Sustainable Business / In conversation with Spencer Low

In conversation
with Spencer Low

We are deeply committed to minimising the impact our current and future activities may have on the environment, through smart infrastructure that reduces our carbon footprint and contributes to a low-carbon economy.

Accelerating our plans and overall carbon reduction target

  • 1.

    With the disruption to air travel caused by the pandemic, SATS has experienced very low carbon emissions in the past year. How do you intend to achieve your carbon emission goals as operations ramp up?

Indeed, during the pandemic we witnessed lower levels of carbon emissions globally as a result of the dramatic decrease in aviation traffic – a stark reminder of the impact of human activities on the environment. COVID-19 significantly reduced our carbon footprint, but this was involuntary and primarily driven by volume.

This has prompted us to further review and refine our sustainability goals and targets by improving our data capture and governance, and by monitoring carbon intensity 1 as an operational metric, to better reflect the impact of our activities on emissions.

This helps us work towards achieving our overall carbon reduction target of 50% by 2030. We are focused on accelerating our plans to electrify ground support equipment (GSE) and install solar panels on our facilities to help us transition to a low-carbon economy, given that we anticipate operations to slowly return to normalcy.

  • Electrifying our GSE fully is expected to abate

    11,000tC02e

  • Electrifying of

    71

    forklifts expected to eliminate 1,087 tCO2e
  • About

    10,000

    megawatt-hours of renewable energy generated annually
  • 3.

    What percentage of your GSE are electrified?

To date, we have electrified 31% of our GSE in Singapore and 32% of our motorised fleet at Beijing Aviation Ground Services (BGS), one of our joint venture companies in China. 676 diesel/petrol vehicles that are still in use at BGS have emissions control modifications installed which comply with the local emissions standards. 95% of our GSE at Beijing CAH SATS Aviation Services Co., Ltd. (BCS) has also been electrified.

In India, Air India SATS (AISATS), a joint venture between Air India Limited and SATS, has started the conversion of diesel to electric GSE with the purchase of 20 electric GSE vehicles in FY2020-21. By 2025, we plan to achieve 100% conversion of light motorised GSE vehicles.

SATS TFK deployed six electric vans across its operations this year as part of our ongoing efforts to expand our electric fleet beyond tractors and forklifts

In Japan, our subsidiary SATS TFK had also deployed six electric vans across its operations this year. As part of our ongoing efforts to expand our electric fleet beyond tractors and forklifts, we are working with our partners to source for the electric variants of GSEs that suit our needs. Part of the process includes on-site trials to assess the performance of these vehicles and equipment and their compatibility with the unique requirements of airport operations as well as the gathering of staff feedback. The skyloader trial I mentioned earlier is an example. We have 71 forklifts across our cargo operations in Singapore which are scheduled for replacement this year. These will be converted to electric versions, eliminating approximately 1,087 tonnes of carbon emissions. GTR, a SATS subsidiary in Malaysia, uses fully electric machinery, such as forklifts, tow tractors and pallet trucks for its cargo operations in Kuala Lumpur. The six electric forklifts deployed are equipped with enhanced safety features such as reversing cameras, a driver assistance system, and shock sensors.

  • 4.

    In your opinion, why is it important to integrate sustainability and strategy?

Climate change and the global megatrends associated with it can fundamentally change the way we operate over the coming decades.

Today, more than ever, integrating sustainability into our strategy helps us future-proof our business, and ensures we take a long-term view on the effort required.

We have therefore adopted TCFD as a useful approach in helping the organisation identify and address the potential impact of climate-related risks and opportunities on our business strategy and operations. It is increasingly important for SATS to put in place environmental, social and governance (ESG) targets and best practices, and to pay close attention to the concerns of stakeholders such as investors and consumers. By doing so, we strive to harness potential opportunities and innovative solutions to become more sustainable even as we grow our business.

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We have therefore adopted TCFD as a useful approach in helping the organisation identify and address the potential impact of climate-related risks and opportunities on our business strategy and operations.

  • 1Carbon intensity refers to carbon emissions generated per unit of activity, such as gross meals produced, flights handled or tonne of cargo handled.