Annual Review 2006/07

The environment

Climate change has moved firmly into the public consciousness, challenging individuals and corporations to think about how we can limit our impact on the environment. We believe the aviation industry and BAA, should adopt a leading role in addressing the impact of harmful emissions on the environment.

Hotter summers, rising sea levels and thinning snow cover have all contributed to climate change taking its place on the front pages of newspapers. Many factors have contributed to this, with the aviation industry, the bedrock of BAA’s clients, estimated to make up around 3.5% of mankind’s total contribution, according to the Intergovernmental Panel on Climate Change*.

At BAA, we’re not shying away from our responsibilities, we’re taking the initiative on three fronts:

1. Reducing our own impact
2. Working with airlines and other airport users to reduce emissions from our operations
3. Pressing for the inclusion of aviation in the EU Emissions Trading Scheme.

Where we have direct control over carbon emissions, such as those from energy use in our facilities, we aim to lead the airport industry in minimising them. We have recently set a target to reduce our CO₂ emissions from energy use by 30% over 1990 levels by 2020. We had already set a target to reduce emissions by 15% over 1990 levels by 2010 and we are on track to meet that. To achieve these targets, our energy strategy includes using energy efficient technology, and investing in small-scale renewable energy. The new Heathrow East terminal, for example, will produce 40% less CO2 emissions than the buildings it replaces.

These actions are a big step forward, but our own impact is dwarfed by the effect of airlines themselves. Where do we stand on this much-debated subject?

We believe quick-fix, heavy-handed measures such as higher taxation to limit growth are not the answer. The money raised from taxes would go to the Government and would not necessarily be spent on reducing emissions. Instead, we’re fully behind other measures, such as emissions trading.

This approach gives genuine incentives for better environmental performance. The money raised through selling CO2 permits goes directly to companies which have reduced their emissions. So while aviation may not be able to cut its own emissions immediately, emissions trading will enable it to fund emissions reductions elsewhere. We believe emissions trading is a realistic and important move – if we can implement this in the UK and EU, we can influence change in other countries like the the US.

Find out more in our Corporate Responsibility Report 2006/07 (LINK)

* IPCC’s Special Report on Aviation to the Global Atmosphere, 1999.