drive our efforts for change monitoring project through the use of installed equipment
the next five years. on long-haul aircraft of international airlines (www.iagos.org).
Visit the report website for detailed flight emissions, other environmental
600 Economic measures data and initiatives.
450 Emissions Trading
300 Cathay Pacific believes it is more appropriate for aviation emissions
to be regulated under a global sectoral scheme under the UN’s
150 International Civil Aviation Organization (ICAO) rather than by the
imposition of the regional European Union’s Emissions Trading
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 + Scheme (EU ETS), due to the global nature of the industry. Despite
* * *+ *+ * our strong opposition, we have been working in full compliance with
total C02 emissions grammes/RTK grammes/ATK the EU ETS regulation.
(in thousand tonnes)
* includes Dragonair + includes testing, training, and wet lease flights
12 Cathay Pacific Sustainable Development Report 2011
Managing hAS 25%
EURO iV, EURO V OR
USED COMPARED TO 2010
Increasing energy efficiency and
In our offices
better resource use We continue to make progress on sourcing sustainable materials for
our products, using mixed source Forest Stewardship Council (FSC)
certified or recycled paper and biodegradable plastic in many of
We are using biodegradable plastic bags that hold our inflight
Air quality and emissions on the ground reduce emissions during the dry cleaning process, such as reducing blankets, cutlery and duty free purchases, and are using paper from
the consumption of solvents and switching from a diesel boiler to responsibly managed sources for our inflight magazines. We are
Our wholly-owned subsidiary, Hong Kong Airport Services (HAS), a dual fuel boiler. In 2011, Vogue added a new Euro IV and Euro V proud to have introduced the use of a more sustainable material
has the largest vehicle fleet in the Group, and is the largest ground truck and one Euro IV van to its collection and delivery fleet. (corn starch) for the toothbrush and shoe horn contained in our
handling agent in Hong Kong, serving 33 airlines. In total, 25% of its
Cathay Pacific Catering Services (CPCS), a 100% subsidiary Business and First Class customer amenity kits.
533-strong fleet now comprise lower emission vehicles, including
Euro IV and Euro V vehicles and electric ground support equipment. of Cathay Pacific, serves 36 airlines and is one of the largest On the freight side, as part of IATA’s goal of achieving e-freight
flight kitchens in the world. This year, air cool condensers in worldwide, we have successfully adopted the electronic airway bills
Vogue Laundry Services is another wholly-owned subsidiary of the blast chillers were replaced by more energy-efficient water (e-AWB) for all cargo flights from Hong Kong, and are sharing our
Cathay Pacific. It employs over 600 staff and serves over 18 airlines, cool condensers. experience with other airlines.
25 hotels and has a daily output of 261,000 items, equivalent to
77 tonnes of laundry. Vogue has been actively exploring ways to Visit our report website for more stories on our The Club magazine and
mobile boarding pass.
Cathay Pacific Sustainable Development Report 2011 13
Waste management and recycling With help from our cabin crew since 2006, we recycle plastic cups,
plastic bottles and aluminium cans inflight. We started recycling
The Cathay Pacific Group recycles a range of materials in its offices, glass bottles in the last quarter of 2011.
including paper, plastic, metal, aluminium cans, printer cartridges,
waste lubrication oil and garment hangers.
CPCS prepares an average of 60,000 meals per day. As part of an Inflight Waste Recycling (Kg)
ongoing programme, CPCS gives food offcuts to a pig farm in Hong
Kong, which helps reduce the amount of food waste sent to landfill. Aluminium Cans
Vogue laundry uses 2.5 million garment hangers every year. There 29,802
continues to be a successful rate of reuse through our rebate
programme with customers. 34,721
Visit our report website to read more about how we make good use of
our old crew uniform. Plastic Bottles
38,661 Our headquarter buildings, Cathay Pacific City and Dragonair House,
are based at Chek Lap Kok, Hong Kong. They mainly comprise
Plastic Cups offices, flight training centres and stores. Both premises are certified
to the ISO14001 international environmental management standard,
18,810 and are both equipped with building management systems.
In 2011, there was an increase in the total electricity consumption
of our buildings due to the installation of an additional simulator and
increased usage of existing ones.
As part of making our buildings more energy efficient, we have
164,024 commenced trialling different lighting products. We will also be
commissioning a detailed energy audit to assist us in refining our
*Data start from September to December 2011
The new cargo terminal, “topped out” in November 2011, contains
many sustainability design features, including the HK$1.4 billion
material handling system, which utilises regenerative power, and
a chilled ceiling cooling system for the offices.
Hong Kong International Airport expansion plan
Cathay Pacific supports Hong Kong Airport Authority’s blueprint
for airport expansion, including the construction of a third runway,
and believes that this is important to the sustainability of the Hong
Kong economy and to ensure the long-term competitiveness of our
14 Cathay Pacific Sustainable Development Report 2011
Offering alternative and
Customer satisfaction Defect-free cabins
With last year’s defect-free project, we aim to ensure no aircraft
Listening and responding to our customers leaves Hong Kong with any faults that may spoil a passenger’s
We are constantly looking for ways to enhance our customers’ enjoyment of the flight. Building on this, our Engineering and Cabin
experience of flying with us, which is why we value feedback from Quality & Standards teams worked together this year to introduce
our customers. a new reporting and measuring process, and developed more
Detailed customer satisfaction surveys are undertaken daily focussed performance metrics for this initiative. With the efforts
on Cathay Pacific and Dragonair flights in all classes to help us of our Inflight Service Managers (ISMs), cabin crew and service
understand passengers’ ratings and satisfaction on different aspects providers at over 80 stations around the world, our cabins are
of their travel experience with us. We collect around 30,000 of checked prior to passenger boarding, with any findings on defects
these responses per month. We also make use of questionnaires and cleanliness reported. During the summer of 2011, a seven-
and customer focus groups. week road show was launched to highlight this. We also engaged
with the ISM community through 21 ISM forums.
Visit our report website to find out how customer feedback influenced
our new Business Class cabins.
162 Fly TO CARRiED Cathay Pacific Sustainable Development Report 2011 15
DESTiNATiONS 42 COUNTRiES AND TERRiTORiES 27.6 million PASSENGERS iN 2011
Customer service Emergencies management Service recovery
Getting it right when things go wrong Our Crisis Management Centre is prepared to handle any Service failures are often an unavoidable part of the travel
We aim to handle disruptions in an effective and timely manner. emergency or accident involving our aircraft, should the need arise, experience but our customers tell us that they understand things
We have a robust emergency response system designed to anywhere around the world. In such situations, our Emergency Plan may go wrong as long as we take steps to quickly recover. In 2011,
manage and support service disruptions or major incidents when takes immediate effect and triggers the assembling of the Crisis we introduced an initiative to all our frontline teams to ensure that
they occur during our operations. Management Team. This activates our central telephone enquiry all service failures are proactively resolved on the spot, and through
centre, the Cathay Emergency Passenger Information Centre this, we want our customers to remember more about how we
(CEPIC), where phone lines are on standby 24 hours to link up recovered than the actual service failure. Our aim is to enhance the
Flight Disruption Control System
calls from any of our outports. These can be accessed toll-free by experience for our customers and our frontline teams, as well as
A typhoon simulation exercise was conducted in April 2011 to test
the public to ensure information is disseminated immediately to improve on our service.
the Flight Disruption Control System and the Flight Disruption
passengers and their families involved in the incidents.
Control Centre. This system helps us to continually improve on
timely communication of accurate and relevant information to and Approximately 1,200 staff volunteers from the specially-trained
from the outports, and be better prepared for disruptions. Care Team are also on hand to offer humanitarian support to our
passengers and their families during and after a crisis.
Customer and Commercial Control Team
Our new Customer & Commercial Control (CCC) team was created
to provide a coordinated response during disruptions across the
network, helping to better manage customers’ experience. Where
the Integrated Operations Centre tends to look at operational issues
like crew rostering, engineering and flight planning, the CCC is
dedicated to focussing on the passenger experience, such as
passenger protection and hotel arrangements.
Visit our report website to read about how our Delhi airport team shone
in the midst of an airport blackout.
Customer engagement and education
Communicating sustainability to our customers
In 2011, we produced an inflight video that introduces
Cathay Pacific’s sustainability initiatives.
Visit our report website to find out how one of our crew went beyond
the call of duty and received the Betsy Award for her dedication
16 Cathay Pacific Sustainable Development Report 2011
Our Supply Chain
Working with suppliers to offer
more sustainable products
Engaging with suppliers Proposed New Supply Chain Sustainability Compliance Process
We aim to enhance the sustainability performance of our supply
chain through ongoing compliance with our Supplier Code of
Conduct, which is reviewed and updated periodically. We manage
our sustainable development risks related to our supply chain by
actively working with suppliers who share the standards we place
on environmental, health & safety, human rights and labour CODE OF CONDUCT COMMUNICATIONS SELF RISK CLASS
practices, business ethics and community issues. QUESTIONNAIRE ASSESSMENT ASSESSMENT DETERMINATION
The Code forms part of the supply tenders and contracts managed
by our local offices, and suppliers, both new and existing, are
expected to comply with these standards by completing a
questionnaire as part of the selection process.
We are developing a suppliers’ compliance checking system where
our suppliers are ranked on our business risk matrix, each of which
carries varying levels of follow-up actions. These range from
supplier-initiated self-assessment for low risk suppliers, background
checks of publicly available documents, to a comprehensive site
visit for suppliers deemed to be in the highest risk category.
Cathay Pacific Sustainable Development Report 2011 17
OVER 1,000 SUPPliERS GlOBAlly FOR CX AND kA
Sustainable Sourcing Involving the local community Timeline for Working with Our Supply Chain
Individual staff has been taking initiative with suppliers in exploring With financial support from the Hong Kong Government’s Home
2006 Identified the need for a more coordinated approach to
the use of alternative materials with lower impacts. A successful Affairs Department, and in association with the Outlying Islands
example in 2011 includes switching from plastic to corn starch Women’s Association (OIWA), our subsidiary CPCS collaborated sustainability in our supply chain
and cellulose in manufacturing the disposable toothbrushes and with local community service centres in Tung Chung in 2009 to
2007 Developed and launched our Code of Conduct. First
shoehorns in our amenity kits. Our teams are also working with establish a facility that packs inflight cutlery and headsets and
suppliers to expand our offering of sustainably sourced fish to a semi-processed vegetables for inflight meals. The aim of the questionnaires sent to Hong Kong-based suppliers.
greater number of routes. In the long term, we aim to utilise more initiative is to support women’s development, promote harmonious
2008 Launched online tool for suppliers to complete
alternatives with sustainability attributes and expand our support families, and build inclusive communities by leveraging our
of products that adhere to relevant sustainability credentials by operations on Lantau Island. It provides training and employment questionnaire regarding their compliance with our Code.
organisations such as the Fairtrade Foundation, Forest Stewardship near the women’s homes so they can also look after their families. New suppliers are contractually committed to meeting
Council (FSC) and Marine Stewardship Council (MSC). Feedback from the community has been positive, and in 2011, our Code of Conduct.
30 to 35 women worked at the facility every day.
Visit the report website to find out how we work with our suppliers to
2009 Revised Code of Conduct to include ethics
include sustainable features in our San Francisco lounge.
2010 First publication of the Supply Chain Sustainability
Newsletter distributed to local and outport suppliers.
Outport-based suppliers asked to complete questionnaire
for the first time.
2011 Development of a framework for supply chain
18 Cathay Pacific Sustainable Development Report 2011
investing in People
Empowering our people to
make a difference
Employee relations and engagement Ground staff Flight crew
Nearly 40% of Cathay Pacific Cathay Pacific has put in place an extensive support infrastructure
We are committed to providing the best possible working and Dragonair’s employees are to assist our flight crew on benefits, sickness, rostering, general
conditions for our staff, in order to attract and retain the best talent. ground-based, either at our welfare and in areas of a technical or operational nature.
There are a variety of channels for staff to provide their views and offices, cargo hubs, or airports.
We value our crew, and therefore, one of our goals is to strive to
ideas. We also engage staff on climate change and conservation Each of these groups has a
offer the most attractive working conditions and packages available
issues through activities with external organisations. staff consultative committee
that meets regularly.
Visit the report website to find out more about these issues, and the
In 2011, we conducted our third Human Intervention and Motivation System (HIMS) programme which
company-wide Organisational assists pilot recovery from chemical dependency.
Alignment Survey on ground
staff in Hong Kong and
throughout the Cathay Pacific
and Dragonair outport network.
It provided insights on how the
Visit the report website for an insiders’ look at the Mumbai team company can sustain success in
World Café Vision Day. the long term.
Engaging with our diverse, mobile workforce
Our team consists of diverse cultures, geographies, background
and languages. We work with multiple trade bodies based
in different countries that have specific union regulations,
and we uphold freedom of association for our staff. We are
actively working with the various staff groups to enhance
communication and consultation, to ensure views are heard
and acted upon appropriately.
Cathay Pacific Sustainable Development Report 2011 19
29,000 EMPlOyEES WORlDWiDE 22,200 EMPlOyEES iN hONG kONG 4,037 VOlUNTEER hOURS By hONG kONG STAFF
Cabin crew Developing a winning team Encouraging staff involvement
As part of our frontline team, cabin crew provide invaluable input to There are more than 1,000 staff in the CX Volunteers team.
the way we serve customers. Their views are important to us, and Learning and development In addition to encouraging
consultation and feedback remains a key focus. We also do our best We provide learning and development opportunities in preparation staff to participate in company-
to show our appreciation to their professionalism and hardwork for staff’s various roles and responsibilities. organised initiatives, we support
through a number of ongoing initiatives. There are annual refreshers for all crew. Leadership and staff in their own charitable
management skills training are provided to senior crew to support endeavours via the Cathay
Visit the report website for further details on the above initiatives. Pacific Charitable Fund launched
them in managing and mentoring the younger generation of crew.
There are also voluntary learning programmes that cater to both in November 2011.
crew’s work and personal life.
Cabin Crew Nationality Mix for CX and KA in 2011
Recruitment and selection
As an equal opportunities employer, our recruitment is not limited
by gender, race, national origin, religion, disability or family status.
We have been undertaking local recruitment in the communities
where we operate.
We are proud of our ‘family-oriented’ culture and encourage staff
to see the long-term value of working with us. In appreciation of
the hardwork of our staff that helped make 2010 a record year,
those eligible received five weeks’ share of profit, along with
a salary bonus.
Canada 321 Japan 458 Singapore 313
China 88 Korea 333 Thailand 275 Employee welfare
Hong Kong 6,190 United Kingdom 413 Taiwan 519 We provide an Employee Assistance Programme in Hong Kong and
outports, which staff and eligible dependents can access for free.
Indonesia 265 Malaysia 460 United States 223
India 180 Philippines 549
The following countries have fewer than 10 staff and are not shown on the graph.
Argentina 1 Germany 1 Netherlands 3 Pakistan 1 Cathay Pacific recognises the importance of contributing to the
communities in the destinations where we operate. Our global
Australia 4 Sri Lanka 6 Nepal 2
community investment strategy is to leverage the resources of
our company to address the needs of the communities we serve,
focussing mainly in three areas: youth and education, medical care
and environmental conservation.
Visit the report website to read about our staff’s stories.
20 Cathay Pacific Sustainable Development Report 2011
Youth and education Medical care services Contribution to the
We believe in investing in educational programmes for young We believe it is our responsibility to support access to essential Hong Kong community
people and building on their interest in aviation. The following are medical care services, especially for vulnerable and impoverished We are dedicated to serving our
some of this year’s highlights: groups in the regions we serve. neighbours in the Tung Chung
– English On Air – our flagship programme offering English- Some of our long-term medical initiative commitments include: community. Highlights from
speaking opportunities for young people in Hong Kong 2011 included our continued
– Orbis partnership with the
– Celebrating 100 years of aviation –the Cathay Pacific Aviation Neighbourhood Advice Action
– Hong Kong Society for the Blind
Knowledge Contest for secondary school students; and launch of Council Tung Chung Integrated
the Dragonair Youth Aviation Academy – Cathay Pacific Wheelchair Bank Services Centre, visiting the
– Dreamflight elderly, organising Christmas
parties for children, and
recycling and redistributing
Environmental conservation our office computers.
It is important to conserve habitat and species diversity
where we can, as well as raising public awareness through
educational activities. Responding to local needs Copyright owner : Kadoorie Farm and Botanic Garden
around the world
This year, Cathay Pacific ran a youth environmental programme, Drawing on our unique position of being able to organise the
Green Explorer, where forty students from around the world went carriage of supplies and personnel efficiently, Cathay Pacific has
on an eight-day trip to Sichuan in mainland China. There, the young continued to respond quickly to help and support those affected by
participants learned about conservation and sustainable natural disasters around the world in 2011. These included helping
development in China. those affected by: the earthquake and tsunami in Japan; earthquake
– Life Education Activity Programme (LEAP) – conducting talks in Yunnan, China; floods in Pakistan and Thailand; and landslides in
and discussions with young people on the dangers of drug and Gansu Province, China.
We also continued our support to UNICEF by raising money through
– Xialongren – a Dragonair programme that provides access to the our inflight “Change for Good” programme.
aviation industry to young students in China
– Dragonair Aviation Certificate Programme (DACP) – youth- Cathay Pacific staff getting involved around the world:
oriented activity that explores the world of aviation, co-organised
by the Hong Kong Air Cadet Corps North America East Asia Africa
Europe Southeast Asia
Mainland China South Asia
We also assisted in the reintroduction of 609 endangered pig-nosed
turtles (Carettochelys insculpta) to Indonesia by donating cargo
space and air tickets to the organisers of the operation. The release
involved full participation of the villagers of Bupul, and was an
opportunity to educate the village children.
Visit the report website to read more about the above initiatives.
Visit the interactive world map on the report website for more stories on
how our teams are involved in helping others around the world.
This brochure provides an executive summary of Cathay Pacific’s
Sustainable Development Report 2011. To view the full report,
please visit our website at www.cathaypacific.com/sdreport .
The content and quality of the information in our report is guided by the
Global Reporting Initiative (GRI) G3.1 reporting guidelines. The Report
Application Level is A+.
We have engaged PricewaterhouseCoopers Limited to perform an
independent limited assurance of the report. The assurance scope and
statement is available on the report website. Selected subject matter
that has been verified are marked with a “ ”.
We welcome your feedback. Please contact us:
We wish to thank Two Tomorrows, Copeland and Partners,
CSR Asia and Sedgwick Richardson for their assistance in firstname.lastname@example.org
the development and preparation of this Report. We would Environmental Affairs Department
also like to thank: Ms Rachel Fleishman, Dr Glenn Frommer, Cathay Pacific City
Mr James Munro and Mr Peter Witton, for their participation 8 Scenic Road
Hong Kong International Airport
in the Stakeholder Review Panel. The panel statement can Lantau
be viewed online. Hong Kong
Environmental Affairs Department
Mark Watson Janice Lao Evelyn Chan Prian Chan Carol Cheung
Head of Environmental Environmental Environmental Assistant Environmental Environmental
Affairs Manager Projects Manager Manager Coordinator
Our principle subsidiaries based in Hong Kong:
FTSE Group confirms that Cathay Pacific Airways Limited has been independently Published in July 2012
assessed according to the FTSE4Good criteria, and has satisfied the requirements
Copyright Cathay Pacific Airways Ltd, 2012
to become a constituent of the FTSE4Good Index Series. Created by the global index
company FTSE Group, FTSE4Good is an equity index series that is designed to facilitate
investment in companies that meet globally recognised corporate responsibility
standards. Companies in the FTSE4Good Index Series have met stringent social and
environmental criteria, and are positioned to capitalise on the benefits of responsible
60% owned by Cathay Pacific business practice.