As net zero carbon emissions by 2050 has become critical for both the domestic and international community, CAL implements adjustments in response to climate change and the achievement of 2050 zero carbon emission, net positive impact (NPI) of biodiversity and no Gross deforestation targets. By adjusting services, business models, and values, CAL endeavors to improve the operational eco-efficiency, coexistence with the ecology, to ensure environmental sustainability.
In response to the climate change, China Airlines manages, controls and deals with the corporate environmental risks through the Corporate Environmental Committee established and operated since 2011. China Airlines is Taiwan's first airline to adopt the Task Force on Climate-Related Financial Disclosures (TCFD) initiative and publishes an independent "Climate-Related Financial Disclosure Report" annually. In 2024, it further integrated the principles of the Task Force on Nature-Related Financial Disclosures (TNFD) with the TCFD operational mechanism to comprehensively cover the management scope of nature and climate change issues, aligning with the Kunming-Montreal Global Biodiversity Framework.
In 2019, China Airlines established a cross-departmental TCFD working group and manages climate-related risks and opportunities through the Corporate Sustainability Committee and the Environmental Committee. In 2024, it further integrated nature-related and climate-related issues by incorporating TNFD considerations, with key outcomes reported annually to the Board of Directors for oversight and management.
Following the TCFD and TNFD operational processes, China Airlines has introduced corporate management mechanisms, established internal procedures, and developed multiple concrete implementation measures across four dimensions: governance, strategy, risk management, and metrics and targets. This reflects a management spirit of continuous improvement to enhance the overall management of nature- and climate-related risks and opportunities.
China Airlines’ TCFD working group annually evaluates its global operations, assets (including aircraft and offices), supply chain, and customers. Using scenarios from IPCC AR6 (SSP1 1.9, SSP2 4.5, SSP5 8.5), IEA 2DS/B2DS, and national NDCs, it sets 1.5℃, 2℃, and 4℃ scenarios to assess the impacts of regulations, market changes, technology, competition, and environmental factors on the company’s short-, medium-, and long-term operations, finances, resources, and reputation.
China Airlines applies the TNFD framework and LEAP methodology, using biodiversity databases and risk analysis tools to identify spatial risks at its home and foreign stations, directly managed group companies, top 10% key first-tier suppliers by procurement value, and downstream partners (e.g., airport hotels). Focusing on its Taoyuan Airport headquarters, the company maps the entire transportation service process—including planning, procurement, supply, flight, and maintenance—covering its own operations and upstream/downstream activities. Using ISO 14001 life cycle thinking and environmental criteria, along with TNFD scenario setting, LEAP tools, and ecological classifications, China Airlines analyzes scenarios up to 2035, considering ecosystem changes, national policies, and customer awareness. Two scenarios—“Ahead of the Game” and “Go Fast or Go Home”—are used to identify direct drivers, ecosystem service impacts and dependencies, assess related risks and opportunities, and determine their significance. The company then develops response strategies, management indicators, and operational targets, managing high-risk upstream services and products through a Supplier Code of Conduct and sustainable green procurement mechanisms.
CAL utilizes the Biodiversity Risk Filter (BRF), a biodiversity assessment tool developed by the international organization WWF, in conjunction with integrated tools developed by the Forestry and Nature Conservation Agency to overlay maps of biodiversity hotspots, important wildlife habitats, wildlife conservation areas, nature reserve and conservation areas, and state-owned forestry areas for verification purposes. The results indicate that none of our operational locations in Taiwan are located within or adjacent to the aforementioned areas. Although approximately 3% of our operational sites outside Taiwan are classified as being in high biodiversity risk areas, it should be noted that the current BRF tool categorizes the aviation industry under the transport services sector, which may not fully align with the actual operations and potential impacts of airlines. Upon detailed examination and assessment, it has been determined that the aforementioned high-risk airport areas are all subject to strict regulations and rigorous monitoring by local governments. As for our main operational activities, they are primarily located within airport areas where we strictly adhere to regulations set by airport authorities and government bodies. Our sales outlets are situated in downtown commercial areas, which pose relatively minimal impact on local ecosystems and biodiversity. Therefore, our overall impact is considered low.
We also follow the SBTN High Impact Commodities List to identify products and services within the supply chain that have significant impacts. Among these, paper and wood products as well as coffee beans are the primary focus items for the first phase of attention and response. For sectoral hotspots, we utilize ENCORE to identify biodiversity hotspots among suppliers, incorporating these findings into subsequent impact/dependency analysis, risk/opportunity assessment, and materiality determination processes.
Among the key tier 1 suppliers, the top 10% by procurement value are all fuel suppliers. Given the impact of this industry, biodiversity impacts have drawn widespread attention. 40% of these suppliers have adopted spatial analysis tools to identify high biodiversity risk operational sites and implement corresponding mitigation measures, while 80% have promoted on-site/off-site restoration initiatives.
CAL will continue to collaborate with key suppliers, encouraging them to reduce ecological disturbances caused by their operations and allocate more resources to risk identification and mitigation measures (avoidance, minimization, restoration, compensation).
International Environmental Protection, Energy Conservation, and Carbon Management Regulations
Energy Transition
Corporate Reputation and Low-Carbon Environmental Image
Increased Frequency of Extreme Weather Events Leading to Aviation Safety Risks
Impacts of Rising Average Temperatures and Uneven Rainfall Intensity on Businesses
| Risk Type | Scenario Analysis | Impact Timelines (Severity) | Impact Level | Risks and Financial Impacts | Opportunities and Financial Benefits | Response Management Methods |
|---|---|---|---|---|---|---|
| Transition Risk-Current Legal Risk |
IEA 2DS(Aligning with the Paris Agreement Goals to Limit Global Warming to Below 2°C)
IEA B2DS(Aligning with the Paris Agreement Goals to Limit Global Warming to Close to 1.5°C) NDCs(According to the Paris Agreement, Taiwan's nationally determined contribution includes the goal of achieving net-zero carbon emissions by 2050.) |
Short, medium and long term (High / Impact on EBITDA approximately 1.9~3.7％) | Own Operations | Tighter international carbon regulations (e.g., ICAO CORSIA, EU ETS, etc.), leading to increased compliance costs. |
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| Short, medium and long term (High / Impact on EBITDA approximately 5.6％) | Own Operations / Upstream Supply Chain | The EU ReFuelEU Aviation regulation mandates that EU airports gradually increase the share of Sustainable Aviation Fuel (SAF) from 2% in 2025 to 70% by 2050, impacting the Company’s fuel procurement strategy and costs. |
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| Transition Risk-Emerging Legal Risk | Medium and long-term (Low/Impact on EBITDA < 0.1%) | Own Operations / Upstream and Downstream Supply Chain |
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| Medium and long-term (Medium/Impact on EBITDA < 1%) | Own Operations / Upstream and Downstream Supply Chain | Large electricity users are required to use renewable energy for 10% of their consumption, along with rising supplier costs |
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| Risk Type | Scenario Analysis | Impact Timelines (Severity) | Impact Level | Risks and Financial Impacts | Opportunities and Financial Benefits | Response Management Methods |
|---|---|---|---|---|---|---|
| Transition Risk-Technology Risk |
IEA 2DS(Aligning with the Paris Agreement Goals to Limit Global Warming to Below 2°C)
IEA B2DS(Aligning with the Paris Agreement Goals to Limit Global Warming to Close to 1.5°C) NDCs(According to the Paris Agreement, Taiwan's nationally determined contribution includes the goal of achieving net-zero carbon emissions by 2050.) |
Medium and long-term (Medium/Impact on EBITDA < 1%) | Own Operations (Passenger Service, Cargo Service, Flight Safety)/Upstream and Downstream Supply Chain | Limited SAF supply and high prices Hydrogen and electric aircraft technologies are still under development. |
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| Risk Type | Scenario Analysis | Impact Timelines (Severity) | Impact Level | Risks and Financial Impacts | Opportunities and Financial Benefits | Response Management Methods |
|---|---|---|---|---|---|---|
| Transition Risk-Legal Risk |
IEA 2DS(Aligning with the Paris Agreement Goals to Limit Global Warming to Below 2°C)
IEA B2DS(Aligning with the Paris Agreement Goals to Limit Global Warming to Close to 1.5°C) NDCs(According to the Paris Agreement, Taiwan's nationally determined contribution includes the goal of achieving net-zero carbon emissions by 2050.) |
Short and medium-term (Low/Impact on EBITDA < 0.1%) | Own Operations/Upstream and Downstream Supply Chain | Environmental penalties in various countries have become stricter, increasing financial risks. Increasing pressure from environmental groups over greenwashing, leading to potential greenwashing lawsuit risks. |
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| Transition Risk-Market Risk | Medium and long-term (Medium/Impact on EBITDA < 1%) | Own Operations (Passenger Service, Cargo Service) / Upstream and Downstream Supply Chain | High carbon emission flights may face additional costs and restrictions. Increasing market demand for low-carbon transportation, such as replacing short-haul flights with land transportation. |
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| Transition Risk-Reputational Risk | Short and medium-term (Low/Impact on EBITDA < 0.1%) | Own Operations (Passenger Service, Cargo Service) |
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| Risk Type | Scenario Analysis | Impact Timelines (Severity) | Impact Level | Risks and Financial Impacts | Opportunities and Financial Benefits | Response Management Methods |
|---|---|---|---|---|---|---|
| Physical Risk-Acute Physical Risk | Referring to the IPCC Sixth Assessment Report Scenarios, such as:RCP 1.9 / SSP1 1.9(Global Temperature Increase ≤ 1.5°C by 2100)
RCP 4.5 / SSP2 4.5(Global Temperature Increase of 2.4-2.6°C by 2100) RCP 8.5 / SSP5 8.5(Global Temperature Increase of 4.3-4.8°C by 2100) |
Short and medium term (Medium/Impact on EBITDA < 1%) | Own Operations (Business Development, Passenger Service, Cargo Service, Flight Safety) / Upstream and Downstream Supply Chain |
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| Risk Type | Scenario Analysis | Impact Timelines (Severity) | Impact Level | Risks and Financial Impacts | Opportunities and Financial Benefits | Response Management Methods |
|---|---|---|---|---|---|---|
| Physical Risk-Chronic Physical Risk |
Referring to the IPCC Sixth Assessment Report Scenarios, such as:RCP 1.9 / SSP1 1.9(Global Temperature Increase ≤ 1.5°C by 2100)
RCP 4.5 / SSP2 4.5(Global Temperature Increase of 2.4-2.6°C by 2100) RCP 8.5 / SSP5 8.5(Global Temperature Increase of 4.3-4.8°C by 2100) |
Long-term (Low/Impact on EBITDA < 0.1%) | Own Operations (Business Development, Passenger Service, Cargo Service, Flight Safety) / Upstream and Downstream Supply Chain |
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Aircraft technology enhancement
Ban on Single Use Plastic products or packaging materials
Illegal transport of wild animals and plants
Emissions of greenhouse gases and air pollutants (GHG / SOx / NOx) during aircraft takeoff, landing, flight processes, and noise
The emergence of new ecotourism destinations and demand
Ecological degradation leading to large-scale outbreaks of infectious diseases
Impact / Transition opportunity
Short-term
Impact / Transition risk
Short-term
Impact / Transition risk
Short-term
Impact / Physical risk
Short-term
Dependency / Transition risk
long-term
Dependency / Transition risk
long-term
China Airlines, following the IATA and national carbon reduction targets, led Taiwan’s industry peers in October 2021 to declare the goal of achieving net-zero carbon emissions by 2050. Based on this commitment, the airline has planned short-, medium-, and long-term targets for flight operations, ground operations, and the use of sustainable aviation fuel (SAF). China Airlines has been involved in SBT (Science Based Targets) carbon reduction technical discussions since 2017 and continues to engage in aviation industry emission reduction strategy discussions through the IATA platform. Building on this foundation, the airline signed on to the Science Based Targets initiative (SBTi) in 2022, setting a target to improve fuel efficiency by 26% by 2030 compared to the 2019 baseline. This target covers Scope 1 (direct emissions), Scope 3 (fuel- and energy-related activities), and Scope 4 emissions. The target was approved by SBTi in 2024, ensuring alignment with the global carbon reduction goals of the United Nations Paris Agreement.
To achieve its long-term carbon reduction goals, China Airlines promotes five core carbon reduction strategies: improving fuel efficiency (such as implementing various fuel-saving and carbon reduction measures and continuously increasing load factors), enhancing TCFD (Task Force on Climate-related Financial Disclosures) operations and emergency response systems, advancing the use of sustainable aviation fuel, timely participation in international carbon regulation mechanisms (such as CORSIA, EU ETS, UK ETS), and timely adoption of new technologies (including continuous introduction of energy-efficient aircraft and monitoring and evaluating the development trends, cost-effectiveness, and timing for introducing hydrogen-fueled and short-range electric aircraft).
Additionally, China Airlines has introduced an internal carbon pricing mechanism to evaluate compliance with domestic and international GHG-related regulations (such as international carbon control schemes and SAF operational costs), conduct cost-benefit analyses, promote energy efficiency improvements and low-carbon investments (such as using renewable energy), and change internal behaviors. The carbon price is set at 100 euros per ton of carbon, serving as a reference for company risk analysis, operational decision-making, carbon reduction initiatives, and low-carbon investments. Through its Sustainability Committee, Environmental Committee, and TCFD operational platform, China Airlines has established a climate governance framework and reports annual progress to the Board of Directors for oversight, ensuring continuous advancement along the carbon reduction pathway.
0Carbon emission growth
26%Fuel efficiency
Net 0Carbon emissions
5%Carbon reduction
15%Carbon reduction
10%RE installations
Net 0Carbon emissions
2025 0.5%
2030 5%
2040 40%
2050 65%
Note: Due to early-stage global SAF supply and cost challenges, China Airlines adjusts its phased SAF usage target to 0.5% while maintaining its long-term commitment to SAF development and net-zero carbon goals.
To effectively manage the operational processes and performance of response strategies and their action measures, CAL also refers to TNFD, Natural Capital Protocol, Science-Based Targets Network, etc., when formulating corresponding targets and plans as well as management metrics.
| Metrics Category | Metrics Content | Targets and Plans |
|---|---|---|
| Driver | Carbon emissions and fuel procurement volume |
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| Use of food ingredients, products, and wood/paper packaging materials |
Reducing use of Single Use Plastic
(SUP) items and packaging for inflight services by 90% by 2025, and
by 100% by 2030 Embargoing transport of illegal wildlife and prohibiting use of illegal species as food ingredients |
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| Impact | Changes in operational conditions at stations (such as flooding, rainfall, high temperatures), including the frequency of abnormalities, exposure to physical risks of enterprise locations, production lines, facilities, and equipment | Starting from 2023, participating in and implementing 2, 4, and 10 biodiversity conservation activities or initiatives by 2025, 2030, and 2040, respectively. |
| Changes in the ecotourism, asset value, and annual income in regions affected by physical risks | ||
| Action | The proportion of locally sourced ingredients/ products and procurement of sustainable labels/ certifications | Using 10%, 50%, and 80% of sustainably certified paper/ wood items for in-flight/ground services by 2025, 2030, and 2040, respectively, to achieve the 2050 no gross deforestation target |
| Response item | Target and specific actions | |
|---|---|---|
| Governance | Strengthen climate governance |
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| Enhance management supervision and cross- departmental operations |
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| Strategy | Enhance TCFD capabilities |
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| Climate response strategies and management |
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| Participate in important engagements |
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| Risk management | Strengthen the existing enterprise risk management mechanism |
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| Strengthen the existing enterprise risk management mechanism |
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| Respond to international carbon transition risks |
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| Implement carbon reduction and energy transition |
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| Metrics and targets | Continuously optimize GHG inventory |
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| Implement carbon emission reduction targets and KPIs |
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| Attain flight carbon reduction objectives |
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| Increase fuel efficiency |
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| Response item | Target and specific actions | |
|---|---|---|
| Governance | Integrate nature-related issues with corporate governance structure and process |
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| Strengthen stakeholders engagement |
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| Strategy | Identify short-, mid- and long-term nature-related dependencies/impacts and risks/opportunities |
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| Identify potential scenario for nature-related issues |
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| Establish nature-related risks/opportunities response strategy |
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| Identify and disclose locations of assets and/or activities that pose higher risks to biodiversity |
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| Risk management | Establish the process for identification and assessment of nature-related dependencies, impacts and risks/opportunities |
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| Establish the process for management and monitoring of nature-related dependencies, impacts and risks/opportunities |
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| Metrics and Targets | Establish the metrics to evaluate nature-related dependencies, impacts and risks/opportunities |
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| Establish the targets to assess and manage nature-related dependencies, impacts and risks/opportunities |
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| Monitor and review the achievement rate of nature-related dependencies, impacts and risks/opportunities targets |
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Energy transition is a critical key for the aviation industry to achieve net-zero carbon goals, but this requires support and collaboration across the entire industry chain to be effective. As a sustainability leader in the transportation sector, CAL is the first airline in Taiwan to incorporate sustainable aviation fuel (SAF). Since 2017, CAL has been blending SAF on new A350-900 and A321neo aircraft flights (from 2017 to 2022, the only airline in Taiwan to do so). Additionally, CAL’s subsidiary, Mandarin Airlines, used 30% SAF on its new ATR aircraft flights in 2024, continuing to implement the group’s SAF policy.
In 2023, CAL became the first Taiwanese airline to join an international SAF program established by global oil companies and blockchain platforms. It introduced a corporate procurement model for SAF and provides traceable and verifiable carbon reduction reports. CAL collaborates with supply chain partners and cargo customers to participate in the SAF program, using SAF that can reduce carbon emissions by over 90% compared to traditional jet fuel, jointly lowering the carbon footprint. Between 2023 and 2024, CAL continued promoting commercial demonstration flights adding SAF through the SkyTeam “The Aviation Challenge," accumulating operational experience and reducing approximately 72 tons of CO2e in direct greenhouse gas emissions (Scope 1) and indirect emissions from customer transportation (Scope 3). CAL will continue inviting supply chain companies to support the global sustainable energy transition, strengthening corporate net-zero collaboration and creating win-win carbon reduction outcomes.
Looking ahead to 2025, CAL will continue monitoring domestic and international SAF technology and supply market developments. Based on global SAF visits and procurement experience, the airline will timely assess the feasibility of domestic and international supply, policy requirements, and operational conditions. CAL actively participates in related government and producer initiatives and collaborations, pragmatically advancing SAF procurement strategies to achieve short-, medium-, and long-term goals.
Since 2015, CAL has calculated and updated the carbon footprint of its own international flights based on the calculation method announced by ICAO and IATA, and it has also been disclosed on the company’s corporate social responsibility website. In 2016, CAL formulated the Product Category Rule (PCR) to establish the operating guidelines for aviation industry to calculate carbon footprint. In 2017, CAL assisted Mandarin Airlines (MDA) to complete the carbon footprint calculation and received certification of the demonstrative route from Songshan to Kinmen in accordance with the carbon footprint guidelines established by the Environmental Protection Administration (Taiwan EPA) and the said PCR. MDA of CAL Group is the world‘s first airline that receives both ISO 14067 3rd party certificate and the carbon label granted by Taiwan EPA. In 2020, MDA with helps and supports from CAL further obtained the Taiwan EPA “carbon reduction label”, making it the world’s first airline to receive this label. In 2021, MDA was highly appreciated by the low-carbon review committee of the Taiwan EPA for its promoting low carbon products, and was selected as the year’s Low Carbon Product Merit Award.MDA is the only award-winning aviation group in Taiwan to date.
Note: Mandarin Airlines calculated the carbon footprint of all domestic routes (learn more).
"ECO Travel Carbon Offsetting Program" is a voluntary carbon offset service introduced by CAL in collaboration with internationally renowned environmental organizations. It allows passengers and cargo owners to calculate the carbon footprint generated by their flights or transportation using a carbon footprint calculator. They can then purchase carbon offset credits from carefully selected, high-quality, and sustainable projects managed by professional organizations. These credits are used to offset the carbon emissions, making the journey of passengers and cargo carbon-neutral or zero-carbon emissions, thus contributing to environmental conservation efforts. CAL has also extended this initiative to its group subsidiaries, Mandarin Airlines and Tigerair Taiwan, making it the only airline in Taiwan to promote carbon offset programs for domestic flights and low-cost carriers.
