Air China is a majority state-owned enterprise headquartered in China. In 2021, its revenue was USD 10.8 billion. Air China is the flag carrier of China and one of the three biggest mainland Chinese airlines. The company offers passenger and cargo flights and other airline services. Air China serves customers worldwide.
The company introduced a service on the Air China app that allows passengers to participate in carbon emission reduction projects such as reforestation through flight miles and donations to offset their carbon emissions during the flights. The company can use more efficient initiatives to engage with passengers and spread the knowledge of climate change.
Air China mentions alignment with China’s national strategic goals, such as carbon peaking and achieving net-zero emissions, and the 14th Five-Year Special Plan for the Green Development of Civil Aviation. The company does not provide any details of these targets or a plan on how to achieve these goals. Without a clear strategy, even non-specific strategic targets are likely to be unreachable for the company.
Air China receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. Air China’s cumulative emissions in 2016-2021 exceeded the company’s carbon budget by 30%. Based on its current fleet the company is projected to greatly exceed its carbon budget for the period 2022-2036. Air China will require significant reductions in emissions intensity to stay within its 1.5°C budget. The company supports China’s national goals of carbon peaking by 2030 and net-zero by 2060 but has no transition plan to achieve them.
The company is running some efficiency improvement activities, such as replacing the Auxiliary Power Unit (APU) used in aircrafts for the power supply with ground equipment and calculating the planned aircraft fuel quantity. However, none of these is a part of a robust business model compatible with a low-carbon economy.
Air China is a majority state-owned enterprise and supports the national Chinese strategic goals, including carbon peaking by 2030 and net-zero by 2060. The company has not set measurable reduction targets and, despite some efficiency improvement measures, is currently increasing its emissions.
No evidence was found of the company’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.
No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.
No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
No public commitment by the company was found stating its intention to reskill and upskill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company reskills and upskills workers in a way that ensures gender balance and inclusion of vulnerable groups.
No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.
No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.
No evidence was found of a company commitment to respecting human rights or the ILO fundamental rights at work. Furthermore, the company can increase disclosure on its human rights due diligence process, engagement with affected stakeholders and grievance mechanisms available to workers and external stakeholders.
The company discloses the proportion of its direct workforce covered by collective bargaining agreements and some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, it can increase disclosure on these subjects, as well as on its living wage and working hours practices. Furthermore, no evidence in policy documents was found regarding a company commitment to respecting worker health and safety, nor was evidence found of a company commitment to gender equality and women’s empowerment.
No evidence in policy documents was found regarding the company’s anti-bribery and anti-corruption policy, lobbying and political engagement policy or global tax strategy. Additionally, the company can strengthen disclosure regarding its protection of employees’ and customers’ personal data.