Airline Creates ‘Gividends’
Wednesday, 23rd September 2015 at 11:45 am
Air New Zealand has proposed that shareholders reinvest their dividends for philanthropic endeavours as part of its ongoing sustainability in a scheme dubbed “gividends”.
The airline said in its first sustainability report that it had a long history of supporting national charities and causes.
“While our charity contribution is important, in the coming year we plan to work on projects where we can have greater community impact,” the report said.
“In 2016 we will become a founding partner of a new initiative ‘Gividend’ being piloted in New Zealand. This platform will allow private investors to divert dividend streams into organisations addressing social and environmental challenges in New Zealand.
“Our employees and customers have provided insights to inform the type of projects we will pursue in the coming year.
“Initiatives will focus on knowledge sharing, inspiring young New Zealanders, environmental education and growing the economic success of regional New Zealand.”
Air New Zealand is understood to have paid out $179.4 million in dividends in the 2015 financial year.
According to the airline's 2014 annual report 94.4 per cent of its 24,880 shareholders held share parcels of less than 10,000.
Air New Zealand also announced several new steps as part of its sustainability commitment which include a new Supplier Code of Conduct and signing on as a participant of the UN Global Compact, the world’s largest corporate responsibility initiative.
CEO Christopher Luxon said sustainability and philanthropy were important to the airline.
“We see the success of our business as being inextricably linked to the success of our country – Air New Zealand needs a strong and prosperous New Zealand and in turn, New Zealand needs a successful and thriving national airline,” Luxon said.
“Given the significance of this business to New Zealand we have signed ourselves up to a mission and purpose bigger than ourselves – that is to supercharge New Zealand’s success – socially, environmentally and economically.”
The company said it will also begin recycling Air New Zealand crew uniforms which sees unbranded jackets sent to charitable organisations and other garments recycled and converted into various products such as carpet underlay, furniture, blankets and bedding felt.
This program is expected to save around 6.4 tonnes of material going to landfill each year.
The full report can be found here.