Cebu Pacific Achieves ‘AA’ ESG Rating, Ranks Among World’s Leading Airlines for Sustainability

Cebu Pacific (PSE: CEB), the Philippines’ leading carrier, has set another milestone in sustainable aviation. It has earned an ‘AA’ rating from MSCI ESG Ratings, a distinction no other local airline has achieved. This achievement places CEB among the top carriers worldwide in managing environmental, social, and governance (ESG) risks and opportunities.

MSCI ESG Ratings evaluate public and private companies based on their exposure to ESG risks and how effectively they manage them, using a scale ranging from AAA (leader) to CCC (laggard). An ‘AA’ rating signifies strong performance in managing industry-specific risks compared to peers. 

“Our commitment has always been to operate in a responsible and sustainable way. This upgraded rating reflects our progress in addressing environmental, social, and governance challenges. By adopting innovative practices, such as operating high-density, fuel-efficient aircraft, we are not only reducing carbon emissions but also achieving the lowest carbon burn per seat, offering our passengers a more sustainable travel experience. All these initiatives are part of our comprehensive effort to advance a sustainable aviation industry,” said Xander Lao, CEB President and Chief Commercial Officer.

In 2023, CEB received an ‘A’ rating from MSCI. This year’s upgrade to ‘AA’ is a testament to the airline’s unwavering commitment to sustainability. For instance, CEB has made notable strides in reducing its environmental impact, ranking in the top quartile among its peers for carbon emissions management. By operating a fleet with an average age of just six years—significantly younger than the industry average of nine years—CEB has effectively improved fuel efficiency and reduced carbon emissions.

Beyond its environmental initiatives, CEB has also excelled in social performance metrics, particularly in implementing robust data privacy measures and enhancing labor management practices. The airline consistently ranks highly in these areas, supported by strong employee engagement programs and compliance with international safety standards, such as the IATA Operational Safety Audit (IOSA).

On the governance front, CEB earned recognition for its strong policies against bribery and corruption and its comprehensive governance frameworks that ensure ethical business practices. These measures reflect a deep commitment to good corporate governance and responsible corporate behavior.

As one of only two companies in the Philippines to achieve an ‘AA’ rating, CEB is committed to building on this momentum by further improving its sustainability initiatives and governance frameworks. The airline is also dedicated to enhancing its practices to maintain its leadership in ESG performance, fostering long-term success and resilience in its operations.