The following are examples of specific climate-related opportunities we have identified. Climaterelated Opportunities Potential Financial Impact Mitigation Strategy Administrative efficiency Digitalisation strategy reduces manual paperwork and cost of paper, printing and storage of documents. Our ongoing digitalisation programme has minimised all paper documentation on board and in our office processes. Of the remaining ones, we continue to work with regulators to move towards e-documentation for regulatory recordskeeping and submissions such as e-Voyage Reports. Resource diversification Shift to SAF utilisation diversifies fuel supply and reduces exposure to rising energy costs and growing carbon regulation. We have commenced discussions with several fuel suppliers to supply SAF at Malaysian airports and/or to develop SAF using locally available feedstock. Resource efficiency Reduction of fuel utilisation via improvements in air traffic management and A321neo fleet conversion will further reduce operating costs and ensure that AirAsia maintains our commercial advantage as the airline with the lowest cost/ASK and CO2/ASK in the industry. We engage in regular consultations with civil aviation authorities to implement new fuel efficiency and emissions reduction measures. This includes proposing measures to be included for monitoring and tracking emissions reductions in State Action Plans. Products and Services Attract travellers keen to minimise their carbon footprint and experience sustainable travel activities. AirAsia potentially gains from increased market share among responsible travellers and earns ancillary income from sale of sustainable travel activities. In 2022, we are initiating a brand campaign to highlight AirAsia's greenest airline in the world achievements and our climate change management strategy. We are also implementing a voluntary offset programme to enable travellers to contribute to their carbon offsetting. AirAsia Foundation is working with sustainable travel social enterprises to make accessible sustainable travel activities on its DestinationGOOD.com platform. Markets Recognise that climate impact prone destinations may also be strong revenue generators in the recovery and rehabilitation phase. Resume commercial flights to affected destinations as soon as it is safe to do so to support rebuilding programmes. Resilience Continue to strengthen our network connectivity in hubs such as klia2 with reduced climate risk. Invest in climate forecasting tools and services to inform fleet planning and route planning strategies. 1 3 6 C A P I T A L A B E R H A D Environmental (cont’d.)
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