 Maia, maia, maia, maia, maia, maia, maia... Maia, maia, maia, maia, maia... Maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, maia, ma In lots of people have gone through, both to PAPA and Eaucula Museum looking at the exhibition that we've had in place. But for those of us close to that we've spent a lot of time looking through the RQ, bein involved with different projects, communicating different activity thats been in place. But the one consistent you see when you look at Eiekisian New Zealand's involvement, when you go to the exhibition, is just this fundamental connection to New Zealand through the years. We absolutely ride the highs and lows of the nation in so many different ways Ngāli Aparwara kai pa i au rei i polaiai pieta-naita ka whaitaka i te atatura i kanana. Pa i kaito i opaiai i awdurau i i Justice Minister o Pa kai beta te i-ēreni. Pai i kai piaidostia i wahanau, ati hori i wahanau skolisaka kai i athara i tisziata lui. Pa i athara i kai piaidostia i'r iakMoona, i Pa i ia i i mtisziata wahanau ia. Apoi i New Zealand ma yt coriander ia rungi, i Pa i kai i wahanau ia rungi, i wahanau ia rungi. Pa i kai i mtisziata i taipu koncenta. New Zealand that is fundamentally important to our long-term success and our ability to respond to that in the future really will determine our success for a long period of time. The other point I'll make is that 75 years of course gives us quite an interesting backward-looking kind of time period. So, often we hear about climate change projections, typically looking at 2,100. Of course that seems like this sort of infinitely long period of time for a lot of people, but for us when we reflect back 75 years it doesn't feel like it's that long. We can look at images, we can look at the first flight that took place back 75 years. Of course looking out 75 years, we're at 2091. Now it's actually pretty close to those projection periods, and so some of that stuff starts to become a little bit more real for us when we look at it in that manner. So a couple of reasons why the 75th anniversary has been important for us and the way we look at things. And so at NZ we have this one-page summary of our business strategy. I'm not going to go into it into any detail. Christopher Lux has introduced this when he became the CEO. But what we put into the top line there, as you can see there, is this idea of our significance to supercharge NZ's success economically, socially and environmentally. And that's very much the kind of programme that we've put in place from a sustainability perspective. We don't tend to use sustainability a huge amount internally as a word. We're more around what's our role within NZ as a country. And so I'll try and go through a little bit of what we're doing there because that's fundamentally what our programme is about. So over the past couple of years we've spent a lot of time trying to frame up what does it actually mean, what does supercharge NZ's success mean and how would we turn that into some kind of meaningful programme of activity that in particular our people at NZ can understand, can relate to and can get involved with as well as being able to be communicated externally, have it reported against those types of things. Which is really, really important obviously for us as an organisation. And it seems really simple but actually took quite a long time and required quite a lot of thinking to even get to a relatively simple piece like that. There's certainly, as any of you who have worked in large corporates know, there's lots of people with lots of opinions about lots of things. So getting into any kind of singular kind of one-page state is quite an interesting challenge. So there's three kind of pillars as we see with most sustainability actively a social and environmental and an economic component to it. And the way that we've broken that down within is into six areas. So in the social kind of pillar there the first one is around our people. So essentially being a world-class employer and so that's things like we've got a target to have at least 40% of our senior leadership team female by 2020, we've got big health and safety targets, we've got diversity targets and support across the company and then engagement targets. That kind of thing is what we've looked at primarily there. The second one is about our communities, the way in which we interact with primarily New Zealand communities and the role that we can play there. And to be fair this is probably the area that we find hardest to define and have influence around. But we've done a bit of research to try and get a sense for what New Zealanders think about that and so we're doing a bit of work there. But that's things for us like we do a lot around disaster relief in response to crises in the Pacific. We're increasingly looking at things like environmental education and the role that we can play there. You might have seen recently we announced a new airpoints for schools programme giving the chance for schools to receive airpoints. So there's a lot there and one of the big pieces and Lou touched on this is an increased focus around multicultural in the way in which we can have a greater impact there. Re-introducing, I would say, to a certain extent, multicultural back into the organisation particularly from an internal and customer engagement perspective as well as potentially partnering with iwi groups in different forms which we do a little bit of currently through the partnership with DOC but there's much more we can do in that space as well. So that's the kind of communities piece. The environmental side is much easier for us to define and much harder for us to really, really nail to a certain extent. I'll talk a bit about carbon at the back end of the presentation but it's clearly the biggest single issue for us as an airline and so there's a lot that's happening there and I'll talk about that at the end. Lou's touched on our partnership with DOC and for us, biodiversity and our contribution to New Zealand's nature is a really important part of the story and this comes back to the idea of supercharging New Zealand's success in a kind of holistic way. So when I go overseas, people talk to me, you're an airline, why are you talking about biodiversity for us? Why are you talking about carbon? You're just going to get distracted if you do that and that's kind of fine if you're just an airline but we're going to see ourselves as being a little bit more than that. The connection to New Zealand is so fundamental to us. The role that tourism has within the country and the role that nature plays with the New Zealand tourism experience means that we have to look at things more holistically and so the partnership with DOC is a really, really important part of that for us and that's why we've got a partnership that's based on tourism properties and all really based on our ability to make a contribution to conservation within those sites and then enable New Zealanders and foreign visitors to have an interaction that hopefully is more engaged from a straight conservation perspective. And the other thing that we bring to the table and Lou touched on this there is the strength that we can obviously bring to the table that DOC will struggle with and the biggest single one there that we have over DOC of course is I guess marketing skills and outreach through the channels that we have and the ability to get people talking and thinking about conservation in a way that feels more real and accessible because of the nature of our brand is a really important part that we can play and hopefully we're doing that reasonably well. And the economic space, this is a lot more standard kind of practice obviously for us as a business but huge role within tourism. A key part though that we're looking at there is not just the kind of growth components but what is the role that we can play in terms of ensuring that there's a sustainable tourism in the country. So we know that tourism has either become or it's just about to become the largest foreign exchange unit for New Zealand again and that growth is fantastic from an economic perspective for the most part but obviously it brings some real challenges in terms of environmental and social impact and how do we ensure that actually those negative benefits aren't realised but the positive economic benefits are and so we're trying to figure that out at the moment. We don't have a real handle on it but we're doing quality work internally and then ultimately we'll attempt to try to figure out what that might look like. And then the final piece there, Trading Enterprise, a lot of that's really about how we interact with New Zealand business, showcasing New Zealand products and services on board and in particular working with our supply chain overall to improve their social and environmental performance and we've reintroduced a far more advanced supply code of conduct and we're now forming joint business plans with a lot of our really key and large suppliers around what can we do in that particular space. A real summary, really quick summary of the framework, there's lots of data and action that sits in behind that but I wanted to give you a sense for what we're talking about there in a pretty holistic form. So I just want to quickly touch on three things that we have learnt through the journey that we've been on over the past couple of years and the way in which I'd compare that to probably other New Zealand businesses and particularly New Zealand corporates and where I think we've probably seen things that could be used elsewhere and the first from a corporate perspective is that I think what happens often in the sustainability space is that people kind of get into this kind of box ticking exercise where they're just trying to almost meet as many things within the sort of GRI recording frame or elements like that as possible but the key challenge really I think is to fundamentally understand the organisation that you're a part of and respond in a way that makes sense for the story and the brand and so for us obviously carbon's a really important part but obviously we see ourselves as more than just an airline so we've been New Zealand's most preferred employer, we're the most trusted brand we've got this long term connection to the country in a way that's so fundamentally important there's so many parts to what Air New Zealand means for New Zealand that we have to come at it from a more holistic view point so that's a really important piece for us to ensure that we build a programme that represents what we are now that'll be different if you're united overseas is a different airline or Qantas or somebody else in the same way that it's different if you're the ANZ or the BNZ or Fonterra or anyone else as well and I think that's a really really important part is to understand what the organisation is fundamentally about to drive a programme that people can engage with the second one I've got here is this concept of using insight to develop the programme particularly customer and employee insight and so we've done this programme where we've spent a lot of time going out and talking to our employees in particular about what do you guys expect of Air New Zealand, what does SuperCharge New Zealand's success look like, what do you think we should be doing in this kind of regard to drive forward a programme that makes a bit more sense than what otherwise be the case and so I've put a graph up there which is probably not the nicest way to show it but we spent a lot of time talking to our staff in particular we've run about 20 workshops we've done big online programmes to understand what do you guys reckon we should do for us the ability to contact and speak to the employees and get them engaged and involved with the programme that's been fundamentally put in so that research has really impacted some of the things that we've been putting in place over the last year or so the next point I'll just start talking to now is the power of external engagement really one of the things that we've done that hasn't really been done so much in New Zealand previously is try and pull together a lot more external feedback that we're putting in place so we've introduced an external advisory panel which has six people on it and people on the screen here now and they meet about four days a year and provide us a lot of advice in between periods as well to try and challenge us to be the best that we can be and previously we'd probably developed a programme that was a little bit inside out and therefore didn't have the aspiration that we need to so this panel which Christopher Luxon and David Morgan who's our chief of flight operations comes together to really challenge us in the programme that we've put in place. Jonathan Parrott, real global leader in sustainability action, worked with a lot of corporates developed a couple of NGOs and just done a brilliant million different things in this space but a strong connection to New Zealand because his dad was Lord Arthur Parrott the first New Zealand born Governor-General and Rob many people here would know well we've got a biohealers expert in Suzan Hunt from the US, we've got the chief economist Rick probably a lot of people here know also just to try and drive us forward in ways that we wouldn't otherwise do if we did things internally and I think that's helped massively for us. I'm going to finish really by talking a little bit about aviation and some of the action pieces because obviously standing up here and talking about a programme without referencing the carbon components not a fantastic approach the aviation sector it's an interesting one in that largely excluded from things like the Paris negotiations as shipping is because international activity occurs between borders and that's why it's largely been left out and so it's fairly been challenged and actually was a pretty slow sector I would say to get moving around climate change but over recent periods that's ramped up quite a lot and the sector has three major targets currently and I think these will probably end up getting made more aggressive in the future the first one is the one that's currently in place is a 1.5% annual fuel efficiency gain through until 2020 that's being exceeded quite comfortably for example in New Zealand we've made about a 20% improvement on a per passenger basis and carbon emissions in the past decade the second target is carbon neutral growth from 2020 which is essentially capping emissions at the 2020 level from that point in time and then the third target is a 50% reduction in carbon emissions by 2050 versus the 2005 baseline now those are targets that are pretty aggressive for aviation they might not necessarily relate to some of the challenge that we face globally with regards to climate change but for aviation end up in a space which is already highly efficient and therefore pretty challenging to move on the three key ways in which those targets get achieved really around technology gains in the first instance so a 787 for instance that we've got is about 20% more efficient than a 767 that it replaces there's also lots that's done around the way in which the aircraft operate at air traffic control different technology uses on the ground that kind of thing so that's a really big piece for us in the fundamental program of I guess any carbon plan for an airline the second part is biofuels which were you know really considered a great hope a few years ago but have got much more challenging to come to fruition there's been a lot of activity particularly internationally where there's a lot more incentives in place we're starting to see some biofuel produced and provided for airlines but very very low levels currently and of course not helped by massive slump in the oil price which has meant that a lot of those businesses have struggled to stay across the line financially but that's something we're looking at really closely we're about to have an RFI go out to market to try and dry some of that go some of that forward and we're also looking at some international off take opportunities there as an airline ourselves but that's a big one and that's really seen as probably the second biggest lever in terms of hitting that 2050 target if biofuels can come to fruition and then the third one is offsetting which is obviously the sort of the last resort approach in many ways but something that we're trying to get a lot better at the 2020 target of carbon neutral growth will largely be achieved through global offsetting program and that's currently in negotiation internationally at the international civil aviation organisation trying to figure out how a global market-based measure for carbon can be implemented that enables that target to be hit so that's essentially the aviation version of the Paris discussion so that's a really key part for us we're trying to figure out in the New Zealand context how do we do offsetting better in a way that drives better environmental outcomes and better biodiversity and waterways top soil everything rather than just the standard exotic forestry approach that currently exists but it's not an easy thing and then for Air New Zealand specifically we also invest in climate science through and touch the New Zealand Touch Research Institute as essentially a fourth pillar of our program recognising the important role that New Zealand scientists play on the ice and Lou touched on that in his talk so that's a really quick summary of where we're at I'm conscious that I haven't spoken so much around what we're actually doing and I'm happy to talk about that over lunch so yeah