Latam Airlines Group

LATAM 2023 Annual Report

Sustainability

Sustainability Presentation

With the commitment to be an increasingly sustainable company, LATAM group has developed a strategy based on three pillars: Climate Change, Circular Economy and Shared Value, which allows it to be an actor that promotes social, environmental and economic development in the places where it operates.

All decisions and actions taken by the group are aligned with the UN Sustainable Development Goals (SDGs), thus contributing to the protection of the planet, its ecosystems, biodiversity and the well-being of communities, with concern for both economic and financial soundness in the long term.

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2023: Elimination of single-use plastics

2027: Be a zero-waste-to-landfill group

2030: Reduce or offset the equivalent of 50% of domestic emissions

2050: Become a carbon neutral group

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As part of a sectoral agreement, the Group subscribed to become carbon neutral by 2050 thanks to the agreement approved at IATA's 77th Annual General Meeting, reducing or offsetting the equivalent to 50% of its domestic emissions by 2030. To achieve this, the Group developed a climate change strategy:

LATAM Fuel Efficiency Program

LATAM has developed various actions aimed at the responsible use of fuel. This program, which has been in place for more than 10 years, has implemented initiatives focused on reducing fuel consumption and operational efficiency to optimize savings.

To this end, the group has improved its land and air operation processes, and between 2012 and 2021, LATAM increased its aviation fuel efficiency by 5.3% through the program. Added to this, in 2021 gross fuel savings totaled 8.3 million gallons.. In addition, the Group is constantly optimizing and renewing its fleet, incorporating new Airbus A320neo family aircraft, which use 15% less fuel, reduce nitrogen oxide emissions by 50% and reduce the acoustic footprint.

Sustainable Fuels Developments

The use of sustainable aviation fuels (SAF) and new and innovative propulsion technologies are the main pillars for achieving a carbon-neutral airline industry by 2050. Therefore, the Group's commitment is to reach 5% sustainable fuel use (SAF) by 2030, favoring local producers in South America.

Conservation of Iconic Ecosystems

The LATAM group's alliance with Cataruben CO2BIO, a project located in the Colombian Orinoco region that seeks to protect the floodable savannah, is noteworthy, and through which the Group has committed to protecting the 575,000 hectares covered by the project as of 2022. The alliance aims to capture 11.3 million tons of carbon dioxide by 2030 in this key area for global biodiversity.

In addition, LATAM has an offset program that will enable it to achieve carbon neutrality by 2050 through two major initiatives:

  • The 1+1 offset program involves corporate customers, both cargo and passengers, who can choose from a portfolio of high environmental value projects to offset the emissions generated by their air travel. To double the impact, LATAM will offset the same amount of emissions as its customers, using the 1+1 mechanism.

  • In addition, every Friday we offset the emissions generated on flights on emblematic routes at the regional level, thus protecting South America's strategic ecosystems and their biodiversity.

LATAM continues to work to migrate from a linear economy to a circular model, with a commitment to eliminate single-use plastics by 2023 and become a zero-waste-to-landfill group by 2027.

Recycle your trip
LATAM mobilizes passengers and caterers to collaboratively recycle waste generated on board by travelers on domestic flights. All recyclable items used in the in-flight service are sorted to give them a new destination through recycling.
Uniform recycling
The LATAM group gives a second life to unused uniforms through the Segundo Vuelo program. With this, the group not only minimizes the impact on the environment with the conversion of textile waste, but also gives the possibility of being a relevant player in the region that promotes a more sustainable community through partnerships, job creation and promotion of responsible consumption. For this, LATAM works together with craftswomen from all over the region, who give a new use to the materials.
Reuse of aeronautical material
This measure seeks to make better use of the materials in the company's fleet. For example, a campaign was carried out in which employees were able to acquire certain cabin seats for their own use, as decorations for their homes, or in the case of LATAM, they were even used to give a unique touch to the waiting rooms of certain offices.

LATAM's objective is to generate a more solid shared value structure, focused on profound and long-term changes, that is, to be a company that promotes economic, social and environmental development in the communities where it operates. This is why the Avión Solidario program was created. This is a program that allows the company to make itself available to the region and, in a collaborative manner, provide free support with the transfer of cargo and passengers in the event of health, environmental and natural catastrophes.

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Solidarity Plane - Health
The group seeks to support the health needs of the local population. As of December 2022, the LATAM group has transported more than 300 million COVID-19 vaccines free of charge in Chile, Brazil, Ecuador and Peru.
Solidarity Plane - Environmental
During 2021, the group transported 195 tons of recyclable materials from island territories, as a way of collaborating with the challenge of reverse logistics and proper waste management. In addition, LATAM has established alliances with organizations linked to the care of endangered species and together they achieved 192 shipments.
Solidarity Plane – Natural Catastrophes
LATAM seeks to facilitate the transfer of affected people, professionals traveling to support disaster relief and humanitarian aid in the event of floods, fires, earthquakes, tsunamis, floods or volcanic eruptions. During 2021, the solidarity aircraft was activated to provide free support to more than 165 municipalities affected by the floods in the south of Bahia in Brazil, while in Peru it supported the care of those affected by the earthquake.

Following the S&P Corporate Sustainability Assessment, LATAM was recognized as the most sustainable airline in the region and the fifth most sustainable worldwide, maintaining its position as one of the best sustainability performers in the industry.

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Sustainability - LATAM Airlines Group

The aim of being one of the top three airlines in the world is leveraged from a sustainable approach that balances our actions in the economic, social and environmental spheres.

We do business on the pursuit of today’s successful results, while caring about the financial soundness in the long run, always considering our socio-environmental performance. For this reason, corporate governance in LATAM Airlines Group incorporates the vision of sustainability in every decision taken in command of the company.


Corporate Citizenship

Our presence as leaders in the region gives us a great responsibility towards the communities of the countries where we are present, the clients we carry, the people we employ, and the suppliers with whom we partner. Therefore, we seek to maximize our contribution to all these groups, making the destinations where we operate a better place every day.

As part of our commitment to social sustainability, we have defined a Corporate Citizenship Strategy that consists of two main focuses: (1) to develop sustainable tourism through preservation and social development programs in order to maintain and restore national and cultural heritage, and (2) to use our structure, connectivity and transport capacity (passenger and cargo) for healthcare needs and catastrophe response in South America. View More


Environmental Performance

LATAM Airlines Group has structured its environmental management system in line with the International Air Transport Association (IATA) environmental assessment (IEnvA) program and incorporates the operators LATAM Airlines Peru S.A, LATAM Airlines Colombia S.A, Línea Aérea Carguera de Colombia S.A, Líneas Aéreas Nacionales del Ecuador S.A, LATAM Airlines Group S.A, LATAM Airlines Chile, LAN Cargo S.A, ABSA Aerolinhas Brasileiras S/A and TAM Linhas Aereas S.A.

LATAM’s environmental management system includes 'CORE+' activities: flight operations, corporate activities, maintenance, ground operations and cargo.

Download our Safety, Quality and Environment Policy here.


LATAM AIRLINES DJSI SUSTAINABILITY INDEX

CSA Questionnaire TCFD Disclosure Section

ESG Document