Impact, the group of aviation financiers working to decarbonise aviation and act as a facilitator between aviation and the finance sector, has released a second whitepaper that introduces a new metric for measuring the journey to net zero carbon emissions by 2050.
An increased focus on decarbonisation is paramount if the airline industry wants to realise its ambition of reaching net-zero emissions by 2050. Finance will play a key role in increasing the aviation industry’s momentum towards this goal. But Impact believes that simply tracking the CO2 footprint of an aircraft portfolio will not be enough. Aviation financiers have to engage with their clients to translate meaningful emissions reporting into contracts, says the organisation.
Financiers are increasingly recognising the need for well-defined sustainability targets in finance and lease agreements. Impact’s first White Paper, “Three essential KPIs”, defined suitable metrics for this task. Our second White Paper, “The milestone concept”, translates these KPIs into a clear and simple scoring system to determine the sustainability of an airline or lessor portfolio. Impact notes that a series of increasingly ambitious milestones will guide the way towards net zero by 2050.
The white paper outlines the main benefits of the milestone concept, which it says: eliminates the shortcomings of reference forecasts or benchmarks, which are ambiguous, assumption-driven and prone to adjustment; it does not discriminate against a particular business model; and it emphasises that the social and economic value of aviation is as important as the industry’s net-zero goal.
Click on the link for the new Impact white paper, The milestone concept.