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Airlines not doing enough to tackle climate change: investor group
AIRLINES are doing too little in the fight against global warming, a study funded by investors with US$13 trillion of assets under management said on Tuesday.
The fast-growing sector accounts for two per cent of world greenhouse gas emissions and should do more to manage risks of climate change, the Transition Pathway Initiative (TPI) said in a review of 20 of the world's biggest listed airlines.
It rated Delta, Lufthansa, United Airlines and ANA Holdings as the best performers at managing the business risks and opportunities of climate change.
But all could do more.
"Investors have a clear message to the aviation sector: When it comes to carbon performance they must be in it for the long haul," said Faith Ward, co-chair of the TPI on behalf of the British Environment Agency Pension Fund.
"Investors do care ... it's about encouraging disclosure so we can make informed decisions," she said.
TPI, which seeks to assess the performance of businesses in cutting carbon, groups 40 investors with US$13 trillion under management, including BNP Paribas and Legal & General Investment Management. Its research is by the London School of Economics' Grantham Research Institute.
More fuel-efficient planes, wider use of biofuels and ensuring that planes fly at full capacity would help to limit emissions.
TPI separately said easyJet and Alaska Air now had the most efficient fleets among the top 20 listed airlines, judged by their emissions per passenger kilometre flown.
At the other end of that scale, ANA, Japan Airlines, Korean Air and Singapore Airlines have the highest emissions intensities, it said. REUTERS