Capital A Achieves New Highs in ESG Scores
The parent company of AirAsia, Capital A, has improved its sustainability ratings significantly, reflecting its commitment to environmental practices.
Capital A Achieves New Highs in ESG Scores
The parent company of AirAsia, Capital A Bhd, along with Asia Aviation Public Company Limited (AAV), has recently achieved remarkable sustainability scores as per the latest ratings released at the end of 2024.
At the group level, Capital A’s FTSE ESG ratings increased to 3.5 out of a possible 5, improving from 3.2 the previous year. The group also observed a rise in its S&P Global Corporate Sustainability Assessment (CSA) score to 47 percent, up from 40 percent for the past two years.
This achievement marks the second consecutive year that the group scored above average in the airline category.
A Milestone for AAV
Furthermore, AAV received its inaugural internationally benchmarked score of 3.7, transitioning from a self-assessed ESG rating system to the FTSE Russell by 2025.
AAV’s FTSE ESG score demonstrated excellent performance under the Stock Exchange of Thailand’s ESG ratings, earning an 83 percent score, which corresponds to the exchange’s AA-level rating.
These ESG scores were determined based on the entities’ performance in 2023.
Commitment to Sustainability
According to Yap Mun Ching, Chief Sustainability Officer at Capital A: “We continuously emphasize strengthening our sustainability strategy and delivering results in response to regulatory changes, especially concerning the environmental impact of our aviation operations. The positive ESG outcomes indicate our trajectory towards enhancing operational efficiency, reducing emissions, and improving governance through established sustainability committees at all our listed entities.”
Key accomplishments that contributed to this positive growth in 2023 include the announcement of emission reduction targets extending to 2050, achieving AirAsia’s lowest carbon intensity measures to date, and enhancing the group’s On-Time Performance and Net Promoter Score.
Yap elaborated: “Bringing sustainability advisers onto our boards has significantly increased our understanding of ESG risks and opportunities integrated into our decision-making processes.”
Ongoing Engagement
Capital A has also taken initiative in engaging policymakers and regulators from the aviation and environmental sectors to secure the necessary solutions for airlines to comply with emissions caps outlined under CORSIA, the global carbon offsetting scheme for the aviation industry. In 2023, AirAsia began chairing the Malaysia National Task Force on CORSIA and joined the ICAO Committee for Aviation Environmental Protection working group.
Looking ahead, the group has started its 2024 reporting cycle, planning improvements including new airline efficiency protocols and environmentally friendly food packaging.
Additionally, the organization has launched new initiatives in response to increasing demands for thorough human rights assessments.
