HAECO Group
Sustainability is of paramount importance to all aspects of HAECO’s activity. Acting sustainably is not only the right thing to do but also represents sound business sense. At HAECO, we fully recognise and accept our role within a value chain that is highly visible in terms of its associated emissions. As we pursue our 2030 sustainable development strategy and roadmap, we acknowledge the importance of elevating our contribution within the industry and the community, aiming to be part of long-term, comprehensive solutions.
I am pleased to present the HAECO Group's Sustainable Development (SD) Highlights for 2023 – a year in which we continued to gain momentum in our drive to lead sustainability efforts in the aircraft engineering and maintenance industry.
People
As a global employer in a labour-intensive industry, our people are at the core of our operations. We are committed to providing them with safe and secure working environments, while treating them with dignity, fairness, and respect.
1. Safety
Safety will always be the foremost priority for HAECO. We prioritise safety in our performance reviews and board meetings, as it is fundamental to our operations and our industry reputation.
During the first half of 2023, we faced some challenges in our safety performance. This was primarily due to the need to on-board new personnel after Hong Kong emerged from the COVID-19 pandemic. Staff turnover, particularly in Hong Kong and the USA, further exacerbated these pressures.
However, we witnessed significant improvements in our safety figures during the second half of 2023 and into 2024. Nevertheless, we remain vigilant and proactive, celebrating positive safety observations, addressing issues promptly, and ensuring effective communication throughout the organisation. We are actively fostering a team approach to safety across all business units, rather than adopting a mere policing mindset.
2. Diversity & Inclusion (D&I)
We continue to make significant strides in promoting D&I across all our entities. We have set clear targets to enable objective measurement of our performance in this area over time. In an industry that has traditionally been dominated by men, gender equality remains our top priority. By 2023, we had already achieved 26.8% representation of women in senior leadership positions, and we aim to reach 30% by 2030.
Diversity involves recruiting individuals with diverse backgrounds and skills, while inclusion focuses on fostering an inclusive culture that encourages retention. At HAECO, we prioritise the establishment of an inclusive working culture under the banner of "One HAECO". We have developed six D&I networks to honour the values of different genders, races, ages, abilities, and sexual orientations. These networks ensure that our employees can pursue their careers in an environment where they feel a sense of belonging. Our commitment to being an attractive, inclusive workplace and an employer of choice benefits everyone within the organisation.
Environment
The HAECO Group operates within an industry that faces intense scrutiny regarding its environmental impact. While our own carbon footprint may be relatively small compared to other industry players, it is imperative that we continue to make sustainable progress in various aspects of our operations, including carbon emissions, water consumption, and waste generation.
In 2023, notable progress was made in these areas, particularly in water and waste management. However, reducing carbon emissions posed a greater challenge due to the significant growth in our business activity. Nonetheless, our carbon emissions (Scope 1 and Scope 2) decreased by 2% in 2023, and we remain on track to achieve our 2030 target of a 40% reduction in carbon emissions compared to the 2018 baseline.
Our teams are dedicated to minimising our environmental impact, and we are delighted to witness an increase in the implementation of creative ideas across the group. These include reducing water usage through more efficient cleaning systems and fostering a waste reduction mindset across the entire HAECO family.
Looking ahead to 2024, we are embarking on a significant solar panel project in the USA, which will bring about substantial environmental benefits. Additionally, preparations are underway for our relocation to a new facility near Xiamen Xiang'an International Airport in 2026. This facility will house the largest single-span hangar globally, offering substantial gains in productivity, efficiency, and emissions reduction.
Communities
As a global organisation, the HAECO Group takes immense pride in being a responsible corporate citizen, maintaining close ties with the communities in which we operate. Our sustainable development strategy prioritises youth development, community support, and environmental protection. We actively engage in partnerships and encourage continuous staff involvement to make meaningful contributions in these areas.
We continue to organise numerous staff events in collaboration with charitable organisations. In Hong Kong, our efforts particularly focus on supporting the elderly and children. These initiatives are supported by the HAECO Corporate Social Responsibility (CSR) Fund and our collaboration with the Swire Trust.
Community work is ongoing across different HAECO entities, tailoring initiatives to specific locations such as Greensboro in North Carolina, USA, and Xiamen in the Chinese Mainland. Many of these community initiatives are employee-led, further reinforcing our commitment to building a more inclusive organisation.
Driving sustainable progress
In conclusion, I am pleased to report that significant progress was made on all fronts in 2023, but there is always more work to be done. Our focus is not merely on meeting our 2030 and 2050 targets, but on actively seeking new opportunities and striving to achieve what is possible.
Sustainability remains at the core of everything we do at HAECO. We aspire to be a true industry leader in this space and will continue our efforts to be a positive force in driving a sustainable future.
Richard Sell
Chief Executive Officer
April 2024