ANNOUNCEMENTS
The aviation industry plays a crucial role in driving global economic growth, but it's increasingly facing scrutiny over its environmental and social impacts. This thesis takes a closer look at how IndiGo Airlines is navigating its sustainability journey through the lens of Environmental, Social, and Governance (ESG) performance. It compares IndiGo with major international airlines like EVA Air, ANA (Japan), United Airlines, Delta, and Lufthansa. By employing a comparative case study approach and a mix of qualitative and quantitative methods, the research dives into ESG metrics and disclosures from well-respected frameworks such as MSCI ESG Ratings, the S&P Dow Jones Sustainability Index (DJSI), and Sustainalytics.
The analysis focuses on key ESG performance indicators across three main areas: environmental performance (like CO₂ emissions per available seat kilometer, sustainable aviation fuel usage, and fleet modernization), social metrics (including employee turnover, human rights considerations, and supplier assessments), and governance practices (such as alignment with TCFD, the existence of ESG committees, and net-zero goals). The results show that IndiGo stands out in terms of operational efficiency and emissions intensity, outperforming its global peers in CO₂ emissions per available seat kilometer and fleet age. However, there are significant gaps in its climate strategy, particularly regarding the adoption of sustainable aviation fuel, board-level ESG oversight, and risk disclosures aligned with TCFD guidelines.
IndiGo has made impressive strides, including a formal commitment to achieving net-zero emissions by 2050, the creation of an ESG Task Force, and nearly complete waste recycling efforts. Yet, the gap analysis reveals an urgent need for better strategic ESG integration, improved governance structures, and long-term climate resilience strategies. By utilizing the Long-Term Value Creation (LTVC) model, the research emphasizes that IndiGo's future value in a decarbonizing world will depend not just on its operational performance but also on its ability to transition proactively.
This study ultimately reinforces the notion that ESG plays a crucial role in driving sustainable growth and gaining a competitive edge in the Indian aviation industry. It also provides IndiGo with practical recommendations to align the airline more closely with global ESG standards.
