Planet

IAG discloses the organisation's governance around climate-related risks and opportunities.

Current activities

Board oversight via SECR Committee and Audit and Compliance Committee; multiple layers of robust governance; 2021 materiality assessment still relevant and so not updated.

Planned future activities

Review assurance, repeating materiality assessment in 2024.

IAG discloses the actual and potential impacts of climate-related risks and opportunities on the organisation's businesses, strategy and financial planning where such information is material.

Current activities

Delivering against Flightpath Net Zero strategy and nine leadership KPIs; sustainability-linked loans for British Airways and Iberia; TCFD-aligned scenario analysis; one- and three-year financial and business plans integrate sustainability aspects; new sustainability contract clause for suppliers.

Planned future activities

Ramp up of SAF procurement, ongoing scenario analysis, reviewing guidance and evidence on pathways to support 1.5°C transition 

IAG discloses how the organisation identifies, assesses and manages climate-related risks.

Current activities

Sustainable aviation risks are treated as a principal risk and regularly reviewed within Enterprise Risk Management (ERM) processes; risk disclosures received an 'A' rating from CDP.

Planned future activities

More detailed work on risk impacts to 2030 and 2040, actions to maximise climate resilience, and risk mitigation KPIs.

IAG discloses the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.

Current activities

Clear metrics and targets for 2025, 2030 and 2050 climate-related remuneration for senior executives and managers.

Planned future activities

Delivery against existing targets, review 2030 targets in line with latest evidence on 1.5°C-aligned transitions.

In October, the LanzaJet Freedom Pines plant in the US was the first SAF project in the world to receive a grant - of $50 million - from the Breakthrough Energy Catalyst Fund. IAG invested in this plant and will receive offtake when it is operational, which is expected to be the end of 2023.

From June 2022, Vueling offered customers the option to fund SAF use on the day of their flight, via a partnership with Avikor. Over 50,000 passengers contributed, and Vueling matched their contributions, supplying over 50 tonnes of SAF at Barcelona and Madrid airports.

Across 2022, in partnership with the refining company Phillips 66, British Airways received the first UK-produced SAF on a commercial scale, which is manufactured using sustainable waste oils.

Reducing food waste remains an area of focus for IAG. For example, Iberia offers a Buy Before-You-Fly service on shorthaul flights and British Airways offers a pre-ordering service for products from the on-board SpeedBird Cafe, to give passengers the choice of buying fresh and ambient products before departure. These services remove food waste from unpurchased shorthaul economy cabin meals while maintaining customer choice.

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The Group is also expanding its efforts to increase recycling. For example, in 2022 Aer Lingus trialled the first-ever flights into Ireland to recycle on-board, Iberia segregated glass on-board for the first time, and Vueling rolled out trolleys which enabled waste segregation.