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1 Copyright is owned by the Author of the thesis. Permission is given for a copy to be downloaded by an individual for the purpose of research and private study only. The thesis may not be reproduced elsewhere without the permission of the Author.
2 THE EUROPEAN PHENOMENON EUROPEAN AIRLINE ENVIRONMENTAL REPO HTI~Gby Benjamin R. Day A research report submitted in partial fulfillment of the requirements for the degree of Master of Philosophy (Management) from MASSEY UNIVERSITY - P ALMERSTON NORTH NEW ZEALAND MASSEY UNIVERSITY 1999 IIIII I II IIII I I
3 Copyright by Benjamin R. Day 1999 All Rights Reserved Massey Unlversitl Library
4 To Kenmir
5 We must convince each generation that they are transient passengers on this planet earth. It does not belong to them. They are not free to doom. generations yet unborn. They are not at liberty to erase humanity's past nor dims its future. -Bernard Lown and Evjueni Chazov
6 Acknowledgements This research report represents the efforts of many people. It the culmination of determination, perseverance and a passion for aviation and sustainability. It was with ease that I chose this topic for my Masters research. A boyhood interest in aviation combined with a newly found desire to change humankind's unsustainable existence meant that the obvious result was a project involving airlines and the environment. Delyse Springett, my supervisor, mentor and friend has been the catalyst for a major revolution that has changed my view of the world and my calling in life. I am a better, wiser and "greener" person for it. Thank you for sharing your knowledge and wisdom and spending so much time with me over the years. Thank you for all of your effort and commitment, particularly for your English Grammar lessons! Thank you to all of the Environmental Managers and Communication staff members from the airlines involved in thi s research. Without your cooperation and input into this research, the project could never have been attempted. The airlines involved in this study are leading the industry, and in some cases, leading the world in the journey towards a viable and sustainable future. I hope this research assists other airlines embark on their own environmental journey, and in doing so, lead the industry towards some improved level of environmental and social responsibility. Thank you to my parents, whose spiritual (and financial!) assistance has made my own journey of self-discovery possible. I have always had their unconditional support, love and trust. There is no way I would have achieved this degree without them. I am one of the lucky ones. The work that thi s report represents is a result of many influences and the tireless effort of many people. However, any mistakes or omissions are my own responsibility. Benjamin R. Day, NZ; December, 1999
7 1 1. Table of Contents 1. TABLE OF CONTENTS...! 2. TABLES OF FIGURES THE LITERATURE REVIEW WHAT IS CORPORA TE ENVIRONMENTAL REPORTING? CER MOTIVATORS THE ARGUMENTS FOR AND AGAINST CER CER CONTENT AND REPORTING GUIDELINES THE GLOBAL REPORTING INITIATIVE (GRI) CER PERFORMANCE AND CURRENT BUSINESS TRENDS AVIATIONANDCER SUMMARY AND CONCLUSIONS PROBLEM STATEMENT RESEARCH QUESTIONS AND OBJECTIVES THE SURVEY: QUESTION ONE THE SURVEY: OBJECTIVE ONE THE CRITIQUE: Q UESTION ONE THE CRITIQUE: OBJECTIVE O NE IMPORTANCE AND BENEFITS OF THE STUDY THE SURVEY METHODOLOGY SURVEY CONSTRUCTS CRITIQUE METHODOLOGY AN OVERVIEW OF THE UNEP/SUSTAINABILITY 50 REPORTING INGREDIENTS INTRODUCTION TO THE SURVEY AND THE AIRLINE CER CRITIQUE THE SURVEY l NTRODUCTION BACKGROUND SURVEY RESULTS, ANALYSIS AND DISCUSSION SURVEY DISCUSSION AND CONCLUSIONS THE CRITIQUE OF AIRLINE CERS lntroduction THE UNEP/SUSTAINABILITY CRITERIA AS ACER ASSESSMENT TOOL TOTAL SCORES AND INDUSTRY COMPARISONS COMPANY AND INDUSTRY COMPARISONS SECTION ANALYSIS INDIVIDUAL QUESTION ANALYSIS AIRLINE CER CRITIQUE CONCLUSIONS...: FINAL CONCLUSIONS RECOMMENDATIONS RECOMMENDATIONS FOR AIRLINES
8 R ECOMMENDATIONS FOR FURTHER RESEARCH REFERENCES GLOSSARY OF TERMS APPENDICES APPENDLX A: CORRESPONDENCE APPENDIX B: THE S UR VEY C OVERING L ETTER APPENDIX C: AIRLINE E NVIRONMENTAL R EPORTING SURVEY APPENDLX D: AGGREGATE SURVEY R ESU LTS APPENDIX E : THE UNEP/SUSTA!NA BILITY 50 R EPORT ING I NGREDIENTS A PPEND LX F : THE CRITIQUE R ESULTS
9 3 2. Tables of Figures Box 1: THE A IRLINE CERS TO BE USED IN THE CASE STUDY Box 2: T HE CER CRITIQUE FORMAT B ox 3: AVERAGESCORESOF50% AND ABOVE.(% SCORE) Box 4: AVERAGE SCORES OF BELOW 50% (% SCORE) GRAPH 1: WHAT COUNTR IES ARE REPORTING? (KPMG, 1997) GRAPH 2: REGIONAL AND COUNTRY ANALYSIS OF SCORES (SUSTAINABILITY, 1997) GRAPH 3 : W HAT ARECERS R EPORTING ON? (KPMG, 1997) GRAPH 4 : 1996 AND 1997 CER T OP 10 PROGRESS: (SUSTAINABILITY, 1996 AND 1997) GRAPH 5 : COMPARISONS OF THE GLOBAL AND AUSTRALIAN TOP 10 R EPORTING CLUSTERS (SUSTAINABILITY, 1997) (SMEC, 1999) GRAPH 6: COMPARISON OF THE TOP 10 AUSTRALIAN AND GLOBAL REPORTS (SUSTAINABILITY, 1997) (SMEC, 1999) GRAPH 7: THE DECIS ION-MAKING JOURNEY. THE LEADERS OF THE PAST VS. THE DECISION-MAKERS OF TODAY GRAPH 8 : COMPARISON OF CER BARRIERS FROM THE F IRST CER PUBLICATION AND FROM THE MOST RECENT PUBLICATION GRAPH 9 : TOTAL CER SCORES GRAPH 10: PERCENTAGE SCORES FOR THE CER CRITIQUE GRAPH 11: COMPANY COMPARISONS GRAPH 12: INDUSTRY CER COMPARISONS GRAPH 13: SECTION PERCENTAGE SCORES GRAPH 14: QUESTION SCORES DEPICTED ON A STACKED AREA GRAPH GRAPH 15: AVERAGE SCORES FOR QUESTIONS 1 TO GRAPH 16: COMPARISON OF AIRLINE CER TOP MANAGEMENT STATEMENT SCORES GRAPH 17: COMPARISON OF ENVIRONMENTAL POLICY SCORES GRAPH 18: COMPARISONS OF ENVIRONMENTAL MANAGEMENT SCORES GRAPH 19: MANAGEMENT RESPONSIB ILITY AND ACCOUNTABILITY GRAPH 20: ENVIRONMENTAL AUDITING RESULTS GRAPH 21: ENVIRONMENTAL GOALS AND TARGETS GRAPH 22: AIRLINE CER LEGAL COMPLIANCE GRAPH 23: RESEARCH AND DEVELOPMENT GRAPH 24: AWARD SCORES GRAPH 25 : CER VERIFICATION SCORES GRAPH 26: REPORTING POLICY SCORES GRAPH 27: CORPORATE CONTEXT SCORES GRAPH 28: MATERIAL USE SCORES GRAPH 29: ENERGY COMPARISON SCORES GRAPH 30: WATER CONSUMPTION SCORES G RAPH 31: ECO-EFFICIENCY SCORES GRAPH 32: H EALTH AND SAFETY SCORES GRAPH 33: ACCIDENTS AND EMERGENCY R ESPONSE SCORES GRAPH 34: R ISK MANAGEMENT AND EIA SCORES GRAPH 35: LAND CONTAMINATION AND R EMEDIATION SCORES G RAPH 36: STEW ARDS HIP SCORES GRAPH 37: WASTE M INIM ISATION SCORES GRAPH 38: AIR EMISSIONS SCORES GRAPH 39: WATER EFFLUENT SCORES GRAPH 40: N OISE AND ODOURS GRAPH 4 1: TRANSPORTATION SCORES GRAPH 42: LIFE-CYCLE D ESIGN SCORES GRAPH 43: ENVCRONMENTAL IMPACTS l
10 4 GRAPH 44: PRODUCT STEWARDSHIP SCORES GRAPH 45: PACKAGING SCORES GRAPH 46: ENVfRONMENTAL SPENDING SCORES GRAPH 47: ENVfRONMENTAL LIABILITY SCORES GRAPH 48: MAR KET SOLUTION SCORES GRAPH 49: ENVfRONMENTAL COST ACCOUNTING SCORES GRAPH 50: CHARITABLE CONTRIBUTION SCORES GRAPH 51: EMPLOYEE SCORES GRAPH 52: POLITICIANS, LEGISLATORS AND R EGULATOR SCORES GRAPH 53: LOCAL COMMUNITY SCORES GRAPH 54: I NVESTOR SCORES GRAPH 55: SUPPLIERS AND CONTRACTOR SCORES GRAPH 56: CUSTOMERS AND CONSUMER SCORES GRAPH 57: ENVIRONMENTAL GROUP SCORES GRAPH 58: SCIENCE AND EDUCATION SCORES GRAPH 59: OTHER SCORES GRAPH 60: TECHNOLOGY SCORES GRAPH 61: GLOBAL ENVIRONMENT SCORES GRAPH 62: GLOBAL DEVELOPMENT SCORES GRAPH 63: GLOBAL OPERATING STANDARD SCORES GRAPH 64: REPORT DESIGN SCORES GRAPH 65: VISIONS, SCENARIOS, AND FUTURE TREND SCORES ILLUSTRATION l : AN OVERVIEW OF T HE RESEARCH PROJECT ILLUSTRATION 2: AN OVER V JEW OF THE R ESEARCH CONCLUSION PROCESS LIST l: AN OVERVIEW OF THE 50 REPORTING INGREDIENTS TABLE 1: RESEARCH CONSTRUCTS AND CONCEPTS TABLE 2: AIRLINE B ACKGROUND INFORMATION TABLE 3: RESULTS FROM QUESTION 4. " DID THE A IRLINE REFER TO ANY CER FRAMEWORK"? TABLE 4: THE YEAR OF THE F IR ST CER AND THE EXTERNAL CER FRAMEWORKS USED T ABLE 5 : THE RANKED EXTERNAL "DRIVERS" FOR PUBLISHING CERS TABLE 6: THE R ANKED INTERNAL " DRIVERS" FOR PUBLISHING CERS TABLE 7: B ENEFITS FROM PUBLISHING CERS TABLE 8: RESULTS FOR QUESTION l O AND QUESTION TABLE 9: RESULTS FOR QUESTION TABLE 10: RESULTS FOR QUESTION TABLE 11: WHAT ARE THE A IRLINES SHARING WITH THEIR ALLIANCE PARTNERS? T ABLE 12: ARE THE AIRLINES MARKETING THEMSELVES AS ENVIRONMENTALLY RESPONSIBLE? TABLE 13 : ARE THE AIRLINES USING THEIR CERS AS MARKETING TOOLS? TABLE 14: THE B ARRIERS EXPERIENCED WHEN DEVELOPING THE FfRST CER TABLE 15: HAVE THE B ARRIERS CHANGED SINCE THE PUBLICATION OF THE FfRSTCER? TABLE 16: THE BARRIERS EXPERIENCED WHEN D EVELOPING THE LATEST CER (OUT OF 5 AfRLINES) TABLE 17: WILL THE AIRLINES CONTINUE P UBLISHING CERS? TABLE 18: WILL THE AIRLINES INTEGRATE THE CERS INTO COMPANY ANNUAL REPORTS? TABLE 19: AIRLINE R ANKINGS AND CATEGORIES T ABLE 20: SECTION R ANKINGS FOR THE "ALL CERS" GROUPING T ABLE 21: SECTION R ANKINGS FOR GROUP l TABLE 22: SECTION R ANKINGS FOR GROUP T ABLE 23: TOTAL SCORES TABLE 24: SECTION TOTALS TABLE 25: SECTION TOTALS FOR GROUP l TABLE 26: SECTION SCORES FOR GROUP T ABLE 27: THE 50 QUESTIONS AND THE R ESULTS
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