Environmental

We are conscious, now more than ever, of the need to take positive action to protect our natural environment. Business, alongside governments, can take a leading role in making critical decisions that will have positive impact for future generations. At SMBC Aviation Capital, we have started on this journey by firstly understanding our full impact on the environment through measuring our carbon emissions. From that starting point, we are now seeking ways to minimise those emissions. This includes procuring of carbon credits and understanding how we can play a role in scaling of sustainable aviation fuels for our own business and our customers. We also collaborate with our suppliers so that together, we can devise solutions that can have a positive environmental impact.

STAKEHOLDER REVIEW

Our ESG strategy was built around an independent stakeholder review to understand and prioritise our ESG issues. This was completed via online surveys and importantly through one-to-one interviews with members of staff and external stakeholders including customers, financial institutions, industry specialists, OEMs, and suppliers.

In total, 31 ESG areas of potential focus were identified by our stakeholders in relation to our industry and our business. The findings of this materiality assessment have been foundational in the creation of our ESG strategy.

Sustainable Aviation Fuel

The deployment of Sustainable Aviation Fuel (SAF) is essential for the decarbonisation of the aviation sector. Made from renewable sources like plant-based feedstock or waste materials, SAF significantly reduces greenhouse gas emissions over their life cycle. Alongside improvements in airframe and engine design, operational efficiencies, and potential breakthroughs in electric and hydrogen propulsion, SAF is set to play the most significant role in achieving net zero aviation.
 

Progress to date:

  • We are working with SMBC Bank, Sumitomo Corporation and SMFL, our Shareholders, to investigate ways in which we might increase the supply of SAF to our industry
  • We have collaborated with Trinity College Dublin to create a new, state-of-the-art Sustainable Aviation Fuel Research Facility based at our new, landmark headquarters in Dublin
  • We are also working on a feasibility study with Aircraft Leasing Ireland into the production of SAF on the island of Ireland
     

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Carbon Credits

Carbon credits can play an important role in an airline’s decarbonisation strategy as an interim solution until new technologies come on stream. Carbon credits can be acquired from SMBC Aviation Capital by airlines either as part of a lease contract or independently.

For more information on our carbon credits programmes, visit our carbon credits section. 

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PROGRESS TO DATE
  • Our acquisition strategy is focused on acquiring fuel-efficient, new technology aircraft. As of now, 64% of our fleet consists of new technology aircraft, which is a positive step towards achieving our goal of 80% new technology aircraft by March 2026
  • We are contributing to the research on sustainable aviation fuel (SAF). Our partnership with Trinity College Dublin Sustainable Aviation Fuel Research Facility is a great example of our commitment to finding innovative and sustainable solutions for the aviation industry
  • In October 2023, we launched our first sustainability linked loan facility with Bank of Communications (Hong Kong) Limited
  • In March 2024, we will relocate to our new sustainable headquarters with LEED Gold 4.1 certification
  • We aim to strengthen our carbon offsetting capabilities by working with our shareholders to expand the range of methods available to us for offsetting carbon
  • We work closely with our customers to develop decarbonizing objectives and strive towards a sustainable future
  • In February 2024, we published our Suppliers Code of Conduct, encouraging our suppliers to join us on our journey to achieving the highest ESG standards 

Our journey to 2050

2024 - 2026

MANAGE

  • Issue our first sustainability linked lease

ACCELERATE

  • Achieve up to 80% new technology fleet by March 2026
  • Explore Carbon Capture and Storage

REDUCE

  • Create sustainable global offices
  • Explore a science aligned pathway to reach net zero by 2050

COLLABORATE

  • Support SAF off-take at scale
  • Build links to next generation technology research for future opportunities
2035 - 2040

ACCELERATE

  • Purchase and lease our first electric / hydrogen aircraft

REDUCE/ACCELERATE

  • Target 50% of fleet SAF-fueled or electric / hydrogen
By 2050

REDUCE/ACCELERATE

  • Target 100% of fleet SAF-fueled or electric / hydrogen

REDUCE

  • SMBC Aviation Capital to have net carbon zero value chain

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