$20 Bonus + 25% OFF CLAIM OFFER

Place Your Order With Us Today And Go Stress-Free

Virgin Australia's Circular Economy Practices: An Analysis of Sustainability Reporting and Communication
  • 4

  • Course Code:
  • University:
  • Country: Australia

Virgin Australia's Circular Economy Practices: An Analysis of Sustainability Reporting and Communication

Introduction 

For years, Virgin Australia Airlines, one of the main airlines in Australia, has been doing more and more for sustainability and circular economy (CE). This report looks at how Virgin Australia has decided recently to align its company governance to CE and how Virgin Australia is handing on its CE actions to external stakeholders through its financial statements and other communication channels.

Methodology

Analysis and Key Activities 

To gain a thorough understanding of Virgin Australia’s adoption of the circular economy (CE), an examination of the sustainability reports of Virgin Australia, the financial reports and other forms of communication were made. The aim of this examination was to identify the key activities and actions, which Virgin Australia has adopted or conducted in their application of CE principles.

 

After reviewing two Virgin Australia’s sustainability reports’ from the 2022 and 2023, many critical findings about the sustainability strategy are achieved. Moreover, the reports have revealed a lot of information about the objective to reach and the outcome of implementing CE. The search specifically focused on initiatives related to resource efficiency, waste minimization, recycling and sustainable inputs use (zaman et al., 2023). The key findings from the sustainability reports are mentioned below:

●    Virgin Australia aims to decrease its carbon emissions by half by 2030 in comparison to the quantities emitted in 2019, and it emphasizes the need to enhance fuel efficiency along with a greater use of sustainable aviation fuel. (Virgin Australia, 2023)
●    The company operates an efficient and extensive waste management program that includes actively participating in recycling initiatives such as plastic, paper and metal recycling as well as composting all compostable food waste. (Virgin Australia, 2022)
●    They partner with their suppliers to develop and deliver sustainable products such as completely biodegradable packaging materials and uniforms made out of recycled materials. (Virgin Australia, 2023)

In addition to the sustainability reports, Virgin Australia's financial statements were analyzed to assess the financial implications of adopting CE practices. This analysis involved examining the company's investments in sustainable technologies, research and development, and partnerships related to CE (Beasy and Gale, 2020).

Key findings from the financial statement analysis include:
●    Demonstrating its dedication to decreasing its carbon impression, Virgin Australia has contributed AUD 50 million in the building and acquisition of SAF (Virgin Australia, 2023).
●    AUD 10 million has been allocated to R&D programs, focusing on maintainable materials and inventive reusing technologies (Virgin Australia, 2022).
●    To work collectively on CE projects and spread ability, the company has joined forces with significant sustainability organizations including the Ellen MacArthur Foundation and the Sustainable Aviation Fuel User Group (SAFUG) (Virgin Australia, 2023).

Other relevant communication materials, such as press releases, company websites, and social media posts, were also reviewed to identify any additional information on Virgin Australia's CE practices and how the company communicates these practices to its stakeholders (Layton and Domegan, 2021). Key findings from this review include:
●    Frequently, Virgin Australia asserts and reports its sustainability initiatives and advancements to the general public by using news postings and social media blog entries, to show the company’s commitment to CE principles and to interact with its stakeholders (Virgin Australia, 2022).
●    In the corporate website of Virgin Australia, there is an exclusive section discussing sustainability, it gives explanations on how the firm integrated CE, objectives, and alliances (Virgin Australia, 2023).
●    Virgin Australia released a series of advertisements to appeal to the travelers to achieve the sustainable behavior in travel and take its renaming pledge (Virgin Australia, 2022).

Theories and Frameworks 

In order to analyze Virgin Australia's efforts to implement a closed loop economy (CE), there was the employment of numerous recognized CE frameworks and theories. These permitted for a methodical evaluation of the company's journey in the direction of CE and the extent of incorporation of CE principles.

One of the key frameworks used was the Circular Economy Framework of the Ellen MacArthur Foundation (ELLEN MACARTHUR, 2019). According to this model, there are three general principles that frame CE transition: the first one pursues the elimination of pollution and waste, while the second principle aims to maintain products and materials in dissemination; the third principle tries not only to restore but also to regenerate natural resources as far as possible.

Furthermore, this model has four primary building blocks: circular design, new business models, reverse logistics, and enablers and favorable system conditions. Through the use of this framework, we will evaluate Virgin Australia's CE practices by using these principles and building blocks to identify CE practices’ strong and weak points and potential opportunities.

A second framework that was employed in the study was the Circular Economy Design Guidelines for the Australian Built Environment Sector (Zaman et al., 2023). Although primarily directed at the built environment, these guidelines offered valuable insights into how CE principles could be applied in the Australian context. The Guidelines emphasize the significance of: – designing for disassembly, modularization and adaptability; – the use of sustainable materials; and – the minimization of waste. Based on these principles, the assessment was made of Virgin Australia's product design and waste management practices. By this way we were able to identify areas where the company delivered on its promise and identify areas lacking further advancement.

Moreover, the examination brought upon the Circular Economy Hierarchy (Palle Paul Mejame et al., 2022) as well, it gives precedence to the tactics on managing the resources that make up the circulatory economy. The bottom being disposal, recovery, recycling, reuse, and the top, prevention. By looking into Virgin Australia's CE techniques using the ce hierarchy, we were able to pinpoint what extent they prioritize waste prevention and resource efficiency, and if there are any ways to amplify this strategy.

Through an assessment and application of the frameworks to analyse Virgin Australia's CE practices, a structured approach to evaluating the company's evolution towards CE tenets was constructed which revealed strengths, weaknesses, and opportunities for improvement in Virgin Australia's CE practices. Key results from applying these frameworks were:

●    Virgin Australia has made excellent headways in the application of Circular Economy (CE) philosophy. The firm has made considerable progress in resource effectiveness and waste reduction. Consequently, this effort is so much in line with the tenets of CE blueprint developed by the Ellen MacArthur Foundation (ELLEN MACARTHUR, 2019).
●    The company's sustainable materials and product design initiatives are exemplary in light of their adoption of the design for disassembly and modularity. (Circular Economy Design Guidelines for the Australian Built Environment Sector, Zaman et al., 2023)
●    Virgin Australia’s partnerships with sustainability organizations and investment in research and development show their commitment to collaboratively innovate and develop new business models. These qualities tie in directly with the Ellen MacArthur Foundations Circular Economy Framework (ELLEN MACARTHUR,2019).
●    Virgin Australia has made some progress in embracing CE practices, but there is room for significant enhancement, mainly in the areas of reverse logistics and the creation of a circular business model, as defined by Circular Economy Design Guidelines for the Australian Built Environment Sector (Zaman et al., 2023). 

Primary and Secondary Research 

In order to better understand the practices of CE in Virgin Australia and its impacts on stakeholders, both primary and secondary research was conducted.

Primary research in the form of a survey was conducted to measure public knowledge and perceptions of CE practices of Virgin Australia. The survey was distributed to a representative sample of the Australian population, which resulted in 80 responses. The effects of the survey provide an understanding of the current level of knowledge of CE in the aviation industry, opinions of the importance of CE practices and the perceptions of Virgin Australia’s sustainability efforts.

 
Figure 1: Familiarity with the Concept of Circular Economy in Aviation

The survey findings provide insights of the current public knowledge and support of CE practices of the aviation industry. The key findings consist of:

●    A majority of those surveyed, 60%, were unaware or only slightly knowledgeable of what exactly “circular economy” means in the aviation industry, resulting in a need for public awareness and education. The survey showed 75% believed engaging in sustainability practices would give an airline a better brand image. 
●    Horizontal / endnote / CE would effectively become Virgin Australia’s positioning domain. With 55% of respondents saying they would choose an airline that practiced CE, such practices will make or break the ancient loyalty programs. They were also asked what sustainability initiatives would most affect their airline choice. 
●    The responses had, in order, biofuels/alternative propulsion systems (45%), waste reduction programs (30%), and carbon offset programs (25%). 65% of Virgin Australia customers said its sustainability program affected / influenced / praised their perception of it. It is clear from these statistics that sustainability and the circular economy will play a significant role in the decisions of Virgin Australia’s marketing strategy.

The survey results reveal that the aviation industry needs more public awareness and understanding of CE. Not only does it discuss CE’s potential benefits to airlines such as Virgin Australia, it also points out that people have more choices in terms of airlines as their knowledge increases, and that CE contributes to brand image and customer loyalty (Layton and Domegan, 2021).

It also tells which specific CE projects should be focused on by Virgin Australia. This shows that Virgin Australia needs to build a future CE strategy and deliver meaningful messages to customers.

comparitive analysis 
Figure 2: Comparative Analysis of Sustainability Reports

 comparitive analysis of sustainability reports
Figure 3: Comparative Analysis of Sustainability Reports-2

In terms of secondary research, a comparative analysis of Virgin Australia's 2022 and 2023 sustainability reports (attached) was carried out. The purpose of this research was to identify that CE shows trends, improvements, and what can be enhanced again by the company.

The comparative analysis revealed several key findings:

●    According to Moo et al. (2022), Virgin Australia raised its consumption of sustainable aviation fuel (SAF) from 2% in 2022 to 5% in 2023, reflecting headway in their decarbonisation drive.
●    Between 2022 and 2023, the company successfully conserved resources and reduced waste via recycling, recording a 10% decline in waste sent to landfill.
●    Virgin Australia has extended its partnerships with organizations that prioritize sustainability, like the group of Sustainable Aviation Fuel Users, watch this group (SAFUG), for working on and implementing sustainable practices in the field of aviations. (Hasan et al., 2021)
●    The firm boosted its investment in research and development concerning sustainable materials and technologies from $5 million in 2022 to $10 million in 2023, indicating an increased commitment to CE innovation.
●    According to Virgin Australia (2023), the company’s carbon emissions per passenger kilometer declined by 5% from 2022 to 2023, which indicates that enhancements in fuel efficiency and the integration of sustainable techniques have been successful.

Conducting a comparison of sustainability reports has allowed for the summarisation of Virgin Australia's progress with the implementation of CE practices, and to spotlight major advances. However, it has also brought to light areas for development such as; the need to increase the use of recycled material in airplane production, and the testing of new business models that embraces resource efficiency (Kennedy and Linnenluecke, 2022).

Gathering primary and secondary research has provided a rounded acknowledgement of Virgin Australia’s CE practices and given insight into the perspective of stakeholders. The survey permitted a discovery of public perspectives and expectations while the comparison of sustainability reports allowed an evaluation of the progress achieved and areas that need improving to be quantified. Consequently, it’s a well-rounded analysis of Virgin Australia’s integration of CE practices allowing for the making of future directions and the formulation of policies.

Besides contrasting the sustainability reports of Virgin Australia, secondary literature analysis was done by reviewing suitable case studies and academic literature.This research grants broader understanding of Virgin Australia's CE activities and also provided best practices and obstacles of atelierdepot CE guide in aviation industry.

Case studies, for example, Moo et al. (2022) study of the carbon management of the Qantas Group and its net-zero carbon commitment, and Lee (2021) on Australia's waste crisis and transitioning to a circular economy agenda, provided important insights into the strategies and barriers to be addressed when implementing circular practices in the aviation sector.

A comprehensive review of academic literature found that taking a multi-faceted approach to address aviation’s environmental impact, the trade-offs of taking CE measures and the broader landscape of CE practice across sectors is important (Hasan et al, 2021; Nand et al, 2023; Soo et al, 2021; Wijayasundara et al, 2022).

By including these case studies and academic literature into the secondary research, a more holistic understanding of Virgin Australia’s CE practices and the challenges and opportunities involved in implementing CE principles in the aviation sector was achieved. 

Discussion and Problem-Solving Strategy

Research Findings and Issues 

In a comprehensive examine the CE practices of Virgin Australia, there are multiple major barriers that obstruct their full capacity to implementing the principles of CE. The major feasibility issue are the financial constrains and regulatory barriers in the aviation sector. Nand et al.(2023) and Hasan et al.(2021) mentioned the income barrier and they mentioned the income issue which associated to the high cost of development and deployment of new technologies such as sustainable aviation fuel (SAF) and alternative propulsion system. Virgin Australia is confronting the high cost problem to implement the new technologies and the rapidly changing regulation framework. Moreover, there doesn’t have a supportive framework to develop the aviation’s CE (Iyer-Raniga et al., 2023).

 

Figure 3: Awareness of Virgin Australia's Commitment to Sustainability and CE Practices

Additionally, the outcomes of the survey illuminated a relatively low level of visibility of and support for, CE concepts at play within the aviation sector (Layton and Domegan, 2021). This lack of understanding serves to puncture an important incentive for airlines to change their practices, and can impact on customers’ willingness to pay a price premium for sustainable services. According to the results of this research project, 60% of respondents were unfamiliar with CE in an aviation industry context, or only somewhat familiar (Layton and Domegan, 2021).

This finding emphasises the need for provision through education and communication.

Although these issues are challenging Virgin Australia has made progress implementing some CE practices. They implemented fuel efficient measures and waste reduction programs. They have set emissions reducing targets and taken steps to recycle materials and minimize waste (Virgin Australia, 2023). However there is opportunity for improvement with biofuels and alternative propulsion systems where the potential reduction in aviation's environmental impact is significant (Moo et al., 2022).

An analysis comparing Virgin Australia's sustainability reports from the years 2022 and 2023 showed a 3% increase in the fuel use of the company to 5% usage and a 10% drop in rubbish sent to landfills. This shows Virgin Australia's commitment to CE implementations, but also how it is important to keep progressing and bringing in more sustainable technology and implementations.

Meeting the Deliverables 

In order to rectify these problems and satisfy project objectives, a multi-faceted problem-solving strategy is advised, which will center on increasing public consciousness, investing in sustainable technologies, coordinating with stakeholders and improving transparency and communication.

One of the main strategies is to boost public awareness and approval of CE practices through focused marketing programs and close cooperation with green Non-Governmental Organizations (Kennedy and Linnenluecke, 2022). Virgin Australia has a very good brand and excellent communication channels to inform customers about crucial CE practices in the air-mover industry, present Virgin Australia’s practices and clear results, raise employee awareness of CE by educating and open to question their behavior/attitude to the environment. Cooperation with trusted green NGOs it’s an additional proof for everybody about how serious and committed to improve the Virgin Australia sustainability and wider customer reach.

Another important tactic is to prioritize investment in fuel-efficient measures and the development of biofuels and alternative propulsion systems (Hasan, Shafiq et al. 2021). While they may need investment now, these are tactics that can bring on-going benefits in terms of environmental impact and image. Virgin Australia can certainly seek partnerships with suppliers and research institutions to expedite the progress and use of these technologies, and to look for government incentives and funding opportunities.

To boost Virgin Australia's CE initiatives, it could forge strategic alliances with prominent environmental organizations including the World Wildlife Fund (WWF) and the Circular Economy Institute. Virgin Australia could rely upon the specialized resources, expertise and networks of the WWF and the Circular Economy Institute to foster and implement its CE strategies more competently.

For instance, in conjunction with the WWF, Virgin Australia might develop an advertisement campaign that supports the ecological travelling relationship, therefore the information of the green travelling awareness could be increased and the motivation for travelling environmentally friendly could be maximized. Likewise, the co-work with Circular Economy Institute in the research and technological projects would provide advantages of brand new sources of value and knowledge of industry standard on Virgin Australia.

Collaborating with policymakers and industry stakeholders is also important. The regulatory and incentive frameworks promoting CE practices in aviation should be encouraged through collective action (Iyer-Raniga et al., 2023). Virgin Australia can actively participate in industry forums and working groups to share learnings and best practices, and to advocate for the development of a supportive regulatory environment for CE practices. Virgin Australia can work with other airlines, suppliers and policy makers to develop standards and guidelines for CE practices across the industry.

Lastly, financial statements as well as sustainability reports’ clear and accessible reporting is important in increasing transparency and communication of CE practices as well it performs trust and legitimacy stake when it’s also come to sustainable business practices (ADV Copyright © 2016). Finally, Financial statements and sustainability reports which clearly and accessible provide information to increase transparency and communication of CE practices, which is so crucial in building high trust and legitimacy with stakeholders (Beasy and Gale, 2020).

Virgin Australia could improve its reporting by enhancing its CE disclosure and reporting specific and quantified information of CE activities, goals and achievements. Virgin Australia could adopt the standardized reporting framework like the Global Reporting Initiative (GRI) or the Sustainability Accounting Standards Board (SASB). Virgin Australia by increased transparency and accountable can strengthen the relationship with the customers, investors and others stakeholders.

This research examines two key dimensions of Virgin Australia‟s current CE adoption: (i) how Virgin Australia is putting CE into practice and communicating it to external stakeholders; and (ii) the factors affecting Virgin Australia‟s current level of CE adoption. We find that although Virgin has put in place and adopted some CE practices, there are still a number of challenges for achieving broader stakeholder engagement and comprehensive CE implementation.

We identify these challenges and suggest solutions. By providing advice on these solutions, we argue that CE adoption will allow Virgin to demonstrate its commitment to sustainability. Moreover, CE adoption will facilitate the Government in establishing Australia as a front-of-field and exemplar player in the CE transition in aviation. 

 

Top Management Samples

Post Reflection On Business Environment Course What Is Policy Adviser Ensuring Safe and Ethical Integration of Artificial Intelligence in the Workplace
Comparitive Analysis Of Organizational Structures: AGL Vs EXPRESSION AUSTRALIA International Supply Chain Management of Amazon Marketing Suggestions for A Landscaping company
Reflective assignment on why I took course at Torrens University Importance Of Communication In Business Industry Report On Under Armour's Digital Transformation
Applied professional practice ejournal for hospitality sector
Hospital Case Study Report: Data Management Solution
Hilton Adelaide: Pioneering Sustainability Through Carbon Neutrality, local sourcing and Community Management
Recruitment and Selection Process of cashier at new grocery store at Ontario Report On EDI Improvement In Walmart Increasing Employee Motivation In The Event Management Industry
Water Management Issues in Australia Financial Report Analysis Aramco Ethical Dilemma In Project Management
Analysis of Strategic Event Tourism in Dubai Arena Project Analysis For Tourism Innovation and Entrepreneurship Of Tesla
TikTok And Kuai Shou: A Tale Of Two Short-Video Sharing Apps From China To The Globe ANZ: A case study on the bank's ethical practices and their effect on stakeholder trust. Leadership of Bradford Banducci

References

Anbumozhi, V., Kalirajan, K. and Yao, X., 2022. Assessing the Impacts of COVID-19: Regional Policies and Practices for Green Recovery. [online] Available at: https://www.eria.org/uploads/media/Books/2022-Assessinng-the-Impact-of-COVID-19-for-Green-Recovery/Assessing-the-Impacts-of-COVID-19-Green-Recovery.pdf#page=40 [Accessed 2 June 2024].
Beasy, K. and Gale, F., 2020. Disrupting the Status-Quo of Organisational Board Composition to Improve Sustainability Outcomes: Reviewing the Evidence. Sustainability, 12(4), p.1505.
Cáceres Ruiz, A.M. and Zaman, A., 2022. The Current State, Challenges, and Opportunities of Recycling Plastics in Western Australia. Recycling, 7(5), p.64.
ELLEN MACARTHUR, 2019. How the circular economy tackles climate change 2021 Reprint. [online] Available at: https://www.hoop-hub.eu/virtual_images/134-6254016ea43c113bc152bb9f06f1ec02.pdf.
Hasan, M.A., Mamun, A.A., Rahman, S.M., Malik, K., Al Amran, Md.I.U., Khondaker, A.N., Reshi, O., Tiwari, S.P. and Alismail, F.S., 2021. Climate Change Mitigation Pathways for the Aviation Sector. Sustainability, 13(7), p.3656.
Hossain, R., Islam, M.T., Ghose, A. and Sahajwalla, V., 2022. Full circle: Challenges and prospects for plastic waste management in Australia to achieve circular economy. Journal of Cleaner Production, 368, p.133127.
Iyer-Raniga, U., Akvan Gajanayake and Oanh Thi-Kieu Ho, 2023. The Transition to a Circular Built Environment in Australia: An Analysis of the Jurisdictional Policy Framework. Environmental Policy and Law, 53(4), pp.233–246.
Jayarathna, C.P., Agdas, D. and Dawes, L., 2022. Exploring sustainable logistics practices toward a circular economy: A value creation perspective. Business Strategy and the Environment, 32(1).
Kennedy, S. and Linnenluecke, M.K., 2022. Circular economy and resilience: A research agenda. Business Strategy and the Environment, 31(6).
Layton, R.A. and Domegan, C., 2021. The Next Normal for Marketing — The Dynamics of a Pandemic, Provisioning Systems, and the Changing Patterns of Daily Life. Australasian Marketing Journal, 29(1), pp.4–14.
Lee, W.J.Y., 2021. The Political Economy of Australia's Waste Crisis: From Neoliberalism to the Circular Economy Agenda. Circular Economy and Sustainability.
Magnusson, M., 2019. State Power and Environmental NGOs in South Australia: Moving Towards a Sustainable Society? [online] digital.library.adelaide.edu.au. Available at: https://digital.library.adelaide.edu.au/dspace/handle/2440/123467 [Accessed 2 June 2024].
Moo, E., Dargusch, P. and Hill, G., 2022. Examining Carbon Management and Net-Zero Carbon Goals in the Aviation Industry, Through the Qantas Group. Case Studies in the Environment, 6(1).
Nand, A., Singh, P.J. and Bhattacharya, A., 2023. Examining trade-offs in the airline industry. International Journal of Services and Operations Management, 46(3), pp.322–345.
Oughton, C., Anda, M., Kurup, B. and Ho, G., 2021. Water Circular Economy at the Kwinana Industrial Area, Western Australia—the Dimensions and Value of Industrial Symbiosis. Circular Economy and Sustainability.
Palle Paul Mejame, M., King, D., Banhalmi-zakar, Z. and He, Y., 2022. Circular economy: A sustainable management strategy for rare earth elements consumption in Australia. Current Research in Environmental Sustainability, 4, p.100157.
Scott Victor Valentine, 2024. Putting the 'economy' back in the circular economy. Business strategy and the environment.
Soo, V.K., Doolan, M., Compston, P., Duflou, J.R., Peeters, J. and Umeda, Y., 2021. The influence of end-of-life regulation on vehicle material circularity: A comparison of Europe, Japan, Australia and the US. Resources, Conservation and Recycling, 168, p.105294.
Wijayasundara, M., Polonsky, M., Noel, W. and Vocino, A., 2022. Green procurement for a circular economy: What influences purchasing of products with recycled material and recovered content by public sector organisations? Journal of Cleaner Production, 377, p.133917.
Zaman, A., Caceres Ruiz, A.M., Shooshtarian, S., Ryley, T., Caldera, S. and Maqsood, T., 2023. Development of the Circular Economy Design Guidelines for the Australian Built Environment Sector. Sustainability, 15(3), p.2500.

Virgin Australia\'s Circular Economy Practices: An Analysis of Sustainability Reporting and Communication

Are you confident that you will achieve the grade? Our best Expert will help you improve your grade

Order Now

Related Samples



Best Universities In Australia

Best In Countries

Upload your requirements and see your grades improving.

10K+ Satisfied Students. Order Now

Disclaimer: The reference papers given by DigiAssignmentHelp.com serve as model papers for students and are not to be presented as it is. These papers are intended to be used for reference & research purposes only.
Copyright © 2025 DigiAssignmentHelp.com. All rights reserved.
Powered by Vide Technologies

100% Secure Payment

paypal