Cebu Pacific Partners with South Pole to Develop Climate Strategy Roadmap

Partnership firms up CEB’s commitment to attain net-zero carbon emissions goal by 2050

Cebu Pacific, the Philippines’ leading airline, is partnering with consultancy and advisory services firm South Pole to establish a climate strategy that will strengthen its commitment to environmental stewardship. Founded in 2006 in Zurich, Switzerland, South Pole develops projects and solutions needed to “enable everyone, everywhere, to make an impact on climate change.”

In 2022, the International Civil Aviation Organization adopted a long-term global aspirational goal for the aviation industry of net-zero carbon emissions by 2050 in support of the United Nations Framework Convention on Climate Change. A year earlier, the International Air Transport Association declared its “Fly Net Zero” commitment to attain the same outcome.

“Cebu Pacific supports global aviation’s goal of achieving net-zero carbon emissions by 2050. With South Pole’s guidance and expertise, we will develop a robust plan of action to prioritize interventions for emission hotspots in our operations. This roadmap will consider and fuse together the tangible initiatives that we have already put in place, as well as plans that will contribute towards our aspirations of meeting aviation’s net-zero commitment,” said Mike Szucs, Cebu Pacific Chief Executive Officer.

Alex Reyes, Cebu Pacific Chief Strategy Officer, with Chris Wei, South Pole Senior Business Development Associate for Asia. IMAGE Cebu Pacific

The engagement with South Pole involves CEB going through the rigorous process of understanding the greenhouse gas emissions generated from its operations to set its near- and long-term emission reduction pathways. This roadmap will build on CEB’s current decarbonization strategy, which includes a fleet modernization program, fuel-efficiency measures, successful integration of sustainable aviation fuel (SAF) into its operations, transition to electric vehicles, and tapping renewable energy, among others.

“CEB has been monitoring and reporting its Scope 1 and 2 GHG emissions since 2018. But as with other companies, Scope 3 emissions are a blind spot for Cebu Pacific, and we recognize the complexities in accounting for these emissions. To set a credible emissions reduction pathway, it is essential to have a comprehensive validation of our material emissions. Hence, we are tapping into South Pole’s climate expertise in this area,” said Alex Reyes, Chief Strategy Officer, who also leads sustainability in Cebu Pacific.

Scope 1 emissions are defined as carbon emissions from sources that an organization owns or controls directly, whereas Scope 2 emissions are those that a company causes indirectly and come from where the energy it purchases and uses is produced. Scope 3, however, includes emissions that are not produced by the company itself, nor as a result of activities from assets it owns or controls. Instead, Scope 3 emissions are indirectly attributed to a company resulting from activities or production up and down its value chain.

Through the partnership, South Pole will support CEB in identifying the relevant Scope 3 emissions emanating from its entire value chain and in developing the appropriate climate strategy roadmap. This ensures that CEB’s emissions reduction pathway is aligned with climate science and with the global temperature targets under the Paris Agreement.

The aviation industry, which, according to IATA, is responsible for 2 to 3% of global emissions, has a crucial role to play in this transition, and CEB is committed to doing its part.

“To drive a sustainable long-term recovery in the aviation industry, we must continue to facilitate global climate action to achieve net zero by 2050, and CEB is in a great position to lead this change. By placing climate at the center of its strategy, we are confident that CEB will make great strides in its climate journey, and we are proud to support CEB in achieving its sustainability goals,” said Shruti Singh, South Pole’s Director of Climate Strategies for Asia Pacific.