Ishka and PACE launch CIRO Report

PACE, Fexco’s sustainability data and analytics division, and Ishka, a global aviation data, intelligence and advisory business, have today launched CIRO (Carbon, Impact, Risk and Opportunities) Report at the ALI Global Aviation Sustainability Day in Dublin. The report follows the announcement of their strategic partnership in July.

The CIRO Report leverages the strengths of both organisations to provide comprehensive insights and innovative solutions for the aviation industry’s sustainability challenges. It offers an in-depth analysis of carbon impact and sustainability opportunities, available on ISHKA and PACE’s digital platforms.

The report can be tailored to the needs of Lessors, Banks, Investors, Insurers and other key stakeholders seeking to understand how carbon impacts their investments or end customers. As the world intensifies its fight against climate change, the aviation industry faces an escalating threat that could reshape its financial and operational landscape.

Ishka and PACE aim to drive innovation and sustainability in the aviation sector by working together to encourage greater collaboration between regulatory bodies, industry stakeholders, and other participants in the ecosystem to ensure broad-based support and adoption of the report’s findings and recommendations.

The first CIRO Report examines Air France-KLM, recognising the airline’s sustainability and sustainable aviation leadership. Key insights include:

• Sustainable Aviation Fuel (SAF): Air France-KLM is the world’s largest user of SAF, setting benchmarks in sustainable finance and decarbonisation.
• Emissions Reduction: Significant strides in reducing carbon footprint, with initiatives like a major re-fleet exercise expected to deliver a 10% to 20% reduction in emissions intensity.
• Ambitious Targets: Targets validated by the Science-Based Targets initiative (SBTi) aiming for a 30% reduction in well-to-wake emissions by 2030 compared to 2019 levels.
• Regulatory Pressures: Exposure to various regulatory pressures, including SAF mandates and the EU Emissions Trading System (ETS).
• Sustainable Finance: Multiple transactions linked to decarbonisation targets, enhancing accountability and transparency.

Ultimately, the Carbon, Impact, Risk and Opportunity (CIRO) score reflects the airline’s leadership in industry decarbonisation, balancing its ambitions with external drivers like carbon pricing exposure and relative progress by peers. By 2030, Air France-KLM aims to have 70% of its fleet comprised of new-generation aircraft, significantly reducing emissions intensity and continuing to invest in SAF and new technologies, underscoring its commitment to a sustainable future.

Carbon Pricing and Its Impact

Carbon pricing mechanisms, designed to penalise carbon emitters, are rapidly becoming accepted policy tools. These mechanisms pose significant risks to stakeholders’ business models in the aviation sector. The CIRO Report addresses this knowledge gap, providing critical insights for lessors, banks, investors, insurers, and other key stakeholders.

“Our first CIRO Report underscores our commitment to delivering exceptional value through innovative solutions and strategic partnerships,” said Cathal Foley, CEO of PACE. “By combining our expertise, we provide the aviation industry with critical insights and tools to achieve their sustainability targets.”

“The launch of the CIRO Report marks a significant milestone in our commitment to providing the aviation industry with actionable analytics and help drive meaningful progress toward a more sustainable future,” said Chris Keene, Managing Director of Ishka.

Beyond this first CIRO Report, the collaboration will explore further opportunities to publish regulatory content, thereby driving engagement with key industry stakeholders. This initiative aims to support the aviation sector in meeting regulatory requirements and advancing sustainability goals.