Aena S M E S A : Update Report 2023 of the Climate Action Plan (Ninth point)

Updated report

of the Climate Action Plan 2023

INDEX

1. CONTEXT
2. 1. Climate action cannot wait
   2. Europe as world leader in climate action
   3. Sustainable Aviation Revolution
   4. Compliance with the main guidelines relating to climate change
   5. 2023 Highlights
   6. Adhesions and Alliances
   7. Aena recognized as a sustainable company
3. SUSTAINABLE GOVERNANCE
4. 1. Governing Bodies
   2. Sustainable Finance
5. STRATEGY
6. 1. Aena's sustainability strategy
   2. Reinforcing the commitments of the Climate Action Plan and roadmap
7. RISKS AND OPPORTUNITIES RELATED TO CLIMATE CHANGE
8. 1. Risk Management
   2. Physical and transition risks and opportunities

5 MONITORING TO THE 2023 CLIMATE ACTION PLAN

1. Metrics, targets and emissions evolution
2. 2023 objectives and actions linked to the reduction of Scope 1&2 emissions: Carbon Neutrality Program.
3. 2023 objectives and actions linked to Scope 3 emission reductions: Community and Value Chain and Sustainable Aviation Programs

Context

Aena's commitment to the fight against climate change

is aligned with the main European and national objectives to achieve sustainable air transport.

CONTEXT	SUSTAINABLE	STRATEGY	RELATED RISKS AND	MONITORING
OPPORTUNITIES TO	OF THE CLIMATE
GOVERNANCE
		CLIMATE CHANGE	ACTION PLAN

Climate action cannot wait

Air transport continues to progress in its imperative climate actions by reducing greenhouse gas emissions (GHG), also accelerating the progress rate by implementing innovative technologies and practices. This commitment to sustainability underscores the industry's dedication to achieving environmentally friendly aviation practices.

At COP28 in 2023, the progress made on global climate action under the Paris Agreement was acknowledged, although it was noted that much remains to be done. Hence, the goal of constraining the rise in global temperature to well below 2°C, preferably 1.5°C, was again reiterated acknowledging that doing so will markedly mitigate the risks and repercussions of climate change. This underscores the concern regarding the hastened impact of climate change and the need to enact viable and impactful mitigation measures across all sectors.

In this context, the transportation sector is confronted with a significant challenge stemming from the imperative to decarbonize the economy, all while there is a growing demand for connectivity and the promotion of intermodal logistics chains.

Moreover, the imperative of addressing the climate emergency and achieving more efficient energy management is not only a legal obligation, as reflected in the European climate regulatory framework, but also a geopolitical, economic, and social necessity. This is particularly evident given the prevailing conditions of armed conflicts and energy transition, which are reshaping the current global economic system.

Hence, the pivotal role of all companies, particularly those in the aviation sector, is paramount in addressing these challenges. They possess the capacity

to implement initiatives aimed at reducing their environmental footprint and thereby facilitate the decarbonization of the economy. Likewise, this is not a journey that a company should embark on alone. Achieving climate neutrality requires the combined efforts of all countries, both developed and emerging, as well as companies and institutions worldwide. If we work together as a global team and create the necessary synergies, we can successfully decarbonize the planet.

Climate Action Plan 2023 | Report 2023

CONTEXT	SUSTAINABLE	STRATEGY	RELATED RISKS AND	MONITORING
OPPORTUNITIES TO	OF THE CLIMATE
GOVERNANCE
		CLIMATE CHANGE	ACTION PLAN

Europe as world leader in climate action

The European Commission, building on the Green Deal published in 2019, has established ambitious and legally binding climate targets that encompass all key sectors of the economy. This initiative is enclosed in the Fit for 55 policy package.

In recent years, Europe has taken on a leading role in the global climate transition, demonstrating a strong commitment to shaping the ecological transition for the benefit of both citizens and industries. To achieve this goal, the EU is striving for a fair and prosperous society, characterized by a modern, resource-efficient, and competitive economy. The aim is to achieve net-zero greenhouse gas emissions by 2050 while ensuring that economic growth is decoupled from resource use.

Building on the above objectives, the Fit for 55 Package serves as the European Commission's policy mechanism. Its purpose is to revise existing legislation and introduce new initiatives to align policies with climate objectives agreed upon by the Council and the European Parliament. Additionally, it aims to bolster innovation and enhance the competitiveness of EU industry. In this regard, the reduction of fossil fuel consumption in transportation is paramount to the EU's attainment of climate neutrality by 2050. The Commission has set an objective to slash greenhouse gas emissions from this sector by 90% by the aforementioned year.

An example of such an initiative is the ReFuelEU Aviation regulation, endorsed by the Council in October 2023. Its aim is to diminish the environmental impact of aviation, allowing the sector to support the EU's climate objectives by widely embracing sustainable aviation fuels derived from both bio-based and synthetic sources. Hence, the regulation sets a target of 2% sustainable fuel usage by aviation in 2025, with a subsequent goal of reaching 70% by 2050.

Another new regulation is the Alternative Fuels Infrastructure Regulation (AFIR). Formally adopted in July 2023, which aims to ensure that citizens and businesses have access to a sufficient network of infrastructure to recharge or refuel their vehicles with alternative fuels. In the case of aviation, the aim is to ensure that the energy demanded by aircraft on the ground is supplied in the most sustainable way possible, Avoiding the use of fossil-fueled generators.

Climate Action Plan 2023 | Report 2023

CONTEXT	SUSTAINABLE	STRATEGY	RELATED RISKS AND
OPPORTUNITIES TO
GOVERNANCE
		CLIMATE CHANGE

In this framework of measures, in December 2022 a political agreement was reached on changes to the EU Emissions Trading System (EU ETS) rules on aviation. This agreement included, among other things, the phasing out of free emission allowances for the aviation sector by 2026, the evaluation of the

The evaluation of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA), established by the International Civil Aviation Organization (ICAO), aims to determine its alignment with the goals of the Paris Agreement. Additionally, a new aid scheme is proposed to accelerate the adoption of sustainable aviation fuels, financed by revenues from the EU Emissions Trading System (ETS), estimated at €1.6 billion. This revision was formally adopted in April 2023.

Another set of measures relevant to the airport sector, outlined within the Fit For 55 regulatory package, encompasses energy efficiency measures for buildings. These measures, provisionally approved in December 2023, target a reduction of final energy consumption in the European Union by 11.7% in 2030 compared to 2020. They include initiatives aimed at reducing the energy consumption of buildings. Additionally, packages of measures addressing the hydrogen and decarbonized gas markets are proposed, seen as crucial vectors for promoting sustainability in aviation.

Finally, the Council is currently discussing the revision of the Energy Taxation Directive, with a change in the fuel regime that could involve the elimination of tax exemptions for air transport (kerosene tax).

This regulatory package is an essential support for the aviation sector in its fight against climate change, but it is also necessary for governments, international organizations and other stakeholders to work together to achieve a unified vision through comprehensive policy mechanisms, specific investments and fiscal support and regulations that enable a level playing field and avoid a competitive scenario of carbon leakage to other markets with less demanding regulatory frameworks and provide incentives for this necessary change.

MONITORING

OF THE CLIMATE

ACTION PLAN

KEY REGULATORY

MEASURES OF THE EU

FIT FOR 55 PACKAGE

FOR AVIATION

Refuel AviationEU

Alternative fuels infrastructure

Review of the EU Emissions Trading Scheme (EU ETS)

Revision of the Energy Taxation Directive

Climate Action Plan 2023 | Report 2023

CONTEXT	SUSTAINABLE	STRATEGY	RELATED RISKS AND	MONITORING
OPPORTUNITIES TO	OF THE CLIMATE
GOVERNANCE
		CLIMATE CHANGE	ACTION PLAN

Sustainable Aviation Revolution

The economic and social benefits that air transport and connectivity bring to people around the world are undeniable. Among the benefits that come with air transport, encouraging tourism is one of the most economically relevant. In fact, tourism was the main engine of economic growth in Spain in 2023, closing this year with an activity of 186,596 million euros, which corresponds to a contribution to the Spanish economy of 12.8% of GDP, the highest value in the historical series1. It is noteworthy to emphasize the significant role that air transport plays in trade, responsible for handling 35% of the total value of goods.

In this regard, the aviation industry envisions future generations being able to continue enjoying air travel, facilitating communication, expanding horizons, fostering cultural exchange, and sharing experiences. However, it recognizes that sustainable development is paramount for the future of transportation.

1. Source: Exceltur
2. https://www.icao.int/Newsroom/Pages/ES/States-adopts-netzero-2050-aspirational-goal-for-international-flight-operations.aspx

This is why the industry has adopted the 2050 target of achieving zero-carbon air transport. The achievement of this target will depend on the combined effect of multiple CO2 emission reduction measures, including the accelerated adoption of new and innovative aeronautical technologies, the streamlining of flight operations and the increased production and deployment of sustainable aviation fuels (SAF) as well as the key role of clean hydrogen, a versatile energy source for alternative propulsion on the path to decarbonization of aviation.

This goal of net zero aviation carbon by 20502 is undoubtedly a major challenge for the aviation sector, but it already has a successful track record of working to overcome challenges and this transition will be no different. The roadmap is underway and we are working against the clock to bring about this sustainable revolution.

To this end, all industry players are working collaboratively with a common goal: to continue providing more unforgettable trips in a sustainable and emission-free way.

Climate Action Plan 2023 | Report 2023

CONTEXT	SUSTAINABLE	STRATEGY	RELATED RISKS AND	MONITORING
OPPORTUNITIES TO	OF THE CLIMATE
GOVERNANCE
		CLIMATE CHANGE	ACTION PLAN

Compliance with the main guidelines relating to climate change

This report provides details on governance, strategy, risk and opportunity management, objectives, metrics, and climate-related developments, adhering to the recommendations of the Financial Stability Board, specifically its Task Force on Climate-relatedFinancial Disclosures. In this respect, Aena supports the TCFD in joining this initiative together with the other company leaders commited to take action against climate change.

The guidelines derived from the supplement of the European Commission's climate-related

Directive 2014/95/EU of the European Parliament and of the Council of the European Union, have been taken into account, which establishes a description of the policies of results and risks linked to environmental issues.

On the other hand, in alignment with Aena's commitment to the Science-BasedTargets Initiative (SBTi)3 for setting science-based emission reduction targets, these targets were calculated and submitted in 2023 based on the following criteria:

LEVEL OF COMMITMENT: Business Ambition for 1.5ºC3

1. Establishment of intermediate objectives 2030 (short term). In the case of Scope 3, the objectives submitted for validation are as follows:

• 36% reduction in absolute emissions from purchased goods, fuel and energy activities, generated waste, business travel, and downstream transportation and distribution.
• Commitment that 60% of suppliers (by spend) and 67% of their customers by emissions (airlines) will have science-basedtargets by 2028.

1. Establishment of a long-term target according to SBTi criteria to achieve zero net GHG emissions in the value chain by 2050, in line with the ICAO long- term objective (LTAG).

3 The scope of the objectives includes Aena SME SA, SCAIRM, and its subsidiaries in the United Kingdom (LLA) and ANB.

Climate Action Plan 2023 | Report 2023

CONTEXT	SUSTAINABLE	STRATEGY
GOVERNANCE

2023 Highlights

Bringing forward the year of achievement of net zero to 2030.

Short- and long-term decarbonization targets based on the 1.5ºC

scenario sent to SBTi for validation.

Purchase of 100% renewable electricity with guarantee

of origin for the 4th consecutive year.

RELATED RISKS AND	MONITORING
OPPORTUNITIES TO	OF THE CLIMATE
CLIMATE CHANGE	ACTION PLAN

Aena achieved a remarkable 70% reduction in its Scope 1 and 2 emissions compared to 2019, exceeding the target by 9 points. This achievement eliminated the need for emission offsets.

New accreditation strategy Airport Carbon Accreditation

with 19 airports at level 4+ in 2026 and level 5 in 2030.

Awarding of new licenses for the provision of ground handling services to third parties, with a commitment to be practically zero emissions as of 2024.

Climate Action Plan 2023 | Report 2023

CONTEXT	SUSTAINABLE	STRATEGY	RELATED RISKS AND	MONITORING
OPPORTUNITIES TO	OF THE CLIMATE
GOVERNANCE
		CLIMATE CHANGE	ACTION PLAN

2023 Highlights

Participation in the Steering Committee of the Alliance	Report on the degree of eligibility and alignment of actions,
for Sustainability in Air Transport in Spain, leading	calculated on Aena's economic activities based on the EU
the airports working group.	Taxonomy (66.25% eligibility and 35.8% alignment in turnover).

Aena is the fourth most sustainable company in the transport and	Approval of the update of the Integrated Quality,
transport infrastructure sector worldwide according to the Dow	Environmental, Energy Efficiency and Occupational Health
Jones Sustainability World Index of S&P Global, having	and Safety Management Policy and the Sustainability
obtained 75 points in the environmental dimension and 72 points	Policy of Aena, S.M.E., S.A. by the Board of Directors.
in the social dimension (both out of 100).

Climate Action Plan 2023 | Report 2023