Task force on Climate-Related Financial Disclosures
This report provides climate-related disclosures in alignment with recommendations of the Task force on Climate-Related Financial Disclosures (TCFD).
We report data related to United’s 2020 calendar year, unless noted otherwise. Information related to governance, sustainability, climate risks and opportunities may include activities that occurred in 2021 and 2022, as noted.
TCFD index
GovernanceDisclose the organization’s governance around climate-related risks and opportunities. |
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TCFD recommended disclosure |
United disclosure source |
a) Describe the board’s oversight of climate-related risks and opportunities. |
Strategy - How we manage corporate responsibility and ESG Additional information in “Part I, Item 1. Business—Environmental, Social and Governance Approach and Highlights—Climate Strategy” in the 2021 10-K (p. 7) and in our CDP Climate Change response C1.1 |
b) Describe management’s role in assessing and managing climate-related risks and opportunities. |
Strategy - How we manage corporate responsibility and ESG Additional information in our CDP Climate Change response C1.2a |
StrategyDisclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning where such information is material. |
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TCFD recommended disclosure |
United disclosure source |
a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. |
Climate-related risks and opportunities Additional information in “Part I, Item 1A. Risk Factors - Regulatory, Tax, Litigation and Legal Compliance Risks” in our 10-K (p. 27-8) and in our CDP Climate Change response C2.1 and C2.3 |
b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. |
Climate-related risks and opportunities Additional information in “Part I, Item 1A. Risk Factors - Regulatory, Tax, Litigation and Legal Compliance Risks” in our 10-K (p. 27-8) and in our CDP Climate Change response C2.3, C3.3 and C3.4 |
c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario. |
Climate-related risks and opportunities Additional information in “Part I, Item 1A. Risk Factors - Regulatory, Tax, Litigation and Legal Compliance Risks” in our 10-K (p. 27-8) and in our CDP Climate Change response C3.2 |
Risk managementDisclose how the organization identifies, assesses, and manages climate-related risks. |
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TCFD recommended disclosure |
United disclosure source |
a) Describe the organization’s processes for identifying and assessing climate-related risks. |
Climate-related risks and opportunities Additional information in our CDP Climate Change response C2.1 and C2.2 |
b) Describe the organization’s processes for managing climate-related risks. |
Climate-related risks and opportunities Additional information in our CDP Climate Change response C2.2 |
c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk management. |
Climate-related risks and opportunities Additional information in our CDP Climate Change response C2.2 |
Metrics and targetsDisclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material. |
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TCFD recommended disclosure |
United disclosure source |
a) Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk management process. |
Environmental sustainability, Environmental data tables Additional information in “Part I, Item 1. Business—Environmental, Social and Governance Approach and Highlights—Climate Strategy” in the 10-K (p. 7, 9) and in our CDP Climate Change response C4.1, C4.2 and C4.3 |
b) Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. |
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c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. |
Additional information in our CDP Climate Change response C4.1 and C4.2 |
Climate-related risks and opportunities
United continues to develop and refine climate risks and opportunities that will impact our business and the aviation industry. Select physical and transitional risks that pose potential impact to our business are outlined below. For physical risks and opportunities such as increases in extreme weather, United constantly evaluates and responds to weather-related events. For transitional risks and opportunities such as emerging regulations, United has been an integral leader in helping implement ICAO’s Carbon Offsetting and Reduction Scheme (CORSIA) market-based international aviation measure and leading advocacy for incentive-based policy mechanisms to grow sustainable aviation fuel (SAF) supply in the US
Identifying and assessing climate-related risks
United defines a substantive or strategic impact on the business as any internal or external event or circumstance that could impact United’s ability to achieve its strategic or business objectives. United’s climate-related risk management process is part of its overall company-wide risk assessment. United has an Enterprise Risk Management (ERM) program and structure, which includes an ERM Committee that iscomprised of officers and executives of the company. ERM Committee members appoint subject matter experts across the organization to one or more Risk Team(s). Risk Teams are responsible for the risk identification, risk measurement, and risk response(s) for their respective area(s) of expertise; Environmental Affairs participates in United’s ERM process(es).
The Risk Teams use several risk identification techniques including but not limited to subject matter expertise, evaluation of prior exposures, perils and hazards, interviews with the business, and outside consultants. Asset-level risks are identified and managed through multiple departments’ processes, including Corporate Insurance, Corporate Real Estate, Corporate Safety, Environmental Affairs, Finance, Internal Audit, Legal, and numerous operations departments.
A substantive or strategic impact is determined by an analysis of likelihood and impact scales which are assessed by the Risk Teams. Financial materiality thresholds are established in coordination with the Treasury and Accounting departments, based on the status and strength of United’s balance sheet and financial situation. Once the financial impact analysis and likelihood ratings have been completed, risks that qualify as enterprise risks are rated by leadership in Communications, Government Affairs, Human Resources, Marketing, and Sales to then be assigned one of five reputational impact risk ratings. The higher of the financial impact and reputational risk rating is the final rating that is presented to leadership and the Board of Directors and used to quantify the risk as one that could cause substantive or strategic impact.
Updating assessments
The ERM Risk Team facilitates a comprehensive enterprise risk assessment during the fourth quarter each year to update assessments of existing risks and to identify and evaluate new, emerging and long-term risks. Risk Teams update risk assessments and identify potential new, emerging and long-term risks on a quarterly basis and determine what should be included in ERM reporting to the ERM Committee and the Board of Directors. This process primarily focuses on risks with a likelihood of occurrence within a three-year time horizon, while the ratings focus on the upcoming 12-months. The process looks ahead to a medium-term and long-term time horizon to determine if any new risks should be included in the ERM reporting process. For example, in direct operations, risks may be tied to the fleet itself, which has a long-term time horizon, due to the useful life expectancy of an aircraft. In recent years, additional Risk Teams have been included in the ERM process(es), to address new and evolving priorities and risks, which include the addition of our environmental, social, and governance (ESG) strategy and governance structure.
United will continue to develop and analyze potential climate risks and opportunities in its CDP Report and 10K.
Timescales
We are defining timescales as follows:
- Short-term: 0-2 years
- Medium-term: 2-10 years
- Long-term: 10- 30 years