Annual Report 2020

ENVIRONMENTAL Aligned to SDGs As Asia’s leading low-cost airline, AirAsia is committed to living up to guests’ expectations and delivering the best products and services while fulfilling our responsibilities in protecting the environment. In line with the aviation industry’s strategy to address climate change, we have adopted a global market-based initiative that aims to achieve carbon neutral growth. AirAsia’s Short, Mid and Long-term Carbon Emissions Goals Indicators Initiatives Outcomes Short-term Goal (2021-2022) Mid-term Goal (2023-2025) Long-term Goal (2026-2050) Carbon Emissions CORSIA compliance -Carbon emissions monitoring We fully met the carbon emissions submission deadline in May 2020. • Comply with the emissions report submission deadline • Enhance emissions data robustness • Voluntary offsetting scheme • Move towards carbon neutral growth for international flights in 2023 • Reduce net CO 2 emissions to 50% of what they were in 2005 by 2050 Enhancing carbon dashboard Our upgraded carbon dashboard has reduced human error, increased information accuracy and boosted the data filtration process Establishment of CORSIA International Civil Aviation Organisation (ICAO), which manages the planning & development of international air transport, establishes CORSIA. Voluntary Pilot Phase All aircraft operators operating routes between any state that volunteered to participate in CORSIA are subject to the offsetting requirements. Mandatory Phase Offsetting requirements become mandatory for all aircraft operators flying between ICAO member states. Baseline Phase All aircraft operators with international emissions >10,000 tCO 2 /year must monitor, report & verify CO 2 emissions data for all international flights. Offset Carbon Emissions Voluntary offset by participating aircraft operators. Exemption: Humanitarian, medical firefighting operations & aircraft with <5,700kg of Maximum Takeoff Weight (MTOW). 2016 2019 2021 2023 2027 111 ANNUAL REPORT 2020