SMBC Aviation Capital launched a sustainability solution for its airline customers, including an initial $53.3 million investment in high quality carbon credit programs 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 program to help airlines execute on their CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation Carbon Offsetting and Reduction Scheme for International Aviation) commitments.
This program 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.