In addition to addressing our climate impact from flying, it is also important for us to understand and respond to the impact of climate change on our business, including identifying and evaluating climate-related risks and opportunities and ensuring the resilience of our strategy and operations under different climate scenarios.
In this section, we summarize additional aspects of our approach to climate change in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). This section also provides updates on our advocacy related to federal, state and international climate policies.
Climate-Related Governance
Delta works hard to ensure that the opportunities and risks brought about by climate change are handled in a way that is consistent with the company’s overall risk management strategy, governance framework and management practices.
The Board of Directors oversees climate-related matters, including through specific Board Committee responsibilities. The Corporate Governance Committee of the Board oversees our environmental sustainability strategy, goal setting and opportunities and risks, receiving updates on our progress through regular briefings – which occurred twice in 2023. The Audit Committee of the Board reviews our Enterprise Risk Management (ERM) processes, including climate-related risks, and oversees the reporting of environmental matters in our U.S. Securities and Exchange Commission (SEC) filings. The Finance Committee of the Board oversees investments, including acquisition of new, more fuel-efficient aircraft and significant investments in new technologies. The full Board receives briefings as merited on climate-related matters, including updates on relevant risks and opportunities, goals and performance, and key initiatives.
At the management level, climate-related matters are overseen by our EVP – External Affairs, the Chief Sustainability Officer and several key executive-level Councils, including the ESG Council, the Carbon Council, the Waste Council and the Risk Council. Each is composed of members of the Delta Leadership Committee (DLC) as well as other senior executives from across the organization who help to implement our climate strategy and related risk mitigation efforts.
These Councils are supported by cross-functional working teams led by divisional leaders and comprised of core collaborators. The teams prepare topics for education, as well as for discussions and decisions by the Councils, and carry out related actions after each meeting. The working teams drive day-to-day progress across Delta’s sustainability strategy, helping to propel the organization forward through grassroots efforts, which are directed by Council leadership and ultimately overseen by the Board.
Climate Risk Management
Delta’s climate strategy is informed and guided by the ongoing identification and assessment of climate-related risks and opportunities relevant to our business.
To further inform and strengthen our understanding and management of climate-related risks, we conducted an initial climate risk assessment and scenario analysis in 2021. In 2023, we undertook a more detailed assessment incorporating newer research findings, updated modeling and other improvements to enhance our understanding of climate-related risks – physical risks and transition risks – over the short-, medium- and long-term.
The risk assessment process was conducted in alignment with the TCFD framework and included consultation with internal and external stakeholders and subject-matter experts, as well as an extensive review of external research and data sources. Delta’s overall ERM program helps inform how we assess and manage our climate-related risks. For each risk, we considered potential impact, as well as the likelihood and timeframe for the risk to manifest, under multiple emissions scenarios (see Forecast and Scenario Analysis below). Where possible, potential financial impacts were assessed at a high level, with support and input from relevant internal teams. Consistent with the TCFD framework, risks and projected impacts do not factor in mitigation efforts. All risks outlined are speculative in nature, based on both internal and external assumptions and methodologies.
The tables below summarize the results of the updated risk assessment, including the key physical and transition risks identified, their anticipated timelines, potential impacts and related management strategies.
Physical risk assessment
Extended interruptions in service or other disruptions resulting from climate-related physical events – such as extreme weather, flooding and sea-level rise – could have an adverse effect on Delta’s business if not mitigated. To identify and assess these risks, we evaluated the potential impact and likelihood of specific climate-related events occurring at our most strategically important domestic and international airports and other potentially vulnerable locations. Estimated impacts were assessed based on anticipated effects in 2050 under high-, medium- and low-emissions scenarios. Only the high-emissions scenario for physical risks is disclosed in this report due to the limited impact of the low-emissions scenario and Delta’s ability to mitigate them over relevant time horizons.
TRANSITION RISK ASSESSMENT
Transition risks are those driven by potential market, policy and legal, technology and reputational effects arising from the transition to a low-carbon economy. Within our industry, this is likely to include financial and operational challenges related to the transition away from fossil-based jet fuel, possible changes in customer behavior and preferences and potential costs stemming from the regulation and/or pricing of continued GHG emissions.
For our updated analysis, the assessment of specific transition risks differed according to risk type, with several risks being multidimensional in their impact.
Estimated impacts were assessed based on anticipated effects in 2050 under high- and low-emissions scenarios. For transition risks, only the emissions scenario with the highest potential impact to Delta is disclosed in this report.
FORECAST AND SCENARIO ANALYSIS
Scenario analysis helps us better understand and make strategic decisions in response to different possible climate futures. 1 Given the differing nature of physical and transition risks, we have used different scenarios for each type. For physical risk analysis, we used the Representative Concentration Pathway (RCP) scenarios developed by the Intergovernmental Panel on Climate Change (IPCC). For transition risk analysis, we used scenarios from the International Energy Agency’s (IEA) World Energy Outlook (WEO) 2023.
| PHYSICAL RISK | TRANSITION RISK | |
|---|---|---|
| Low-Emissions Scenario | RCP 2.6 | IEA Net-Zero Emissions by 2050 (NZE) |
| Projected warming by 2100 | 0.9–2.3°C | 1.5°C |
| Medium-Emissions Scenario | RCP 4.5 | Delta projections and IEA Announced Pledges Scenario (APS) |
| Projected warming by 2100 | 2–3°C | 1.7°C |
| High-Emissions Scenario | RCP 8.5 | IEA Stated Policies Scenario (STEPS) |
| Projected warming by 2100 | 3.2–5.4°C | 2.4°C |
- Climate-related scenario analysis involves assessing potential future developments under different climate scenarios. However, uncertainties and limitations in available data and scenario projections make this process complex, imprecise and subject to change – particularly as public policy, technology, customer preferences and other factors continue to rapidly evolve. We aim to continue evolving and updating our analysis as new information, data and analytical tools become available.
Analysis of Climate-Related Physical Risks
Risk
Extreme weather events 1
說明
Increasing frequency and intensity of extreme weather events, such as hurricanes or typhoons, may lead to infrastructure damage and/or delays or cancellations of service at affected airports.
Additionally, events such as hurricanes in the Gulf of Mexico could lead to disruptions in our fuel supply chain and operations. These disruptions may result in increased fuel costs, increased costs in handling irregular operations or decreases in revenue.
TIME HORIZON
POTENTIAL IMPACT 2 (RCP 8.5)
RISK MITIGATION AND GOVERNANCE STRATEGIES
Delta’s in-house Meteorology team continuously monitors changing weather conditions and forecasts and works together with our Operations and Customer Center (OCC) and other internal teams to adapt our operations as necessary. This includes creating and distributing station-specific forecasts, evaluating potential impacts on flight safety and scheduling, coordinating with airport authorities and more.
Our Airport Customer Service (ACS) Emergency Response Plan includes required training and other preseason preparations, as well as detailed procedures and checklists for before, during and after a severe weather event. Key station activities include inspecting and preparing vital equipment, stocking emergency equipment and supplies, monitoring weather conditions and forecasts, and coordinating with OCC’s Strategic Planning team and the ACS Emergency Preparation & Response team to address any acute needs as they arise. The Delta Notification System is also activated to check on employees and ensure their safety and wellbeing before and after the event.
Risk
Acute flooding
說明
Intense precipitation increases the risk of rapid-onset floods and flash floods in certain locations. Flooding events may cause loss of Delta’s assets or affect Delta’s ability to operate in these locations, which could in turn lead to loss of revenue.
TIME HORIZON
POTENTIAL IMPACT 2 (RCP 8.5)
RISK MITIGATION AND GOVERNANCE STRATEGIES
We continue to work both internally and with our airport partners to address the risk of flooding to infrastructure. For example, Delta’s new terminal at LaGuardia Airport has been designed and constructed to meet the Port Authority of New York and New Jersey’s Climate Resilience Design Guidelines, which exceed federal, state and local standards for addressing climate-related risks. Design elements include dry-floodproofing of low-level occupied areas and ensuring all critical infrastructure is above the Design Flood Elevation established by the Guidelines. Additionally, the Port Authority is planning for – and has already undertaken – multiple initiatives to reinforce and improve existing airport infrastructure, including pump systems to protect the airfield from flooding.
Risk
Increased temperature (extreme heat)
說明
Extreme heat events may reduce aircraft performance, disrupt navigational signals and satellite coverage, increase energy consumption for cooling and pose risks to employees who work outdoors.
TIME HORIZON
POTENTIAL IMPACT 2 (RCP 8.5)
RISK MITIGATION AND GOVERNANCE STRATEGIES
We continue to monitor temperatures at our hubs and enhance our approach to managing the impact of extreme heat on our operations. This includes working with aircraft manufacturers to evaluate and improve the safety of our aircraft under these conditions. We are also adapting our strategies for payload optimization on high-heat days – for example, by implementing more aggressive and predictable seat capping measures – in order to minimize impacts on customers and revenues.
We require all ground employees to complete training to help recognize the signs and symptoms of heat stress and heat stroke. We comply with breathability standards to ensure our employee uniforms function well in the heat. On high heat days, we offer a range of additional services including water stations and cooling towels to keep our employees safe and comfortable.
In 2024, we are expanding our temperature alert system to include heat, so that local stations can be alerted of hot weather conditions. These alerts will help teams enact their hot weather plans to prepare employees and ground support equipment, and to ensure cool temperatures onboard aircraft.
Risk
Sea-level rise
說明
Sea-level rise could lead to permanent inundation of low-lying infrastructure at some airports, which would result in disruptions to Delta’s business and operations.
TIME HORIZON
POTENTIAL IMPACT 2 (RCP 8.5)
RISK MITIGATION AND GOVERNANCE STRATEGIES
Our partners at vulnerable airports continue to take a variety of steps to address risks related to rising sea levels. For example, the Port Authority of New York and New Jersey has already completed a $2.3B Hurricane Sandy recovery and hardening program at LaGuardia Airport and has recently undertaken an updated climate risk assessment that will prioritize future mitigation projects, including for sea-level rise.
Time Horizons:
Potential Impact:
- We also considered risks related to extreme winter storms and large-scale changes in wind and weather patterns, but their impact on Delta’s operations are currently assessed as negligible.
- Based on potential impact under high emissions scenario (RCP 8.5). Potential financial impacts were assessed at a high level, with support and input from relevant internal teams and informed by Delta’s ERM framework.
Analysis of Climate-Related Transition Risks
Risk
Uncertainty of future supply of fossil jet fuel
Risk type
Technology, Market, Policy/Legal
說明
The availability of fossil jet fuel could be impacted due to national and global climate policies, as well as by changes in global economic conditions, geopolitical events, available technology or other factors. Fuel supply disruptions may result in higher costs or operational challenges.
TIME HORIZON
POTENTIAL IMPACT 3 (NZE/STEPS Scenario)
RISK MITIGATION AND GOVERNANCE STRATEGIES
Delta’s strategy for mitigating cost and supply risks associated with jet fuel includes our ownership of Monroe Energy, LLC (Monroe) and its operation of the Trainer Refinery in Pennsylvania. Our ownership of Monroe is part of our strategy to mitigate the cost of the refining margin reflected in the price of jet fuel.
As part of this strategy, we continue to engage proactively with policymakers and regulators on behalf of both Delta and Monroe, to advocate for climate policies that do not unreasonably impact the existing market for jet fuel. For more information, see Climate Lobbying.
In addition, our fleet renewal and fuel savings strategies continue to deliver incremental improvement in fuel efficiency, helping to reduce our exposure to cost and supply risks associated with jet fuel. For more information, see Efficient Aircraft Operations and more on Fleet Renewal on our report site.
Risk
Uncertainty of future SAF availability and cost-competitiveness
Risk type
Technology, Market, Policy/Legal
說明
At present, there isn’t enough annual production of SAF to cover even one week of global airline demand.
Additionally, the future availability and price of SAF are highly uncertain and dependent on numerous factors, including public and private investment, supportive policy, technology development and broader economic conditions – many of which may not develop as expected. If future supply is insufficient, we may fail to meet our emissions goals, which could result in negative impacts on our reputation, market share and revenues. Even if future demand for SAF can be met, prices could remain elevated in comparison to traditional jet fuel, resulting in increased costs.
Reputational and policy risks associated with potential competition between conventional biofuels and food sources were also considered but were assessed as negligible.
TIME HORIZON
POTENTIAL IMPACT 3 (NZE/STEPS Scenario)
RISK MITIGATION AND GOVERNANCE STRATEGIES
We continue to actively engage with our industry, supply chain, investors, policymakers and other stakeholders to help support technological development and scale the nascent market for SAF. This includes making forward supply commitments, forming coalitions such as the Minnesota SAF Hub and advocating for supportive policies. For more information, see Cleaner Fuel and Climate Lobbying.
Risk
Policy/legal risks associated with carbon pricing and other regulatory requirements that increase operating costs
Risk type
Policy/Legal
說明
Existing or emerging policies and regulations designed to place a price on carbon emissions may lead to increased operating costs. These costs may be more significant if imposed in the medium term versus the long-term as our emissions decline in a net-zero scenario.
TIME HORIZON
POTENTIAL IMPACT 3 (NZE/STEPS Scenario)
說明
Policies and regulations to mitigate climate change could potentially include measures such as restrictions on short-haul flights in certain markets, which could result in increased costs and/or decreased revenues for Delta.
TIME HORIZON
POTENTIAL IMPACT 3 (NZE/STEPS Scenario)
RISK MITIGATION AND GOVERNANCE STRATEGIES
We continuously monitor emerging policies and regulations to understand potential risks and opportunities and prepare our business accordingly. Our Government Affairs team, in coordination with our Sustainability team and Law Department, drives awareness and coordination of responses as new policies and regulations are proposed.
In addition, Delta engages proactively with policymakers and regulators through both direct lobbying and involvement in industry trade associations, including A4A and the International Air Transport Association (IATA). Our Climate Lobbying Principles include a focus on measures that will enable the orderly and efficient transition of this hard-to-abate sector, as opposed to punitive measures that may stifle investment in needed technologies or otherwise restrict flexibility to achieve transition objectives. For more information, see Climate Lobbying.
Risk
Behavioral changes and development of alternative transportation modes lead to reduced demand in air travel
Risk type
Market
說明
Business air travel could decline or recover at slower rates due the increased use of alternatives such as virtual meetings or events. Demand for flying may also be reduced due to growing climate concerns and/or the availability of lower-carbon alternatives such as high-speed rail in certain regions, which could result in decreased revenues.
TIME HORIZON
POTENTIAL IMPACT 3 (NZE/STEPS Scenario)
RISK MITIGATION AND GOVERNANCE STRATEGIES
We understand that climate change impacts from air travel are an increasing concern for our customers. Our science-based emissions targets and other climate-related goals are designed to drive progress toward our goal of net-zero emissions by 2050 while still providing safe and reliable transport for our customers.
We also engage our corporate customers on sustainability by providing emissions data regarding their travel, along with opportunities to invest in SAF together to address our shared Scope 1 (Delta) and Scope 3 (our customers) emissions using an in-sector solution.
Risk
Lack of technology advancements to meet the need for revolutionary fleet 4
Risk type
Technology/ Market
說明
Our ability to continue to improve fuel efficiency and carbon intensity of our fleet is dependent on the cost and availability of necessary technologies, which in turn are dependent on investment, supportive policies, supply of raw materials and other complex factors. If needed advancements are delayed or not fully realized, or if the price of new technologies proves too prohibitive, we may incur additional costs and/or fail to meet our emissions goals, which could negatively impact our reputation, market share and revenues.
TIME HORIZON
POTENTIAL IMPACT 3 (NZE/STEPS Scenario)
RISK MITIGATION AND GOVERNANCE STRATEGIES
Delta’s Revolutionary Fleet strategy includes a focus on early-stage technology development to help commercialize new innovations to power the future the flight. This includes our participation in Airbus’ ZEROe hydrogen-powered aircraft initiative and Boeing and NASA’s Sustainable Flight Demonstrator Project. For more information, see Revolutionary Fleet.
Time Horizons:
Potential Impact:
- Based on scenario with the largest potential financial impact. Potential financial impacts were assessed at a high level, with support and input from relevant internal teams and informed by Delta’s ERM framework.
- Risk was not quantitatively assessed, and that the range of ‘low to medium’ is based on a qualitative understanding.
GHG EMISSIONS INVENTORY
Our GHG inventory covers emissions from all operations under Delta’s operational control, including Endeavor, Delta Vacations, Delta Material Services and Delta Flight Products. Emissions from Delta’s wholly owned subsidiary Monroe Energy are excluded, except to the extent they fall into our Scope 3 emissions (see sidebar).
As part of our efforts to both report transparently and drive progress internally, we continue to look for opportunities to improve the accuracy and extent of our GHG inventory. In 2023, we identified an opportunity to improve reporting of Scope 3 emissions through the inclusion of upstream production of jet fuel combusted by non-wholly owned regional airlines. As a result, we have restated prior years’ reporting of Scope 3 Category 3 emissions and updated our 2019 baseline accordingly.
SCIENCE-BASED TARGETS
Delta has established medium- and long-term climate goals that are in line with the Paris Agreement and the applicable guidance of SBTi. Our overarching goal is to achieve net-zero emissions for our airline operations by 2050.
In 2022, SBTi validated Delta’s medium-term target to reduce well-to-wake Scope 1 and 3 jet fuel GHG emissions by 45% per revenue ton kilometer by 2035 from a 2019 base year. 1 This indicates that the adopted Scope 1 and 3 target ambitions align with the Paris Agreement’s goal of limiting global warming to well below 2°C above pre-industrial levels.
Validation of our 2050 net-zero goal has been pending while we await updated SBTi guidance for setting aviation sector targets aligned with limiting warming to 1.5°C. That guidance has been significantly delayed. We will be re-evaluating with SBTi whether we can continue to wait for that guidance or whether we must withdraw and reapply for validation once the guidance has been issued.
OTHER CLIMATE-RELATED TARGETS
As noted throughout this section, we are also pursuing a range of other targets on our glide path to net-zero emissions by 2050, which are summarized in the Our Sustainability Targets table.
Delta’s GHG emissions inventory is calculated and verified in accordance with the GHG Protocol, which aligns with the SBTi framework.
More detailed figures are provided on the Historical Emissions Data page and our verification statement is available on the Emissions Verification page.
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SCOPE 1
Consists of all direct emissions generated by Delta’s operations, including the combustion of jet fuel and SAF by Delta mainline aircraft and wholly owned subsidiaries, fuel use for ground support equipment and other ground operations, and chemical use.
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SCOPE 2
Consists of GHG emissions resulting from the generation of electricity, heat or steam purchased by Delta in owned and leased facilities, such as airport spaces.
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SCOPE 3
In 2023, we expanded the Scope 3 emissions categories we calculate and report. It now consists of indirect emissions from purchased goods and services; capital goods; upstream transportation; well-to-wake GHG emissions from jet fuel from Delta Connection carriers 1 that we do not wholly own; emissions from jet fuel and SAF production from our suppliers, including Monroe; business travel; employee commuting; and investments (Categories 1, 2, 3, 4, 6, 7 and 15).
OUR MEDIUM-TERM
SBTI-VALIDATED TARGET
Reduce jet fuel-related GHG emissions intensity 45% by 2035 2
進度
3.2% reduction in 2023
GHG Emissions Inventory (mT CO2e)
| 2019 (baseline) | 2021 | 2022 | 2023 | |
|---|---|---|---|---|
| Scope 1 Total | 37,328,421 | 24,561,256 | 30,741,000 | 35,891,842 |
| Scope 2 Total | 295,889 | 246,219 | 203,486 | 188,387 |
| Scope 3 Calculated3 | 10,946,766 | 7,289,033 | 12,299,299 | 17,192,226 |
| SUM OF EMISSIONS | 48,571,076 | 32,096,508 | 43,243,785 | 53,272,455 |
Climate Lobbying
As part of the highly regulated global aviation industry, we advocate for thoughtful, harmonized policies that will help us achieve our climate goals. This includes engaging with policymakers, regulators, academics and thought leaders involved in developing and advancing relevant policies – especially those intended to commercialize the burgeoning SAF industry and support breakthrough innovations in flight.
OVERSIGHT AND COORDINATION
Delta’s climate policy development efforts are led by the Vice President, Government Affairs – Sustainability, based in Washington, D.C., who reports to our Senior Vice President, Government Affairs. This leadership position is responsible for cross-functional collaboration with applicable business units, in partnership with our Chief Sustainability Officer, as well as coordination with lobbyists across our Federal, International, and State and Local Government Affairs teams, to help foster a policy environment that will enable Delta’s net-zero climate objectives. In addition to our in-house lobbyists and business partners, we constructively engage with trade associations and collaborate with climate policy thought leaders, such as environmental non-governmental organizations, think tanks and coalitions.
CLIMATE POLICY PRIORITIES
In 2023, we prioritized our advocacy on implementing and advancing policies needed to scale SAF deployment in the United States and internationally. Delta believes that performance-based, feedstock- and technology-neutral incentives coupled with grant and loan guarantee programs are the primary policy levers needed to drive investment toward development of cost-competitive SAF.
Delta’s federal advocacy and engagement efforts are largely centered on: (1) implementing the SAF-specific provisions established under the Inflation Reduction Act, (2) ensuring that domestic agriculture can benefit from the development of a SAF market in the United States and (3) building out the first national value chain coalition, Americans for Clean Aviation Fuelsopens in a new window, to educate the public on the economic and energy security benefits associated with a strong domestic SAF market. We also continue to support Monroe’s Trainer Refinery in Pennsylvania, in efforts to seek reforms to certain elements of the Renewable Fuel Standard program, in order to reduce their financial obligations while enabling investment in alternative fuels.
State-level policies are also critical for enhancing our ability to scale cost-competitive SAF, building upon the foundation provided by the new federal incentives. To that end, we have supported the enactment and implementation of new SAF-specific tax credits benefiting key Delta hubs in Minnesota, Washington as well as our operations in Illinois. We have also advanced foundational policy support for new tax credits, low-carbon fuel standards, and research and development studies in Michigan, New York, Massachusetts and Georgia. In order to capitalize on the incentive in Minnesota, for example, Delta led the creation of the Minnesota SAF Hub, a first-of-its-kind value chain coalition to scale SAF investment to meet fuel demand at our MSP hub. We believe this policy and investment model is key to enabling commercial aviation’s net-zero goals. For more information on the Minnesota SAF Hub, see the Collaborating to Form the Minnesota SAF Hub highlight.
Internationally, our policy advocacy efforts were focused in the European Union (EU), United Kingdom (UK), Latin America and East Asia. As SAF becomes a rising priority for global markets, we continue to highlight the need for individual countries to pursue a whole-of-government approach to scaling SAF production, similar to the U.S. government’s SAF Grand Challenge Roadmap strategy, coupled with a general assertion that incentive-based policies are most critical for catalyzing new SAF markets and driving down the green premium. For example, we advocated for the adoption of SAF incentives as part of finalizing the ReFuelEU initiative, and to initiate a consultation on the proposed UK SAF mandate.
TRADE ASSOCIATIONS
In addition to direct lobbying activities, we are members of sector-specific and multi-industry trade associations that engage in lobbying on a variety of matters, including climate change. We believe in the power of direct engagement and periodically assess the alignment of Delta and Monroe’s trade associations’ climate change positions with our own. Our assessment methodology is based on whether the trade association has a stated position that supports the achievement of net-zero emissions by 2050, consistent with the findings of the IPCC, coupled with analysis of specific lobbying activities. In 2023, we assessed the activities of key associations, including IATA, A4A, the Business Roundtable and American Fuel and Petrochemical Manufacturers.
Delta strives to develop policies, strategies and coalitions to advance our climate and sustainability goals. For more insights on specific efforts and details on alignment with our trade associations, please see the Appendix.