The agreement with Aemetis brings American’s total SAF commitment to more than 120 million gallons. That includes plans to purchase up to 10 million gallons of carbon-neutral SAF produced by Prometheus Fuels, which uses a novel process to make net zero carbon transportation fuels. American took our first delivery of SAF in mid-2020, and in 2021 we used over 1.4 million gallons of SAF. That makes us the only member of Airlines for America to report using more than 1 million gallons of SAF during the year. As critical as SAF is for achieving our own and our industry’s climate goals, it is not yet available at the scale or price needed to reduce emissions significantly. Scaling SAF produc - tion to the point where it can materially reduce aviation’s emissions and be cost competitive will take the combined efforts of the private and public sectors. One way American is helping advance those efforts is as an anchor partner in Breakthrough Energy Catalyst (see page 13). We also continue to advocate for governments to deploy policy tools, including incentives, credits and investments in research, to create the market conditions needed to make SAF an economically viable alternative to conventional jet fuel. Another way we are working to build the SAF market is by partnering with our corporate customers to simultaneously help advance their climate commitments while growing demand for SAF. In early 2021, we launched an innovative pilot program with Deloitte to explore how a new market- based solution — a certificate that allocates the emissions reduction value of SAF — can benefit companies seeking to reduce their Scope 3 business travel emissions. The SAF certificate is a concept under development by the World Economic Forum’s Clean Skies for Tomorrow initiative, aimed at unlocking new capital to boost SAF production by harnessing the ambition of corporate climate goals. This agreement was one of the first collaborations between an organization seeking to reduce net emissions from business travel and a U.S. airline that is using SAF in its daily operations. We have since completed similar agree - ments with Kuehne+Nagel, a global logistics company, Bank of America, and a number of other companies. Market-Based Measures Market-based mechanisms such as carbon offsets are a valuable tool for meeting the global climate challenge, but reducing emissions through improved efficiency and increased use of SAF are — and will remain — our priority. Where necessary, though, we will purchase offsets. CORSIA regulates emissions from international aviation. We have endorsed its goal of achieving carbon-neutral growth in emissions after 2019. Airlines and other aircraft operators will offset any growth in CO 2 emissions above the revised 2019 baseline established in the wake of the COVID-19 pandemic. In 2021, American and other airlines did not face offsetting obligations under CORSIA, as international flight volumes were still below pre-pandemic levels. Going forward, American’s aim is to meet our CORSIA obligations by increasing our use of SAF, but we recognize offsets will also play a role. Enabling Our Customers to Offset Their Flights American partners with Cool Effect, a leading nonprofit provider of carbon offsets, to give our customers the opportunity to easily calculate the emissions of their flight and purchase high-quality offsets. Thousands of customers have chosen to offset the emissions from their flights through Cool Effect since we launched the program in 2020. Companies partic - ipating in American’s Business Extra® program can redeem their points with Cool Effect to offset the carbon emissions of their business travel. And AAdvantage® members can use their Loyalty Choice Rewards to redeem carbon offsets through Cool Effect as well. Cool Effect uses more than 90% of each offset dollar to fund a portfolio of high-quality, verified carbon reduction projects that protect and conserve our planet’s resources. Learn more at www.cooleffect.org/american-airlines . AMERICAN AIRLINES ESG REPORT 2021 18 \\ Indexes & Data \\ Customers \\ Team Members \\ Safety \\ ESG Strategy CEO Message ADDRESSING CLIMATE CHANGE \\ Climate Change