Airbus AIR
TCI, a 1.5% Airbus shareholder since 2012, demands stronger climate disclosure, an A-grade CDP score, and Airbus leadership in mandating low-carbon synthetic aviation fuels — or TCI will vote against directors.
Thesis
TCI Fund Management, a 1.5% Airbus shareholder since 2012, writes to CEO Guillaume Faury demanding stronger climate-change disclosure and action. Airbus received only a B grade from CDP in 2018 — below Boeing's A- — and its 2019 submission has been designated non-public. TCI identifies six specific shortcomings: limited Scope 3 data, no RE100 membership, inadequate disclosure of carbon-pricing financial exposure, non-monetary staff incentives on emissions, termination of the Safran electric-taxiing project, and weak offsetting. The letter argues aviation (3% of global CO2, projected 3.5x traffic growth by 2050) requires aggressive decarbonisation through advanced biofuels and synthetic fuels, supported by a $115-230/tonne carbon tax and green-fuel mandates. TCI demands Airbus publicly champion mandatory phase-in of low-carbon synthetic fuels — and warns it will vote against directors and auditors of companies lacking credible climate plans.
SCQA
Airbus is a world-class aircraft manufacturer held by TCI (1.5% stake) since 2012, operating in an aviation industry responsible for 3% of global CO2 emissions amid projected 3.5x passenger-traffic growth by 2050.
Airbus received only a B grade from CDP in 2018 (below Boeing's A-), discloses limited Scope 3 data, has stopped electric-taxiing work with Safran, and is not advocating strongly enough for mandatory low-carbon fuel policy.
Make the 2019 CDP submission public, join RE100, disclose carbon-pricing cost exposure, tie management incentives to emissions targets, and publicly advocate mandatory phase-in of synthetic low-carbon aviation fuels.
Avoid TCI voting against directors and auditors, mitigate climate-related material risks to profitability (regulation, taxation, brand impairment, litigation), and position Airbus as industry leader on aviation decarbonisation.
The three reasons
- 1
Airbus received only a B grade from CDP in 2018, below Boeing's A- and below best practice
- 2
Scope 3 disclosure is limited and Airbus has not joined RE100 or adequately quantified carbon-price exposure
- 3
Aviation faces 3.5x passenger-traffic growth by 2050 — Airbus must lead on synthetic low-carbon fuels
Primary demands
- Make the 2019 Airbus CDP submission publicly available and achieve an A grade
- Fully disclose Scope 3 emissions (purchased and capital goods, fuel and energy, use of products sold)
- Join the RE100 initiative to procure 100% renewable electricity
- Disclose actual and expected financial cost of carbon pricing schemes (EU ETS, CORSIA)
- Undertake meaningful carbon offsetting (CORSIA, afforestation)
- Broaden and monetise management and staff incentives tied to emissions-reduction targets
- Publicly advocate for mandatory phase-in of low-carbon synthetic fuels, even if this increases air-transport cost
KPIs cited
Pattern membership
Where this document fits across the library's 12 rhetorical / structural patterns.
Notable slides (3)
Notes
Plain-text engagement letter (not a deck) on TCI letterhead, addressed to Airbus CEO Guillaume Faury and signed by Chris Hohn, Philip Green, and Ben Walker. Focus is ESG/climate stewardship rather than traditional contrarian value thesis — no valuation, no target price. Core leverage is a threat to vote against directors and auditors of companies lacking credible climate disclosure/plans, plus potential divestment. Explicit peer shaming of Airbus vs. Boeing on CDP grade. Appendix (p.6) is CDP's own scoring framework, not TCI analysis. Part of TCI's wider 2019 climate-engagement campaign across portfolio.