Cebu Pacific Earns ‘AA’ ESG Rating for Sustainability Leadership

Cebu Pacific (PSE: CEB), the Philippines’ largest airline, has achieved a significant milestone in its commitment to sustainable aviation, securing an ‘AA’ rating from MSCI ESG Ratings. This marks the first time a local airline has earned such a distinction, placing Cebu Pacific among the top global airlines in terms of managing environmental, social, and governance (ESG) risks and opportunities.

The MSCI ESG Ratings system evaluates companies on a scale from AAA (leader) to CCC (laggard), based on their ability to manage industry-specific ESG risks. Cebu Pacific’s ‘AA’ rating signifies strong performance, particularly in environmental and social categories, positioning the airline as a leader among its 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,” said Xander Lao, Cebu Pacific’s President and Chief Commercial Officer. “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.”

Cebu Pacific was previously awarded an ‘A’ rating in 2023, and its latest ‘AA’ rating underscores the airline’s ongoing efforts to enhance its sustainability initiatives. The company has notably excelled in reducing its environmental impact, maintaining one of the youngest fleets in the industry with an average aircraft age of six years—compared to the global industry average of nine years—resulting in better fuel efficiency and lower carbon emissions.

The airline has also demonstrated robust social performance, with strong labor management practices and data privacy measures. Cebu Pacific’s dedication to employee engagement and compliance with international safety standards, such as the IATA Operational Safety Audit (IOSA), further strengthens its standing in the aviation industry.

In terms of governance, Cebu Pacific has implemented comprehensive frameworks to ensure ethical practices, earning recognition for its anti-bribery and anti-corruption policies. These measures highlight the airline’s focus on strong corporate governance and responsible business behavior.

Cebu Pacific is one of only two companies in the Philippines to achieve an ‘AA’ rating from MSCI ESG Ratings. The airline plans to continue enhancing its ESG initiatives, further cementing its leadership in sustainability within the aviation sector.