Quick guide Core SAS, pp. 8-14 Core SAS is the SAS Group’s renewed strategic focus and will ensure an efficient and more profitable SAS. The Group’s approach and future commercial offerings are described here. Contents The SAS Group 2 3 4 6 6 7 8 9 10 12 13 14 15 18 20 21 22 The SAS Group in brief Operations in brief President’s comments Important events Financial calendar Information for investors SAS’s strategic focus - Core SAS Focus on Nordic home market Focus on business travelers and strengthened commercial offering Improved cost base Streamlined organization and customeroriented culture Strengthened capital structure SAS’s cost performance in context Market and competition Star Alliance Flight safety and quality Policy framework for civil aviation, aviation security and quality processes The capital market 24 26 27 28 29 31 Facts, key figures and traffic data, pp. 44-48 The Group’s traffic data, overarching operational key figures and other key data are found here. Important events in the capital market The share SAS share data External factors, cycles and trends Highly flexible market-adapted fleet Financing, investment, liquidity and tied-up capital 33 Risks, risk management and sensitivity analysis Core SAS operations 35 Core SAS operations 36 The SAS Group’s route network 37 Scandinavian Airlines 40 Widerøe 41 Blue1 Individual Holdings 42 Divestments and outsourcing in progress Facts 44 Traffic data and key figures 45 Statement of income, Core SAS operations 46 The Group’s operational key figures and Star Alliance 47 Ten-year financial overview 48 Financial key figures Annual Report 49 Report by the Board of Directors The SAS Group: 55 Consolidated statement of income 55 Statement of other comprehensive income 56 Comments on the consolidated statement of income 57 Statement of income, quarterly breakdown 58 Consolidated balance sheet incl. comments 59 Changes in shareholders’ equity 60 Consolidated cash flow statement incl. comments 61 Notes to the financial reports 89 SAS AB, parent company 91 Auditors’ Report Corporate Governance 93 Corporate Governance Report 98 SAS Group’s areas of responsibility, SAS Group’s legal structure and SAS Group’s labor union structure within Scandinavia 99 Board and auditors 100 Group Management Sustainability Report 103 106 109 110 111 122 Our world – our stakeholders Goals, strategies and goal attainment Responsibility for sustainable development The airline industry’s four pillars Results for the year Auditor’s review of sustainability report Facts 123 Aircraft fleet 124 Definitions & concepts Capital market, pp. 24-34 SAS works actively on communication with the capital market to ensure transparency in the Group. The Group’s fleet strategy is crucial for attaining cost-effectiveness. SAS has a fleet mix well suited to the markets it operates in. Core SAS operations, pp. 35-41 Core SAS operations have a sharper customer focus that includes Scandinavian Airlines, Widerøe and Blue1. Operations share service and management functions in part. Welcome aboard Europe’s most punctual airline Sustainability Report, pp. 102-122 Here the key environmental and social aspects that operations affect are described. The Sustainability Report has been examined by the Group’s external auditors. Sustainability Report SAS welcomes an open debate about aviation and the environment. On the basis of scientific findings we will present a nuanced picture of the airlines’ actual environmental impact and help ensure a competitionneutral policy framework. Important events in 2009 COP15 concluded with the “Copenhagen Accord,” a political goal of a maximum temperature rise of two degrees Celsius. SAS and IATA were active in the process. IATA and the aviation industry agreed on specific and relative targets for reducing greenhouse emissions. SAS’s MRV (Monitoring–Reporting–Verifying) plan, which represents the basis for calculating carbon dioxide and tonne kilometers for the EU ETS, was approved. SAS’s climate index improved by four points to 93 (97). Blue1 was certified and Cargo recertified according to ISO 14001. SAS stepped up its environmental communication internally and externally. The phasing out of older aircraft resulted in a substantial improvement in the fleet’s total environmental performance. Sustainability-related KPIs1 2009 20082 52,870 –339 0.6 24,635 42 6.5 97 5,840 24.2 129 1,857 0.47 176 213 0.9 453 41,741 2007 50,598 1,234 2.4 3 26,538 3 41 3 6.4 95 6,295 25.6 130 1,999 0.48 3 208 3 209 3 1.0 414 44,772 Our world – our stakeholders SAS’s activities include flight operations and operations on the ground. Actual flights account for the biggest environmental impact by far, yet ground operations and onboard customer service also impact the environment. SAS believes in sustainable development as a concept both for taking responsibility and as way of creating value for shareholders. Continuously improving processes and optimizing production in a sustainable way creates value, not only in the form of growth for shareholders but also for outside stakeholders, suppliers and passengers. To communicate these efforts and their results, SAS strives to continue to be a leader in sustainability reporting, work that is propelled by the demands of the outside world and by the expectations of stakeholders. The airline industry is sensitive to outside disruptions. These have been amplified during the most recent decade, with the market affected by cyclical fluctuations, acts of terrorism, war and the current financial crisis. At the same time, competition is increasing, which puts additional pressure on falling margins in a labor- and capital-intensive industry. SAS’s long-term objectives remain firm, and reporting of sustainability work is to maintain the same high standards that have been garnering praise for SAS from sustainability analysts and other outside commentators. Market performance The airline industry is now seeing lower demand from business travelers in particular, the most important segment for the established network carriers. This has led to greater competition and increasing pressure on fares, affecting margins and profitability for the entire industry. At the same time, substantial capacity has been mothballed, and many airlines have put new investment on hold. In the long term, however, a continued uptick for the airline industry is expected with average passenger growth of 3-4% per year. Most of the growth is expected in Asia, primarily in China and India, while the mature markets in the industrialized West will post lower figures. SAS Group Sustainability Report 2009 Aviation sector a key player at UN climate conference In 2006 the airline industry began to examine industry positions on being included in the European emissions trading scheme. Already then advantages were identified of seeking global solutions to avoid competition-distorting rules and purely regional systems. At the end of 2008/beginning of 2009, SAS invited the IATA and a number of industry players to attend the World Business Summit climate conference, held in Copenhagen in May 2009. Subsequently, IATA was able to present an initial proposal for a global strategy for the airlines’ greenhouse emissions. IATA then obtained industry acceptance of the strategy ahead of the UN climate summit in New York in September 2009. Since SAS played a leading role in the process, SAS Group CEO Mats Jansson was one of three airline chiefs tasked with presenting the strategy. In September 2009 the strategy was also presented at a preparatory climate conference, Nordic Climate Solutions, in Copenhagen. SAS was a “greening partner” at both the World Business Summit and Nordic Climate Solutions. During the year, global industry organizations for airports, air traffic management and aircraft and engine manufacturers also endorsed IATA’s global strategy. This means that the global aviation industry stands united on common goals, a situation, by the way, that is unique in the world, since no other global industry had succeeded in agreeing in this way, ahead of COP15. ICAO, the UN civil aviation body, held a meeting prior to the climate conference where environmental issues topped the agenda. Despite initial differences, during COP15 it became clear that ICAO and the aviation industry are largely in agreement on basic principles. Conclusion: less than two degrees Following serious problems reaching agreement in the negotiations among 192 countries, the world had to settle for the final report, the “Copenhagen Accord”. Despite the lack of targets and plans, it is however, positive that COP15 resulted in a political pledge to keep the global temperature increase under two degrees Celsius. Moreover, almost all countries in the world endorsed the declaration to establish and report national targets. While aviation was on the policy agenda at the summit, it was not included in any agreement. In the short term this may be seen as an advantage, since aviation avoided the tax measures that many countries had proposed, but a more long-term assessment is that a clarification would have been best, preferably in the form of a global framework for regulating aviation. Intensive industry collaboration During the entire COP15, SAS was part of an IATA team, which worked intensively to establish contacts with negotiators and decision-makers from all over the world. The aim was to create a dialog on the needs and requirements of aviation and present the industry’s own recommendations. Particular weight was given to industry desires for a global agreement and for ICAO regulation of airline emissions. During COP15, SAS was a sponsor of airport services, which meant that in partnership with the Danish foreign ministry, SAS personnel offered all customers and stakeholders service in all practical matters. During the period 2008-09 SAS reduced its capacity by 15%, resulting in an increase in the passenger load factor from 72.3 to 72.7% in 2009. IATA estimates that demand fell by around 8% in 2009, with growth picking up again by 2011 at the earliest. In 2009 the environmental debate intensified with a continued focus on global emissions of greenhouse gases, primarily carbon dioxide (CO2). There is growing agreement that a considerable effort is required to limit and eventually reduce emissions. However, major emitters such as the U.S., China and India have difficulty reaching a consensus on specific targets and a timetable for taking action. See also the report from COP15 at right. On the way to zero emissions In 2007 the industry organization IATA formulated a vision whereby it will be possible to fly commercially without impacting the climate by 2050. This vision is to be realized through a combination of new technology, more efficient air traffic management, new fuels and measures to improve infrastructure and other external conditions under which the airlines operate. Realizing zero emissions requires the total replacement of existing aircraft fleets with a new generation of aircraft not yet in production. The lead time for such a changeover is 20-30 years, which is why the vision of zero emissions should be interpreted to mean that the necessary technology is to be commercially available and adopted by the airlines at a financially proper pace. On the way to this vision, IATA and the rest of the aviation industry agreed on joint recommendations and a target scenario ahead of the COP15 climate conference: Improving energy efficiency by an average of 1.5% per year until 2020. Carbon-neutral growth starting in 2020. 50% reduction in greenhouse CO2 emissions by 2050, compared with 2005 levels. ACARE (Advisory Council for Aeronautical Research in Europe) has set a goal for developing technology for aircraft, engines and better air traffic management to reduce greenhouse CO2 emissions by 50% per revenue passenger kilometer and nitrogen oxides (NOx) by 80% by no later than 2020. In addition, noise levels are to be cut in half compared with today’s. Another example of Operating revenue, MSEK 44,918 EBT before non-recurring items, MSEK –1,754 EBT margin before non-recurring items, % –3.9 Average number of employees 18,786 of which women, % 45 Sick leave, % 6.9 Climate index 4 93 Carbon dioxide (CO2), emissions, 1,000 tonnes 3,784 Nitrogen oxides (NOX), emissions, 1,000 tonnes 15.0 Grams of carbon dioxide (CO2)/RPK 127 Total fuel consumption, 1,000 tonnes 1,208 Fuel consumption, liter/RTK 0.46 Water consumption, 1,000 m3 175 Energy consumption, ground, GWh 207 Unsorted waste, 1,000 tonnes 1.5 External environment-related costs, MSEK 368 Number of passengers, 1,000 5 27,382 1 102 All financial key data follow the financial portion of the Annual Report. Wherever possible, all sustainability KPIs include operations owned during the reporting year. 2 Apart for average number of employees, all key data for 2008 exclude airBaltic. 3 Data have not been examined by an external auditor. 4 The climate index has been corrected in the Internet version and thus departs from the index in the print version. 5 Including paying, bonus and charter passengers and non revenue passengers. We’re reducing our climate impact for long-term, responsible traffic growth SAS Group Sustainability Report 2009 103 What comes in and goes out SAS’s responsibility Air SAS’s responsibility Carbon dioxide (CO2) Nitrogen oxides (NOx) Hydrocarbons (HC) Volatile organic compounds (VOC) Oil aerosols Jettisoned fuel Noise Water vapor (H2O) Sulfur dioxide (SO2) Carbon monoxide (CO) Halons (CFC) IN how air traffic management will be optimized is SESAR JU (the Single European Sky ATM Research Joint Undertaking), with the goal for 2020 of reducing travel times by 8-14 minutes, cutting fuel consumption by 300-500 kg and thus reducing CO2 emissions by 1-1.5 tonnes for an average European flight. Impact of air transport The airline industry currently accounts for 2-3% of global CO2 emissions, which is equal to around 12% of the transportation sector’s global emissions. CO2 emissions account for about twothirds of air transport’s total impact on climate, while NOx, water vapor and particulates are assumed to be responsible for most of the balance. Under the Kyoto Protocol commitments, which extend to 2012, all industrialized countries must reduce their emissions by 5%, compared with 1990-levels. The EU has gone a bit further, pledging to reduce the community’s total CO2 emissions outside the Emissions Trading Scheme (ETS) by a total of 20% by 2020. The airlines will be included in EU emissions trading in 2012. Industry and IPCC estimates indicate a possible reduction in CO2 emissions of 2% per year on average through new technology and efficiency gains. This trend, in combination with expected long-term growth, means that aviation’s environmental impact will increase if no actions are taken. That is why the entire aviation industry agreed on ambitious, long-term environmental goals. Read more on p. 103. For long journeys there is no real alternative to flying. Historically, air transport has belonged to the industrialized world. Today, the major growth in both nominal and relative terms is taking place in Asia and the Middle East, while Africa continues to post modest growth. In countries within these geographical areas both private persons and industry can now utilize the infrastructure previously reserved for the industrialized world. Thus, environment-motivated global restrictions on aviation would primarily affect those who previously neither had the means nor the opportunity to fly. Air transport is therefore a key part of the infrastructure of a globalized world, necessary for economic and social progress. SAS’s main market is the Nordic region, with emphasis on travel to, from and between the Nordic countries. The Group’s share of total traffic in its main markets is around 37%. All of Norwegian domestic traffic accounts for 1.7% of national CO2 emissions. The corresponding figures for Danish, Swedish and Finnish domestic traffic are 0.4%, just under 1% and 1.3%, respectively. (Source: National statistics). Emissions trading In 2008 the EU adopted the revised general ETS directive and a special directive to include air transport into the EU/ETS from 2012. The aviation directive may be overhauled in 2014 to enable a global ETS system. The decision means that the airlines must deliver one emission allowance for each tonne of CO2 emitted. Airlines will be allocated approximately 80% of the allowances at no cost, with 2004-2006 as a base period. The remainder, including any emission increase, must be purchased in the market. SAS estimates that the costs may amount to MSEK 200-300 per year based on expected production and an estimated credit price of EUR 30 per tonne. So far, the climate impact of air transport has concentrated on CO2 emissions. Now that emissions trading is being introduced, the focus is likely to be on other environmental impacts, primarily NOx and contrails. Industry and scientists generally agree on the magnitude and effects of CO2 emissions. There is less agreement, however, regarding NOx, particulates and water vapor. At the same time, there are increasing calls for introducing some form of tax on NOx. SAS and the airline industry recommend the ECAC model with differential landing fees based on NOx emissions. There are also suggestions to use a multiplier, though its size is controversial and not based on scientific findings. Ten years ago, a multiplier of 2-4 was under discussion, while the current value is around 1.2-1.8. The issue is on the EU agenda, and some form of decision is expected no later than 2012. See the article from Cicero on aviation’s environmental impact at www.sasgroup.net under “Sustainability.” SAS fully endorses the “polluter pays principle” and is prepared to account for its share. This assumes that any taxes imposed on it are based on scientific findings and that the total climate impact of competing modes of transportation is taken into consideration. In the current debate, the actual environmental impact of air transport is, in many respects, often unfairly and crudely depicted. It is also important that EU environmental standards not create conditions that disadvantage European over non-European airlines. An AEA working group, with SAS participation, has put forth a proposal for a global system called GAP (Global Approach for International Aviation Emissions), which takes into account the UN CBDR principle (Common But Differentiated Responsibility), aimed at leveling the playing field for airlines. The proposal divides the world into three blocs, with more onerous obligations on the industrialized zone than on developing countries. Moreover, IATA is working on a document outlining ideas for economic instruments for reducing air transport’s CO2 emissions. Environmental policies Airline operations are subject to the environmental policies applic able to each airport. These usually involve noise, rules for using deicing fluids and limits on emissions to air and discharges into soil and water. In 2009, SAS did an updated survey of the Group’s busiest Scandinavian airports and engaged in dialogs with them to ensure that they had the required permits. One of Stockholm-Arlanda Airport’s environmental rules is a ceiling for how much CO2 and NOx the airport may emit. In 2008 the Environmental Court ordered a postponement from 2011 to 2016 of the date when Arlanda’s emission ceiling is supposed to go into effect, provided that LFV submits an application for a new environmental permit by no later than the end of 2010. However, on formal grounds, the Supreme Court rejected this linkage between a change in terms and the application, which means that the emission ceiling will be compulsory in 2011. LFV has been working on an application for a whole new environmental permit since 2008, and the goal is to submit it at year-end. When this application is considered, the emission ceiling will be examined in its entirety, which for formal reasons was not possible in the Supreme Court hearing. SAS has extensive activities at Arlanda and is very much dependent on the airport’s environmental permit. The environmental permit for Copenhagen Airport includes a noise limit of 80dB(A) for night traffic. SAS is evaluating technical fixes for lowering the noise level of its MD-80 aircraft. So far, this attempt has not had satisfactory results. At the same time, SAS is reducing its need to use MD-80 aircraft, and airport noise limits are not expected to have any material effect on SAS’s traffic planning. Due to stricter noise standards, a growing number of airports have tougher restrictions regarding permitted approach and takeoff corridors. Deviations generally result in fines on the airline. LFV has appealed a judgment regarding noise restrictions in connection with Landvetter Airport outside Gothenburg. SAS and LFV believe that since the judgment does not take into account all factors impacting the environment, it unfairly affects airlines with good environmental performance. In general, the trend is toward increased use of environmentrelated charge systems and operational limits. The twofold purpose is to reduce local environmental impacts and create incentives for airlines to speed up the use of aircraft with the best available “green” technology. Read more about policies and violations in the Report by the Board of Directors, pp. 52-53. Aviation fuel Engine oil Halons Flight operations account for an estimated 95% of SAS’s environmental impact OUT Airport owner’s responsibility Wastewater (disposal) Lavatory waste (disposal) SAS’s responsibility* Cabin SAS’s responsibility* Organic waste Waste Unopened packaging Waste and recycling Lavatory waste IN Food and beverages Packaging Disposable/semidisposable items Articles for sale Newspapers Chlorinated water Germicides Cabin operations account for an estimated 2% of SAS’s environmental impact OUT Airport owner’s Air transport’s share of global carbon emissions Air transport 2% Other transport 12% Agriculture 14% Energy/other 72% Source: EEA/IPCC (2004) SAS’s responsibility* Ground services SAS’s responsibility* IN Glycols Water Maintenance supplies Energy Vehicle fuel Office supplies Chemicals Equipment Work clothes and uniforms responsibility Waste Hazardous waste Glycols Wastewater Urea/Acetate Sulfur dioxide (SO2) Wastewater Carbon dioxide (CO2) (disposal) Nitrogen oxides (NOx) Hydrocarbons (HC) Soot and particulates Volatile organic compounds (VOC) Air transport’s share of the transportation sector’s total carbon emissions Air transport 12% Shipping/rail 12% Road transport 76% Airport owner’s responsib. Urea/Acetate * Direct and indirect responsibility SAS Group Sustainability Report 2009 SAS Group Sustainability Report 2009 Ground operations account for an estimated 3% of SAS’s environmental impact OUT 105 104 Source: Stern Report 2000, WBSCD (2004) See also Environmental management system on p. 111. Four pillars of SAS and airline industry environmental work New technology Infrastructure The airline industry’s four pillars The industry’s environmental work takes place in four areas: New technology, Infrastructure, Operational measures and Economic instruments. The airline industry’ commitment to reducing its environmental impact requires long-term investment in environmentrelated measures that take time to carry out and are capital-intensive. The airlines are a relatively young industry, but there is considerable potential for environmental improvements, provided that they are technically feasible and economically justifiable. In the last forty years developments have significantly altered the airlines’ operating assumptions. CO2 emissions per produced revenue passenger kilometer have been reduced by 70%, and in the next forty years, it is the airline industry’s goal to lower total greenhouse emissions by 50% compared with 2005. www.enviro.aero New technology New technology primarily means lighter and more aerodynamically designed aircraft, more efficient engines and alternative fuels based on renewable sources. The major aircraft and engine manufacturers are now focusing on the next generation of long-range aircraft, which will be in commercial service in a few years. After that, short- and medium-range aircraft will be prioritized and will probably be commercially available around 2020. The major aircraft and engine manufacturers indicate that the next generation short- and medium-range aircraft will have fuel consumption that is 30-35% lower than current best available technology, with corresponding reduction of CO2 emissions. There is a parallel development effort by smaller aircraft manufacturers, which will have a short- and medium-range aircraft available already in 2013. It will reduce fuel consumption and CO2 emissions by 15-20% compared with other aircraft of the same size. This development has prompted the major manufacturers to consider the possibility of installing next generation engines on aircraft currently available, which will reduce fuel consumption and CO2 emissions by 10-15%. Moreover, next generation engines will mean approximately 60% lower NOx emissions and substantially less noise. Infrastructure Within the framework of Eurocontrol there is an ongoing effort aimed at coordinating European air traffic management – SESAR (Single European Sky ATM Research). This would lead to shorter flight paths, shorter holding time in the air and on the ground and less congestion in the air and at airports. Fully-implemented, it would result in an estimated 10-12% lower environmental impact. It is estimated that this process will be completed by 2020. A step in the right direction is that a common Nordic airspace is being established as a part of the Single European Sky. Similar projects are being carried out in many places in the world. Operational measures Most major airlines have action programs for optimizing resource in order to reduce environmental impacts over time. These include fuel saving, route planning, optimizing speed and altitude, weight reduction and improvements in communication, training and information to create awareness of the need for small- and large-scale changes in all parts of operations. This effort is absolutely crucial for improving efficiency using existing aircraft and under current assumptions. Economic instruments Taxes and charges are often used by opinion makers as examples of effective economic instruments for reducing the airlines’ environmental impact. The debate takes two main approaches. One is for airlines to pay for their environmental impact, and the other is not only to limit the growth of air transport, but also its current scope. The EU’s own estimates show that taxes and charges do little to reduce demand. On the other hand, they increase costs for the airlines, which affects fares. At the same time, the airline industry is going against the tide of opinion, which facilitates the introduction of environment-related taxes. The airline industry’s general view is that economic instruments should be competition-neutral, cover the global industry and always be based on actual emissions rather than the number of passengers. The essence of the economic instruments must be to encourage lower emissions rather than limit the growth of the airline industry and thereby deny society the benefits of air transport. SAS Group Sustainability Report 2009 Results for the year Despite the fact that 2009 was characterized by a deep recession and receding demand, SAS’s climate and environmental index improved in all areas, except for intercontinental traffic. Total carbon emissions were the Group’s lowest ever. SAS’s carbon dioxide (CO2) emissions per unit produced fell to 127 (129) g/RPK. The climate index, which also includes emissions other than CO2, improved to 93 (97). The chief reasons for the improvements are that the Core SAS strategy adjusted SAS’s supply early on to the falling demand and that during the year, SAS was successful in reducing fuel consumption in day-to-day operations. Moreover, 16 new aircraft with better environmental performance went into service during the year. Historical data have been adjusted to reflect developments in the companies in Core SAS. With regard to individual company and unit environmental indexes in 2009, all improved except for intercontinental traffic, whose deterioration was due to a fall in the passenger load factor during the year. All told, however, the absolute majority of SAS companies and units are ahead of, or in line with, their environmental targets for 2011. The SAS Group’s total CO2 emissions fell by 35% in 2009 compared with 2008. The reduction is primarily due to the sale of Spanair and airBaltic, capacity cuts within the framework of the Core SAS strategy and a successful effort to reduce fuel consumption through fuel saving projects and the introduction of 18 new aircraft, for example. In February 2010, the Core SAS strategy was strengthened, which involves substantial changes in SAS’s production and organization and for the individual employee. Management of SAS will be centralized and streamlined, which will be reflected in sustainability reporting for 2010. Environmental responsibility In 2009, the SAS Group’s flight operations accounted for more than 95% of its overall environmental impact. The remainder came from ground and cabin operations. Customer perceptions of SAS as an environmentally and socially responsible company are measured in the annual customer survey that is part of the Customer Satisfaction Index. A survey was done in February 2009, which showed a clear improvement. The results are presented on page 115. Climate index Starting in 2007, SAS has reported a climate index, which refers to weighted climate impact excluding noise, i.e., emissions of CO2 and nitrogen oxides (NOx). The index measures the Core SAS’s overall climate impact relative to traffic measured in RPK and was worked out in the period 2005-09. The trend was positive in 2005-07. In 2008 the climate index deteriorated, and in 2009 it improved by four points to 93. The chief cause was a change in the utilization of the aircraft fleet and a relative decrease in CO2 and NOx emissions. The target for 2011 is 89. Environmental index Since 1996 SAS has been measuring eco-efficiency using an environmental index in which environmental impact is measured relative to production. Read more about calculation methods under “Reports, Accounting principles” at www.sasgroup.net. An environmental index is measured for each company, but not for the Group as a whole. These indexes are a tool for managing and following up the Group’s environmental performance. In 2009 most companies continued to show a positive trend. See p. 119. Environmental management system SAS’s environmental work is based on the ISO 14001 standard as a framework for environmental management, a requirement for constant improvements and an environmental responsibility for stakeholders. Since the mid-1990s, all companies and units have their own environmental management system that is inte- ACARE Breakthroughs Alternative fuels Improved aerodynamics Single sky NUAC+FAB Coordinated ATM SAS climate index* 100 95 90 85 2005 2006 2007 2008 2009 2010 2011 Operational measures Economic instruments The climate index measures climate impact relative to production measured in RPK and consists of 2/3 carbon dioxide and 1/3 nitrogen oxides (as a non-CO2 indicator). * Adjusted from 2005 to reflect the current Group’s climate impact. Corrected in the Internet version, thus departs from the index in the print version. Fuel saving program Green flights Emissions trading Taxes, charges, regulations Ground-based environmental measures Energy SAS Group work on ISO and EMAS Corporate Functions Production Norway Production Denmark Production Sweden Widerøe Blue 1 SAS Cargo SAS Tech 0 1 2 3 4 SAS works continuously on adjustments and improvements to reduce its energy consumption. In 2009, Coor, SAS’s main provider of property services, made it less cumbersome to examine environmental data and the buildings are inventoried on an ongoing basis with the aim of finding ways to optimize energy consumption. SAS endeavors to only use energy from renewable sources. All sources of energy consumption are to be examined and optimized to reduce energy use. SAS and Coor will carry out an energy saving campaign in 2010. Ground transportation SAS endorses airport owners’ efforts to reduce CO2 emissions and participates in projects for “better air.” As a result, SAS’s ground equipment (such as vehicles) are improved, adjusted or replaced with greener units. SAS is working for all company cars to be replaced with green vehicles. Guidelines will be issued for all companies and units in SAS, though decisions will be made locally, since green vehicles are defined differently from country to country. Deicing Deicing aircraft before takeoff uses glycols, which are harmful to the environment. SAS continues to search for alternative technologies. Various methods to reduce glycol use are currently being evaluated. For example, a system is being tested with electronic control of glycol content and a preventive deicing method that may lead to a substantial reduction of glycol use with the same degree of safety. * * 0 = Not started 1 = Started 2 = Well on the way 3 =Internal audit 4 = Certified All companies have begun the process of assembling a formalized environmental management system in accordance with ISO 14001. The goal is certification before 2011. The diagram illustrates process status at the end of February 2010. * EMAS-certification requires completion of ISO 14001 certification. Blue1 and SAS Cargo will be EMAS-certified during the first half of 2010. 110 SAS Group Sustainability Report 2009 111 www.blacksunplc.com © Black Sun Plc 2011 25
