IndiGo (also known as InterGlobe Aviation) is a publicly listed company headquartered in India. In 2020 its revenue was USD 2.12 billion. IndiGo is a low-cost airline and the largest airline in India by passengers carried and fleet size. It is also the largest individual Asian low-cost carrier in terms of jet fleet size and passengers carried, and the fourth largest carrier in Asia.
IndiGo does not have any specific decarbonisation targets. In principle the company agrees with ICAO’s long-term goal is to reduce aviation’s CO2 emissions by 50% by 2050 compared to 2005, but IndiGo has not committed to a similar target. The company should develop a target that aligns with its 1.5°C pathway. Additionally, IndiGo should set intermediate targets at gaps of no more than five years to incentivise near-term actions on a longer-term goal. The company should clearly report its base year emissions and any offsetting it intends to use to allow for a complete analysis of its targets and progress against them.
IndiGo saw a moderate decline in its scope 1 emissions intensity between 2015 and 2019, passenger emissions intensity decreased by approximately 2% per year in that period. This reduction is almost aligned with the company’s 1.5°C pathway, which requires a 1% annual decrease in scope 1 emissions intensity between 2020 and 2025. IndiGo saw an increase in its emissions intensity in 2020 likely due to the impact of the COVID-19 pandemic. Its fleet locked-in emissions between 2021 and 2036 are projected to exceed its total 1.5°C carbon budget for the period by nearly 8%.
IndiGo aims to reduce its emissions through fleet modernization, fuel efficiency practices, engine data monitoring and optimizing flight routes. However, there is no evidence that the company has a low-carbon transition plan. The company should establish a time-bound action plan that outlines how it will transition to a low-carbon economy. This should include 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 plan’s company’s ambition is sufficient for a 1.5°C pathway.
IndiGo has a sustainable procurement programme, and the company requires that suppliers should reduce their impact on the environment. Although the company’s suppliers are required to comply with a supplier code of conduct, the document is not publicly available. The company is working on big data analytics with Airbus, using the Airbus SKYWISE platform to measure and manage IndiGo’s performance and impact. However, these initiatives do not constitute a strategy to drive emissions reductions in its supply chain
IndiGo receives a trend score of =. If the company were reassessed in the near future, its score would likely remain the same. Before the COVID-19 pandemic, IndiGo had decreased its emissions intensity between 2015 and 2019, at a rate of about 2% annually. The company owns a modern fleet and has made efforts to reduce its fuel consumption and optimise its routes. Although IndiGo has achieved emissions reductions, the company lacks a coherent transition plan, thus its current progress is likely to falter.
The company does not have any decarbonisation targets. The company does make reduction efforts through software solutions, aircraft purchase decisions, aircraft upgrades, and route optimisations, however, these actions are not forming part of a coherent transition plan.
IndiGo has an efficient fleet with an average age of just 5 years and about half consisting of A320neo aircraft, which use up to 15% less fuel than its A320ceo counterpart. IndiGo uses the Airbus SKYWISE platform to measure and manage its performance and impact.
IndiGo’s passenger emissions intensity decreased by 2% per annum between 2015 and 2019. However, a significant reduction in activity in 2020, due to COVID-19, led to a large increase in emissions intensity.
IndiGo has only recently begun exploring the viability of alternative fuels in its operations. It does not have a transition plan or emissions reduction targets. It has signed a memorandum of understanding with sustainable aviation fuel (SAF) producer. However, IndiGo has not made any financial commitment to purchasing SAF or committed funds to low-carbon R&D.
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.
The company discloses the actions it takes to provide training and upskilling opportunities for workers and affected stakeholders. For instance, it educates its staff and provides educational opportunities in partner schools. 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 initiatives for capacity and skill building among rural women. 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 or 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 has a grievance mechanism available to workers and external stakeholders. However, no other policies or commitments of the company related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.
The company is committed to protecting the health and safety of its workers, is committed to women’s empowerment and discloses some workforce diversity information. However, the company can strengthen its disclosure on these topics and other key decent work issues that ensure secure, safe, and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision-making.
The company commits to protecting personal data. However, no evidence was found of a privacy statement regarding the collection, sharing and access to personal data. The company also has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. The company can strengthen its disclosure on these topics and other key ethical business topics including tax, bribery and corruption, and lobbying and political engagement.