United Airlines Holdings

United is the only benchmarked airline to have agreed to purchase electric aircraft. The company has committed to acquire 100 19-seat ES-19 electric aircraft from the Swedish company, Heart Aerospace. The electric aircraft will be capable of flying customers up to 250 miles. United could begin flights as early as 2026 subject to meeting safety, business and operating requirements. The company’s regional partner, Mesa Air Group has also agreed to purchase 100 of the aircraft. United also expects to purchase 100 hydrogen-electric engines from the aircraft developer, ZeroAvia. United claims that the engines could begin to be retrofitted onto existing regional aircraft by 2028. To align with the 1.5°C sector scenario in 2035, the company should aim for at least 30% of its fleet to be low-carbon aircraft.

United has set a 1.5°C-aligned target to reach net-zero emissions by 2050 across its flight operations, including those subcontracted to third-party companies. It has also set an intermediate target to reduce its scope 1, 2 and 3 emissions intensity by 50% by 2035 compared to 2019. The company aims to achieve its targets without the use of offsets. Rather, United has committed to invest in DAC to remove emissions that cannot be reduced through direct company action. To demonstrate commitment to the low-carbon transition, the company should set regular intermediate targets with intervals of five years or less, as well as short-term targets. This can drive ongoing accountability for managing emissions.

In 2021, the company launched United Aviation Ventures (UAV), which invests in and collaborates with companies undertaking research and development (R&D) in low-carbon innovations. To date, innovations include small electric aircraft intended as ‘air taxis’, regional electric aircraft and hydrogen-electric engines. UAV is also collaborating with a biotech firm to develop sustainable aviation fuel (SAF) by converting carbon dioxide into fuel. United does not disclose what proportion of its R&D expenditure is invested in low-carbon innovations. The company should ensure that a significant proportion of its R&D investment is in low-carbon vehicles and fuel development.

United has contractual relationships with various regional carriers to provide air transport services branded as United Express. The regional carriers operate with capacity subcontracted by United under capacity purchase agreements (“CPAs”). The company reports absolute emissions from the subcontracted regional carriers in its scope 3 reporting. The regional carriers represented 18% of United’s absolute in-flight emissions in 2019, a significant proportion of the company’s total. However, it is not possible to assess the performance of the subcontracted activities because United does not report passenger or freight activity data for them.

Despite agreeing to purchase electric aircraft and to retrofit hydrogen-electric engines, United has agreed to purchase up to 50 supersonic passenger aircraft that it plans to have in service by 2029. The company states that supersonic flights will be fuelled by SAF. However, without a significant scaling up of SAF use, the company risks undermining its commitments to low-carbon aircraft by increasing high-carbon activities such as supersonic flights.

United has set a target to reduce scope 1, 2 and 3 emissions intensity by 50% by 2035 compared to 2019. It also aims to reach net-zero emissions by 2050. United will not rely on carbon offsets to achieve its targets.

United plans to increase the share of sustainable aviation fuel (SAF) in its fuel mix and invest in new technologies. The company also plans to invest in DAC projects. In 2020, it announced its intention to invest in 1PointFive, Inc., a project to build the first industrial-sized DAC plant in the USA that will be capable of sequestering one million tonnes of CO2 per year.

Through United’s investment arm, United Aviation Ventures, the company is investing in companies that are undertaking R&D in low-carbon aircraft and SAF. For example, the company will acquire 100 19-seat electric aircraft for regional travel that could fly as early as 2026.

United’s scope 1 emissions intensity for passengers and freight decreased by 1% per year between 2015 and 2019 before sharply increasing in 2020 due to the impact of COVID-19. The company’s pre-COVID-19 reduction was not aligned with the company’s 1.5°C pathway that requires a 4% annual reduction between 2020 and 2025.

United’s use of SAF is negligible compared to conventional fuel. The agreements with suppliers to purchase 170 million gallons per year of SAF in the future is less than 5% of conventional fuel use in 2019. In addition, United plans to purchase up to 50 supersonic aircraft, undermining its low-carbon aircraft commitments.

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 takes action to provide training opportunities for workers and the company discloses the measures it takes to embed equality of opportunity for women and vulnerable groups in these actions. It does this through setting targets for ensuring access to training to female employees, and employees of colour. 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.

While the company commits to respecting human rights, it does not disclose on the necessary policies and systems to ensure respect for basic human rights of tis workers, in its operations and supply chain.

The company commits to worker health and safety and discloses some workforce diversity fundamentals. However, the company can strengthen its disclosure on these topics, as well as increase disclosure on related topics such as living wages, collective bargaining and show commitment to women’s empowerment.

The company has policies regarding anti-bribery and anti-corruption, and a grievance mechanism to ensure that anyone can make complaints in regards to bribery and corruption. No other policies or commitments of the company on key ethical business topics – personal data protection, tax, and lobbying and political engagement were found in the public domain. This includes ensuring ethical business conduct throughout its operations and in its relationships with business partners.