Korean Air Lines

Korean Air Lines states that it is committed to a low-carbon transition and discloses its emissions intensity. However, it has not set a public target to reduce emissions. To demonstrate commitment to the low-carbon transition, the company should set long-term as well as regularly spaced intermediate targets aligned with its 1.5°C pathway and clearly report its base year emissions.

There is no evidence that Korean Air 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 ambition is sufficient for a 1.5°C pathway.

Korean Air Lines significantly reduced its scope 1 emissions intensity, by 3.3% annually from 2015 to 2020. This reduction was aligned with the company’s 1.5°C pathway. This is a result of fleet modernisation with most of the reduction occurring between 2016 and 2017. However, the company exceeded its cumulative carbon budget by 22% over the same period . Korean Air Lines’ fleet locked-in emissions between 2021 and 2035 are projected to greatly exceed its total 1.5°C carbon budget. To remain within its 1.5°C carbon budget the company must significantly increase the rate of reduction in its emissions .

In its ESG Report 2021, Korean Air Lines acknowledges that the aviation industry has a common goal of net zero by 2050. However, the company does not set this as a target. The company has no short or medium-term targets.

Korean Air Lines plans to reduce emissions through fleet modernisation and increased use of SAF. However, the company does not disclose a low-carbon transition plan or set out plans to shift to low-carbon vehicles.

Korean Air Lines plans to reduce emissions through fleet modernisation and increase the use of SAF. The company designs and manufactures aircraft parts that reduce emissions but the expenditure on research and development was not disclosed.

Korean Air Lines’ scope 1 emissions intensity decreased by 3% per year on average between 2015 and 2020. However, the company exceeded its carbon budget by 22% over the same period as its cumulative emissions were above the sector cumulative budget.

Despite acknowledging climate change as an issue Korean Air Lines does not have a clear transition plan in place, does not disclose planned investments or strategies for decarbonisation and has not set medium or long-term emissions reduction targets.

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 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 discloses some information on collective bargaining and workforce diversity fundamentals and has targets set for gender equality. However, it can strengthen its disclosure on these topics as well on other decent work issues including the provision of secure, safe and healthy workplaces, where workers are fairly remunerated and have a meaningful say in decision-making.

The company includes clauses regarding corruption and bribery in contracts with business relationships and has a grievance mechanism to report any such issues. However, the company can strengthen its disclosure on these subjects and other key ethical business topics, including tax, bribery and corruption, and lobbying and political engagement.