Transition to Sustainable Aviation:

Redirecting towards resilience

Changing how business challenges are

addressed and how obligations are met

Ian Taylor, Director, Global Aviation Business Leader

February 2023
Setting the Scene

Climate induced events continue to change everything.....

The change needs to
start TODAY

Climate Change is an
existential threat multiplier

Auckland Airport
January 2023

Impacts
Photograph: Bloomberg
 Three Dimensions of Sustainability
What a difference a degree makes

Global Impact
+2º -11% GDP
+3º -18% GDP by
2050 **

Environmental Social Economic

*WEF / Eurostat Jan 2022

**Swiss Re insurers, 2022
Ensuring your Enterprise's Future

Sustainability Risk: An uncertain social or environmental event

or condition that, if it occurs, can cause a significant negative
impact on the company.
Sustainability- An Enterprise Risk
Top 10 Risks
2 Years 10 Years
1 Cost of living crisis Failure to mitigate climate change

2 Natural disasters and extreme weather events Failure of climate change adaptation
• Climate related risks
most urgent emerging 3 Geoeconomic confrontation Natural disasters and extreme weather events

risk after cost of 4 Failure to mitigate climate change Natural disasters and extreme weather events
living
5 Erosion of social cohesion and societal polarization Large-scale involuntary migration
• Sustainability more
6 Large-scale environment damage incidents
than CO2 Natural resource crises

• Sustainability risk 7 Failure of climate change adaption Erosion of social cohesion and societal polarization

interlinkages create 8 Widespread Cybercrime and cyber insecurity Widespread Cybercrime and cyber insecurity
threat multipliers
9 Natural resource crises Geoeconomic confrontation

10 Large-scale involuntary migration Large-scale involuntary incidents

Economic Environmental Geopolitical Societal Technological

Doing nothing is not an option
First mover advantage for those airports getting it right

Transition to
Sustainability

Business
as Usual
 How to Respond
Transition to Embedded Sustainability

• A new level of organisational and cultural

change required
• Mastering this will deliver positive
environmental, and societal outcome
• Resilience can be forged through social
cohesion and by empowering people
Transition to Sustainable Aviation

The Arup Framework

Sustainability risks for airports

Perception of aviation Trust

Local noise/air/water/biodiversity Trust

Adaptation investment Judgement

Future proofing for SAF, H2 etc Judgement

Extreme weather recovery Judgement

Increasing regulatory requirements Trust

License to operate
Greenwashing Trust
Risk Management
Process driven by our
Sustainability Vision
Changing Culture - Shaping Attitudes

• Work with airports to develop a strategic approach

to meet their sustainability obligations.
• Multidimensional process, focusing on embedding
sustainability across the full spectrum of business
activities.
• Manage and Minimise risks while promoting
a resilient Airport Ecosystem.
• Work with Airports for early adoption to embody
this change.
How we work
Sustainability Across All Dimensions

Transition
to Sustainable
Aviation is
predicated on

3 actions across
3 dimensions
Sustainability Journey Biodiversity Enhancing
Resilient
Noise / AQ Communities
Spotlight on Connecting Vision to Operation
Improving Health
SAF Respecting
Social and Wellbeing
Planetary
Enterprise Risk Equity Boundaries
Vision Content
Green Finance Surface Access

Adoption of Circular
Transition to Net Economy Principles
Overarching Zero Economy
Strategy
Prioritisation
Energy
Continuous
Performance Improvement
Analysis - Operational Monitoring
Benchmark Level _ Governance
Operational Delivery
Change Plan

Progress
Infrastructure and
Implementation Assurance
Development Plan

Policy /
Organisation
Strategy
Level
change Behavioral
changes Education and
Training
How we work
Embedding Sustainability

Leadership Operation

Embedded

Sustainability

Culture Strategy

Sustainability isn’t a “project” | Sustainability is a “how” not a “what” | Sustainability is how we do everything
Embedding Sustainability

WHY:
Context

WHAT:
Core Objectives

HOW:
Defined
Methodology &
Process
Redirecting towards Resilience
Focus on Airports

Align
Change Management process
Step 2 ‐ Organisation and culture;
‐ Process;
‐ System adaptation;
Stakeholder management
Sustainable
Airport
Measure Monitoring

Risk and Resilience Assessment Step 3 Active monitoring and

management
Sustainability Maturity
Step 1
Priorities and Targets Robust Governance and
oversight
Implementation Plan integrating
with corporate strategy Continuous review and
improvement
The Catalyst of Change
Know where you are and define where you want to be

Measure
• Airports have different ambitions,
priorities, context, conditions and
regulations
• Identify what is important each
airport, what to focus on, where they
are in terms of organisational maturity
and where they want to be
• Consider the Risk profile – emerging,
physical, transition
• Develop a SIP to
embed sustainability to integrate with
corporate strategy
Be true in what you Communicate
Align the process, inspire the collective

Align
• Implementation and Governance – Including
organisational leadership and sustainability
working groups - empowering change
• Communications Plan - How it will impact the
organisation and culture (individual)
• Effective arrangements to support and encourage
implementation across all groups in the
organisation
• Critical Systems Preparation and Training
• Leverage supply chain and stakeholders
Assure the Change is Embedded
Everyday management and monitoring

Monitoring
• This is required to ensure the
organisational change is self-
sustaining
• Review and audit - identification of
both effective and ineffective
measures or areas or departments
ahead or lagging
• Re-benchmarking will need to take
place in line with developments within
the internal and external environment
• Ensuring environmental / green
communication is substantiated
Outcomes for Airport Clients

Sustainability Core to Operation

Outcomes for Airports
Sustainability at the heart of everything

International Innovation &

reputation digitalisation

Retain and
Staff attraction attract new
and retention business

Community Shareholder
and public and investor
Resilience
support confidence