Navigating the Pathway to Sustainability Excellence

As summer comes to a close, we reflect on a season that was notably hotter than normal, with August recording some of the hottest nights on record in Hong Kong. To safeguard staff working in extreme heat, Airport Authority Hong Kong (AAHK) has implemented proactive measures such as providing staff resting areas with 24-hour access to drinking water via water tankers and using air curtains at baggage handling areas to maintain an optimum temperature for staff comfort. As the impacts of climate change become increasingly apparent, we continue to maintain a safe, reliable and sustainable airport for both staff and passengers at Hong Kong International Airport (HKIA). 

I am pleased to share the latest updates on our key initiatives:

• Release of Sustainability Report 2023/24 (published Aug 2024) – This year, we introduced AAHK’s new sustainability strategic framework – Ascend, focusing on 24 strategic goals across four pillars: Environmental Excellence, Operational Excellence, Thriving Economies and Societies, and Thriving People. Further details can be found in the ‘Spotlight’ section. 
   
• Sustainable Aviation Fuel (SAF) study – AAHK has conducted a comprehensive study focusing on developing strategic options for the Government of the Hong Kong Special Administrative Region (HKSAR Government) to consider to accelerate SAF uplift in Hong Kong. The study includes research on global development trends, existing and projected market demand and supply of SAF and engagement of the SAF supply chain.
   
• HKIA Carbon Capacity Building Programme – The 13^th event held in September featured updates on the bespoke HKIA Business Partner Target Trajectory Tool and practical training to enable Business Partners (BPs) to refine future carbon trajectories based on future planning initiatives and key business growth assumptions. In addition, experts from the Hong Kong Green Building Council (HKGBC) provided updates on the Climate Change Framework for Built Environment and the Zero-Carbon-Ready Building Certification Scheme to support decarbonisation. Advisors from South Pole also provided an overview of the Environmental Attribute Certificate market. 
   
• Funding granted for marine ecology and fisheries enhancement – The independent Marine Ecology Enhancement Fund (MEEF) and Fisheries Enhancement Fund (FEF) have granted over HK$7.5 million to 12 projects during the 12-month period from 1 July 2024 to 30 June 2025. The funded projects contribute to conserving ardeids, repurposing shells to restore marine habitats, piloting cuttlefish mariculture and more.
   
• Food Rescue Training – AAHK partnered with Food Angel to hold the “HKIA Food Rescue Programme” engagement session in July for HKIA tenants and BPs. Around 30 participants attended the briefing - the programme provides support for the airport community to participate in this very meaningful surplus food donation initiative.

As always, we are dedicated to maintaining our collaborative efforts with the airport community to cultivate progress in sustainable practices through airport-wide forums and joint initiatives. 


Peter Lee 
General Manager, Sustainability
Airport Authority Hong Kong

AAHK introduced a new strategic framework – “Ascend”

Q&A with Kristy Tan, Senior Manager, Climate Resilience
 
Q: Can you provide an overview of the Ascend framework and how it aligns with AAHK's long-term goals and values? 

A: We are embarking on a journey towards even greater heights of environmental and operational excellence. In alignment with our commitment to fostering thriving economies, societies and people, we have introduced a new strategic framework, Ascend. This strategic initiative outlines 24 strategic goals across four distinct pillars, serving as our guiding compass. This framework is designed to enable us to effectively monitor and manage our impact, both positive and negative, on economies, environments and people. As we continue to strengthen HKIA as the leading international aviation hub, we are dedicated to upholding our Greenest Airport Pledge, while maintaining our vision to be a key engine for Hong Kong’s economic development.

Q: What inspired the development of the Ascend framework?

A: We are on a journey to transform HKIA into the World’s Greenest Airport by adopting high standards of environmental stewardship. Over time, our approach has evolved to include critical aspects such as employee wellness, business continuity, supply chain management, data privacy and more. Our decades-long investment in sustainability has not only bolstered economies and societies from Hong Kong to the Greater Bay Area and beyond but has also highlighted the need for continuous improvement. We recognise that building and operating a resilient and sustainable airport requires a commitment to continuous improvement, collaboration with our partners and implementation of best practices. We introduced Ascend strategy to guide our journey in achieving new heights in sustainability.

Q: How will AAHK engage internal and external stakeholders in the journey towards achieving the strategic goals set out in the Ascend framework?

A: We have embedded robust governance at multiple levels of the organisation to oversee, lead and implement our sustainability-related activities. Internally, the Business Development Committee assists the Board in reviewing, approving and making recommendations for AAHK's sustainability strategies. The Sustainability Executive Taskforce chaired by Chief Executive Officer (CEO) and the Internal Sustainability Committee comprising general managers across different divisions are responsible for overseeing the implementation of our sustainability strategy. Externally, we have established various platforms to collaborate with our partners, for example we organise CEO Roundtables, bi-annual Airport Community Environmental Forums and a half yearly HKIA Sustainability Leaders Group meetings with airport BPs to discuss updates and progress on sustainability programmes, share best practices and exchange ideas.

Sustainable Aviation Fuel on the rise

Aviation is a growing hard-to-abate sector with substantial need for decarbonisation. The sector accounts for 2-3% of global greenhouse gas (GHG) emissions (as reported by the United Nations Framework Convention on Climate Change) and faces mounting pressure to decarbonise amidst accelerating global warming. Sustainable Aviation Fuel (SAF) is a substitute for traditional jet fuel and is recognised by industry bodies such as International Air Transport Association (IATA) and International Civil Aviation Organisation (ICAO) as the only scalable option to decarbonise the aviation sector, with the ability to reduce carbon emissions by 70-100% compared to Jet A1 fuel in terms of lifecycle emissions.  However, the adoption of SAF comes with a significant green premium, with costs of blended SAF ranging from 3-4 times more than traditional jet fuel. 

Several jurisdictions have made commitments to drive the adoption of this low carbon fuel, through a range of demand mechanisms. For example:

• The European Union (EU)  has established SAF mandates, from 6% in 2030 to 70% in 2050, enforced through penalties for airlines, airports, and fuel suppliers that fail to comply.
• The United States targets 12% SAF by 2030 and is accelerating usage through subsidies to support the local SAF value chain and adjacent industries.
• Singapore advocates a moderate SAF target, starting from 1% in 2026 to 3-5% by 2030, enabled by a levy and centralised procurement supported by domestic SAF supply.

Beyond these mechanisms, other jurisdictions worldwide have also implemented voluntary initiatives to foster SAF consumption through non-compulsory, non-financial measures such as running public education campaigns, involvement in global standard setting or developing coalitions or buyers’ clubs to mobilise industry.

Additionally, numerous airlines in the region have initiated efforts to advance SAF usage recently:

• Committed to using SAF for 10% of its total fuel consumption by 2030¹, Cathay Pacific (CX) has launched the CX’s Corporate SAF Programme, with AAHK as one of the launch partners.
• DHL Express (DHL) has launched its GoGreen Plus product in 2023, enabling shippers to purchase SAF credits directly from DHL while contributing to DHL’s interim target of using 30% SAF for all air transport by 2030².
• Qantas, with a 10% target of SAF usage by 2030³, is partnering with the Queensland government to explore and enhance the SAF economy within the state⁴.
• Lufthansa Group aims to use at least 5% SAF in 2030⁵ and will introduce an Environmental Cost Surcharge on flights departing from EU to cover part of the costs arising from the EU SAF mandate and other regulatory environmental requirements^6,7.
• Other major airlines have also set ambitious SAF goals, for example, United Parcel Service (UPS) has committed to 30% SAF blend in 2035⁸; Qatar Airways has a SAF use target of 10% by 2030 alongside its oneworld peers such as British Airways, Finnair and Japan Airlines⁹; ANA has pledged to replace at least 10% of its jet fuel with SAF by 2030¹⁰, etc.

As an airport operator, AAHK is committed to promoting the adoption of SAF in our region and we have already taken steps to support SAF at HKIA. Our initiatives include:

• SAF study - AAHK has completed an important strategic study on SAF which includes a range of options to promote SAF uptake for consideration by the HKSAR Government.
• Participation in the Hong Kong Sustainable Aviation Fuel Coalition (HKSAFC) as a coalition partner. The HKSAFC aims to spearhead the decarbonisation of the aviation industry and position Hong Kong as a regional and global hub for SAF.
• Two of HKIA’s aviation fuel facilities obtained the International Sustainability and Carbon Certification: Carbon Offsetting and Reduction Scheme for International Aviation (ISCC CORSIA) certification for SAF handling. This certifies that SAF handled at these facilities enables traceability throughout the SAF supply chain.

Hong Kong, as the world’s busiest cargo hub and major passenger transfer gateway, presents a 
unique context necessitating a tailored approach to promote SAF uptake effectively. Given the urgent need to address climate change, AAHK will continue to work with HKSAR Government and collaborate with key SAF supply chain partners to encourage uplift at HKIA to ensure the long-term sustainability and resilience of our aviation industry.

References:

1. Cathay Pacific commits to using Sustainable Aviation Fuel for 10% of its total fuel consumption by 2030 - Cathay Pacific
2. DHL Express Launches Gogreen Plus in Hong Kong: First Global Express Courier to Give Customers the Opportunity to Use Sustainable Aviation Fuel to Reduce Emissions - DHL - Hong Kong, SAR China
3. Qantas joins new alliance to accelerate global sustainable aviation fuel (qantasnewsroom.com.au)
4. Qld’s green jet fuel industry set to soar with Qantas partnership - Ministerial Media Statements
5. Deutsche Lufthansa AG Factsheet Sustainability 2023 (lufthansagroup.com)
6. Lufthansa Group introduces Environmental Cost Surcharge
7. ​​​Environmental Cost Surcharge | Lufthansa
8. UPS Sustainability Highlights 2022
9. Oneworld member airlines commit to net zero carbon emissions | Oneworld
10. ANA Procures Sustainable Aviation Fuel Blended in Japan to Advance Carbon-Neutral Goals | Press Release | ANA Group Corp.'s Information (anahd.co.jp)