Aviation’s changing role
Aviation is critical to the mobility of modern society, but it is also a carbon intensive industry. As aviation financiers it is our responsibility to contribute to the global transition to a low carbon economy and to promote sustainability through responsible lending practices that encourage innovation and carbon reduction.
What is impact?
Driven by conviction, determination and belief, a group of leading global financiers in aviation came together to create impact – a global platform aimed at providing the tangible and practical answers needed to achieve the Net Zero goal. impact recruits its members solely from the aviation finance industry and is committed to staying clear of any vested industrial interests.
Between 2004 and 2019, CO₂ emissions from aviation increased by 2.5% per year, while global aviation traffic grew by more than 5.2% annually – that faster growth more than cancelled out the benefits of more efficient aircraft and engine technologies. The International Energy Agency (IEA) estimates that aviation needs to reduce its CO₂ emissions to 210 million tons by 2050 or by 2.4% per year to achieve the goal of Net Zero in 2050 set out in the Paris Climate Agreement and reaffirmed by IATA. Immediate action is needed. impact is willing to meet this challenge and tackle the many questions it poses: Which benchmarks should be used to financially support sustainable aircraft, airlines, infrastructure and business models? Which rules should manufacturers, airlines and financiers use to report the sustainability of their commitments in aviation? How can decarbonization progress be reported credibly, comprehensively and transparently? And how can mere greenwashing be avoided?
How we work
impact is built around collaborative working groups; the association serves as a streamlined framework to facilitate and guide the efforts of these working groups on the following topics:
- Transition Finance: What are the core characteristics of sustainable finance? Which standards should apply and how can adherence to them be monitored?
- Metrics: Which metrics and data are needed to measure sustainability in aviation and track the progress of decarbonization as objectively and transparently as possible?
- Reporting: impact will publish a comprehensive annual report on aviation’s decarbonization progress and the consistency of its financing rules.
- Networking: impact seeks a close relationship with all stakeholders in aviation to encourage participation and diversity of thought, to test the feasibility and effectiveness of proposals and to join forces toward the goal of sustainability.
- Know-how management: impact will use modern digital know-how management technologies to centrally compile and share important studies and data, accessible to all members.