Managing ESG Risks in the Aviation Industry
As environmental, social and governance-related issues continue to be a focus of investors and other stakeholders, we expect to see industry participants continuing to explore innovative ways to reduce their carbon emissions and mitigate ESG risks, say Kevin Lewis, Bart Biggers and Heather Palmer, attorneys with Sidley Austin.
March 31, 2021 at 10:59 AM
6 minute read
COVID-19 has left many of us reminiscing about travel—flights to family or foreign locations, and even work trips have taken on a rosy glow. The past few years have brought another concept into sharper focus—a goal of bluer skies and greener pastures through reduced carbon emissions. Investors, shareholders, employees, customers and other stakeholders are increasingly focused on aviation companies managing environmental, social, and governance (ESG) risks, including climate change and carbon emissions. In recent years, ESG-related issues in aviation have received ever-growing global attention, with Europe in particular focusing on air travel carbon emissions. Even with COVID-19 significantly curtailing air travel, airlines continue to focus on managing ESG risks. As customers steadily return to the skies, key considerations for the aviation industry to enhance their ESG strategies will include the scope of their carbon emissions, technological advances in aircraft and engine design, alternative fuel development, and the use of carbon credits or offsets to mitigate carbon emissions.
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