How Etihad Airways Procurement is Supporting Sustainability
Etihad Airways’ procurement team was awarded "Procurement Team of the Year for a Large Organisation" at the prestigious CIPS MENA Procurement Awards 2024. The awards ceremony, held in Riyadh, celebrated the team's outstanding performance and innovative practices in procurement.
The winning project, titled "Procurement Transformation Journey: From Transactional Process to Strategic Value Delivery," highlights the significant achievements and strategic advancements made by Etihad's procurement team.
The team plays a crucial role in driving cost efficiencies, ensuring supply chain resilience and fostering sustainable procurement practices.
Cassie Mackie, VP Procurement & Supply Chain, said: "I am incredibly proud of our team. Their hard work, resilience and dedication have truly paid off.
“This award reflects our shared commitment to excellence and the values that define Etihad. We are grateful to the CIPS MENA Committee for recognising our efforts with this prestigious award."
Etihad Airways reinforced its commitment to setting high standards in procurement, continually striving to support the financial sustainability of Etihad in a responsible manner.
The Etihad Airways Sourcing & Procurement (S&P) team is responsible for sourcing and managing goods and services for the organisation. This includes things like aircraft fuel, airport and ground handling services, IT contracts and properties and facilities services.
The Chartered Institute of Procurement and Supply is considered the premier global organisation serving the procurement and supply profession.
CIPS is dedicated to promoting best practice within the profession and is the largest provider of specialist courses across all aspects and levels of the supply chain, from the start of a career to senior management level.
Etihad's procurement transformation
Published by Oscar, a SaaS solution in the MENA, automating sustainable procurement for enterprises, on LinkedIn, detailed Etihad Airways' transformation of its sustainable procurement efforts.
Following the devastation of the pandemic, losing US$1.7bn, the airline found itself at a crossroads, needing to address environmental impact.
Etihad implemented sustainable procurement practices within its sustainability efforts, focusing on sourcing from suppliers which aligned with their own sustainability goals. This meant prioritising suppliers which offered eco-friendly products and services, reducing its Scope 3 emissions.
Installing robust performance indicators, a team focused on sustainability worked across departments to create effective solutions, with the clear aim to achieve net-zero emissions by 2050.
In 2021, Etihad collaborated with industry OEMs, launching the Greenliner Programme for Boeing aircraft and the "Sustainability50" programme for Airbus A350s, both aimed at reducing aviation CO2 emissions. The same year, Etihad launched the "Conscious Choices" green loyalty programme, rewarding members for sustainable actions. Etihad also secured a US$1.2bn sustainability-linked loan, the largest in its history, linked to ESG targets.
The procurement plans included focusing on reducing single-use plastics and paper usage, setting lofty targets such as bringing single-use plastic down 80% and paper by 45% by the end of 2022. The airline introduced eco-friendly products, from biodegradable utensils to sustainable amenity kits, significantly reducing its environmental impact.
Its sustainable procurement efforts align with the UN Sustainable Development Goals. The airline's "Al Watani" programme showcases its efforts to support local businesses and integrate them into its global supply chain.
Now, 30% of its supply chain comes from the UAE, not only creating space for local businesses to develop but also creating a more resilient and sustainable supply chain.
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