Air France-KLM is a publicly listed company headquartered in France with a minority stake held by the French and Dutch governments. The company was formed by a merger between Air France and KLM in 2004. In 2021 its revenue was USD 16.3 billion.
In 2022, Air France-KLM committed to the Science Based Targets initiative (SBTi) and set a target to reduce the emissions intensity of its passenger flight operations by 30% by 2030 compared to 2019 without the use of carbon offsets. The target is not yet validated by the SBTi. Air France-KLM has also set a target to reach net-zero by 2050. However, this target includes an unknown quantity of offsets. The company can improve its emission reduction performance by setting a short-term target to incentivise near-term action towards its 2030 target. Air France-KLM should also set multiple intermediate targets between 2030 and 2050 at intervals of no more than five years to drive long-term change.
Air France-KLM’s emissions intensity increased significantly in 2020 compared to previous years due to the impact of lower passenger numbers during the COVID-19 pandemic. This counteracts the marginal decrease in the company’s passenger and freight emissions intensities between 2018 and 2019. Prior to 2018, Air France-KLM only disclosed the combined emissions intensity of passenger and freight activities. Between 2016 and 2019, the company’s combined passenger and freight intensity decreased by 2% per year. The company needs to reduce its combined passenger and freight emissions intensity by at least 4% per year to meet its 1.5°C pathway.
There is no evidence to suggest that Air France-KLM has a track record of reducing emissions directly through supplier engagement. However, the company has established partnerships with SAF suppliers. In 2019, KLM and SkyNRG announced plans to develop Europe’s first dedicated SAF production plant. However, the plant remains to be constructed as of 2022. The company also collaborates on research and development (R&D) projects, such as KLM and the University of Delft’s project to design a V-shaped aircraft that is expected to improve flight efficiency by 20%. Nevertheless, the company should develop a formal strategy to influence suppliers to reduce emissions.
Air France-KLM receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. The company is projected to exceed its carbon budget between 2022 and 2036. Although the company has set an ambitious target to reduce emissions intensity by 30% by 2030, it does not have a robust transition plan for the future. Its long-term strategy is limited to increasing the use of SAF, improving efficiency and developing technologies that are currently in the R&D phase.
Air France-KLM has set a target to reduce scope 1 emissions intensity by 30% by 2030 compared to 2019 without the use of offsets. The company has also committed to reaching net-zero by 2050. However, this target includes carbon offsetting.
Air France-KLM aims to modernise its fleet and increase the SAF share of its fuel use to 10% by 2030 and to 60% by 2050. The company has not set out comprehensive plans to achieve its net-zero target, such as shifting to low-carbon vehicles.
The company’s combined freight and passenger emissions intensity decreased by approximately 2% per year between 2016 and 2019 . However, it then significantly increased in 2020 and 2021 due to the impact of COVID-19. The company needs to decrease its emissions intensity by 4% per year to meet its 1.5°C pathway.
The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show 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.
The company discloses the actions it takes to create jobs, including job creation programmes in regions especially impacted by job losses from changed operations. It also discloses the measures it takes to ensure that these jobs embed equality of opportunity for women and vulnerable groups. In particular, it has plans to ensure that gender balance and inclusion of people with disabilities is especially considered in the recruitment process. However, no evidence was found of the company committing to create and support access to green and decent jobs as part of the low-carbon transition. Furthermore, no relevant disclosure was found of the company’s assessment of employment dislocation risks.
The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, it provides a range of training opportunities for its staff. Furthermore, the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through skills initiatives for young people and people with disabilities. However, no evidence was found of the company having a process for identifying skills gaps for workers and stakeholders affected by the low-carbon transition, nor of a public commitment to help workers displaced by the transition to reskill or upskill .
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.
The company commits to respecting human rights and the ILO fundamental rights at work, and it expects its business relationships to respect the ILO fundamental rights at work. However, no evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities.
The company sets time-bound targets related to women in the workforce and discloses some fundamental indicators of workforce diversity, including the age and gender of its workforce by employee category. The company also expects its suppliers to respect the health and safety of their workers. However, the company can strengthen its disclosure on these subjects, as well as on its living wage and working hours practices.
The company does not disclose a global tax strategy or a commitment to protecting personal data of all stakeholders. However, the company has a policy prohibiting bribery and corruption and it includes corresponding clauses in its contracts with business relationships. The company also has a lobbying and political engagement policy, and it specifies that it does not make political contributions.