JetBlue Ties Senior Bonuses to ESG Goals, Launches 2040 Net Zero Target
JetBlue announced a series of new sustainability initiatives, adding a new link between executive compensation and ESG performance, as well as introducing new emissions reduction targets, including a goal to achieve net zero carbon emissions by 2040.
According to JetBlue, the company’s senior leaders’ 2021-2023 long-term incentive plan (LTIP) compensation will be tied to an index that determines payout based on a series of key ESG metrics, including percent reduction in company emissions per available seat mile (ASM), volume of sustainable aviation fuel used, spend toward underrepresented business partners, long-term efforts to engage and work with minority and women owned businesses (MWBE), and a more diverse slate of officers and directors.
JetBlue announced in August 2020 that it had achieved carbon neutrality on domestic flights, primarily through carbon offsets. With the launch of its new 2040 net zero target, the airline also announced a series of interim goals aimed at emissions reduction, encompassing fuel-efficient operations, aircraft, and usage of sustainable aviation fuels. These include decreasing aircraft emissions 25% per ASM by 2030 from 2015 levels, converting 10% of total jet fuel to be from blended sustainable aviation fuel (SAF) by 2030, and converting 40% of three main ground service equipment vehicle types to electric by 2025 and 50% by 2030. Other environmental goals announced by the company include eliminating single use plastics within service ware where possible or ensuring plastic is recyclable if it can’t be eliminated, and maintaining at least an 80% recycling rate for audited domestic flights.
Joanna Geraghty, President and Chief Operating Officer, JetBlue, said:
“Our vision is to lead the way to a lower-carbon future for aviation. To get there, we are focused on innovations that offer meaningful reductions in emissions – and are setting clear targets along the way. We’re facing climate change head on and are seeking opportunities to reduce natural resource consumption, such as increasing use of renewable energy and minimizing waste produced.”
The company’s new ESG initiatives also follow a series of Diversity, Equity and Inclusion (DEI) goals recently introduced by JetBlue. In February, the airline announced set new DEI commitments, including doubling race and ethnic minority representation at the officer and director level, from 12.5% today to 25%, and increasing representation of women at the officer and director level, from 32% today to 40% by the end of 2025.
Robin Hayes, Chief Executive Officer, JetBlue, said:
“JetBlue’s reinforced DEI strategy includes an increased investment in crewmembers’ development, retention and growth, focusing on a more inclusive workplace that drives better decision-making and innovation. We’re mobilizing our senior leadership team to create a more equitable workplace that better reflects the diverse communities we serve in all aspects of our airline. To ensure our success and strengthen shareholder value, ESG metrics will be tied to compensation and goals for JetBlue’s officers and directors.”