How can aircraft leasing companies improve their social impact?

Global CO2 emission contribution by the aviation industry stands at around 2.5%. The main cause of these emissions is fuel used by the planes. Though industry is working with developing hydrogen fuel cell technology for the planes, it will take 10+ years for this technology to mature. Many small and large aviation players are designing electric planes and some are also looking into SAF (sustainable aviation fuel) that has smaller carbon footprint. Carbon offsetting programs are getting more popular in aviation industry. EasyJet claims it can operate “net-zero carbon flights”. Delta says it's going to become the “first carbon neutral airline globally”. British Airways now allows its customers to pay a small fee to “fly carbon neutral”.

Before any aircraft leasing company can improve its social impact, it must first understand where it stands. This involves a comprehensive assessment that looks at the environmental footprint, the economic consequences of its operations, and the socio-cultural effects on communities. Once measurement tools are in place, it's essential to evaluate both the positive and negative impacts. By quantifying these impacts, companies can identify areas for improvement and track progress over time. This data-driven approach allows for a more nuanced understanding of how different areas of operation affect their overall social footprint. Only with this understanding can a company improve its social impact through the approaches discussed previously.

To align social impact with business strategy, an aircraft leasing company must integrate sustainability and ethical practices into its core operations and decision-making, ensuring that each business move supports its overarching commitment to environmental stewardship, economic development, and community well-being. it's a complex challenge. Saying it is one thing; executing it requires comprehensive planning, consistent effort, and an organizational commitment to integrate these ideals into every aspect of the business, and it also demands flexibility and resilience, while trying to achieve these ambitious goals. It's a continuous process that requires monitoring, learning, and adapting strategies over time.

Developing key performance indicators (KPIs) that can measure the success of social impact initiatives against business performance is critical. Regularly communicate the company’s social impact strategy and progress to all stakeholders. This transparency builds trust and can enhance reputation. Additionally, actively engage stakeholders in an ongoing dialogue. Not to forget training for employees to ensure they understand and are equipped to implement the social impact strategy every day. Leadership should exemplify the company’s values and vision in decision-making. Additionally, establishing governance structures, such as a sustainability committee at the board level, can ensure accountability and oversight.

Continuously review the alignment of social impact and business strategies. As the business evolves and external conditions change, be prepared to adapt strategies to maintain alignment.

Publish an annual sustainability or social impact report to document progress and reflect on areas for improvement. This not only holds the company accountable but also demonstrates a commitment to stakeholders.

By following these steps, an aircraft leasing company can create a social impact strategy that is not only aligned with its business strategy, vision, and values but also resonates with stakeholders and contributes to sustainable industry practices.