Annual Report 2019

REPORTING BOUNDARIES We have expanded our reporting boundaries covering the following entities: AirAsia Malaysia (“MAA”), AirAsia X Malaysia (“AAX”), AirAsia Indonesia (“IAA”), AirAsia X Indonesia (“IAAX”), AirAsia Thailand (“TAA”), AirAsia X Thailand (“TAAX”), AirAsia India (“AAI”), AirAsia Japan (“AAJ”) and AirAsia Philippines (“PAA”). However, not all sustainability indicators disclosed include all active entities and these instances have been stated where relevant. REPORTING FRAMEWORKS & GUIDELINES This report was made in accordance with the Standards set forth by the Global Reporting Initiative (“GRI”) for the ‘Core’ option and principles of inclusivity. The materiality assessment was updated based on a consultation process carried out with internal and external stakeholders. Additionally, more renowned frameworks and guidelines have been taken into consideration, such as the following: • Main Market Listing Requirements on Sustainability Reporting, Guidelines & Toolkits by Bursa Malaysia Securities Berhad (“Bursa Malaysia”) • Dow Jones Sustainability Indices (“DJSI”) • FTSE4Good Bursa Malaysia Index (“FTSE4Good”) • United Nations (“UN”) Sustainable Development Goals (“SDGs”) The indicators’ scope is duly identified across the Statement. For AirAsia to continue improving our corporate reporting, we remain open to feedback from readers. Feel free to contact us through the following email: sustainability@airasia.com SUSTAINABILITY GOVERNANCE INTRODUCTION AirAsia Group Berhad (“AirAsia”, “AAGB” or the “Group”) is journeying towards creating value and reinforcing good sustainable practices. This annual Sustainability Statement (the “Statement”) demonstrates our commitment and contribution to the sustainable development of the communities and the environment within which we operate. This statement also provides an insight into our initiatives and performance for the financial year from 1 January 2019 to 31 December 2019. Complemented with information from previous reporting years, a perspective on our developments is achieved within the scope of reporting. Our aspirations in building positive long-term value creation are achieved through the continual management of our non-financial risks which in turn enables us to unlock vast opportunities. In the reporting year, we strengthened our sustainability practices, alongside our stakeholders’ expectations, through the integration of Economic, Environmental and Social (“EES”) aspects in formulating business strategies, addressing climate-related issues, maintaining effective governance, and fostering a high- performance culture within the organisation. AIRASIA GROUP BERHAD ANNUAL REPORT 2019 119 SUSTAINABILITY STATEMENT