Cebu Pacific, the Philippines’ leading carrier, has marked another significant milestone in sustainable aviation by earning an AA ESG rating from MSCI. This makes Cebu Pacific the first local airline to receive this distinction, placing it among the top airlines globally in managing environmental, social, and governance (ESG) risks and opportunities.
MSCI ESG Ratings assess how companies handle their exposure to industry-specific ESG risks, using a scale from AAA (leader) to CCC (laggard). An AA rating indicates that CEB is performing strongly in managing these challenges compared to its peers.
“Our commitment has always been to operate in a responsible and sustainable way. This upgraded rating reflects our progress in addressing environmental, social, and governance challenges,” said Xander Lao, CEB President and Chief Commercial Officer. "By adopting innovative practices, such as operating high-density, fuel-efficient aircraft, we are not only reducing carbon emissions but also achieving the lowest fuel burn per seat, offering our passengers a more sustainable travel experience. All these initiatives are part of our comprehensive effort to advance a sustainable aviation industry."
In 2023, Cebu Pacific received an A rating from MSCI. The upgrade to AA this year highlights the airline’s growing commitment to sustainability. One major factor is its focus on reducing carbon emissions, with the airline ranking in the top quartile among its peers. CEB’s fleet has an average age of just six years, compared to the industry average of nine years, contributing to improved fuel efficiency and lower emissions.
CEB also excels in social performance, with strong labor management practices, robust data privacy measures, and high employee engagement. The airline adheres to international safety standards, including the IATA Operational Safety Audit (IOSA), ensuring top-tier operational safety.
On the governance side, CEB stands out for its strict policies against bribery and corruption. It also has comprehensive governance frameworks, reflecting a deep commitment to ethical business practices and responsible corporate behavior.
As one of only two companies in the Philippines to achieve an AA rating, CEB is determined to build on this success. By further enhancing its sustainability efforts and governance frameworks, the airline aims to maintain its leadership in ESG performance, fostering long-term success and resilience in its operations.
For more information on Cebu Pacific, visit cebupacificair.com