Driving Positive Change
Foreword from the CEO
I am excited to welcome you to FORMIA’s inaugural Sustainability Report covering 2023; a culmination of many years of work across our business to integrate sustainable practices into everything we do.
This report demonstrates key progress against FORMIA’s five core sustainability goals and provides insight into how our global teams are adopting sustainable practices. am delighted to see the progress that we continue to make towards our Sustainable Material targets and our initiatives to reach net zero, including the industry’s first certified carbon-neutral amenity kits. Although there is still much work to be done in these areas, I am confident that we will achieve our goals.
2023 was an eventful year in FORMIA’s journey both as a company and as an organisation that champions sustainable principles. Challenges to do so have of course persisted with the cost implications of materials, supply chain complexities and uncertain consumer habits.
However, there are also considerable opportunities to be seized, and I am happy to share that FORMIA is doing just this. I am particularly proud of our commitment to set aside 1% of our annual revenue for our Sustainability Fund to invest in sustainability related initiatives and developments. This is beyond the product and supply chain improvements we are already applying to all orders. We have defined three core areas to invest in: Innovation & Research, Decarbonisation, and Partnerships & Social Projects. Watch for further updates on these in the coming months.
As sustainability is so critical to our futures, we all need to work together to mitigate climate change and ensure the world is a more equitable and just place. The team at FORMIA knows that we cannot do it alone, and are very grateful for the ongoing engagement and support from our key stakeholders, from our employees to our customers, brands, suppliers and other valuable partners, to help us achieve our end goal - to weave sustainability into the fabric of our business, thereby keeping our communities and our planet in balance.
ROLAND GROHMANN CEO & MANAGING PARTNER
About FORMIA
FORMIA is the global leader in the travel amenity industry offering tailor-made, premium and sustainable airline amenity and comfort item concepts with the highest perceived value.
FORMIA provides a wide range of amenities, cosmetics, sleepwear, and comfort items to airlines. Our diverse, global brand portfolio allows for bespoke solutions, including firston-board offerings. By designing responsible and meaningful concepts that delight, we ensure travellers receive thoughtfully curated products and experiences that will inspire time and again.
102 STAFF 05 OFFICES
40G LOBAL AIRLINES SERVED including 8 of the Skytrax top 10 14 LOCATIONS
KITS annually
SINGAPORE
BANGKOK
SHANGHAI
Purpose of this Report
FORMIA’s Sustainability Report provides an insight into our pathway to sustainability and progress against sustainability goals. It showcases the efforts made by our global teams, suppliers and partners over the past three years to operate a business that strives to more positively impact the world This report contains various updates, such as our progress towards our Sustainable Materials commitments a more nuanced greenhouse gas (GHG) target , and advancements towards the sustainability goals FORMIA has previously shared through our website. It also provides insights into how we are aiding our employees and the communities in which we operate to limit climate change and support social advancement
Where not stated otherwise, the data within this report pertains to the calendar year 2023 (January 1, 2023, to December 31, 2023); however, as this is FORMIA’s first report, initiatives and actions from previous years are also discussed. FOR FURTHER INFORMATION OR TO PROVIDE FEEDBACK, PLEASE REACH OUT TO US AT INFO@FORMIA.COM .
Sustainability at FORMIA
FORMIA’s approach to sustainability is guided by three interrelated pillars These pillars serve as a compass as we consistently progress and improve the delivery of sustainability initiatives across FORMIA.
Our Strategic Pillars
Responsible Supply Chain
Employing processes and delivering products to have positive social and environmental impacts
Conscious Design
Designing products that inspire and create a connection with both people and planet
Meaningful Partnerships
Forming trusted and purposeful partnerships that share sustainability commitments and promote systemic change
Our actions are then grouped into five focus areas that address FORMIA’s material sustainability concerns as a business. Each of these five focus areas (also referred to as ‘goals’) has two associated targets that are used to track progress at an organisational level.
Our Goals
Net Zero
• Achieve net zero across FORMIA Scopes 1 & 2 by 2030 & across the full value chain (Scope 3) by 2050
• Offer certified carbon-neutral products as of 2023
Sustainable Materials
• Increase the percentage of Sustainable Materials that are used in FORMIA’s products each year up to 90% by 2030, interim target of 50% by 2025
• Support the scaling up of innovative materials as opportunities arise
Circularity
• First pilot reuse project in 2022
• Offer Circularity as a Service (CaaS) as of 2023
Stakeholder & Community Engagement
• Conduct quarterly engagement sessions as of 2022 with our key stakeholders
• Conduct regular activities to support our communities and charity partners
Communication and Enhanced Transparency
• Publish first Sustainability Report in 2024
• Engage with customers, suppliers, and industry coalitions to collaborate and communicate our work
Materiality Matrix 2023
Where This Strategy Began
Materiality Assessment
Our sustainability strategy is based on an analysis of FORMIA’s material topics. In partnership with GlobeScan , an international insights and strategy consultancy, FORMIA completed its first formal materiality assessment in 2020 This followed Global Reporting Initiative GRI 3: Material Topics Standard, and identified 20 environmental, social, and governance topics for attention. GlobeScan repeated this process in 2023 and we will continue to conduct an updated materiality assessment every three years to ensure that our approach adapts to an ever-changing business landscape.
Stakeholders and subject matter experts provided relevant inputs on sustainability in general, in the industry, and in regards to FORMIA, as well as their expectations towards FORMIA. These topics were then prioritised and put into a Materiality Matrix (see matrix on the right). Stakeholders engaged included management, employees, suppliers, customers, partners, and sector NGOs . In total 25 detailed interviews took place as part of the materiality exercise alongside detailed peer benchmarking and landscape reviews. Inputs also included industry and company-specific ESG ratings, reports, brands, experts, and media articles
The resulting matrix highlights material sustainability topics for FORMIA and ensures that our strategy addresses critical matters for our business. Our definition of materiality aligns with the Global Reporting Initiative’s (GRI) definition and is specific to our business priorities. It is important to note that the identification of material topics guiding our sustainability strategy should not be interpreted as a statement regarding the respective financial impact of such topics to FORMIA.
Alignment to the Sustainable Development Goals
In 2015, the 2030 Agenda for Sustainable Development was adopted by all United Nations members, establishing 17 global Sustainable Development Goals (SDGs).
These goals are designed to promote peace and prosperity for people and the planet while also addressing climate change and striving to protect oceans and forests. The SDGs emphasise the interlinkages between the environmental, social, and economic dimensions of sustainable development, with sustainability being the focal point of the SDGs.
In 2023, FORMIA became a signatory of the United Nations Global Compact to deliver the SDGs . As part of FORMIA’s commitment to sustainable global development, we have aligned our strategy and actions with SDGs. In doing so, we aim to demonstrate our support of this compelling global vision for the future.
AS DEMONSTRATED IN THE FOLLOWING PAGES, OUR WORK HAS PARTICULARLY FOCUSSED ON ACCELERATING SIX OF THE GOALS THAT FORMIA FEELS ITS BUSINESS CAN HAVE A MEANINGFUL IMPACT ON:
‘Accelerate and scale the global collective impact of business by upholding the Ten Principles and delivering the SDGs through accountable companies and ecosystems that enable change.’
– UNGC AMBITION STATEMENT
RESPONSIBLE SUPPLY CHAIN
Responsible Supply Chain Goals
Achieve Net Zero across FORMIA Scopes 1 & 2 by 2030 & across the full value chain (Scope 3) by 2050
Offer certified carbon-neutral products as of 2023
Background
The realities of anthropogenic climate change are undeniable and all around us.
Beyond the human imperative to act, the physical and transition risks of climate change potentially impact all elements of FORMIA’s business. Because of this, FORMIA acknowledges that it is critical that we understand and address our own contributions to global climate change .
To do this, FORMIA has engaged the REBEL Group a sustainability advisory firm, to help us calculate our company emissions and the environmental footprint of our products. These activities, coupled with high environmental and labour standards within our supply chain, served as the basis in our sustainability journey and for our impact reduction plan.
Understanding our Emissions
As a leader within our sector, FORMIA is committed to integrating best practices within our business and championing innovation. To do this, we have committed to two levels of climate change targets for our business.
The first, at a company level, sets a net zero target for our own operations (Scopes 1 & 2) by 2030 and achieving net zero across our full value chain by 2050 . This year, we chose to restate our net zero goal, adding additional nuance to when we aim to achieve net zero across different scopes. This brings us into line not only with global business practice but also with civil society in our commitment to achieving the goals of the 2015 Paris Agreement .
Our second target is set at a product level to encourage innovation and action across all aspects of our product offering. We have set ourselves the target of providing certified carbonneutral products as of 2023 more details of our approach can be found in the case study on page 16
For our Greenhouse Gas GHG inventory, we worked with REBEL Group to establish the material categories for our business and calculated this in line with the GHG Protocol Guidance 1
UPSTREAM
What does FORMIA need to run its business? DOWNSTREAM
What does FORMIA deliver to clients?
Purchased Goods & Services
Waste Generated
Business Travel
Employee Commuting
Scope 3 Upstream
Transport of Products & Services
Fugitive Sources
Scope 1
Use Phase End of Life
Purchased Electricity
Scope 2
Scope 3 Downstream
Achieving Net Zero
Our Progress
FORMIA has been measuring Greenhouse Gas (GHG) emissions since 2019 and has chosen to set this as the baseline year for net zero targets. Due to the effects of COVID-19, 2020 emissions were not calculated.
Since the resumption of normal airline operations post-COVID, FORMIA has seen a rapid expansion in its business, resulting in 80% growth in its revenue since 2019. This growth has led to FORMIA seeing a 60% growth in total annual emissions for 2023 from our baseline year of 2019. The positive indications of revenue growth outstripping emissions growth by 20% point towards FORMIA’s efforts to shift towards more sustainable materials being successful in limiting emissions
Further, as FORMIA begins to actively work to reduce emissions, through projects such as integrating renewable energy into production, emissions reductions should be achievable
Scopes 1 and 2
FORMIA’s direct and indirect emissions from its own operations are small (40 tonnes) compared to its Scope 3 emissions (108,895 tonnes) Our Scope 1 & 2 footprint is limited to our head office. During 2023 the remainder of staff were in satellite offices, which were not material in their contribution or working from home. We expect this to change in 2024 to reflect our global growth and a new office location in Hong Kong.
FORMIA has aligned its calculation methodology for Scopes 1, 2 and 3 with the GHG Protocol, the leading global provider of guidance and frameworks for calculating corporate GHG emissions.
Scope 3
With emissions predominately concentrated in our upstream supply chain (Purchased Goods and Services account for 59.5% of total emissions), the process of reducing these emissions requires longer-term collaboration and both supplier and customer buy-in on sustainable product design & manufacturing strategies, compared to other emissions sources. Particularly challenging is that we have limited influence on the final selection of materials that go into amenity kits and, as a trading company, we do not have full control over the production. Thankfully, FORMIA has several long-standing collaborative relationships with both clients as well as our key suppliers who are working closely with FORMIA on long-term improvement programmes (see page 15 ).
Other areas of our emissions profile, such as the Use of Products or Disposal, will prove more challenging to abate as FORMIA accounts for the fuel used to fly our products on board commercial flights and their disposal by airlines within these categories. While these elements ultimately remain outside of our control, FORMIA is committed to working with customers to optimise end-of-life for our products to reduce their overall footprint.
To begin addressing emissions from these sources, FORMIA continually works to lightweight our products to reduce emissions during the Use of Products phase and most importantly, we design from the beginning for re-use by passengers. By creating products that can be taken home and reused, we are focused on eliminating waste through design. Further, FORMIA is committed to working more directly with clients to explore reuse, recycling and other circular features when designing our kits (see page 25 ).
Scope 3 Categories and Calculation Methodology
FORMIA also reviewed our current level of data quality and completeness across our value chain to determine appropriate calculation methodologies for each category. This analysis highlighted barriers to collecting activity data from our customers and suppliers. As such, FORMIA has opted to utilise the average-data method as described in the GHG Protocol ‘Technical Guidance for Calculating Scope 3 Emissions’ 2 This uses actual weight and material data from suppliers paired with industry average emissions factors to calculate emissions. Data quality and availability across our value chain are of key importance to FORMIA and form an important focus area for 2024 and onwards (see page 23 for more information).
Key Activities
To date, FORMIA’s company-wide carbon reduction efforts have been focused on those elements directly under our control.
This includes material offerings and conscious design coupled with client and staff education on the role that material and design can have on the emissions associated with products (see page 23 for more information). This has been done through upskilling staff, utilising our Life Cycle Impact Assessment (LCIA) tool to model and demonstrate the emissions of different products to clients and internal teams, and encouraging them to make better use of emissions data in their ultimate decision-making .
In 2023, we more assertively engaged with our suppliers to better understand where they are on their journey , and how we can collaborate to accelerate both of our paths to sustainability. Streamlined supplier material and product data collection was also initiated, replacing the manual processes used in the past. While these initial activities have been beneficial, more intensified and targeted engagement is needed in the future.
IN DISCUSSION WITH
Roland Grohmann
CEO & MANAGING PARTNER
Sustainability to me involves adopting responsible practices around consumption, safeguarding our magnificent planet, promoting health, and addressing inequalities wherever we can.
What challenges are involved in moving towards net zero?
As an organisation, the bulk of our emissions are in our Supply Chain. Not having direct control over our factories means we have limited impact on the associated emissions. Supplier engagement has proven a good first step; now more concentrated efforts are needed to move the needle Also, the price and availability of sustainable materials are still challengingthe supply markets have unfortunately not moved as quickly as we originally anticipated.
What initiatives are needed to keep everyone aligned on the path to net zero?
As a company, we need to engage more with our key partners and take bolder steps to accelerate change. We also need more pilot projects in different disciplines to align teams. A good example of a successful pilot was the Hawaiian certified carbon-neutral kits - where multiple teams worked in an interdisciplinary approach to reach that landmark achievement. Although it did not have a huge impact on our overall emissions, it served as a great example of what it takes to bring a product to true carbon neutrality.
The Year Ahead
IN 2024, FORMIA HAS THREE KEY WORKSTREAMS TO CONTINUE WORK TOWARDS OUR COMPANY LEVEL TARGETS FOR NET ZERO:
Decarbonisation Strategy
Continue to implement a clear and detailed net zero transition plan that will allow us to tackle emissions across our value chain in a strategic way, across short-, medium- and long-term horizons. This uses our detailed GHG inventory to identify critical emissions hotspots and assess viable abatement levers. It is essential that FORMIA continues to proactively address its emissions now to ensure that we can meet our longer-term targets. Success in this arena will be based on solid foundational work with suppliers, customers and staff at this stage rather than attempting to rapidly decarbonise at a later juncture
Embedding
Renewable Energy
A key area already identified is the energy mix used across FORMIA’s supply chain. Throughout the next year the sustainability team will be working directly with key suppliers to assess existing renewable energy capacity and the feasibility of expanding on-site generation at their facilities . Where it is not possible to generate on-site, we will work with suppliers to identify and procure renewable energy through grid Power Purchase Agreements (PPAs) or, where these are not available, high quality international Renewable Energy Certificates (iRECs) on their behalf.
Leadership in Energy Efficient Design
During mid-year of 2024, FORMIA relocated to a new head office in Hong Kong. This new site is considerably larger to accommodate the company’s continued growth. In the design and execution of the new office’s interiors, FORMIA is pursuing LEED certification to ensure that it aligns with the highest standards of environmental responsibility
Carbon Neutral Products
Key Activities and Our Progress
In 2023, FORMIA developed and delivered the world’s first certified carbon-neutral amenity kit for Hawaiian Airlines . This was a landmark for both FORMIA and the industry in demonstrating both our commitment to innovation at a product level and our desire to integrate sustainability-led design across our product portfolio.
CLIENT CASE STUDY
Hawaiian Airlines:
Sustainability-Driven Design
FORMIA created the world’s first certified carbon-neutral amenity kit for Hawaiian Airlines, using recycled and recyclable materials throughout while also providing an on-demand service for some amenities.
Certified Carbon-Neutral
FORMIA worked with SCS Global Services on the certification of the kits. Achieving this requires a 4-step process :
1. After developing the most sustainable amenity kit possible for the airline, FORMIA conducted an ISO 14067 aligned Life Cycle Analysis (LCA) to measure the full emissions associated with producing the kit.
2. A Carbon Management Plan was then created that defined our commitment to further reduce the kit’s production emissions by 20% over the next 3 years . This was to both minimise the environmental impact of the kit as well as to demonstrate our commitment to continuous improvement on sustainability.
3. After additional product and/or process changes have taken place, a 2nd ISO 14067 LCA will be run to determine the remaining emissions.
4. The residual emissions are then off-set with a credible organisation (if possible, with the airline’s preferred provider) to achieve a carbon-neutral product.
This process will be repeated each year throughout the duration of our contract with Hawaiian Airlines.
This process laid the foundation for how we can achieve our company goal of reaching net zero. We were able to raise awareness, interest and commitment within the teams and established a collaborative working style for more efficient idea generation and problemsolving for sustainability.
René Lux
CHIEF OPERATING OFFICER
Sustainability is about taking an integrated, long-term view of the impact our actions have. To me, it’s about making responsible choices and considering sustainability from the very beginningfrom how we design our products to how we source materials, produce, and manage our supply chain. The goal is to minimise environmental harm and ensure ethical practices throughout.
Creating carbon-neutral products requires a good understanding of the emissions throughout the value chain; in particular, suppliers play a key role. How are our suppliers adapting to the increased requests for sustainability data and third-party certification? Our suppliers have generally responded very positively to our increased focus on sustainability data and third-party certifications. Many recognise the business and reputational advantages of demonstrating their sustainability credentials. We’ve seen our suppliers invest in more comprehensive environmental and social reporting , which gives us greater transparency into their performance. A growing number have also completed audits such as SMETA which independently verifies their adherence to ethical labour standards, safety protocols, and good environmental practices. While adapting to these requirements has presented some challenges, our suppliers have been receptive and eager to work with us to meet our sustainability goals.
We see this as a meaningful moment in our shared journey, where we support our partners in continuously strengthening their sustainability capabilities .
What further activities are needed to bring about significant improvements in sustainability for FORMIA?
To drive truly transformative sustainability changes, we need to focus on a few key areas in both the supply chain and in-house:
• Increasing transparency and traceability to better identify and address sustainability issues.
• Intensified collaboration across departments and with our key stakeholders on innovative solutions that reduce waste and conserve resources
• Providing training and support to help build sustainability skills and knowledge.
At FORMIA, we are committed to leading by example and working closely with our supply chain partners to implement these changes. I am confident we can achieve meaningful and lasting sustainability improvements that benefit everyone.
The Year Ahead
For Hawaiian Airlines, FORMIA will continue to deliver against our Carbon Management Plan of continuous improvement, reducing the kit’s emissions in line with our commitment to reduce their impacts on the climate. International Renewable Energy Certificates (Irecs) will be used to further reduce the emissions, while the remaining balance will be offset through globally recognised providers.
Leveraging the experience of delivering our first certified carbon-neutral kit and the insights this project delivered across FORMIA, we will use a similar delivery model for other products and programs throughout 2024. The crossfunctional model of designing a kit with sustainability considerations as a top priority will be applied to other customer projects . We will review new and existing products, applying a differentiated lens to set forth an action plan of continuous improvement for carbon reduction across FORMIA’s product portfolio. In doing this, we will engage more intensely with our partners, especially those within our supply chain, to progress on our common commitments .
CONSCIOUS DESIGN
Concious Design: Materials Goals
Increase the percentage of Sustainable Materials that are used in FORMIA’s products each year up to 90% by 2030, interim target of 50% by 2025
Support the scaling up of innovative materials as opportunities arise
Background
For our customers and, in turn, their passengers, FORMIA’s products represent one of the most tangible and often memorable elements of the inflight experience.
The materials used across our products are an important part of the amenity kits and, therefore, the passenger experience. Furthermore, they represent a significant proportion of the products’ environmental impacts and FORMIA’s overall footprint. The sustainability characteristics of the materials we use are of paramount importance to stakeholders across the value chain.
As such, FORMIA has chosen to focus our attention on two key areas for improving the materials used across our product portfolio. We are focused on increasing the proportion of materials defined as ‘sustainable’ that we use across our products and supporting innovation in the development of novel sustainable materials to incorporate in future products.
Methodology
How does FORMIA define Sustainable Materials?
Included in our definition of sustainable materials are materials that are either recycled, natural/organic, renewable, made from agricultural waste, recyclable or biodegradable/ compostable. We emphasise materials that have a low environmental footprint at the front end of the life cycle, in the raw material extraction phase and/or in the production process. This is where the bulk of the emissions are created, and where we have more control over the process.
HOW DOES FORMIA CALCULATE ITS PERCENTAGE OF SUSTAINABLE MATERIALS?
The material composition and the weight of each material within a product are collected. Together with the sales volume data, the overall percentage of sustainable materials used in our products each year is calculated.
Our Progress
From our baseline year of 2019 we have seen steady growth in the percentage of sustainable materials used across our products each year except 2020.
This was due to the COVID-19 pandemic and the resulting over-proportional demand for Personal Protective Equipment where the requirement to deliver at speed was prioritised over sustainability characteristics.
While now, over a quarter of all materials we use are sustainable there is still a way to go to achieve our mid-term targets of above 40% by 2024 and 50% by 2025 This is due in part to the enduring higher costs of sustainable materials in the market, supply chain issues, as well as a perceived gap in views of luxury sustainable materials. We are working with our clients, brands and supply partners to overcome these challenges. We are confident that FORMIA will be able to achieve these targets through the number of ongoing initiatives (see Year Ahead below).
To date we have focused on transitioning from virgin to recycled plastics in textiles and replacing plastics completely with alternatives such as bamboo, wheatstraw, and paper. To ensure greater credibility of our products, we also attain material certifications, wherever available, for example, GRS (Global Recycling Standard), FSC (Forest Stewardship Council), GOTS (Global Organic Textile Standard), and REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals).
In the next two years, FORMIA will accelerate our progress to further integrate existing sustainable material alternatives across our portfolio, especially for products such as amenity kits, cosmetics and comfort items.
Emirates, Premium Economy Class - Promoting ‘United for Wildlife’ & Sustainable Materials
Materials
Reduced Impacts
The kits use recycled FSC certified kraftpaper for the bags. Further, the items provided in the kit use recycled materials throughout to minimise their environmental footprint and align with FORMIA’s goal to reduce our contribution to climate change and habitat destruction.
Responsible Resource Use
By prioritising sustainable and recycled materials, FORMIA aims to manage and reduce the negative impacts associated with virgin plastic to promote the protection of our planet. In this case, by converting the bag to a sustainable material FORMIA has reduced the emissions across the life cycle by over 40% compared to Emirate’s previous bag.
Ben Read
CHIEF CREATIVE DIRECTOR
Sustainability means so much to me, not only in my professional life by turning onboard experiences into lasting impressions, but also for my family and educating them on the importance of this topic. It is only going to grow and we need to engrain basic awareness and good habits for the sake of our planet and our children’s futures.
How has sustainability influenced your designs at FORMIA?
With every project we work on, we have sustainability at the forefront and work closely with Product Development and suppliers to try and achieve more circular concepts that are within the quality and budget parameters of our clients As the cost of sustainable materials are still high, we have to figure out smart ways of giving the end consumer a beautiful product that will be used beyond the onboard experience. Some recent examples of these include new amenity kits for Hawaiian, Emirates and American Airlines.
What are the opportunities and challenges of using sustainable materials in our products?
Challenges are certainly cost and material availability in the quantities we need. By using more and more sustainable materials, we not only meet our customers’ expectations but also support our our company’s goals to reduce our emissions and their impacts on our planet
Key Activities
Commitment to change all socks and eyemasks to sustainable materials
From mid-2021, FORMIA has been transitioning all socks and eyemasks made with polyester to sustainable alternatives such as recycled polyester across our product portfolio. FORMIA undertook this at our cost to support the overall transition to more sustainable materials.
Since we launched this initiative, FORMIA has used the equivalent of 100 million recycled plastic bottles in our socks and eye masks alone We have also worked with our airline customers to transition materials used for other inner items, such as toothbrushes, to more sustainable alternatives, including bamboo, wheat straw and recycled plastics. Our focus is now on our amenity bags and pouches as, given their weight, these will have the largest impact on the overall percentage of sustainable materials.
Life Cycle Impact Assessments (LCIA)
Using FORMIA’s in-house Life Cycle Impact Assessment (LCIA) tool, developed in partnership with REBEL Group, FORMIA has analysed over 450 items across 70 different amenity kits to show the varying environmental impacts that changes in material and design can have. These impacts, calculated using a wide range of factors from global databases and actual product data, include CO2e emissions, Energy consumption, Water usage and Chemical waste of the products across their lifecycle. This tool enables us and our customers to make data-driven decisions on how product design and end-of-life treatment can be optimised to reduce the environmental footprint.
The Year Ahead
In 2024, FORMIA is committed to achieving a significant increase in the percentage of sustainable materials used across the product portfolio to remain on course for our 2025 target.
TO DO THIS, OUR TEAM IS FOCUSED ON THREE KEY CROSS-FUNCTIONAL WORKSTREAMS TO ENSURE THAT
OUR AMBITIOUS
INTERIM TARGETS CAN BE MET:
Sustainable as standard
Sustainable and predominantly recycled materials will be the default first option to encourage them to make more sustainable decisions. This process is already well underway with our teams all working to propose and deliver recycled material amenity kits for our customers .
Improved data and analytics for amenity programmes
The importance of data cannot be understated, and is a key enabler to identify hotspots in our product’s lifecycle. With this information FORMIA works with clients to improve their kits. This work is supported by using FORMIA’s LCIA tool to demonstrate how small material changes can have positive effects on their environmental impacts
Staff upskilling and development
The talent and collaboration of team members across FORMIA will be critical to achieving our targets. Each function involved in delivering a kit must be aware of and understand the attributes of the different materials and the impact they have. This will allow them to make informed and responsible decisions across the lifecycle of the kit Building on the initial training sessions introduced in 2023, function “Deep Dives” will be organised to provide targeted information and education to each team.
FORMIA aims to design products with the highest perceived value that are taken home and reused. By using high-quality materials and design, we create appealing and practical products for both inflight and beyond.
However, some products inevitably will remain on board after a flight requiring disposal. FORMIA works with customers to create solutions to reuse, recycle and/or upcycle these products to mitigate waste.
Airlines generate about 3.6 million metric tons of onboard waste per year that is usually either incinerated or sent to landfill (ASF & IATA waste audits conducted in November 2023 and March 2024). Amenities, including disposable headsets and headrest covers, make up approximately 3% of the total onboard waste. The bulk of that waste is comprised of textiles: slippers, socks and eyeshades, as well as the amenity bags themselves. We see helping clients to reduce and manage this as a natural extension of our amenity programmes for airlines and our responsibility to reduce waste.
FORMIA is committed to working with airlines, aviation industry coalitions and aviation suppliers to find innovative ways to reduce onboard waste collaboratively.
China Airlines x The North Face, Business Class - Durable multipurpose reusable Concious Design: Circularity
IN DISCUSSION WITH
Our Progress
FORMIA began exploring the possibility of providing Circularity as a Service for our clients in 2022 with a number of scoping discussions.
These helped us to initially understand the realities of the operational complexities experienced by airlines in the post-covid ramp-up and the hurdles of standing up a Circularity pilot program.
In 2023, FORMIA successfully ran two pilot projects, focused on re-usage, for a global carrier . These were hugely insightful, providing some promising results. Across the two programmes, approximately 25% of kits were re-provisioned. During the pilots, FORMIA made numerous process adaptations, such as testing different criteria for re-provisioning, and integrated additional technological solutions to ensure only items which meet agreed quality standards were used.
The pilots also provided FORMIA with key insights into the barriers of achieving true Circularity at an impactful scale. Our core learnings were:
1. Cross-Industry Collaboration
Achieving true Circularity is a complex undertaking and requires collaboration from all involved – from the product designers and suppliers to the airline’s inflight department and cabin crew, to the caterers, cleaning companies, and other relevant service providers. Each party has a role to play, and the whole can only function when the individual members work together.
2. Recycling Infrastructure:
While FORMIA was able to recover a high volume of kits, those that were not suitable for re-provisioning are not always able to be recycled. Textile to textile recycling proves a hurdle and availability of industrial recycling partners is not uniform
3. Amenity Program and Business Model
Introducing Circularity as a Service changes the flow of goods and services. Additionally, the general business model could evolve to include elements such as personalisation, on-request and/or pre-order.
Niklas Sandor
CHIEF COMMERCIAL OFFICER
To me, sustainability is longevity, legacy, and a responsibility to look after our planet. A core part of this is integrating the principles of good corporate governance with wider considerations for the planet and its people into everyday business practices.
What are some of the challenges involved with introducing a Circularity program for our clients?
Challenging the status quo is never easy . For Circularity to work with our products, we have to align and consider many different aspects, such as the complex nature of airline and airport operation, multi-jurisdiction regulation, complex stakeholder environments across multiple contractors, and of course public perception of premium goods.
What will it take for Circularity to become a standard part of any amenity programme?
It will require behavioural change from passengers to return amenity kits and items they have not used in an orderly way to facilitate collection and reuse. Greater alignment, collaboration and cooperation across the various parties and entities that are part of the value chain. It also requires changes in regulation to allow for more types and categories of items to be collected and reused or recycled easily
CLIENT CASE STUDY:
jetBlue, Reusable Silicone Bag
Versatile and reusable
The bag designed for jetBlue is intended for repeated and varied use beyond the flight. Made from silicone, passengers can also utilise it for food storage. This durable material can last for years with minimal degradation and has the potential to replace hundreds of plastic bags over its lifetime.
Limiting environmental impacts
Manufacturing silicone requires significantly less energy than traditional plastics. This leads to a considerable reduction in carbon emissions during the production phase compared to PET fibre. Its long lifespan further offsets the environmental costs associated with production and use over time.
Minimising waste problems
While silicone is not biodegradable, it does not decompose into microplastics during use or disposal, unlike traditional plastics. This characteristic ensures that, when not disposed of properly, silicone bags help minimise environmental pollution while providing a sustainable alternative to single-use plastics.
The Year Ahead
FORMIA believes that by incorporating more Circular practices and service offerings into our business model, we can achieve better outcomes for our planet.
While this may reduce volumes, it is imperative that stakeholders across the airline ecosystem collaborate to drive change and move forward towards a Circular economy.
In 2024, our core focus will be on expanding capabilities for reuse and circular end-of-life services. We see these as being the most powerful and scalable practices for our customers alongside changes in the delivery model to passengers. We aim to have an active Circular program by 2025. Ultimately, it will require an entire ecosystem approach to production, use and disposal to achieve the outcomes that will move our business towards true Circularity.
JetBlue, Transatlantic - Versatile food safe silicone bag
INTRODUCTION
MEANINGFUL PARTNERSHIPS
Stakeholder Engagement
MEANINGFUL PARTNERSHIPS
Meaningful Partnerships:
Stakeholder & Community Engagement Goals
Conduct quarterly engagement sessions as of 2022 with our key stakeholders
Conduct regular activities to support our communities and charity partners
Background
To effectively and meaningfully integrate sustainability across the fabric of FORMIA, the importance of involving a diverse group of stakeholders cannot be underestimated.
It is essential for any organisation, that intends to deliver impact, to regularly engage with stakeholders across the breadth and depth of its operations. To support this, FORMIA set itself the target of holding quarterly sessions with each of our key stakeholder groups on sustainability. A key goal of this is to learn from each other, discuss best practices and seek joint opportunities to further our common sustainability endeavours.
Beyond this, FORMIA also recognises that it does not operate in a vacuum and that our responsibilities to society extends beyond our direct interactions with suppliers, staff, customers and other partners. FORMIA sees itself as a responsible corporate citizen, and as such supports a range of charitable and social causes in each of its office locations The extension of FORMIA’s Corporate Social Responsibility (CSR) beyond our direct operational activities is an essential part of maintaining our corporate values.
Key Activities
Regular engagement with our key stakeholders is paramount to achieving our sustainability goals. We have focused on the following engagement activities and focus areas:
Customers
FORMIA has always held in-depth discussions with its existing and potential customers. Sustainability – both from the environmental and the social perspective has become a key topic from the onset of our journey. As our customers progress on their paths, they expect their suppliers to progress as well . Regular engagement with our customers enables us to focus on the topics important to each, and to better address them. Additionally, in 2023, FORMIA exhibited at three major international industry shows (WTCE, IFSA/APEX, FTE/APEX Asia) . At each of these, sustainability was a central feature of our display booth and a key topic of discussion with attendees.
Employees
FORMIA’s sustainability team continued providing regular training sessions for each department . These covered general sustainability topics to raise awareness of wider trends and more specific training for teams on how their role interacts with the company sustainability strategy. The team will continue to provide regular sessions each quarter to ensure that new joiners also receive this training as well as running re-fresher sessions as needed.
Brands
We have always engaged regularly with our brand partners, predominately on brand identity related topics. Recently these discussions have been expanded to include sustainability – for us to learn more about the brands’ ambitions and to share our own goals and achievements. In a true sense of collaboration, we aim to learn from one another to broaden, or to streamline, our efforts depending on the topic at hand.
Suppliers
Engagement on sustainability with our product supply partners began in earnest in 2023. The primary aim of engagement in 2023 was to procure more transparent sustainability data (mainly product-focused) from Tier 1 suppliers. A secondary aim was to understand the sustainable material landscape through the lens of our suppliers to support us in providing our customers with a wider range of solutions. In 2024, engagement will expand to include discussions on product & supplier decarbonisation with an initial focus on renewable energy and traceability of materials
CASE STUDY
Japan Airlines
This kit embodies the key elements of our commitment to positive social impact and reducing our product’s environmental impact.
Partnering for inclusion
FORMIA has facilitated these products as part of JAL’s partnership with Heralbony, a Japanese social impact organisation. The kits feature six unique artworks by artists with disabilities . Heralbony provide a sustainable business platform for the artists, facilitating collaborations with enterprises, and the artists receive royalties when their art is used. By showcasing their unique expressions through art and design, Heralbony aims to change people’s negative perspectives towards ‘disability ’ and create a society where everyone’s ‘differences’ are celebrated.
Designed to be taken home
The amenity kit is produced using majority recycled materials for the bag and comfort items Further, the collectible and varied artwork bags encourage passengers to reuse them, minimising waste and negative impact on our environment. By taking the kits home with them, passengers carry Heralbony’s impactful message of inclusion with them wherever they are travelling.
JAL x Heralbony, Business Class - Social Impact & Environmental Stewardship
Sustainability Experts
FORMIA has engaged external expertise in Sustainability as needed to develop and execute our Sustainability Strategy. Our partnership with GlobeScan was instrumental not only for our Materiality Assessments, but also to develop our strategy and our targets. Collaborating with the REBEL Group helped us to measure and quantify the environmental footprint of our products and our GHG (Greenhouse Gas) emissions on a company level. The longer-term partnership resulted in fruitful discussions, which led to a more concise, yet practical approach to reaching our goals. Working with SCS Global Services to certify the Hawaiian Airlines kit as carbon neutral enabled us to better understand the process involved and to ensure that we were working on a credible path. We continue to work with a broad range of sustainability experts who are able to provide insight on critical strategic projects to achieve our ambitions.
NGOs
FORMIA is a founding member of the Aviation Sustainability Forum (ASF) whose mission is to reduce onboard waste while enhancing the Circularity of onboard products and materials. As part of this, FORMIA’s sustainability team regularly contributed to the ASF’s work and publications throughout the year. FORMIA joined the United Nations Global Compact (UNGC) at the end of 2023. This formalises our commitment to the 10 Principles of the UNGC, as well as to the SDG’s. It also provides key educational and networking opportunities for FORMIA.
Sarah Klatt-Walsh
SUSTAINABILITY LEAD
Sustainability to me means preserving our resources for current and future generations. It is about living responsibly, taking care of our beautiful planet and waterways, protecting our health and reducing inequalities.
How has stakeholder engagement impacted FORMIA’s sustainability strategy?
Our key stakeholders helped form our strategy by participating in our initial Materiality Assessment in 2020, and again when vetting our draft strategy that year. Some recommended that we be more ambitious, while others suggested that we broaden our scope - this feedback was very helpful and enabled us to streamline our focus. Today, stakeholders continue to support and help accelerate our journey - which in turn helps their own endeavors. This strengthens the idea that together, we truly are better.
Can you give some examples where stakeholder engagement has added value to your business?
Sure, let’s look at our brand partners for example. Many of them are ahead of the industry when it comes to sustainability. Their expertise has provided us the opportunity to learn and try out new things, thereby helping to accelerate our progress One example is our partnership with Grown Alchemist, whose use of aluminium tubes has influenced our decision to also use more recycled aluminium in various programmes.
Our employees are our heroes - who have provided their thoughts and ideas from day one, and now regularly share feedback on all facets, helping to further align our company goals and actions with the needs of our stakeholders. As every product is influenced by so many employees, it is more the collective action here that leads to positive results , time and time again.
Community Engagement
Progress and Key Activities
Conduct regular activities with our charity partners:
FORMIA has several long-standing relationships with charitable organisations globally and associated with our local offices. Activities include both donations (financial and in-kind donations) as well as volunteering. Two of our key charity partners are Habitat for Humanity and the Changing Young Lives Foundation
Qatar Airways Breast Cancer Awareness
Championing powerful messages
In October, FORMIA collaborates with Qatar Airways to highlight Breast Cancer Awareness Month. Our collection of pink-inspired amenity kits and comfort items aim to build recognition and help tackle this disease . Further, in April, Qatar Airways also promotes Autism Month through another set of special amenity kits.
Engaging global audiences
By rolling out new amenity kits across all cabin classes Qatar Airways are able to communicate the importance of understanding and tackling breast cancer to a diverse audience
Utilising sustainable materials
The recycled paper boxes and pouches used for the amenity kits continue to promote FORMIA’s mission to use sustainable materials wherever possible.
The Year Ahead
CSR Refresh
FORMIA is committed to being an engaged and considerate corporate citizen In 2024, the sustainability and marketing teams will work together to design, develop and implement a new global CSR strategy for FORMIA. By reassessing our CSR programme, we intend to magnify the impacts that we achieve and the benefits that we realise for our partners. This will be done by focusing on a limited number of critical issues where FORMIA believes we can make a difference. Once these are clearly defined, we will then identify a small number of global and local partners to work and deliver quantifiable impact.
WELL Office Certification
As part of the company’s relocation to a new head office in Hong Kong FORMIA has elected to pursue the WELL certification. As part of this programme, FORMIA will implement a number of policies and features to support and improve the wellbeing of our staff and visitors to the new office.
Expanded Social Awareness
Given the potential that our amenity kits have to engage passengers with important societal causes, FORMIA aims to further support our customers to deliver these messages. We aim to expand our work with customers to partner with and promote social causes through amenity kits to amplify the work of organisations with powerful messages.
Meaningful Partnerships:
Enhanced Transparency Goals
Publish first Sustainability Report in 2024
Introduce sustainability on our website, and push regular messages and updates on various platforms
Enhanced Transparency
Background
Across FORMIA’s materiality assessments, a common theme echoed was that we did not communicate enough.
Stakeholders felt we were making progress on key sustainability topics but could not pinpoint how this progress was being made.
TO ADDRESS THIS, FORMIA COMMITTED TO PROMOTE COMMUNICATION OF OUR SUSTAINABILITY STRATEGY AND PROGRESS:
• A formal annual Sustainability Report
• Enhanced marketing communications across our different media channels
• A dedicated sustainability section was also added to our website in 2022
With these channels identified, we are confident that stakeholders will be better able to understand and identify FORMIA’s actions on sustainability. Further, sustainability has been included as one of the four key pillars that form our company’s communications strategy and every month, we commit to highlighting messages about our pathway, initiatives, and achievements.
Progress and Key Activities
FORMIA is committed to providing transparency to our customers, brand partners, the media and wider public.
To ensure transparency, FORMIA provides information to leading rating agencies to disclose our performance and key activities. Further, we welcome and encourage customer and brand audits of all our suppliers . In 2023, we also provided several tours of our supplier factories for customers and brands.
Beyond this, FORMIA has also increased public communication on sustainability across all channels. In 2023, we published 17 different sustainability related pieces across social media and industry press . We believe it is important to communicate with stakeholders across the spectrum to provide them with insight into our work on sustainability.
FORMIA Sustainability Wheel
Used at key industry events, this interactive display presents the wide range of sustainable alternative materials that are available to customers. Further, leveraging our LCIA tool, each material is presented alongside its environmental impacts as compared to a baseline ‘virgin’ material.
FORMIA’s display provided an accessible way for stakeholders from across the airline industry to engage with sustainability and begin to understand the underlying impacts of different materials.
Enhanced Transparency
IN DISCUSSION WITH
Marisa Pitsch
CHIEF MARKETING OFFICER
To me, sustainability represents a collective energy. Not the kind of ‘energy’ that one might think of when referring to sustainability; not sources of energy, instead, the kind of intangible energy that is used to describe what happens with collective impact – when communities, organisations, corporations, and people come together to define a common agenda, goals, set a mission, foster activities, track process and communicate about it.
How do you integrate sustainability into different forms of stakeholder communication?
As a company, one of the key pillars of our communication strategy is transparency . While we go about our mission to achieve our sustainability targets, we believe it is imperative that we are transparent with our efforts not only to foster trust among our stakeholders but to also hold ourselves continuously accountable in this journey. We openly share our journey, challenges and achievements with our stakeholders through actively communicating across our various media channels, on our website, via internal newsletters and in presentations we share with customers where sustainability is woven into all of our amenity solutions.
What forms of communication have proven to be the most impactful and why?
Most beneficial for the purpose of creating meaningful change and positive impact is when we can have
in-person dialogue with the multiple stakeholders involved in our business. Creating real positive impact requires various entities as well as the customer to sit together and discuss how each can contribute towards considered solutions. An example of this is our recent launch for American Airlines , where we curated a new first-in-kind collaboration in partnership with thirteen lune
– an inclusive beauty platform featuring premium beauty brands from diverse founders and voices
Passengers flying regularly with American Airlines can look forward to experiencing a rotation of brands and products from within the thirteen lune portfolio, as well as limitededition specialty kits throughout the year to recognise specific DEI milestones and initiatives that reflect the values and backgrounds of the airline’s customers and team members. Travellers will be able to learn about each brand and partner featured in the speciality kit by scanning a QR code found within the kit.
The Year Ahead
With channels of communication for sustainability at FORMIA well established over the course of 2023 and with the publication of this report, the sustainability team will focus on supply chain transparency across 2024.
Enhanced Transparency
It is essential for a business to have a thorough comprehension of the origins of its products, the individuals involved in their production, and the environmental and social impacts. This is why FORMIA’s sustainability team will be focusing on both internal and external supply chain transparency to improve processes and drive impact across FORMIA.
Internal transparency
FORMIA will apply a holistic approach to data collection using a new ERP system to be deployed in 2024. This will be driven by improved processes to collect, sort, store and analyse data from suppliers to better inform decision-makers. The adoption of a refreshed internal data system for all items will allow us to deliver on this ambition. The team will also look to integrate data more actively into decision-making across the business . We will more actively and regularly provide information to teams that require sustainability insight, thereby looking to better integrate sustainability across the product lifecycle from tender to delivery
Further, FORMIA has enhanced its in-house capabilities to do this by expanding our sustainability team to three dedicated staff. With two members based in Hong Kong to better interface with our suppliers across Asia and head office teams.
External transparency
3
SUBMISSION TO ECOVADIS
FORMIA’S WORK IN 2024 TO IMPROVE OUR EXTERNAL TRANSPARENCY WILL FOCUS ON THREE KEY ACTION AREAS: NEW LONG-TERM TARGETS FOR SUPPLIER TRANSPARENCY
As the world’s largest and most reputable sustainability rating provider globally, completing an EcoVadis assessment demonstrates a commitment to sustainability, human rights, and ethical business practices.
In 2024, FORMIA will prepare ourselves to submit to EcoVadis for assessment and to be scored . This will not only provide greater transparency to our stakeholders, but also facilitate a thorough and impactful internal review of our sustainability policies, activities and performance.
IMPROVING OUR SEDEX COVERAGE AND QUALITY
FORMIA utilises SEDEX to map and manage suppliers across our value chain.
In 2024, the sustainability team will be working closely to onboard all major suppliers onto the SEDEX system .
Further, FORMIA will also work with suppliers to complete SEDEX Members
Ethical Trade Audits (SMETA) of their facilities where they have not already done so. We believe that SMETA’s comprehensive 4 Pillar methodology provides a strong internationally recognised foundation for understanding sustainability performance.
Having met our initial targets for communication, it is now imperative to set revised targets that also encompass and promote transparency across FORMIA’s supply chain To do this, the sustainability team will work closely with leaders across FORMIA to develop new long-term targets to drive action. These will focus on better understanding our Tier 2+ supplier landscape , ‘raising the floor’ for existing suppliers by working collaboratively to enhance transparency and ensuring that all new suppliers are able to provide the required level of information and performance.
Closing Statement and Year Ahead
When we started our sustainability journey, it was both exciting and daunting. The global pandemic began shortly after we made our commitment to become a more sustainable company - and although business slowed dramatically, it gave us time to develop our strategy and to begin with its implementation.
The immense aviation growth that occurred post-pandemic spurred us forward, despite the many operational challenges for all parties involved. Looking back, we are proud of what we have achieved in these first years on our journey. We aim to improve day by day - to learn, collaborate, engage and take measured risks as needed to achieve our goals.
Throughout 2024, FORMIA will continue to work on the five core goals of our sustainability strategy. Our teams will press ahead with the programs laid out across this report and integrate sustainability across the business and with customers . The expanded sustainability team’s core focuses will be to engage our suppliers to improve data accuracy, continue to support informed decision making and push for enhanced transparency at each stage of the product journey. In 2024, FORMIA will also move its head office to a new location. In the redesign and refit of this space, the sustainability team will lead in obtaining LEED and WELL certification to ensure that the office meets the highest standards of environmental and wellbeing-related sustainability.
2024 will also act as a building block for accelerated action on other key topics, such as our transition to net zero and communication with customers. We plan to work hand in hand with our suppliers to continuously raise the floor of baseline performance across all aspects of sustainability while also pushing ourselves to new heights. Throughout all of this, FORMIA’s collaborative and client-centric approach will remain at the heart of all we do.
Continuing to understand, audit and certify different elements of our supply chain to drive performance and build confidence will be a crucial focus of our work. By leveraging leading global platforms like Ecovadis and SMETA, FORMIA will be able to understand more about our own performance and the practices of our suppliers, respectively.
Building on previous work utilising FORMIA’s LCIA tool and our LCA for Hawaiian Airlines the role of data for sustainability will continue to be improved in 2024. Working with suppliers to collect improved product, actual energy consumption and production data will allow us to dive deeper into hot spots for emissions, waste, chemical emissions, and water usage to mitigate these. Further, through a more formalised stakeholder engagement approach, including staff upskilling, we will be able to push forward with key partners
Finally, after 5 years on our journey it will be time to review FORMIA’s strategy and targets to ensure they are in line with the ever-changing landscape, our customer expectations and regulation, adapting as necessary.
We thank all of our stakeholders for taking this journey with us, and we look forward to continuing it in the years ahead.
APPENDIX
R-ladder
The R-Ladder framework serves as an effective instrument for visualising and comprehending the various phases of resource utilisation and waste management within a circular economy.
R0-R2:
Impacts the strategy (business model & customer experience) and design phase, focusing on responsible use and manufacturing.
R3-R7:
Impacts mainly the design and consumption phases enables optimal use of resources. Preserves and extends the life of products. Reuse is most sustainable in this group.
R8-R9:
Impacts the End-of-Life or Recover phase , ensures value is captured and retained, uses waste as a resource (example waste to energy incineration). Less sustainable than R0-R7.
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