Sustainable finance is about ensuring that companies consider the sustainability aspects of their activities, and that this is reflected in how they report their performance. It is also about the evolution of capital markets so that sustainability considerations are reflected in the cost of capital, with companies who are working to address sustainability issues rewarded with a lower cost of capital. For the aviation industry sustainable finance supports the transition to greener, lower emission technologies to address its impact on the environment.

I have worked in the aircraft leasing industry for more than a decade, with a focus on credit risk. Working in the risk function the importance of sustainability as a risk that needs to be managed came to the fore, and when the opportunity to focus more specifically in a position that was dedicated to sustainability became available at Avolon, I jumped at the chance. As a capital-intensive industry, private finance will play a significant role to play in transitioning towards a more sustainable future and it's an exciting space to be in new technologies are developed that will shape the future of flying. 

In July we announced that Avolon was partnering with Airbus to support the development of hydrogen-powered commercial aircraft through Airbus’ ZEROe Project. Together Avolon and Airbus will investigate how future hydrogen-powered aircraft could be financed and commercialised, and how they might be supported by the leasing business model. It’s exciting to have been the first lessor to get involved in Airbus’ pioneering ZEROe Project which helps to ensure we are at the leading edge of understanding what the next generation of zero carbon aircraft could look like.

It’s extremely dynamic and exciting because things are moving so fast and there is a huge amount to learn. Every day I am facing new challenges and encountering new ideas to help Avolon on its sustainability journey. Aviation’s Net Zero 2050 ambition is something that will require close collaboration across the industry, and I really enjoy the collegiality of engaging with colleagues across the industry to share ideas on how we can make progress.

With the application of CSRD and finalisation of CSDDD in 2024, not to mention existing reporting requirements, companies face a huge challenge understanding the new and evolving reporting landscape. The sector needs to ensure that it provides companies with world-class expertise to facilitate sustainable financing to unlock the funding required to finance the transition. The government has correctly identified sustainable finance as a key area of focus to develop and upskill professionals and realise Ireland’s potential as a leading hub for sustainable finance.

One area we have been closely involved with is looking at how Ireland can build a sustainable aviation fuel sector (SAF), as this fuel will be vital to helping aviation achieve its environmental goals. In a feasibility study we partnered on to produce last year we suggested that the Government could assist through creating appropriate incentives to support investment in SAF production with measures like capital allowances, tax credits, and guaranteed minimum pricing.

Go for it! There is a growing need for professionals with expertise in sustainability, so if they equip themselves with the training and knowledge, they will find ample employment opportunities out there. I would also argue that even if you are not working directly in the sustainable finance sphere anyone looking to work in the finance sector will find that sustainability is something they need to be familiar with as it’s not an add on to the day job, but a core part of all businesses these days.