Coming out of the COVID-19 pandemic, AAX made a lot of headway in its ESG disclosures. AAX also reported Scope 3 CO2 emissions, ontime performance, net promoter score, customer satisfaction score, employee attrition rate and training hours per employee for the first time postCOVID. Maybank Investment Bank has raised its ESG 2.0 score for AAX to 57/100 (slightly above average; based on disclosures in its FY23 Annual and Corporate Governance Reports) from 39/100.

'E' – emissions rising but intensity declining
In FY23, Scope 1 CO2 emissions surged 414% YoY to 960,280 tonnes as more aircraft returned to service post-COVID. That said, Scope 1 emissions intensity, which we believe is a better gauge as it measures overall flight efficiency, fell 32% YoY to only 61 gCO2/available seat kilometer (ASK) due to longer average flight times. Kudos also to AAX for reporting Scope 3
emissions for the first time post-COVID.

'S' – a lot of improvements here
The percentage of women in its workforce improved to 48% (+4 ppts YoY) in FY23. AAX also reported ontime performance, net promoter score, customer satisfaction score, employee attrition rate and training hours per employee for the first time post-COVID. Recall that these parameters were not reported in the previous annual report as AAX was understandably preoccupied with surviving the COVID-19 pandemic'

G' – still need to appoint more women directors
The number of women directors on AAX's BOD still has not exceeded 1. While it is understandable that women may be under-represented in its total workforce due to the physical demands of certain roles (e.g. engineering), Maybank said it believes that AAX should appoint more women to its BOD. Malaysian Code on Corporate Governance recommends that companies have ≥30% women directors on their BOD.