Capital A ESG scores hit new heights

AirAsia parent firm Capital A Bhd and Asia Aviation Public Company Limited (AAV) recently hit record sustainability scores per the latest ratings released by regional exchanges and international assessment bodies as of end-2024.

At group level, Capital A’s FTSE ESG ratings rose to 3.5 out of a maximum 5, up from 3.2 the previous year.

The group also saw its S&P Global Corporate Sustainability Assessment (CSA) score rise to 47 percent from 40 percent for the past two years.

In total, the group scored above average in the airline category for the second consecutive year.

A first for AAV

Meanwhile, AAV received its first internationally benchmarked score of 3.7 as the Stock Exchange of Thailand (SET) commences its transition from ranking the ESG performance of its listed entities using its own ESG ratings scorecard to FTSE Russel by 2025.

AAV’s first FTSE ESG score reflected its stellar performance under SET’s ESG Ratings of 83 percent, corresponding to the exchange’s AA-level rating.

All abovementioned ESG scores were assessed based on the entities’ 2023 performance.

Building up sustainability strategies 

According to Capital A chief sustainability officer Yap Mun Ching: “Capital A continues to put emphasis on strengthening its sustainability strategy and delivering outcomes in response to regulatory developments, particularly in relation to the environmental performance of its aviation business. The positive ESG results show that we are on the right track as we focus on increasing operational efficiency to lower our emissions and improving governance through the establishment of sustainability committees at all our listed entities.”

Yap pointed out that the specific achievements in 2023 that helped to deliver this strong performance were the publication of Capital A’s emissions reduction targets up to 2050, achieving AirAsia’s lowest yet carbon intensity measures and recovering the group’s On-Time Performance and Net Promoter Score.

He added: “The appointment of sustainability advisers to our boards also helped to increase our understanding of ESG risks and opportunities as we integrate ESG considerations into decision-making processes.”

Sustained engagement

Externally, Capital A spearheaded a regional drive engaging policymakers and regulators from the aviation and environment sectors to deliver the solutions needed by airlines to meet emissions caps under CORSIA, the aviation industry’s global carbon offsetting scheme.

In 2023, AirAsia began chairing the Malaysia National Task Force on CORSIA and was appointed to the ICAO Committee for Aviation Environmental Protection working group on CORSIA.

Yap said the group has now commenced its 2024 reporting cycle.

Further improvements will include new airline efficiency measures and compostable onboard food packaging.

Additionally, the group has also embarked on new initiatives in response to a shift towards more robust human rights assessments.