AIR FRANCE & KLM

GROUP
Sustainability report
Submitted on

Submitted by: KHYATI RAO 2015PGP173

SUSTAINIBILITY REPORT ON

The Air-France KLM Group provides leading services in of global passenger

transport, air-maintenance services and cargo transport. Air France and KLM are
both signatories of the UN Global Compact. The company serves 316
destinations in 115 countries, With 94,666 employees, representing the largest
long-haul network from Europe.
Commercial airlines industry continues to face a competitive and challenging
environment. Competition from low-cost and ultra-low-cost carriers remains
fierce, forcing airlines to adapt scalable long-term growth strategies. For the
seventh consecutive year, Air France-KLM has been named Transportation
Industry Group Leader. The company has without fail demonstrated sustainability
leadership in the air transportation space, building on its long-term commitment
to reduce its environmental impact, increase the companys social value and
local development. Air France-KLM has developed plans for improving its fuel
efficiency by optimizing its routes and flight paths which has resulted in a 6.7%
reduction in fuel consumption, an 18% reduction in hazardous industrial waste, a
10% reduction in the energy consumption, and a 3.9% decrease in water
withdrawals compared to 2013.
One of the largest environmental challenges faced by our planet is Climate
change. Air transportation and Aviation's contribution to man-made greenhouse
gas emissions is between 2 and 3%. However, over the coming decades, growing
global air traffic will increase aviation's contribution substantially if no action is
taken. Aware of its responsibility in ensuring sustainable development, Air France
strives to be a leader on this issue within the airline industry. To fulfil this role, Air
France has undertaken many initiatives, both the Group and local levels.

They are continuously working towards the target of reaching a sustainable

balance between aviations growth and the control of CO2 emissions by
cooperation and adding to the worldwide effort. The air transport sector
contributes around 2% of global CO2 emissions and 1.6% of total greenhouse
gas emissions. Around 80% of Air Frances emissions come from longhaul aircraft that account for around 20% of all flights. There is no other
substitute method of transport for passengers or for cargo aircrafts carrying
express goods such as valuables or perishable foodstuffs. Air France-KLM
supports the sector's global commitment to make a fair contribution in
the collective effort to reduce CO2 emissions related to air transport. IN 2009, the
International Air Transport Association (IATA) set an ambitious worldwide
commitment:

1.5% average annual fuel efficiency improvement until 2020 (excluding

economic measures);

Carbon neutral growth from 2020 onwards;

A reduction in net aviation CO2 emissions of 50% by 2050, relative to 2005

levels.

Air France-KLM aligning with its aim to minimize its impact on the environment,
and has set the target to reduce CO 2 emissions by 20% by 2020, as compared to
2011. To achieve this goal, a varied set of measures has been employed,
focusing mainly on fleet renewal, operational efficiency, sustainable
biofuels, and carbon offsetting.
Air France has committed to ensuring conformity with environmental regulation
investing in levels of environmental protection that go way beyond strict
regulatory compliance:

renew its fleet with the best available technologies, while implementing
the most efficient procedures to mitigate noise and emissions from its
flight operations;

invest in eco-design by improving the environmental performance of

products linked to its services, initiated by in-depth analysis of sites and
processes;

involve employees in environmentally-friendly actions, promoting

initiatives while supporting innovations to improve processes;

Engage suppliers and service providers to launch projects to improve

their environmental performance.

One of the most strategic decision related to sustainability made by Air France
and KLM is the regular renewal of its fleet. The commercial advantage both in
the short and long term can be seen in terms of maintenance and reduced fuel
costs. Retiring the fleet in less than 10 years also earns a substantial salvage
value thus to some extent offsetting the cost of renewal. As new aircraft enter
the fleet, overhauls and repair work necessary to upgrade and maintain older
aircraft drop. They earn the benefit of avoiding intensive aircraft aging checks for
older airplanes each and every year. Fuel-efficient fleet ensures a padding from
fluctuating costs of fuel (protection from prices rise again).
Despite the economic crisis and financial slump, the Group has continued to
modernise its fleet and this has added to the following:
AIRCRAFT NOISE: 38% REDUCTION in global noise energy compared to
2000, with a 7% increase in movements
ENERGY CONSUMPTION: -10% REDUCTION compared to 2013 (electricity,
gas, other energy)
WATER: -3.9% REDUCTION compared to 2013.
WASTE: -18% REDUCTION of hazardous industrial waste compared
to 2013.

Emissions of passenger aircrafts per passenger kilometre vary extensively

because of differing factors such as the size and type aircraft, thus fleet renewal
would not only represent an opportunity to reduce emissions per passenger
kilometre flown but also result in substantial fuel savings. Operational efficiency
would include optimisation of airline timetables, route networks and flight
frequencies to increase load. Also limitation of cruise altitude of aircraft would
lead to a significant reduction in high-altitude condensation trails for a marginal
trade-off of slightly increased flight time. These measures combined can reduce
the Group specific fuel consumption and CO 2 emissions to:

3.45 litres per 100 km per passenger Flights

20% reduction CO2 emissions by 2020 compared to 2011 (tons/km)

Operations: 20% energy efficiency improvement by 2020 compared to

2011.

And CO2 emission to 86 g per passenger per km

Beyond their CO2 emissions, the main environmental impacts of airlines are
noise, energy and water consumption and waste production.
With pioneering solutions, both Air France and KLM have made progress in
reducing their impact beyond regulatory compliance levels.
Another major step taken by the group to limit its energy consumption on the
ground is using various means, from using electric vehicles to the construction of
new buildings with the highest environmental standards. By getting involved
from the birth of projects to the optimisation of planes end of life cycle, it
implements Eco design principles.
To this end, the Group mobilises the involvement and initiative of its staff and
encourages its suppliers to roll out their own pioneering environmental projects.
They have focused on changing common institutional and professional practices
such as international conferences etc. that lead to large carbon footprints of
travel.
Some major operational changes in Air France-KLMs actions to minimize
environmental impact have led to a strategic advantage as well.
Local emissions - Scrap Program- A reduction of 22.6% in Volatile Organic
Compounds (VOC) emissions at Air France Industries, after replacing the paint
thinner and installing semi-automatic washing equipment
- As part of scheduled replacement of KLMs ground support equipment, 40 new
Ground Power Units (GPUs) and 6 new transporters have been equipped with
soot filters; reducing 90% of soot emissions per vehicle
- Being a major user of the renewed B-pier at Schiphol, KLM uses fixed electrical
power and electrical air-conditioning units during ground-handling. This measure
led to less APU use, resulting in a decrease of 900 tons of fuel consumption and
emissions.
Waste - Processing 28 400 tons of Servair (Air Frances subsidiary) waste per
year (20% recycled, 80% converted into energy).

- Implementation of the Optiprint project at Air France: reduction of its printers

by 70% in France, cutting paper consumption by 30% since 2007.
- Feasibility study concluded for producing energy from waste on site at KLM
Catering Services. An implementation pilot is scheduled for 2010.
Energy consumption - Upgrading existing buildings - A new air conditioning
system with heat and cold storage has saved 90% of gas and 30% of electricity
at KLM headquarters.
- Adjusting the voltage of KLM hangars from 230 to 207 volts has led to energy
savings
Water consumption - Further installations of water meters and monitoring of
consumption.
- Greater use of the Ecoshine process at Air France Industries (cleaning aircraft
with a product diluted with very little water).
- Air France Industries and KLM Engineering & Maintenance are researching the
possibilities of dry cleaning their aircraft; eliminating water usage and reducing
maintenance time on the ground.
- Innovation at Air Frances Cargo building where enough rainwater is collected
to clean 90% of the cargo palettes.
-Water and Ground Pollution reduced by doubling the number of new de-icing
vehicles, KLM succeeded in cutting over 35% of de-icing fluid used.
Sustainable vehicles and equipment - Continuation of testing phase of AirPod
vehicles, powered by compressed air, at Roissy and Amsterdam airports.
- Using 41% of electric ramp equipment at Roissy-CDG (target 60% by 2020)
- Air France has joined a scheme, piloted by La Poste, to define the
specifications of a licensed electric vehicle, in partnership with other French
companies.

Following their vision of preserving resources, together with their partners in the
supply chain, Air France recognised the role of the corporate in engaging with
sustainability as a strategic priority and have effectively communicated it to
other principal stakeholders. It is therefore made imperative for their managers,
staff and business leaders to be on the lookout of emerging challenges that are
only likely have a harmful impact on the environment.

Reference : www.airfrance.com