China Aviation Oil (Singapore) Corporation Ltd strengthens resilience through sustainability and strategic governance.
China Aviation Oil (Singapore) Corporation Ltd (“CAO”), established since 1993 and headquartered in Singapore, is the largest physical jet fuel buyer in the Asia Pacific region and a key supplier of imported jet fuel to the civil aviation industry in the People’s Republic of China. Leveraging on its core competencies, CAO operates through its subsidiaries, China Aviation Oil (Hong Kong) Company Limited, North American Fuel Corporation, and China Aviation Fuel (Europe) Limited, to supply jet fuel at international airports across Asia Pacific, Europe, North America, and the Middle East. In addition to its jet fuel supply and trading business, CAO’s investments in oil-related assets which are synergetic to its oil supply and trading activities, have further extended its global reach and solidified its position in the global market.
CAO’s sustainability strategy is integral to its operations, supported by a well-defined governance structure that guides its approach in minimising environmental impact and promoting responsible business practices. In 2023, CAO developed a sustainability framework supported by a medium-term implementation roadmap. This framework focuses on improving resource efficiency, reducing carbon emissions within its operations, and initiating CAO’s low-carbon business. The Board with the support of the Sustainability Committee of CAO, provides oversight on all environmental, social, and governance (“ESG”) issues and climate change-related risks and business opportunities, ensuring that sustainability considerations and climate change-related matters that are relevant to CAO’s business, are integrated into business decisions and operations.
CAO has made good progress in setting its sustainability targets to address climate change-related issues that can drive long-term value creation. CAO’s short-term targets include maintaining its emissions profile for Scope 1 (direct emissions) and Scope 2 (indirect emissions) as well as measuring and tracking emissions across its supply chain, such as carbon emissions from shipping (Scope 3). By 2030, CAO aims to achieve a 30% reduction in Scopes 1 and 2 emissions compared to its 2023 baseline. To support these targets, CAO has expanded its product offerings to include sustainable aviation fuel (“SAF”) and is evaluating market demand as it strives to establish its foothold as a key SAF supplier in the Asia Pacific, Europe and North America regions.
Sustainability efforts at CAO are further enhanced by its focus on developing a sustainable supply chain and adopting environmentally friendly practices in its operations. CAO has put in place environmental policies and collaborates closely with its suppliers and shipping partners to ensure a high level of environmental compliance. In 2023, CAO continued to optimise its supply and trading network, with initiatives aimed at reducing emissions, enhancing resource efficiency, and promoting the adoption of sustainable practices across its value chain.
CAO has adopted a 4-tiered sustainability governance structure, comprising the Board of Directors, the Sustainability Committee, the management team, and the Sustainability Task Force. This governance structure ensures that sustainability objectives are effectively communicated and implemented throughout the company. The Sustainability Task Force, which includes representatives from various business functions, plays a crucial role in executing sustainability plans, monitoring performance, and providing updates to the Sustainability Committee and the Board.
CAO’s sustainability initiatives are not limited to environmental management but also extend to social and economic impacts. CAO actively supports community development through various programmes aimed at enhancing societal well-being. CAO’s community development initiatives include supporting educational programmes for underprivileged children and forming partnerships with local organisations to promote a positive societal impact. CAO also embraces workplace diversity, equality, inclusiveness and employee well-being, fostering a positive work environment and contributing to overall workplace productivity and employee retention.
Through its enduring commitment to sustainability, CAO has positioned itself as a responsible partner in the aviation fuel industry. By integrating sustainability initiatives as well as climate change considerations into its business strategy and operations, CAO enhances its resilience and ability to better respond to global market dynamics. CAO’s efforts to promote sustainability through innovation and adherence to global standards exemplify its dedication to creating long-term value for stakeholders while contributing positively to broader sustainability goals.
