MalaysiaN Airline System Berhad / Environmental report 2012

Contents 01
02
Foreword by Head of Corporate Safety
List of Abbreviations
03 Care for the Environment
03 Section 1: Aviation & the Environment
04 Section 2: Group Environmental Policy
05 Section 3: Our Emissions
06 Section 4: Aircraft Fuel Efficiency
11 Section 5: Other Environmental Information
13 Section 6: Environmental Management
14 Section 7: Voluntary Carbon Offsets
15 Section 8: Domestic, Regional & International
Environmental Affairs
16 Section 9: GRI 3.1 Indicators
 01
Malaysian Airline
System Berhad (10601-W)

VISION:
To be the Preferred Premier Carrier

MISSION:
Our Journey towards making this Vision a reality requires us to:
• Put our People first and be the Employer of Choice
• Anticipate, consistently deliver and exceed customer expectations
• Build on our recognised personalised and sincere 'Malaysian Hospitality' service
• Innovate to make travel and doing business with us hassle-free
• Sustainable value creation for our shareholders

Foreword by
Head of Corporate
Safety
“ Malaysia Airlines is excited about sharing our first Environment report. It is
a statement to declare that we recognise the airline industry contributes to
the carbon footprint of the travel business. This Report provides a view of

”
how Malaysia Airlines manages its carbon footprint to ensure a sustainable
existence with our people, planet and that we remain financially sound.
02
Malaysian Airline
System Berhad (10601-W) Malaysia Airlines Environmental Report 2012

List of
Abbreviations
MAS : Malaysian Airline System Berhad
MAS Group or Group : MAS and its subsidiary companies
MASwings : MASwings Sdn Bhd, a wholly owned subsidiary of MAS
MASkargo : MASkargo Sdn Bhd, an air freight and cargo operator and a wholly owned subsidiary of MAS
Firefly : FlyFirefly Sdn Bhd, a wholly owned subsidiary of MAS
AAPA : Association of Asia Pacific Airlines
A330 : Airbus A330 aircraft
A380 : Airbus A380 aircraft
APU : Auxiliary Power Unit
atk : Available tonne kilometre
B734 : Boeing 737-400 aircraft
B737 : Boeing 737 aircraft
B738 : Boeing 737-800 aircraft
B747 : Boeing 747 aircraft
EC : European Commission
EFB : Electronic Flight Bag
EU ETS : European Union Emissions Trading Scheme
CO2 : Carbon Dioxide
GHG : Greenhouse Gas
GPU : Ground Power Units
IATA : International Air Transport Association
ICAO : International Civil Aviation Organization
IPCCC : United Nation’s Intergovernmental Panel on Climate Change
ltkm : Load tonne kilometre
MRO : Maintenance, Repair and Overhaul
ULD : Universal Load Devices
UNFCCC : United Nations Framework Convention on Climate Change

Feedback
Please direct any feedback regarding this Environmental Report or any other matter related to MAS and the environment to
mustafa.ishak@malaysiaairlines.com
 03
Malaysia Airlines Environmental Report 2012 Malaysian Airline
System Berhad (10601-W)

Care for the Group Aircraft Fuel Efficiency

Environment
(kg Jet fuel per ltkm)

Waste and
wastewater
1 Aviation & the Environment 3%
Forestry
17% Energy
The industry is making great strides to reduce the
supply
environmental impacts associated with it. Aircraft 26%
today are 80% more fuel efficient than those
manufactured in the 1960s.
Agriculture
Collectively, the air transport sector represents just 2% 14%

of global CO2 emissions, with Energy supply being the

largest contributor at 25.9%, and Forestry at 17.4%.
Road transport accounts for 74% of emissions of the
Transport
transport sector, whereas air transport contributes 13%
12% of that figure. Industry
19% Residential and
Although our industry’s share of global emissions is commercial building
8%
small, it is expected to increase to 3% in 2050 as the
air transport sector grows. As an industry, we realise
that we cannot stand still and watch our sector grow Source: UN's Intergovernmental Panel on Climate Change (IPCC) report
disproportionately relative to the other industries. 2007.

MAPPING OUT THE INDUSTRY COMMITMENTS

Known technology, operations and Economic measures No action

infrastructure measures
Net emissions trajectory y
Biofuels and additional new-generation log
hno
technology 'No actions' trajectory
Tec
ons
rati
Ope e
ctur
f r a stru
In
CO2 emissions indexed to 2005

Improve fleet fuel efficiency by Additional

1
1.5% per year from now until 2020 technologies
and biofuels Carbon
Cap net emissions from 2020 neutral
2
through carbon neutral growth growth

By 2050, net aviation carbon 1 2

3
emissions will be half of what they
were in 2005
-50% by
3 2050

2005 2010 2020 2030 2040 2050

Source: Carbon neutral growth by 2020 (CNG 2020) Chart, www.enviro.aero

The International Air Transport Association (IATA) and airport management. Economic measures, the
declared in 2009 that as an industry, we will achieve fourth pillar, will be used by 2020 to bridge the gap
carbon neutral growth from 2020 and halve our between these pillars and carbon neutral growth.
emissions by 2050. This will be achieved by a 4 Malaysia Airlines supports the IATA commitment
pillar strategy of improving efficiency through new and uses the 4 pillar strategy for reducing our own
technology, improving operational practices, and emissions which is elaborated further in the following
increased efficiency of the infrastructure of air traffic sections.
04
Malaysian Airline
System Berhad (10601-W) Malaysia Airlines Environmental Report 2012
2 Group Environmental Policy
Malaysian Airline System Berhad (MAS) will commit to
improve its environmental performance by managing
our global operations to minimise impact to the
environment and communities. This Environmental
Policy (Policy) provides a set guidelines to ease the
path and desire of MAS in keeping a balance between
business and environment.
Objectives
• Establish policies and strategies for sustaining
environmental performance
• Ensure adherence and compliance to environmental
legislation and other relevant environmental
requirements
• Instill environmental awareness amongst employees
Scope and Application
This Policy is applicable to MAS and all related
subsidiaries (Group). The Group shall endeavour
to prevent pollution and reduce its environmental
footprint by continuously improving the environmental
performance and compliance with environmental
legislations and other relevant environmental
requirements.
Policy Statement
• The Group shall comply with relevant environmental
legislations and other relevant environmental
requirements
• The Group shall continually improve environmental
performance by setting and reviewing objectives
and targets that relate to environmental performance
• The Group shall use natural resources efficiently,
and minimise waste and pollution where possible
• The Group shall enhance environmental awareness
among staff
• The Group shall communicate with relevant
stakeholders on environmental matters
 05
Malaysia Airlines Environmental Report 2012 Malaysian Airline
System Berhad (10601-W)

3 Our Emissions

MAS GROUP CARBON FOOTPRINT

What does a tonne of
Year 2010 2011 2012 Carbon look like?
Group Total
Emissions We talk about CO2 emissions, but a tonne of gas
('000 tonnes CO2) 5,902.20 6,027.14 5,461.64 is very difficult to imagine since we cannot see it.

Our carbon footprint for 2012 amounted to 5.46 million 1 tonne of CO2 is equal to :
tonnes of CO2. This included fuel burn for the Group’s • 445 litres or RM935 worth of RON95 petrol in
aircraft and ground energy consumption (electricity, Malaysia
diesel and petrol) at all the Group’s Malaysian hubs • 1,650 kWh or RM670 worth of household
- KLIA, Subang, Penang, Kuching, Miri and Kota electricity in Malaysia
Kinabalu. These represent Scope 1 and 2 of the • Enough petrol to fill 11 cars
GHG Protocol standards. The reduction in emissions • Enough petrol to travel 6,000 km in a car
compared to 2011 is a combination of our reduced • Your individual CO2 portion on a flight from
capacity in 2012, as well as our fleet renewal which Kuala Lumpur to London
saw the introduction of more fuel efficient aircraft.
We use the term CO2 as a short form for Carbon
2012 group carbon footprint Dioxide Equivalent emissions. There are other
('000 tonnes CO2) gasses that contribute to global warming (so
called Green House Gases or GHG), but the CO2
Diesel equivalent takes this into account.
10
0.19%
Electricity
78
1.43%
Petrol
1
0.02%

Jet Fuel
5,364
98.36%

By source, jet fuel is by far the largest contributor to our

carbon footprint at 98.21%.
06
Malaysian Airline
System Berhad (10601-W) Malaysia Airlines Environmental Report 2012

4 Aircraft Fuel Efficiency

Aircraft Fuel Consumption

Group Aircraft Fuel consumption Group Aircraft Fuel consumption

('000 tonne jet fuel) by Airline

2500 Firefly
2,294.5 1.52% MASwings
2,194.5 MASkargo 1.29%
2,083.5 7.91%
1,931.2 Hajj Charter
2000
1,838.8 1,855.9
1,705.2 0.76%
1,679.2

1500 Charter
0.46%

1000

500

0 MAS
2005 2006 2007 2008 2009 2010 2011 2012 88.06%

Fuel consumption in 2012 stood at 1.68 million tonnes
of jet fuel. The graph above shows the fuel consumed
since 2005. The yearly figures track the tones per km
(tkm) figures of Malaysia Airlines as our network and
capacity adjusts to market conditions.
Predictably, Malaysia Airlines’ aircraft represent
88.06% of the total jet fuel consumed, followed by
MASkargo freighter planes at 7.91%. Firefly and
MASwings use 1.52% and 1.29% respectively of our
total fuel. Since they operate the most fuel efficient
fleet in the Group - ATR72 propeller driven airplanes -
they punch above their weight in terms of fuel burned
per tonne of payload. Hajj and other charters make up
the remaining 1.22%.
 07
Malaysia Airlines Environmental Report 2012 Malaysian Airline
System Berhad (10601-W)

Fuel Efficiency Flight Operations

Group Aircraft Fuel Efficiency Flight Operations attained an impactful core savings
(kg jet fuel per ltkm) from fuel efficiency initiatives. Given the age of our
fleet, 2012 Fuel Burn against Planned rates surpassed
set targets. Good progress was made with a positive
variance of 11.62 million kg. The accumulated savings
0.45
from Total Planned Fuel since 2008 amounted to
RM147.8 million; savings in 2012 registered at RM86.1
0.40 million.

0.35 0.35 Fuel efficiency levels continued to improve at 1.87% of

0.34
0.35 the fuel index. From 2008 to 2012, total accumulated
0.33 0.33

0.31 0.31
0.32 fuel savings was 50.5 million kg. In 2012 alone, a fuel
0.30
savings of 26.6 million kg was achieved. These levels
are expected to improve beyond 2013 with the arrival of
more new technologically and fuel-efficient aircraft.
0.25

We have chosen to disclose our average fuel

consumption figures in kilograms of jet fuel per load
0.20
2005 2006 2007 2008 2009 2010 2011 2012 tonne kilometre (ltkm), as it is the same denominator
used in disclosing our financial performance. Reporting
fuel consumption based on actual load carried (ltkm)
rather than available capacity (available tonne km
or atk) gives a more accurate representation of fuel
We are proud to report that our fuel efficiency has efficiency because fuel consumption is more closely
improved year-on-year from 0.35 kg/ltkm in 2005 to related to the amount of load that the aircraft carries,
0.32 kg/ltkm in 2012, representing a significant 8.75% not its available capacity.
increase in efficiency over a short period of only 8
years. This is due to the hard work of our fuel efficiency However, comparisons year-on-year, as well as
team and the introduction of newer more fuel efficient between airlines, is made more difficult because fuel
aircraft. consumption varies depending on types of aircraft,
the load carried and distance travelled. For example,
airlines which operate short hops will report higher fuel
consumption due to take-off, climbing and landing
which consumes more fuel than cruising.

Aircraft technology, flight operations, air traffic

infrastructure and economic measures all play a part in
reducing our carbon footprint. These represent IATA’s 4
pillar strategy aimed at reducing emissions.
08
Malaysian Airline
System Berhad (10601-W) Malaysia Airlines Environmental Report 2012
Technology (Pillar 1)
Our on-going fleet renewal has resulted in measurable
fuel efficiency gains. We will not only have the
youngest fleet in Asia by 2015, but also one of the
most environmentally friendly.
We took delivery of 5 brand new B738 in 2011 and
returned 10 of our older generation B734 to our lessor.
Last year, we received 13 B738s and returned 6 B734s.
Because of the phasing out of the older B734s, the
average fuel efficiency of our B737 fleet has improved.
Our fuel efficient B738 consumes 4.29% less fuel per
hour of flight compared to the B734. The quantum of
improvement is even more apparent if we take into
account the ability of the new B738 to carry a bigger
payload. The B738 consumes 25.38% less fuel for
every tonne of payload (comprising passengers,
baggage and cargo) that is carried over the same
distance. These percentage improvements in fuel
efficiency translate into an equal percentage reduction
in CO2 emissions. These examples are based on 2012
figures.
The same goes for our wide body fleet. Our A380s
have replaced the older B747 and the new A330s are
replacing older generation A330s, resulting in further
fuel efficiency savings.
As users of aircraft and the engines that go with it,
we are restricted in the amount of influence we can
exert on manufacturers to provide more fuel efficient
planes. However, total cost of ownership is one of the
major criteria in purchasing decisions of all airlines,
and therefore aircraft and engine manufacturers are
investing heavily to provide a cost effective solution
to their buyers. As fuel is the biggest cost component
of any airline, fuel efficiency is being addressed by
the manufacturers. Aircrafts and engines will continue
to become more and more fuel efficient as newer
technology, such as lighter aircrafts fabricated using
composite materials such as the A380s, are introduced.
No discussion of new technology can be complete
without mention of alternative fuels. Aviation biofuels
from a variety of sources have been certified and
proven to replace conventional jet fuel without any
modifications needed on the aircraft or jet engines.
The challenge for the industry is to procure biofuels
commercially, in volume and at prices required for it to
become a viable alternative to jet fuel. Malaysia Airlines
believes biofuels will eventually play an important role
in reducing emissions, and is monitoring the situation
carefully. We also take the position that biofuels should
in no way compete with food, either in the land required
to grow them, or in the supply of edible oils.

Malaysia Airlines Environmental Report 2012
Operations (Pillar 2)
Technology is useless without the people to implement,
monitor and make full use of it. Our aircraft go though
regular washes as dirty aircraft create more drag and
use more fuel. Our engines too are washed, as clean
engine internals will result in greater efficiency. We
are always looking at ways to reduce the weight of
aircraft as lighter aircraft burns less fuel. Thus our
new aircraft come with lightweight seats, our cargo
containers (called ULDs or Universal Loading Devices)
are made of lightweight material, and the loading of
potable water is optimised based on the number of
passengers. Even paper manuals carried by our pilots
are being replaced with electronic versions for further
weight savings (see Box Story).
When the aircraft is stationary at the ramp, we try to
use external diesel generators (called Ground Power
Units or GPUs) to provide essential electrical power to
the aircraft. These burn much less fuel compared to the
onboard auxiliary jet engine (called the Auxiliary Power
Unit or APU).
As in prior years, we will continue to set new targets,
monitor and refine our existing fuel efficiency initiatives,
both on ground and in the air, and test and implement
new measures when they become feasible.
09
Malaysian Airline
System Berhad (10601-W)
Malaysia Airlines
Embraces Cockpit
Technology
In February 2012, Malaysia Airlines introduced the
Electronic Flight Bag (EFB) paperless solution on
our brand new fleet of passenger and cargo A330-
300 aircraft in our effort to further enhance the safety
of flight operations and reduce costs and our carbon
footprint.
Traditionally, pilots would bring on board a flight bag
that can weight up to 20 kg containing reference
material such as aircraft and flight crew operating
manuals and navigational charts. A paperless solution
replaces virtually all paper documents with an electronic
version available on a tablet computer. In addition, the
computer can also make calculations, which in the past
had to be completed manually either by the pilot or
ground engineer based on reference charts.
The main driver for implementation of the EFB
is improvements in cockpit efficiency and pilot
situational awareness. Not only will this improve
productivity, it will also reduce the pilot’s burden
and improve safety. For example, a moving map
application will enable the pilot to see not only
his aircraft’s position in an airport, but also other
aircrafts landing, taking off and taxiing.
The other effect of a paperless cockpit is the reduction
in weight which will reduce fuel consumption and
thus emissions. The 20 kg weight reduction per flight,
will, on average, result in an emissions reduction of
720 tonnes of CO2 every year. Not only will it reduce
the environmental cost of printing the manuals, but
also the subsequent savings in paper and energy
associated with hardcopy updates.
010
Malaysian Airline
System Berhad (10601-W) Malaysia Airlines Environmental Report 2012

Air Traffic Infrastructure (Pillar 3)

The Optimal As traffic grows and more planes are in the air at

Flight Plan any point in time, air traffic congestion becomes an

Flight planning is a complicated pre-flight process
involving calculations of hundreds of parameters
in order to accurately predict flight performance
and efficiency. After departure, the flight will
be continuously “followed” by our Operations
Dispatch Centre and updates to weather
conditions and important information related to
diversions and re-routing will be communicated
to the pilots. This process was automated when
the Group acquired a flight planning and flight
following solution in 2005, which was updated to
the newest version in July 2011.
An optimum flight will take into account the choice
of route, height, speed and weather conditions
such as prevailing head or tailwinds as well as
over flight charges. All this will impact the amount
of emissions that will be emitted during the flight.
For example, flying at too low an altitude will burn
more fuel as the denser air will create more drag
on the aircraft. On the other hand, a flight that is
routed to follow the wind (a tail wind) rather than
fight against it can reduce an inter-continental flight
time by up to an hour. In this case, the jet engines
can be throttled back to gain fuel savings, and
thus reduce the emissions of CO2. Having a more
efficient route which burns less fuel will also mean
weight savings as less fuel is carried on the aircraft.
Just like a heavier car, a heavier aircraft will work
its engines more and emit more CO2. For every 50
litres of extra fuel loaded on board our aircraft on
every flight, we will on average emit 1,440 tonnes
of additional CO2 every year.
We try our best to plan and execute the optimal
flight as safety, cost, efficiency and emissions
continue to be the main drivers. But there are
items that are beyond our control. Congestion at
airports, for example, will make our aircraft burn
more fuel in the air if we are required to circle
the airport until there is a landing slot (called a
“holding pattern”), and more on the ground if we
are made to wait at the boarding gate or runway
prior to take-off due to delays with other flights.
As such, the burden of responsibility also falls on
airport authorities and air traffic controllers.
increasing issue, especially at big airport hubs. Flying
between airports is rarely a straight line, as sovereign
rights can sometimes lead to sub-optimal routes. It is
estimated that aircrafts can consume 8% less fuel as a
result of efficient routing.
Malaysia Airlines has invested in a state-of-the-art flight
plan and flight following software (see Box Story), but
we can only do so much. Air traffic management and
airport efficiency is a shared responsibility. If managed
well, it will reap benefits in terms of shorter flight times
which lessen emissions. We work closely with the
department of Civil Aviation to introduce and implement
new air traffic procedures. Internationally, we follow air
traffic legislation of the relevant countries and make
necessary applications in order to adjust our routes to
achieve a more efficient flight path.
Going forward, we believe that investments in
manpower and technology as well as intra-state
collaboration is an essential part of fully realising the
potential of air traffic infrastructure in contributing
towards the air transport industry’s goal of emission
reductions. We will continue to implement better
procedures as they become available in the various
airports that we fly to, as well as the countries that we
fly over.
Economic Measures (Pillar 4)
In the longer term, improvements in all areas mentioned
above might not be enough to meet the ambitious
emissions reduction goals set by IATA within the stated
time frame. Thus some form of carbon offsets will have
to be adopted. These economic measures include
regulatory schemes such as the EU-ETS in the European
Union, and voluntary schemes such as our own voluntary
carbon offset programme.

Malaysia Airlines Environmental Report 2012
5 Other Environmental Information
Energy & Water Consumption
Year 2010 2011 2012
Electricity (MWh) 146,313.04 163,343.39 143,324.83
Water (cu m3) 2,106.62 1,095.19 1,737.65
The Group’s Malaysian hubs consumed 143,324 MWh
of electricity and 1.74 million cubic metres of water in
2012. We have implemented various energy efficiency
measures to reduce our energy consumption and will
continue to adopt feasible measures in the future.
Energy Efficient
Lights Installed at
Advanced Cargo
Centre KLIA
MASkargo’s Advanced Cargo Centre in KLIA
is a 70,000 sq m cargo warehouse with fully
automated high bay storage systems and offices
for administration and operations. It is the heart
of MASkargo’s operations and handles up to 1
million tonnes of cargo annually. Commissioned in
1998, the high bay lights installed were the Metal
Halide variety which consumes a lot of electricity.
In 2012, MASkargo undertook a retrofit exercise
which involved replacing all 1,625 of these high
intensity lights with High Beam T5 energy efficient
types. The exercise was completed by October
2012 and the results show a huge monthly energy
savings of approximately 60%. It is estimated that
this translates to a 13,000 tonne reduction in CO2
emissions annually as a result of electricity savings.
At the same time, these lights have led to higher
and more uniform illumination resulting in better
and safer working conditions.
11
Malaysian Airline
System Berhad (10601-W)
Waste
Wastewater from our Maintenance, Repair, Overhaul
(MRO) facilities in KLIA and Subang are treated at our
wastewater treatment plant situated on site. Scheduled
waste is collected by certified scheduled waste
contractors and disposed of according to environmental
laws and regulations. In 2012, 28,820 m3 of wastewater
was treated, and 378.53 tonnes of scheduled waste was
generated.
Recycling
Our MRO operations at KLIA and Subang continue to
implement their “Total Scrap Management System”
where scrap metal, plastic, paper and batteries are
recycled. 85.82 tonnes of scrap material were recycled
in 2012. These comprised mainly iron from the ground
support equipment welding workshop; aluminum,
stainless steel and various alloys from the aircraft
structure workshop; and paper and plastic.
Our “Go Green Inflight 3R” initiative was launched in
July 2011. A programme initiated and championed
by our Inflight Services department, it involves the
recycling of plastic cups, aluminum cans and foils by
our cabin crew on all flights coming into KLIA with a
flight time of more than 3 hours. The recyclable items
are segregated into separate plastics bags which are
then sent for recycling by our caterers who handle our
inflight food waste. As of 31 December 2012, 13.70
tonnes of plastic tumblers, 2.61 tonnes of aluminum
cans and 1.50 tonnes of aluminum foil have been
collected by our dedicated cabin crew.
12
Malaysian Airline
System Berhad (10601-W) Malaysia Airlines Environmental Report 2012
Noise Management
Today’s aircraft are up to 30 decibels quieter which
represents a 90% reduction in noise footprint
compared to original commercial jets. Aircraft and
engine manufacturers are continuing efforts to further
reduce the noise generated. Malaysia Airlines supports
ICAO’s ‘balanced approach’ to minimize aircraft noise
through cooperation with all stakeholders.
Excessive noise is a concern for our ground personnel,
and when our aircrafts operate out of airports situated
in densely populated areas. We provide adequate noise
protection to our staff, and aircrafts and schedules
comply with noise requirements of all airports we fly to.
Malaysia Airlines’s fleet renewal programme allows
us to comply with existing noise requirements. Our
new A380 is one of the quietest wide body aircraft in
the world. It not only complies with the latest ICAO
Chapter 4 noise standard but exceeds it, which means
we are well prepared for even more stringent noise
standards in the future. Operational procedures in
taking off and landing at airports further reduce our
noise footprint.
Fuel Jettisons
Fuel jettisons, while rare, are required when an aircraft
experiences an in-flight emergency that necessitates
a return to land. This could be a result of a technical
malfunction or medical emergency. Fuel is jettisoned
to ensure that the aircraft lands safely within the
acceptable landing weight and at slower landing
speeds.
The standard procedure for Malaysia Airlines is to
jettison fuel at an altitude of at least 6,000 feet, away
from undesirable weather elements and at airspace
areas designated by Air Traffic Control towers of the
respective airports. Most of the fuel dissipates and
is converted into CO2 and water by the sun and the
atmosphere.
Malaysia Airlines had 3 fuel jettison operations in 2012
which were all technical related. A total of 251 tonnes
of fuel were released from these 3 events. We will
continue to adhere to current protocols and monitor
these occurrences.

Malaysia Airlines Environmental Report 2012
6 Environmental Management
The aviation industry is highly regulated and has
stringent environmental laws and regulations related to
pollution, waste, spills, noise, health and safety. As a
responsible corporate citizen, Malaysia Airlines strives
to comply fully with these laws and regulations.
In December 2011, MAS joined the IATA Environmental
Assessment (“IEnvA”) pilot programme, which aims at
developing an Environmental Management System
specific to the airline industry whilst being compatible
with existing internationally recognised Environmental
Management Systems (EMS) standards such as
ISO14001, BS8555 and EMAS.
13
Malaysian Airline
System Berhad (10601-W)
Working together with IATA and 6 other partner
airlines, the programme aims to share and benchmark
industry best practices to minimise our environmental
impact. As part of this programme, we developed a
Group Environmental Policy in 2012 to provide a clear
message to internal and external stakeholders which
describes our environmental direction, aspirations
and intent to improve environmental performance and
comply with relevant environmental legal and other
obligations.
We received Stage 1 IEnvA certification in 2013. We
believe that good environmental management is a
process of continuous improvement, and our aim for
2013 is to educate and cascade the Environmental
Policy to our staff and build on the framework provided
by the IEnvA programme.
14
Malaysian Airline
System Berhad (10601-W) Malaysia Airlines Environmental Report 2012
7 Voluntary Carbon Offsets
At approximately 2,300 sq kms (570,000 acres), the
South East Pahang Peat Swamp Forest (“SEPPSF”)
complex is the largest block of undisturbed mixed peat
swamp forest in Peninsular Malaysia. 287 tree species
from 52 families were recorded in this area. 233 species
of birds or one third of all Peninsular Malaysia’s avifauna
can be found here. There are 58 species of mammals
recorded in the SEPPSF. Many of Malaysia’s threatened
animal species also regard this forest complex their
home. These include the Asian elephant, Malaysian tiger,
Malayan tapir, Malayan sun bear and various species of
otters, monkeys and bats. Its richness in flora and fauna
makes this forest of great conservation value.
Malaysia Airlines participates in enhancing the carbon
stocks and promoting biodiversity conservation of the
degraded forests which was recently gazzetted as a
Permanent Reserved Forest within SEPPSF. We work
together with the Ministry of Natural Resources and
Environment (NRE), Forestry Department of Pahang and
Forest Research Institute Malaysia (FRIM) in undertaking
this project.
In 2011, with funds from Malaysia Airlines, passenger
offsets, Forestry Pahang and 2 corporate sponsors,
1,000 Mersawa paya (Anisoptera marginata) and ramin
Malawis (Gonystylus bancanus) saplings were planted
with the help of local indigenous Jakun villagers. An area
of 2.7 hectares was planted at the Sungai Bebar,
situated between the Pekan and Kedondong Permanent
Reserved Forest. The aforementioned tree species are
found in peat swamps and are native to this area.
The growth of these saplings was monitored every 3
months. The high mortality rate of this first batch of
saplings confirmed the preliminary observation that
the land was not suited to the selected tree species
because the soil at the site was compacted and had
little shade. We subsequently changed the species to
Merawan Siput Jantan (Hopea odorata) which is also
native to Malaysia and better suited to these conditions.
The second planting of 1,519 saplings in a second area
of 3 hectares as well as the replanting of saplings which
had died was conducted in 1 November 2012. Although
the project area is currently small, we believe in its long
term potential and impact towards conservation.
To date, RM107,715 has been disbursed from the trust
fund set up for this project. In addition, Forestry Pahang
has contributed an additional RM135,000 in the form of
funds and manpower in support of this project.
The calculation of total carbon sequestered by the
planted plants will be made at a later date when these
saplings are about 5 years old and are fully established
in the site. Malaysia Airlines continues to offset the GHG
emissions of a portion of its staff duty travel. This year,
we plan to re-introduce the ability of passengers to
voluntarily offset their emissions at our website.

Malaysia Airlines Environmental Report 2012
8 Domestic, Regional & International Environmental
Affairs
Malaysia Airlines’ takes its environmental responsibility
seriously and strongly supports a global framework that
is championed by ICAO as the best solution to address
carbon emission without jeopardising the industry
and its contribution to the global economy. To ensure
our position is taken into account, Malaysia Airlines
undertakes lobbying exercises with IATA, Association
of Asia Pacific Airlines (AAPA) and the Ministry of
Transport.
EU ETS
On 22 February 2012, 23 nations including Malaysia
voiced their objection to the EU ETS or everyone.
Known as the Joint declaration of Moscow, it, among
others, critised the unilaterial approach taken by the
EU which undermines efforts at a global solution
through ICAO, and that the “inclusion of international
civil aviation in the EU-ETS leads to serious market
distortions and unfair competition”. Malaysia Airlines
fully supports this view.
The European Commission (“EC”) announced on 12
November 2012 that they would defer the requirement
under the EU ETS for airlines to surrender carbon
allowances equal to their emissions for flights into and
out of the EU. Nevertheless, intra-EU flights will continue
to fall under this scheme. Also known as the EU’s “Stop
the Clock” decision on aviation, this move was made to
give space for a global solution during the ICAO General
Assembly to be held in the third Quarter of 2013.
However, the EC has clearly stated that should the ICAO
process not “deliver”, the EU ETS will be enforced in full
for the reporting year 2013 . As a result of this “Stop the
Clock” decision, the Group’s financial exposure to the
EU ETS has therefore shrunk to less than 20 intra-EU
MASkargo freighter flights – an insignificant financial
impact.
We continue to comply under protest with EU ETS
requirements and closely follow this issue. Internally, we
have put in place a framework and internal processes
to address both compliance and commercial aspects of
GHG related schemes and taxes to all countries that the
Group flies to.
15
Malaysian Airline
System Berhad (10601-W)
Regional & International
Regionally, we continue to support industry initiatives by
participating in AAPA's Environmental Working Group
(EWG) which discusses regional environmental issues
relevant to the aviation industry. Internationally, we
participate in Stage 1 of the IEnvA, and keep up to date
on the IATA initiative related to cabin waste.
Domestic
Closer to home, we engage with the Ministry of Natural
Resources on two of their GHG emission initiatives.
The first, MyCarbon initiative stakeholder consultation
workshops, aims to formulate a framework for the
voluntary reporting of GHG emissions by the private
sector. We support voluntary reporting of GHG
emissions and show our commitment by publishing
the Group’s aircraft carbon footprint stretching back to
2005. Second, we participated in workshops organised
to engage certain industries including the transport
sector to report GHG emissions for the purpose of
reporting Malaysia’s emissions to the UNFCCC (“United
Nations Framework Convention on Climate Change”)
under the Kyoto Protocol.
In addition, Malaysia Airlines is working with the
Department of Civil Aviation Malaysia to establish a
national action plan to reduce CO2 emissions from
international aviation following a global agreement
reached by 190 nations during the 37th Session of the
ICAO Assembly in October 2010.
16
Malaysian Airline
System Berhad (10601-W) Malaysia Airlines Environmental Report 2012

9 GRI 3.1 Indicators

Code Indicator Section

EN3 Direct energy consumption by primary energy Aircraft Fuel Efficiency

source.

EN4 Indirect energy consumption by primary source. Energy & Water Consumption

EN5 Energy saved due to conservation and efficiency Fuel Efficiency

improvements.

EN7 Initiatives to reduce indirect energy consumption Energy & Water Consumption
and reductions achieved.

EN8 Total water withdrawal by source. Energy & Water Consumption

EN13 Habitats protected or restored. Voluntary Carbon Offsets

EN16 Total direct and indirect greenhouse gas Our Emissions

emissions by weight.

EN17 Other relevant indirect greenhouse gas emissions Our Emissions

by weight.

EN18 Initiatives to reduce greenhouse gas emissions Fuel Efficiency, Energy & Water Consumption
and reductions achieved.

EN20 NOx, SOx, and other significant air emissions by MUS TO UPDATE
type and weight.

EN21 Total water discharge by quality and destination. Energy & Water Consumption

EN22 Total weight of waste by type and disposal Waste

method.

EN23 Total number and volume of significant spills. Fuel Jettisons

EN26 Initiatives to mitigate environmental impacts of Voluntary Carbon Offsets

products and services, and extent of impact
mitigation.
Malaysian Airline www.malaysiaairlines.com
System Berhad (10601-W)
3rd Floor
Administration Building 1
MAS Complex A
Sultan Abdul Aziz Shah Airport
47200 Subang
Selangor Darul Ehsan
Malaysia