China Southern Airlines is a majority state-owned company headquartered in China. In 2021 its revenue was USD 14.73 billion. China Southern Airlines is Asia's largest airline in fleet size, revenue and passengers carried. The Chinese Government holds majority ownership of China Southern Air Holding Company, the parent company of China Southern Airlines.
China Southern Airlines has set a target to achieve net zero by 2050. However, the alignment of the target with the company’s 1.5°C pathway could not be assessed because of the target’s unquantified reliance on offsets. The use of offsets reduces the emphasis on direct action to reduce emissions. The company has not set intermediate targets that cover all business activities. Setting regularly spaced intermediate targets will incentivise near-term actions on longer-term goals.
China Southern Airlines plans to reduce emissions through energy efficiency improvements. These efficiency improvements will not make the required changes for the company to transition to a low-carbon economy. The company has prepared a CO2 emission targets and achievements report but it is not publicly available. China Southern Airlines’ should make publicly available a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include short, medium and long-term targets, verifiable and quantifiable key performance indicators and financial commitments. The plan should be informed by scenario analysis to ensure that the company’s ambition is sufficient for a 1.5°C pathway.
China Southern Airlines has a supplier code of conduct that encourages suppliers to take measures to improve efficiency, carry out carbon audits and develop plans to reduce emissions. However, the consequences for non-compliance are not made public. It has examples of aircraft modifications that have led to fuel savings but it is not clear whether the company was involved in the research and development of these projects. The company should develop a formal strategy to influence suppliers to reduce emissions.
China Southern Airlines receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. China Southern Airlines is projected to greatly exceed its carbon budget for 2022-2036. Although the company has set a target to be net-zero by 2050, it is unclear how the company plans to achieve decarbonisation.
China Southern Airlines has prepared a CO2 emission targets and achievements report but it is not publicly available. From the publicly available data, the company’s transition plan is unclear. The company is focused on energy efficiency improvements for its aircraft.
China Southern Airlines has used technology to improve the efficiency of flights through measures such as route optimisation and fuel management. The company does not disclose its current spending on research and development into carbon removal and reduction technologies.
China Southern Airlines’ scope 1 and 2 emissions intensity decreased by 1% per year on average between 2016 and 2021. However, this decrease is not aligned with the company’s future 1.5°C pathway. The company exceeded its carbon budget by 34% over the same period.
China Southern Airlines has set a target to be net zero by 2050. However, the company report that details how it plans to achieve this is not publicly available. The lack of transparency means that it is not possible to assess the company’s transition plans.
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 and 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 up-skill workers displaced by the transition to a low-carbon economy. Additionally, no evidence was found that the company re- and up-skills 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 in policy documents was found of a company commitment to respecting human rights or all of 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.
While the company expects its business relationships to commit to respecting worker health and safety, no evidence in policy documents was found of the same commitment by the company for its own operations. The company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, it can increase disclosure on additional indicators of workforce diversity, as well as on its living wage, working hours and collective bargaining practices. Furthermore, the company can strengthen its 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.