FRONTIER'S 2022 ENVIRONMENTAL, SOCIAL, AND GOVERNANCE REPORT
Table of Contents
INTRODUCTION
4...........A Message from Barry Biffle
6...........Our Story
7...........Our ESG Approach
GOVERNANCE AND RISK MANAGEMENT
10..........Enterprise Risk Management and ESG Oversight
11...........Board ESG Oversight
12..........Board Diversity / Business Continuity
13..........Business Ethics and Compliance / Whistleblower Policy
14..........Political Contributions and Activities / Supply Chain Management
CUSTOMER & TEAM-MEMBERWELL-BEING
16..........Safety Management Systems
17...........Safety Culture and Training
20..........Data Security and Customer Privacy
ENVIRONMENTAL STEWARDSHIP
22..........Fleet and Fuel Efficiency
26..........CleanJoule SAF
27..........2022 Scope 1 and Scope 2 Greenhouse Gas Emissions Metrics
OUR PEOPLE AND CULTURE
30..........Employee Characteristics
32...........Diversity, Equity, and Inclusion
COMMUNITY ENGAGEMENT
36..........Philanthropy
APPENDIX
39..........United Nations Sustainable Development Goals
41.........SASB Index
42...........Forward-looking Statements
INTRODUCTION
A Message from Barry Biffle, Chief Executive Officer
We strive to be the most environmentally sustainable airline in North America which has led us to our current position as "America's Greenest Airline."1
INTRODUCTION
I'm pleased to present Frontier's inaugural 2022 Environmental, Social and Governance Report which demonstrates our longstanding commitment to be responsible stewards of our ecosystems and social capital.
Frontier is America's leading ultra-low-cost- carrier. When we converted to the ULCC model in 2013, we established our "Low Fares Done Right" business strategy with a fleet of 53 aircraft. In 2022, we carried 25 million passengers along more than 300 non-stop routes across the U.S., Mexico, Caribbean and Latin America with a modern fleet of 120 Airbus A320 family aircraft. We'll continue to grow with a $15 billion investment in 230 of the most fuel-efficient aircraft in North America to be delivered through the end of the decade.
We strive to be the most environmentally sustainable airline in North America, which has led us to our current position as "America's
Greenest Airline."1 Green isn't just the color of our logo; it's our travel standard. With the youngest, most fuel-efficient fleet in North America, we achieved an industry leading
102 available seat miles per gallon in 2022, which is 43 percent more efficient compared to the average of the major U.S. airlines2. We achieved this by employing the latest engine technology in our young Airbus A320neo fleet and we began installing lightweight Recaro seats, which are 30 percent lighter than previous designs. Furthermore, we encourage our customers to pack on the lighter side to minimize weight on the aircraft.
When compared to the U.S. industry average1, as disclosed on page 22 of this report, we estimate that our investment in new engine technology and weight-reducing measures saved 135 million gallons of fuel in 2022. That's the equivalent of approximately 475 billion straws disappearing, 20 billion plastic bottles removed from production, 260,000 cars
4
INTRODUCTION
removed from U.S. highways for a full year, and 15 million seedlings being planted, and we'll only get better. Approximately 70 percent of future aircraft deliveries are for the A321neo aircraft which we believe will achieve greater than 120 miles per available seat mile.
Our sustainability efforts reach farther. We've transitioned from plastic to biodegradable cups, discontinued onboard magazines and we've gone paperless in the cockpit and across all areas of the Frontier organization where possible. We're all about making small changes that can have big impacts.
Moreover, the most prominent feature of the Frontier brand is the animals that are prominently displayed on our aircraft tails. Not only do they contribute to our family friendly culture, but they also spread awareness for North America's most endangered or threatened species and other fascinating wildlife that depend on clean air, land, and oceans to survive. We're committed to leveraging our broad reach to tell their stories and bring awareness and education to the public.
At Frontier, we believe "The Sky is For Everyone." For some, this may be evident, but for us, it's far more profound. We're democratizing air travel so that everyone has the opportunity to experience air travel regardless of socioeconomic status. We make this possible by offering low fares and unbundling our products and services so that our customers can purchase only what they need. This allows us to appeal to a broad consumer base across income tiers and demographics.
Every one of the 20,000 members of Team Frontier - which includes Frontier employees and vendors - are essential to delivering Low Fares Done Right. We foster a culture of continuous improvement, engagement, and inclusion in order to empower team members to best serve our customers with safe and reliable service and innovation, investing extensively in training and development to support and advance our team members to
their fullest potential. To further our commitment to diversification, we also partner with organizations such as the Latino Pilots Association, Women in Aviation International, Organization of Black Aerospace Professionals, and the Rotary to Airline Group, to name a few. I firmly believe we're stronger as a company when we bring people together from different backgrounds, ethnicities, experiences, and education.
We support many charitable organizations through volunteerism, in-kind donations, and fundraising, pledging support to organizations who care for those experiencing homelessness or terminal illness, women recovering from domestic violence, food banks, U.S. military causes, animal shelters, and more.
I am profoundly grateful to every member of Team Frontier for the contributions they have made to our success and ESG accomplishments, and their commitment to continue to espouse the values highlighted throughout this report. To our valued shareholders, I appreciate the trust you've placed in us as we embark on years of sustainable and responsible growth.
Barry Biffle
- Measured by ASMs per fuel gallon consumed over the twelve months ended December 31, 2022; other airline average calculated as weighted average of the nine major U.S. Airlines. This and the other data in this introduction, and the rest of this report, was calculated internally and not audited, assurance or otherwise certified by a third-party provider.
- For the twelve months ended December 31, 2022.
5
INTRODUCTION
Our Story
Frontier Airlines (Frontier) (NASDAQ: ULCC) believes that the sky is for everyone. We strive to make this happen by delivering LOW FARES DONE RIGHT®, a superior level of ultra-low-cost service to more than 100 destinations in the United States (U.S.), Latin America and the Caribbean. Our unique product offering is underpinned by our low-cost structure and focus on delivering reliable, dependable and hassle-free service.
And green isn't just the color of our logo; it is our commitment to being America's Greenest Airline through relentless focus on efficiency that allows us to move more people per gallon of fuel than any other U.S. airline. We operate more than 120 Airbus A320 family aircraft and have among the largest A320neo family fleet in the U.S.
ABOUT THIS REPORT
This 2022 Environmental, Social, and Governance (ESG) Report summarizes Frontier's ESG strategy, initiatives and performance on ESG topics that we believe are most relevant to our business and important to our stakeholders. Unless otherwise noted, the report reflects our progress during fiscal year 2022 (FY2022) for the period from January 1 through December 31, 2022.
To identify the ESG areas most relevant to our business, and to provide ease of use and comparability with peers, we align our reporting with the SASB Standards for the Airlines industry. We also report on corporate activities that advance several United Nations Sustainable Development Goals (SDGs) which we believe are most relevant to our business. Both are included in the Appendix at the end of this report.
6
INTRODUCTION
Our ESG Approach
At Frontier, ESG is embedded in how we operate every day - from our ongoing focus on airline safety and security to our steadfast commitment to ethics and compliance to our sustainable business practices. We are pleased to share our 2022 ESG Report that outlines our current environmental, social and governance initiatives, practices and objectives across four ESG pillars fundamental to our business. We believe that our efforts in these core areas give us a competitive advantage and create long-term value for our customers, team members, shareholders, and communities.
OUR ESG PILLARS
Customer and Team
Member Well-being
We place people-our customers and team members-first, with their well-being at the forefront of everything we do and strive to be an industry leader in safe and healthy travel practices.
Environmental
Stewardship
Through sustainable business practices and by reducing our environmental footprint, we aim to lead the airline industry in environmental stewardship and serve the needs of eco- conscious air travelers.
Our People and Culture
Our employees are the key to our success, and we are dedicated to employee engagement, training and development to support our team members' advancement to reach their fullest potential.
Community Engagement
We believe that air travel should be accessible to all and we take pride in supporting our communities through various philanthropic and volunteer initiatives.
7
Governance
Our ESG pillars are built on responsible business practices, including sound corporate governance and compliance, employing high ethical standards to build sustainable long-term shareholder value.
INTRODUCTION
STAKEHOLDER ENGAGEMENT
We strive to focus our business strategy, initiatives, and reporting
Stakeholders | Ways We Engage | Key ESG Topics Addressed |
Customers | • Customer service channels | • Customer experience and support |
• Social media monitoring and engagement | ||
Employees | • Employee engagement survey | • Benefits and compensation |
• Professional development and training | • Employee health and safety | |
• Collective bargaining agreements | • Diversity, Equity, and Inclusion (DEI) | |
• Employee engagement, training, and | ||
development |
on the ESG topics that are most important to our stakeholders. In the following table, we summarize the ways
Investors | • Annual meeting of shareholders |
• Quarterly earnings calls | |
• Regular calls, meetings, and conference | |
presentations |
- Financial performance
- Corporate governance and business ethics
- Environmental impact
- Cybersecurity and customer privacy
- Transparency and reporting
we engage with our stakeholders.
Suppliers | • Supplier agreements | • Supply chain management |
• Supplier Code of Conduct | • Business ethics and human rights | |
• Human Rights Policy | ||
• Procurement and contracting process | ||
• Regular supplier reviews | ||
• Quality management process | ||
Communities | • Charitable fundraising events | • Corporate philanthropy |
• Donation requests | • Employee volunteerism | |
• Employee volunteer events | ||
Regulators and | • Regulatory compliance reporting and audits | • Passenger safety and security |
Government | • Information sharing through aviation industry | • Cybersecurity and customer privacy |
Agencies | memberships and partnerships | • Environmental compliance |
8
GOVERNANCE
•
Enterprise Risk Management and ESG Oversight
GOVERNANCE AND RISK
Risk assessment and oversight are integral to Frontier's governance and management processes. Our Board provides independent oversight to establish and review progress on our business strategy and enterprise risk management important to the company's sustainable financial success and long-term value creation. The Board encourages management to promote a culture where risk management is integrated into our corporate strategy and day-to-day business operations. Our full Board administers the oversight of ESG risk exposure and strategy overall and various standing board committees address risks inherent in their respective areas of oversight.
The Nominating and Corporate Governance Committee has primary responsibility for the review of our ESG strategy and practices and periodically reports on these matters to the full
Board. Any pertinent feedback that management receives from shareholders as part of the Company's shareholder engagement practices is also reported to the Board for consideration.
The Audit Committee and the Safety and Security Committee oversees our exposure to financial and to operational risks, respectively and the actions management has taken to limit or eliminate these exposures. Senior Management, the Audit Committee and the Safety and Security Committee review these risks and the associated mitigation strategies with the full Board at quarterly board meetings. The Audit Committee also oversees our cyber and information security enviornment. Additionally, the Nominating and Corporate Governance Committee monitors the effectiveness of our corporate governance guidelines, and the Compensation Committee oversees risks related
to our executive compensation, equity incentive plans, and other compensatory arrangements.
In addition, we recently created the role of Lead Independent Director to further independent oversight of our key risk and strategy matters, including ESG risk management. The Lead Independent Director's responsibilities include coordinating the activities of, and discussions with, the independent directors, including those who serve on our Audit Committee, the overseers of financial and operational risk. The Lead Independent Director's responsibilities also include briefing our CEO on matters coming out of those independent director sessions, thereby serving as the bridge for ESG recommendations from independent directors to the top of the house.
MANAGEMENT
Our Board sets high standards for Frontier's employees, officers and directors. At the cornerstone of this philosophy is the importance of sound corporate governance across our business operations.
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Frontier Group Holdings Inc. published this content on 26 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2023 00:56:08 UTC.