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American Airlines and Deloitte Pioneer Market-based Solution to Reduce Carbon Emissions From Air Travel

Innovative pilot program designed to increase production of sustainable aviation fuel

SOURCE: American Airlines

DESCRIPTION:

FORT WORTH, Texas, February 26,2021 /3BL Media/ ― American Airlines and Deloitte today announced an innovative collaboration to advance the use of sustainable aviation fuel (SAF) to reduce emissions from aviation. The SAF emissions agreement between American and Deloitte reduces life cycle emissions from aviation by 3,050 metric tons of carbon dioxide (CO2), which is equivalent to approximately 10,000 passengers flying one-way from New York City to Los Angeles.

This is one of the first collaborations between an organization seeking to reduce net emissions from business travel and a U.S. airline that is using SAF in its daily operations. This provides Deloitte with an opportunity within aviation to help meet its ambitious goal to reduce its business travel emissions per employee by 50% by 2030. Deloitte recognizes the importance of SAF in enhancing its ability to connect with clients through sustainable business travel.

“We recognize the important role the business community plays in facilitating the transition to a low carbon economy. It’s a monumental task no organization can solve alone, which is why we’re looking forward to working with American Airlines on a new concept to accelerate adoption of a fuel source that can dramatically reduce emissions from aviation,” said Joe Ucuzoglu, Deloitte US CEO. “To make meaningful progress in combating climate change, it’s crucial that organizations continue to collaborate through innovative solutions and bold actions.”

Deloitte and American recognize that SAF is an important tool to reduce aviation emissions, though it is not yet available at the scale or price needed to reduce emissions significantly. This collaboration will explore how a new market-based solution ― a certificate that allocates the emissions reduction value of SAF ― can benefit companies seeking to reduce their Scope 3 business travel emissions.

“Investing in the decarbonization of aviation is an imperative for our company and our industry,” said Doug Parker, Chairman and CEO of American. “As we work toward our own goal of achieving net-zero emissions by 2050, we know we can help accelerate the transition to low-carbon air travel through collaborations like these, meeting the needs of our customers and the planet. We are proud and excited to be working with Deloitte to advance our shared vision for a more sustainable future.”

The SAF certificate is a concept under development by the World Economic Forum’s Clean Skies for Tomorrow initiative, aimed at unlocking new capital to boost SAF production by harnessing the ambition of corporate climate goals to reduce emissions from business travel. SAF, in conjunction with certificates, can be used by corporations to help meet their sustainability goals.

“We recognize that the most immediate action to achieve carbon-neutral flying is the investment in, and rapid scale-up of, sustainable aviation fuel production and use ― which in turn will require innovative regulatory mechanisms and clear demand signals,” said Christoph Wolff, Head of the Shaping the Future of Mobility Program at the World Economic Forum. “We’re delighted to see this demonstration by Deloitte and American Airlines that a new market-based mechanism is viable and can help meet the needs of corporations with ambitious climate goals.”

Deloitte’s Commitment to Sustainability

Our purpose is brought to life through our commitment to help drive responsible climate choices as part of the WorldClimate ambition, and in support of the Paris Agreement.

We recognize change starts within. Deloitte has set standards for itself, including achieving net-zero emissions by 2030. We will also look to connect with others, empowering our professionals and engaging our broader ecosystem, to create solutions that facilitate the transition to a low carbon economy. This will require reimagining, reinventing and redesigning many of the day-to-day experiences of our lives, as well as how businesses and economies operate.

American’s Climate Change Strategy

In response to the pressing global challenge of climate change, American set a goal to reach net-zero carbon emissions by 2050 and developed a clear pathway to achieve it. Reducing use of traditional jet fuel is a core focus of the airline’s climate change strategy, which is why American has undertaken the most extensive fleet replacement initiative in the history of commercial aviation and committed to purchase 9 million gallons of sustainable aviation fuel over the next three years. That SAF meets or exceeds all the performance characteristics of petroleum-based jet fuel but is made from sustainably sourced feedstocks and has lifecycle CO2 emissions that are at least 75% lower than those of petroleum-based jet fuel.

Over the longer term, American is working to facilitate broader advancements in policy, markets, infrastructure and technology that will ultimately enable the transition to low-carbon aviation. While there are many steps the airline can take to reduce its carbon footprint, transitioning to a low- or no-carbon aviation future will depend on the combined efforts of the private sector and effective policies from governments at all levels, along with advances in airframe, engine and fuel technologies. More information on American’s sustainability strategy is available in the airline’s most recent ESG report.

About Deloitte

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including nearly 90% of the Fortune 500® and more than 7,000 private companies. Our people come together for the greater good and work across the industry sectors that drive and shape today’s marketplace — delivering measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to see challenges as opportunities to transform and thrive, and help lead the way toward a stronger economy and a healthier society. Deloitte is proud to be part of the largest global professional services network serving our clients in the markets that are most important to them. Now celebrating 175 years of service, our network of member firms spans more than 150 countries and territories. Learn how Deloitte’s more than 330,000 people worldwide connect for impact at www.deloitte.com.

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as “Deloitte Global”) does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates. Certain services may not be available to attest clients under the rules and regulations of public accounting. Please see www.deloitte.com/about to learn more about our global network of member firms.

About American Airlines Group

American’s purpose is to care for people on life’s journey. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL and the company’s stock is included in the S&P 500. Learn more about what’s happening at American by visiting news.aa.com and connect with American on Twitter @AmericanAir and at Facebook.com/AmericanAirlines.

Tweet me: .@AmericanAir and @Deloitte today announced an innovative collaboration to advance the use of #sustainable aviation fuel (SAF) to reduce emissions from aviation. https://bit.ly/3kqcSy8

KEYWORDS: NASDAQ:AAL, American Airlines, Deloitte, sustainable aviation fuel (saf)

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