Annual Report 2019

CREATING VALUE Being one of the largest low-cost carriers in Asia, AirAsia Group endeavours to provide affordable air transport and services to a wide array of customers whilst continuously seeking new growth opportunities with the aim of becoming a leading digital travel company in Asia. We believe that business continuity is not solely dependent on profits, but also on the responsible practices we strive to instil in our operations. Based on EES pillars, our Sustainability Objectives include efforts to reduce negative environmental impact, promote sustainability throughout the Group and the countries we operate in, as well as establishing AirAsia as a sustainable brand. Alongside our sustainability objectives, our business model illustrates the holistic management that incorporates EES aspects alongside financial ones to ensure the success and continuity of our operations. We transform our five capitals (i.e. financial, intellectual, human, natural and social relationships) through value-centric activities to maximise the benefits we reap for our organisation, stakeholders and society at large. This allows us to pursue long-term sustainable growth and development while realising our vision of bringing unlimited connectivity to the world. The diagram below demonstrates our value creation process. SUSTAINING AND CREATING VALUE OUR BUSINESS INPUTS FINANCIAL RESOURCES Generated through our investments, business collaborations and operations, our economic resources enable us to maintain quality and responsible services CUSTOMER INSIGHTS & SATISFACTION Basic for maintaining loyal customers built up over the years, tending to requests while offering new experiences INTELLECTUAL CAPITAL Research and development to enhance processes and exceed customer expectations for the betterment of the Group’s operations and surrounding communities TALENT & SKILLS Qualified professionals, equipped with the knowledge, understanding and expertise required for sparking innovation and driving growth NATURAL CAPITAL Best practice for the consumption of natural resources are well kept through effective environmental management systems to ensure sustainability and preservation VALUE OUTPUT • Enhance customer satisfaction • Uphold highest level of trustworthiness • Ensure cost-efficient operations and improve operational reliability • Establish a transparent and fair management culture within the Group • Drive innovation, deliver quality services and opt for new growth opportunities • Secure personal information and intellectual property • Enhance sustainability, quality and brand image • Raise awareness of sustainability matters and mitigate potential risks affecting the Company’s performance • Create economic benefits to local communities • Mitigate risks arise from the impact of climate change • Reduce environmental footprints from business operations • Practise ethical business by adopting social equality • Produce a safe and conducive working environment • Foster continuous corporate and personal growth • Create positive change for the society PRACTISING SUSTAINABILITY GOVERNANCE MANAGING SUSTAINABILITY RISKS & OPPORTUNITIES MEASURING & MONITORING SUSTAINABILITY PERFORMANCE IMPLEMENTING SUSTAINABLE INITIATIVES 1 2 3 4 ECONOMIC ENVIRONMENTAL SOCIAL Non-financial impact of business operations on the economical operations of our stakeholders and system globally • Customer Relationship Management • Supply Chain Management • Efficiency & Reliability • Corporate Governance & Conduct • Technology and Innovation • Information Security & Privacy • Brand Management • Risk & Crisis Management • Responsible Tourism The impacts of operations on living and non-living organism • Climate-related Risk Management • Operational Eco-efficiency Business impact on social matters and the surrounding community in which we operate • Human Rights • Health & Safety • Human Capital Development • Attractive & Inclusive Workplace • Corporate Citizenship & Philanthropy ENVIRONMENTAL ECONOMIC SOCIAL CARBON • Fuel efficient aircraft • CORSIA implementation readiness • Emissions reduction via Aircraft Green Operating Procedures • Business Continuity Plan SUSTAINABLE TOURISM • Expansion of Journey D Programme • Save Our Malayan Tiger Campaign • +ME Campaign ENERGY • Energy audit • Physical rezoning to improve energy demand management CULTURE • Sustainability Spirit • Sustainability as KPI under GPS • Appointment of Sustainability Saviours in all departments & AOCs WASTE • Phase out of single-use plastics waste in offices and operations • Cabin onboard recycling • Old uniform upcycling GOODS & SERVICES • Supplier Code of Conduct • Responsible Procurement • Procurement Policy WATER • Water-saving low-flow fixtures installation GOVERNANCE • Sustainability roadshow • Materiality Matrix Assessment & Review • DJSI requirement gaps & action plans • “Do it Right” session AIRASIA GROUP BERHAD ANNUAL REPORT 2019 131 SUSTAINABILITY STATEMENT