On the ground and in the air, Cathay Pacific is committed to a range of eco-friendly initiatives.

Cathay Pacific has always taken its environmental responsibilities very seriously. As early as 1997 we were one of the first airlines to monitor our environmental performance and publicise relevant reports.

A decade later we initiated FLY greener, the first carbon-offset scheme of its kind to be launched by an Asian airline. Passengers can support the initiative by contributing cash or Asia Miles points, which are used for projects that offset carbon-dioxide emissions associated with their travel. Projects currently being supported include a natural gas fuel switch project in Beijing; a natural "run of river" hydro plant project in Guizhou; and a group of 20 wind turbines in Heilongjiang, Mainland China.

Over the years we have also introduced eco-friendly initiatives in the following areas:

• In hardware: we continue to invest in greener aircraft. By the end of 2009 we will have retired all of our Classic freighters and replaced them with more fuel-efficient models.
• In the sky: we use flexible routes between destinations, taking into consideration the wind variability, in order to improve efficiency and save fuel.
• On the ground: we have installed energy-saving equipment in our headquarters in Hong Kong, including computer-controlled air-conditioning, lighting and lifts, low-emission lights, double-glazed windows and sensor-controlled window shades.
• On board: we have developed protocols to reduce meal wastage inflight. We also continue the inflight waste recycling programme that was launched in 2006. In 2008, 4.6 million items, including plastic bottles, cups and tin cans, were collected from our aircraft for recycling.

We realise that there is still a lot to be done and our efforts will continue. Last year we started the trials of using biodegradable plastic bags inflight.

We're looking into more similar initiatives this year. Our goal is to use materials and offer products that are eco-friendly while meeting passengers’ expectations and health and safety requirements.

The Cathay Pacific Climate Change Position

Substantial reductions in global carbon emissions are urgently required to mitigate the impact of climate change. Cathay Pacific acknowledges that:

• Aviation is estimated to contirbute to approximately 2% of man-made carbon dioxide emissions
• Improved efficiency can be achieved through technological improvements, operations control and improved air traffic management systems
• Absolute emissions will continue to rise as the industry grows

We are already making a very positive contribution towards addressing climate change by:

• Calculating and reporting openly on our emissions
• Working with industry partners and lobbying regulators to support route improvements and address inefficiencies in air traffic management
• Maximising efficiency through operational efficiency drives and fleet development
• Addressing climate change through the development of a carbon management plan and a carbon offset project

We support the following:

• The important role that carbon trading schemes can play to help secure the required reduction in global carbon emissions at minimum cost
• The funding of carbon emission reduction strategies on the ground from any revenues raised through economic instruments
• The leadership by the International Civil Aviation Organization (ICAO) in establishing a carbon trading scheme for international aviation

Cathay Pacific will work through the International Air Transport Association (IATA) and other industry partnerships to facilitate such action.