Annual Report 2020

Sustainability Statement OUR APPROACH TO SUSTAINABILITY Elements of sustainability have always been part of AirAsia’s DNA. Democratising air travel, we have enhanced many lives in Asean by making possible dreams to visit and experience new places. By expanding our network of destinations into second and third tier cities, we help to boost tourism and therefore the livelihood of local communities across the region. Through the Group’s philanthropic arm, AirAsia Foundation (AAF), we provide direct support to the work of social enterprises that seek to uplift marginalised or underserved communities. Integral to our low-cost model, moreover, is to maintain optimal fuel efficiency which, in turn, has helped us to minimise our environmental impact. However, as social inequalities and environmental issues take on greater urgency on the global stage, it has become necessary for organisations to approach sustainability in a more structured manner. Today, we recognise the need to put in place tools to measure and monitor various key metrics, and to set targets to enhance our sustainability performance. This is not just something expected of us by regulators and other stakeholders; it is something we have started to invest in more systematically because we genuinely seek to create a positive impact on the many lives we touch; and because we realise that our environment is critical to everyone’s well-being. PERFORMANCE HIGHLIGHTS • Listed in FTSE4Good Bursa Malaysia Index for the first time • 2020 World Travel Awards: - World’s Leading Low-Cost Airline - 8 th win in a row - World’s Leading Low-Cost Airline Cabin Crew - 4 th win in a row • Rebranded to become more than just an airline • Net Promoter Score - increased from 38 in 2019 to 52 • Adopted new Anti-Bribery & Anti-Corruption Policy (ABAC) • Maximised Red Radar system for risk register • Progress towards carbon neutral growth through Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) compliance • All AOCs submitted their Emission Monitoring Plans and verified emissions reports to their respective civil aviation authorities • Addressed climate change through Task Force on Climate-related Financial Disclosures (TCFD) • Undertook 2⁰ Celsius climate scenario analysis • AAF approved three new social enterprise grants amounting to RM189,104 • Completed “To Indonesia with Love” post- disaster rehabilitation project, with a total of RM3.8 million donated • Over 7,034 staff completed AAF’s anti- trafficking online training • AAF hosted its first international webinar, “The Role of Airline Staff as Frontliners in the Fight Against Human Trafficking” and joined ICAO’s Anti-Trafficking Working Group • Give With IKHLAS Campaign raised RM1,322,267, which supported 16,016 families during pandemic lockdowns Economic Environmental Social 92 AIRASIA GROUP BERHAD