Engaging With Our Fuel Suppliers on Upstream Emissions We know that tackling climate change requires companies like ours to address not only the GHG emissions that stem from our own operations (Scopes 1 and 2), but also those associated with our supply chain and other Scope 3 emissions. About 76% of American’s Scope 3 emissions are from jet fuel, including the fuel used by our contracted regional carriers and the upstream emissions from our fuel suppliers. These upstream “well-to-pump” emissions — including extraction, crude transport, refining and product transport — constitute approxi- mately 20% of petroleum jet fuel life cycle emissions. * To move the needle on our Scope 3 emissions, we know we must work with our fuel suppliers to better under - stand the steps they are taking to reduce emissions within their operations. In 2021, we initiated a process to engage with our key fuel suppliers, with the initial objectives of improving data quality and our reporting on their upstream emissions, as well as understanding their resiliency to the physical risks from climate change. Also in 2021, we improved our CDP Supplier Engagement score to an “A–”. In 2022, we became the first major U.S. airline to join the CDP Supply Chain program to help us develop a more detailed understanding of our Scope 3 emissions. ESTIMATED INDUSTRY UPSTREAM WELL-TO-PUMP JET FUEL EMISSIONS * OUR CARBON FOOTPRINT IN 2021 Total emissions (Scopes 1, 2 and 3): 42 million metric tons of carbon dioxide equivalent (CO 2 e) 91% OF OUR TOTAL CARBON FOOTPRINT IS FROM JET FUEL SCOPE 1 (68%) 99% from jet fuel (mainline and regional operations) SCOPE 2 (1%) SCOPE 3 (31%) 76% from jet fuel (contracted regional carriers and upstream fuel emissions) 16% from purchased goods and services REDUCING FUEL USE AND GHG EMISSIONS IN OUR FLEET 50% Extraction 6% Crude Transport 38% Refinery 6% Product Transport * LCA of Current & Future GHG Emissions from Petroleum Jet Fuel, Massachusetts Institute of Technology Laboratory for Aviation and the Environment . Estimates are for 2020; see slide on page 5 of linked document. AMERICAN AIRLINES ESG REPORT 2021 12 \\ Indexes & Data \\ Customers \\ Team Members \\ Safety \\ ESG Strategy CEO Message ADDRESSING CLIMATE CHANGE \\ Climate Change
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