Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020 MALAYSIA AIRPORTS HOLDINGS BERHAD AIRPORT CARBON ACCREDITATION CARBON MANAGEMENT PLAN 2015-2020 Date : 20 th April 2015 Owner : Sustainability Department, Malaysia Airports Holdings Berhad Approval Route : General Manager, Engineering Approval status : Approved
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Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
MALAYSIA AIRPORTS HOLDINGS BERHAD
AIRPORT CARBON ACCREDITATION
CARBON MANAGEMENT PLAN
2015-2020
Date : 20th April 2015
Owner : Sustainability Department, Malaysia Airports Holdings Berhad
Approval Route : General Manager, Engineering
Approval status : Approved
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Malaysia Airports Holdings Berhad
CORPORATE PROFILE
In 1991, the Malaysian Parliament passed a bill to separate the Department of Civil Aviation
(DCA) into two entities with different spheres of responsibilities. DCA remains as the
regulatory body for the airports and aviation industry in Malaysia whilst the newly created
entity, Malaysia Airports, was established in 1992 to focus on the operations, management
and maintenance of airports.
Malaysia Airports Holdings Berhad was thereafter incorporated as a public listed company
on the Main Board of Bursa Malaysia Securities Berhad in 1999, which became the first
airport operator in Asia and the sixth worldwide to be listed on a stock exchange. Malaysia
Airports is the only airport company with such a diverse airport portfolio, putting it in a
league of its own. Airports under our stable of operations range from 5 international
gateways, 16 domestic airports, to 18 short take-off and landing ports (STOLports) that
serves the rural and remote areas in Malaysia.
Our Business
A Holistic Global Airport Company
Operating and managing the country's aviation gateways is a privilege that comes with the
responsibility to ensure that the capacity of the nation's airports is adequate to support and
enhance state and national competitiveness. Our core activities include the management,
operation, maintenance and development of airports, both in aeronautical and in non-
aeronautical component.
Aeronautically, Malaysia Airports' revenue base comes from the collection of passenger
service charge (PSC), aircraft landing and parking fees, and other ancillary charges to airlines.
Non-aeronautical revenue base is mainly derived from non-airport operations business and
commercial activities, which includes duty free and retail operations, hotel operations, free
commercial zone operations, commercial space leases and management of parking facilities
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
in our airports nationwide. No other airport company in the world matches Malaysia
Airports' business model and diverse portfolio.
Gateways to the nation
As the nation's flagship international gateway, KL International Airport (KLIA) is well-
positioned as a key aviation hub for Southeast Asia. It boasts the flexibility to combine short-
haul and long-haul connections with facilities that integrate both full-service and low-cost
airlines' operations and geographic centrality with adequate catchment areas within four to
five hours of radius flight time from KLIA.
We look beyond the present and into the future by setting the pace with Next Generation
Hub, a concept to transform KLIA as the ultimate hub where the world of full-service airlines
and low-cost airlines are unified. While KLIA Next Generation Hub is created to promote
airlines interconnectivity at KLIA, the world's first purpose-built terminal dedicated for low
cost carriers, klia2, is set to be the standard bearer for other future terminal of its kind in the
world.
The unique feature of Malaysia Airports is its vastly diversified airport portfolio, in which
each airport is characterised by different operating requirements. While these airports serve
the same purpose of providing connectivity, their operating requirements vary from the
different commercial offering and growth prospects resulting in mixed financial
performance. Over the year, we have been steadfast in growing our commercial activities
that are essential in delivering strong returns to shareholders whilst enabling aviation
charges to remain competitive and in turn driving further airport growth.
This has allowed us to cross-subsidise the smaller community airports and STOLports by the
larger and more profitable airports around the country. Thus, by providing air travel to these
rural and remote areas that has no proper road access we fulfil a very important corporate
social responsibility.
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Airport Management Expertise
Malaysia Airports expands its expertise in airport management and investment to other
airports overseas, further diversifying its airport portfolio. Today, our overseas ventures
spans as far as India and Turkey. These airports are the Rajiv Gandhi International Airport,
Hyderabad, and the Indira Gandhi International Airport, New Delhi, in India, and the Istanbul
Sabiha Gokcen International Airport in Turkey.
Malaysia Airports have also established global training centres that focus on providing
airport operations and management, airport fire and rescue service, and aviation security
courses to participants from across the Asia Pacific region as well as to all Malaysia Airports'
employees. Our training facilities are also certified and recognised by the International Civil
Aviation Organisation (ICAO), Airport Council International (ACI) and Department of Civil
Aviation (DCA) Malaysia. The Malaysia Airports Training Centre (MATC) located in Penang is
recognised as the ICAO Aviation Security Training Centre (ASTC) and MATC KLIA is recognised
as the ACI Global Training Hub (GTH) for Asia Pacific region. Meanwhile, the Malaysia
Airports' School of Airport Engineering in KLIA focuses on providing training to our
employees.
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Kuala Lumpur International Airport (KLIA)
KL International Airport (KLIA) is one of Asia's major aviation hubs and is a destination in
itself. It is located at the top of the southern corridor of Peninsular Malaysia, bordering the
states of Selangor and Negeri Sembilan. Situated in the Sepang district, it is approximately
50km from the capital city, Kuala Lumpur.
KLIA is a unique airport that offers something for everyone, whether it is for business,
entertainment or relaxation. The airport is part of the Multimedia Super Corridor (MSC)
where new technology is actively pursued.
Surrounded by four main cities - Kuala Lumpur, Shah Alam, Seremban and Malacca - the
airport is a catchment area that offers exciting opportunities for businesses. As modern as it
sounds, KLIA still strives to create a homely airport with a serene environment.
The airport was designed using the 'Airport in the Forest, Forest in the Airport' concept, in
which it is surrounded by green space. With the co-operation of the Forest Research
Institute of Malaysia, an entire section of the rain forest was transplanted in the Satellite
Building.
Since its inauguration in the year 1998, KLIA has won numerous awards from international
organisations such as Skytrax and International Air Transport Association. With its
continuous effort to provide excellent services to passengers, the airport has emerged as
one of the top five airports in the world.
KLIA's commitment to promote environmental responsibility for all local and foreign
travelers was recognised by Green Globe, making it the first and only airport in the world to
receive the Green Globe 21 certificate in year 2004 and onwards. In 2012, KLIA was awarded
the Platinum status in EarthCheck Benchmarked Airport global certification.
KLIA was thrice voted as the World's Best Airport (15-25 million passengers per annum) in
the 2005 AETRA awards, 2006 ACI-ASQ awards and 2007 ACI-ASQ awards.
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Malaysia Airports’ Corporate Structure
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Executive Summary
One of Malaysia Airports’ core values is that we take great concern care for the
environmental sustainability, with the elements of energy and carbon reduction. Being part
of the signatory in the Aviation Industry Commitment to Action on Climate Change (2008),
which is a multi stakeholder industry declaration to create a pathway to carbon neutral
growth and a carbon free future, has been the driving force behind the continual
improvement in environmental performance. Malaysia Airports also holds memberships in
the Airports Council International (ACI) and the ACI Asia Pacific Regional Environmental
Committee (AP-REC) where environmental strategies, activities and initiatives are discussed
among regional members.
This Carbon Management Plan was organized with the direction to proactively improve in
meeting our environmental commitments. It is also to established the implementation plan
that showcasing our carbon initiatives and it’s reduction.
Targets
In the development of Malaysia Airports’ Carbon Management Plan, we have built the
targeted milestone and being treated as our short and long term carbon target, defined as
the following :
1. To make collaboration with stakeholders (tenants, airlines business partners and
others) to reduce indirect emissions (Scope 3).
2. To reduce total direct emissions (Scope 1 & 2) of 10% by year 2020, and to
manage/avoid the generation of additional CO₂ emissions as a result of our business
operations.
3. To achieve Carbon Neutrality
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Principles
The objectives and strategic implementation underlying the Carbon Management Plan is
based on the following guiding principles :
Reflects the national context, priorities, policies and compliances.
Develop and demonstrate a strengthened and proactive energy efficiency/saving
activities and initiatives.
Draw upon the lessons learnt from functioning of operational arrangements and
mechanisms.
To keep on being dynamic and evolving in response to the climate change issues.
Scopes and Organisational Boundary
In this Carbon Management Plan, KLIA have identified emissions which we have direct
control over emissions of Scope 1 and 2, and where we can guide or influence emissions
from tenants, airlines business partners and related parties which falls under the category of
Scope 3 activities.
The emissions identification is shown in following table :
CONTROL GUIDE INFLUENCE
Scope 1 : Direct Emissions
Transport Company owned vehicles
(airside and landside)
Stationary Company owned engine
generator set
Other CO₂ Fire Extinguisher
Building based refrigerants
Gas Insulated Switchgear
(GIS) SF-6
Scope 2 : Energy Indirect Emissions
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Indirect emissions Emissions from purchased electricity
Scope 3 : Other Indirect Emissions
Aircraft
Transport Business related flights
Employee use of public
transportation (taxi, bus,
ERL)
Aircraft
Ground
Movement
Auxiliary
Power Unit
Taxiing
LTO cycle and
cruise
Process Emissions Waste disposal to landfill
Use of paper
Printing
Purchase of IT equipment
Disposal of
airport waste
Management of
waste where
disposal are
made by
contractor.
The scope of carbon footprints boundary in this Carbon Management Plan includes activities
under the operation control of Malaysia Airports Holdings Berhad within the KLIA activities
boundary, including
KLIA Main Terminal Building, Contact Pier and Satellite
Malaysia Airports Holdings Berhad Corporate Office
Airport Management Centre, KLIA
Engineering Complex
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
The following map shows the study boundary for this Carbon Management Plan.
Figure 1 : Carbon footprint study boundary (Source from Malaysia Airports Document
Centre)
Emissions Factor
The emission factor for electricity generation in 2012 from the Green Tech Malaysia was
adopted for the carbon footprint calculations (0.741 tCO₂/MWh)
Purpose
The purpose of this Carbon Management Plan aims to provide best practice guidance for
Malaysia Airports Holdings Berhad on producing individual carbon reduction strategies,
targets and associated carbon management plans.
1. Introduction
This Carbon Management Plan provides a strategic, whole-organization approach that
integrates with existing strategy and enables the organization to:
Understand the impact of carbon emissions
Formulate a plan to reduce carbon emissions
Implement, review and update the plan in the future
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Communicate successful implementations to stakeholders
Malaysia Airports’ Environmental Protection Policy outlines the elements to support our
business objective of ‘Zero Harm or Damage to the Environment’, together with the Energy
Policy with the Policy Statement to promote the efficient use of energy in delivering service
excellence to airport users and customers.
Therefore, to support the Carbon Management Plan, both of Malaysia Airports’
Environmental Protection Policy and Energy Policy describes our intentions, attached
Appendix A.
2. Distribution of emissions under KLIA operations
Scope 1 (Direct emissions)
Emissions released into the atmosphere from operations owned or controlled by KLIA. These
are direct emissions and related to emissions arising from the airport owned vehicles-usage
of fuel in petrol and diesel, the SF6 Gas Insulated Switchgear, refrigerant use from air
conditioning units and aerobridges Pre-Conditioned Air (PCA) units and CO₂ Fire
Extinguisher.
Scope 2 (Indirect Emissions)
Emissions released into the atmosphere associated with KLIA’s consumption of purchased
electricity for operations owned or controlled by MA (Sepang) Sdn Bhd.
Drivers for Carbon Management Plan
The key drivers for implementing a Carbon Management Plan are:
Supporting the national commitment of 40% in terms of emissions intensity of GDP
by the year 2020
Supporting Malaysia Airports’ Policies in place
Cost savings through reduced expenditure on utilities and fuel
Attracting stakeholders by improving our reputation as a sustainable airport
company
Malaysia Airports Holdings Berhad Carbon Management Plan 2015-2020
Attracting funding from investors and other external bodies
To serve the regulatory compliance
3. Governance, Responsibility and Ownership
Carbon Management is an ongoing improvement process that evolves along the way to
achieve the objectives through undertaking the greater challenges. The following table
shows the identification of related person in-charge/department responsible for emission
sources.
No. Names
Emission Sources
1. Ibrahim Jaal Manager, Passenger Boarding Bridge (PBB), Engineering MA (Sepang) Sdn Bhd
Scope 1 : Building based refrigerants
2. Azlan Iberahim Executive, Passenger Boarding Bridge (PBB), Engineering MA (Sepang) Sdn Bhd
Scope 1 : Building based refrigerants
3. Mohd Zahir Senior Engineer, Reliability,SAP & Utilities (RSU), Engineering MA (Sepang) Sdn Bhd
Scope 2 : Electricity consumption
4. Nik Kamarulzaman Senior Engineer, Reliability,SAP & Utilities (RSU), Engineering MA (Sepang) Sdn Bhd
Scope 2 : Electricity consumption
5. Nasri Saruan Senior Engineer, Electrical Power System (EPS), Engineering MA (Sepang) Sdn Bhd
Scope 2 : Electricity consumption
6. Ir. Roslan Othman Senior Manager, Resident Electrical Engineer (REE), Engineering MA (Sepang) Sdn Bhd