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Are airlines already on the path to sustainability? Or is Net Zero a long way ahead?

Nagarro | México

Although airlines have started on their journey to net zero, it is easier said than done. In October 2021, the International Air Transport Association (IATA) approved a resolution to achieve net zero carbon emissions by 2050, aligning itself with the Paris Agreement. While IATA has a concrete plan in place to achieve this target with Sustainable Aviation Fuel and more efficient airframe and propulsion technologies set to do the heavy lifting, for the airlines to be truly net zero, it is essential to look beyond these two factors. The need of the hour is to adopt a holistic approach across the entire aviation ecosystem. 

Going all-in to achieve the net zero goal

Airlines today need to make bolder moves to achieve net zero, and we have defined a 3-pillar approach to help them:

Get control of your carbon footprint

It’s crucial for airlines to track the lifecycle of carbon footprint generated across airline operations. They must first understand their carbon footprint across Scope 1, Scope 2, and Scope 3 criteria as laid down under the GHG protocol and then establish a plan of action to achieve net zero. The next step is to track, collect, and validate resource utilization data, fill in data gaps, identify and record offsets, and forecast emissions.

Transform operations and supply chain

After airlines gain control of their carbon footprint, the next step is to decarbonize their operations and supply chain. Airlines can leverage emerging technologies such as AI/ML, RPA and the metaverse for blending digital workforce personas across business functions, managing cabin waste, and incorporating predictive approaches across the value chain.

Seek differentiation with eco-conscious passengers

Airlines' measures to reduce their carbon footprint can directly correlate with their revenue. It allows differentiating themselves from competitors and establishing an emotional connection with the passengers, further translating into loyal promoters for airlines. This helps raise the brand value for the airline and enables it to capture the market share at a premium price.

Conclusion

The aviation sector is already buckling up to introduce more and more sustainable practices across all their processes, but the challenges are many. We, at Nagarro, bring in much-needed technological and domain capabilities to help airlines embrace the challenge of sustainability. To know more about how we support airlines in their net zero journey, contact our experts at explore.tnl@nagarro.com.