Cebu Pacific (PSE: CEB), the Philippines’ top carrier, has reached a new milestone in sustainable aviation by earning an ‘AA’ rating from MSCI ESG Ratings — a first among local airlines. This accomplishment places Cebu Pacific among the global leaders in effectively managing Environmental, Social, and Governance (ESG) risks and opportunities.
What is the MSCI ESG Rating?
MSCI ESG Ratings assess companies worldwide on their exposure to ESG risks and their ability to manage them, using a scale from AAA (leader) to CCC (laggard). Cebu Pacific’s ‘AA’ rating signifies its strong performance in managing these industry-specific risks better than most of its peers.
Commitment to Sustainable Aviation
“We have always been committed to responsible and sustainable operations. This upgraded rating highlights our progress in addressing environmental, social, and governance challenges. Our initiatives, such as operating high-density, fuel-efficient aircraft, are reducing carbon emissions and achieving the lowest carbon burn per seat, offering our passengers a more sustainable travel experience,” said Xander Lao, President and Chief Commercial Officer of Cebu Pacific.
In 2023, Cebu Pacific achieved an ‘A’ rating, but its recent upgrade to ‘AA’ reflects its steadfast dedication to sustainability. The airline ranks in the top quartile among peers for carbon emissions management by operating a fleet with an average age of six years—significantly younger than the industry average of nine years. This commitment has led to improved fuel efficiency and lower carbon emissions.
Excellence in Social Performance and Governance
Beyond environmental impact, Cebu Pacific excels in social performance metrics, including robust data privacy measures and enhanced labor management practices. The airline’s high rankings in these areas are backed by strong employee engagement programs and compliance with international safety standards, such as the IATA Operational Safety Audit (IOSA).
On the governance front, Cebu Pacific is recognized for its stringent anti-bribery and corruption policies and comprehensive governance frameworks, reflecting a strong commitment to ethical business practices.
Looking Ahead: Sustaining Leadership in ESG
As one of only two companies in the Philippines to achieve an ‘AA’ rating, Cebu Pacific aims to build on this momentum by further improving its sustainability initiatives and governance frameworks. The airline remains dedicated to enhancing its practices to maintain its leadership in ESG performance, fostering long-term success and operational resilience.