If you are going to have a licence to grow, you've got to get the environmental responsibility piece right," says Jonathon Counsell, head of environment at British Airways, and that is something the Strategy Awards' judges believe BA is doing - and then some.
"BA is head-and-shoulders better than anyone in the industry," observed one judge. "They not only talk about what they are going to do, they have an organisation set up," said another. Although the airline has had an environmental function for two decades, it was former chief executive Willie Walsh who saw in 2008 that the carrier needed to make it a strategic priority. "He really drove it, recognising that it is a serious issue. We are a big emitter [of carbon] and we really need to do the right thing," explains Counsell.
"The great thing for us is that our senior management absolutely gets it. We've still got more to do to get the environment truly ingrained across the company, but we've got leadership backing so we are well on the way," he adds. Even during the recession, Walsh ensured the environment budget was ring-fenced. "BA's conclusion was that if you don't get climate change right you might be regulated to such an extent you won't be allowed to grow," says Counsell.
Counsell leads a group of 11 in the corporate responsibility team, which oversees a broad range of environmental initiatives. These range from technical ones such as fuel-efficient coatings on aircraft like the Airbus A319, to global ones like working with the IATA joint task force on climate change and the Aviation Global Deal Group, to develop industry strategies to deliver ambitious carbon dioxide reduction targets.
BA has several firsts under its belt in the environment field, being the first carrier to commit to a 50% net reduction in its CO2 emissions by 2050, the first UK airline to introduce a carbon off-set scheme, and the first to take part in an emissions trading system.
Work on biofuels, to find a sustainable alternative to fossil fuels, is also underway at BA in its partnership with renewable energy technology firm Solena. This innovative project, established in 2010, aims to use London's municipal waste to produce biofuels for use in BA's aircraft at London City Airport. The aim is for this plant to enter production in 2014, and it could, if successful, provide 2% of BA's entire fuel needs.
While BA realises the security of biofuel supply is a critical requirement over the coming years, it also understands the need for solid, practical research in the field. This is why the airline has teamed up with Rolls-Royce to run a full three-month engine test project, to assess new biofuels. The results will be made available to the whole industry in a project BA describes as the most rigorous biofuels test programme ever conducted by Rolls Royce.
As it pursues a host of green initiatives BA has embedded the metrics it uses to measure its environmental impact and corporate responsibility targets into its business plan. These are presented to its leadership team, chaired by BA chief executive Keith Williams, every month.
In addition to a myriad of projects close to home, BA takes its global role seriously too: "It is not enough just for BA to get this right, we have got to show leadership in getting the whole industry to the same place, and understand that this is a strategic issue for all of us," adds Counsell.
For the judges, BA has clearly become a role model for other carriers in demonstrating its environmental responsibility - and putting climate change at the heart of its strategic agenda.
Source: Airline Business
