5. Disruptive sustainability forces
are reshaping the airline
industry
5
Global Airports
Will be submerged by
2100 due to rising sea
levels if GHG emissions
are not reduced
80
Airlines will face the
full force of climate
change across their
operations
Disruptions cost airlines $60B
annually, about 8% of worldwide
industry revenue
Extreme weather events have
doubled in frequency over the past
three decades, wreaking havoc on
air travel timetables and safety
Customers demand
action on sustainability
from airlines
88% of passengers would choose
an airline producing fewer GHG
emissions for future journeys
36% of travelers plan to fly less to
reduce their climate impact, but
few brands are taking action to
recapture this lost market
Emissions reduction
extends far beyond
decarbonization
2.1% of global CO2 is emitted by
airlines, but the industry accounts
for 4.9% of global warming effects
Nitrogen oxides (NOx) emissions
from aircraft will have increased by
160% between 2002-25, raising
non-CO2 air pollution concerns
Regulators will require
sustainable aviation
fuel and efficient
planes
New generations of aircraft are 15-
20% more efficient than the last,
raising regulatory baselines
$15 billion is invested in aircraft
research and development
annually, directed towards new
sources and reduced use of fuel
Sources: World Resources Insitute / ICF / IATA / ABBB / McKinsey / UNFCC / Science Direct
6. Regulations are tightening across geographies
North America EMEA APAC Global
Strict Regulations
EU Green Deal requires transport
emissions to be reduced by 55% by
2030, with airlines included
Implications
Airlines are required to verify and
report emissions to participate in the
marketplace and meet EU goals
Loose Regulations
Allowable emissions are determined in
proportion to size of aircraft using
formula based on current technology
Implications
Emissions improvements will be
dictated by technological capabilities
of new equipment
Frameworks and Goals
• CORSIA: Stabilize
emissions at 2019 levels
• IATA: Fly net zero by 2050
• ICAO: 2% annual fuel
efficiency improvement
through 2050
Emerging Regulations
China, India, Japan, and larger nations
are developing aviation plans based
on global frameworks
Implications
Global standards will play a strong
role in pushing states to adopt tighter
regulations
Sources: EPA.gov / Harvard Law / EU Climate Action / ICF / ICAO (1) / S&P Global / CORSIA / IATA / ICAO (2) / India GAP
The US implemented its first-
ever emissions rules for
commercial airlines in 2021 to
reach net zero by 2050.
The EU is operating a tradeable
emissions market, gradually
reducing allotments until full
auction in 2027.
Asian states, despite an
ongoing COVID slowdown, are
complying with global targets
to reduce air travel emissions.
A set of voluntary frameworks
are first designed to stabilize
global aviation emissions at
2019 levels, then net zero.
7. IBM Confidential
Net Zero 2050
As a result, industry leaders are pursuing aggressive sustainability targets
7
10% SAF 2030 -20% Scope 1 & 2 2030
Illustrative
Sources: Delta / American / Lufthansa / United / Air France / Southwest
13. Sustainability is good business for airlines
Profitability depends upon efficiency
with costs at all-time highs— meaning
“green” can be a core operating
strategy.
Extended life of fleets reduces need for
costly capital expenditures, improving
margins
Enhanced operational efficiency of
facilities and servers reduces energy
consumption
Weather visibility can mitigate costly
scheduling and logistics disruptions
Stakeholders are pressuring airline
leaders to act. In a crowded
marketplace, hitting goals will pay
dividends.
Investors are building green portfolios,
and airlines prioritizing sustainability will
be positioned for capital inflows
In a post-COVID world, strong social
initiatives are key to retain employees,
attract new hires, and prevent strikes
Regulators are enforcing stricter
emissions standards each year
Travelers prefer to fly responsibly. Drive
growth by making sustainability a key
differentiator.
40% of travelers globally indicated they
would pay at least 2% more for
carbon-neutral tickets when surveyed
Airlines are upgrading airport space,
cabins, and services, integrating
sustainability to attract passengers
Sustainability builds a stronger
reputation and industry credibility
Revenue Growth Increased Profitability Meeting Market Demands
Source: McKinsey
26. IBM’s sustainability solutions
Intelligent assets, facilities and
infrastructure
Maximo
TRIRIGA
Responsible computing
and green IT
Turbonomic
z16 | LinuxONE
IBM Cloud
Sustainable supply
chains and circularity
Sterling Order Management
Supply Chain Intelligence Suite
ESG Data, Reporting
and Risk Management
Envizi, Environmental Intelligence Suite,
social and climate risk intelligence
Sustainability Strategy
and Roadmap
Garage for Sustainability (co-creation)
Sustainability strategic advisory services
Turn sustainability ambition into action
with IBM and an ecosystem of partners
IBM Consulting and
Ecosystem Partners
Strategy, experience,
technology, managed
services capabilities
IBM Technology and Ecosystem Partners
Infused with AI and hybrid cloud technologies
45. 45
IBM Garage for Sustainability Stories
How can blockchain help stop the flow of
conflict minerals?
How could climate data transform
businesses’ financial decision-
making?
How does a power company use AI to
harness renewable energy?
How can the energy industry cut time to
market for wind power?
How can AI help reduce landfill
waste?
How is blockchain paving the way for
reduced ocean pollution?
How can cloud technology increase
wind farm output?
How does a fertilizer company use
digital farming to feed a growing
planet?
How can fashion retailers reduce unsold
inventory
and increase profitability?
How can lumberjacks
provide insight to help
prevent deforestation?
How can AI help reduce energy usage
and CO2 emissions?
How can the energy industry increase
electromobility without killing the
power grid?