Annual Report 2019

For all entities, carbon emissions in 2019 is 6.3% higher compared to 2018. We note that this is primarily due to the 8.6% increase of total flights operated since 2018. As mandated by ICAO and State Aviation Authorities, AirAsia monitors, reports and verifies emissions from flight operations, and subsequently strives to offset our emissions and achieve Carbon Neutral Growth from 2020 onwards (“CNG2020”). This is in accordance with the Carbon Offsetting & Reduction Scheme for International Aviation (“CORSIA”) Emissions Monitoring Plan. The carbon intensity in our operations have decreased by 18.8% due to the improved load factor in 2019 and exclusion of Indonesia AirAsia X (“IAX”) emissions after it ceased its scheduled commercial flights and only operates a limited number of non-scheduled commercial flights in 2019. Scope 2 has increased by 13.0% due to an increase in electricity consumption which in turn increased our Building Energy Intensity in 2019. ELECTRICITY CONSUMPTION 1. RedBase (AirAsia Japan HQ) started to report on electricity consumption in 2019. 2. RedPoint (AirAsia Philippines HQ), RedNest (AirAsia Thailand HQ) and RedFort (AirAsia India HQ) started reporting electricity consumption in 2018. 0 500000 1000000 1500000 2000000 2500000 3000000 3500000 0 2000000 4000000 6000000 8000000 10000000 12000000 FY2017 FY2018 FY2019 FY2017 FY2018 FY2019 5,703,871 9,435,417 153.9 114.6 113.4 10,321,718 Group Electricity Consumption (Buildings) Group Average Building Energy Intensity kWh kWh per sq. meter AIRASIA GROUP BERHAD ANNUAL REPORT 2019 149 SUSTAINABILITY STATEMENT