News — 2022

SMBC Aviation Capital launches sector-leading sustainability solution for airlines

20/09/2022

  • First portfolio of high quality carbon credits established by major aircraft leasing company with $53.3m investment
  • Part of SMBC Aviation Capital’s wider commitment to supporting its customers’ net zero ambitions by 2050

Dublin, 20 September 2022: SMBC Aviation Capital, one of the world’s leading aircraft leasing companies, today launched a sustainability solution for its airline customers, including an initial $53.3 million investment in high quality carbon credit programmes that align with the United Nation’s Sustainable Development Goals (SDGs).

SMBC Aviation Capital, via its innovation hub, collaborated with airlines to develop an initiative to help its customers achieve their net zero targets. In addition, it is the first major global leasing company to introduce a carbon credit programme to help airlines execute on their CORSIA* commitments.

This programme will also help airlines deliver on their ESG strategies by providing access to a portfolio of carbon credits certified by the world’s leading carbon standards in Least Developed Countries (LDCs), alongside one of the most fuel-efficient fleets in the world.

Airlines and investors can acquire carbon credits from SMBC Aviation Capital either as part of a lease contract or independently. This can offer airlines significant advantages including access to carbon credits that are of high quality, increased certainty over accreditation and a more predictable, and fixed-cost supply of credits.

The credits are based on energy efficient cookstove projects in Africa, Asia and the Americas, which are certified by Gold Standard and Verra. These projects also align with several of the UN’s Sustainable Development Goals including good health and well-being, gender equality and climate action. Part of the investment will also support local community initiatives in LDCs such as irrigation schemes and micro finance opportunities for women.

Peter Barrett, CEO of SMBC Aviation Capital, said: SMBC Aviation Capital is committed to playing a leading role in helping our customers achieve their sustainability targets. We have worked to understand how we can be a significant driver of the airline industry’s transition to net zero, with today’s announcement being our first initiative ahead of developing further solutions for airlines.

In a “hard to abate sector”, carbon offsetting is an interim measure, however it also enables a strong positive environmental and social impact in Africa, Asia and South America. Our industry is prepared to face up to the environmental challenge. By taking action and by working together, we can make positive change.”

SMBC Aviation Capital operates one of the most fuel efficient fleets in the aircraft leasing industry with a fleet of 157 narrowbody, new technology aircraft. The company is working with its shareholder Sumitomo Corporation to explore ways to increase the supply of Sustainable Aviation Fuel (SAF) to the global airline industry and is also working with Aircraft Leasing Ireland (ALI) on initiatives that can scale up the production of SAF. It has developed its own framework to achieve net zero in its own operations by 2050 and has offset all of its operational emissions since 2019.

For additional information on SMBC Aviation Capital’s sustainability initiatives, visit www.smbc.aero/esg and access our ESG strategy.

-ends-

*CORSIA: Carbon Offsetting and Reduction Scheme for International Aviation Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) (icao.int)

MEDIA CONTACTS:  

SMBC Aviation Capital: 

Dara O’Sullivan / Conor Irwin  +353 86 021 0135 / +353 87 381 6106

FGS Global: 

Richard Webster-Smith / Theo Davies-Lewis / Claire Keyte       +44 20 7251 3801 

ABOUT SMBC AVIATION CAPITAL: 

Headquartered in Dublin, Ireland, SMBC Aviation Capital is one of the world’s leading aircraft leasing companies, with an owned, managed and committed fleet of over 730 aircraft. The company focuses on the most technologically advanced, fuel efficient and narrowbody aircraft types, providing customers across the globe with the aircraft they need to successfully grow their businesses. Established in 2001, the company was acquired in 2012 by a consortium comprising of two of Japan’s biggest companies SMFG and Sumitomo Corporation. For additional information, please visit SMBC Aviation Capital’s website at https://www.smbc.aero/  

About SMBC Aviation Capital’s Carbon Credit Projects

In conjunction with CO2 Logic www.co2logic.com, a Belgian based company, SMBC Aviation Capital has invested in an energy efficient cookstove project in Burkina Faso in West Africa.

A major element of SMBC Aviation Capital’s initial investment will result in energy efficient cookstoves being provided to 28,000 families in the region who will no longer need to rely on traditional cooking methods which are harmful to the environment and to their own health. According to the Clean Cooking Alliance, the use of open fires and solid fuels for cooking causes nearly 4 million premature deaths each year and, according to the Environmental Protection Agency, the average open fire produces nearly as much carbon dioxide as the average motor vehicle.

Separately, SMBC Aviation Capital is working with C Quest Capital www.cquestcapital.com, a US provider, to forward purchase carbon credits from a range of energy efficient cookstove projects across Africa, Asia and Central America.

C-Quest Capital is a leading carbon project developer whose purpose is to transform the lives of rural families whose health, well-being, and economic welfare are most at risk from climate change. CQC does this by providing clean energy technologies and sustainable land-use solutions that generate verified carbon credits. CQC projects deploy simple, clean and thermally efficient cookstoves to households to replace inefficient open-fire cooking in rural communities.

These projects will reach over 3.2m households and have a significant sustainable development impact across climate, health, social and economic empowerment, meeting a minimum of seven UN Sustainable Development Goals.

Due diligence across all projects has been independently undertaken by Climate Focus www.climatefocus.com, based in the Netherlands.

 

 

"Our industry is prepared to face up to the environmental challenge. By taking action and by working together, we can make positive change.”

Peter Barrett, Chief Executive Officer, SMBC Aviation Capital

Media Enquiries:

Conor Irwin/Orla Benson
SMBC Aviation Capital

+353 1 859 9425
+353 1 859 9067
Email

Charles O'Brien
Partner
Finsbury

+44 0 7825 043 656

Email