How New Corporate Environmental Standards Will Impact Airports (2023)

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ACRP Web-Only Document 58 How New Corporate Environmental Standards Will Impact Airports Sara Kaplan Katherine Preston Jessica Wingen HMMH Burlington, MA David Y. Bannard Brandon Rattiner Kaplan Kirsch and Rockwell Boston, MA and Denver, CO White Paper for ACRP Project 11-09/Topic 1 Submitted September 2023 © 2023 by the National Academy of Sciences. National Academies of Sciences, Engineering, and Medicine and the graphical logo are trademarks of the National Academy of Sciences. All rights reserved. ACKNOWLEDGMENT This work was sponsored by the Federal Aviation Administration (FAA). It was conducted through the Airport Cooperative Research Program (ACRP), which is administered by the Transportation Research Board (TRB) of the National Academies of Sciences, Engineering, and Medicine. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, APTA, FAA, FHWA, FTA, GHSA, or NHTSA endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. DISCLAIMER The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research. They are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; or the program sponsors. The Transportation Research Board does not develop, issue, or publish standards or specifications. The Transportation Research Board manages applied research projects which provide the scientific foundation that may be used by Transportation Research Board sponsors, industry associations, or other organizations as the basis for revised practices, procedures, or specifications. The Transportation Research Board, the National Academies, and the sponsors of the Airport Cooperative Research Program do not endorse products or manufacturers. Trade or manufacturers’ names appear herein solely because they are considered essential to the object of the report. The information contained in this document was taken directly from the submission of the author(s). This material has not been edited by TRB.

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C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR ACRP WEB-ONLY DOCUMENT 58 Waseem Dekelbab, Deputy Director, Cooperative Research Programs Marci A. Greenberger, Manager, Airport Cooperative Research Program Brittany Summerlin-Azeez, Program Coordinator Natalie Barnes, Director of Publications Heather DiAngelis, Associate Director of Publications Jennifer Correro, Assistant Editor ACRP PROJECT 11-09/Topic 01 PANEL Field of Special Projects Prabh K. Banga, Aecon, Oakville, ON Marianne Csaky, LanzaJet, The Woodlands, TX Joseph Gale, EXP, Port Angeles, WA Catrina Gilbert, Dallas-Fort Worth International Airport, DFW Airport, TX K. Qadri, City and County of Denver, Denver International Airport, Denver, CO Lisa Reznar, Ricondo and Associates, Inc., Chicago, IL Melinda Z. Pagliarello, Airports Council International–North America Liaison

iv Table of Contents Summary ........................................................................................................................................ 1 1. Introduction ........................................................................................................................... 3 2. Motivation for Reporting ...................................................................................................... 6 2.a Investors ........................................................................................................................... 6 2.b Business Partners .............................................................................................................. 7 2.c Insurers and Financial Institutions ................................................................................... 8 2.d Rating Agencies ............................................................................................................... 8 2.e Government Regulators .................................................................................................... 9 2.f Employees ........................................................................................................................ 9 2.g Communities/Passengers ................................................................................................ 10 3. ESG Reporting Frameworks .............................................................................................. 11 3.a Global Reporting Initiative ............................................................................................. 11 3.b Sustainable Accounting Standards Board ...................................................................... 12 3.c International Financial Reporting Standards .................................................................. 12 3.d Carbon Disclosure Project .............................................................................................. 13 3.e United Nations Sustainable Development Goals ........................................................... 13 3.f Other Airport Sustainability Programs ........................................................................... 13 4. Regulatory and Legal Context............................................................................................ 15 4.a The United States Securities and Exchange Commission .............................................. 15 4.b Other Federal Agencies .................................................................................................. 17 4.c State Regulation ............................................................................................................. 18 5. ESG Relationship to Existing Airport Sustainability Efforts and Risk Management .. 20 6. ESG Trends in the Aviation Industry ................................................................................ 23 7. Considerations for Airport ESG Reporting ...................................................................... 27 7.a Financial Opportunities .................................................................................................. 27 7.b Legal Risks ..................................................................................................................... 27 7.c Public and Community Relations ................................................................................... 28 7.d Political........................................................................................................................... 28 7.e Airport ESG Considerations........................................................................................... 28 8. General Approach to Preparing an ESG Report ............................................................. 30 9. Additional Research Needs ................................................................................................. 32 10. Glossary of Terms ................................................................................................................ 33 11. Acronyms .............................................................................................................................. 35 12. Resources .............................................................................................................................. 36