Dialogue with ESG rating agencies

In 2023, the ANA Group exchanged views with ESG rating agencies and experts from six overseas organizations on the progress of the ANA Group's ESG management.

Summary of comments from experts

ESG in general

• Going forward, ANA HOLDINGS INC. is expected to disclose information in the form of a story that demonstrates that its corporate structure is resilient enough to appropriately respond to changes in social trends (volatility).
• With assessment bodies requiring higher levels of corporate information disclosure, companies are being looked at regarding whether they can disclose non-financial and financial information in a way adapted to changes in social trends. Therefore, what is required is a sustainable balance sheet, and it is crucial to build a business model for maintaining a balance between profit and duty.
• For information disclosure, guidelines that combine the TCFD and TNFD recommendations with social aspects (business and human rights, or BHR) have been established. CCE is also closely watching the developments of the ISSB. Conducting financial risk assessments based on single materiality is particularly important. However, taking this approach alone will result in a lack of impact assessment and thus requires engagement with stakeholders. From this viewpoint, the approach of the Corporate Sustainability Reporting Directive (CSRD), which requires double materiality, can be considered the most universal way of information disclosure at present.

Environment

• We appreciate that you are taking action on the Paris Agreement's 1.5°C scenario in cooperation with such organizations as ICAO and WWF, and that you have appropriately responded to CDP.
• It deserves appreciation that you are working on direct air capture and other initiatives toward achieving net zero by 2050, in addition to sustainable aviation fuel (SAF). Among them, we are strongly interested in Green Operations under pilot operation.
• Procurement of SAF is included in your ESG strategy toward reducing the environmental impact. It is hoped that some targets will be set, such as the percentages of SAF to be procured in 2030 and 2050.
• Regarding decarbonization efforts, various airlines have announced their plans for transition to SAF, but some people are skeptical about the feasibility of net zero by 2050 because the current SAF supply accounts for only 0.24% of the fuels procured by the aviation industry. There is a need to present initiatives, including alternative plans, that can overcome the skepticism.

Human capital and human rights

• We are interested in efforts related to human capital (e.g., respect for human rights, including in the supply chain, and reskilling), in particular, in the issues of securing safe recruitment channels for ANA group's foreign workers (technical intern trainees) and respect for their human rights (through NINJA). We particularly emphasize the importance of engagement with rights holders.
• We highly appreciate your commitment to engagement with rights holders through an approach centered on deep investigation. As part of this, we look forward to how you can conduct quantitative scenario analysis based on qualitative analysis, with narratives that illustrate the vision of a company desired in society in 2050.