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Carbon Offsetting The Qantas Group Experience Peter Broschofsky General Manager Environment and Fuel Efficiency APEC Transportation Working Group-Managing Aviation Emissions Kuala Lumpur 4 April 2008 ‹#› Agenda Agenda • Recent Developments in Australia • Positioning Carbon Offset Within A Broader Climate Change Agenda • Key Elements of the Qantas Group Program • Multichannel Marketing Tailored To Brands • Selection of Abatement Projects • Our Results • Lessons Learned ‹#› Recent Developments • Australia signs Kyoto • New Government Releases Climate Change Policy • Mandatory Greenhouse Reporting commences in July 2008 • Acceleration of Australian Emissions Trading implementation timetable • Planning for commencement of New Zealand Emissions Trading Scheme on 1 January 2009 • Garnaut Review suggests that Climate Change impacts are worse than expected ‹#› • Competition Authority Targets Carbon Offsetting and ‘Green Marketing’ Climate Change Agenda • • • • • Calculate Environmental/Carbon Footprint 2 million tonne saving in carbon emissions by 2011 7.5% improvement in fuel efficiency Other waste reduction targets (water, waste, energy) Transparent Reporting (Carbon Disclosure Project, CSR) • • • • Improve efficiency – fuel conservation program Step change through new technology aircraft Collaborate to improve Airspace Management Launch ‘be green’, internal cultural change program Offset • • • Achieve Accreditation Launch voluntary customer offset program Offset Group work travel and ground equipment Adapt For The Future • Lobby/Seed ‘R and D’, new airframes, alternative fuels, non Fossil Fuel engines, Support adaptation of ‘at risk’ nature-based destinations Measure / Set Targets/ Transparency Reduce / Mitigate • ‹#› Key Elements ‹#› Marketing Tailored To Brands ‹#› Abatement ‹#› Marketing Tailored Our Results To Brands • Takeup of the Jetstar program has been strong from launch and continues to increase • Currently more than 12% of customers booking through jetstar.com.au • Take-up of the Qantas carbon offsetting program remains less than 1% • In line with our initial expectations and standard industry take up rates • Enhancements to the Qantas program should lift take-up ‹#› Lessons Learned • Accreditation is absolutely critical • Position a part of broader strategy • Anticipate criticism • Get legal involved as early as possible • Ease of use delivers results • Customers need to decide, ‘opt in or out’ ‹#›
