Climate and energy

Zurich Airport Group aims to reduce its own greenhouse gas emissions to zero by 2040. It is also adopting measures to resolve the challenges of climate change.

Relevance

Each year, therefore, Zurich Airport Ltd. records the greenhouse gas emissions for each location as CO₂ equivalents in an inventory, in accordance with the standards of the Greenhouse Gas Protocol (see Key data). All greenhouse gas sources are allocated to different spheres of influence known as “Scopes”. Scope 1, with the direct sources at the Zurich site, primarily includes heating systems, in-house electricity generation and the vehicle fleet. Scope 2 relates to emissions resulting from production of the energy purchased from external suppliers. Lastly, Scope 3 covers all other airport-related sources of emissions (e.g. ground handling and aircraft, including flights to the final destination) plus sources from upstream and downstream processes, for example in connection with landside access traffic, energy production and goods procurement. At more than 99%, the vast majority of all greenhouse gas emissions, including those generated along the entire value chain, are attributed to Scope 3.

Approach and progress

Governance

As one of the five material sustainability topics, climate is part of the Zurich Airport Group’s strategic focus and is therefore included as a sub-section of the overall sustainability governance system. The Board of Directors has primary responsibility for the company’s sustainable practices. At least once a year, it is informed of the current status of the climate programme and decides on strategic aspects relating to sustainability matters. It is also in charge of overseeing risk management, which includes climate risks. Once a year, the Board of Directors receives a general risk report from the Management Board. As a committee of the Board of Directors, the Audit & Finance Committee is in charge of sustainability reporting, and thus also of climate reporting.

The Management Board is responsible for implementing the sustainability strategy. It agrees on targets and plans of action, and focuses on climate matters during the annual management review on sustainability. Furthermore, the Management Board and Board of Directors are notified of climate matters in relation to credit applications or general situation assessments. On the Management Board, the topic of sustainability and therefore climate is assigned to the Chief Financial Officer (CFO). He chairs the ESG Steering Committee, which coordinates the sustainability topics throughout the company, with climate being one of the 15 sustainability topics. He is also the Chief Risk Officer and, as line manager for the department of Sustainability & Environment– the central point of coordination for climate topics – he is in charge of climate-related risks and opportunities in Zurich (risk owner). The responsibility for climate-related risks and opportunities of the international Group locations lies with the Managing Director of Zurich Airport International, who is also a member of the Management Board.

Climate strategy

As the Zurich Airport Group is affected directly by the longer-term changes in climate patterns, this also influences its strategy. While the company has long understood the need to transition to a low-carbon economy, and has reduced its own greenhouse gas emissions in Zurich by approximately 50% since 1991, the risks to its business activities and relevant strategies to adapt to the changing climate are gaining ever greater focus.

In the years 2023 and 2024, Zurich Airport Group identified its climate-related risks and transition risks throughout the Group and evaluated them at its sites in Switzerland, Brazil, Chile and India for the monitoring periods of 2040 and 2050+ as well as the emission scenarios (Representative Concentration Pathways, RCP) RCP2.6 and RCP8.5 of the Intergovernmental Panel on Climate Change. The time horizons have been aligned depending on the location to the transition plan, the life cycle of the infrastructure and the licence period for each airport. Handling direct physical events that can occur at any time is already part of the company’s day-to-day business.

Physical risks at the Zurich site

At the sites in Brazil, Chile and India, alongside Zurich, additional physical risks have been identified: First, rising sea levels and the related risk of more frequent flooding for the airport (in Macaé, which is only a few meters above sea level). Second, longer periods of drought and related water shortages (Vitória, Natal, Antofagasta, Iquique, Noida) as well as dust formation (Noida). Third, wildfires due to drought near the airports that disturb air quality, affect the airport complex or interfere with flight operations due to smoke formation (airports in Brazil).

Climate resilience

To handle the physical risks identified, Zurich Airport Group has identified four areas of action:

Climate events based on the current, country-specific climate scenarios have already been factored into the planning and implementation of plans (especially for extensive infrastructure projects). Examples include the use of resistant materials and changes in dimensions for renovated or newly constructed buildings and installations. To be able to manage the negative impact of climate change in daily operations, Zurich Airport Ltd. reviews technological innovations for their suitability, and develops concepts for intervention. Increased monitoring is used to track and analyse direct and indirect climate-related events, with the findings being taken into account when planning subsequent changes.

Transition risks

Opportunities

Apart from the risks, climate change and the related transition to a low-carbon economy also offer opportunities for Zurich Airport Group. In addition to saving operating costs with energy efficiency and substitution measures, as well as possible reductions in the heating requirements in winter, these opportunities will particularly include opening up new markets and sustainable development of the airport’s infrastructure. Furthermore, by taking the appropriate measures, general resilience will be boosted and future changes will be managed more effectively.

Net zero transition plan

The previous transition plan, which sets out the transition to a low-carbon economy for the Zurich site, was further developed and specified in more detail in the reporting year. The defined roadmap is in line with the objectives of the Paris Agreement and is compatible with Swiss climate targets. It aims to achieve net zero greenhouse gas emissions by 2040 (Scope 1 and Scope 2) at all sites. As part of this process, the company has decided not to purchase any offset certificates at all. Indeed, net zero means that the remaining greenhouse gas emissions caused by humans have to be removed from the atmosphere, resulting in a zero balance. In other words: any enterprise that continues to emit greenhouse gases must also ensure that the same amount is removed from the atmosphere for a certain period of time. As an interim target, the company is aiming to reduce its annual greenhouse gas emissions at the Zurich site to just 20,000 tonnes by 2030. To help it meet these targets, the company has drawn up a step-by step reduction roadmap.

The “2040 master plan for energy and decarbonisation of real estate” adopted in the reporting year makes the greatest contribution to reducing Scope 1 greenhouse gas emissions. For one thing, this includes various measures to reduce the demand for heating, cooling and electrical energy at the Zurich site. For another, it provides for switching the method of energy provision to non-fossil alternatives. At present, the biggest contributor to Scope 1 emissions is the airport’s own combined heat and power generation plant, which both produces electricity for the airport and distributes heat over a district heating grid. Although the plant is operated efficiently with natural gas or fuel oil, it nevertheless emits a considerable amount of greenhouse gases. The switch to non-fossil fuels should start making a significant contribution to reducing the remaining greenhouse gas emissions by 2035 at the latest.

By optimising its systems and renovating existing buildings to improve energy performance, Zurich Airport Ltd. is increasing the energy efficiency of the Zurich site from year to year. When it comes to making the switch to a fossil-free heat supply, the focus is on three projects: seasonal energy storage, the central energy center, and consumer adaptation to a low-temperature grid. From 2027, a glacial channel at a depth of around 300 metres is scheduled to be used as a seasonal thermal storage facility to meet part of the heating and cooling requirements in the main airport complex. The suitability of this thermal storage facility is currently being examined. A test well built in the reporting year was able to provide further insights into the condition of the subsoil and the water and the viability of the project. Linked to this project is the construction of the central energy center which, as a heat pump/cooling unit energy plant, will constitute the link between the seasonal storage facilities and the consumers that have been adapted to the low-temperature grid. One main feature of the latter is the new Dock A, which is scheduled to be built starting in 2030. Much of the airport infrastructure, including Dock E, the Circle and parts of the maintenance area, is already being supplied with heating and cooling via the underground energy source. The Circle operates almost entirely without fossil fuels and has been certified with the LEED Platinum sustainability label as well as the Minergie quality label.

Zurich Airport Ltd. produces electricity all year round via its photovoltaic systems and, in winter, with its heating plant. During the reporting year a new photovoltaic installation was placed into service at the maintenance area. It plans to expand its photovoltaic systems over the next few years. The airport also sources low-emission electricity from the local grid operator throughout the year to cover its full electricity requirements.

Besides buildings, vehicles are also a significant source of greenhouse gases. The transition to electric vehicles, which has been under way for some years already, continued during the reporting year. The reduction roadmap outlines the transition to electric vehicles as far as possible. One milestone in the reporting year was the procurement of three electric waste collection vehicles to replace the gas-powered ones that had been used up to that point. The increase in the number of battery-powered vehicles is linked to the ongoing expansion of the charging infrastructure. In the reporting year, 76 new charging points for the vehicles of Zurich Airport Ltd. and its airport partners entered into operation.

Airport Carbon Accreditation

Three of the airports with majority ownership in Brazil – Florianópolis, Vitória and Macaé – have Level 2 accreditation. This means they are continually reducing their greenhouse gas emissions every year. In the reporting year, preparations were made for Level 4 accreditation, which is expected for 2025. Natal Airport, which was only added to the portfolio at the beginning of the reporting year, is also set to be accredited, as is Noida Airport, India, which is currently under construction.

Large-scale consumers agreement

An important energy management target is the large-scale consumer agreement that Zurich Airport Ltd. has concluded at the Zurich site with the Building Department of the Canton of Zurich. Under the terms of the agreement, the company undertakes to ensure an average annual efficiency increase of 2% until 2030, as measured by the airport’s heated area and the number of user units (passengers, freight, other visitors). In return it is exempted from implementing some specific cantonal regulations. The target for specific energy consumption was met in the reporting period.

Energy and climate leader

Through its participation in the Swiss Confederation’s Exemplary Energy and Climate initiative, Zurich Airport Ltd. is underscoring its ambition at the Zurich site to play a pioneering role in climate protection and energy. As a participant in the initiative, it is taking specific measures to increase energy efficiency, expand the use of renewable energies and reduce greenhouse gas emissions.

Partners

An airport cannot be sustainable without the involvement of other companies at the airport, which account for a large proportion of Scope 3 emissions. The Zurich Airport Group actively encourages its airport partners to make significant cuts to their emissions as well. The expansion of the necessary charging infrastructure for electrically powered vehicles and machines is one of several measures implemented at the Zurich site. Installing ground power systems to supply electrical power and air conditioning at stands so aircraft do not need to use their auxiliary power units is another. This will greatly reduce aircraft greenhouse gas emissions as aircraft are obliged to use the ground power systems and are only permitted to use auxiliary power units shortly before starting their engines. As a beneficial side effect, it also helps to significantly reduce noise and pollutant emissions. The same type of fixed ground power systems for supplying electrical power and air conditioning to the aircraft also entered into operation at all aircraft parking stands at the Florianópolis, Vitória and Natal airports in Brazil.

Sustainable aviation fuels

The switch to alternative and sustainable aviation fuels (SAF), which account for by far the largest proportion of Scope 3 emissions at Zurich Airport Ltd., is an important pillar for reducing greenhouse gas emissions generated through aviation. In its role as a competence center for its partners at Zurich Airport, throughout Switzerland and at its sites abroad, Zurich Airport Ltd. supports the efforts of airlines to increase the proportion of SAF in the fuels that they use. It also supports political endeavours in Switzerland aimed at a blend ratio harmonised with the EU.

One reflection of Zurich Airport Ltd.’s support for SAF is in an agreement with Synhelion SA, which uses a new technology to produce synthetic fuel from water, CO₂ and solar energy that can be employed in both aircraft and vehicles. In the reporting year, Synhelion put the first industrial demonstration plant for the production of renewable solar fuel into operation in Jülich, Germany. Zurich Airport Ltd. has entered into an agreement for the future purchase of synthetic diesel for its large vehicles.

Sites abroad

The Group-wide net-zero target by 2040 also applies to sites abroad with majority holdings. In Brazil, for example, the vehicle fleet has been fuelled with bioethanol since the start of the reporting year, which has reduced CO₂ emissions, as have various energy efficiency measures (transition plan). In India, where Noida Airport is under construction, the intention is to reduce greenhouse gases to net zero already by 2030. Various feasibility studies are being conducted to identify what action needs to be taken, and a transition plan will be drawn up when operations commence in the 2025 financial year.

Climate risk management

The climate-related risks and opportunities for the Zurich Airport Group were determined for the individual sites as part of various climate impact assessments and assessed in terms of probability of occurrence and potential impacts. This assessment was largely qualitative, based on an extensive consultation process with experts from the business divisions in question. The current Swiss climate scenarios served as the basis at the Zurich site, while the corresponding national bases served the same purposes in Brazil and Chile. At the Noida site in India, a detailed risk analysis is scheduled to be carried out after the site’s commissioning in 2025. The risk assessment was based on the framework from the general risk management provisions of the Zurich Airport Group. In future, the identification and assessment of climate-related risks will be incorporated into the company-wide risk management tool and into an integrated risk report submitted to the Executive Board and the Board of Directors.

The line units are responsible for addressing climate-related risks, which is why each risk is assigned to a responsible department. As the risk owner, the head of division decides on the implementation of suitable adaptation measures, all of which were systematically recorded in an adaptation plan in the reporting year (see Climate resilience). Numerous measures have been taken over many years to reduce greenhouse gas emissions (see Transition plan). They are implemented by the relevant line units.

Situation in the reporting year

At the Zurich site demand for heat generated was slightly higher during the reporting year than in the previous year. One significant reason for this was the failure of a major system for waste heat utilisation, which could not be offset with savings elsewhere, and by contrast had to be made up for with heat from the heating plant. On the other hand, it was possible to increase the renewable portion of thermal energy. This was possible first of all due to the commissioning of the renewable energy system in Dock E, where heat pumps now supply more energy. Secondly, following a yearʼs interruption, the company purchased once again a share of biogas for the heating plant. Demand for electricity was at the same level as in the previous year. The portion of renewable energy rose further here too, thanks to the increase in the quantity of renewable electricity purchased.

The increased heat production resulted in slightly higher greenhouse gas emissions. However, as emissions were cut elsewhere at the same time, specifically in relation to motor vehicles, Scope 1 emissions overall declined slightly. As a result, the quantity of Scope 1 and 2 greenhouse gas emissions was lower than the previous year.

Key data

Greenhouse gas emissions

Energy