Managing climate risk
Learn about how we're managing our climate risk by enhancing our understanding of the physical and transitional risks, as well as emerging opportunities that may arise from a changing climate.
We recognise human-induced climate change is a significant issue for the aviation industry. We're committed to reducing our emissions in line with the Paris Climate Agreement to limit warming to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels.
Aviation has been at the forefront of the global business response to climate change, becoming the first industry to voluntarily commit to emission reduction targets as far out as 2050. We're playing an active role in setting and meeting these ambitious targets, and we’re guided by a simple philosophy: measure, reduce, offset and influence.
In line with this, the Qantas Group committed in 2017 to align our climate change-related disclosures to the recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). Since then, the Group has been working to implement these across the core elements of climate-related disclosures.
The Group has partnered with external consultants and climate change experts to further understand the physical and transitional risks, as well as emerging opportunities that may arise from a changing climate.
What is scenario analysis?
Climate scenario analysis allows the Qantas Group to estimate how we are positioned to withstand different climate futures over the medium to long-term. In doing so, we can ensure that our business is resilient in the transition towards a low carbon economy.
The Group undertook our first climate scenario analysis in 2019 in line with the recommendations of the TCFD. In FY22, we updated this analysis to reference updated climate data, developments in the business, progress in technology and fuel availability as well as regulatory changes. More detail, including the key risk findings and disclosure against the TCFD recommendations framework, is set out in our 2022 Sustainability ReportOpens external site in a new window.
Qantas takes the challenge of human-induced climate change very seriously, as recognised in the release of our Group Climate Action Plan (PDF) in 2022. An important element of this is to ensure we continue to refine the findings of our climate scenario analysis and incorporate them into strategy and planning decisions. As part of the analysis undertaken in FY22, we have begun to quantify the financial impacts of these scenarios on the business and will continue to develop our approach and incorporate into disclosures and decision making.