AirAsia X (AAX) marked its first inclusion in the constituents of the FTSE4Good Bursa Malaysia (“F4GBM”) Index*, following new highs in its sustainability scores based on the latest ratings released by the stock exchange and international assessment bodies in December 2024.
The airline saw its FTSE ESG ratings score soar to 3.5 from 2.1 in 2023, following comprehensive disclosures of its sustainability strategy, in line with the progress of the proposed transaction for the acquisition of Capital A’s aviation businesses AirAsia Aviation Group Limited and AirAsia Berhad.
The abovementioned ESG scores were assessed based on the airline’s 2023 performance.
Summary Scorecard
AirAsia X CEO, Benyamin Ismail said: “We have recorded tangible progress in progressing AAX’s ESG journey by implementing real, measurable actions that drive long-term resilience and value creation. From carbon reduction measures through fuel efficiency and operational improvements to reducing waste and integrating sustainability into our risk management framework, we are taking a pragmatic, data-driven approach to our ESG journey to ensure lasting impact.”
“The appointment of sustainability advisers across the brand has strengthened our understanding of ESG risks and opportunities, ensuring these considerations are fully integrated into our decision-making processes. As we progress towards the acquisition of Capital A’s aviation businesses, aligning AAX’s sustainability efforts with Capital A’s sustainability roadmap reinforces governance, transparency, and long-term resilience, supporting our commitment to scaling operations sustainably.”
AAX continues to strengthen its sustainability momentum through measurable improvements in ESG practices. In 2023, the airline achieved a 32% reduction in carbon intensity average seat per kilometre and avoided 5,395 tonnes of CO₂ emissions through enhanced fuel efficiency measures. Governance efforts were bolstered with the introduction of its Sustainability Steering Committee and Working Group as well as the formal integration of ESG into its Enterprise Risk Management framework, ensuring proactive risk assessment.
The airline also expanded its Diversity, Equity, and Inclusion commitments, with 48% female workforce representation, 37% women in the Leadership Team, 22% women in management, and 17% representation on the Board of Directors. Additionally, AAX conducted its first gender pay gap analysis, identifying areas for improvement and committing to long-term equitable remuneration strategies.
As AAX begins its 2024 reporting cycle, it looks forward to highlighting sustainability gains from fuel efficiency programs, waste management strategies and enhancing the guest experience, among others. The airline remains committed to advancing low-carbon transition strategies, including fleet modernisation and SAF exploration as part of its long-term sustainability agenda.
For more details on AAX’s sustainability disclosures, please refer to the ‘Sustainability at AirAsia X’ section of our Annual Report 2023.
*FTSE Russell ESG Ratings utilises a globally consistent methodology to assess companies and rate them for selection into FTSE4Good indices. To qualify for inclusion, companies have to achieve a rating of 2.9 in emerging markets and 3.3 in developed markets while also meeting financial conditions as determined by their respective listed exchanges.