LATAM Airlines Group is a publicly listed company headquartered in Chile. In 2021 its revenue was USD 5.11 billion. LATAM is Latin America’s leading airline group and one of the largest airline groups worldwide in terms of network connections. It has a presence in five domestic markets in South America, and international operations in the Caribbean, Europe, and the USA.
LATAM has several programmes to influence customer behaviour. Information sharing and customer education campaigns are on the company website, alongside the Fly Neutral programme. The Fly Neutral programme offers LATAM corporate clients the ability to calculate and voluntarily offset their CO2 emissions using the company’s calculator. However, LATAM has no clear strategy to influence customer demand for low-carbon transport alternatives. The company should set out a clear strategy to promote its low-carbon solutions to customers , which could include providing financial incentives such as discounts or engaging in marketing campaigns.
LATAM has a net-zero target for scope 1 and 2 emissions by 2050. However, the company doesn’t identify the base year for these targets and it also plans to use an undisclosed level of carbon offsets. It is unclear what percentage of the target will be achieved through these offsets, although the company indicated it wants to offset 50% of its domestic emissions by 2030. For this reason, the company’s target could not be assessed. LATAM’s long-term targets cover the majority of the average expected lifetime of its vehicles. However, the company should also set interim targets at intervals of no greater than five years. Regularly spaced intermediate targets will help the company maintain focus on short- and medium-term progress towards long-term changes and targets.
Research and development (R&D) expenditure on low-carbon vehicles and energies will be essential for LATAM to develop a low-carbon fleet. However, no evidence was found that LATAM is investing in R&D of l ow-carbon vehicles and energies to reduce its emissions. Although the company has developed a carbon emissions calculator, it does not disclose what proportion of its R&D expenditure is invested in low-carbon digital solutions. No information could be found on the company’s current spending on climate-related training.
LATAM has developed a low-carbon transition plan, aiming to offset 50% of domestic emissions by 2030 and to achieve net-zero scope 1 and 2 emissions by 2050 . It has introduced emissions offsetting and fuel economy initiatives and plans to invest in sustainable aviation fuels (SAF). The company provides digital support for pilots to continuously monitor flight performance and is also renewing its fleet with more efficient aircraft . The company is in the process of integrating 70 A320neo-family aircraft into its fleet, representing 20% of total fleet capacity. However, LATAM does not disclose the estimated cost of the low-carbon transition to the company. LATAM has not conducted a climate scenario analysis to inform its transition plan and ensure its alignment with a 1.5°C pathway.
LATAM receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. Based on its current fleet, the company is projected to greatly exceed its total 1.5°C carbon budget for the period between 2022 and 2036. LATAM has demonstrated limited evidence that it plans to change its business model to facilitate a low-carbon transition. Its transition plan and targets are heavily reliant on the use of offsets, as it plans to offset 50% of domestic emissions.
LATAM has set a target to reach net-zero scope 1 and 2 emissions by 2050. However, the company plans to use offsets to achieve its target. Further details of the company’s emission reduction targets and low-carbon vehicle development plans are not specified.
LATAM plans to adopt new technologies, improve the efficiency of its flight operations and use carbon offsets. It plans to have 5% SAF in its fuel mix by 2030. However, LATAM does not disclose the estimated cost of the low-carbon transition to the company.
LATAM’s corporate clients can voluntarily compensate for their carbon footprint through a portfolio of projects using its Fly Neutral programme . By 2021, LATAM had also integrated 12 of the 70 A320neo-family aircraft on firm order into its fleet. These use 15% less fuel than A320ceo aircraft.
Although LATAM has made operational improvements to reduce fuel use, between 2015 and 2020 LATAM’s cumulative emissions have been consistently above the 1.5°C scenario values and the company exceeded its carbon budget by 18%.
LATAM’s ambition to decarbonise its operations by 2050 is undermined by its lack of a comprehensive low-carbon transition plan. The plan is heavily reliant on offsets and lacks details regarding the company’s intended actions , interim targets and financial commitment to increase the proportion of low-carbon vehicles in its fleet and the use of alternative fuels (such as SAF) at the scale required to achieve its net-zero goal.
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.
The company discloses the actions it takes to create local jobs in areas where it operates through supplier partnerships. However, 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.
The company commits to respecting human rights and the ILO fundamental rights at work. It also 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. Additionally, it can increase disclosure on engagement with affected stakeholders and grievance channels for workers and external stakeholders.
The company commits to respecting the health and safety of its workers and expects the same commitment from its business relationships. It also has a target to increase the proportion of women in its workforce to 40% by 2030. However, no evidence was found of a broader-level company commitment towards gender equality and women’s empowerment. 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.
The company commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data of employees and customers. While the company includes anti-bribery and anti-corruption clauses in its contracts with business relationship, no evidence was found of a policy prohibiting bribery and corruption in its own operations. Additionally, the company can strengthen disclosure on its global tax strategy and approach to lobbying and political engagement.