2nd Dialogue with Experts on the Environment

Based on the dialogue with experts on the environment held on September 23, 2020, we formulated the ANA Group's Next Phase Environmental Plan (Draft) FY 2021-2030. By having participants think backward from the 2050 target, we received opinions and advice on how to draft this plan including identifying issues, disclosing information on a regular basis, and implementing the initiatives globally.

Yutaka Ito, Senior Executive Vice President, ANA HOLDINGS INC.

In preparation for generating regrowth in the post-coronavirus world, the ANA Group will consider ESG management issues more seriously than ever. The Japanese government has set an environmental target of reducing CO2 emissions from aircraft operations to 50% of the fiscal 2005 level. Since the start of Prime Minister Suga's administration, the government declared that Japan become carbon neutral by 2050, which presents us the issue of how to adjust our business in line with our own environmental targets by 2030. Through this dialogue, I hope that it can help illustrate the story we put forth in the 2030 medium- to long-term environmental plan, as we adapt to environmental changes and embody the "stable axis" of the ANA Group.

Chikako Miyata, Senior Vice President, Director of Corporate Sustainability, ANA HOLDINGS INC.

As fiscal 2050 targets were established before the coronavirus crisis, our state of uncertainty continues as the supply and cost of SAF is an issue for airline operations, and emission credits are not yet established as a measure of our standing in society. Even in areas other than airline operations, we also recognize that it is necessary to establish a system that can promptly respond to new renewable energy sources as they become available. However, we are exploring how far we should go in setting goals for 2030. The ANA Group would like to consider a timeline of three to five years in response to changes in the environment in order to demonstrate the effect of sustainability in our branding to differentiate ourselves from other companies. In addition, since solving these environmental issues by an individual company is limited, we recognize that it is important to engage in lobbying activities and collaborate with actors such as other companies and the government.

Yosuke Ikehara, Climate and Energy Group Leader, Conservation Division, WWF Japan

Recently, the external environment is changing significantly, and there are many cases where situations can change instantly. You need to start with setting targets first and also build a system that you can review the validity of these targets in the light of the latest external situations flexibly, even within a three-to-five-year period.
Specific actions include:

Reducing CO2 emissions in areas other than aircraft operations

• Declaring the RE100 pledge to maximize the renewable energy use

Reducing food waste

• Reducing CO2 emissions from an overall view of the supply chain
• By expanding the scope, correlate to SDGs 13, 14, 15 in addition to SDGs 8 & 12.

Reducing CO2 emissions related to aircraft operations

• Well to Wake (WTW) = SCOPE 1, 2 + SCOPE 3, Category 3
• Environmental measures that place greater emphasis on Science Based Targets (SBT) will be set as a goal.

It is important to show your stance of emphasizing SBT not only for CO2 emission reductions but also for natural assets such as water and forests as your 'stable axis' toward setting effective environmental goals. It is also a good idea to lobby for the necessity of carbon credits for the aviation industry to achieve zero emissions by involving other stakeholders. SBTi also allow the use of credits for out-of-target numbers (emissions that remain even after reductions). Your rationale and stance will also be clarified by setting forth numerical values based on RE100.
To enhance the effect of sustainability in your branding, it is important to align the vectors of decarbonization throughout the value chain with stakeholders as Toyota Motor Corporation does. It is also a good idea for the ANA Group to set forth your goals for 2050 and establish a management system that involves your suppliers.
For the target timelines, it is important to continue working to increase the ripple effect for 2050 and strengthen the probability of achieving your goals in 2030, and to improve your initiatives according to the situation.

Yasushi Hibi, Representative Director, CI Japan and Vice President, Conservation International (CI)

It is important for ANA Group to have a 'robust axis' of sustainability and show the world its commitment to environmental goals.
For example, when procuring sustainable food sources, the ANA Group can take the initiative to not only just procure sustainable food sources itself, but engage with suppliers and support the transformation of local agriculture and fisheries into sustainable ones, thereby encouraging positive behavioral change in society. Goods with sustainable certification, such as MSC and FSC, may not have sufficient supply in Japan yet, and therefore leading companies like ANA needs to work with suppliers to create such supply, not just the demand in order to play a larger proactive role in the transformation of society.
It is absolutely important for the ANA Group to commit to carbon neutrality at an early stage, especially to appeal to Millennials and Generation Z who will become your main customer base by around 2030-2050. It may be difficult to immediately convert to sustainable aviation fuels (SAFs) or special vehicles used at airports to electric vehicles (EVs), but there is still much that can be done such as with general vehicle fleets within Group companies. Target setting should adopt evidence-based methods like SBT with high accountability and transparency.
Finally, Japan often lacks presence in international rule-making processes, which is not only a loss for Japan but also loss for the international community. Proactive engagement by the ANA Group in such processes developing sustainability standards is strongly recommended.