D R I V I N G S U S TA I N A B I L I T Y T O P R O T E C T
T H E F U T U R E O F T R AV E L
Q A N T A S S U S T A I N A B I L I T Y R E P O R T 2 0 2 2
QANTAS SUSTAINABILITY REPORT 2022
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We acknowledge the Traditional Custodians
of the land on which we work, live and fly.
We pay respect to Elders past, present
and emerging.
This Sustainability Report has been prepared for the purpose of providing investors with information regarding our approach to sustainability issues related
to our business. It has not been prepared as financial or investment advice or to provide any guidance in relation to the future performance of Qantas.
This Report contains forward-looking statements and statements of opinion. These may include statements regarding sustainability plans and strategies,
the impact of climate change and other sustainability issues, energy transition scenarios, actions of third parties, and external enablers such as technology
development and commercialisation (including with respect to sustainable aviation fuels), policy support, market support, and energy and offsets availability.
Any such statements are made only as at the date of this Report. Readers are cautioned not to place undue reliance on such statements, particularly in light
of the long-time horizon which this Report discusses and the inherent uncertainty in possible policy, market and technological developments.
No representation or warranty is made regarding the accuracy, completeness or reliability of the forward-looking statements or opinions contained in this
Report, or the assumptions on which either is based. All such information is, by its nature, subject to significant uncertainties outside of the control of Qantas,
and actual results, circumstances and developments may differ materially from those expressed or implied in this Report. Except as required by applicable
laws or regulations, Qantas does not undertake to publicly update or review any forward-looking statements, whether as a result of new information or future
events. To the maximum extent permitted by law, Qantas and its officers do not accept any liability for any loss arising from the use of the information contained
in this Report.
Aboriginal and Torres Strait Islander readers are warned that this Report may contain images of deceased persons. All references to ‘First Nations’ throughout
this document are intended to include Aboriginal and/or Torres Strait Islander peoples in Australia.
Contents
Chairman’s message 2
CEO’s message 3
FY22 Highlights 4
About Qantas 6
About this Report 7
Sustainability Framework 8
Sustainability governance 11
Valuing our planet 14
Climate action 16
Reducing waste through circularity 27
Protecting nature through sustainable tourism 28
Enabling our people 30
Supporting our people to feel safe and valued 32
Enhancing inclusion and diversity 38
Human rights 42
Connecting customers and communities 44
Connecting the regions 46
Supporting communities 49
Aboriginal and Torres Strait Islander partnerships 52
Non-financial metrics 58
Cover: In July 2022, we launched an advertising campaign using our airport channels aimed at raising awareness of Qantas’ investment in a net zero future and
protecting the future of travel. This is one of the images from the campaign.
Inside cover: Gariwerd (also known as the Grampians National Park, Victoria).
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Aviation is a critical industry, particularly in a country
like Australia that’s so far away from much of the world.
The Qantas Group wants future generations to have access
to all the opportunities that global travel offers, and to do this,
we need to make air travel more sustainable.
The foundations are being laid. This year, following the release
of the Qantas Group’s Climate Action Plan, sustainability
became one of the four key foundations for the Group,
and one of the seven focus areas of the Group Corporate
Strategy. As of this year, executive remuneration is also linked
to a climate-related target.
Qantas is facing into the challenge of decarbonising aviation
through the use of sustainable aviation fuel, high-quality
carbon offsets and operational and fleet efficiencies.
Having a sustainable business is about more than just reducing
emissions, and the Qantas Group has a strong history of showing
leadership on issues that matter to the Australian people,
including reconciliation. We are currently working on our next
Reconciliation Action Plan and hope to again achieve Elevate
status. We are also updating the way we engage and develop
our Aboriginal and Torres Strait Islander workforce. We have
prioritised cultural awareness training for our people across
the business, and continue our support for Aboriginal and
Torres Strait Islander suppliers.
We have long supported constitutional recognition for Aboriginal
and Torres Strait Islander peoples, and in 2017, joined other
businesses in publicly supporting the Uluru Statement from
the Heart.
Qantas was founded in the Queensland outback more than
100 years ago, and our commitment to regional Australian
communities continues. Our Regional Grants program, paused
during COVID-19, will return in 2023, and we are committed
to raising awareness of our Resident Fares program which
provides discounts for residents of regional Queensland,
Western Australia and the Northern Territory.
This Sustainability Report sets out how far we’ve come
in the past 12 months, while looking forward to the next
steps on our journey.
RICHARD GOYDER AO
Much has been said about the challenges the aviation industry
has faced over the past few years. What has remained constant
throughout all this is our commitment to the environment and
to the communities we operate in.
This is the Qantas Group’s Sustainability Report, our annual
report card on the progress we’re making towards our
goals and how we’re performing across broader social,
environmental and governance areas.
In 2019, Qantas became only the second airline group in the
world to commit to net zero carbon emissions by 2050. In March
this year, in the Qantas Group Climate Action Plan, we set out the
steps we’ll take to get there, including an interim target of 25 per
cent carbon emission reduction and a sustainable aviation fuel
(SAF) target of 10 per cent in our fuel mix, both by 2030.
We’ve made some great progress this year and there’s a lot
more in the pipeline.
SAF is the key lever we have to reduce emissions, particularly
while new low-emission aircraft technology is still decades away.
In January, we started using blended SAF on the Kangaroo route
between London and Sydney, and we signed a deal to uplift SAF
from Californian ports from 2025.
Establishing a domestic commercial SAF industry is critical
to reaching our targets and will require airlines, industry and
government to work together, which is why we’ve partnered
with Airbus to establish a US$200 million fund to help kickstart
the SAF industry.
In May this year we announced our domestic fleet renewal
program for up to 134 Airbus A321XLRs and A220 aircraft,
to replace our Boeing 717s and 737s as they gradually retire.
Combined with the existing order of 109 A320s for Jetstar, the
Qantas Group order was the biggest in Australian aviation history.
When running on fossil fuels, these new aircraft will reduce
emissions by at least 15 per cent compared to emissions from
the aircraft they are replacing, and this improves significantly
when using SAF. We also ordered 12 Airbus A350-1000s to
operate direct flights from Australia to cities including New York
and London; flights which will be carbon neutral from day one.
We’re also making changes in the way we manage waste, setting
targets this year for zero single-use plastics by 20271 and zero
general waste to landfill by 20302.
In addition to our own efforts, we’re also encouraging our
customers to act sustainably when flying and in their everyday
lives through our new Green Tier Frequent Flyer program.
We’ve increased our ambition when it comes to inclusion
and diversity in our workforce. We have raised our targets for
women in senior leadership roles and our targets for Aboriginal
and Torres Strait Islander employment, and continue to build
a pipeline of more diverse pilots through our Qantas Group
Pilot Academy.
As we continue our recovery from the COVID-19 crisis, reducing
our impact on the planet and ensuring the next generation can
share in the benefits of aviation is a key focus. We look forward
to keeping you updated on our journey.
ALAN JOYCE AC
Chairman’s message CEO’s message
1. Excludes items required for medical or health and safety reasons
2. Excludes quarantine waste, a highly regulated and specialised waste stream with limited waste diversion pathways. All waste associated with international
ports (inbound and outbound) is treated as quarantine waste.
Our sustainability vision
Driving sustainability to protect
the future of travel
FY22 Highlights1
1. Detailed footnotes on pages 59 and 60.
2. International Freight Assistance Mechanism
20+
new domestic
routes launched
19
international ports
restarted, 8 new
routes announced
24%
improvement
in TRIFR from
FY21 to FY22
US$200M
Qantas and Airbus
partnership for
domestic SAF
production
29M
single use
plastics removed
94 million items since 2019
37.4%
women
in leadership
69%
Australian
supplier spend
32,000
tonnes+ of freight
on 2,019 IFAM2
charters
21M+
passengers
carried
220+
pandemic
repatriation
flights
Photo: In 2022, we relaunched the I Still Call Australia Home advertising
campaign. Pictured is Whitehaven Beach in The Whitsundays, Queensland.
Connecting
customers and
communities
Valuing
our planet
Enabling
our people
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About Qantas
Founded in the Queensland outback in 1920, Qantas has grown to be Australia’s largest domestic and international airline. Qantas has
a range of subsidiary businesses that all, in one form or another, support the overall operations of the Group.
The Qantas Group’s main business is the transportation of customers using two complementary airline brands — Qantas and Jetstar
— operating regional, domestic and international services. This also involves a range of operational functions, both in-house and
contracted, including pilot and cabin crew operations, aircraft engineering and maintenance, catering, ground handling and cleaning
services, freight processing and other operational airline support services.
AIRLINE
Our main airline
business transports
customers using
two complementary
brands — Qantas and
Jetstar. Our airline
brands operate
regional, domestic and
international passenger
services from our
bases in Australia,
New Zealand, Singapore
and Japan
LOYALTY
Our loyalty program
undertakes activities
connected with earning
Qantas points, including
Qantas Wine, Qantas
Insurance and Money,
Qantas Business
Rewards and retail
partnerships1
FREIGHT
Qantas Freight is
Australia’s largest
independent air freight
business, transporting
more than 4,000 air
freight items to over
500 destinations
globally every day
ASSOCIATED
BUSINESSES
Wholly owned
subsidiaries of Qantas
support our core
business, including
Qantas Group
Accommodation Pty
Ltd, an online travel
agent service and Vii,
a gift card technology
service provider
GROUP BUSINESS
UNITS
A number of operating
business units support
our flying operations,
including engineering
and maintenance,
flight training, safety
and security, customer
service and group
corporate functions
About this Report
The Qantas Group is committed to transparent reporting to demonstrate how we are creating shareholder value, delivering
our strategy, laying foundations for long-term sustainability and making a positive impact in the community.
REPORTING SCOPE
Unless otherwise stated, this Sustainability Report (Sustainability Report or Report) covers the period 1 July 2021 to 30 June 2022
(FY22) for Qantas Airways Limited and its wholly-owned entities unless stated otherwise. These entities form the Group’s respective
business segments, including Qantas International (including Qantas Freight), Qantas Domestic (including QantasLink and Network
Aviation), Qantas Loyalty and Jetstar Group (including Jetstar International, Jetstar Domestic and Jetstar Asia). All financial data is in
Australian dollars, except where explicitly stated. The structure of the Report reflects our Sustainability Framework as described on
page 8.
REPORT BOUNDARY
In this Report, the terms ‘Qantas’, ‘Qantas Group’, ‘the Group’, ‘our business’, ‘organisation’, ‘we’, ‘us’, ‘our’ and ‘ourselves’ refer to
Qantas Airways Limited and its wholly-owned entities unless stated otherwise. This Report contains information for the Group as at
the date of this Report.
MATERIALITY
Qantas Group has assessed the sustainability issues and opportunities that matter most to our stakeholders and where Qantas can
have the most impact. These issues and opportunities also inform our Sustainability Framework. The assessment included a review
of peer reports; issues being raised by investors, analysts, NGOs and benchmarking organisations; and issues being raised internally.
We aim to undertake a deeper analysis in FY23.
GLOBAL FRAMEWORKS AND COMMITMENTS
GLOBAL REPORTING INITIATIVE
This Report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards: Core option. The GRI Content Index
for this Report, which also contains our alignment with the United Nations Global Compact (UNGC) Principles and the UN Sustainable
Development Goals (SDGs), is available in the Report appendix.
UNITED NATIONS GLOBAL COMPACT
The 10 principles of UNGC are derived from the Universal Declaration of Human Rights, the International Labour Organisation’s
Declaration on Fundamental Principles and Rights at Work, the Rio Declaration on Environment and Development, and the United
Nations (UN) Convention Against Corruption. Qantas joined the UNGC in 2017.
This Sustainability Report serves as our Communication on Progress on how we are implementing the UNGC’s principles
and supporting its broader development objectives in the areas of human rights, labour, anti-corruption and the environment.
UNITED NATIONS SUSTAINABLE DEVELOPMENT GOALS
The 17 UN SDGs are part of the UN’s 2030 Agenda for a better future for people and the planet. Qantas Group’s Sustainability Framework
is aligned with and supports the achievement of the UN SDGs. We recognise that there are some SDGs where we have a greater ability
to influence environmental and social outcomes. These are referenced at the beginning of each key section of the Report.
TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES
The Financial Stability Board (FSB) created the Task Force on Climate-related Financial Disclosures (TCFD) to develop
recommendations on the information companies should disclose related to climate change. Qantas Group publicly declared our
support for the TCFD and its recommendations in December 2017. We have used the recommendations of the TCFD to structure
the climate action section of this Report (pages 16 to 26). More detail on how the Qantas Group is aligned with each specific TCFD
recommendation can be found in the Report appendix.
CLIMATE ACTION 100+
Climate Action 100+ is an investor-led initiative, focused on companies it views as key to driving the transition to global net zero
emissions. Qantas is one of 166 focus companies selected for engagement. Qantas engages with the Climate Action 100+ and
the climate change section of this Report is aimed at supporting its annual benchmark.
ASSURANCE
KPMG has provided Limited Assurance over selected sustainability metrics (water consumption, greenhouse gas emissions
1. In May 2022, Qantas took a majority shareholding in the Australian-made online travel business, TripADeal, allowing Qantas Loyalty to expand its online package holiday offering. and waste to landfill) for the period 1 July 2021 to 30 June 2022). The Assurance Statement can be found on page 61.
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Sustainability Framework
The Qantas Group has a long-standing commitment to sustainability. In 2019, we were the second airline in the world to commit
to net zero emissions by 2050. In 2022, we updated our Corporate Strategy Framework to specifically reference sustainability.
Sustainability is now one of the four key foundations for the Qantas Group, and one of the seven focus areas of our
Corporate Strategy.
Our Sustainability Framework is aligned to our strategic priorities and focuses on three key principles — valuing our planet, enabling
our people and connecting customers and communities — to support our vision of driving sustainability to protect the future of travel.
We have used this Framework to structure the FY22 Sustainability Report. The items described in the graphic below are discussed
in more detail later in the Report.
QANTAS GROUP STRATEGIC PLAN
OUR PURPOSE
OUR
FOUNDATIONS
OUR
BEHAVIOURS
OUR GROUP
STRATEGY
WE TAKE THE SPIRIT OF AUSTRALIA FURTHER
Safety first.
Always caring.
Maximising
leading domestic
position through
dual brand
strategy
Aligning Qantas
and Jetstar with
Asia’s growth
Focusing on
People, Culture
and Leadership
Leveraging
home market
strength and
dual brands to
build a resilient
international
business
Investing in
Customer, Brand,
Data and Digital
Diversifying and
growing Qantas
Loyalty
Driving
Sustainability
Inspired by challenges
and opportunities.
Proud to serve our
customers and community.
RESPONSIBLE
Always care and
be responsible
RESPECTFUL
Work together being
respectful and inclusive
RESILIENT
A positive attitude
to everyday challenges
EXCELLENCE
Striving for excellence
(in all we do)
A strong, ethical
sustainable business.
Our vision: Driving sustainability to protect the future of travel
Climate action Connecting the regions
Reducing our waste through circularity Supporting communities
Protecting nature through sustainable tourism Aboriginal and Torres Strait Islander partnerships
A STRONG, ETHICAL SUSTAINABLE BUSINESS
Sustainability Framework: Three key principles
Exemplary business practices
Safety first | Strong governance and risk management | Drive ethics and integrity
Protect privacy and cybersecurity | Responsible capital allocation | Transparent data and reporting
Sustainable supply chain | Human rights due diligence | Education and awareness | Collaboration and partnerships
Valuing our planet
We are committed to minimising our impact
on the planet — in the air and on the ground
— so that future generations continue
to experience the wonders of travel
Connecting customers
and communities
We are committed to connecting customers
and creating value to strengthen the
communities in which we operate
Supporting our people to feel safe and valued
Enhancing inclusion and diversity
Respect for human rights1
Enabling our people
We are committed to enabling our people
to be and do their best in a safe
and inclusive culture
1. Since launching our Sustainability Framework in March 2022, we have changed Ethical labour supply chain monitoring to Respect for human rights,
recognising the importance of this issue more broadly.
STAKEHOLDER ENGAGEMENT
We have a wide range of stakeholders who we engage with regularly in many different ways.
Key stakeholder group How we engage
Employees Regular communication to all employees including through daily email updates, weekly newsletters
and specific updates from executives and managers; frequent updates to intranet site, internal social
network and internal broadcast system; company-wide livestreamed town halls; special interest
networks; company-wide bi-annual executive roadshows
Customers Direct interaction with crew, airport and contact centre teams, electronic communication, Qantas
and Jetstar website and app, research, Qantas magazine, advertising and media
Shareholders and
investment community
Direct investor engagement throughout the year, half-year and full-year results announcements,
Annual General Meeting, annual reporting, investor roadshows and ASX releases
Suppliers Supplier governance, site visits, audits and onboarding/training (as applicable); Supply Chain Assurance
program, Supplier Requirements and Supplier Code of Conduct; member of Supply Nation
Communities Support of community organisations including not-for-profit groups and charitable partners. Support
in times of natural disaster or crisis. Connecting communities including through reduced fares to some
regional cities
Government Regular engagement on key issues impacting aviation and on other issues more broadly, either directly
or through industry associations
Aviation and
tourism industry
Regular engagement with aviation and tourism bodies (including national and state tourism
organisations) and industry councils on key issues and collaborative opportunities to promote regional,
domestic and international tourism. Key aviation stakeholders are referenced below
Unions Regular engagement with unions who represent our employees, noting the terms and conditions
of approximately 81 per cent (offshore and onshore) of our employees are set through enterprise
agreements. Qantas recognises and supports the rights of freedom of association
AVIATION INDUSTRY PARTNERSHIPS AND MEMBERSHIPS
Sustainability topics and issues are also addressed through the following industry partnerships and memberships.
oneworld
In September 2020, the oneworld alliance became
the first airline alliance in which all member carriers
committed to net zero emissions by 2050.
We are a member of oneworld’s Environmental Sustainability
Board which comprises sustainability representatives from
the oneworld alliance.
International Air Transport Association (IATA)
Qantas is an IATA member. We actively contribute
to the development of international standards
and practices for global airlines, including in relation to human
trafficking. We have leveraged the IATA guidance when
developing our human trafficking training program.
We also support IATA 25by25, an initiative to help address gender
imbalance across the industry.
Airlines for Australia and New Zealand
Airlines for Australia and New Zealand
(A4ANZ) is the peak airline industry group that represents
airlines based in Australia and New Zealand. A4ANZ advocates
on key public policy issues affecting the aviation sector,
including sustainability.
ICAO
ICAO is a specialised agency of the United Nations
that establishes internationally aligned aviation
standards to realise safe, secure and sustainable air operations,
including efforts to prevent human trafficking. We have
participated in government consultation regarding proposed
ICAO measures to combat human trafficking.
Carbon Offsetting and Reduction Scheme
for International Aviation (CORSIA)
CORSIA was a historic agreement reached by the International
Civil Aviation Organization (ICAO) in 2016 to meet the industry’s
commitment to carbon neutral growth. Commencing in 2021,
CORSIA requires airlines to purchase carbon offsets to meet their
share of emissions growth from a 2019 baseline.
Other partnerships and industry associations include:
Business Council of Australia (BCA) of which our CEO is a Board Member, United Nations Global Compact Network Australia,
Diversity Council of Australia, Pride in Diversity of which our CEO is a co-Patron, Australian Network on Disability,
Champions of Change, Australian Packaging Covenant Organisation, Carbon Markets Institute, Climate Leaders Coalition,
Bioenergy Australia and the Royal Aeronautical Society Australian Division.
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Sustainability governance
The Qantas Board has responsibility for the Qantas Group’s overall Corporate Governance Framework, which is designed to enable
the creation, protection and enhancement of shareholder value through responsible, ethical and sustainable business practices.
The Qantas Board oversees and approves the strategic direction of the Qantas Group and oversees the effectiveness of environmental,
social and governance (ESG) policies. The Board is assisted by four Board Committees, with remits that support the Board’s work
across key ESG issues for the business.
The Chief Sustainability Officer is a member of the Qantas Group Management Committee (GMC), which reports to the Group’s Chief
Executive Officer (CEO). A Sustainability Management Board, comprising GMC and key managers with responsibility for sustainability,
has been established to enable focused discussion on sustainability issues, as has a Sustainable Aviation Fuel Future Board given the
significance of this issue for aviation.
Safety, Health,
Environment and
Security Committee
(CHESS)
Assists the Board with
oversight of the systems,
policies and processes in place
within its remit, including the
performance of each, and
undertaking the functions of
a risk committee as set out in
the ASX Corporate Governance
Principles, as they relate to
operational and other relevant
non-financial risks.
Remuneration Committee
Assists the Board with matters
relating to the remuneration
framework for Non-Executive
Directors, and the remuneration
and incentive framework,
and related recommendations
and decisions, for the CEO,
Executive Management,
Senior Executives and
other Group employees.
Audit Committee
Assists the Board with matters
relating to the integrity of the
Group’s financial reporting,
compliance with legal and
regulatory obligations,
the effectiveness of the
Group’s enterprise-wide risk
management and internal
control framework (in
conjunction with CHESS), and
oversight of the independence
of the external and
internal auditors.
Nominations
Committee
Assists the Board with
matters relating to Board
appointments, Director reelections and performance,
the Group’s diversity
obligations, Directors’
induction programs and
continuing development,
Board Committee
memberships and succession
of the Chief Executive Officer.
The Qantas Board is responsible for ensuring that the Qantas Group has an appropriate Corporate Governance
Framework to ensure the creation, protection and enhancement of shareholder value. Key to this are
responsible, ethical and sustainable business practices.
QANTAS BOARD
Chief Sustainability Officer and
Group Sustainability Team
Established in FY22, the Chief Sustainability
Officer is responsible for driving
climate action across the business and
preparing our sustainability disclosures,
including reporting, in alignment with the
recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD)
and in accordance with the Global Reporting
Initiative Standards: Core Option.
Sustainability Management Board
A Sustainability Management Board has
been established to oversee the delivery of
our Group sustainability targets and ensure
the framework is being integrated across
the business. The Board comprises GMC
and Executive representatives from across
the business and meets regularly to ensure
appropriate oversight of progress.
Management is accountable for the overall implementation of our Sustainability Framework and
Climate Action Plan, including climate change initiatives, and reports to the Board on a regular basis.
CEO AND GROUP MANAGEMENT
COMMITTEE (GMC)
Sustainable Aviation Fuel
(SAF) Futures Board
SAF Futures Board established to ensure
progress on targets and accelerate
investment decision-making, while
maintaining appropriate levels
of governance.
CORPORATE GOVERNANCE
The Qantas Board of Directors is responsible for ensuring that Qantas has an appropriate corporate governance framework to ensure
the creation, protection and enhancement of shareholder value. Key to this is responsible, ethical and sustainable business practices.
The Qantas Group is committed to complying with all applicable laws and regulations, and to conducting business with the
highest standards of ethics and integrity. We monitor global developments in governance, laws and business practices, and work
collaboratively across our global footprint to ensure we continue to meet these standards. The Qantas Business Practices provides
an overview of our beliefs, values and business practices and highlights the standards to be upheld by all employees.
Photo: In 2022, we relaunched the I Still Call Australia Home advertising campaign. Children from the choir are pictured in front of a national heritage listed hangar
near the Qantas Founders Museum in Longreach, Queensland.
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INTEGRATING ESG CONSIDERATIONS INTO THE QANTAS GROUP’S FINANCIAL FRAMEWORK
Qantas’ Financial Framework aligns our objectives with those of our shareholders. With the launch of the Qantas Group Climate
Action Plan in March 2022, an Environmental, Social and Governance (ESG) perspective has now been incorporated into the Financial
Framework, with the aim of targeting industry-leading ESG credentials and a maintainable Earnings Per Share (EPS) growth over
the cycle. This reflects the importance of ESG considerations in the Group’s target of achieving Total Shareholder Returns in the top
quartile of the ASX100 and among a basket of global airlines.1 The Financial Framework is built on three clear priorities and associated
long-term targets:
INDUSTRY LEADING ESG CREDENTIALS | MAINTAINABLE EPS GROWTH OVER THE CYCLE
TOTAL SHAREHOLDER RETURNS IN THE TOP QUARTILE
1. Maintaining an optimal
capital structure
Minimise cost of capital by targeting
a Net Debt target range of 2.0–2.5 x
ROIC2 EBITDA3
Deliver against
Climate Action Plan targets
2. ROIC > WACC4
through the cycle
Deliver ROIC > WACC
ESG included
in all business decisions
3. Disciplined Allocation
of Capital
Grow invested capital
with disciplined investment,
return surplus capital
Prioritise projects that exceed
both ESG and ROIC targets
1. Target Total Shareholder Returns within the top quartile of the ASX100 and global listed airline peer group as stated in the 2022 Annual Report, with reference
to the Long Term Incentive Plan 2. Return on Invested Capital 3. Earnings Before Interest, Tax, Depreciation and Amortisation 4. Weighted Average Cost of Capital,
calculated on a pre-tax basis
The changes to the Financial Framework recognise that achieving ESG outcomes will be critical to achieving our TSR targets
in the future.
— Pillar 1: Optimal Capital Structure
Core to Pillar 1 is minimising the cost of capital while preserving financial strength. Performance against the Group’s Climate
Action Plan will be critical to retain access to debt and equity capital at an efficient price in future.
— Pillar 2: Return on Invested Capital
(ROIC) is greater than our Weighted Average Cost of Capital (WACC). Core to Pillar 2 is investing to create competitive advantages
and drive value. Returns must explicitly consider all climate-related costs, including where appropriate, an internal carbon price.
Returns will need to consider all ESG costs, including the financial cost of carbon (e.g. through a carbon price) and physical
environment impacts.
— Pillar 3: Capital Allocation
Core to Pillar 3 is growing invested capital with disciplined investment and returning surplus capital to shareholders. Investment
in the business will prioritise those initiatives that deliver both ESG and ROIC outcomes and drive shareholder returns.
INTERNAL CARBON PRICE
We have incorporated a cost associated with decarbonisation into our business cases, starting with long-term fleet investment
decisions (such as projects Winton and Sunrise, which are detailed on page 20 of this Report). We see this as key to operationalise
our commitments under our Climate Action Plan, and to drive focus across the Qantas Group.
As part of that process, we have set an Internal Carbon Price which reflects our expected cost of decarbonisation based on our
secured deals in the market and our expectations for forward prices of SAF and offsets. As is the case with other input costs like
fossil fuel, the internal price is subject to change. Our expectation is that any incremental cost would be covered via revenue.
LINKING EXECUTIVE REMUNERATION TO OUR CLIMATE TARGETS
The Board has approved changes to our Annual Incentive Plan performance measures and targets that expand the existing
sustainability measures to include a climate-related performance measure in the FY23 Annual Incentive Plan (commencing 1 July
2022). More detail on the FY23 Annual Incentive Plan performance measures can be found in the Qantas Group’s 2022 Remuneration
Report (which forms part of the 2022 Annual Report). The FY23 Annual Incentive Plan performance measures and outcome will be
available in the Qantas Group’s 2023 Remuneration Report.
SUPPLY CHAIN GOVERNANCE
Our Supply Chain Assurance (SCA) program standardises the way we identify, assess and manage risks in the supply chain.
The ongoing application of SCA supports us in making determinations relating to suppliers’ standards, practices and management
across a range of risks. On this basis, suppliers are evaluated on their suitability to provide products or services to the Qantas Group.
The program applies a combination of questionnaires, due diligence and third-party data.
The SCA program has a focus on six key risk areas:
— Anti-bribery, corruption and sanctions
— Modern slavery including child labour/forced labour
— Illegal logging
— Workplace health and safety
— Privacy
— Cyber security, including data and credit card protection.
We seek to continually review the criteria we use to identify and assess supplier risk to ensure our methodology is reflective
of the shifting global environment. If material risks are identified, we will work with suppliers to remove the risks where possible,
or otherwise to substantially mitigate them.
The SCA program applies to new and re-contracting suppliers that are managed through the Qantas Group central procurement
system. In addition, we apply a risk-based approach to prioritising the assessment of our existing unassessed supplier base. Our
focus in FY23 is the assessment of those suppliers profiled as higher priority, based on key criteria including country and category
(nature of the goods and services).
We are committed to partnering with suppliers who share our commitment to compliance with the law and ethical business
practices. Our expectations are reflected in relevant contractual arrangements, the Qantas Group Compliance Statement,
Supplier Requirements and Qantas Group policies including Qantas Group Code of Conduct and Ethics, Supplier Code of Conduct
and the Qantas Group Business Practices Document. Our policies are developed with regard to relevant legislation and internationally
recognised standards such as the United Nations Universal Declaration of Human Rights.
DATA SECURITY AND PRIVACY
The aviation sector is dependent on data, systems and networks and we take our customers’ trust in the security of their personal
information seriously. The Qantas Group constantly improves our cyber capabilities as part of our overall data and privacy
protection approach.
Like many large organisations, we operate in an environment of ever-evolving cyber threats, where attackers continually adopt more
sophisticated techniques. We recognise that protecting data from these attacks — and the potential financial and public reputation
implications associated with unauthorised access to the information we hold — is key.
We are particularly focused on embedding a cyber safe culture so that cyber is part of the Group’s DNA. This includes articulating
clear cyber accountabilities at all levels of the organisation, as well as seeking to continually expand employee awareness of evolving
cyber risks, including through quarterly ‘no notice’ simulations and structured training to strengthen our ‘human firewall’. The need for
shared vigilance on cyber issues is supported by formal recognition of employees who demonstrate positive cyber safe behaviours.
Across the Group, we are responsible for handling a substantial amount of personal information. We collect, share, use, store and
process personal information in accordance with an ever-changing and increasingly complex landscape of both international and
domestic laws and regulations. We acknowledge our responsibility to protect and maintain the privacy rights of individuals, and to
maintain the security and the value of their personal information. Risk assessments are conducted on relevant third-party suppliers
and we work with them to address any material cyber and privacy risks identified.
We make ongoing investment to improve the resources, processes and technology that support the Group to effectively address
the volumes of personal information we manage, and to meet both intensifying regulatory requirements and individuals’ rising
expectations regarding fair, ethical and responsible data use. The Group is committed to raising awareness of our privacy compliance
obligations and to managing our privacy risk by implementing a culture that considers ‘privacy by design’ as a default position when
handling personal information.
Valuing
our planet
We are committed to minimising
our impact on the planet — in the
air and on the ground — so that
future generations can continue
to experience the wonder of travel.
This section of the Report highlights
how we are supporting the achievement
of five of the UN SDGs through our
focus on climate, energy, waste and
biodiversity. More information can
be found in the Report appendix.
Photo: In July 2022, we launched an advertising campaign using our airport channels aimed at raising awareness of Qantas’ investment in a net zero future
and protecting the future of travel. This is one of the images from the campaign.
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17
Climate action
OUR APPROACH
We recognise human-induced climate change is a significant issue for the aviation industry. We are committed to reducing our
emissions in line with the Paris Climate Agreement to limit warming to well below 2°C above pre-industrial levels, and pursuing efforts
to limit the temperature increase to 1.5°C above pre-industrial levels.
In 2019, we were the second airline in the world to announce our commitment to achieving net zero emissions by 2050 and capping
our net emissions at 2019 levels. In March 2022, we announced new emission targets as part of our Climate Action Plan (CAP),
including a 25 per cent reduction in net emissions from 2019 levels by 2030 as well as:
— 10 per cent sustainable aviation fuel (SAF) in fuel mix by 2030
— Average of 1.5 per cent fuel efficiency improvements to 20301
— Zero single-use plastics by 20272
— Zero general waste to landfill by 20303
25 per cent
reduction in
net emissions
from 2019 levels
by 2030
10 per cent of
sustainable
aviation fuel
(SAF) in fuel mix
by 2030
Average of 1.5
per cent per year
fuel efficiency
improvements
to 2030
Zero single-use
plastics by 20272
Zero general waste
to landfill by 20303
Qantas supports the Task Force on Climate-related Financial Disclosures (TCFD) and has used its recommendations framework
to structure this section of our Report. More detail on how the Qantas Group aligns with the TCFD recommendations can be found
in the Report appendix.
GOVERNANCE
The Qantas Group Board oversees and approves the strategic direction of the Group and the Corporate Governance Framework.
The Board annually endorses the Group’s Sustainability Strategy, which includes Qantas’ response to climate-related issues.
Various Board Committees are responsible for considering climate-related matters. These Committees include:
— Safety, Health, Environment and Security Committee (CHESS) — which assists the Board in fulfilling its strategy, policy, systems
oversight, monitoring and corporate governance responsibilities with regard to environmental matters, including compliance with
legal and regulatory obligations and risk management
— Audit Committee — which assesses the effectiveness of the Qantas Group’s enterprise-wide risk management and internal
controls framework, including for climate change risks.
The CAP details how we plan to meet our climate change targets. The Board approved the CAP, and CHESS reviews performance
against the plan at each meeting.
As climate change has wide-ranging implications for our business, responsibilities for managing and mitigating climate-related risks
are Group-wide.
INTEGRATING CLIMATE CHANGE CONSIDERATIONS INTO THE GROUP’S FINANCIAL FRAMEWORK
To help us progress towards our climate targets, we have updated the Group’s Financial Framework to encourage, where appropriate,
the consideration of climate-related factors when making investment decisions. More detail can be found on page 12.
STRATEGY
The Qantas Group’s long-term strategy acknowledges the potential impact of climate change and resource constraints on the
business. Climate-related risks and opportunities are also addressed in the Qantas Group’s CAP launched in March 2022.
CLIMATE ACTION PLAN
Three pillars support the achievement of our interim targets as detailed in the CAP:
— Operational and fleet efficiency: Embracing new, lower emission technology with each new generation of aircraft and ultimately
zero emission technology (including hydrogen propulsion, hydrogen fuel cell and electrical powered aircraft) as it becomes
available. Continuing to reduce fuel burn, including smarter flight planning. Reducing single-use plastic and waste to landfill.
— Sustainable aviation fuels (SAF): Working with governments, industry and business to develop a commercial-scale, competitive
SAF industry in Australia. This relies on creating SAF from various biomass sources such as used cooking oil, energy crops,
forestry residues or waste materials that can power our existing fleet and reduce emissions on a lifecycle basis, typically by up
to 80 per cent. It also includes advancing non-biogenic, synthetic SAF produced with carbon dioxide, hydrogen and significant
amounts of renewable electricity power-to-liquid technology pathways.
— Carbon offsets: Offsetting emissions by investing in high-quality, high-integrity Australian and international projects
with community co-benefits, including those led by Traditional Owners.
Climate action strategy
ENABLERS
Governance
Capital allocation
(financial framework and
internal carbon price)
Climate risk
and policies
Executive
remuneration
Empowering
employees
Transparent
data and
reporting
Supply chain/
procurement
Customer engagement Catalytic partnerships Industry and
External levers government advocacy Investor engagement
Institutionalising
climate
considerations
across the Group
AMBITION
Targets1
Objective
Decarbonisation
pillars
Reduce carbon emissions by 25 per cent by 2030 (from 2019 levels)
Reach net zero emissions by 2050
Invest in SAF to enable:
— 10 per cent SAF in fuel mix
by 2030
— ~60 per cent by 2050
— Reduce environmental footprint
by increasing operational and
fuel efficiency by an average
of 1.5 per cent p.a. to 20302
— Zero single-use plastics by 2027
— Zero waste to landfill by 2030
— Work with industry on step
change technology
Invest in high-quality,
high-integrity carbon removal
and avoidance projects across
our network
Operational and
fleet efficiency
Sustainable aviation
fuels (SAF) Carbon offsets
ACTIONS
INITIATIVES
Invest US$100m in SAF
domestic production
Customer experience — develop sustainable options for customer products and service
e.g. bamboo stirrers and compostable cups for hot liquids
Invest in high-quality, highintegrity offsets and Aboriginal
and Torres Strait Islander flagship
Australian projects
Continue growth in Fly Carbon
Neutral uptake
FlightPulse (pilot flight analytics)
Constellation flight planning
Fleet modernisation:
narrow body fleet renewal
100 per cent renewable
electricity to power all domestic
Qantas Group buildings
Research partnerships to drive
next generation technologies
(electric aircraft, hydrogen)
Ground transport
Develop SAF corporate program
Offshore SAF deals
e.g. London and California
Continue to assess SAF
investment opportunities
1. Progress towards targets to be reviewed annually.
2. An average of 1.5 per cent per annum fuel efficiency improvement starting from 2023, baselined to 2019.
1. An average 1.5 per cent per annum fuel efficiency improvement starting from 2023, baselined to 2019.
2. Excludes items required for medical or health and safety reasons.
3. Excludes quarantine waste, a highly regulated and specialised waste stream with limited waste diversion pathways. All waste associated with international
ports (inbound and outbound) is treated as quarantine waste.
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QANTAS SUSTAINABILITY REPORT 2022
19
GROUP EMISSIONS PATHWAY
CO2-E EMISSIONS, MILLION TONNES
0
FY19 FY25 FY30 FY35 FY40 FY45 FY50
Frozen
fleet
Fleet
renewal
Operational
benefits
Future
propulsion
systems
SAF
Carbon
offsets
6 4 2
10
12
8
16
18
14
20
1
3
CO2-e
gross
emissions
2
CO2-e
net
emissions
PATHWAY TO NET ZERO EMISSIONS
BY 2050
• Increase our operational and fuel
efficiency (estimated contribution to
total reduction in 2030 of 20-25 per
cent and 30-40 per cent in 2050)
• Invest in domestic and international
sustainable aviation fuels (estimated
contribution to total reduction in 2030
of 20-25 per cent and 30-40 per cent
in 2050)
• Supplement with high-integrity,
high-quality carbon offsetting projects
across our network (estimated
contribution to total reduction in 2030
of 50-60 per cent and 30-40 per cent
in 2050)
Note: The Pathway is by its nature
indicative, and will evolve as our fleet
strategy, markets and technologies
evolve. We have included ranges
1 FY30 SAF target: 10% to reflect this.
KEY
2 FY30 net emissions to FY19: -25% 3 FY50 SAF target: ~60%
CLIMATE SCENARIO ANALYSIS
The Group undertook our first climate scenario analysis
in 2019 in line with the recommendations of the TCFD.
In FY22, we updated this analysis to reference updated
climate data, developments in the business, progress
in technology and fuel availability as well as regulatory
changes. The analysis considered both transition
and physical risks and opportunities for the business
under different scenarios and provided a preliminary
assessment on the financial implications of these risks.
The analysis was based on scenarios aimed at improving
our understanding of the risks and opportunities arising
from climate change. The results of the analysis
will help inform development of future strategy
and mitigation plans.1
TRANSITION RISK
Four climate scenarios were developed to analyse
the transition risks and opportunities to the business.
The scenarios were:
— Ambitious: where emissions will result in less
than 2°C target and industries decarbonise faster
than expected
— Committed: where emissions are on track to meeting
the 2°C target
— Delayed: where emissions are expected to overshoot
the 2°C target as a result of a disorderly transition
— Slow: where emissions are expected to overshoot
the 2°C target as a result of slow transition.
These four scenarios, with differing policy and economic
settings including the pace of developing a SAF industry
in Australia, were applied to the Group’s emissions
trajectory. Under each scenario we assessed required
progress on SAF, offset contributions and other levers
required to meet our CAP targets and manage climate
risk exposure to the business.
PHYSICAL RISK ASSESSMENT
The physical risk assessment considered three
Intergovernmental Panel on Climate Change (IPCC)
scenarios, at domestic and select international ports.
These scenarios were:
— Representative Concentration Pathway (RCP)
2.6 – <2°C low warming, unlikely
— RCP 4.5 – >2°C moderate warming, most likely
— RCP 8.5 – >4°C highest warming, worst case
Changes in the frequency and intensity of different
climate events to 2100 were modelled based on these
three global scenarios. These changes were then applied
to Group historic weather delay and cancellation data
from all domestic ports to assess changes in operational
conditions. Key physical risk findings included a 15 per
cent increase in weather-related disruptions by 20502,
driven largely by more frequent thunderstorms and days
above 37.5°C. Analysis also revealed that the physical
climate change risks are highly site specific, determined
by geographic location and existing infrastructure.
1. Scenario analysis does not provide an indication of probable outcomes and it relies on assumptions that may or may not prove to be correct or eventuate.
2. Under IPCC Representative Concentration Pathway 4.5.
The table below details some of our key climate risks, and the mitigations and opportunities relative to each risk.
TRANSITION RISK
Risk Mitigation
Policy and regulatory changes
Changes to climate-related regulations to accelerate the transition
including introduction of a carbon price, expansion of taxes, and/
or barriers on high emitters
Potential financial risk
• Increased costs of compliance, likely through the procurement
of offsets where decarbonisation is not possible
• Releasing CAP detailing emissions reduction including through
increased fuel and operational efficiency measures, fleet renewal
and uptake of SAF
• Continuing engagement with government and regulators on climate
change policy and impacts on hard-to-abate sectors such as aviation,
including incentives to develop a SAF industry in Australia
Evolving stakeholder expectations
Consumer demand shifting towards low carbon transport
Investor appetite for transparent and meaningful action
on climate change
Potential financial risk
• Reduction in revenue from flying. Reduced access to capital,
increasing costs of capital
• Releasing CAP outlining our strategy and targets for 2030, including
initiatives supporting our pathway to net zero emissions by 2050.
Designed to meet customer and investor expectations, while also
mitigating our broader transition and physical risks.
• Communicating progress against targets — including through aligning
our reporting to the TCFD
• Continuing to engage customers and investors to align on expectations
SAF
Market supply develops slower than projected potentially impacting
high demand from customers and achievement of SAF targets
Potential financial risk
• Increased cost of SAF
• Greater need to procure high-integrity offsets to meet
targets and/or compliance needs
• Working with Government and our supply chain to stimulate supply
and demand (pages 22-24 of this Report). Includes our commitment
to invest US$100 million to develop a domestic SAF industry
• Continuing to assess potential partnerships and offtake
opportunities to secure early access to supply
• Forming an alliance of ‘forerunner’ corporates, freight customers
and governments to stimulate SAF demand
• Taking future supply positions out to 2028-30 where possible,
to reduce supply risk and undertake due diligence on supply
agreements to include review of feedstock requirements
• Developing SAF certificate solution to maximise value,
traceability and transferability of Scope 3 emissions reduction
Offsets
Exposure to volatile offset market spot prices
Potential financial risk
Increased cost of high integrity offsets
• Working to mitigate our exposure by investing directly in carbon
offset projects and undertaking strategic forward purchasing
of high-integrity offsets
Unintentionally purchasing offsets that do not align
with shifting regulatory standards and expectations
Potential financial risk
• Reduced revenue from flying if it was to impact demand
• Procuring offsets from carbon projects accredited by verified
registries and working closely with offset suppliers to verify
the quality of purchased credits
• Working with third-party ratings agency to develop an enhanced
due diligence assessment framework.
Cumulative transition
Collective risk of a less supportive policy, economic
and technology transition to a low-carbon future
Potential financial risk
• Higher than expected gross cost exposure associated
with meeting CAP targets and climate-related
regulatory requirements
• Working with government to encourage and support increased
production of SAF in Australia as well as a Jet Zero Council
to accelerate the transition to low-carbon flying
• Engaging original equipment manufacturers on improving aircraft
fuel efficiency, supporting greater SAF blend rates, developing next
generation technologies
• Developing sustainability focused solutions to encourage customers
to participate in shared emissions reduction
PHYSICAL RISK
Extreme weather events
If global climate change exceeds an average annual temp increase
of more than 2 degrees (RCP4.5), weather related disruptions
are expected to increase by 15 per cent by 2050, driven largely
by a 40 per cent increase in thunderstorm disruptions
• Reflecting physical climate risks in operational processes (such
as in the case of a cyclone, thunderstorm or high temperature day)
and employee training
• Planning to incorporate physical climate risks assessments into
new business cases for certain assets and equipment as well as
assessing existing capital assets and equipment to withstand
climate risks over their useful life
If global climate change exceeds an average annual temperature
increase of more than 4°C (RCP8.5), both thunderstorms and hot
days (above 37.5°C) will increase significantly, especially from
2040 onwards
Potential financial risk
• Increased weather-related disruption costs due to operational
and equipment limitations
Safety
Health and safety risks associated with incremental changes
in climate variables and extreme weather events
Potential financial risk
• Exposure to increased safety incident cost and reduced
revenue due to lower safety record
• Adapting processes and systems to expected
changes in climate variables to support safety
and customer experience
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QANTAS SUSTAINABILITY REPORT 2022
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CLIMATE ACTION PLAN PILLAR ONE: OPERATIONAL AND FLEET EFFICIENCY
In March 2022, the Qantas Group launched our CAP which included the target to improve fuel efficiency by an average 1.5 per cent
per year1 through to 2030 from a 2019 baseline.
In FY22, Qantas achieved a fuel efficiency of 51 L / 100 RTK. While this is a decrease from FY21 it was higher than the long term
average and 41 per cent above the 2019 baseline of 36.2 L / 100 RTK. This was as a result of Qantas Group’s fuel efficiency being
adversely impacted by international and domestic border closures and restrictions, reduced flying activity and passenger aircraft
operating without passengers to support international freight movement.
In the air
To support our fuel efficiency ambitions, Jetstar’s fleet renewal commenced in July 2022 with the introduction of the first of 18
Airbus A321 New Engine Options (NEOs)-LR aircraft, about 15 per cent more fuel efficient than the fleet operating today. These
aircraft will be used to replace a portion of Jetstar’s fleet over the next two years in the domestic and short haul international (Bali,
Fiji) markets. This is the first tranche of aircraft in a longer-term strategy to replace Jetstar’s existing narrow body fleet with up to 99
NEOs over the next 10 years. In addition, 20 of Jetstar’s existing A320NEO orders will be converted to A321XLRs for delivery from the
second half of calendar year 2024. Jetstar’s fleet renewal will contribute significantly to the Qantas Group’s decarbonisation strategy
over the next decade.
In May 2022, the Qantas Group announced several major fleet decisions that will reshape our international and domestic networks.
Domestically, Qantas will start the renewal of our narrow body jets as part of ‘Project Winton’ with orders for 20 Airbus A321XLRs
and 20 A220-300s as our Boeing 737s and 717s are gradually retired. The first of these aircraft will arrive in late 2023, with the order
including options for a further 94 aircraft for delivery through to at least 2034.
Internationally, 12 Airbus A350-1000s have been ordered to operate non-stop carbon neutral ‘Project Sunrise’ flights from Australia
to global cities, including New York and London, with services from Sydney scheduled to start by the end of the 2025 calendar year.
The Airbus A350 complements the efficient Boeing 787s which the Group continues to introduce into its long haul fleet.
These next generation aircraft have lower emissions, longer range and produce less noise. The newer aircraft and engines will reduce
emissions by at least 15 per cent if running on fossil fuels.
Other operational efficiency tools include:
— Constellation Flight Planning System — In 2018, the Qantas Group launched a cloud-based flight planning system, Constellation,
that models thousands of flight paths across millions of data points to determine the optimal fuel plan and best route, accounting
for time, aircraft capability, weather and external constraints such as closed airspace or ash clouds.
— FlightPulse — a flight data application developed in partnership with GE Aviation, used by Qantas Group pilots since 2017.
FlightPulse provides tailored flight analytics to pilots around fuel efficiency, providing data to help them fly more efficiently
and help reduce carbon emissions. FlightPulse was designed by pilots, for pilots, providing access to data like never before.
On the ground
While emissions on the ground are a relatively small part of our total emissions profile, we are seeking to further reduce our footprint.
Through our partnership with BP Lightsource we have committed to increasing our procurement of renewable electricity, purchasing
large-scale generation certificates (LGC) from the Wellington solar farm in Wuuluman, New South Wales. In calendar year 2021
we purchased and retired LGCs for 50 per cent of our electricity consumption for all Qantas Group buildings in Australia. Since the
beginning of 2022 we have sourced LGCs for 100 per cent of the electricity consumption for all Qantas Group buildings in Australia,
with these certificates due to be retried in February 2023.
We have also continued to work to reduce our ground fuel emissions through transitioning motorised ground service equipment (GSE)
to electric alternatives. Approximately 14 per cent of Qantas Airways and Freight motorised GSE are now electric powered.2
Our focus in FY23 will include:
— Our long-term renewable electricity strategy, including finding renewable sources for our overseas energy
consumption and long-term domestic supply, including onsite renewable sources
— Exploring further electrification of our GSE
— Continuing to develop tools that enable behavioural change and greater operational efficiency
— Exploring partnerships to accelerate research and development of new flying technologies such
as battery-electric and hydrogen fuel cell powered.
1. Under IPCC Representative Concentration Pathway 4.5.
2. Includes Qantas Group owned and operated GSE across
Qantas Airways, QantasLink, Engineering and Qantas Freight.
Excludes all Jetstar, third-party and non-motorised GSE.
Photo: Jetstar celebrates the arrival of the first Airbus A321NEO LR aircraft
in Melbourne on 31 July 2022.
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QANTAS SUSTAINABILITY REPORT 2022
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CLIMATE ACTION PLAN PILLAR TWO: SUSTAINABLE AVIATION FUELS
The use of sustainable aviation fuels (SAF) is central to achieving our interim targets and net zero by 2050 goal. With long haul
routes accounting for the majority of the Group’s emissions profile, SAF is currently the only viable technology/decarbonisation
option available across all of our operations. Our target is for 10 per cent of our fuel use to come from SAF by 2030 and ~60 per cent
by 2050. The risks around our SAF strategies are set out in the climate risk management section on page 19.
The use of SAF is increasing globally — particularly in Europe, the UK and the US — as governments and industry work together to find
ways to steadily decarbonise the aviation sector through government fuel subsidies, SAF blending mandates, financial incentives
(e.g. capital grants, loans, tax incentives) and additional project-based funding.
In December 2021, Qantas became the first Australian airline to purchase SAF on an ongoing basis which is being delivered at London
Heathrow Airport. Since then, Qantas has acquired 3.2 million litres of SAF at London Heathrow for FY22, representing approximately
7,200t of abated CO2-e. The SAF will represent (by volume) up to 15 per cent of our annual fuel needs out of Heathrow Airport,
reducing carbon emissions by up to 10 per cent on this route, based on 2019 volumes from London Heathrow.
In March 2022, the Qantas Group entered into an agreement to purchase SAF for delivery in California (Los Angeles/San Francisco)
from 2025. We will continue to look for opportunities to purchase SAF from international ports, particularly in the US, to support our
target of 10 per cent SAF in our overall fuel mix by 2030.
What is SAF?
SAF is non-conventionally derived aviation fuel that can
be made from sustainable biogenic sources such as
used cooking oils, council waste, plant oils, agricultural
residues and non-biological sources.
Biogenic SAF has the potential to reduce emissions
on a lifecycle basis, typically by up to 80 per cent
compared with conventional jet fuel. Non-biogenic SAF
— or synthetic fuel — is a pathway which utilises carbon
dioxide, hydrogen and significant amounts of renewable
electricity to synthesise a liquid fuel with favourable
sustainability characteristics (emissions are reduced
on a lifecycle basis by up to 90 per cent compared
to fossil fuels).
In addition to the reduction of total life cycle CO2
emissions, SAF reduces direct emissions: particulate
matter by up to 90 per cent and sulphur by 100 per
cent, compared with conventional jet fuel. Reducing
these emissions improves local air quality, particularly
in areas with a high density of flight movements, such
as airports.
The key SAF production pathways are set out below.
Electrolysis
Feedstock
Inital
processing
Biofuels
Synthetic
fuels
Pathway
Key
intermediate
Pre-treatment
Pre-treatment
Oil extraction
Separation
Gasification
Syngas
FischerTropsch
(FT)
Fermentation
Fermentation
Fermentation
Hydrocarbons Isobutanol
Hydroprocess
fermented
sugars
to synthetic
isoparaffins
(HFS-SIP)
Alcohol to jet
(ATJ)
Oil extraction
Neutralisation
Neutralisation
Rendering
Lipids
Hydroprocessed
esters and
fatty acids
(HEFA)
Catalytic
hydrothermolysis
jet (CHJ)
Agricultural energy Forestry energy Energy crops Waste Algae Cooking oil Plant oils Tallow Sugar cane Molasses Corn
Direct air capture
CO
2
Renewable energy
Hydrogen
Developing a local SAF industry
Given the Qantas Group sources 70 per cent of our fuel in Australia, we recognise the important role we can play in developing
a domestic SAF industry by committing to SAF volumes and supporting a portfolio of local projects to increase SAF supply.
Currently, due to the lack of a local commercial-scale SAF industry, Australia is exporting millions of tonnes of feedstock every year,
to be made into SAF in other countries. We recognise the urgency to support a domestic SAF market given the long timeframes to
commercialisation. Without government support, Australia’s SAF ecosystem risks scaling insufficiently, potentially leaving Australia
as a major importer of sustainable liquid fuels and further compounding our sovereign fuel security risks.
The adoption of supportive government policies, such as sector-wide policy guidance, financial incentives through rebates, mandates
and tax incentives that narrow the SAF premium compared to conventional jet fuel, will result in airlines, producers and investors
having the confidence to commit to the volumes necessary to provide ongoing support for development of a domestic SAF sector
that will be critical to Australia’s aviation industry.
Overseas experience has demonstrated that establishing a government and industry-led body, such as the UK’s Jet Zero Council,
has accelerated the development and implementation of potential SAF policy levers. These include fuel subsidies, SAF blending
mandates, financial incentives such as capital grants and loans as well as tax incentives, in addition to project-based funding, that
are required to overcome the initial challenges of the emerging domestic SAF industry.
The Qantas Group continues to work with government on the policy pillars which will enable the development of a domestic
SAF market. On 14 July 2022, the Minister for Infrastructure indicated that the government intended to establish an Australian
Jet Zero-like council.
We are also exploring partnerships with other stakeholders, such as corporate customers and airports, to build the domestic SAF
industry and support our interim SAF targets.
In June 2022, Qantas announced a US$200m joint investment partnership with Airbus to accelerate the establishment of a SAF
industry in Australia. The Australian Sustainable Aviation Fuel Partnership (ASAFP) will invest in locally developed and produced SAF
and feedstock initiatives. Projects must be commercially viable and meet a strict set of criteria around environmental sustainability.
The partnership is initially for five years with options to extend. Qantas’ financial contribution to the ASAFP includes AU$50 million
previously committed to research and development of SAF in Australia.
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QANTAS SUSTAINABILITY REPORT 2022
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OUR SUSTAINABLE AVIATION FUEL JOURNEY
2012
First
domestic test
flights using
blended SAF
First USAustralia
biofuel flight
using blended
SAF made from
mustard seeds
SAF Alliance
for Australia
and NZ
launched
Commits
to net zero
emissions
by 2050
Purchases
blended SAF
for Kangaroo
Route flights
Launches landmark
investment
agreement
with Airbus to
develop Australian
SAF industry
Signs deal for
blended SAF out
of Californian
ports from 2025
Target for
10% SAF use
in fuel mix
2018 2019 2021 2022 2030
Our focus in FY23 will include:
— Continuing our advocacy for a domestic SAF industry
— Assisting the establishment of a UK-style Jet Zero Council and operationalising the Australian SAF Partnership
with Airbus
— Ensuring the Group can access supply to cost-effective SAF and high-quality offsets aligned to our strategy
— Maximising the amount of subsidised SAF we acquire at international ports, particularly in the US
— Piloting a new program to enable participating corporate, government and freight customers to contribute
to the purchase of SAF and also reducing Scope 3 emissions associated with employee travel and freight.
We are exploring whether a value proposition could be extended to individuals as part of an expansion of our
existing Fly Carbon Neutral program.
CASE STUDY
Wheatbelt project in Western Australia
In March 2022, INPEX, ANZ and Qantas entered into a Memorandum of Understanding to investigate a wheatbelt
project involving the development of a large-scale, native reforestation process to support land care solutions
and integrated carbon farming in Western Australia. The project also includes an investigation into a renewable
biofuel business integrated with sustainably harvested native biomass and agricultural waste residues for the purpose
of producing a low carbon intensity biofuel, such as SAF.
CLIMATE ACTION PLAN PILLAR THREE: CARBON OFFSETS
The Qantas Group has invested in carbon offset projects since 2007. Our carbon offset portfolio reflects the strategic priorities of the
Qantas Group, with our projects supporting positive environmental, social and economic outcomes in Australia and internationally.
Our program reflects our commitment to support Aboriginal and Torres Strait Islander and flagship Australian projects such as our
long-standing partnership with the North Kimberley Fire Abatement Project (NKFAP). This program employs Aboriginal and Torres
Strait Islander rangers in Northern Australia, who use traditional practices to promote regeneration of native vegetation.
The quality and integrity of carbon offsets is an important focus for Qantas, particularly in the context of the Australian Government’s
recently announced review of the integrity of the Australian Carbon Credit Units (ACCUs) scheme by an independent panel. Ensuring
that the Group’s carbon offset portfolio is of a higher quality and has integrity is a key investment consideration. The carbon offsets
sourced by the Group are subject to several layers of scrutiny. As a baseline, all projects are accredited from verified registries. Our
ACCUs are certified by the Clean Energy Regulator and Climate Active, while international projects are certified under the UNFCCC’s
Clean Development Mechanism. Our providers subject all projects to additional layers of due diligence such as continual validation
and other monitoring processes throughout the life of each project. The Group intends to investigate methods in which it can further
strengthen the integrity and transparency of our carbon offset portfolio.
A transparent and credible Australian carbon market is critical to ensuring its ongoing effectiveness and continued support from
participants, purchasers and the broader community. The Australian Government’s review into the operation and integrity of these
markets will be observed closely by the Qantas Group, particularly:
— findings on the integrity of key methods, and
— measuring the extent to which carbon projects are supporting positive environmental, social and economic outcomes
for agriculture, biodiversity and the participation of Aboriginal and Torres Strait Islander peoples.
The development of our carbon offsetting strategy has been a critical addition to support the Group’s commitment of net zero
emissions by 2050.
Our focus in FY23 will include:
Diversification of environmental solutions
— The Group is extending our focus beyond the exclusive lens of carbon emissions and towards natural capital,
including our ocean’s water quality, ecosystems and biodiversity
Enhancing assessment of carbon offset opportunities
— It is our primary focus to procure and invest in carbon projects that are accredited by verified registries. Working
with our partners and rating agencies, we plan to develop an in-house due diligence assessment framework to
ensure an enhanced disciplined governance approach to the Group’s carbon offset portfolio.
Maintaining focus on current programs
— Fly Carbon Neutral
• Our Fly Carbon Neutral offsetting program is one of the largest of any airline. As a hard-to-abate sector,
carbon offsetting will remain a key lever in aviation’s global transition to a low carbon economy and in helping
the Qantas Group meet our CAP commitments and reaching net zero emissions by 2050.
• To incentivise offsetting, in 2019 we enabled Qantas Frequent Flyer members and Qantas Business Rewards
customers to earn 10 Qantas Points for every dollar spent in the Fly Carbon Neutral program. Qantas also
matches dollar-for-dollar every contribution a customer makes to offset their emissions on a passenger flight,
doubling the scale of the program.
— Qantas Future Planet
• Since 2014, we have partnered with other leading businesses to decarbonise by offsetting emissions through
our B2B Qantas Future Planet program. Future Planet provides a solution for businesses wanting to offset
their operational or unavoidable emissions to reduce their environmental impact. We have built a network
of sustainability leaders inspiring new ideas through collaborative innovation and action. Through our Future
Planet program we have offset emissions for more than 40 businesses, including Australia Post, Allens, DHL,
Holcim, NextDC and T2.
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CLIMATE RISK MANAGEMENT
The Qantas Group has identified climate change as a material business risk, as detailed in our Annual Report. These risks are an
inherent part of the operations of an airline and are managed by undertaking scenario analysis, enhancing governance, technology,
operational and market-based controls, including proactive consideration of how changing factors (including global climate policies
and stakeholder expectations) impact the proximity of climate-related risks.
The frequency with which the Board is informed about climate-related issues depends on the significance of the specific risk
(opportunity or threat). Notable enterprise risks, including those related to sustainability, are included in the Group Risk Report which
is provided to the Audit Committee and CHESS on a six-monthly basis. Climate-related risks that may impact the Group over the
coming three to 10-year period are captured in the Group Long Term Risk Management section of the Group Risk Report.
METRICS AND TARGETS
In 2019, the Qantas Group was one of the first airlines to commit to net zero emissions by 2050. In March 2022, we launched our CAP
and interim target to 2030:
— 25 per cent reduction in net emissions from 2019 levels by 2030
— 10 per cent SAF in fuel mix by 2030
— Average of 1.5 per cent fuel efficiency improvements to 2030
— Waste targets as detailed on page 16 and 27.
The Qantas Group reports on Scope 1, 2 and 3 greenhouse gas emissions annually. In relation to Australian domestic emissions,
we report in accordance with the Australian Government National Greenhouse and Energy Reporting Scheme. International
emissions are reported in accordance with the International Civil Aviation Organization Carbon Offsetting and Reduction Scheme
for International Aviation.
Aviation fuel, which makes up a majority of our emissions, has consistently accounted for more than 97 per cent of Qantas Group’s
Scope 1 and 2 emissions. The remaining three per cent relates to our ground-based emissions sources, the largest of which is
electricity (Scope 2).
Indirect Scope 3 emissions from our value chain are monitored and reported using Climate Active guidance, aligned with Greenhouse
Gas Protocol categories. Applying a test for relevance, we report on a range of indirect emissions, detailed on page 60, with the
largest being extraction, production and transport of fuels which is addressed through operational and fleet efficiency measures.
Additionally, programs such as our waste reduction initiatives support the reduction of Scope 3 emissions.
In FY22 our Scope 1 emissions were 4,734,407, up from 3,236,753 in FY21 as a result of our ongoing recovery from COVID-19.
In FY22 our Scope 2 emissions were 64,854, down from 64,983 in FY21.
TONNES (,000,000)
SCOPE 1
Aircraft fuel (domestic)
Aircraft fuel (international)
Ground fuels
SCOPE 3
Other
Electricity
SCOPE 2
8 6 4 2 0
10
12
14
16
FY19 FY20 FY21 FY22
Reducing waste through circularity
OUR APPROACH
With over 50 million passengers flying with us every year, the Qantas Group deals with more than 30,000 tonnes1 of total waste
annually. We recognise the impact waste has on the environment and as a Group we are committed to addressing this impact
through waste reduction initiatives, innovation and improved waste management.
Since 2011, the Qantas Group has been a signatory to the Australian Packaging Covenant, working to improve the sustainability
of the packaging we use.
WASTE REDUCTION
In FY19, we committed to reducing 75 per cent of Qantas Group onshore waste to landfill (including quarantine) by 2021, as well
as the removal of 100 million single-use plastic items.
In March 2022, we affirmed this commitment in our CAP, announcing two new waste targets:
— Zero single-use plastics by 20272
— Zero general waste to landfill by 20303
COVID-19 caused unprecedented disruption to our network activity and required additional measures to protect the health
and safety of our customers and employees, such as the introduction of our Fly Well packs.
COVID-19 health and safety requirements, introduced from March 2020, meant we had to temporarily pause some of our initiatives.
As our business recovers, we have continued to work with our suppliers to embed sustainable design into the products and services
we provide, while maintaining the quality our customers expect. This includes replacing plastic items with compostable alternatives,
sourcing products made with recycled materials and implementing initiatives to remove plastic packaging. This can be seen in recent
changes to key products we provide in our inflight and lounge services.
These initiatives, among others that are being rolled out across our network, have contributed to the removal of over 29 million
single-use plastic items during FY22 and 94 million items since 2019. We expect to achieve our 2019 single-use plastic target
by 2023.
As part of our focus on waste reduction, we are working with our employees, suppliers, customers and State and Federal
Governments to drive waste reduction initiatives, including:
— Waste minimisation through more efficient inflight and ground operations
— Introducing innovative product and packaging alternatives targeted at removing single-use plastics and reducing waste to landfill
— Expanding waste material recovery pathways, including recycling, processing of organic material treatment and exploring waste
to energy.
Our focus in FY23 will include:
— Working to increase the removal and substitution of single-use plastics across not only our inflight and lounge
services, but our broader Qantas Group operations
— Working with our employees, suppliers and waste service providers to implement improved waste elimination
and diversion initiatives to reduce waste to landfill, in line with our 2030 target. This includes addressing difficult
to recover waste streams from our engineering and freight operations as well as improved collection, treatment
and processing of recyclable and organic waste.
1. Based on 2018 data.
2. Excluding items required for medical or health and safety reasons.
3. Excluding quarantine waste, a highly regulated and specialised waste stream with limited waste diversion pathways. All waste associated with international
ports (inbound and outbound) is treated as quarantine waste.
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Protecting nature through sustainable tourism
OUR APPROACH
Sustainable tourism is about being mindful of the current and future economic, social and environmental impacts of tourism
and aims to address the needs of visitors, the industry, the environment and host communities. Our approach is to ensure travel
and aviation continue to co-exist in the long term, by committing to reduce our own carbon footprint (as detailed on pages 16 to 27)
and encouraging travellers to reduce their carbon footprint while protecting and preserving tourism resources.
SUSTAINABLE TOURISM
In July 2022, we started to raise awareness of Qantas’ investment in a net zero future by utilising our airport channels. We are also
launching a series of educational videos featuring industry experts answering common customer questions and providing more
information on our sustainability programs across SAF, carbon offsetting, waste and fleet.
By investing in sustainable
aircraft and aviation fuel
Protecting the future of travel
for little flyers
Join us in creating one of Australia’s
largest carbon offsetting programs
Protecting the future of travel
for wild adventurers
By eliminating waste
and single-use plastics
Protecting the future of travel
for underwater explorers
Become a Green Tier Frequent Flyer and
be rewarded for making sustainable choices
Protecting the future of travel
for tomorrow’s innovators
NATURAL CAPITAL AND BIODIVERSITY
Australia’s unique natural environment and biodiversity are key assets for the Qantas Group and Australian tourism, and we
understand our responsibility to ensure these ecosystems are not degraded. More than half the world’s economy is dependent
on nature and we are exploring the risks and opportunities this presents for us.
Our programs and initiatives to support biodiversity and natural capital include the three pillars of our CAP; as detailed on pages 20
to 25; and our focus on waste reduction and material recycling as detailed on page 27.
We recognise the work of the Task Force on Nature-related Financial Disclosures (TNFD) which is developing a risk management
and disclosure framework for organisations to report and act on evolving nature-related risks to support nature-positive
outcomes. The TNFD is expected to release its final report in 2023. We will continue evolving our approach to valuing nature as the
recommendations of the TNFD are developed and as we explore innovative solutions that address and reduce our impact on nature.
OPPORTUNITIES
Investing in projects with
co-benefits for nature
RISKS
Unsustainable feedstock/
underutilised renewable
resources
Sustainable
aviation fuel
OPPORTUNITIES
Sustainable tourism
RISKS
Degradation of
Australian environment
OPPORTUNITIES
Invest in protecting the
Australian environment through
credible, nature-based solutions
RISKS
Challenges in valuing nature
OPPORTUNITIES
Reducing the impact
of our operations
RISKS
Land contamination
from operations
Australian
tourism
Offsetting
strategy
Airports and
ground operations
NATURAL CAPITAL
Can be defined as the world’s stocks of natural assets which include geology, soil, air, water and all living things.
Our focus in FY23 will include:
— Working with partners to introduce new initiatives to promote purposeful tourism as part of our overall
tourism strategy
— Developing a natural capital and biodiversity framework and strategy, focusing on areas where Qantas has the
highest impact and influence. Qantas will review the recommendations from the TNFD1 which is currently in draft.
The strategy will be informed by the materiality of our nature-related impacts and dependencies and will address
risks and opportunities for nature positive outcomes.
1. The Taskforce on Nature-related Financial Disclosures is a group of organisations across industry, government and NGOs established to develop a risk
management and disclosures framework for organisations to manage and report on nature-related risks.
Customer engagement: Green Tier
In November 2021, Qantas was the first airline globally to announce a recognition and rewards initiative designed to encourage and
recognise Frequent Flyer members to make more sustainable choices in the air and on the ground. Green Tier officially launched on
8 March 2022, and is aimed at educating, encouraging and rewarding the 14 million Australian Frequent Flyer members for a range of
activities including offsetting their flights, staying in eco-hotels and installing solar panels at home.
The initiative has been driven by feedback from members, with research showing almost two-thirds want to be more aware of their
impact on the environment and would like support in their efforts to be more sustainable.
To achieve Green Tier, members need to complete at least five sustainable activities each year across six areas: flying, travel,
lifestyle, sustainable purchases, reducing impact and giving back. Once achieved, members are rewarded with benefits such as
bonus Qantas Points or status credits, access to exclusive events and initiatives, and the ability to earn Qantas bonus points when
purchasing eligible sustainable products or experiences. These benefits are in addition to the rewards and status they receive under
their existing flying tiers.
More than 200,000 members engaged with activities related to Green Tier in the first three months since launch. Green Tier members
are split evenly across all flying tiers. In the last three months, the number of members donating to sustainable charities has trebled,
with the amount donated doubling.
Our focus in FY23 will include:
— Making it easier for members to offset their flights, including an opt in to offset every flight purchased
— Working with our partners to expand the areas where members can complete sustainable activities
and support behavioural change
— Organising events for members who have achieved Green Tier to recognise their contribution and provide
additional education.
Achieving Green Tier
COMPLETE ACTIONS IN 5 OUT OF 6 CATEGORIES
OFFSET FLYING
Offset a flight booked on Qantas.com
Contribute to SAF
GIVE BACK
Contribute to a sustainability
organisation or project
REDUCE YOUR IMPACT
Take our impact quiz to learn how
CHOOSE SUSTAINABLE
Purchase wine from an eco-vineyard
Offset Qantas Wine or Qantas Store delivery
SUSTAINABLE LIFESTYLE
Offset your home and car
Purchase solar panels
SUSTAINABLE TRAVEL
Stay in an eco-hotel
Green Tier rewards
and recognition
DIGITAL RECOGNITION
Including:
Unique digital card
Visual recognition in My Account
and in the Qantas app
BONUS QANTAS POINTS
Earned when:
Purchase eligible sustainable
products or experiences
EXCLUSIVE EVENTS
Invites to special events such as:
Sustainability events and experiences
CHOOSE YOUR REWARD
On attainment of Green Tier choice of:
Bonus Qantas Points
Status credits
Qantas purchases carbon offset
or SAF on your behalf
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Enabling
our people
We are committed to enabling our
people to be and do their best in a safe
and inclusive culture.
This section of the Report highlights how we
are supporting the achievement of three of
the UN SDGs through our focus on inclusion
and diversity, supporting our employees and
respecting human rights. More information
can be found in the Report appendix.
Photo: Qantas employees taking part in the 2022 relaunch of the I Still Call Australia Home advertising campaign.
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Supporting our people to feel safe and valued
OUR APPROACH
Our Qantas Group Behaviours — Responsible, Respectful, Resilient and Excellence — are the foundation of the Qantas Group
Strategic Plan and set the standard for how we do things every day. The Behaviours are built on what makes us unique, sets us
apart and provide common language to guide expectations of ourselves and others. The Behaviours are incorporated into all parts
of the employee life cycle and are integral to how we onboard, recognise, give feedback on performance and ensure our ongoing
commitment to safety.
As an airline, safety is core to all that we do. Our safety, health and security activities are supported by comprehensive governance
processes that help us monitor and manage performance and risks. We encourage our people to report safety and security-related
matters, even when they are closely involved and might feel vulnerable to criticism. This is supported by policies and procedures to
ensure our people are treated fairly under what is known as ‘just culture’.
Our approach covers three main areas: people safety, operational safety and operational security.
FOCUS ON COVID-19
During FY22, our Fly Well program included temporary as well as existing wellbeing measures to safeguard travel during the
pandemic. These included HEPA filters on our aircraft to remove particulates, including COVID-19, from the air; frequent (every six
minutes) flushing of the air in the cabin; and the arrangement of seats to face forward to reduce the likelihood of transmission to or
from other passengers. Qantas made Fly Well packs — containing hand sanitiser and face masks — available to all passengers.
Our Work Well program is aimed at driving a coordinated approach to maintaining COVID-19-safe work environments, ensuring
compliance with government restrictions and minimising the risk of transmission of the COVID-19 virus between employees,
contractors and passengers during operations.
In August 2021, we announced that all Qantas Group employees would be required to be vaccinated against COVID-19 as part of our
commitment to safety. A fully vaccinated workforce will help to safeguard our people against the virus but also protect our customers
and the communities we fly to.
PEOPLE SAFETY
The safety, health and wellbeing of our customers and people is our highest priority. We
remain committed to minimising the risk of workplace injuries, including those associated
with mental health risks.
SAFETY PERFORMANCE
We use three key metrics to measure safety performance — total recordable injury
frequency rate (TRIFR)1, lost work case frequency rate (LWCFR)2 and fatalities.
In FY22, our TRIFR was 12.9 compared with 17 in FY21 and 16.7 in FY20 and our LWCFR
was 6.5 compared with 5.4 in FY21 and 7.5 in FY20. There were no fatalities in FY22
which is consistent with FY21 and FY20.
It should be noted that FY21 and FY20 TRIFR and LWCRF were restated compared with
previous reporting to reflect the current business structure and the people safety
performance associated with that new structure . This has impacted most on TRIFR.
TRIFR improvement was due to the focus on managing safety performance in some of our
businesses with successful programs of work (such as Work Well) and extra safety oversight
as we undertook previously uncommon tasks (such as bringing aircraft out of storage).
While the operational tempo was significantly reduced in the first half of the year, it ramped
up particularly in the last quarter of FY22.
24%
improvement
in TRIFR from
FY21 to FY22
RISK REDUCTION
Our Supporting Fitness for Work program is designed to help manage health-based risks in the operational environment, and to
support employees more generally through injury or illness, including accommodating disability and diversity, when there is a health
component.
The program covers both work-related and non-work-related conditions. It covers the occupational lifecycle from recruitment,
ensuring that employees have optimal health, as well as any necessary accommodations and support. It also includes a collaborative
process for managers to ensure favourable safety, healthcare and support return-to-work outcomes for existing employees with
physical and/or mental health conditions, and/or adverse social circumstances.
Qantas builds on previous decades of work to protect our employees and contractors from harm as they undertake their work. We are
focused on preventing all injuries, prioritising those activities that could cause the worst outcomes — serious injury or even a fatality.
This work has started with a deep focus on working at heights and traffic management. Australian workplace injury statistics reveal
that these are areas where our people are most likely to be seriously harmed. Already this work has highlighted some practices and
equipment that could further reduce the possibility of injuries.
QANTAS GROUP WELLBEING
The Group has a structured employee wellbeing and mental health program which has the dual focus of understanding and protecting
our people from wellbeing and mental health-related risks, along with amplifying the opportunities for our work to positively impact
on our wellbeing and mental health. The Group continues to invest in understanding what more we can do to foster healthy, safe and
inclusive cultures across our business.
Our Wellbeing program is designed to foster an environment that supports, enables and motivates our people to live healthier,
happier and more productive lives. The approach of the program is to provide our employees with validated, relevant, meaningful,
and timely wellbeing initiatives, information, activities, resources, and tools. To do this, we have identified four focus areas designed
to support wellbeing.
During the pandemic, our Wellbeing program expanded from a focus on traditional areas of health and wellbeing — physical health,
nutrition, sleep, exercise and mental health — to include financial wellbeing, healthy relationships and digital wellbeing.
CASE STUDY
Annual safety conference
In November 2021, we held our annual safety conference aimed at bringing together our people, partners and peers
to share knowledge and experience in the pursuit of a safer industry for all. Presenters included leaders and industry
experts who shared their insights on topics such as risk, personal resilience and global aviation in a COVID-19 setting.
We also held ‘virtual expos’ to showcase and recognise the outstanding work our people do every day to keep our
workplaces, customers and operations safe. One of the most popular sessions of the day was Personal Resilience
by Ben Crowe, Founder of Mojo Crowe. Photo: Ben Crowe presenting at the conference.
1. The total number of injuries or illnesses during work hours (1 July to 30 June) with an accepted workers’ compensation claim for Australian-based personnel,
or equivalent in other jurisdictions, per million hours worked. Injury and illness claims caused by factors outside the organisation’s control are excluded from
this calculation. Examples are journey and slip port injuries and illnesses from COVID-19. This metric includes embedded contractors who work exclusively for
the Qantas Group and perform work that is considered core business.
2. Described as the total number of injuries or illnesses during work hours (1 July to 30 June) with an accepted workers’ compensation claim for Australian-based
personnel, or equivalent in other jurisdictions, which resulted in total incapacity, per million hours worked. Total incapacity is defined as any injury or illness that
results in an injured worker being unfit for work. Journey and slip port injuries are excluded from this calculation. This metric includes embedded contractors
(as described above) and employees of majority-owned entities of the Qantas Group.
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OUR MINDS MATTER
A cornerstone of our employee wellbeing and mental health approach is the Our Minds Matter program which focuses on:
— Creating mentally healthy workplace cultures
— Building awareness and reducing stigma around mental health and mental illness
— Supporting those in need.
The Our Minds Matter program is activated through a network of centrally supported, employee-led working groups that identify risks
and opportunities at a business unit level. The groups deliver initiatives designed to mitigate the identified risks and amplify the
opportunities presented in a way that is relevant and meaningful to the workgroup.
BUILDING MENTAL HEALTH AND WELLBEING LITERACY
Our employees have access to an extensive suite of wellbeing and mental health learning, which we believe contributes not only to
healthy, safe and resilient workplaces but also to healthy, safe and resilient families and communities outside of work.
Our learning programs are both internally and externally developed. Learning initiatives include programs with a strong focus on
wellbeing and mental health at work such as ‘Preparing Your Mind for Work’ which was developed to support our people returning to
work from extended stand downs during COVID-19.
Mental health first aid (MHFA) and psychological first aid (PFA) are two examples of external learning programs that are offered,
recognising that the skills learnt in these courses are of deep benefit to our people and our organisation, and also to the communities
to which our people belong.
We are on track to achieve our target of having 500 MHFA and PFA accredited employees across the Qantas Group by the end
of 2022.
OUR EMPLOYEE ASSISTANCE PROGRAM
We have partnered with Converge International as our Employee Assistance Program (EAP) provider. Converge provides a holistic EAP
which includes coaching and support for mental health and mental illness challenges, as well as financial coaching, career coaching,
and nutrition and lifestyle coaching and support.
The EAP gives our people and their families access to qualified professionals including psychologists, social workers and
management coaches.
Our annualised EAP utilisation rate as of May 2022, was 5.9 per cent (0.6 per cent higher than the Industry average for the transport,
postal and warehousing industries). Eighty-six per cent of Qantas Group EAP users in 2022 rated their experience with our EAP
as favourable or very favourable.
OUR WELLBEING PARTNERS
Through our Employee Wellbeing and Mental Health program, we engage a network of experienced partners and providers to support
the delivery of health and wellbeing support, services and education. Wherever possible, we strive to work with partners who are
actively involved in making a positive contribution to the broader community.
Integrity Health and Safety delivers the annual Flu Vaccination Campaign across our Southern Hemisphere-based business. Integrity
is a First Nations owned and operated business. Its business model includes supporting the ongoing professional development
of Aboriginal and Torres Strait Islander nurses by funding scholarships in first aid, CPR, flu vaccination and leadership courses
to assist with building healthcare capability in Aboriginal and Torres Strait Islander communities and further afield.
Beyond Blue is a key partner in supporting the reduction of stigma and bias around mental illness in our organisation through the
sharing of Beyond Blue learning opportunities and resources. Our employees regularly participate in volunteering opportunities with
Beyond Blue through our corporate relationship.
Australian Red Cross is a key delivery partner in our mental health first aid and psychological first aid training, delivering
accreditation courses to our people all over Australia, increasing mental health literacy in our community.
Through Australian Red Cross, Qantas also participates in the Lifeblood Teams program with Qantas Group volunteers making blood,
platelet and plasma donations. We currently have close to 300 members in our Qantas Lifeblood team who made more than 1,000
donations 2022.
In May 2022, Qantas also joined the Corporate Mental Health Alliance Australia which is a collective of Australian-based
organisations working together to provide mentally healthy work environments through collaborative research and development
of tools and resources to inform better practice across Australian workplaces.
OPERATIONAL SAFETY
FY22 presented many challenges to our organisation related to the global COVID-19 pandemic, with the potential to impact
operational safety. We brought grounded aircraft back into service, our employees came back to work after being stood down, and
we opened or reopened flying to ports that we had not flown to in over a year and to some that had not seen an aircraft in that time.
These challenges meant that our systems and processes needed to support people, aircraft and support services that lacked recent
operational activity.
Despite these issues, our operational safety performance was strong in FY22 as we maintained a reporting culture where people are
confident to report issues without fear and consistent operational performance across all parts of the organisation.
Throughout this challenging period for the aviation industry, the Group continued to deliver safe aircraft operations through programs
such as:
— Safely returning to the skies: During the pandemic Qantas had to ground the majority of our fleet. This was a difficult program
of work that requires careful planning and scheduling. Since then, the return of domestic and international travel as borders
reopened required a similar program of work. We also needed to ensure our people were ready to fly on these aircraft again with
a focus on training crew and support employees, and safety oversight to make sure the programs we put in place were delivering
the expected outcomes.
— Safely returning to our ports: The ports we fly to had no or limited activity during the pandemic. Qantas needed to restart activity
to those ports (and some new ones) by making sure our partners were ready for flights. Qantas had detailed processes to check
each port was ready to restart safely. These included making sure caterers still had their harnesses for working at heights
activities, checking that airports had restarted their wildlife programs to keep birds away from our aircraft, and working with air
traffic controllers to make sure they understood our increased schedule and were ready to support that activity.
— Safe growth: Qantas Group has announced orders for a range of new aircraft. The team selecting those aircraft has made sure we
consider safety in those announcements; thinking about technology available to improve information pilots receive, to improve
data the aircraft measures, aircraft performance, and to ensure that people using the aircraft (cabin crew stowing luggage, or
ground crew loading bags) have a safer experience.
OPERATIONAL SECURITY
The aviation industry continues to face complex threats from individuals and organisations globally. Qantas works closely with the
Australian Government and overseas agencies, regulators, law enforcement agencies and global partners across the industry to
proactively monitor and manage threats and risks. We seek to be at the forefront of improving security outcomes for customers and
employees by operating within a security framework that is proportionate, agile and responsive to changing threats and risks across
our network.
Qantas Group Security and Facilitation participates in several domestic and international committees to review and refine security
measures, to plan for and acquire enhanced security equipment and to establish world best practices in aviation security.
The Group is keenly aware of the risk posed by ‘trusted insiders’ — people who seek to use privileged access or information provided
in the context of doing their jobs to facilitate illegal activities, such as transporting illicit substances or providing unauthorised access
to secure facilities for others. There are multiple safeguards to prevent and detect this activity and on several occasions over the
years we have worked closely with law enforcement to apprehend those involved. During 2021, the Group was vocal in our support of
legislation that will enhance these efforts in future.
Together with our government and industry partners, key security improvements in FY22 included:
— Enhanced security measures for the smaller regional (domestic) cargo shipments in accordance with new Australian requirements
— Renewed security awareness training for all employees and contractors
— Renewed freight security training for all freight employees and contractors
— Enhancing the relationship between the Group and Australian Federal Police (AFP) Air Security Officers
— Collaborating with overseas regulators and airport authorities to enable the resumption of international operations
— Participating in the government’s review of the Australian security regulatory framework
— Continuing Qantas’ collaboration with the Australian Government on cyber security to proactively monitor emerging threats,
and to enhance the protection of our people, customers and assets.
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Our focus in FY23 will include:
— Continued focus on risk reduction especially around working at heights and traffic management
— Delivering mental health first aid and psychological first aid accreditation to over 500 employees across the Group,
to further develop mental health literacy and capability within the Group
— Aligning the Our Minds Matter approach across the Group with relevant state-based regulations pertaining
to psychosocial risk and hazard management
— Delivering and embedding a mental health and wellbeing dashboard, to further deepen our understanding
of the mental health and wellbeing of our people and our organisation
— Continuing engagement with governments, regulators, law enforcement and intelligence agencies to improve
security systems, and demonstrate security leadership underpinned by sound risk management principles
— Delivering a world class enterprise aviation security risk management program and proactively monitoring
emerging threats
— Embedding security as everyone’s responsibility and empowering our people with risk tools and support.
INVESTING IN OUR PEOPLE
The Qantas Group People Strategic Plan supports our vision of enabling our people to be and do their best in a safe
and inclusive culture.
As the Qantas Group recovers from the COVID- 19 pandemic, we know it is important to recognise the significant role
of our employees in contributing to our ongoing recovery. This has been reflected in initiatives such as:
— A Recovery and Retention program, awarding 1,000 share rights to 17,000 eligible non-executive employees and awarding
managers and senior executives a share right-based bonus in August 2023, subject to performance and service conditions
being met
— A one-off recovery boost of $5,000 to EBA-covered Qantas Group employees once new enterprise agreements are finalised
— An improved staff travel offering for employees as part of our Employee Value Proposition (EVP), to include always on discounts
for commercial tickets and an increased number of staff travel beneficiaries.
We are also focused on delivering our People Strategic Plan with emphasis on:
— Attraction and retention
— Developing and engaging
— Inclusion and diversity (pages 38 to 41 of this Report).
ATTRACTION AND RETENTION
Interest in working for the Qantas Group has continued to grow, with approximately 115,000 external applications in the last
12 months for more than 4,700 advertised roles. Despite the high number of applicants, we are still working to fill a significant
number of roles with specific requirements and critical skills, such as those in engineering, freight and logistics. Operational
recruitment remains a priority and we have recruited substantial numbers of cabin crew and pilots as flying returned and will
continue to do so.
Retention of talent continues to be a priority, with investment focused on recognition, benefits, opportunities for internal promotion
and professional development. Attrition has continued its downward trend since December 2021.
Our investments in initiatives such as projects Sunrise and Winton, as well as public commitments to sustainability, are also aimed
at improving our EVP.
DEVELOPING AND ENGAGING
Training of new recruits and re-onboarding of current employees across various workgroups provides an opportunity to reinforce
expected behaviours as we continue to evolve our culture.
In 2022, Qantas restarted our Graduate and Engineering Apprentice programs; Aboriginal and Torres Strait Islander Career Tracker
Interns program; and School-Based Trainees pathway program.
A Group-wide approach to refresh and invest in key training modules has included customer focused training, inclusive leadership
and Standards of Conduct.
We have restarted the Welcome Onboard induction program for all corporate and support employees and leaders new to the Group.
This program is aligned to the Qantas Group Strategy and includes an emphasis on sustainability. Leaders also attend an additional
day focused on their role in creating a safe and inclusive culture across the Qantas Group.
We have relaunched our recognition programs — ThankQ for Qantas and Bravo for Jetstar. In the last six months there have been
34,000 instances of employees being recognised by a peer for modelling Qantas Group Behaviours.
Our focus in FY23 will include:
— Refreshing our EVP to strengthen our ability to acquire, develop and retain a diverse and capable workforce
— Focusing on engaging, recognising and rewarding our people
— Ensuring a pipeline of highly trained and skilled aviation workers to meet future demand.
Photo: Qantas Aircraft Maintenance Engineer Andre Leas performing routine maintenance on an engine.
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Enhancing inclusion and diversity
OUR APPROACH
We value our people’s diverse lived experience and believe that our inclusive culture contributes to our strength and success.
Our diversity of thought and experience helps us to understand our customers, make better decisions and get things done safely.
Our aim is to build a safe and inclusive culture by championing equity and celebrating diversity. Our three-year Inclusion and Diversity
Strategy was launched in 2021 to drive better business outcomes and an improved people experience through shared accountability
for inclusion and diversity. This strategy builds upon the work delivered under the Group 2018–2021 Inclusion and Diversity Strategy.
The implementation of the 2021 strategy is driven by all leaders, with the support of the Inclusion and Diversity team together with
our employee networks, Altitude, Illuminate and Daramu.
We continue to focus on key pillars of our Inclusion and Diversity Strategy with a spotlight on gender balance, including our new
three-year gender target, delivery of the Qantas Group Reconciliation Action Plan (RAP) and the restart of initiatives across our
LGBTQI+ and Accessibility programs.
Implementing programs focused on inclusive language, breaking bias and inclusive leadership connect the role each of us plays
in creating a safe and inclusive culture.
We work with a number of partner organisations including Champions of Change Coalition, Chief Executive Women, Reconciliation
Australia, Australia Network on Disability, and Pride and Diversity to help support our long-term commitments.
ADVANCING GENDER BALANCE
The Qantas Group achieved our three-year gender target (2018–2021) of 38 per cent
of women in senior management roles in FY21, representing a 2.8 per cent increase
since June 2018. A new target has been set to increase this to 42 per cent by 2024.
In addition, Qantas is a proud supporter of the International Air Transport Association (IATA)
25 by 2025 global campaign to change gender balance within the aviation industry. We have
agreed to several commitments, with a focus on:
— Increasing female pilots across the Group
— Female nominations for IATA governance roles
— Participating in annual benchmarking by reporting annual key diversity metrics.
The Group’s commitment to building a pipeline of female pilots through intakes into cadet
programs has continued through the Qantas Group Pilot Academy and our continued focus
on the Nancy Bird Walton initiative to reach 40 per cent female cadet pilots by 2028.
PAY PARITY
During the COVID-19 pandemic the headline gender pay gap increased, largely resulting from the underlying gender composition
of displaced employees. The stand down profile and reliance on JobKeeper or continued salary was not gender-neutral, with areas
with higher female employees (e.g. cabin crew) more highly impacted than those areas with higher numbers of males (e.g. pilots
and engineers). In our corporate roles, we continue to take proactive actions on gender pay equity, both at the point of recruitment
and promotion and, in future, as part of annual remuneration reviews.
Photo: Qantas employees celebrating Sydney’s Mardi Gras Fair Day and Parade 2022.
37.4%
women in senior
roles in FY22
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RECONCILIATION
Our vision for reconciliation is a shared national identity that celebrates the knowledge and cultures of Aboriginal and Torres Strait
Islander peoples. Despite the challenging operating environment, the Qantas Group was proud to launch an interim RAP from January
2021 to March 2022 (extended to September 2022). More detail can be found on page 52.
Over the past year, we have helped build the knowledge and awareness of Aboriginal and Torres Strait Islander peoples for employees
and customers through two key initiatives:
SUSTAINABLE ABORIGINAL AND TORRES STRAIT ISLANDER CAREERS
Qantas supports creating work and training opportunities for Aboriginal and Torres Strait Islander peoples.
Sustainable, meaningful employment is critical to our vision for reconciliation. Through our career and development opportunities,
we aim to remove barriers to employment and promotion, and to empower Aboriginal and Torres Strait Islander peoples to contribute
within their communities and in the workplace.
Due to the impact of COVID-19 on Qantas business operations, our Aboriginal and Torres Strait Islander Pathway programs were put
on hold for FY22. With their restart, we will work collaboratively with our partners to continually improve our pathway programs and
develop our Aboriginal and Torres Strait Islander employees. Throughout this work, we will regularly connect with our Aboriginal and
Torres Strait Islander employees to understand their experiences so that our efforts reflect and respond to their experiences.
In June 2022, Qantas welcomed CareerTrackers interns into our business for the first time since the pandemic. CareerTrackers
is a national program that creates paid internship opportunities for Aboriginal and Torres Strait Islander university students.
Qantas has partnered with CareerTrackers to provide employment opportunities for over 10 years.
CULTURAL CAPABILITY OF OUR EMPLOYEES
Our aim is to foster a shared national identity where Australians take pride in our Aboriginal and Torres Strait Islander heritage and
contemporary cultures. This is critical to our reconciliation vision of a shared national identity, grounded in social and cultural inclusion.
Essential to this commitment is cultural awareness training and immersion opportunities for Qantas employees. During 2022, Qantas
has made SBS Cultural Awareness Training a required learning component for all corporate employees.
With international cabin crews undertaking return to work training, we took the opportunity to include a cultural competency
component which explains the meaning and value of an Acknowledgement of Country to Aboriginal and Torres Strait Islander peoples.
This training supported the roll-out of the specific Acknowledgement of Country on international flights.
During 2020, Qantas re-signed our MoU with Jawun to deliver executive immersion and secondment opportunities to foster
awareness, understanding and appreciation of Aboriginal and Torres Strait Islander knowledge, cultures, histories and challenges.
QANTAS EMPLOYEE RESOURCE GROUPS
Our Employee Resource Groups provide recommendations on strategic activities to drive inclusion throughout the Qantas Group,
provide feedback on initiatives and actions and assist with internal engagement events for employees to raise awareness and build
knowledge and capability.
ALTITUDE: THE QANTAS GROUP WOMEN’S NETWORK
Qantas’ Altitude strategy is aimed at connecting, educating and engaging everyone to achieve gender equality. The Qantas Group has
a long-term commitment to challenging stereotypes and ensuring merit-based gender diversity in aviation, and we do this by:
— Celebrating key awareness days, including International Women’s Day
— Focusing on developing, retaining and attracting female leaders through identifying and promoting female talent and targeted
external recruitment
— Refreshing our approach to flexibility — Flex@Q. We understand that flexibility means different things to different people, and we
are committed to providing a range of flexible work practices.
ILLUMINATE: THE SEXUAL AND GENDER DIVERSITY NETWORK
The Illuminate Network is an employee network for LGBTQI+ employees and their allies to support a workplace inclusive of everyone.
With a focus on developing a workplace free from bullying, harassment and discrimination, the network has developed an internal
framework to provide information, support and advocacy training for sexual and gender diverse employees.
In FY22, the Illuminate Network was relaunched following the impact of COVID-19, with the first event celebrating Mardi Gras Fair Day
and Parade 2022.
Qantas has participated in the Sydney Mardi Gras for over 25 years and was a major partner in 2022. The Qantas troupe, made up of
40 employees, danced their way around the Sydney Cricket Ground while sharing this year’s Mardi Gras message that when we band
together, we shine brighter. Internal and external messaging focused on how our LGBTQI+ people and allies have the power to come
together and create a more equitable Qantas and community.
DARAMU: ABORIGINAL AND TORRES STRAIT ISLANDER EMPLOYEE NETWORK
The Qantas Group has a proud history of championing reconciliation. The Daramu network seeks opportunities to engage our
Aboriginal and Torres Strait Islander employees and deepen relationships with the Aboriginal and Torres Strait Islander community.
Photo: Aboriginal and Torres Strait Islander team members from across the Qantas Group. From left to right: Kirralee Smith, Marnie Bathis, Kylene Anderson
and Bree-Ellyn Davison.
TARGETS
Area Measures
FY2021
Actuals
30 June 2021
FY2022
Target
FY2022
Actuals
30 June 2022
FY2023
Target
FY2024
Target
Gender balance Increase females in senior management roles (JG4+) 38.1% 39% 37.4% 40% 42%
40% intake of female cadet pilots by 2028
(incremental 3% increase year on year) 21% 24% 22% 27% 30%
Aboriginal and Torres
Strait Islander
Interim Reconciliation
Action Plan
Sustainable careers
• Aboriginal and Torres Strait Islander
participation in all business units
1.01%
(Group) 1.3% (Group) 0.98% 1.4% 1.5%
Cultral inclusion and celebration
• Cultural competency — online learning 18.6% 20% 28.5% 40% 70%
IATA 25by2025 initiative • 25% increase in female pilots by 2025 to 8% 6.4% 7% 7.07% 7.5% 8%
Our focus in FY23 will include:
— Working toward our FY23 targets across gender balance and Aboriginal and Torres Strait Islander representation
— Supporting the refresh and relaunch of our employee networks — Altitude, Illuminate and Daramu
— Building our Accessibility Action Plan and creation of our first employee accessibility network.
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Respect for human rights
OUR APPROACH
The Group is committed to respecting all internationally recognised human rights as set out in the United Nations Universal
Declaration on Human Rights (UDHR). At a minimum we comply with applicable national and international laws, but we also uphold
the International Labour Organisation (ILO) Core Labour Standards and voluntarily commit to conduct our business in line with
the standards of the UN Guiding Principles on Business and Human Rights (UNGPs).
We are a signatory to the UN Global Compact’s 10 key principles, which include commitments to human rights and labour rights,
including the elimination of all forms of forced and compulsory labour and the effective abolition of child labour.
Our commitments to the respect of human rights are outlined across a range of policy documents including our Code of Conduct and
Ethics and Business Practices Document, and are also disclosed in corporate publications such as our Modern Slavery Statement and
our Human Rights Policy Statement.
We also recognise that our corporate responsibility to respect human rights goes beyond public statements of commitment and
extends to the actions we take to demonstrate our respect of human rights. For the Qantas Group, this means acting in a way that
avoids harm, or infringing on the rights of other people, whether they be employees, customers, workers in our supply chain, or the
broader community.
It also includes taking action consistent with the UNGPs to address any adverse impacts in which we may be involved, or connected
to, and to proactively look for ways to advance the respect of human rights through our business activities.
We manage our human rights risks consistently with our established enterprise-wide risk management framework, which provides
a governance structure for clear accountability of human rights risk, ultimately overseen by the Qantas Board through its Audit
Committee.
IMPACT OF COVID-19
FY22 presented significant challenges for the Group as we navigated our recovery from the impact of the global pandemic. Although
our progress to advance our approach to human rights was constrained by difficult operating conditions, we have continued to take
positive steps to further embed the respect for human rights in our operations and supply chain.
Our Modern Slavery Statement outlines in detail the widespread measures the Group had to take to ensure its survival, including the
potential human rights impact, on our people, operations and supply chain.
KEY AREAS OF FOCUS
During FY22, we continued to enhance our program in the following key areas.
Policy and governance:
— Re-established the Supply Chain Working Group and governance forums such as the Supply Chain Assurance Leadership Council
and business-led supplier governance mechanisms
— Revised our Code of Conduct and Ethics and Business Practices Document to communicate our human rights commitments and
responsibilities, including explicitly prohibiting child labour and forced, bonded or compulsory labour or any other form of modern
slavery in our operations and supply chains
— Continued to embed modern slavery clauses in our contractual agreements.
Risk assessment and due diligence:
— In line with the UNGPs, we engaged expert advisory consultants to lead the refresh of our salient human rights issues
— Assessed human rights risk indicators and undertook advanced due diligence, including desktop reviews of independent third
party audits, of our new and re-contracting supplier relationships
— Commenced the due diligence and risk assessment of our ‘unassessed supplier’ base. This activity is critical in identifying and
managing the risk of modern slavery in our operations and supply chains.
Training and awareness:
— Implemented human trafficking training for our aircrew to support identification of, and responses to, suspected instances
of trafficking
— Delivered modern slavery training to key personnel to build knowledge and awareness of our employees.
Grievance mechanisms and remediation:
— Took action to encourage employees, suppliers and workers in our supply chain to speak up, without fear of retribution, about any
concerns they may have
— Commenced work to review our external grievance mechanisms against the UNGPs’ criteria for effective non-judicial grievance
mechanisms.
Collaboration and stakeholder engagement:
— Published our 2021 Modern Slavery and Human Trafficking Statement in December 2021
— Engaged with the Global Compact Network Australia network through the Modern Slavery Community of Practice forum.
SALIENT HUMAN RIGHTS ISSUES
Salient human rights issues are those that are likely to have the most severe negative impact on people, through a company’s
activities or business relationships. In line with the UNGPs, the Group undertakes human rights due diligence of our business activities
to identify, assess and manage our salient human rights issues.
In considering these issues, we apply the lens of the risk of harm to people. However, there is a natural convergence between our
salient human rights issues and the risk to our business. The saliency assessment is critical in helping us prioritise the human
rights issues which are, or have the potential to cause, the most harm, and enables us to manage the key risks to people and to
the business.
In 2022, we engaged external advisors to refresh our previous saliency assessment and to evaluate specific potential human rights
impacts to determine their severity based on the scale, scope and irremediability of each impact. The output of this assessment will
help reaffirm our understanding of our key human rights risk areas and prioritise, address and report on our key human rights risks
in the future.
MODERN SLAVERY AND OUR SUPPLY CHAIN
In December 2021, we published our second Modern Slavery Statement under the Commonwealth Modern Slavery Act 2018, our
sixth Statement in line with the requirements of the UK’s Modern Slavery Act 2015. Over the years, we have deepened the level of
disclosure in our annual Statements, reflective of the maturation and continuous improvement of our policies and the processes that
support the effective management of modern slavery risk in our operations and supply chains.
We have increased transparency on the nature of the Group’s potential modern slavery risks and more clearly outlined how we might
be involved in potential modern slavery risk in our global operations and supply chains, including through the jurisdictions we source
from and the nature of the products we procure. We have also provided in depth case studies of due diligence and remediation
actions to manage modern slavery risk.
Our risk-based Supply Chain Assurance (SCA) program, launched in 2018, standardises the way we identify, assess and manage risks
in our supply chain. This includes modern slavery due diligence and risk assessment processes which were designed with reference
to key human rights standards.
Our approach includes taking action to address potential and actual adverse impacts in line with our level of involvement, consistent
with the three-part continuum of involvement (cause, contribute, directly linked) outlined in the UNGPs. The SCA program applies
to new and re-contracting suppliers. In late 2021, we undertook a risk profiling exercise to prioritise the assessment of our existing
supplier base. We will continue to apply our risk-based approach to progress this activity, the output of which will assist to prevent,
mitigate and account for how we address modern slavery risk.
More information on how we engage with suppliers on issues including human rights can be found on page 13.
MEASURING OUR PERFORMANCE
Establishing a credible framework for measuring a company’s broader human rights performance is complex. We recognise that
continually reviewing and assessing our approach to managing human rights risk is key to our continuous improvement and we are
committed to transparent reporting to enable our stakeholders to compare our performance over time.
Our internal audit and risk function, and business assurance processes, help track our performance with respect to our SCA program,
with oversight from the Qantas Board Audit Committee.
Our Modern Slavery Statement describes in more detail the actions we take to identify and address modern slavery risk and how we
measure the effectiveness of those actions.
We will continue to explore ways in which we can provide meaningful insights into our performance over time, including through
engagement and collaboration with key industry peers and external human rights experts and external benchmarking.
Our focus for FY23 and beyond will include:
Our approach to more deeply embed respect for human rights in our operations and supply chain is outlined in detail in
our Modern Slavery Statement. The key areas of focus include:
— Applying the output of our salience assessment to help inform our overall strategy and ensure we prioritise the
most salient issues for action.
— Finalising the review of our internal and external grievance mechanisms and exploring how we can improve the
accessibility grievance mechanisms to workers in our supply chain.
— Adopting a risk-based approach to prioritise the due diligence and risk assessment of our unassessed supplier base,
and where identified, taking steps to address potential adverse impacts, in line with the guidance of the UNGPs.
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Connecting
customers
and communities
We are committed to connecting customers
and creating value to strengthen the communities
in which we operate.
This section of the Report highlights
how we are supporting the achievement
of two of the UN SDGs through our focus
on supporting communities and economic
development. More information can
be found in the Report appendix.
Photo: Shorewell Presents, an event held in 2019 as part of Tasmania’s Ten Days on the Island Festival in partnership with Burnie Community House. Ten Days
on the Island was one of twenty Qantas Regional Grants recipients in 2019. Photo credit: Sonja Ambrose.
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Connecting the regions
OUR APPROACH
Since Qantas was founded in the Queensland outback in 1920, we have been proud to help the communities we serve. From assisting
in times of natural disaster to providing an international platform to showcase the best our country has to offer, our aim is to
positively contribute to communities across Australia.
IMPACTS OF COVID-19
The impact of COVID-19 on our industry and on the Qantas Group has been significant — a combination of lockdowns, travel
restrictions and quarantine measures. Qantas’ focus during the pandemic was to help to keep Australians connected and ensure
Australia’s supply lines remained open.
During FY22, Qantas operated over 220 repatriation flights on behalf of the Australian Government to bring Australians home
and re-unite families. Qantas developed targeted networks to repatriate Australians from Buenos Aires, Chennai, Delhi, Denpasar,
Frankfurt, Istanbul, Johannesburg, London, Los Angeles and Vancouver.
One of the most important repatriation missions was the 16 flights Qantas deployed to Dubai and Islamabad to support Australians
fleeing civil unrest in Afghanistan.
QANTAS
REPATRIATION FLIGHTS COVID-19:
PARIS
FRANKFURT
ISTANBUL
LONDON
APIA
NUKU’ALOFA
JOHANNESBURG
SYDNEY
CANBERRA
HOBART
BRISBANE
MELBOURNE
ADELAIDE
PERTH
DARWIN
VANCOUVER
BUENOS AIRES
DELHI
LSLAMABAD
DENPASAR DILI
SINGAPORE
CHENNAI NGERUSAR
DUBAI
LOS ANGELES
Qantas: Repatriation flights — COVID-19
Qantas also played a critical role to ensure that Australia maintained connections with the Pacific Islands and Timor-Leste.
This helped to enable key people movements and the continuation of the Pacific Labour Mobility program (with strict quarantine
measures in place). Qantas also transported thousands of tonnes in air freight including COVID-19 vaccines, medical equipment
and aid.
Photo: Uplifting COVID-19 vaccinations for delivery to our regional neighbours on behalf of the Australian Government. Source: Australian Government, 2021.
Qantas: Uplifting air freight, including COVID-19 vaccines
Qantas partnered with the Australian Government to support its COVID-19 vaccine arrangement with the UK Government by operating
special flights to transport millions of Pfizer doses for Australia’s vaccine rollout.
Qantas also worked with Austrade through International Freight Assistance Mechanism (IFAM) to help Australian exporters move
time-sensitive and high-value exports to key global markets and ensure critical supply chains, particularly in health and medicine
sectors, were protected when there was a freight capacity deficit due to commercial passenger operations being grounded as a result
of COVID-19 restrictions.
The freight connectivity maintained by IFAM helped to ensure a range of freight could be transported on IFAM flights, supporting
Australian exports and Australia’s supply chain network. In FY22 Qantas uplifted 32, 845 tonnes on 2,019 IFAM charters.
On outbound IFAM charter
flights, the Qantas Group
uplifted goods such as:
Similarly, on inbound IFAM
charter flights, the Qantas
Group uplifted goods such as:
IN FY22
Around 3 million kilograms
of salmon
Around 1.9 million kilograms
of mail
Around 0.6 million kilograms
of mail
Around 2.9 million kilograms
of meat
Around 1.3 million kilograms
of fruit and vegetables
Around 0.9 million kilograms
of fruit and vegetables
Around 7.3 million kilograms
of general freight
Around 3.9 million kilograms
of electronic goods
Around 0.4 million kilograms
of clothing
Qantas was proud to support shipments of national interest as part of the IFAM program, including urgent machinery and parts to
manufacture N95 masks, personal protective equipment, rapid antigen test kits and critical lifesaving medicines.
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SUPPORTING REGIONAL CUSTOMERS AND COMMUNITY
While the pandemic resulted in reduced flights, with the support of the Federal Government we maintained essential
domestic services.
With international borders closed, the Qantas Group responded to the increase in local travel with the launch of 20 new domestic
routes in FY22, including to regional centres such as Busselton, Burnie and Broken Hill.
In 2019, Qantas invested $10 million to reduce fares for residents of selected regional cities in Queensland, the Northern Territory and
Western Australia through our discounted fares program. The program enables us to make affordable air transport more accessible in
remote towns to assist customers with personal travel, including same-day flights, last minute trips and travel during peak periods.
Since resuming regular flying, Qantas has continued to support the travel of regional residents with resident fare sales. In May 2022,
we supported a week-long sale for all eligible regional residents. At the same time, Qantas introduced the Regional Airfare Zone Cap
Scheme as announced by the Western Australian Government.
In addition, Qantas regularly promotes regional domestic tourism through Qantas Travel Insider and Qantas channels. We also raise
awareness of the Resident Fares Program and the promotion of fare sales to regional ports in an effort to support both regional
tourism businesses and regional towns through our investment in driving tourism.
QANTAS REGIONAL GRANTS PROGRAM
In FY20, Qantas introduced The Qantas Regional Grants program. Twenty grants were distributed across the country to local
community initiatives and charitable organisations. The program planned to offer a total of $5 million in grants over five years to
Australian-based not-for-profit community groups, individuals, charities, projects, and organisations seeking funding to provide a
direct service or benefit to regional Australia. While the program was paused during the pandemic, Qantas is committed to returning
the initiative in FY23 as it enables us to demonstrate our commitment to regional Australia.
QANTAS FOUNDERS MUSEUM
As part of our ongoing work to support regional tourism, Qantas remains committed to the Qantas Founders Museum. Longreach
plays a significant role in Australia’s aviation history and the museum enables visitors to learn the stories, interact with aircraft
and simulate old-fashioned flying. Located next to Longreach Airport, the museum’s collection includes four of the world’s most
significant aircraft, along with full size replicas of some of Qantas’ early fleet. In April 2021, Qantas furthered our partnership with the
donation of a custom-made replica of the 1970’s Boeing 747 First Class Retro Lounge.
QANTAS PILOT ACADEMY, TOOWOOMBA, QUEENSLAND
During FY22, we continued to train pilots at the Qantas Group Pilot Academy in Toowoomba, Queensland. Opened in January 2020,
the Academy is part of our long-term strategy to ensure a talent pipeline for aviation. It also aims to increase the proportion of female
and Aboriginal and Torres Strait Islander pilots in the industry. While intakes to the Academy slowed as a result of the impact of
COVID-19, we expect the Academy will grow as these impacts reduce.
SUPPORTING AUSTRALIA IN A TIME OF NEED
Qantas was a founding member of the COVID Vaccination Alliance of UNICEF Australia which mobilised funding and advocacy
resources in Australia to support global vaccine rollout and rapid emergency pandemic outbreaks. The Alliance encourages
cross-sector collaboration and aligns with the priority of governments and communities in Australia and around the world.
To further support Australia to move towards a post pandemic world, Qantas actively worked with Federal and State governments
to work for a consistent approach to state borders being opened.
To encourage the uptake of vaccinations, in August 2021 we launched a campaign rewarding Australians for getting vaccinated. Fully
vaccinated Australian-based Frequent Flyers (18 and over) were able to claim their reward through the Qantas app by choosing one of
three options:
— 1,000 Qantas points
— 15 status credits (which help Frequent Flyers move up between Silver, Gold and Platinum tiers)
— $20 flight discount for Qantas or Jetstar
Members were then automatically entered into a prize draw to win a year’s worth of flights, accommodation and fuel. The campaign
resulted in more than 712,000 Qantas Frequent Flyer members claiming their rewards.
Our focus in FY23 will include:
— Resuming support of the Qantas Regional Grants program which provides a tangible investment into
regional communities
— Promoting regional domestic tourism to support both regional tourism businesses and regional towns
— Raising awareness of the Resident Fares Program.
Supporting communities
OUR APPROACH
We paused a number of sponsorship and partnerships during 2021 due to the pandemic, although in-kind support was offered where
possible. As lockdowns started to end and borders opened, Qantas began to recover and sought to re-establish relationships with key
partners who continued to align to the business in a post-pandemic world.
As the national carrier, Qantas plays a key role supporting Australian communities and having a voice on social issues. We partner
with organisations that share similar values and champion the spirit of Australia.
A strategic review of our partnerships saw a focus on those that support:
— Inclusion and diversity priorities, including our Reconciliation Action Plan
— Regional Australia
— Environmental and social sustainability
— Showcasing the best of Australian culture
— Building national pride through sport.
As we continue to recover, we are committed to giving back and building positive sentiment within Australian communities
and engaging with Qantas employees through our partnership and grants programs.
WORKING WITH OUR PARTNERS
COMMUNITY
Since 1991, Qantas customers have raised over $37.3 million for UNICEF through the Change for Good initiative, with funds supporting
the world’s most disadvantaged children in over 190 countries.
Historically, most funds raised for the program are from inflight passengers traveling to Australia from international destinations.
With COVID-19 disrupting international flying, the UNICEF Change for Good program was severely impacted. While international travel
paused, domestic customers could donate at terminals, although flying levels were significantly lower. As international flying recommenced in December 2021, the UNICEF Change for Good program was gradually reintroduced to international flights.
Between FY08 and FY22, the StarKids partnership between World Vision and Jetstar has raised more than $12.5 million for children
and families in Australia and southeast Asia who face challenges including poor health and education, and a lack of job opportunities.
Qantas also supports Pathfinders, established by Qantas employees more than 50 years ago as a volunteer fundraising committee
supporting the Royal Institute of Deaf and Blind Children (now named NextSense). In May 2022, Qantas donated a charter flight and
crew for a Pathfinders trip to Longreach which raised more than $70,000 for NextSense.
After a break from being present at Fair Day and the Mardi Gras parade, Qantas is proud to have resumed our partnership
with the Sydney Gay and Lesbian Mardi Gras (SGLMG) organisation and demonstrate our commitment to inclusion and diversity.
Our long-standing partnership with the SGLMG focuses on supporting and celebrating our LGBTQI+ people, allies and the broader
LGBTQI+ community.
The launch of the Qantas Loyalty Green Tier in March 2022 provided a valuable platform for Qantas’ customers to support
organisations such as the Great Barrier Reef Foundation, OzHarvest, Kimberley Land Council and UNICEF Australia. Since the
program’s inception, donations to the partners through the Qantas Store have increased by 700 per cent with Frequent Flyers
supporting charities to access their Green Tier membership.
CASE STUDY
Australian Paralympic Team.
Qantas was honoured to provide charter flights for the
Australian Paralympic Team to and from Tokyo for the
2020 Paralympic Games (held in August 2021). Safe
travel to Japan for the largest team ever was a high
priority and Qantas was proud to support the journey
of Australia’s best para-athletes. In 2022, Qantas has
further strengthened our partnership with Paralympics
Australia with commitment to working together on
Qantas’ Disability Action Plan to help shape more
accessible travel for people with a disability.
Photo: A member of the Australian team preparing
to depart from Australia to Tokyo.
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NATIONAL SPORTING AND ARTS PARTNERSHIPS
We believe in showcasing Australian success on the world stage and, in turn, inspiring the next generation of Australians to do great
things. Our sports and arts sponsorships are focused on supporting elite Australian talent, helping our national teams excel in global
competitions and fostering tourism opportunities.
Australian Olympic Committee
For more than 60 years, Qantas has
proudly supported the Australian Olympic
team, having flown our athletes to and
from every Olympic Games since 1948.
Qantas worked closely with the Australian
Olympic Committee to organise charters
to the Tokyo 2020 games as the safest
form of travel. We carried over 500
athletes and support staff to and from
Tokyo via charter flights.
The Australian Olympic Committee and
Qantas are committed to sustainability
and are working to implement programs
to offset the travel requirements of the
team in the lead up to Paris 2024.
The Arts
Qantas is proud to be the official airline
and major partner of the National Gallery
of Australia and a major partner of the
National Gallery of Victoria. Qantas is also
a proud supporter of the Museum of Old
and New Art (MONA), in Hobart, Tasmania.
Qantas is the official Aboriginal and Torres
Strait Islander exhibition and program
partner of the Museum of Contemporary
Art (MCA).
Cricket Australia
Our partnership with Cricket Australia has
seen us carry Australian cricket teams
around Australia and the globe since
2011. This support continued in FY22,
with cricket competitions continuing
throughout COVID-19.
Opera Australia
Opera Australia performs operas,
musicals and concerts across Australia.
As the official airline and hero partner of
Opera Australia, Qantas is proud to help
deliver an annual schools’ and Auslan
program, supporting many of these
performances to be delivered virtually
during the COVID-19 pandemic.
Football Australia
Qantas is proud to have partnered with
Football Australia for over 20 years,
extending our support to both the
Socceroos and the Matildas across major
competitions and World Cup campaigns.
Our partnership focuses on bringing the
game to all and championing diversity
and equality on an even playing field.
The Australian Ballet
The Australian Ballet is one of Australia’s
flagship arts companies. As the official
airline and lead partner of The Australian
Ballet, our support enables dancers, crew,
and artists to travel domestically and
internationally.
Our focus in FY23 will include:
— Emphasising our commitment to giving back and building positive sentiment within Australian communities as well
as engaging Qantas employees through our partnership and grants programs.
— Reaffirming our commitment to LGBTQI+ communities by resuming our partnership with the Sydney Gay
and Lesbian Mardi Gras (SGLMG) organisation and becoming a major partner of World Pride 2023 in Sydney,
with a focus on engaging regional communities with the festival and honouring the First Nations people of the
Sydney region.
— Working with the Australian Olympic Committee to achieve their sustainability goals by being a member of the AOC
Sustainability Advisory Working Group and looking at ways to offset the travel-related emissions associated with
the team in the lead up to Paris 2024.
— Refreshing the Qantas Group Workplace Giving program.
Photo: The Australian Olympic Team departing from Cairns, Queensland for the Tokyo 2020 Olympic Games. (The 2020 Games were held in 2021 as a result
of COVID-19 impacts.)
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Aboriginal and Torres Strait Islander partnerships
OUR APPROACH
Our vision for reconciliation is a shared national identity that celebrates the knowledge and cultures of Aboriginal and Torres Strait
Islander peoples. We believe this will be achieved through greater social, economic and cultural inclusion of Aboriginal and Torres
Strait Islander peoples.
RECONCILIATION ACTION PLAN
Through our partnership with Reconciliation Australia, we seek to honour knowledge and celebrate Aboriginal and Torres Strait
Islander culture.
We launched our first Reconciliation Action Plan (RAP) in 2007 and our first Elevate RAP in 2015. We had anticipated launching the
next iteration of our Elevate RAP in 2020 but were unable to do so due to the impacts of COVID-19. We released an interim RAP in
January 2021, which was expanded to include actions for all parts of the Qantas Group, including Jetstar.
At the beginning of 2022, Qantas Group employees were invited to complete a Reconciliation Australia Leadership Survey with results
to be used to support the development and implementation of the new RAP.
We remain committed to achieving our RAP, and the obligations of the Elevate RAP, which is built on five pillars.
Sustainable
Aboriginal
and Torres
Strait Islander
careers
Collaboration
and
accountability
Creating an
Australian
customer
experience
Cultural
inclusion and
celebration
Aboriginal
and Torres
Strait Islander
economic
development OUR VISION
FOR RECONCILIATION
IS A SHARED
NATIONAL IDENTITY
R E L AT I O N S H I
P S
G O V E R N A N C E
O P P O R T U N I T I E
S
R E S P E C T
ABORIGINAL AND TORRES STRAIT ISLANDER ECONOMIC DEVELOPMENT
A key part of our vision for reconciliation is the economic inclusion of Aboriginal and Torres Strait Islander peoples. We recognise the
mutual benefit of doing business with Aboriginal and Torres Strait Islander suppliers.
Our commitment to support Aboriginal and Torres Strait Islander suppliers remained a priority during the pandemic. The Qantas Group
will continue to support Aboriginal and Torres Strait Islander economic inclusion by increasing the diversity of our supplier base.
To improve cash flow and business outcomes for Aboriginal and Torres Strait Islander owned businesses, in FY23 the Qantas Group
will implement a reduction in payment times for Aboriginal and Torres Strait Islander suppliers. This change will also be rolled out
to applicable Australian-based small businesses.
Qantas is a founding member of Supply Nation, a not-for-profit organisation which connects Australian companies
and government with Aboriginal and Torres Strait Islander businesses. In 2022, we once again sponsored Connect, Supply Nation’s
annual flagship event for the Aboriginal and Torres Strait Islander business sector with a focus on showcasing the calibre of diverse
Aboriginal and Torres Strait Islander businesses.
Our commitment to Aboriginal and Torres Strait Islander economic development is reflected in our investment in carbon offset
projects such as our long-standing partnership with the Kimberley Land Council. This program employs Aboriginal and Torres Strait
Islander rangers in Northern Australia, who use traditional practices to promote the regeneration of native vegetation. Kimberley Land
Council is a key beneficiary of the introduction of the Green Tier for Qantas Frequent Flyers.
Qantas also participated in the 2021 National Roadmap for Indigenous Skills, Jobs and Wealth Creation roundtables to inform policy
to bring about change and ensure Aboriginal and Torres Strait Islander Australians are equipped with the right skills to meet the needs
of industry and advance jobs and wealth for Aboriginal and Torres Strait Islander peoples.
SUSTAINABLE ABORIGINAL AND TORRES STRAIT ISLANDER CAREERS
Information about our approach and initiatives can be found on page 40.
CASE STUDY
Fighting fire with fire — Fire management, Arnhem Land, the Northern Territory.
In the absence of fire management by Aboriginal Traditional Landowners, Arnhem Land in the Northern Territory
is prone to extreme, devastating wildfires that damage the landscape, including rock art galleries, cultural sites
and biodiversity. Arnhem Land Fire Abatement (ALFA) is an Aboriginal owned, not-for-profit carbon farming business
that supports Aboriginal Traditional Owners and rangers to utilise customary fire knowledge and skills in tandem
with contemporary technology to accomplish highly sophisticated landscape-scale fire management. Qantas is
partnering with ALFA to purchase carbon credits to support emissions reduction. This will commence in FY23.
Photo: Pictured are rangers from the ALFA project. The number of women involved in fire management across ALFA’s
project areas has increased significantly over the previous five years, with many ranger groups achieving gender
equity within their respective workforces.
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CULTURAL INCLUSION AND CELEBRATION
Cultural awareness for our customers
As the national carrier, we are uniquely positioned to connect people to the world’s oldest living cultures through our domestic
and international networks.
We include Acknowledgement of Country across all Qantas and Jetstar services, with a specific acknowledgement for incoming
Qantas international flights and some Jetstar flights. The Acknowledgement of Country is aimed at raising awareness among our
customers of the history of our country and making this recognition a part of our everyday language.
We have also introduced maps of First Nations Australia from the Australian Institute of Aboriginal and Torres Strait Islander Studies
(AIATSIS) in our lounges.
Qantas continues to commit to multi-channel campaigns for both NAIDOC and National Reconciliation Weeks to promote positive
relationships between Aboriginal and Torres Strait Islander peoples and non-First Nations people.
During NAIDOC week we supported the campaign to ‘Heal Country, Heal Nation’ for stronger measures to recognise, protect, and
maintain all aspects of Aboriginal and Torres Strait Islander culture and heritage. We did this by showcasing our partnership with
the Kimberley Land Council in relation to our carbon offset programs across our marketing and internal communication channels.
Cultural capability of our employees
Information about our approach and initiatives can be found on page 40.
CASE STUDY
National Reconciliation Week
On 25 May 2022, we recognised National Reconciliation Week (27 May – 3 June 2022) by hosting a panel who
discussed their personal reflections on reconciliation, the progress being made across Qantas and other industries,
and the role everyone has in championing reconciliation. Qantas employees were joined by Karen Mundine, CEO
Reconciliation Australia and Allira Davis, Co-Chair of Uluru Dialogue who discussed both the importance and the
complexities of achieving reconciliation.
Over the week, we incorporated Aboriginal and Torres Strait Islander ingredients into our lounge menus and displayed
wall decals across our locations, encouraging everyone to think about how they can contribute to reconciliation.
Photo: From left to right: Kylene Anderson, Senior Consultant, Qantas Inclusion and Diversity team; Reconciliation Australia’s CEO, Karen
Mundine; and Uluru Dialogues Youth Manager, Allira Davis, during a National Reconciliation Week 2022 panel discussion at Qantas in Sydney,
New South Wales.
CASE STUDY
Uluru Statement from the Heart
In 2019, Qantas joined other organisations to provide public support for The Uluru Statement from the Heart.
The Uluru Statement from the Heart aims to enshrine an Aboriginal and Torres Strait Islander Voice in the Australian
Constitution and a Makarrata Commission on agreement-making and truth-telling between Aboriginal and Torres Strait
Islander peoples and governments.
Qantas has long supported constitutional recognition for Aboriginal and Torres Strait Islander peoples to allow
continuity of Voice, and the opportunity to make real, long-term change.
In April 2021, Qantas provided a public submission to the Indigenous Voice Co-design Process Interim Report in which
we recognised the importance of the voices of Aboriginal and Torres Strait Islander peoples in the reconciliation
process and supported a referendum for an Enshrined Voice in the Australian Constitution. As the national carrier,
Qantas is committed to supporting the campaign for the Uluru Statement from the Heart to be implemented in full.
Photo: Team member Marnie Bathis viewing The Uluru Statement from the Heart.
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CREATING AN AUSTRALIAN CUSTOMER EXPERIENCE
Aboriginal and Torres Strait Islander cultures are integral to the spirit of Australia and we seek to amplify this throughout our
customers’ journeys.
In addition to the inclusion of an Acknowledgement of Country across all Qantas and Jetstar services, we have committed to increase
Aboriginal and Torres Strait Islander representation across major Qantas brand campaigns and advertising to promote Aboriginal and
Torres Strait Islander knowledge and cultures.
The March 2022 launch of the I Still Call Australia Home advertising campaign showcased a diverse range of Aboriginal and Torres
Strait Islander culture and country, including an opening scene featuring Aboriginal Elder Rene Kulitja at Uluru-Kata Tjuta National
Park, Adam Goodes, Ash Barty and long-term partners, Bangarra Dance Theatre.
Both Qantas and Jetstar have also focused on promoting responsible Aboriginal and Torres Strait Islander tourism experiences
in collaboration with state tourism organisations, on websites and social media channels.
Qantas partnered with and attended the 2022 Australian Indigenous Tourism Conference with a focus on examining current
and future travel trends for Aboriginal and Torres Strait Islander operators and to enhance relationships to help grow the industry.
COLLABORATION AND ACCOUNTABILITY
Reconciliation requires a national effort and we are excited about the growth of the RAP community. We continue to share learnings
with the RAP community, both informally and through Reconciliation Australia’s reporting processes.
In FY22, Qantas’ internal RAP Executive Steering Committee and working groups were relaunched and Aboriginal and Torres Strait
Islander advisors were engaged to ensure adequate governance, community consultation and leadership accountability in Qantas’
approach to reconciliation.
Our focus in FY23 will include:
— Developing our new RAP which we intend to launch in 2023. It will focus on delivering practical efforts to support
Aboriginal and Torres Strait Islander peoples and create shared value through employment, procurement, deep
partnerships with community and ensuring that Aboriginal and Torres Strait Islander cultures and experiences are
amplified throughout the customer journey. We are also consulting with Aboriginal and Torres Strait Islander-led
industry and community groups on the development of the RAP
— Updating our Aboriginal and Torres Strait Islander employee engagement and development strategy to drive
improved retention of Aboriginal and Torres Strait Islander employees and recruitment across the Qantas Group,
with a focus on participation beyond entry level roles
— Implementing a reduction in payment times for Aboriginal and Torres Strait Islander suppliers
— Reviewing the Qantas Group procurement strategy with a focus on enhancing and growing current supplier
relationships and implementing an operational framework to build Aboriginal and Torres Strait Islander
supplier opportunities.
Photo: Dancers from Bangarra Dance Theatre on Country as featured in Qantas’ I Still Call Australia Home advertising campaign.
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Non-financial metrics
The Qantas Group is committed to transparency of key performance indicators, including environmental and social metrics. Financial
performance can be found in the FY22 Annual Report.
KPMG provided Limited Assurance over selected sustainability metrics. The assurance statement can be found on page 61.
CUSTOMER
Metric Unit FY22 FY21 FY20 FY19
On-time performance1 % 73.9 85.5 76.6 79.2
Brand preference2 % 68 68 71 71
Domestic NPS — Gap over major competitor3 Score N/A N/A N/A 14.9
SAFETY
Metric Unit FY22 FY21 FY20 FY19
Total Recordable Injury Frequency Rate4 TRIFR 12.9 17.0 16.7 24.4
Lost Work Case Frequency Rate5 LWCFR 6.5 5.4 7.5 9.3
Fatalities # 0 0 0 0
COMMUNITY
Metric Unit FY22 FY21 FY20 FY19
Total supplier spend6 $M 6,500 4,227 9,790 12,571
Australian supplier spend7 $M 4,503 2,782 5,820 7,800
Aboriginal and Torres Strait Islander supplier spend8 $M 3.69 3 3 2.2
Total community partnerships investment9 $M 2.6 0.2 4.4 3.1
Proportion of Aboriginal and Torres Strait Islander
community partnership investment10 % 49 31.2 19.1 35.0
Total Change for Good UNICEF donations11 $M 0.07 0.05 1.2 1.9
Total StarKids World Vision donations12 $M 0.3 0.3 0.8 1.0
PEOPLE
Metric Unit FY22 FY21 FY20 FY19
Number of full-time equivalent employees13 # 21,847 20,640 28,957 29,055
Percentage of employees under a collective bargaining agreement14 % 85.8 85.8 83.3 79.8
Voluntary employee turnover14 % 10.4 11.2 4.3 5.5
Percentage of women14 % 44.8 43.6 42.5 42.0
Percentage of women in senior positions14 % 37.4 38.1 37.0 35.9
Percentage of women on the Qantas Board14 % 37.5 40.0 40.0 36.4
Number of women on the Qantas Board14 # 3 4 4 4
Percentage of women recruited into the graduate program14 % N/A N/A 47.5 34.4
Number of Aboriginal and Torres Strait Island employees14 # 203 198 329 408
ENVIRONMENT
Metric Unit FY22 FY21 FY20 FY19
CO
2-e emissions — Total (Scope 1 and 2)17, 30, 32 Tonnes 4,799,301 3,301,736 9,424,641 12,493,616
CO
2-e emissions — Scope 118, 29, 30, 32 Tonnes 4,734,407 3,236,753 9,340,721 12,372,735
CO
2-e emissions — Scope 219, 29 Tonnes 64,894 64,983 83,920 120,881
CO
2-e emissions — Scope 323, 29 Tonnes 459,788 218,276 882,401 1,212,055
CO
2-e emissions — Total24, 30, 32 Tonnes 5,259,089 3,520,012 10,307,042 13,705,671
CO
2-e emissions — Domestic20, 33 Tonnes 3,128,910 2,530,174 3,438,403 4,412,114
CO
2-e emissions — International21, 30, 32, 33 Tonnes 1,670,391 771,562 5,986,238 8,081,502
CO
2-e per 100 RTKs (Group Efficiency)22, 30, 32 Kg 123.36 139.6 96.9 92.5
Metric Unit FY22 FY21 FY20 FY19
Aviation fuel consumption15, 30 ‘000 L 1,874,258 1,277,126 3,689,670 4,888,697
Fuel per 100 RTKs (Group Efficiency)16, 31 L 51.00 55.4 37.95 36.2
SAF consumption L 3,168,332 – – –
SAF derived CO
2-e emission abatement Tonnes 7,218 – – –
Electricity consumption (Australia)34 MWh 82,030 82,428 101,941 144,955
Onshore waste to landfill (including quarantine) (Australia)26, 29 Tonnes 9,190 4,318 15,166 13,209
Water consumption (Australia)27, 29 ‘000 L 420,793 363,965 477,856 800,019
Natural gas consumption (Australia)25 GJ 101,939 94,190 109,424 165,586
Diesel (Australia) L 3,272,869 4,029,659 4,215,738 5,413,826
Av. aircraft age — scheduled passenger fleet28 Years 14.7 12.8 11.9 11.1
Scope includes Qantas Airways Limited and its wholly-owned entities unless stated otherwise. These form the Group’s respective business segments,
including Qantas International (including Qantas Freight), Qantas Domestic (including QantasLink and Network Aviation), Qantas Loyalty and Jetstar Group
(including Jetstar International and Jetstar Domestic).
1. On-time performance as measured by the percentage of flights departing within 15 minutes of scheduled departure for Total Group operations, including
Qantas International, Qantas Domestic, QantasLink, Jetstar International and Jetstar Domestic, including Jetstar Domestic New Zealand.
2. Brand Preference — Best Products and Services indicates percentage of customers who agree with the statement ‘Qantas is focused on providing the best
products and services to its customers’. Source: Reputation Tracker, based on Australian Population.
3. Domestic operational NPS — Average Qantas Domestic Gap to Competitor, based on internal Qantas reporting. This reporting has been paused during the
COVID-19 pandemic. Not reported in 2019/20, 2020/21 and 2021/22 due to the impact of COVID-19 on the availability of robust data over the full-year period.
4. Total Recordable Injury Frequency Rate (TRIFR): The total number of injuries or illnesses during work hours (1 July to 30 June) with an accepted workers’
compensation claim for Australian-based personnel, or equivalent in other jurisdictions, per million hours worked. Journey and slip port injuries and illnesses
from COVID-19 excluded from this calculation. This metric includes embedded contractors who work exclusively for the Qantas Group and perform work that is
considered core business. Scope: TRIFR for both domestic and international operations: Qantas (International, Domestic), Qantas Freight, Jetstar Australia and
New Zealand, QantasLink, Network Aviation, National Jet Systems, and Non-Flying Businesses (all corporate areas including Loyalty). TRIFR has been restated
for FY21 and FY20 with COVID-19 claims and claims from outsourced sections of the organisation removed from the data.
5. Lost Work Case Frequency Rate (LWCFR): Described as the total number of injuries or illnesses during work hours (1 July to 30 June) with an accepted workers’
compensation claim for Australian-based personnel, or equivalent in other jurisdictions, which resulted in total incapacity, per million hours worked. Total
incapacity is defined as any injury or illness that results in an injured worker being unfit for work. Journey and slip port injuries and illnesses from COVID-19
excluded from this calculation. This metric includes embedded contractors (as described above) and employees of majority-owned entities of the Qantas
Group. Scope: LWCFR for both domestic and international operations: Qantas (International, Domestic), Qantas Freight, Jetstar Australia and New Zealand,
QantasLink, Network Aviation, National Jet Systems, and Non-Flying Businesses (all corporate areas including Loyalty). LWCFR has been restated for FY21 and
FY20 with COVID-19 claims and claims from outsourced sections of the organisation removed from the data.
6. Total supplier spend excluding payments processed through IATA clearing account and direct bank deposits for the purposes of aircraft lease payments.
7. Australian supplier spend where supplier headquarters are located in Australia.
8. Aboriginal and Torres Strait Islander supplier spend includes suppliers that are Supply Nation registered or certified as well as known Aboriginal and Torres
Strait Islander suppliers.
9. Total Qantas community partnerships investment excludes donations facilitated through other areas of the business and voluntary logistical support provided
to the Australian Government in times of crisis. Due to the impact of COVID-19 on business operations and our people, the Group paused the majority of
sponsorship activity in FY21, including community and reconciliation investment.
10. Proportion of total community investment directed to Aboriginal and Torres Strait Islander programs, promotion and partnerships. The percentage increase
from FY21 to FY22 reflects the continued focus on Aboriginal and Torres Strait Islander programs, promotion and partnerships in FY22, compared with
a decrease in overall community partnership investment.
11. Total UNICEF donations facilitated through Qantas’ Change for Good program. The majority of the UNICEF collection is through our international services
which were largely suspended in FY21. FY21 data has been restated due to a rounding error. The program resumed in December 2021.
12. Total World Vision donations facilitated through Jetstar’s StarKids program.
13. Total number of employees of wholly-owned entities of the Qantas Group, as well as Jetstar Asia Airways Pte Ltd, and majority owned entities Holiday Tours
and Travel Ltd, Taylor Fry Holdings Pty Ltd and Trip A Deal Pty Ltd, by employment type, full-time or part-time.
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14. Composition of governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership and
other indicators of diversity is limited to total workforce of wholly owned entities of Qantas Airways Limited broken down by gender, age group and Aboriginal
and Torres Strait Islander employees as well as women in the following positions: Non-Executive Directors and Senior Management. Gender diversity indicators
are consistent with diversity policy and targets, measured as at 30 June.
15. The total volume of aviation kerosene consumed by the Qantas Group’s flying businesses from 1 July to 30 June. Scope: Aviation fuel consumption where
the flight is operated solely for the purpose of the Qantas Group. This includes for both domestic and international operations: Qantas Airways, Jetstar
Australia and New Zealand, QantasLink, Network Aviation and Qantas Freight. This does not include aviation fuel consumed by Jetstar Asia, Jetstar Japan
or codeshare partners.
16. Fuel per 100 revenue-tonne-kilometres (RTKs). RTKs quantifies the Qantas Group’s fuel efficiency, which is described as the amount of revenue-generating
payload carried for the distance flown. Total number of tonnes of paying passengers, freight and mail carried, multiplied by the number of kilometres flown.
Scope: Fuel per 100 RTKs includes, for both domestic and international operations: Qantas Airways, Jetstar Australia and New Zealand, QantasLink, Network
Aviation and Qantas Freight.
17. Total Scope 1 and Scope 2 greenhouse gas emissions are measured in tonnes for the period 1 July to 30 June. Refer to relevant footnotes for Scope 1
and Scope 2.
18. Total direct greenhouse gas emissions (Scope 1) measured in tonnes for the period 1 July to 30 June. Scope 1 emissions include aviation fuel and other
fuels and gases from both domestic and international operations. For domestic emissions, the Qantas Group applies the National Greenhouse and Energy
Reporting (NGER) Measurement Determination factors and methodology. For international emissions, the Qantas Group applies International CORSIA factors
and methodology. The Qantas Group is a CORSIA participant and aligns international emissions disclosure with the CORSIA regulatory framework. All emissions
are reported as CO2 equivalent. CH4 and N2O have been applied to all emissions per their NGER Measurement Determination factors. Scope: All activities under
operational control of the Qantas Group.
19. Total indirect greenhouse gas emissions (Scope 2) measured in tonnes for the period 1 July to 30 June. Scope 2 emissions include indirect emissions from
consumption of purchased electricity. The Qantas Group applies the National Greenhouse and Energy Reporting (Measurement) Determination factors for the
calculation of CO
2-e, except for Tri-Generation associated emissions where the Qantas Group applies a facility-specific emission factor. Emission factors for
the consumption of purchased electricity from the grid are updated annually to reflect changes in energy mix. Scope: All activities under operational control
of the Qantas Group.
20. Total direct and indirect greenhouse gas emissions from domestic operations. Domestic operations include all emissions from activities reported under the
National Greenhouse and Energy Reporting (Measurement) Determination.
21. Total direct and indirect greenhouse gas emissions from international operations. International operations include all emissions from international aviation
fuel consumption.
22. Greenhouse gas emissions (Scope 1 and 2 only) intensity measured in kilograms of CO2-e per 100 revenue-tonne-kilometres (RTKs) converted to CO2-e tonnes
by the National Greenhouse and Energy Reporting (Measurement) Determination factors. Scope: All flights operated solely for the purpose of the Qantas Group,
and all activities under the control of the Qantas Group.
23. Total indirect greenhouse gas emissions resulting from value chain activities (Scope 3) measured in tonnes for the period 1 July to 30 June. Scope 3 emissions
inclusions are informed by the GHG Protocol Corporate Value Chain (Scope 3) Accounting & Reporting Standard and Australian Climate Active Carbon Neutral
Standard. Fuel-related activities and food and beverage related purchased goods make up the majority of total scope 3 emissions. The Qantas Group reports
on Scope 3 indirect emissions within operational control and of material relevance. The Qantas Group also offsets all employee and contractor business travel
under our Fly Carbon Neutral program, therefore all business travel emissions are excluded from our emissions profile to prevent double counting. Where
possible, the Qantas Group is informed by the Australian Government’s Climate Active Carbon Neutral Standard for Products and Services to determine our
Scope 3 emissions using National Greenhouse Accounts (NGA) emissions factors for the calculation of CO2-e.
24. Total Scope 1, Scope 2 and Scope 3 greenhouse gas emissions measured in tonnes for the period 1 July to 30 June.
25. The total amount of electricity consumed as measured in megawatt hours (MWh), natural gas measured in gigajoules (GJ) and diesel measured in litres (L)
where separately billed to Qantas wholly-owned entities within Australia for the period 1 July to 30 June.
26. Total onshore waste to landfill (including quarantine waste) measured in tonnes for the period 1 July to 30 June. This includes all waste delivered from Qantas
Group premises directly to landfill where the Qantas Group is responsible for the waste removal and is separately billed to Qantas wholly-owned enterprises
by a waste service provider. Where Qantas Group has not been separately billed and can reasonably influence waste management procedures, as in the case
of inflight waste, an estimated process was applied based on prorated waste generated. Scope: All activities under operational control of the Qantas Group
(excludes Jetstar Asia, Jetstar Japan and Jetstar Pacific).
27. Water consumption is measured in kilolitres (‘000 L) for the period 1 July to 30 June, separately billed to Qantas wholly-owned onshore entities.
Scope: All activities under operational control of the Qantas Group (excludes Jetstar Asia, Jetstar Japan and Jetstar Pacific).
28. Average fleet age — scheduled passenger fleet is calculated by determining the average age of the Group’s scheduled passenger fleet based on
manufacturing dates. Scope: The scheduled passenger fleet of the Qantas Group, including both owned and leased aircraft. The Qantas Group’s scheduled
passenger fleet does not include dedicated freighters and Network Aviation F100 fleet.
29. KPMG was engaged to provide limited assurance over selected sustainability metrics (water consumption in ‘000 litres, onshore waste to landfill
(including quarantine) in tonnes, Scope 1, Scope 2 and Scope 3 emissions measure in tCO2-e for the period 1 July 2021 to 30 June 2022.
30. The figures reported for 1 July 2020 to 30 June 2021, were restated as at 1st February 2022. The restatement corrects double counting of international freight
fuel included in two business divisions, resulting in a 13 per cent reduction in Scope 1 emissions.
31. The figures reported for 1 July 2020 to 30 June 2021 have been restated. The restatement applies a consistent RTK calculation methodology across all years.
The change reflects a 4.7% decrease in Fuel per 100 RTKs from 58.13 to 55.4.
32. International CO
2-e emissions for FY19, FY20 and FY21 have been restated. The Qantas Group is a CORSIA participant and this restatement aligns international
emissions disclosure with the CORSIA regulatory framework including the Group’s Climate Action Plan 2019 baseline. To maintain consistency of reporting
CO
2-e, CH4 and N2O have been applied per their NGER Measurement Determination factors. This revision increases international emissions by approximately
1 per cent in each year.
33. The figures reported for 1 July 2020 to 30 June 2021 have been reclassified. The reclassification results in a change of the split between international
and domestic emissions. Total emissions remain unchanged.
34. Electricity (Australia) reported for FY21 has been restated to correct the omission of an electricity source. The restatement results in a 52 per cent increase
in electricity consumption from 53,845 to 82,428 MWh and does not impact Scope 2 or Total CO2-e emissions.
More Information:
For more information or if you would like to provide feedback on this Report, please contact:
[email protected]
INDEPENDENT LIMITED ASSURANCE REPORT TO THE DIRECTORS OF QANTAS AIRWAYS LIMITED
OUR CONCLUSION:
Based on the evidence we obtained from the procedures
performed, we are not aware of any material misstatements
in the Selected Sustainability Information, as described
below, which has been prepared by Qantas Airways Limited
in accordance with the management measurement
methodologies for the year end 30 June 2022.
INFORMATION SUBJECT TO ASSURANCE
The Selected Sustainability Information, as presented in the
Qantas Airways Limited (Qantas) Sustainability Report 2022
(the Sustainability Report) and available on Qantas’ website
comprised of the following:

The criteria used in relation to the Selected Sustainability
Information are Qantas’ management measurement
methodologies as disclosed in the Sustainability Report.
BASIS FOR CONCLUSION
We conducted our work in accordance with Australian
Standard on Assurance Engagements ASAE 3000 (Standard).
In accordance with the Standard we have:
• used our professional judgement to plan and perform the
engagement to obtain limited assurance that we are not
aware of any material misstatements in the information
subject to assurance, whether due to fraud or error;
• considered relevant internal controls when designing our
assurance procedures, however we do not express a conclusion
on their effectiveness; and
• ensured that the engagement team possess the appropriate
knowledge, skills and professional competencies.
SUMMARY OF PROCEDURES PERFORMED
Our limited assurance conclusion is based on the evidence
obtained from performing the following procedures:
• enquiries with relevant Qantas personnel to understand
the internal controls, governance structure and reporting
process of the Selected Sustainability Information;
• reviews of relevant documentation including Qantas’
management measurement methodologies, and relevant NGER
legislation;
• analytical procedures over the Selected Sustainability Information;
• walkthroughs of the Selected Sustainability Information
to source documentation;
• evaluating the appropriateness of the criteria with respect
to the Selected Sustainability Information; and
• review of the Sustainability Report in its entirety to consider
whether it is consistent with our assurance work.
HOW THE STANDARD DEFINES LIMITED ASSURANCE AND
MATERIAL MISSTATEMENT
The procedures performed in a limited assurance engagement
vary in nature and timing from, and are less in extent than for
a reasonable assurance engagement. Consequently the level
of assurance obtained in a limited assurance engagement
is substantially lower than the assurance that would have
been obtained had a reasonable assurance engagement
been performed.
Misstatements, including omissions, are considered material if,
individually or in the aggregate, they could reasonably be expected
to influence relevant decisions of the Directors of Qantas.
INHERENT LIMITATIONS
There are inherent limitations in performing assurance —
for example, assurance engagements are based on selective
testing of the information being examined — and because of
this, it is possible that fraud, error, or non-compliance may
occur and not be detected. An assurance engagement is
not designed to detect all misstatements, as an assurance
engagement is not performed continuously throughout the
period that is the subject of the engagement and the procedures
performed on a test basis. The conclusion expressed in this
report has been formed on the above basis. Additionally, nonfinancial data may be subject to more inherent limitations than
financial data, given both its nature and the methods used
for determining, calculating, and sampling or estimating such
data. We specifically note that Qantas has used estimates
or extrapolated underlying information to calculate certain
amounts included within the Selected Sustainability Information.
USE OF THIS ASSURANCE REPORT
This report has been prepared for the Directors of Qantas
for the purpose of providing an assurance conclusion on the
Selected Sustainability Information and may not be suitable for
another purpose. We disclaim any assumption of responsibility
for any reliance on this report, to any person other than the
Directors of Qantas, or for any other purpose than that for
which it was prepared.
MANAGEMENT’S RESPONSIBILITY
Management are responsible for:
• determining that the criteria is appropriate to meet their needs;
• preparing and presenting the Selected Sustainability Information
in accordance with the criteria; and
• establishing internal controls that enable the preparation
and presentation of the Selected Sustainability Information
that is free from material misstatement, whether due to fraud
or error.
OUR RESPONSIBILITY
Our responsibility is to perform a limited assurance engagement
in relation to the Selected Sustainability Information for the
year end 30 June 2022, and to issue an assurance report that
includes our conclusion.
OUR INDEPENDENCE AND QUALITY CONTROL
We have complied with our independence and other relevant
ethical requirements of the Code of Ethics for Professional
Accountants (including Independence Standards) issued by
the Australian Professional and Ethical Standards Board,
and complied with the applicable requirements of Australian
Standard on Quality Control 1 to maintain a comprehensive
system of quality control.
KPMG, Sydney
9 September 2022
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited,
a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member
firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation.
QANTAS AIRWAYS LIMITED
ABN 16 009 661 901