CSR STRATEGY

Reforestation Programs

The Holistic Forestry Conservation Program in Madagascar, supported by Air France since 2008 and co-financed by the French Development Agency (AFD) and the French Global Environment Facility (FFEM), is contributing to developing the living standards of local communities while protecting the biodiversity of the island. The second phase of the project (2014-17) aims to strengthen the conservation activities, expand and improve the propagation of sustainable alternatives to deforestation, and to validate the project under one of the existing REDD+ international labels.

The aim is also achieve carbon certification of the project, whose associated sale of carbon credits will complete the financing for a phase III that would enable an even longer-term commitment to supporting the local communities committed to preserving their environment.

In 2017, KLM introduced a reforestation project in Panama to the CO2ZERO compensation service. Besides the numerous environmental benefits the project has, the project’s activities integrate capacity building and create long-term employment with a sustainable source of income for the local population. This helps them to improve their living conditions and develop knowledge and skills.

Biodiversity program

Air transport commits with HOP! Biodiversity in a very concrete environmental approach. With vegetation covering about 70% of their surface area, airports can play a role in the preservation of the most threatened natural habitat of Eastern Europe: grasslands.

For HOP! Air France, at the initiative of the project, finding out what lives (i.e. the biodiversity) in these grounds is a responsible way of building awareness within the company and among its partners, of respecting the environment, identifying best practices and promoting conservation measures, while respecting the safety procedures of the industry.

The project HOP! Biodiversity was launched under the guidance of an independent scientific committee (National Museum of Natural History, CNRS, Conservatoires) with habitat and species evaluation carried out by scientists together with airport staff and citizen volunteers under the guidance of science protocols (primarily the Vigie Nature Program).

Four years after the launch of the program, HOP! Biodiversity – which became an association in June 2015 – has undergone a fast exponential growth:

• HOP! Biodiversity gathers 4 airlines, 14 airports, the National Museum of Natural History and the French civil aviation authority (DGAC),
• The project is recognized by the French Ministry of Environment, as a part of the National Strategy for Biodiversity (SNB).

This is a project of both industrial and environmental importance, unique in France and in the world in the field of aeronautics

The most significant source of direct greenhouse gas emissions (GHG) generated by Air France-KLM’s activities is linked to the flight operations which represent 99.8% of the Group’s total direct emissions.

Reducing our CO₂ emissions goes hand in hand with fuel use reduction. Therefore, one of the focus points in our environmental policy is to reduce the use of fuel. Operating with more fuel-efficient aircraft, implementing weight reduction measures on board, optimizing flight routes and improving flight operations all contribute to the reduction of fuel use.

Secondly, we believe that the use of sustainable alternative fuels is an important factor in further reducing our CO₂ emissions. Consequently, both Air France and KLM have policies in place that stimulate the development and use of those. Currently, there is not enough supply to operate fully on sustainable alternative fuels. Therefore, carbon offsetting is a mid-way option to reduce our environmental footprint.

FUEL USE REDUCTION

Fleet modernization

Our fleet in 2017
Aircraft: 552
Average age: 10.9 years

By investing in a modern, more energy- and fuel-efficient fleet, we are improving both our economic and environmental performance. Over the coming years, the modernization of the fleet will be reflected in the retirement of Air France’s A340 and KLM’s B747-400s and their replacement with B787-9s and 10s, and the entry into revenue service of the first A350-900s with Joon, planned for 2019. For its part, Transavia France and Netherlands will see its fleet adapted to the growth market in the leisure segment.

In 2017, we pursued our pro-active policy of fleet renewal and modernization strategy:

• Air France: replacement of three A340s by four new B787-9sn and of three old generation A320s by two new A320 Sharklets.
• HOP!: replacement of three ATR42/72-500s by one ATR72-600.
• Transavia France: delivery of four new B737-800s.

(For more information on Air France-KLM’s fleet, see Registration Document 2017, chapter 2.6.)

Our fuel savings plans

We identify and implement all possible fuel saving measures, subject to strict rules for flight safety. In each airline of the Group, all the departments are involded in the Fuel Plan, so that the Group can improve its energy efficiency and reduce its carbon footprint.

By analysing flight performance, the Fuel Plan aims to reduce fuel use through various projects, focusing on: fuel policies, fuel standards, accurate planning information, route optimization, and weight reduction.

At Air France, the Flight Efficiency Board management structure has implemented fuel consumption management targets, particularly for “green procedures”, and fuel loading. A total of 20,000 tonnes of fuel were saved in 2017, corresponding to 60,000 tonnes of CO₂ avoided.

Weight reduction

The lighter an aircraft is, the less fuel it consumes. All Air France-KLM departments are working to reduce weight onboard. In 2017, we achieved the following:

At Air France:

• The medium haul fleet was fitted with new lighter seats in 2016 (A319, A320) and in 2017 (A321).
• Twice a year, flights to new destinations are analyzed in order to optimize the quantity of water onboard. The need is calculated on the basis of an average hourly consumption per passenger.
• The onboard materials are chosen and adjusted according to their cost, their resistance and their weight, in order to reduce fuel consumption. For example, it is the case for dishes, trolleys, etc.
• At the initiative of crews, communication with pilots has been stepped up regarding the reduction of the amount of additional fuel loaded on board aircraft.
• On the long-haul A330 and A340 aircraft, the loading of drinking water has been optimized (duration of flights, average load factors), as it had already been done on 777s and A380s. This new phase will enable a 375 tonnes of annual saving in fuel.

Route optimization

Improvements in fuel efficiency are made through the optimization of routes and flight paths, the reduction of aircraft waiting times and optimized altitudes. These were the results in 2017:

• Air Traffic Control (ATC)’s impact on Air France Group’s fuel consumption has been estimated at 6%, or around 70,000 tonnes per year. In 2017, Air France worked with the Italian ATC with the goal to operate more direct routes between France and Italy, thus achieving fuel savings. The new flight plan software Air France has been using since 2015 has enabled the optimisation of fuel consumption for the company’s flights. The opening of new spaces and the progressive passing through free routes enables us to optimize the fuel consumption even more.
• KLM’s route optimization efforts resulted in a CO₂ reduction of approximately 4,500 tonnes.

Optimizing flight operations

Pilots of the Group are trained to apply the most fuel-efficient procedures possible: flight plan precision, speed adjustments and optimized procedures, and, on the ground, taxiing with one engine. In 2017:

• Air France implemented actions to improve the forecast of reference flight times, taking into account the most favorable and most unfavorable conditions (mainly weather/wind and taxiing). These actions have improved the punctuality and reduced fuel consumption by limiting the need for acceleration.
• KLM’s implementation of new route optimisations and improved aircraft performance, saved around 6,000 tonnes of CO₂ emissions in one year. The largest fuel saving projects involved the implementation of various route improvements in China and the recontouring of fan blades on the aircraft to optimise engine fuel consumption.

SUSTAINABLE AVIATION FUEL

Sustainable alternative biofuels constitute one of the most promising approaches for reducing CO₂ emissions from aviation. They are key to achieving Air France-KLM’s CO₂ emission reduction targets as well as those of the aviation industry as a whole. Unlike other forms of transportation, commercial aviation industry has no alternative to fossil fuels and, moreover, no ground-breaking technologies are envisaged for commercial aviation in the coming decades.

In 2017: Green deal signed by Air France with the French government and 4 industrial partners

CARBON OFFSETTING

European trading system

Since 2012, the Group has been subject to the application of the European Emission Trading Scheme for greenhouse gas emission quotas (EU-ETS).

The EU-ETS scope is limited to intra-European flights and is to remain within these limits until the end of 2023, following the decision made by the European Commission at the end of 2017.  The EU-ETS should be considered a first step towards a global system whose main principles were approved by ICAO in October 2016.

In 2017, Air France, KLM, Transavia, HOP! and KLM Cityhopper purchased emission allowances equivalent to 3,014,255 tonnes of CO₂. Out of this, we estimate that just 2,404,713 tonnes will contribute to actually reducing emissions beyond the ETS threshold. Of the remainder, 15% was used in additional bidding as part of the EU’s ETS system and 3% was allocated to a reserve.

If we take into account the economic measures above the ETS cap, in addition to the operational improvement measures of 11%, our total efficiency improved by 18% in 2017 (g.CO₂/passenger/km) compared to 2011, getting closer to our 20% target for 2020.

As not all emission allowances are used in a way to comply with the collective cap, the environmental integrity of EU ETS could therefore be considered limited, as it does not lower our carbon footprint in the most cost-effective way.

CO₂ offsetting service for our customers

Air France also offers a CO₂ offsetting service for its customers on a voluntary basis. We provide CO₂ emission calculators on our websites that determine CO₂ emissions of a passenger, based on the distance flown and the fuel-efficiency data of our aircraft.

Air France works with the GoodPlanet Foundation’s Solidarity Action Carbon Program for the financing of carbon offsetting projects aimed at promoting renewables to replace non-renewable energies in Peru, Bolivia and India, and implementing waste recycling projects in Madagascar.

REDUCING NOISE AT SOURCE

Fleet modernization and procedural improvements are the two pillars of our noise abatement strategy.

Fleet Renewal

All our modern aircraft meet the criteria established by the ICAO Chapter 4 Noise standard, the most stringent noise standard for new subsonic jet aircraft. In 2017, we significantly reduced our noise footprint by withdrawing Boeing 747s from operational service and introducing the 787-9:

• Air France took delivery of four B787-9s while the last Boeing 747s were retired in 2016.
• The introduction of the Boeing 787-9 reduced the operational noise footprint by approximately 60% compared to similarly sized aircraft. Boeing 787’s noise footprint has been reduced to the point that, at each takeoff, the exposure to noise in the surrounding airport area is lower than 85 dB(A) (comparable to the noise of a truck passing).

DIALOGUE WITH RESIDENTS, AN OPPORTUNITY TO SHARE THE FRAMEWORK FOR SUSTAINABLE DEVELOPMENT

Air France is engaged in an ongoing dialogue at a local level to strengthen their relationships with stakeholders and inhabitants.

Specific solutions are also sought to reduce noise emissions from aircraft. For example, although not required by any regulation, Air France decided to equip its entire A320 fleet (115 aircraft) with Air Flow Deflector noise-reduction kits to reduce the characteristic whistling sound during the A320’s approach phase. A number of residents’ associations have confirmed the positive impacts in terms of a reduction in overall noise energy.

DIALOGUE WITH RESIDENTS, AN OPPORTUNITY TO MITIGATE NOISE

Air France meets with the representatives of local communities, airport authorities and air traffic control to identify measures and solutions to reduce noise hindrance that could affect people living near airports.

In France, Air France fosters a dialogue with residents and partakes in the advisory committees on environment and residential care, such as CCE (Commission Consultative de l’Environnement) and CCAR (Commission Consultative d’Aide aux Riverains) at all the airports in France where it operates.

In 2017, Air France continued to be actively involved in a “Night Flights” working group, overseen by the prefect of the region for Paris-Charles de Gaulle. This working group noted the positive improvements achieved by Air France through:

• the voluntary withdrawal of Air France’s Boeing 747s, the noisiest aircraft in our fleet. The early withdrawal of these aircraft involved more than 2,000 procedures, which constitutes 0.5% of the annual commercial actions at Paris-CDG. Their replacement by a more efficient type of aircraft resulted in a decrease at Paris-CDG, of over 1 point in value of the global pressure-intensity index of the measurement, an indicator representing sound power.
• the introduction of the Air France Boeing 787s which is much quieter during take-off (down to -40%) compared with similarly sized aircraft.
• improvement in punctuality of the flights scheduled for late at night or early in the morning in the scope of the Air France company-wide D0 (D Zero) punctuality project.

The monitoring of the flights scheduled for late at night or early in the morning at Paris-CDG, whatever the operating airline, is the subject of a specific review by the “Night Flights” working group monitoring procedure. They came up with a proposal of testing new night-time continuous descent procedures, where Air France was chosen to be the pilot airline.

French government policies include the exposure to aircraft noise in their urban planning considerations and provide financial help for soundproofing homes.

In 2017, the Air France Group’s contribution (Air France, Transavia and HOP! Air France) to the French Tax on Air Transport Noise Pollution (TNSA) paid to the French government amounted to €17 million.

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As a transport provider, we can be a catalyst in the value chain by procuring more sustainable and circularly produced goods. Everyone can recycle, produce less waste and adopt good practices. At the heart of this commitment are the “Four Rs” of the circular economy: Rethink, Reduce, Reuse and Recycle. Our ambition is to take sustainability into consideration at every phase of the lifecycle of our various products and services. This begins with design, and goes on to cover every other process along the way.

We handle a variety of different types of waste, particularly waste originating from flight and maintenance activities, both of which are subject to strict regulations. Two thirds of our nonhazardous waste result from catering and onboard service: these regulations have a big impact on our waste footprint.

Reducing waste also provides a financial opportunity: several initiatives have demonstrated considerable economic benefits. We work closely with our suppliers and other parties to contribute towards the use of sustainable materials and resources throughout the value chain.

PREVENTING FOOD WASTE

We handle food waste coming from flight operations with respect to a permanent commitment to guaranteeing food safety and security, within a context of strict regulation. The regulations vary depending on the station and are often very restrictive, like the European regulation requiring the incineration of any elements having been in contact with food for international flights.

Two main levers enable a reduction in food waste: the adjustment of the catering supplies on our flights and a strict policy of merchandise inventory management. 

• We regularly re-evaluate the number of required meals on aircraft based on statistics, historical load factors, and passenger habits. This re-evaluation enables a reduction in waste and in production and transportation costs, as well as in the actual on-board mass. This reduction contributes to the mitigation of CO₂ emissions.
• To regularly renew the in-flight service offer, we propose a number of products to passengers for a limited period. At the end of this period some products, like wine, are served in airport lounges, while others, like sweet and savory biscuits, may be donated to charitable organizations (Restos du Cœur, Mie de Pain, Red Cross). In 2017, Air France donated €131,000 worth of articles to associations. Air France also chooses to serve refreshments until the available stocks are exhausted, before replacing them with new product ranges.
• Lastly, products which are not distributed to passengers during the flight, and can potentially be conserved, like biscuits and snacks, sugar, salt, bottled water and soft drinks, are recovered and reinserted in the flow of meal trays prepared for the following flights. In this case, cost saving is combined with waste minimization.

REDUCING AND RECYCLING OTHER INFLIGHT WASTE

To reduce the overall impact of waste, we prevent waste by redesigning and by correctly separating waste, as well as by implementing recycling initiatives. For example, a significant proportion of reusable obsolete equipment, like trays, drawers, blankets and trolleys, is recycled.

At Air France, items designed with an eco-design approach, which take the entire life cycle of products into account, are favored. Four families of materials are recycled: plastic, metal, textiles and paper. Plastics are mostly reused in the production of new materials such as Air France’s drawers and serving trays.

• With the introduction of the Air France Press App and the KLM Media App, which replaces onboard newspapers, 1,300 tonnes of paper waste were prevented in 2017 (4,600 tons of CO₂ avoided). An additional benefit of replacing newspapers with a digital version is the weight saving on board.
• To avoid the destruction of products and promote reuse, Air France signed a framework agreement with the association Agence du Don en Nature (ADN). By donating new, re-modeled and recycled products like crockery and blankets, we support the work of ADN which collects and redistributes new non-food everyday products to combat exclusion in France. In 2017, 51 pallets of crockery were donated to ADN.

REUSING AND RECYCLING AERONAUTICAL WASTE

We have developed programs for aircraft maintenance waste. Where possible the principle of cradle-to-cradle is applied to bring waste back into a new production cycle with the goal of streamlining and controlling all technical waste flows. The process includes procedures to reuse and recover spare parts.

• At Air France, the ongoing move up-market for the medium and long-haul cabins with the installation of new seats has been accompanied by the implementation of a recycling and dismantling process for the old seats ranging from the reuse and recycling of components to the recovery of foams and metals.

• Hazardous waste from maintenance activities is subjected to a comprehensive tracing system and its management is harmonized in different maintenance sites. This approach is also reflected in the optimized management of suppliers and costs, and the search for more relevant solutions in the light of regulatory changes.

REDUCING AND PREVENTING OFFICE WASTE

We aim to reduce and prevent the waste generated by our on-ground non-industrial activities:

• Using Follow Print, print jobs are carried through only on request of the user at the printer, with an identification code and a confirmation of the printing tasks: since its launch in 2014, print quantity has been reduced at Air France by 19% resulting in a savings of 22.8 million sheets of paper.

• Within the framework of the NET project (New Workspaces) Air France has implemented a waste collection system enabling sorting waste, with the goal of 100% recycled waste in 2020. This system relies on color coding one can easily identify to facilitate the sorting (biowaste, paper and cardboard, bulky waster, plastics).

• In the restructuring of the workspace at its headquarters, Air France chose to assign the work of treating used and surplus office furniture to partners who contribute to a creation of solidarity economy and promote professional integration. The removal of the furniture is carried out by Groupe Ares, which assists people who face employment obstacles (500 people are assisted yearly, with 65% securing a job or an apprenticeship).
  • The furniture is further handled by an eco-friendly organization Valdelia, ending in several possible destinations:
  • The furniture that is in good condition is entrusted to partners in social and solidarity economy or humanitarian projects invested in early childhood and education. The furniture that is in bad condition is energetically repurposed or recycled.

PROMOTING THE PRINCIPLES OF THE CIRCULAR ECONOMY

We are working on initiatives to up-cycle waste for new usage, as shown in some more recent examples:

At Air France:

• From September to December 2016, a collecting of uniforms and working clothes was organized in partnership with a company in the sector: more than 8 tonnes of clothing were collected and recycled in a facility specialized in waste processing, then transformed into cement granules. Another collecting campaign is scheduled for 2018.

• Within the framework of the Reverse project at Air France Industries’ Engines, Equipment and Services department, used equipment has five possible new destinations: re-using, dismantling and re-certification, reselling (in its current state), reconditioning as a non-aeronautical product, treatment as waste. We aim to make circular economy and the optimization of environmental and economic performance of waste reprocessing an integral part of our business.
• Certain items are being reconditioned under a range of non-aeronautical products, marked in company colors. For example, used seat covers and leather headrests were transformed into bags and pouches with handles made from old safety belts.

We work in partnership with the players in the aeronautics industry to promote circular economy and identify potential sources of recycling and reprocessing facilities:

• In 2017, Air France continued to contribute to studying opportunities to develop circular economy initiatives in the catchment area around Paris-CDG airport. As a member of the aviation industry’s Strategic Committee on circular economy, Air France Industries has contributed to the industry’s roadmap, which was presented to the French government.

Since 2016, Air France has been one of the 33 companies volunteering in the contribution to circular economy with 100 commitments (Trajectories Economie circulaire – 33 enterprises se mobilisent avec 100 engagements), organized by AFEP (French Association of Large Companies).

Air France supports Circul’R, a company with which it organised a one-day Learning Expedition in December 2017, which enabled employees to learn more about circular economy and get acquainted with innovating startups in this field.

DIGITIZING

In the context of both fast evolution of the consumers’ needs and the digital revolution, we focus on the digitization of our services. This way we can provide our customers and employees with the right information at the right time.

The Air France media apps allow travelers to download a variety of magazines and newspapers before departure. Mobile phones are now the primary way customers contact the company: in this respect, the different apps the Group has developed have proved to be a real advantage, enabling us to get closer to the customer.

Our employees are provided with digital tools, in most cases an app on their tablet computer, which allows them to offer the best service to our passengers. Operational staff also benefits from this digital trend. In a turnaround, many people and departments work together to ensure aircraft departure on time. A digital platform, accessible via phone or tablet, facilitates communication between departments and helps them to work as a team.

Our aircraft mechanics have the possibility to access information through digital channels “on the spot”. Firstly, this means no more paper manuals to carry around, secondly, it provides guidance and troubleshooting options for onsite support, and thirdly, it allows a paperless debrief.

SOCIAL MEDIA

Social media are changing the relationship between consumers and businesses. Active consumers now demand greater transparency, responsiveness and personalization. A strong digital link with the traveler, via the Air France app, Facebook, WhatsApp or Twitter, helps to keep our passengers informed in real-time through the passenger’s channel of choice.

Air France, for example, have been reachable on Messenger, since 2017. This channel enables them to reach younger customers, the so-called “digital natives”, and to create a personalized relationship with each customer. In 2017, Air France launched its first chatbot in Facebook Messenger, called Louis, and KLM launched their chatbot called BB (short for Blue Bot).

These are self-learning systems that can answer all customer inquiries about luggage, from questions on company’s policy before departure to those concerning luggage tracking after the flight. Being on Messenger enables Air France to communicate directly with its customers, especially during activity peaks. The development of this service was an example of co-creation with customers, as they were able to test the different prototypes.

BIG DATA AND INTERNET OF THINGS

Big data can also help us personalize the offer we create for our customers. We aim to help our customers find the information they are looking for faster. We always do this with the highest regard for privacy.

Air France Customer Priority Hackathon

• In November 2016, 110 participants (both external participants and Air France staff), in teams of two to five people, had two days to develop an innovative solution to assist customers in the event of an irregularity, ensuring they have the best possible travel experience. Five projects were selected and have been planned to deliver the envisaged solutions in a three-months period.

• The most promising project was developed and tested at the end of 2017. The Ariane app will enable customers affected by flight delays to monitor flight information in real time and keep in touch with Air France. The app will be available on a watch, which will be lent to customers who do not have a connected device and are affected by an irregularity. This will enable them to receive real-time information about their delayed or postponed flight. In order to keep in touch with the company, they will also be able to ask questions, to which Air France ground staff can answer in real time and in a personalized way.

With the Internet of Things technologies, we connect a variety of objects to the Internet. Many objects in the Air France world are either already connected or will be in the longer term.

• As checked-in baggage can be a source of stress for our passengers, we aim to relieve that stress by offering connected baggage solutions.
• In daily operations at the airport, vehicles and equipment are connected to the Internet. We can find the nearest vehicles and equipment without effort and reduce “searching time”. It helps us to work more efficiently, to fine-tune and learn how many vehicles and how much equipment we actually need. In the long term, this will help reduce the amount of superfluous equipment, as well as waste and the environmental footprint of the production process.

MRO LAB: MAINTENANCE INNOVATION

As an airline Maintenance, Repair and Overhaul (MRO), Air France Industries KLM Engineering & Maintenance have developed a unique portfolio of know-how reflected in the development of a wide range of value-adding innovations.

The MRO Lab is a programme grouping innovative and high value-added solutions. Specially tailored to the challenges of aircraft maintenance, the innovations are the fruit of continuous development aimed at satisfying the requirements of airline operating performance. Developed in-house, then tested and approved on Air France and KLM fleets, these innovations benefit AFI KLM E&M customers by optimizing fleet performance.

The MRO Lab program is explained in this video.

Major innovations, such as our Prognos tool, now fully operational on several aircraft, have been developed. We are now able to predict failures on some of the components of the A380 before they fail using the big data tools available on these new generation aircraft. More developments are being done on new aircraft types and new systems.

AFI KLM E&M presented some its innovations during the Paris Air Show at Le Bourget in June 2017. Visitors were able to examine the virtual reality training suit developed for Boeing 787 maintenance, an app for tablets which reduces cabin seat inspection time, and a new repair that has been developed for the GP7200 turbine center frame.

Partnerships with startups allow us to develop new solutions for our customers and our employees. More innovations are detailed on our website.

Our joint R&D centre, the MRO Lab Singapore, together with its partner Ramco, aims to encourage the rapid emergence and sharing of innovative solutions. With these additional resources that support our “Test & Learn” innovation culture, we have been able to test and to introduce the first innovative solutions such as new mobile applications, new digital solutions and chatbots.

The MRO Lab Amsterdam and the MRO Lab Paris with its creative rooms have also been set-up to further help our innovation network.

And finally, customer experience is being improved with new digital solutions that are being tested and implemented.

Air France-KLM’s Climate Action Plan embodies our strategy for further reducing our impact on climate change. The plan is composed of six main mitigating priorities, on the basis of which we identified our targets and established our actions. Our target in reducing our carbon footprint is -20% CO₂ emissions per passenger kilometer in 2020.

OUR CLIMATE ACTION PLAN

• Pursuing fleet modernization and contributing to aeronautics research.
• Mobilizing all the Group’s internal and external players around ambitious action plans enshrining eco-design principles.
• Promoting the emergence of sustainable alternative biofuels for aviation and research into renewables.
• Supporting NGO-led environmental programs.
• Giving customers information on their travel-related CO₂ emissions and the opportunity to offset these.
• Supporting the implementation of the global climate agreement (CORSIA) in which the aviation sector would make a just and equitable contribution.

In 2017, by implementing the measures of our Climate Action Plan, we achieved:

• An average fuel consumption of 3.30 liters per passenger (per 100 km)
• An average carbon emission of 82 grams of CO₂ per passenger (per km)

INDUSTRY COMMITMENT

In 2009, the International Air Transport Association (IATA) set an ambitious worldwide commitment to reduce CO₂ emissions of air transport:

• 1.5% average annual fuel efficiency improvement until 2020
• carbon neutral growth from 2020 onwards
• a 50% reduction in net aviation CO emissions by 2050 (relative to 2005 levels)

We endorse these targets and support the implementation of CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation) to achieve them. This global market-based mechanism (MBM) addresses any annual increase in total CO₂emissions from international civil aviation above 2020 levels. CORSIA aims to supplement the basket of mitigation measures already deployed by the international aviation industry, which includes technical and operational improvements, together with progress on producing and using sustainable alternative biofuels for aviation.

In the run-up to the COP 21 Conference in 2015, Air France-KLM reaffirmed its 2020 objectives and, together with Aéroports de Paris and the GIFAS association (Groupement des Industries Françaises Aéronautiques et Spatiales), two other major players in French air transport, signed a joint declaration, committing to reducing their greenhouse gas emissions, improving their energy consumption and developing biofuels.

CLIMATE CHANGE ADAPTATION MEASURES

To adapt to already occurring consequences of climate change such as more frequent extreme weather events, Air France-KLM has the policy to ensure safe operational and passenger handling conditions and regularly conducts comprehensive risk analyses to optimize those.

Due to the Group’s large network and diverse fleet composition, we are accustomed to operating under different weather conditions and are relatively flexible in adapting flight schedules when necessary. We work together with airports to ensure safe operational and passenger handling conditions. When necessary, we deploy commercial measures to enable customers to defer their travel if they so wish, or change their destination.

CLIMATE RESEARCH

Since 2013, Air France has participated in the European IAGOS project (In-service Aircraft for a Global Observing System) by carrying atmospheric measuring equipment on board an Airbus A340.

IAGOS is a European Research Infrastructure, linked with CNRS (Centre National de la Recherche Scientifique), conducting long-term observations of atmospheric composition, aerosol and cloud particles on a global scale from commercial aircraft of internationally operating airlines. The data collected is made available to international meteorological centers and scientists worldwide, which is particularly useful for studying the carbon cycle and verifying CO emissions.

In 2017, Air France strengthened its partnership with CNRS by  equipping a second aircraft (A330). This decision has enabled the expansion of the atmospheric monitoring system and the coverage of the geographical network on which the measurements are done.

DIGITIZING

In the context of both fast evolution of the consumers’ needs and the digital revolution, we focus on the digitization of our services. This way we can provide our customers and employees with the right information at the right time.

The Air France media apps allows travelers to download a variety of magazines and newspapers before departure. Mobile phones are now the primary way customers contact the company: in this respect, the different apps the Group has developed have proved to be a real advantage, enabling us to get closer to the customer.

Our employees are provided with digital tools, in most cases an app on their tablet computer, which allows them to offer the best service to our passengers. Operational staff also benefits from this digital trend. In a turnaround, many people and departments work together to ensure aircraft departure on time. A digital platform, accessible via phone or tablet, facilitates communication between departments and helps them to work as a team.

Our aircraft mechanics have the possibility to access information through digital channels “on the spot”. Firstly, this means no more paper manuals to carry around, secondly, it provides guidance and troubleshooting options for onsite support, and thirdly, it allows a paperless debrief.

SOCIAL MEDIA

Social media are changing the relationship between consumers and businesses. Active consumers now demand greater transparency, responsiveness and personalization. A strong digital link with the traveler, via the Air France app, Facebook, WhatsApp or Twitter, helps to keep our passengers informed in real-time through the passenger’s channel of choice.

Air France and KLM, for example, have been reachable on Messenger, since 2017 and 2015 respectively. This channel enables them to reach younger customers, the so-called “digital natives”, and to create a personalized relationship with each customer. In addition, WhatsApp and KLM have started a unique test for a new service which makes KLM one of the first companies and the very first airline worldwide with a verified WhatsApp business account. In 2017, Air France launched its first chatbot in Facebook Messenger, called Louis, and KLM launched their chatbot called BB (short for Blue Bot).

These are self-learning systems that can answer all customer inquiries about luggage, from questions on company’s policy before departure to those concerning luggage tracking after the flight. Being on Messenger enables Air France to communicate directly with its customers, especially during activity peaks. The development of this service was an example of co-creation with customers, as they were able to test the different prototypes.

BIG DATA AND INTERNET OF THINGS

Big data can also help us personalize the offer we create for our customers. We aim to help our customers find the information they are looking for faster. We always do this with the highest regard for privacy.

Air France Customer Priority Hackathon

• In November 2016, 110 participants (both external participants and Air France staff), in teams of two to five people, had two days to develop an innovative solution to assist customers in the event of an irregularity, ensuring they have the best possible travel experience. Five projects were selected and have been planned to deliver the envisaged solutions in a three-months period.

• The most promising project was developed and tested at the end of 2017. The Ariane app will enable customers affected by flight delays to monitor flight information in real time and keep in touch with Air France. The app will be available on a watch, which will be lent to customers who do not have a connected device and are affected by an irregularity. This will enable them to receive real-time information about their delayed or postponed flight. In order to keep in touch with the company, they will also be able to ask questions, to which Air France ground staff can answer in real time and in a personalized way.

With the Internet of Things technologies, we connect a variety of objects to the Internet. Many objects in the Air France-KLM world are either already connected or will be in the longer term.

• As checked-in baggage can be a source of stress for our passengers, we aim to relieve that stress by offering connected baggage solutions.
• In daily operations at the airport, vehicles and equipment are connected to the Internet. We can find the nearest vehicles and equipment without effort and reduce “searching time”. It helps us to work more efficiently, to fine-tune and learn how many vehicles and how much equipment we actually need. In the long term, this will help reduce the amount of superfluous equipment, as well as waste and the environmental footprint of the production process.

MRO LAB: MAINTENANCE INNOVATION

As an airline Maintenance, Repair and Overhaul (MRO), Air France Industries KLM Engineering & Maintenance have developed a unique portfolio of know-how reflected in the development of a wide range of value-adding innovations.

The MRO Lab is a programme grouping innovative and high value-added solutions. Specially tailored to the challenges of aircraft maintenance, the innovations are the fruit of continuous development aimed at satisfying the requirements of airline operating performance. Developed in-house, then tested and approved on Air France and KLM fleets, these innovations benefit AFI KLM E&M customers by optimizing fleet performance.

The MRO Lab program is explained in this video.

Major innovations, such as our Prognos tool, now fully operational on several aircraft, have been developed. We are now able to predict failures on some of the components of the A380 before they fail using the big data tools available on these new generation aircraft. More developments are being done on new aircraft types and new systems.

AFI KLM E&M presented some its innovations during the Paris Air Show at Le Bourget in June 2017. Visitors were able to examine the virtual reality training suit developed for Boeing 787 maintenance, an app for tablets which reduces cabin seat inspection time, and a new repair that has been developed for the GP7200 turbine center frame.

Partnerships with startups allow us to develop new solutions for our customers and our employees. More innovations are detailed on our website.

Our joint R&D centre, the MRO Lab Singapore, together with its partner Ramco, aims to encourage the rapid emergence and sharing of innovative solutions. With these additional resources that support our “Test & Learn” innovation culture, we have been able to test and to introduce the first innovative solutions such as new mobile applications, new digital solutions and chatbots.

The MRO Lab Amsterdam and the MRO Lab Paris with its creative rooms have also been set-up to further help our innovation network.

And finally, customer experience is being improved with new digital solutions that are being tested and implemented.

SUSTAINABLE PROCUREMENT STRATEGY

Code compliance

In a continuous effort to improve supplier relations, all buyers actively renew their involvement by signing our code of ethics. Twice per year everybody within the company who deals with external suppliers is asked to participate in a questionnaire that aims to raise awareness of issues such as bribery and other illegal activities.

In 2017, Air France elaborated and communicated, to all the employees in relation with external parties, an ethics guidelines reminder that includes principles on commercial and financial ethics, confidentiality, and CSR commitment compliance. This measure was complemented by an online anti-bribery training completed by all employees dealing with external parties.

Air France-KLM believes that, in order to become a truly sustainable airline, suppliers must join the Group in this commitment based on a shared set of values and principles. Taking this to be the basis of building sustainable relationships, the Group requires from its suppliers to conform to the “Supplier charter”. This charter, which is based on the UN Global Compact principles, sets out the standards of behavior the company endorses in relation to ethics, and social and environmental principles. The set standards are also included in Air France-KLM’s contracts.

The Supplier charter is further reinforced with the Supplier Code of Conduct, comprised of additional international guidelines such as the Universal Declaration of Human Rights, the UN Guiding Principles on Business and Human Rights, Children’s Rights and Business Principles, the Core Conventions of the International Labour Organization (ILO) and the OECD Guidelines for Multinational Enterprises.

All suppliers have a set CSR Indicator. A CSR indicator is based on one or more of the documents or statements listed below. The CSR Update Procedure Document is included in each Supplier Profile:

1. Air France-KLM Supplier Sustainable Development Charter
2. Commitment to UN Global Compact 
3. EcoVadis Score or equivalent, approved by the CPO office
4. Annex to the Contract
5. Sustainability Charter provided by supplier
6. Supplier website/CSR Statement/Sustainability Report, validated by CPO Office

Consistent with our CSR compliance policy, those assessed who did not reach an acceptable level will have to implement remedial measures to meet the Procurement division’s requirements. For Air France, these cases are discussed during the quarterly steering committee meetings managed by the Procurement and the CSR departments. 

Supply chain risk assessment

CSR performance assessment

We use the EcoVadis online platform for assessing supplier CSR performance. Suppliers are evaluated on the basis of social, environmental, ethical and supply chain management criteria through different sources such as, for example, a customized questionnaire. Depending on their score they are given a bronze, silver or gold “medal” in recognition of their performance.

A five-step risk assessment process has been formalized in order to arrive to a prioritization of risk associated with the production of products or services, and/or the purchased products’ country of origint. For the hardware and beverage product groups the prioritization is ready for follow-up.

Supplier Relations Management System (SRM)

Building on the long-term relationships between buyers and strategic suppliers, SRM has been deployed since 2013. SRM suppliers are a selection of Strategic suppliers who qualify after being segmented: in 2017, 28 suppliers in different domains, from airplane interior cleaning companies, such as Asito and Kluh, to temporary staff agencies, such as Randstad and Adecco, and facility management companies, such as Atalian and Sodexo, were approached in this way, by using SRM. This approach has brought about greater awareness and involvement, leading to a steady growth in the creation of joint goals.

The SRM approach puts issues like corporate social responsibility in the centre of discussions with suppliers and enables them to move forward together on these points. SRM is further employed in the procurement domains and established in close relation with our businesses.

Managing non-commitment/non-compliancy

According to our non-compliancy policy which is being progressively developed:

• All suppliers are asked to sign the Sustainable Development Charter.
• Suppliers identified as rigid and high risk are requested to take part in a CSR assessment conducted by EcoVadis.
• Suppliers who are active in the medium and low risk categories are also requested to conduct an EcoVadis assessment.
• Suppliers who do not obtain a global score of at least 35 are asked to provide a corrective action plan. The policy focuses on continuous improvement.

By 2017, 309 suppliers have been assessed by EcoVadis and reassessment campaigns are launched addressing suppliers with outdated scorecards. In addition, more than 9 on site audits have been led in 2017.

CSR opportunities

Engaging suppliers in their CSR performance and challenges helps to identify CSR opportunities:

• Environmental, social and ethical criteria were integrated in product/service specifications and contracts, where relevant.
• We also contribute to supply chain sustainability by collaborating with suppliers to develop innovative and sustainable solutions.
• Procurement cooperates with organizations and companies in the sheltered sector on multiple projects, representing a total expenditure of around €19 million. In addition to working on operational features, this partnership also aims to develop new products and service features. For example, together with our partner in the sheltered sector, the Group is improving the run kit case that contains a clean T-shirt and some toiletries for passengers with an overnight wait due to a cancelled  flight. We are seeking for more quality by reducing disposable contents and plastic. Thanks to the collaboration and the willingness to improve, a more environmental-friendly kit will be provided.
• Air France-KLM focuses on the development of small and medium-sized companies and start-ups, the creation of innovation centers, such as the Digital Studio, and participation in business incubators. In 2017, the Group once more improved on all indicators in the SME report established by the Charter for Public-Owned Companies, especially those concerning information sharing and dialogue: Air France has designated a mediator for SME in case of communication of specific needs.
• Through its open innovation approach, Air France offers its customers innovative products and services designed by young innovative companies, such as an onboard cinema for the new airline Joon, which includes a big angle cinema screen, noise-reducing headset and a top-of-the-range entertainment catalogue.

In 2017, more than 600 suppliers were invited to answer the Air France-KLM materiality analysis questionnaire and give their opinion on the most material topics.

A CSR training program has been established for the French buyers. The CSR awareness is part of the major focus of the annual procurement action plan.

SOME EXAMPLES

Digital Press

The free smartphone and tablet app Air France Play offers a wide choice of newspapers and magazines, videos and music. This content is accessible 30 hours before the flight’s departure. The onboard entertainment reduces environmental impact:

• Lesser quantities of printed newspapers: 6 million magazines less taken on board Air France flights.
• Less weight carried on board: Reduction of 937.4 tonnes carried, saving around 3,000 tonnes of CO₂ emissions in one year.
• Less waste to be processed after flights.

Recycling of uniforms

Air France organized another collection of uniforms and overalls, in partnership with a company in the sector.

• 8.56 tons of clothing were collected in 2016 and recycled in a facility specialized in waste processing, then transformed into cement granules.
• Another collecting campaign is scheduled for 2018.

This process is part of Air France’s permanent commitment to seeking new partnerships and innovative solutions.

We also work on:

• Recycling of coffee capsules: since last spring, around 500kg of coffee has been recycled in 2 Air France sites.
• Energy economy: all light bulbs in cargo workshop have been replaced with LED lights, in partnership with an EDF subsidiary.
• New products: in the new airline, Joon, parts of cabin crew uniforms are made with recycled yarn.
• Customer satisfaction: the Group supports the wine sector. On board, 700,000 Champagne bottles are served to passengers in all classes every year and 830,000 wine bottles are served every year to First and Business class. 7.4 million small bottles are served every years in Economy class.
• Green IT: a data centre renovation that included building isolation, relied on a mechanism of reusing the Data Centre heat for the heating of the building. Also, 6,000 square meters of solar panels were installed on top of the outdoor car park deck providing electricity for the site, thus reducing the annual CO₂emissions by 65 tonnes.
• IT departments have made agreements with suppliers to remove all packaging on IT hardware.
• Integrating electrical vehicles, for example at Schiphol and  Paris-CDG hubs.
• Cargo: Introduction of lightweight nets whose reduced weight contributes to lower CO₂ emissions.

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Inventing the transport of the future, more responsible, more sustainable

Once per week, over the course of more than a year, an Air France Toulouse-Paris-Orly flight has been powered using 10% sustainable biofuel, to showcase responsible travel. The initiative aims to shape the responsible customer experience of the future, with a commitment to reducing environmental impact and increasing societal value.

One year to make a difference

Over the course of the year, various themes of responsible travel have been addressed, ranging from local development to the aircraft of the future. The initiative enables Air France and its partners to showcase their best practices, and to trial innovation for more sustainable travel.

https://youtu.be/IbYYZyh4bHo?t=12

CO-INNOVATION

To maximize innovation, Air France is working together with other stakeholders who share the same values:

• 14 financial partners to the Lab’line project.
• Employees, customers and startups.

All stakeholders have been invited to contribute, through challenges, project tenders and innovation seminars.

Live open innovation

Resulting from a call for projects addressed to French start-ups on the topic “responsible air travel”, four projects were developed and tested on the Lab’line flights for 6 months, starting September 2015.

Air France took this opportunity to launch a Flying Blue Miles crowdfunding innovative operation to allow passengers to offer their miles to the 7 start-ups supported by the Lab'line for the future.

FOSTERING EQUAL OPPORTUNITY

At Air France, internal recruitment, selection and professional development processes are governed by a code of ethics.

As a signatory of the Diversity Charter, Air France expresses its desire to better reflect, in its workforce, the diversity of the French population and to struggle against any form of discrimination. The airline organises awareness-raising actions and uses a range of information tools to support managers and raise awareness among the employees, such as e-learning, classroom training modules, and a practical guide on religious diversity in the workplace.

In January 2016, Air France signed a new labour agreement, “ATGPEM” (Accord Triennal de Gestion Prévisionnel des Emplois et des Métiers et Contrat de Génération du Personnel au Sol). A chapter is dedicated to managing people of different ages (generation contract), for example, the continuing occupational integration for young people, employment for seniors and transmission of know-how and skills.

GENDER EQUALITY

For more than ten years, professional equality between women and men has remained a key issue and progress area in HR management.

• A series of female-male comparative indicators have been included in the steering of human resources policies and management processes (training, careers, quality of life in the workplace, remuneration…). These indicators are monitored annually within the framework of an audit carried out with each division to make sure women and men are treated equally.
• By signing the Parenthood Charter, Air France committed to help change mentalities in the company. It offers an enabling environment for parents-employees and respects the principle of non-discrimination in the occupational evolution of parents-employees. A special training module was established to support employees returning to work after maternity and / or parental leave, aimed at enabling a smooth transition back into working life within the framework of a positive work / life balance: three training sessions were proposed in 2017.
• As part of its policy designed to promote gender diversity throughout the company and to enhance the access of women to decision-making positions, Air France aims to achieve the target of 5% more female managers in 2020 (objective integrated in 2016 into the annual performance contracts signed by the Executive Committee). In 2017, this percentage stood at 34.6%.

• A coaching scheme was established for high-potential women, alternating collective with individual coaching sessions to promote access for women to positions of responsibility at the highest level within the company and the Group: 30 high-potential women took part in this program in 2017.
• In March 2017, on International Women’s Day, the “Dare To Speak” initiative was introduced, so that employees could report unpleasant situations and sexist language occurring in the company. Everyone was encouraged to testify and to freely express themselves in the “Sexism, not our style” group, on our corporate social network “Yammer”, and on the email address bp.osonsledire. This awareness campaign on everyday sexism helped in informing people and created a platform for factual and objective free speech. Since this event, the group “Sexism, not our style”, as well as the email address bp.osonsledire have been actively maintained. 
• Company employees, such as female pilots, were part of the Air Women’s Day, organized by the AFFP (French organization of female pilots). On this occasion, and on an annual basis since 2016, Air France has granted a scholarship to a young girl to encourage her to fulfill her sporting dreams and a career in air transportation;
• The Industry Department was part of the “Let’s increase female representation in air transportation jobs” action, in partnership with AirEmploi (association of which Air France is a founding member and whose mission is to inform on and promote jobs in air transportation as well as various related courses) during the Paris Air Show. The aim is also to promote technical jobs so that junior and high school students near airports would get interested, and to award them within the framework of a national challenge.

DISABLED PEOPLE

We have a proactive approach to helping people with disabilities into work. In 2017, the Group employed 2,880 people with disabilities, which represents nearly an 11% rise compared to 2016.

Air France signed the 10th Disability Agreement 2018-2020, which aims to pursue and strengthen initiatives to promote improved, career-long support for employees with disabilities. In 2017:

• The share of employees with disabilities within the total workforce continued to grow to 6.38% compared to 5.84% in 2016. Air France exceeded the objective of reaching a 6% employment rate of persons with disabilities (global Corporate goal including direct actions and buying from the sheltered sector).
• 29 people with disabilities were recruited by Air France.
• Employees with disabilities were aided in retaining their jobs, through support and adaptation initiatives, thanks to 200 actions in 2017.
• Increased use of companies and organizations in the sheltered sector: more than €19 million of purchases from this sector.

INCLUSIVE CORPORATE CULTURE

Air France is committed to equality and respect for sexual orientation and therefore have a number of networks and initiatives in place, such as “Personn’Ailes” and “Over the Rainbow” LGBT networks. For example, Air France supported “Personn’ailes”, the association of LGBT and Gay Friendly employees of the company, by financing the presence of a float in the Gay Pride parade in Paris in June 2017. These kind of actions reaffirmthe company’s commitment to social inclusion among its employees as well as its customers.

LISTENING AND INVOLVING STAFF

The Air France Employee Experience initiative

Numerous achievements were made in 2017 both within the airlines and transversally across different divisions. Here are some examples:

• Within the framework of the #Motivation undertaking, Air France encouraged the emergence of a HappyCulturers community within the teams, by gradually transforming the working and common spaces, proposing new digital tools and developing mobile applications facilitating access to online training. Employees increasingly acted on their own initiative by developing their own ideas and projects. Hackathons were organised and a feedback culture was also developed with “short feedback loops” between managers and their teams.
• #TeamSpirit was reflected in the creation of Digital Champions to promote the company’s digital transformation amongst their colleagues.
• In January 2018, the #SocialResponsibility commitment was achieved with the first citizen solidarity day organised by Air France, called “Better Together”: for one day, during their working time, 1,000 employees were able to join forces with different associations. In the first edition of this initiative, the employees could choose to take part in one of 60 assignments set up jointly with 43 partner associations working in the following fields: supporting children in need, education, training, employment, disability and health, the fight against insecurity, environment and intergenerational sharing.
• To measure progress on this initiative and its in-field effects, Air France relies on the Employee Promotor Score, which is based on the Net Promotor Score model, the indicator used to measure the level of customer satisfaction. The EPS had moved up by ten points during 2017.

STIMULATE COLLABORATION

We are developing collaborative and innovative projects that allow employees to work together across sectors.

Caring attitude

Improving communication and interpersonal relations among staff is imperative, as the quality of service for the end-customers depends on the quality of relations “backstage”. The caring attitude comes from a core Air France brand value. The idea is to simultaneously be attentive and caring, creating value for the company and the customer in everything we do, and being truly proud of the business.

In 2017, Air France reaffirmed its commitment to putting “people” at the heart of its strategy and being the company most attentive to interpersonal relations. Air France teams are still trained on the Five Attitudes of the Service which define the company: “to personalize, to add value, to pay attention, to have a sense of detail and to dare”.

• An important training programme for operational managers has been implemented. 3,600 cabin crew managers, 70 hub rooms’ managers and 150 Air France direct sales managers were trained to give a new impetus to the Caring Attitude. This program has been designed to give more meaning to the whole approach and reaffirm the strong messages shared by all managers: exemplary behaviour, room for error, possibility for every employee to take initiative. Individual tests have been suggested, that would enable managers to get to know their strengths and to learn how to improve the Caring Attitude they are supposed to embody and coach, so that they could find their own formula to further develop in their manager roles.
• “Empowerment” budgets were extended to support initiatives taken for customers, a true commitment leverage for employees and a pleasant experience for customers.
• Convinced that the right balance of attention is essential to deliver a good Customer Experience, the company has started an in-depth work on the Employee Experience, taking the same approach as it does in working on Customer Experience.

CSR AWARENESS

The Group has a number of different channels for in-house communication of CSR information:

• The Air France-KLM Yammer platform, where “Air France Takes Care” and “CSR at KLM” groups were created to encourage employee communication and interaction. The shared information and discussion forums are open to all employees.
• “Les Managers Cafés” at Air France: it hosted 44 internal conferences in 2017 whose subjects addressed current CSR themes such as innovation, new management, circular economy or sustainable tourism.

• Meetings on various CSR themes regularly organized at Air France, notably during Sustainable Development Week.
• Internal forums on the subject of environment.

Awareness-raising initiatives for employees are taken through in-house surveys, gathering employees’ impressions and suggestions.

In February 2017, the materiality questionnaire was sent to a panel of 20,000 Air France and KLM employees (managers and non-managers) and the Group stakeholders, with a 13.7% response rate. Some of its results are:

• The top five material topics are: customer satisfaction, safety and security, market competitiveness, operational performance, financial performance.
• Fleet development and innovation follow with good scores.
• Social topics such as human rights, labour relations & social dialogue, health and safety scored high.

INNOVATION PROGRAMS

Air France and KLM encourage employee involvement in progress and innovation initiatives.

DIP at Air France

Developing Innovation Program (DIP) at Air France is a system allowing everyone to introduce changes to the company. Any staff member can suggest an innovation or an idea on how to improve a process in their area of activity and become an agent of innovation. The DIP program has seen further deployment with the aim of covering 100% of the company, this contributing positively to the company’s performance. The best ideas by category are rewarded each year.

Around 8,135 suggestions were submitted in 2017. Ideas reflect the Group’s strategic priorities:

• The top three topics are: quality management, customer satisfaction and simplification.
• Ideas about occupational health and safety are crucial for risk prevention purposes.

The grassroots approach is central to Trust Together ambition and is a key part of the transformation mechanism.

In 2017, the CSR Department launched a new DIP: “Supporting the fight against waste”. Every employee of the company could participate since the challenge was non-hierarchical and open to all. The program proved to be a great success, with 386 ideas rapidly sent in, which confirmed the quality, diversity and inventiveness of Air France employees. The “jury’s favorite” was the creation of a “cleaning day”, whereby everyone’s irrelevant mails are deleted along with the CO₂ emissions generated through their storage.

AF Angels

AF Angels is the internal Air France crowdfunding platform, launched at the end of 2016 on the initiative of employees. Employees can now be project sponsors and ask the company for financial support. Business Angels, who are also employees, will support and finance projects they choose thanks to a budget allocated by the company. A first campaign enabled the financing of 2 projects: the Toolbox of JC, kits for new employees, and Green HQ, to fill the workspaces with plants. This is how a collective garden was created on the Air France premises in Roissy.

Another campaign centred on internal transformation, customer satisfaction, operational performance, social and solidarity economy, circular economy and competitiveness took place in the spring of 2017. During this campaign, 2,000 employees chose among 25 projects developed among employees. 8 have been entirely financed and implemented between July and December. Among these projects, there are:

• The creation of a FabLab, “AG Makerspaces”, in CDG, Montreuil and Toulouse;
• The recycling of seat covers and life jackets into objects for employees;
• The creation of a “I Love my Job” calendar for 2018 made out of photos taken by employees in their working environment, whose profits have been donated to the Foundation Air France;
• Bee whizz, an app for flight crews.

In 2018, the intrapreneurial plan will go further with the launch of the new Air France intrapreneurship program “Take Action for the Future”. This program will have the same basic principles as AF Angels (intrapreneurial projects implemented by employees, collective intelligence to select the ideas) but will focus on ideas creating new businesses for Air France and guide the project implementers in the creation of a business plan before a potential incubation. The platform has been open to all employees since February 1st and 67 projects have been suggested in February alone.

LOCAL STRUCTURAL INITIATIVES

In 2017, Air France contributed to efforts to simplify and merge local structures to make regional action more transparent and effective.

KNOWLEDGE AND SKILLS FOR FUTURE GENERATIONS

Air France encourages initiatives promoting access to training leading to professions in the airline industry through a number of different associations and educational programs for young people.

As part of our commitment to equal opportunities, we have led various initiatives to bridge the gap between education and business.

For Air France:

• More than 2,200 interns (representing around 3% of total employees) from various backgrounds have been welcomed to all Air France careers, given the support they needed to acquire new skills and guided in their professional integration.
• Each year, several hundred young students and school children complete their end-of-study training course or gain work experience within the company.
• For more than six years, Air France has welcomed school children from priority districts to learn more about the company’s professions. In 2017, within the framework of the Tous En Stage association, of which Air France is a founding member, Air France welcomed some 60 school children. Tous En Stage is an innovative scheme that enables children in the airport catchment area to learn about four different companies and four professions in the space of a week.
• In 2017, Air France renewed its participation in the National Youth Day (under the auspices of the French Ministry of Education and the Economic and Social Council), by inviting school children on a behind-the-scenes visit of Paris-Charles De Gaulle airport.
• 50 sponsors and company executives, support the Nos Quartiers Ont Des Talents association that helps young qualified people from underprivileged districts to find their first jobs. This program is based on the network of 50 mentors in the Article 1 (ex-Passeport Avenir) program which, since 2013, has helped young people based in the region with further education.
• 5 Air France executives have become “Engineers for Schools” and are available to the national education authorities, with the objective of bridging the gap between education and business.

COMMITTED TO THE EMPLOYMENT OF VULNERABLE PEOPLE

Committed to priority neighborhoods, Air France is a signatory of the Corporate and Neighborhood Charter. Trainees from Second Chance Schools gained experience in the workplace by participating in maintenance activities, and, thanks to the association Papa Charlie, access to mobility and affordable car rentals were provided for vulnerable people who travel to Paris CDG for work. Air France encourages business creations, by supporting local and regional competitions that target the inclusion of priority neighborhoods (CitésLab), women (Créatrices d’Avenir), or students and start-ups (Challenges du Numérique).

Air France also supports workers with disabilities by working with sheltered sector companies. In 2017:

• Air France made a spending of €19 million in the sheltered sector. Air France is the French leader in terms of share of turnover dedicated to the sheltered sector companies. The airline is expanding its partnership with the sheltered sector year on year, it entrusts the sheltered sector with highly critical services and supports it in adapting its offer. For example, IT Department works with 4 sheltered sector suppliers.

STIMULATING ECONOMIC DEVELOPMENT

Thanks to the structure and density of its network, Air France-KLM is the largest intercontinental carrier between Europe and the rest of the world. The Air France-KLM Group currently operates the largest network between Europe and the rest of the world.  Together with the flights operated by Delta within the framework of the transatlantic joint-venture, in 2017 Air France and KLM served 134 long-haul destinations world-wide, of which 41 in Africa, 26 in North America, 22 in the Asia-Pacific region, 12 in the Caribbean, 3 in the Indian Ocean, 14 in Latin America and 16 in the Middle East.

As one of the first international groups to open flights to countries affected by geopolitical crisis and one of the last to suspend them, the Group fully supports their economic development. For example, in 2016, Air France reopened it routes to Tehran (Iran).

With a strong presence in Africa (55 destinations), we promote regional economic and social development. Since 2012, Air France has been the strategic partner of Air Côte d’Ivoire. Air France supported the creation of this company, alongside the State of Côte d’Ivoire, by investing in its initial capital. Today, Air Côte d’Ivoire’s fleet allows the airline to serve 27 destinations in West Africa and Central Africa from Abidjan. Air France-KLM is also the strategic partner of Kenya Airways and has developed a commercial cooperation with Kukula in South Africa and a technical cooperation with Congo Airways in the Democratic Republic of Congo. In 2017, Air France-KLM enriched its network with new destinations such as Marrakesh, Dakhla (Morocco) and Accra (Ghana).

We also contribute to Latin American and Caribbean growth through our large long-haul network from Europe to these destinations. We serve 27 destinations in the region, offer over 240 weekly flights from Paris-CDG and Amsterdam Schiphol and we are improving our connectivity in South America thanks to our long term strategic partnership with Brazilian carrier GOL, which began in 2014, enabling Air France, KLM and GOL customers to benefit from a network that now links more than 30 European with over 50 Brazilian cities. This network positions the Group as the main European airlines serving Brazil.

RESPONSIBLE AND SUSTAINABLE TOURISM

If tourism is well managed, it contributes to economic activity, development and job creation, helping to lift millions of people out of poverty. As the concerns of tourism and air transport overlap, Air France and KLM committed to mobilize partners and clients to make tourism a positive catalyst for change.

Through our longstanding partnerships with a number of NGOs, social enterprises and universities, we support initiatives for sustainable tourism:

• MAD (Make a Difference) Travel, a Filipino social enterprise linked to Gawad Kalinga, creates alternative travel experiences, immerses travelers in local culture, and welcomes them in eco-B&Bs, one of them financed by the Air France-KLM Group.
• Air France is a partner of ATR (Agir pour un Tourisme Responsable), an association of tour operators, which aims to develop and promote sustainable tourism.
• Acting for Life, an Air France NGO partner, promotes responsible tourism as a virtuous circle that minimizes negative social, economic and environmental impacts and generates greater economic benefits for local people.

With the framework of the International Year of Sustainable Tourism for Development, declared by the United Nations in 2017, Air France committed to raise awareness among its passengers. Promotional films on responsible tourism are available aboard Air France’s planes, in partnership with a responsible tour operator, Double Sens.

Throughout the year, Air France participated in events like the NoMad Responsible Tourism Festival,

and the Sustainable Tourism Awards, recognizing the most responsible and sustainable tourism-related initiatives.

LOCAL ENTREPRENEURSHIP AND SKILLS DEVELOPMENT

By identifying the key innovation players in Africa, Air France pursues its Open Innovation approach. In partnership with Myafricanstartup, Air France encourages the establishment of a genuine hub of incubators in Abidjan, in cooperation with the African Development Bank. Air France took part in the first edition of the “100 African Startups to Invest in 2017” published by MyAfricanStartUp. This initiative aimed to increase the visibility of start-ups with strong potential in Africa. In total, 22 African countries were represented in the 100 startups selection.

In 2017, Air France-KLM was a partner of Africarena 2017, Africa’s largest technological innovation event. The event was an opportunity for international companies and investors to discover a selection of startups. Air France-KLM chose 6 startups to compete in a hackathon and present their innovative solutions about “Smart Commerce” and “Smart Travel”.

Based in Bamako (Mali) and founded in 2005 with the help of Air France, IAMA(Institut Africain des Métiers de l’Aérien) provides the necessary teaching at an international level to air transport operators, throughout the African continent. Through MATEA (Maintenance et Assistance Technique des Engins Aéroportuaires), Air France has developed a second-hand equipment sales service that has been entirely reassessed. The aim is to guarantee the reliability and performance of track equipment in African locations, by offering equipment at the best cost to local handling companies. Also, through audit and repairing missions, African providers benefit from Air France’s experience in maintenance of airport equipment.

Air France works to help disadvantaged children through its Corporate Foundation which celebrated its twenty-fifth anniversary in 2017. Since its inception, the Foundation has facilitated the realization of 1,340 projects, mostly sponsored by Air France employees: 379 in Africa, 161 in Latin America, 209 in Asia, 420 in France, 57 in Europe, and 114 in the Caribbean and Indian Ocean regions. In 2017, the Foundation supported 94 projects across 39 countries.

Air France Humanitarian Aid Department: 405 tickets donated to more than 33 NGOs helping children in need of medical care; 60 NGOs received assistance for medical equipment transport.

Acting for Life

For more than 40 years, the airline has partnered with the Acting for Life NGO which operates in Africa, Latin America and Asia through economic and regional development programs, support for small livestock and arable farmers, and the vocational training and integration to the benefit of the most disadvantaged populations. In France, Acting for Life is recognized as public utility, and in 2017, Acting for Life has sustained 64 projects worldwide.

Aviation Without Borders

Air France and KLM support the French Aviation Sans Frontières and the Dutch Aviation Without Borders.

This emergency aid organization carries out air transport missions, transports cargo shipments with medical supplies to remote areas and arranges transport for sick children who are accompanied by Air France and KLM volunteers. In 2017, 1,092 sick and recovered children were carried on Air France flights and 8,241 packages of medicines and minor medical supplies were shipped to 25 destinations by Air France.

Gawad Kalinga

Since 2015, Air France-KLM has expanded its locally born and longstanding partnership with Gawad Kalinga by signing the first Air France-KLM corporate partnership with this NGO and offering Flying Blue members to give miles to GK. Air France-KLM shares GK’s innovative vision in the fight to eradicate poverty.

OTHER INITIATIVES

Members of the Group’s loyalty programme Flying Blue could donate their earned Miles to dedicated charities. KLM works with seven partners, including its strategic partner Wings of Support, as well as the Red Cross, the Ocean Cleanup, Giro555, Close the Gap, WWF-NL and Unicef.

In September 2017, Hurricane Irma caused considerable damage in the Caribbean, mainly on St. Martin. In addition to commercial measures and mobilization of company staff, Air France Cargo worked together with the Ministry of the Interior to help send equipment to the region and the Air France Foundation launched a major fundraising campaign for Air France-KLM staff. The funds are used to finance rehabilitation projects for children in Saint Martin.

ENVIRONMENTAL PARTNERS

Reforestation Programs

The Holistic Forestry Conservation Program in Madagascar, supported by Air France since 2008 and co-financed by the French Development Agency (AFD) and the French Global Environment Facility (FFEM), is contributing to developing the living standards of local communities while protecting the biodiversity of the island. The second phase of the project (2014-17) aims to strengthen the conservation activities, expand and improve the propagation of sustainable alternatives to deforestation, and to validate the project under one of the existing REDD+ international labels.

The aim is also achieve carbon certification of the project, whose associated sale of carbon credits will complete the financing for a phase III that would enable an even longer-term commitment to supporting the local communities committed to preserving their environment.

Biodiversity program

Air transport commits with HOP! Biodiversity in a very concrete environmental approach. With vegetation covering about 70% of their surface area, airports can play a role in the preservation of the most threatened natural habitat of Eastern Europe: grasslands.

For HOP! Air France, at the initiative of the project, finding out what lives (i.e. the biodiversity) in these grounds is a responsible way of building awareness within the company and among its partners, of respecting the environment, identifying best practices and promoting conservation measures, while respecting the safety procedures of the industry.

The project HOP! Biodiversity was launched under the guidance of an independent scientific committee (National Museum of Natural History, CNRS, Conservatoires) with habitat and species evaluation carried out by scientists together with airport staff and citizen volunteers under the guidance of science protocols (primarily the Vigie Nature Program).

Four years after the launch of the program, HOP! Biodiversity – which became an association in June 2015 – has undergone a fast exponential growth:

• HOP! Biodiversity gathers 4 airlines, 14 airports, the National Museum of Natural History and the French civil aviation authority (DGAC),
• The project is recognized by the French Ministry of Environment, as a part of the National Strategy for Biodiversity (SNB).

This is a project of both industrial and environmental importance, unique in France and in the world in the field of aeronautics

EMPLOYEE INITIATIVES

Strong support was shown for the Air France Employee Experience initiative and its #SocialResponsibility commitment in January 2018, when Air France organised its first citizen solidarity day called BetterTogether, during which 1,000 employees volunteered to assist different aid associations in 10 regions. They could choose to take part in one of 60 assignments set up jointly with 43 partner associations in areas as varied as children’s care, the environment, disability, intergenerational sharing, education, and fighting insecurity.

Within the “Friends of Air France Foundation”, more than 2,500 employees are involved in various voluntary, childhood-focused projects. Their involvement can take different forms, from volunteer work to skillsharing or donations.

Transavia has implemented the Support’air plateform that supports solidarity projects led by employees.

ENGAGING OUR CUSTOMERS

We are committed to engaging our customers in social and humanitarian programs:

• The Air France inflight magazine devotes a monthly article to a project supported by the Air France Foundation and Acting for Life.
• Air France informs passengers about the damage caused by child sex tourism by financing and broadcasting ECPAT France’s prevention campaign, and by providing support to 18 other ECPAT projects for child protection around the world.

• Air France-KLM Flying Blue passengers can support NGO projects by donating Flying Blue miles. 4,103 tickets were donated by Flying Blue members to NGO partners in 2017.