We believe that climate change is a risk to our business. Reductions in greenhouse gas emissions are necessary in order to mitigate climate change. In 2014, Swire Pacific signed the Trillion Tonne Communique, a global call for proactive policy response from governments to work towards net zero emissions. Although the Aviation Division accounts for the majority of our emissions, we encourage all operating companies to set targets to reduce their emissions. Our emissions reduction strategy has three components: Reduce, Renew and Offset.
- Cathay Pacific has set a target of improving fuel efficiency by 2% per annum between 2009 and 2020. In 2014, fuel efficiency improved by 2.2%. It supports International Air Transport Association's target of carbon neutral growth by 2020. The airline manages its emissions by using more efficient aircraft and engines, by improving operational efficiency (through monitoring fuel consumption, reducing weight and washing engines), and by improved route planning and airport procedures.
- Swire Pacific Offshore ("SPO") has a Fuel Efficiency Management System which provides real time fuel consumption information. This facilitates judgements as to the optimal speed that vessels should go in order to minimise consumption.
- In 2014, Cathay Pacific made a minority investment in Fulcrum BioEnergy, Inc., a US based biofuel developer pioneering in converting municipal solid waste into sustainable aviation fuel. An offtake agreement with Fulcrum will see Cathay Pacific receive 375 million US gallons of sustainable jet fuel over 10 years.
- In 2013, Swire acquired Argent Energy, which pioneered large-scale commercial biodiesel production in the UK in 2005. The award-winning Scottish company produces biodiesel from used cooking oil from the food industry, tallow from the meat industry, and sewer grease. In 2014, Swire Pacific increased its minority investment in Green Biologics, a biotechnology company developing renewable chemical and biofuel technology.
- SPO's forest conservation project in Paraguay has generated over 7,500 tonnes of carbon credits since 2011. This REDD+ (Reducing Emissions from Deforestation and Forest Degradation) project is certified under the Verified Carbon Standard and the Climate, Community and Biodiversity Alliance.
- James Finlays Kenya is in process of developing a project to generate carbon credits from clean cook stoves.
- Cathay Pacific offset 13,300 tonnes of carbon in 2014 through
FLY greener. These offsets are small but play an important part in raising awareness among passengers and staff regarding climate change.