Leading the Industry in Adhering to International Standards

In 2024, CAL continued to actively progress towards its 2050 net-zero goal, becoming a pioneer in promoting Sustainable Aviation Fuels (SAF) in the industry. On April 23, 2025, CAL actively responded to a Civil Aeronautics Administration initiative, implementing a trial program for SAF usage at Taiwan airports. As a pioneer in sustainable practices in the Taiwanese aviation industry, CAL has been leading the way since 2017. In that year, we became the first to introduce SAF to new aircraft operations. In 2023, CAL successfully carried out the first commercial flight with SAF in the Taiwanese aviation industry through the SkyTeam Aviation Challenge. Building on the achievements of the previous two challenges and CAL's commitment to sustainability, in 2024, practical actions were taken, including the use of sustainable aviation fuel, promotion of a value chain circular economy cooperation plan, implementation of airborne and ground carbon reduction operations, and execution of carbon offsetting. These initiatives demonstrate CAL's dedication and innovation in the field of sustainable development. Furthermore, a sustainable fuel customer cooperation plan for cargo transportation was launched, inviting upstream and downstream partners and customers to participate. This collaborative effort aims to advance Taiwan's aviation industry towards energy transition and low-carbon transportation development. This pioneering commercial operation model in the Taiwanese aviation industry allows corporate customers to join hands with CAL in using sustainable aviation fuel, not only directly reducing carbon emissions from flight transportation but also effectively decreasing the carbon footprint of customers' air travel and cargo delivery. This enables CAL to share carbon reduction benefits with customers, promoting sustainable cooperation within the supply chain and value chain.

China Airlines has also actively responded to international carbon reduction initiatives. In June 2024, we became the first transport service provider in Taiwan to have our carbon reduction targets officially approved through the Science Based Targets initiative (SBTi), and we continued to support the national natural carbon sink initiative and sustainable forestry projects, implementing the International Satoyama Initiative. Furthermore, we actively supported Taiwan's participation in the 16th Conference of the Parties to the United Nations Convention on Biological Diversity, promoting the achievements of Taiwan's Satoyama Initiative and witnessing a new milestone in the co-prosperity of international indigenous rights and biodiversity conservation.

Implementing Corporate ESG and Sustainable Development

CAL is a pioneer in the international aviation industry for sustainability, continuously surpassing its own sustainability performance and achievements. It maintains a robust corporate environmental and energy risk management mechanism, leading the way by releasing an independent report on the Task Force on Climate-Related Financial Disclosures (TCFD) and integrating the TNFD framework, along with commitments to corporate forest and biodiversity conservation. To advance towards the goal of "Net Zero Carbon Emissions by 2050," CAL has set short, medium, and long-term carbon reduction targets for the transportation industry in Taiwan and proposed a comprehensive pathway to achieve net zero emissions by 2050, actively implementing carbon reduction operations in the air and on the ground. CAL continues to deepen its international cooperation with the IAGOS-PGGM Pacific Greenhouse Gas Monitoring program. As a global leader in conducting cross-Pacific regional climate observations, the airline combines collected data to contribute to international climate change research, strengthen its collaboration with international air route management, and enhance climate resilience.

At the same time, CAL adheres to the sustainable development philosophy of "giving back to society and creating social value" by continuously promoting a variety of social welfare and environmental conservation programs. These initiatives include support for disadvantaged seniors and children, collaboration between domestic industries and academia, volunteer teaching, public sports camps, beach clean-ups, tree planting, and the adoption of conservation species such as the pangolin at the Taipei City Zoo. Additionally, the company supports the Satoyama Initiative to promote the preservation of indigenous tribal culture and economic development, thereby actively fulfilling its corporate social responsibility.

CAL is committed to creating a comprehensive and happy enterprise, with talent development being one of our key objectives. The company provides holistic care and concern for employees, focusing on education, training, and development, promoting employee benefits, enhancing communication, and ensuring a healthy and safe workplace to foster a happy working environment. At the same time, to strengthen the competitiveness of talent in Taiwanese society, we continue to be part of "TALENT, in Taiwan: Sustainable Action Alliance for Taiwanese Talent," adhering to the principles of DEI to emphasize gender equality in the workplace. We have also introduced female pants uniforms, balanced employees' family lives, and increased the proportion of female supervisors within the company, all while cultivating diverse aviation professionals through a comprehensive training system and structure. The relevant executive performance has continuously won the "Happy Enterprise Gold Award" recognition and has also held onto the honor of "Asia's Best Corporate Employer Award" for consecutive years.

China Airlines has continued to cultivate sustainability efforts, receiving recognition from various domestic and international parties. In 2024, it achieved second place among 61 evaluated airlines globally in the DJSI rankings. It also ranked among the top 5% of the global aviation industry in the S&P Global Sustainability Yearbook assessment. China Airlines became the first airline in Taiwan to receive a "twA-" rating from Taiwan Ratings. Additionally, it has been included in the Taiwan Sustainability Index for six consecutive years and selected as a component stock of the FTSE4Good Index Series for nine consecutive years. It has won the Taiwan Corporate Sustainability Award for 11 consecutive years, with its sustainability report category receiving the highest honor of Best Report of the Year in the Service Industry for three consecutive years. CAL has taken concrete actions such as establishing a Corporate Sustainability Committee ahead of its industry peers, linking ESG sustainability governance overseen by the Board of Directors, implementing a systematic framework for environmental/energy risk management, promoting the enhancement of ISO operating systems, and obtaining third-party certifications. These efforts have positioned CAL as a leader in driving ESG sustainable development in the Taiwanese aviation industry. It was selected from over 30 participating companies as the inaugural recipient of the Ministry of Transportation's ESG Transport Sustainability Gold Award, the sole airline to receive this recognition.

Look into the Future at the Peak

In response to the rapidly changing global aviation operating environment and the increasing emphasis on sustainability by stakeholders, we have updated and released our core values of "Believe we can always do better," our mission of "Create more wonderful moments through flying," our vision of "Leading Asia-Pacific, Flying Worldwide," and our service declaration of "China Airlines Quality Starts from the Heart." We are committed to the highest standards of flight safety and sustainability, continuously introducing new-generation energy-efficient fleets, expanding our global route network, and deepening our alliance partnerships to enhance market competitiveness and operational resilience. We will accelerate digital transformation; strengthen information security governance and personal data protection; enhance the passenger flight experience with technology, humanity, and culture; refine and diversify passenger and cargo transportation services; and actively seize global high-value business opportunities. We will continue to uphold the core principles and policies of ESG sustainable development, properly address and respond to stakeholders' expectations, expand and deepen the ESG sustainable governance of the Group, implement climate governance and net-zero carbon goals, increase the use of SAF, collaborate with supply chain partners to promote value chain sustainable transformation, and comprehensively enhance ESG performance.

We believe that only through prudent management, innovation, embracing the Earth, and caring for society can we create more operational revenue and ESG sustainable development dividends, to create and pass on a happy and sustainable living environment for our generation and the next.

• 9^th time selected for FTSE4Good Index Series

  Selected in the FTSE4Good Index Series for nine consecutive years(ten consecutive years in 2025).

• 3^rd time selected for the MSCI Index

  Has been selected as a constituent stock of the MSCI Global Standard Indexes since 2022.

• 6^th time in GCSA Award

  CAL won the Sustainability Reporting Award for the sixth time and won Gold Class in 2024.

• 11^th time receiving Taiwan Corporate Sustainability Award

  CAL has been honored with the Taiwan Corporate Sustainability Award for 11 consecutive years, and has also won the Best Annual Report (Service Industry) in the Sustainability Reporting category for three years in a row.

• 6^th time selected for FTSE4Good TIP Taiwan ESG Index

  Selected in the FTSE4Good TIP Taiwan ESG Index for the sixth time.

• 8^th time in the Sustainability Yearbook

  CAL achieved the second highest score in ESG among global airlines in 2024, making it the only Taiwanese airline to be selected eight times in the Sustainability Yearbook. In 2025, it was honored as a top 5% airline in the Sustainability Yearbook.

• Long-term credit rating upgraded to "twA-" by Taiwan Ratings

  Taiwan Ratings announced in October 2024 the upgrade of CAL's long-term credit rating to "twA-", with the short-term credit rating remaining at "twA-2" and a stable outlook.