Icelandair recognizes the impact that air travel has on the environment and the challenges of climate change. We are dedicated to minimizing our environmental impact by addressing Icelandair’s responsibilities to reduce emissions, conserve natural resources, as well as optimize the use of sustainable energy and recyclable materials as stated in Icelandair’s Environmental Policy on Icelandair Group’s website.

By operating our Environmental Management System (EMS), which is consistent with the requirements of IEnvA, we consider all environmental issues that are relevant in our operations. In a systematic approach we address Icelandair’s environmental impacts and maintain environmental management programs which enables us to meet obligations.

Icelandair is certified to the highest level of the IEnvA environmental assessment program from the International Air Transport Association (IATA), which requires demonstration of ongoing environmental performance improvements. The IEnvA program is based on recognized environmental management principles, ISO 14001, and assessments are conducted by accredited independent organizations. In April 2023, Icelandair was audited by the international assessor ACS and has now received certification for passing the assessment successfully. Globally, 17 airlines have achieved IEnvA stage 2 environmental certification from IATA. However, Icelandair is the only airline to have received certifications for all scopes of the assessment which include all flight operations, including the cargo and the leasing business, as well as all general operations, catering, ground handling and maintenance.

As part of our efforts of addressing our environmental impact, both globally and locally, Icelandair participates in the work of various environmental working groups, within organizations such as IATA and Airlines for Europe (A4E).

Pollution is one of the environmental issues that we address in our EMS and noise pollution is a part of it. Aircraft noise is a significant part of the environmental aspects associated with aviation, impacting communities and habitats around airports due to air traffic that can generate noise pollution, especially by planes taking off and landing. Requirements have been set by the International Civil Aviation Organization (ICAO) and the European Union Safety Association (EASA) to minimize the effect on the surroundings. Icelandair complies with these limitation and guidelines and is, in addition, gradually replacing its older fleet with new generation aircraft that create less noise than older models. Icelandair received no formal complaint regarding noise from air traffic in 2023.

In terms of our de-icing practices, and the usage of the de-icing fluid, we have standard operating procedures in place. Due to environmental perspective, we have a close communication with the airport operators with focus on refining the volume used. The de-icing procedures ensure compliance with the relevant regulations, and global aircraft deicing standards, to ensure optimal aerodynamic performance and safety. In our technical operation, and maintenance, there are usage of Substance of Concern meaning hazardous chemicals or other pollutants that are regulated. According to regulation we have Material Safety Data Sheets (MSDS) describing the properties and potential hazards of the material, how to use it safely, and what to do in an emergency. In 2023 we continued to work on reducing the substances in use.

Our key takeaways from our Double Materiality Assessment (DMA), which forms part of the CSRD, in terms of pollution are:

The following sub-topics were identified as material:

E2.1 Pollution of air

E2.2 Pollution of water

E2.3 Pollution of soil

E2.5 Substance of concern and very high concern

E2.6 Microplastics

To support the promotion of circularity Icelandair has set goals to minimize waste and increase recycling in all operations. In our waste management system, a solution provided by Klappir Green Solutions, all data is managed digitally down to operational units.

Laws and regulations have restricted waste separation on board, and we have for years called for changes in regulations about recycling waste from international flights, which has until lately all been incinerated due to these regulations. In good cooperation with the Environment Agency of Iceland and the Icelandic Food and Veterinary Agency, new guidelines were implemented at the beginning of 2023 that enable airlines to sort clean recyclables, i.e., plastic, paper and aluminum cans coming into Iceland.

Icelandair started to sort recyclables at the end of February and set a target to recycle at least 30% of the waste. The goal was achieved and about 34% of the waste from the airplanes was sorted during the year. Therefore, the goal has been set to recycle at least 40% of waste in 2024.

This change is reflected in the overall sorted waste percentage going up to 41% from 33% in the previous year. The amount of waste is relative to the number of flights flown and passengers transported. Therefore, the total amount of waste increased between years.

Icelandair also participated in a joint project with IATA where the focus was to pressure authorities in Europe and North America to allow airlines to recycle waste in outstations. This included doing a recycling trial on one of the North American routes in November where the sorted and general waste were weighed and registered.

Icelandair has initiated various successful projects to improve resource use and waste recycling within the Company. One step in that direction were changes to the catering service on board to offering passengers the possibility to order more diverse meals in advance and thereby reduce food waste.

Our key takeaways from our Double Materiality Assessment (DMA), which forms part of the CSRD, in terms of circularity are:

The following sub-topics were identified as material:

E5.1 Resource inflows, Including resource use

E5.2 Resource outlfows related to products and services

E5.3 Waste