October 27, 2021 Read More →

Airlines risk failing without quicker action on slashing carbon emissions

Reuters:

Some airlines risk failure if they do not cut carbon emissions quicker in the next three to five years due to a mismatch between short-term corporate travel targets and the airline industry’s 2050 net zero target, an industry report said.

Airlines are also at a rising risk of shareholder activism at a time when major fund managers such as BlackRock Inc (BLK.N), Vanguard Group Inc and State Street Corp (STT.N) have publicly expressed concerns about climate change, the report from CAPA Centre for Aviation and Envest Global released on Wednesday said.

“The pressure from customers and governments and investors is going to probably demand an acceleration of the journey to net zero, which is clearly going to put pressure on airlines,” said David Wills, advisory executive director at Australian carbon reduction strategy firm Envest.

“The conditions are right for airlines who get it wrong to find themselves in a potential failure situation,” he added.

Several companies, such as HSBC Holdings plc (HSBA.L), Zurich Insurance Group Ltd (ZURN.S), Bain & Company and S&P Global Inc (SPGI.N), have already announced plans to quickly cut business travel emissions by as much as 70%. read more

[Jamie Freed]

More: Some airlines risk failure if they do not cut emissions faster – industry report

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