E
Environmental Sustainability
S
Social Prosperity
G
Corporate Governance

Net Zero Carbon Emissions Special Column

Net Zero by 2050 and SBTi Objectives

CAL complies with the IATA and national carbon reduction targets by leading the industry in announcing the "target for achieving net zero carbon emissions by 2050" in October 2021. CAL also outlined short, medium, and long-term objectives for flight operations, ground operations, and use of sustainable aviation fuel. In addition,CAL has participated in discussions regarding SBTs since 2017 and discussed the reduction targets for the aviation industry through the IATA platform. CAL signed the Science Based Targets initiative (SBTi) in 2022 to ensure that related carbon reduction targets meet the global carbon reduction targets set in the Paris Agreement of the UN, and the targets have been approved by SBTi in 2024 Q2. In 2023, CAL and IATA have signed the CO2 Connect collaboration program, which involves sharing and collaborating on aviation carbon footprint emission data to enhance.

Net Zero Emission Strategies and 2023 Key Initiatives



Strategy, Approach, and Carbon Reduction Path for Attaining Net Zero Carbon Emissions

CAL implements 5 core strategies to achieve long-term carbon emission reduction targets (as shown in the figure above; the area of each strategy represents its contribution to carbon reduction). They include: Fuel efficiency improvement (e.g., implementation of various fuel saving and carbon reduction measures and continuous improvement of load factor), upgraded TCFD operations and emergency response systems, promotion of the use of sustainable aviation fuel (SAF), timely participation in international carbon control mechanisms (e.g., CORSIA, EU TS, and UK ETS), timely introduction of new technologies (e.g., continuous introduction of energy-efficient aircrafts, and the monitoring and evaluation of developments of hydrogen-fueled aircrafts / short-range electric aircrafts, aiming to strive for the best price and timing of entry introduction). CAL also continuously strengthens international cooperation with IAGOS-PGGM. By integrating the collected data and information, it not only contributes to international climate change research, such as that conducted by the United Nations, but also enhances CAL' own route management and operational climate resilience.

Furthermore, CAL has implemented an internal carbon pricing mechanism. In the initial stage, the carbon pricing is set at 100 euros per ton of carbon, in accordance with international carbon regulation standards, SAF, and renewable energy costs. This mechanism serves as a reference for decision-making in CAL's operations and carbon reduction initiatives. CAL has also established a climate governance framework through the Corporate Sustainability Committee, Environmental Committee, and TCFD operating platform. The achievements will be annually reported to the Board of Directors for supervision and management, ensuring consistent progress along the carbon reduction path.

SAF Collaboration Project – Invite Customers to Jointly Support the SAF Collaboration Project

Promoting energy transition is crucial for the aviation industry to achieve the net-zero carbon goal. However, this can only be effectively accomplished with the support and assistance from the entire industry chain. Being a sustainability navigator of the sustainability pioneer of the transport industry, CAL was the first among Taiwanese airline companies to participate in the Sustainable Aviation Fuel program established by international oil companies and blockchain platforms. CAL was also the first in Taiwan to introduce the SAF collaboration model for corporate procurement and provide traceable and verifiable carbon reduction reports. CAL cooperates with supply chain vendors and corporate customer partners to participate in the SAF Collaboration Project, utilizing SAF that can reduce carbon emissions by over 90% compared to traditional aviation fuel, thereby collectively reducing the carbon footprint. By 2023, CAL has decreased direct GHG emissions (Scope 1) and indirect GHG emissions from customer transportation (Scope 3) by approximately 72 metric tons of CO2e in total. CAL will continue to invite supply chain partners to actively support the global sustainable energy transition, upgrade and develop corporate net- zero cooperation ti create a win-win carbon reduction performance.