Sustainable aviation terminal surrounded by forest at golden hour
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Integrated Report 2024

Environmental, Social
& Governance

Driving sustainable aviation through innovative training and technology. Our commitment to environmental stewardship, social responsibility, and ethical governance shapes every decision we make.

Building a Sustainable Future for Aviation

Founded in 2017, our company has made significant strides in advancing flight simulation technology and establishing a strong presence in the aviation industry. Through our proprietary iFITS ecosystem and QATE analytics engine, we have significantly enhanced our system capabilities and training outcomes.

Our commitment to sustainable practices is driven by the principles of the circular economy, which shape how we design and develop our products with a focus on resource efficiency and sustainability. By reducing the need for actual flight hours, our simulators contribute to lowering carbon emissions, supporting the broader goal of minimising the environmental impact of aviation training.

Around 9 million people are expected to undergo similar training over the next 20 years, and we are dedicated to meeting this growing demand with innovative, high-quality simulation solutions that contribute to a safer and more sustainable future for the aviation industry.

MT
Mattis Tsang
Managing Director, Aerosystec
AeroSim team group photo
Our Team
35 professionals across multiple regions
34tonnes
CO₂ Reduction
In 2023 pilot study
92.8%
Carbon Offset
For single-engine training
100+
Simulators Deployed
Across multiple regions
0
Fatalities & Incidents
Zero safety incidents
Industrial emissions at sunset
Environment

Reducing Aviation's
Carbon Footprint

The aviation sector accounts for 2.8% of global CO₂ emissions. Aerosystec provides an integrated flight intelligence training solution that addresses environmental concerns by reducing the carbon footprint associated with training. Conventionally, training an ATPL student pilot produces 27.74 tonnes of carbon emissions — our simulators can offset up to 92.8% of that footprint.

2023 Pilot Study

696.6 Hours of Simulated Training

Using five in-house-built simulators, Aerosystec reduced approximately 34 metric tons of CO₂ emissions. With over 100 simulators across various regions, this data represents only the initial phase of assessing sustainability capabilities.

34
Tonnes CO₂ saved
5
Simulators used
696.6
Training hours
Aircraft in flight — the carbon footprint we aim to reduce
92.8%
Carbon offset per student
GHG Emissions 2023
Scope 127.60 tCO₂e
Scope 26.916 tCO₂e
Scope 32.277 tCO₂e
36.79
Total GHG (tCO₂e) — down from 40.30 baseline
1.051
GHG intensity (tCO₂e/staff) — down from 1.343

Carbon Emission Reduction

Energy-efficient machinery at HK manufacturing facility. Malaysian office holds Green Building Index Gold certification. Zero non-recyclable plastics policy with digital-first documentation.

Energy Efficiency

Simulators consume a fraction of the energy compared to traditional flight training. Integrating renewable energy sources and eco-friendly materials into manufacturing.

Noise Reduction

Flight simulators provide a controlled, quiet environment — eliminating noise pollution from conventional flight operations that disrupts communities.

Water Management

Advanced water recycling systems at production site. Total consumption of 56.25 m³/year with low-flow fixtures and automated systems.

Circular Economy

Products engineered for longevity and ease of repair. 0.24 tonnes recycled input from 0.76 tonnes total. Remanufacturing old simulators into new models.

Biodiversity Preservation

Environmental impact assessments before projects. Collaborating with environmental organisations on reforestation. Exploring Sustainable Aviation Fuel (SAF).

Recycling initiatives
Circular Economy
Zero non-recyclable plastics
Sustainable aviation
Sustainable Aviation
Exploring SAF integration
Multi-national & gender equal workforce collaborating
Social

Multi-national &
Gender Equal Workforce

We prioritise employee health and safety, diversity and inclusion, and community engagement initiatives to foster a positive impact on society.

35
Total Employees
Across all regions
40%
Women in Management
2023 figure
62.9%
Under 30 Years Old
Young workforce
170+
Students Engaged
AIAT tournament annually
AIAT students at aviation tournament
AIAT Tournament
170+ students from 25 schools across Hong Kong
Students using flight simulators
Simulator Training
Pilot students in training
Pilot Training

Talent Acquisition & Development

A core team of engineers, designers, and manufacturing professionals drives innovation. We provide early career training opportunities across multiple aviation sectors, equipping young individuals with fundamental knowledge and skills.

Community Engagement — AIAT

The Aerosim Inter-School Aviation Tournament (AIAT) engages nearly 170 secondary school students from 25 schools across Hong Kong. Successfully hosted in 2022, 2023, and 2024, developing critical thinking, problem-solving, and teamwork skills.

Occupational Health & Safety

Comprehensive OHS Management System integrated into our overall management framework. Regular risk assessments, safety audits, and strict compliance with international safety standards. Zero fatalities and zero incident rate.

Diversity, Equity & Inclusion

DE&I practices apply to employees, customers, vendors, suppliers, and all stakeholders. We prioritise fairness in career advancement, professional development, and recognition regardless of background. Target: 40% women in managerial positions by 2030.

Governance

Integrity, Transparency & Accountability

We uphold robust corporate governance frameworks, maintain high standards of integrity, and foster a culture of compliance and ethical behaviour to safeguard the interests of all stakeholders and promote long-term sustainable value creation.

Transparency & Accountability

Active stakeholder engagement through surveys, focus groups, town halls, and advisory committees. Comprehensive reporting including financial statements, sustainability reports, and academic performance reports.

Ethical Standards & Compliance

Compliance with FAA, ICAO, and university educational standards. Anti-Bribery and Corruption Policy aligned with Hong Kong's Prevention of Bribery Ordinance. Know Your Partner Policy for due diligence.

Risk Management

Comprehensive training programs for identifying, assessing, and managing business and ESG-related risks. Integration of ethical conduct, corporate governance, and sustainability practices into risk management.

Identifying What Matters Most

Our materiality matrix maps 17 ESG topics based on their significance to our business impacts and their influence on stakeholder decisions. The top priorities include product quality & safety, carbon emission reduction, and ethical governance.

1
Product Quality & Safetyhigh
2
Carbon Emission Reductionhigh
3
Ethical Governancehigh
4
Circular Economyhigh
5
Talent Developmenthigh
Materiality Matrix — 17 ESG topics plotted by significance and stakeholder influence

Blue dots represent governance/economy topics, gold dots represent environment topics, and green dots represent social topics.

Circular Economy & Value Creation

We are committed to leveraging our strong competitive position to achieve rapid growth delivering high margins and profitability, while pioneering aviation sustainability through system upgrades and circular economy principles.

AeroSim product lineup — Pathway, Q-DATE, FIS System, Console 40
Simulator vs. Real Aircraft — Cost & Impact Comparison
Metric
DA40 Diamond Star
Real Aircraft
Console 40
Simulator
Cessna 172
Real Aircraft
FIS System
Simulator
Unit Price$620,000$46,200$400,000$20,500
Rate of Improvement93%95%
Annual Carbon Emission0.85 tCO₂0.27 tCO₂0.85 tCO₂0.27 tCO₂
Carbon Reduction68%68%
Annual Training Hours1,200 hrs3,180 hrs1,200 hrs3,180 hrs
Training Improvement165%165%

ESG Targets 2024–2030

1
Phase I
2024–2025
Governance
Develop and finalise policies and work ethics guidelines
Environment
10% carbon emission reduction; establish Scope 3 GHG targets
Social
Enhance community program; set feedback mechanism
2
Phase II
2026–2028
Governance
Seek technical certification; establish Data Governance Committee
Environment
30% carbon emission reduction; 5% increase in renewable energy
Social
20% executive officers from minority groups; enhance employee benefits
3
Phase III
2029–2030
Governance
Zero major accidents and fatality; enforce policies among partners
Environment
45% carbon emission reduction; 30% recycling rate
Social
40% women in managerial positions and board of directors

Performance Metrics

Measure2022 (Baseline)2023Target
Scope 1 Emissions (tCO₂e)
32.5027.6020% reduction by 2030
Scope 2 Emissions (tCO₂e)
7.8016.91620% reduction by 2030
Scope 3 Emissions (tCO₂e)
N/A2.27720% reduction by 2030
Total GHG (tCO₂e)
40.3036.7920% reduction by 2030
GHG Intensity (tCO₂e/staff)
1.3431.05110% reduction by 2030
Fatalities (%)
00Zero fatality rate
Incident Rate (%)
00Zero incident rate
Women in Workforce (%)
304040% by 2030
Women in Management (%)
204040% by 2030
Employee Engagement Score
N/A7080% by 2030
Student Internships
38Growing
Environmental
Social

Reporting Standards: This report follows the Integrated Reporting Framework by the Value Reporting Foundation, referencing Global Reporting Initiatives (GRI), CDP climate disclosure framework for SMEs, and Science Based Targets initiative (SBTi) definitions. Aero Systems made the SME Climate Hub Pledge in 2024. Reporting period: January 1, 2023 – December 31, 2023.

Committed to Sustainable Aviation

Learn more about our sustainability initiatives or get in touch to discuss how our simulation technology can reduce your training carbon footprint.