Our SUBU CONNECT LinkedIn poll revealed that 93% of respondents were unaware of the EU Corporate Sustainability Due Diligence Directive (CSDDD) and its potential implications for their businesses.
This statistic underscores the need for greater awareness and understanding of this significant regulation, particularly within the airline industry. As the airline industry faces increasing pressure to reduce its environmental footprint, sustainability has become an essential focus across all operations, including the often-overlooked food supply chains.
The European Union’s Corporate Sustainability Due Diligence Directive (CSDDD) has taken effect as of this year and requires companies to address the environmental and social impacts of their entire value chain. Considering this, airlines have a unique opportunity to lead by example, especially when it comes to the food they serve.
With this in mind, and our membership with the Airline Catering Association (ACA), we wanted to take on the opportunity to explore how sustainable practices can be adopted across the airline food supply chain, from sourcing and packaging to waste management, to not only comply with emerging regulations but also align with global sustainability goals.
Objective
The primary goal of this paper is to investigate how airlines can adapt their food supply chains to meet the stringent requirements of the CSDDD while contributing to broader sustainability objectives. The food supply chain is a significant source of environmental degradation, contributing to greenhouse gas emissions, deforestation, and waste.
This study highlights why sustainability in airline food supply chains is crucial, not only for regulatory compliance but also for enhancing the long-term value proposition offered to passengers by the airlines. By embedding sustainable practices, airlines can reduce their carbon footprint, manage waste effectively, and support the EUs vision for a low-carbon future.
Scope
This paper focuses on the airline industry’s food supply chain across commercial and cargo carriers in the European Union. Specific regions include EU-based airlines and suppliers operating within its jurisdiction.
The study covers key aspects of the food supply chain, such as:
- Sourcing: Exploring sustainable practices such as sourcing from local producers.
- Packaging: Reducing the environmental impact of packaging by adopting eco-friendly materials.
- Waste management: Minimising food waste and maximizing resource efficiency throughout operations.
By examining these focus areas, this study will provide actionable insights for airlines seeking to align with the CSDDD.
Role of SUBU Connect
Transitioning to sustainable practices across a complex, global value chain is no small feat. This is where SUBU CONNECT aims to support as a critical enabler of change.
By offering a comprehensive platform that links airlines with sustainable food suppliers, SUBU CONNECT will support to mitigate the challenges of transitioning to greener operations.
Our platform facilitates:
- Data-driven insights: Helping airlines track and analyse their supply chains sustainability performance.
- Supplier connections: Linking airlines with local, eco-friendly food and beverage suppliers who engage in sustainable production.
- Compliance assistance: Providing tools to ensure that airline companies meet the CSDDD’s due diligence requirements, including stakeholder engagement and transparent reporting.
By leveraging SUBU CONNECT network, airlines can reduce friction in their transition towards sustainability, ensuring that their efforts align not only with regulatory mandates but also with the growing expectations of consumers and stakeholders for responsible business conduct.
This study demonstrates how working together we can streamline the adoption of climate transition plans, enabling platform partners to take proactive steps in reducing emissions and promoting sustainable practices across their food supply chains.
Through this exploration, we aim to provide airlines with a roadmap for navigating the complexities of sustainability in their food value chains, highlighting how technological solutions like SUBU CONNECT can make this journey smoother and more effective.
The Airline Industry and Sustainability
Overview of the Airline Industry
The global airline industry plays a pivotal role in connecting economies and enabling global trade, contributing approximately $3.5 trillion annually to the global economy.
According to the International Air Transport Association (IATA), the industry directly employs 10 million people and facilitates the movement of over 4 billion passengers annually. Over the next 20 years, it is expected that world passengers are set to increase by 3.8% per year on average, resulting in over 4 billion additional passenger journeys in 2043 compared to 2023.
European and North American markets will see a slower rise in demand, 2.3% and 2.7% per year respectively. Asia Pacific is anticipated to record the fastest rise in passenger numbers and to contribute to more than half of the net increase in global passenger numbers by 2043.
Importance of Sustainability in the Airline Industry
The airline industry’s environmental impact is significant, with aviation responsible for approximately 2-3% of global CO2 emissions.
A critical contributor to this footprint is airline food services, which generate vast amounts of waste and consumes considerable resources. According to IATA, sustainability is a key strategic priority, with carbon neutrality by 2050 being a primary goal.
The Airline Catering Association echoes this sentiment, noting that reducing food waste and transitioning to eco-friendly materials are essential for minimising the environmental impact of in-flight services. ACA Guidance Document on Waste Recycling (September 2024).
The CSDDD and its implications
Airline food supply chains are complex, involving numerous stakeholders, including food suppliers, caterers and supply chain logistic companies who need to be effectively managed and controlled.
The CSDDD aims to provide a regulatory framework pertaining to human rights and environmental due diligence requirements. Establishing a foundation that companies can build from and recreate their current practices to fit the requirements that will set in effect, in July 2026. Officially the CSDDD set off on July 25, 2024, holding member states accountable to adopt national laws transposing the CSDDD obligations.
Assessment gateways against the timeline
The CSDDD comes with several milestones of importance.
By 2027, member states must adopt national laws transposing CSDDD obligations, and companies will be required to comply with due diligence obligations based on specific turnover and employee thresholds.
- For EU companies with a global turnover of EUR 1,500 million and 5,000 employees, the compliance deadline is 26 July 2027.
- Companies with a turnover of EUR 900 million and 3,000 employees must comply by 26 July 2028, and
- Companies with a turnover of EUR 450 million and 1,000 employees by 26 July 2029.
At the same time non-EU companies with equivalent EU turnover must follow the same timeline. EU and non-EU franchisors/licensors must comply by 26 July 2029 if they have a turnover of EUR 80 million or royalties of EUR 22.5 million (CSDDD White Paper, 2024).
Conclusion
- The airline industry has a significant impact on the environment, and there is a growing need for sustainable practices.
- The CSDDD will introduce new requirements for airlines to address sustainability in their food supply chains.
- SUBU Connect can play a crucial role in helping airlines meet these requirements and transition towards more sustainable practices.
Recommendations
- Airlines should proactively address the requirements of the CSDDD.
- Airlines should consider SUBU CONNECT to help them transition to more sustainable food supply chain practices.
- Airlines should measure and track their progress towards sustainability goals.
Please do contact us directly or via this post should you wish to discuss this paper and learn how we can support you further!
