CONTENTS. 3 CEO s Message

Transcription

1 Singapore Airlines Environmental Report 2011/2012

2 CONTENTS 3 CEO s Message 4 Chapter 01 Aviation - Benefits Beyond Borders Air Transport is a Major Contributor to Global Economic Prosperity Air Transport is a Major Global Employer Air Transport Provides Significant Social Benefits Innovation 8 Chapter 02 Aviation and Climate Change A Vision for the Future IATA s Four-Pillar Strategy 11 Chapter 03 Environmental Responsibility Environmental Policy Risks and Challenges Our Commitment Towards a Sustainable Future 16 Chapter 04 Managing Our Environmental Impact Fleet Modernisation Programme Fuel Productivity Local Air Quality Aircraft Noise Environmental Management System Energy and Resource Conservation Recycling 25 Chapter 05 Safety is an Essential Part of All Our Operations 27 Data Summary 28 Glossary

3 ENVIRONMENTAL REPORT 2011/ CEO Message As the world s economy continues to be confronted by uncertainty, airlines are facing the additional burden of the European Union Emissions Trading Scheme, which on 1 January 2012 was extended to international aviation. This is despite representation and protests by non-eu states against the unilateral application of the scheme on airlines. The EU s approach offers carriers operating through hubs closer to Europe an unfair advantage. As aviation is a global business, a global solution is needed under which all airlines are treated fairly. Singapore Airlines shares the widely held view that policy measures on emissions from international aviation should be developed at a global level through the International Civil Aviation Organisation. Aviation s share of global CO2 emissions is 2%. The need for aviation to do more is clear, however, and at Singapore Airlines we continue to do our part to reduce our carbon emissions. Over the past 40 years, the industry has improved fuel efficiency by 70%. Between 2001 and 2008 alone, fuel efficiency improved by 16%. Going forward, the industry aims to achieve carbon neutral growth by 2020 on the way to a carbon free industry. The International Air Transport Association (IATA) has adopted a four-pillar strategy to reduce emissions by investing in technology, improving operational efficiency, building and using efficient infrastructure, and positive economic measures to provide incentives. We support IATA s initiatives. With advances in technology, aircraft emissions around airports are low, and these can be reduced further through enhanced co-operation between airlines and air traffic management providers. Since the 1960s, levels of carbon monoxide have come down by 50% and unburned hydrocarbons and smoke by around 90%. Research is targeting a further 80% reduction in nitrogen oxide emissions (NOx) by Today's aircraft are also 50% quieter than just 10 years ago. The current noise certification standard - Chapter 4 results in aircraft being at least one third quieter than those certified to the Chapter 3 standard. Our young fleet of Airbus A330s, A s, A380s and Boeing 777s meets the latest international standards for emissions and noise. Singapore Airlines has had a longstanding policy of maintaining a young and modern fleet. Even in difficult times we invest in new aircraft such as the Airbus A350 and Boeing 787, to harness the benefits of modern technologies to further reduce aircraft emissions and noise. Efforts to reduce fuel consumption and emissions also include initiatives such as flight operations enhancements, engineering performance and maintenance improvements, and weight saving measures. An important development has been the introduction of regular green flights through the Asia and Pacific Initiative to Reduce Emissions (ASPIRE) programme. On non-stop services between Los Angeles and Singapore, for example, we implement enhanced gate-to-gate air traffic management operational procedures that reduce fuel burn and carbon emissions by some 2 tonnes per flight. Over the longer term, biofuels derived from sustainable oil crops such as jatropha, camelina and algae, or from waste biomass, may hold potential for commercial use in aviation. In August 2011, Singapore Airlines joined the Sustainable Aviation Fuel Users Group (SAFUG) to help accelerate the development and commercialisation of lower-carbon renewable aviation fuels derived from environmentally and socially sustainable sources. Being a member of SAFUG is in line with our commitment to work with key stakeholders on the potential future use of biofuels in commercial aviation. Improving our environmental record has always been a key focus area for Singapore Airlines. We are committed to continuous improvement as a responsible corporate citizen. Goh Choon Phong Chief Executive Officer

4 01 AVIATION - BENEFITS BEYOND BORDERS Aviation is a vital part of the increasingly globalised world economy, facilitating the growth of international trade, tourism and international investment, and connecting people across continents. A recent study commissioned by the Air Transport Action Group (ATAG) highlighted some of the economic and social benefits of commercial aviation to sustainable development and the role that air transport plays in the global economy.

5 ENVIRONMENTAL REPORT 2011/ Air Transport is a Major Contributor to Global Economic Prosperity Aviation provides the only rapid worldwide transportation network, which makes it essential for global business and tourism. It plays a vital role in facilitating economic growth, particularly in developing countries. Airlines transport over 2.6 billion passengers annually with revenue passenger kilometres (RPK) totalling nearly 5 trillion in Nearly 48 million tonnes of freight were carried by air in 2010, amounting to 172 billion freight tonne kilometres (FTK). Air transport facilitates world trade, helping countries participate in the global economy by increasing access to international markets and allowing globalisation of production. The total value of goods transported by air represents 35% of all international trade. Aviation is indispensable for tourism, which is a major engine of economic growth, particularly in developing economies. Globally, 51% of international tourists travel by air. Aviation s global economic impact (direct, indirect, induced and tourism catalytic) is estimated at $2.2 trillion, equivalent to 3.5% of world gross domestic product (GDP). These figures do not include other economic benefits of aviation, such as the jobs or economic activities due to the possibility of air travel, or the intrinsic value that the speed and connectivity of air travel provides. Nor do they include domestic tourism and trade. Including these would increase the employment and global economic impact numbers several-fold.

6 6 SINGAPORE AIRLINES Air Transport is a Major Global Employer The air transport industry generates a total of 56.6 million jobs globally. Air Transport Provides Significant Social Benefits Air transport contributes to sustainable development, facilitates tourism and trade, and generates economic growth. It provides jobs, improves living standards, alleviates poverty and increases revenues from taxes. It provides 8.4 million direct jobs: airlines, air navigation service providers and airports directly employ 7.6 million people and the civil aerospace sector (manufacture of aircraft systems, frames and engines) employs 0.8 million people. There are 9.3 million indirect jobs generated through purchases of goods and services from companies in its supply chain. Industry employees support 4.4 million induced jobs through spending. Aviationenabled tourism generates around 34.5 million jobs globally. Increasing cross-border travel is a reflection of the closer relationships developing between countries, both from an individual perspective and at a country level. In the same way, eased restrictions on the movement of goods and people across borders facilitate the development of social and economic networks that will have long-lasting effects. This improved flow of people and goods benefits both the host and the originating countries, encouraging increased social and economic integration. Air transport offers a vital lifeline to communities that lack adequate road or rail networks. In many remote communities and small islands, access to the rest of the world and to essential services such as health care is often only possible by air. Aviation s speed and reliability are perhaps most immediately apparent in the delivery of urgently needed assistance during emergencies caused by natural disaster, famine and war. Air services are particularly important in situations where physical access is problematic.

7 ENVIRONMENTAL REPORT 2011/ Innovation Air transport is a technology-advanced industry heavily involved in the production of high-specification products which drives research and development in a number of areas. This focus on research and innovation across the sector not only leads to more efficient aircraft technology and operational practices with associated environmental benefits but also helps build research capacity at universities and skills across society. The benefits to society of research and development spending by the aerospace industry are estimated to be much higher than in manufacturing as a whole every $100 million of investment into research eventually generates an additional $70 million in GDP year after year.

8 8 SINGAPORE AIRLINES 02 AVIATION AND CLIMATE CHANGE The UN Intergovernmental Panel on Climate Change (IPCC) estimates that aviation s share of global CO2 emissions will grow from 2% today to 3% by In spite of its relatively modest share of carbon emissions, aviation like all other industries has a responsibility to be as efficient as possible. Environmental responsibility is not new to the industry. Even before the Kyoto Protocol, the industry was working hard to reduce its emissions. This has borne fruit over the past 40 years our industry has improved fuel efficiency by 70%. Between 2001 and 2008 alone, fuel efficiency improved by 16%. The industry is on track to continue to improve its fleet fuel efficiency. The aviation industry is now facing a slew of measures to curb emissions - one of which is the European Union Emissions Trading Scheme that is applied to international aviation from There are many implications for the aviation industry facing a plethora of levies and taxes in the name of addressing emissions. These measures should be cost effective and non-discriminatory. Aviation should be held accountable and pay only once. To this end, the International Air Transport Association (IATA) has advocated that a global sectoral approach is best suited to ensure a level playing field in mitigating the impact of aviation on the environment.

9 ENVIRONMENTAL REPORT 2011/ A Vision For the Future In 2009, the sector announced ambitious collective targets for aviation emissions reductions. In the short term, between 2010 and 2020, aviation is committed to improve its fuel efficiency by an average of 1.5% per year, representing a further efficiency gain of 17% by 2020 or 2.2 billion tonnes of CO2 savings. To achieve this, 12,000 new aircraft will have to enter service in this period, at a cost of $1.3 trillion to airlines. Furthermore, some infrastructure and air traffic management efficiency improvements are dependent on direct government investments over which the industry has little visibility and control. From 2020, aviation will cap its net carbon emissions (through carbon neutral growth) and by 2050 it aims to halve its net emissions compared to 2005 levels. These collective goals were endorsed by the aviation industry in the joint industry submission to the International Civil Aviation Organisation (ICAO) in September To achieve carbon neutral growth by 2020, a multi-faceted approach is required with a strong commitment from all aviation stakeholders: airlines, manufacturers, fuel suppliers, airports, and air navigation service providers. These targets will be reached using a range of different efficiency opportunities and by working collaboratively with the support of governments. The IATA four-pillar strategy provides the building blocks to achieve the industry s goals and vision.

10 10 SINGAPORE AIRLINES IATA s Four-Pillar Strategy As early as 2007, the global aviation community adopted a four-pillar strategy, which promotes and drives efforts in four key areas: improved technology, efficient operations, effective infrastructure and positive economic measures. Of the four pillars, technology has by far the best prospects for reducing aviation emissions. The industry is making great advances in technology such as: revolutionary new aircraft designs; new composite lightweight materials; radical new engine advances; and the development of sustainable alternative jet fuels which could reduce CO2 emissions 80%, on a full carbon life-cycle basis. The sector is primarily focusing on biofuels from second generation sources such as algae. These fuels can be produced sustainably to minimise impacts on food crops and fresh water usage. Test flights have clearly demonstrated that the use of biofuels from these sources as drop-in fuels is safe and technically sound. In July 2011, biofuels derived from hydro-processed esters and fatty acids (HEFA) have been certified for aviation use as a drop-in fuel under ASTM D7566, and there has been a subsequent surge of biojet-operated commercial passenger flights following this event. Improved operational practices, including reduced auxiliary power unit usage, more efficient flight procedures, and weight reduction measures, could achieve further reductions in CO2 emissions. Infrastructure improvements present a major opportunity for CO2 reductions in the near term. Initial estimates by the IPCC indicated 12% inefficiency in global air transport infrastructure. Since then, 4% efficiencies have already been achieved. Full implementation of more efficient air traffic management and airport infrastructure could provide substantial emissions reductions through implementation of measures such as the Single European Sky and the Next Generation Air Traffic Management system in the United States. Once the industry has maximised the reductions in emissions through technology, operational efficiencies and infrastructure improvements, the industry can then turn its attention to the fourth pillar of positive economic measures that can help to limit aviation s climate change effects. Economic measures should first be used to boost the research, development and deployment of new technologies rather than as a tool to suppress demand. The use of tax credits and direct funding must be explored as incentives to drive new technology programmes and encourage companies to invest in new, more efficient equipment.

11 ENVIRONMENTAL 03 RESPONSIBILITY ENVIRONMENTAL REPORT 2011/

12 12 SINGAPORE AIRLINES Environmental Policy Singapore Airlines is dedicated to flying passengers and freight across the world. We take a long-term view in the sustainable development of our air transportation and related businesses. This includes the broader responsibilities to the worldwide communities that we serve, and recognition that our operations take into account the preservation of the environment. We are committed to continual improvement in environmental performance and will take appropriate measures to address key areas of environmental concern. We will: communicate this policy to all staff and provide training where applicable to ensure that staff are capable of fulfilling their environmental responsibility; monitor changes in environmental legislation, audit our compliance and cooperate fully with environmental regulatory authorities; establish an environmental action programme to manage environmental issues relating to the use of energy and resources, emissions to the atmosphere, effluent discharges, waste management, noise and relations with key suppliers; and be open about our environmental affairs and will provide appropriate information as requested by interested parties.

13 ENVIRONMENTAL REPORT 2011/ Risks and Challenges The airline industry is increasingly exposed to physical risks such as extreme weather conditions like severe snowstorms and volcanic eruptions. Such events can potentially cause flight diversions and cancellations that will result in financial losses to airlines and inconvenience to passengers. The growing awareness of the impact of climate change and pressure to curb greenhouse gases (GHG) emissions continue to pose a constraint to the growth of the industry. The imposition of environmental taxes and levies, including emissions trading schemes such as the one introduced by the EU from 2012, would add to the financial burden of airlines and its customers. The EU s approach offers carriers operating through hubs closer to Europe an unfair advantage. As aviation is a global business, a global solution is needed under which all airlines are treated fairly. Singapore Airlines shares the widely held view that policy measures on emissions from international aviation should be developed at a global level through the ICAO. Restriction on GHG emissions can also present an impetus for the industry to look towards new technologies to improve fuel consumption and accelerate the development of alternative fuels such as biofuels to reduce cost and to seek a viable alternative to fossil fuels.

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15 ENVIRONMENTAL REPORT 2011/ Our Commitment Towards a Sustainable Future Singapore Airlines is committed to our long-standing policy of maintaining a young and modern fleet of aircraft and adoption of new technologies to harness the benefits of reduced greenhouse gas emissions, improved fuel productivity, lowered noise levels and more efficient utilization of resources. The Airline supports IATA s commitment for the industry to achieve carbon-neutral growth from Our fleet of Airbus A330s, A s, A380s and Boeing 777s meets the latest international standards for emissions and noise. We will continue to invest in new aircraft such as the Airbus A350 and Boeing 787 to harness the benefits of modern technologies to further reduce aircraft emissions and noise. We are committed to improve our environmental performance. Ongoing efforts to reduce fuel consumption and emissions include various initiatives such as flight operations enhancements, engineering performance and maintenance improvements, and weight saving measures. An important development has been the introduction of regular green flights across Asia and the Pacific. In May 2011, through the Asia and Pacific Initiative to Reduce Emissions (ASPIRE) programme, Singapore Airlines introduced enhanced gate-to-gate air traffic management operational procedures for non-stop flights between Los Angeles and Singapore, reducing fuel burn and carbon emissions by some 2 tonnes per flight. Over the longer term, biofuels derived from sustainable oil crops such as jatropha, camelina and algae, or from waste biomass, may hold potential for use in aviation. In August 2011, Singapore Airlines joined the Sustainable Aviation Fuel Users Group (SAFUG) to accelerate the development and commercialisation of lower-carbon renewable aviation fuels derived from environmentally and socially sustainable sources. Being a member of SAFUG is in line with our commitment to work with key stakeholders on the potential future use of biofuels in commercial aviation. Singapore Airlines is also supportive of projects by others that have tangible benefits for the environment. We have committed to donating US$3 million in support of the Harapan Rainforest Initiative, a collaboration between international non-governmental organisations including BirdLife International and Burung Indonesia. This unique project is helping to conserve and protect over 100,000 hectares of one of the most biodiverse rainforests in the world.

16 04 MANAGING OUR ENVIRONMENTAL IMPACT

17 ENVIRONMENTAL REPORT 2011/ In the Air Fleet Modernisation Programme During the year, Singapore Airlines took delivery of five Airbus A s, bringing the total to 16, with three more on order, and a further six on option. Six Boeing s and seven Boeing ERs were decommissioned. The Singapore Airlines passenger aircraft fleet, as at 31 March 2012, comprised 100 aircraft one B s, 59 B777s, 19 A s, 16 A s and five A s with an average age of 6 years and 2 months. Singapore Airlines Cargo operated a fleet of 13 Boeing freighter aircraft with an average age of 11 years and three months as at 31 March The SilkAir fleet comprised 20 aircraft 14 Airbus A s and six A s with an average age of six years and three months. These compare favourably with the industry average of 13 years and 7 months as at March Average Age of Aircraft (months), 31 March SIA Passenger Fleet SIA Freighters SilkAir Industrywide A No. of Seats: 409 or 471 Length: 72.7m Wingspan: 79.8m Cruise Speed: 0.85 Mach A No. of Seats: 100 Length: 67.9m Wingspan: 63.45m Cruise Speed: 0.83 Mach A No. of Seats: 285 Length: 63.6m Wingspan: 60.3m Cruise Speed: 0.82 Mach B No. of Seats: 375 Length: 70.6m Wingspan: 64.4m Cruise Speed: 0.85 Mach B No. of Seats: 278, 284 or 332 Length: 73.9m Wingspan: 60.9m or 64.8m Cruise Speed: 0.84 Mach B No. of Seats: 285, 288 or 323 Length: 63.7m Wingspan: 60.9m Cruise Speed: 0.84 Mach Illustration: SPH Magazines

18 18 SINGAPORE AIRLINES Fuel Productivity Singapore Airlines is committed to mitigating the effects of climate change by improving the fuel productivity of our aircraft operations. Key initiatives in our fuel productivity improvement programme consist of:- Renewal of our aircraft fleet to ensure that the aircraft in operation are as technologically advanced and fuelefficient as possible. Our participation in the ASPIRE programme such as the second regular city pair from Los Angeles to Singapore launched in March 2011 that employ enhanced gate-to-gate air traffic management operational procedures to reduce fuel burn and carbon emissions in all phases of the flight. Flight operations procedures that reduce fuel burn for A380s at Heathrow. The A380s operated by Singapore Airlines, departing Heathrow, now uses less power when taking off, saving fuel and emitting less CO2 and NOx while remaining within the airport s strict noise procedure. Other improvements in flight operation procedures, e.g. tailored arrivals and continuous descent operations that minimise fuel use without compromising safety. Route planning procedures to enable our planes fly the most fuel-efficient routes possible. Active participation in the international arena on route restructuring to establish new airways for more efficient routings. Performance improvement package to reduce airframe drag and improve engine fuel efficiency. Regular engine wash programmes to improve fuel efficiency. Use of lightweight crockery, cargo containers and reduction of operator s items such as optimum potable water uplift that minimise the weight of the aircraft. Use of mobile Ground Power Units and Pre-conditioned Air units during long transits and night-stops to reduce Auxilliary Power Units (APUs) usage. Fuel Productivity CO 2 Emissions LTK/AG million AG KG/LTK thousand tonnes ,600 1,500 1,400 1, ,000 14,000 13,000 12, , , , , , , , , , , , , , , Fuel Consumption (Passenger Fleet & Freighters SIA Passenger Fleet (LTK/AG) SIA Freighters (LTK/AG) CO 2 Emission (Passenger Fleet & Freighters) SIA Passenger Fleet (KG/LTK) SIA Freighters (KG/LTK)

19 ENVIRONMENTAL REPORT 2011/ Fuel productivity of the Singapore Airlines fleet as measured by load tonne-km per American gallon of jet fuel was lower at LTK/AG in FY This was due mainly to a decline in the overall load factor. Carbon dioxide emissions correspondingly increased in FY SIA Fuel Productivity (Load-tonne-km/AG) Passenger & Freighter Fleet Passenger Fleet Freighters SilkAir Fleet SIA Carbon Dioxide Emissions (kg/ltk) Passenger & Freighter Fleet Passenger Fleet Freighters SilkAir Fleet

20 20 SINGAPORE AIRLINES Local Air Quality Local emissions around airports include emissions from road traffic, other airport ground activities and aircraft operations during landing and takeoff (LTO). With technological progress, aircraft emissions around airports are generally low. Aircraft emissions consist mainly of nitrogen oxides (NOx), unburned hydrocarbons (UHC) and carbon monoxide (CO). These are subject to international standards set by the ICAO. Since the 1960s, levels of carbon monoxide have come down by 50% and unburned hydrocarbons and smoke by around 90%. Research is targeting a further 80% reduction in nitrogen oxide emissions (NOx) by The aviation industry is also making substantial investments in cleaner ground support equipment and vehicles to improve local air quality. ICAO has increased the stringency limit for NOx several times - by 20% in 1993 and by around 16% in 1999, compared to SIA Group LTO Emissions NOx (tonnes) 5, , ,319.0 CO (tonnes) 2, , ,194.9 Unburned hydrocarbons (UHC) (tonnes) levels. A new standard was endorsed in 2004, applicable to new engines from 2008 which is 12% lower than the previous standard and will provide a 40% reduction compared to the first standard. The Singapore Airlines passenger fleet, SIA Cargo freighters and SilkAir aircraft meet the stringent 2004 ICAO CAEP/6 Emission Standards for NOx. Airports can also make a difference by implementing measures such as optimising the airport design to reduce taxiing times; providing cleaner ground service equipment and vehicles and using energy efficient systems for heating and lighting. The challenge is to harness both technological improvements and operational changes to improve environmental performance.

21 ENVIRONMENTAL REPORT 2011/ Aircraft Noise We have a two-pronged approach to improving local air quality: prioritising aircraft that produce low emissions as part of our fleet renewal programme and adopting operational practices on the ground. Wherever possible, single engine taxiing is used to reduce ground emissions. The use of ground power is preferred over aircraft APUs to reduce aircraft emissions. Total local air emissions during LTO cycles increased by 4.5% to 8,340 tonnes in FY on the back of an increase in LTO cycles of 6.6%. Today's aircraft are 50% quieter compared to 10 years ago. Research initiatives are targeting a further 50% reduction by The number of people exposed to aircraft noise worldwide has gone down by about 35% between 1998 and Much of the effort to address aircraft noise over the past 30 years has been aimed at reducing noise at source. Airplanes built today are required to meet noise certification standards developed by ICAO. The more stringent noise certification standard - ICAO Chapter 4 - introduced on 1 January 2006 for new aircraft designs is at least one third quieter than the Chapter 3 standard. Singapore Airlines fleet of B ERs and A s are certified to the ICAO Chapter 4 noise standard which has a noise footprint (at 90dB) more than 50 times smaller than that of the B707 s. Chapter 4 noise standard is 10 EPNdB quieter than the standard required under Chapter 3. Our fleet of B s, B s, B s, A s and A s are certified to the ICAO Chapter 3 standard for noise, and they also meet the more stringent Chapter 4 requirements.

22 22 SINGAPORE AIRLINES On the Ground Environmental Management System Singapore Airlines has implemented an Environmental Management System (EMS) certified to the ISO 14001:2004 standard in the Engineering and Flight Operations Divisions. As part of the EMS, environmental action programmes are regularly reviewed and updated to ensure that objectives and targets are measurable, and consistent with the environmental policy including its commitment to prevention of pollution, legal compliance and continual improvement of the system. Regular monitoring and measurement of operations that have a significant environmental impact are made to ensure that applicable operational controls are documented and implemented in compliance with the EMS.

23 ENVIRONMENTAL REPORT 2011/ Energy and Resource Conservation Energy conservation is an ongoing activity. Best practices are in place for preventive maintenance of buildings and equipment. The integrated approach to maintenance and management helps to yield ongoing energy savings. Some ongoing initiatives include the replacement of air handling units at Airline House and SIA Training Centre to energy efficient models with integrated variable speed drives and pre-cool units to treat fresh air intake for temperature and humidity controls. This improves the overall energy efficiency of the air-conditioning system. Lightings in all buildings are replaced with the more energy efficient types. This includes replacing existing halogen downlights with LED lights at the SilverKris lounge and changing exit lights to the LED type in our buildings. Another key initiative is the installation of a waste heat recovery unit at the Silver Kris lounge. The heat recovery unit uses waste heat discharged from the air condensing unit to heat potable water for the kitchen and toilets. Reducing and optimising water usage is an ongoing effort in Singapore where water is a scarce resource. Taps and dual flush valves in the toilets of our buildings are fitted with flow restrictors. Recycled water (NEWater) is used in cooling towers and watering of landscapes. Non-chemical water treatment is applied to cooling towers which besides saving water is also environmentally-friendly as no chemicals are handled or discharged. In addition, rainwater at the Airline House rooftop is collected and used for watering plants and flushing of toilets. Much effort has gone into conserving and optimising our resource use. Water consumption has been declining over the past three years due to water saving measures implemented in all SIA buildings such as use of flow restrictors in taps and dual flush valves. However, electricity consumption is hovering around 59 Gwh pa. In spite of the electricity saving measures being implemented in the buildings, energy use for maintenance activities in the hangars remains the main share of consumption. Resource Utilisation Water Consumption (,000 m3) Electricity Consumption (Gwh) Petrol (,000 litres) Diesel (,000 litres) 3,309 3,376 3,190 Paper Consumption A4 paper (reams) 66,753 58,820 65,975 Carbon Emission - Ground Operations From Fossil Fuel (tonnes) 9,266 9,423 8,920 From Electricity Used (tonnes) 31,705 31,370 29,375

24 24 SINGAPORE AIRLINES Recycling Recycling has a significant impact on the use of limited resources. Waste reduction and recycling is undertaken companywide. Staff are also encouraged to reduce paper usage through good office practices: print documents on both sides of the paper; store documents, files and archives electronically; Waste Generated # General Waste (tonnes) 5,990 5,981 5,413 Toxic Waste (litres) 69,000 72,000 77,200 Recyclables # Used Cooking Oil (kg) 18,636 19,750 27,550 Used Carton Boxes (kg) 569, , ,680 Used Magazine (kg) estimates 137, , ,643 Old Newspapers (kg) estimates 316, , ,248 Glass Bottles (kg) 186, , ,290 # Figures are from SIA operations in Singapore. use electronic methods of communication, where possible; receive and distribute fax messages electronically; re-use paper that has been printed on single side for note taking, drafts or message taking. Off-site segregation and recycling of materials from general wastes collected from our premises is conducted by the appointed waste collectors.

25 ENVIRONMENTAL REPORT 2011/ SAFETY IS AN ESSENTIAL PART OF ALL OUR OPERATIONS Safety is one of the Company s six core values - We regard safety as an essential part of all our operations. We maintain and adopt practices that promote the safety of our customers and staff.

26 26 SINGAPORE AIRLINES A series of activities to promote the awareness and practice of safety and security was organised across the SIA Group as part of the annual Safety and Security Week from September 26-30, Management of Safety and Security was the year s theme. All of us as individuals form the last line of defence. Without employees who are motivated to think and act with safety and security foremost in their minds, any process put in place by an organisation is destined to fail. We reviewed our management structures and processes that support our crew and staff in performing safely and effectively. This includes safety management systems, hazard reporting and risk assessment processes, training programmes and the quality assurance audit process, which collectively help the organisation achieve its goals. The Security & Environment Department has been working continually to improve the Group s investigative processes to pick up latent risks, develop tools to better analyse safety data, and refine hazard reporting and risk assessment processes to spot the risks even before incidents start to manifest. A complete safety management system does not stop with the identification of causal or risk factors. It involves the follow-through of what needs to be done to prevent or mitigate a future crisis. The combined efforts of management and staff are essential to ensure a secure and safe work environment and guarantee the highest level of safety and security for customers. At the ramp, ground accidents involving vehicles and ground handling equipment are a big concern to airlines, costing the industry billions of dollars a year in delays, damages to aircraft, equipment and facilities at the apron. The SIA Ground Ramp Incident Prevention (GRIP) programme focuses on reducing ramp incidents through training, regular observations of safe practices and audits. Safety, Security & Environment and Ground Services departments reviewed the GRIP programme and it was re-launched for all overseas stations in September In January 2012, SIA successfully completed the IATA Operations Safety Audit (IOSA) registration renewal exercise with nil findings. The IOSA programme is an internationally recognised and accepted evaluation system designed to assess the operational management and control systems of an airline. IOSA is conducted by an independent IATA accredited Audit Organisation in accordance with standardized IOSA quality audit principles.

27 ENVIRONMENTAL REPORT 2011/ DATA SUMMARY Operating Statistics SIA Group Total Group Revenue (S$ million) 14, , ,707.3 Average Number of Employees 22,514 21,997 33,222 SIA Passenger & Cargo Services Overall Capacity (million tonne-km) 22, , ,962.1 Overall Load (million tonne-km) 15, , ,508.4 SIA Passenger Services Available Seat-km (million) 113, , ,673.7 Revenue Pax-km (million) 87, , ,882.5 Passenger Carried (thousand) 17,155 16,647 16,480 SIA Cargo Services Cargo Capacity (million tonne-km) 11, , ,510.1 Cargo Load (million tonne-km) 7, , ,659.1 SilkAir Overall Capacity (million tonne-km) Overall Load (million tonne-km) Passenger Load Carried (million pax-km) 4, , ,466.0 Fuel Productivity & CO2 Emissions SIA Passenger Fleet & Freighters Fuel Consumption (million AG) 1, , , Fuel Productivity (LTK/AG) CO2 emission (thousand tonnes) 13, , , CO2 emission (kg/ltk) SIA Passenger Fleet Fuel Consumption (million AG) 1, , , Fuel Productivity (LTK/AG) CO2 emission (thousand tonnes) 11, , , CO2 emission (kg/ltk) SIA Freighters Fuel Consumption (million AG) Fuel Productivity (LTK/AG) CO2 emission (thousand tonnes) 1, , , CO2 emission (kg/ltk) SilkAir Fuel Consumption (million AG) Fuel Productivity (LTK/AG) CO2 emission (thousand tonnes) CO2 emission (kg/ltk) Resource # Water Consumption (,000 m3) Electricity Consumption (Gwh) Petrol (,000 litres) Diesel (,000 litres) 3,309 3,376 3,190 CO2 Emissions (Ground Operations) (tonnes) 40,971 40,793 38,295 Paper Consumption A4 paper (reams) 66,753 58,820 65,975 # Figures are from SIA operations in Singapore.

28 28 SINGAPORE AIRLINES GLOSSARY ATAG - Air Transport Action Group is an independent coalition of member organisations and companies throughout the global air transport industry that have united to drive aviation infrastructure improvements in an environmentally-responsible manner. CAEP - The Committee on Aviation Environmental Protection (CAEP) consists of Members and Observers from States, intergovernmental and non-governmental organizations representing aviation industry and environmental interests. It assists the ICAO Council in formulating new policies and adopting new Standards on aircraft noise and aircraft engine emissions. Carbon dioxide (CO2) - A gas produced when fossil fuels such as oil, gas, coal and aviation fuel are burnt (it is also produced naturally when wood burns and animals breath). Many scientists believe that an increase in atmospheric levels of carbon dioxide caused by human activity is one of the main causes of global warming. Carbon Monoxide (CO) - A poisonous gas produced in aircraft engines, particularly at low thrust levels when there is incomplete combustion of fuel. Fuel Productivity - A measure of how energy-efficient a plane is. It is calculated in terms of load carried and distance flown per unit of fuel consumed (Load-tonne-km/American gallon). Global Warming - The rise in the earth s temperature that is thought by many scientists to be occurring due to increases in the levels of greenhouse gases, such as carbon dioxide in the atmosphere. IATA - International Air Transport Association (IATA) is the world organization of scheduled airlines. ICAO - The International Civil Aviation Organisation (ICAO) is a United Nations organisation that works to establish international standards, recommended practices and procedures covering the technical fields of aviation. IPCC - The Intergovernmental Panel on Climate Change (IPCC) is the leading body for the assessment of climate change, established by the United Nations Environment Programme (UNEP) and the World Meteorological Organization (WMO) to provide the world with a clear scientific view on the current state of climate change and its potential environmental and socio-economic consequences. LTO - The landing/takeoff zone (LTO) is the area up to 900 metres above the ground at and around an airport. Aircraft enter the LTO zone about 20 kilometres out from the runway, and leave it about 7 kilometres after takeoff. Nitrogen Oxides (NOx) - Polluting gases produced by aircraft engines and also by cars, trucks and electric power plants. They can make respiratory problems worse and also contribute to the formation of acid rain and ozone. Unburned Hydrocarbons (UHC) - Emissions from aircraft and other engines that can lead to the formation of smog.

29 REFERENCE In preparing this environmental report, reference is made to the resources from the ICAO, ATAG and IATA. FEEDBACK SIA welcomes your questions, comments and suggestions regarding our environmental report. We can be contacted at: SIA Safety, Security & Environment Dept Airmail Transit Centre P. O. Box 501 Singapore Tel: Fax: mailto:

30 Registered Address Airline House, 25 Airline Road Singapore Company Secretary Ethel Tan Tel: Fax: Investor Relations Tel: Fax: Public Affairs Tel: Fax: Singapore Company Registration Number R