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Concern for Climate Change

We actively address climate change, implement mitigation and adaptation, and aim for net-zero carbon emissions.

Concern for Climate Change

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. Moreover, CAL publicly signed as a supporter of Task Force on Climate-Related Financial Disclosures (TCFD) in 2018 and established cross-unit TCFD task force to strengthen the governance of climate also deepen the content and resilience of corresponding measurements. First independent “Climate-Related Financial Disclosure Report” (TCFD report) was published in 2020, and was constantly updated on an annual base. In 2024, nature and climate-related issues have been further integrated into TNFD consideration. Key achievements will also be reported annually to the Board of Directors for supervision and management.

CAL Climate-Related Financial Disclosure Report

CAL now has integrated the topics of nature and climate change into the its management mechanisms by adopting the operational processes of TCFD and TNFD. It has established internal operating procedures and devised specific execution measures for governance, strategy, risk management, and metrics and targets. With a spirit of continuous improvement, CAL aims to enhance overall management of nature and climate-related risks and opportunities.



Climate-related risks and opportunities

CAL evaluates the impact of various factors on its global operations, company assets (including aircraft, offices, and facilities), upstream supply chain, and downstream customers, with reference to reports such as the IPCC Sixth Assessment Report (AR6), IEA B2DS, national NDCs, etc. Scenarios at 1.5。C, 2。C, and 3。C are considered, taking into account factors such as regulatory requirements, market demands and changes, technological developments and trends, market competition, and natural environmental factors. This analysis helps assess the short, medium, and long-term impacts on the Company's global operations, financial situation, resources, and reputation.


To identify the impact and dependence relationship between the operations and biodiversity, as well as to identify risks and opportunity issues, CAL referred to the TNFD framework and LEAP methodology, and used databases and spatial risk analysis tools to take inventory of CAL's worldwide stations, group companies with direct management, top 10% of key tier-one suppliers by procurement amount, and downstream partners (such as airport hotels). Subsequently, CAL identifies significant risks or opportunity issues under different scenarios, formulates corresponding strategies and operational targets, and selects applicable management metrics accordingly.


Spatial Risk Identification

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.

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).

Climate Risk Sources

International Civil Aviation Organization (ICAO)

  • Required membership countries to sign the Greenhouse Gas Reduction Agreement.
  • Through research on the Global Market-based Measure (GMBM), the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is implemented in 2020.
  • All countries are encouraged to promote the development of sustainable aviation fuel (SAF), and incorporate the carbon-reduction benefit of SAF into GMBM (CORSIA).
  • Aircraft CO2 emission standards have been passed.

International Air Transport Association (IATA)

  • Promoting voluntary carbon reduction of aviation industry and usage of SAF.
  • Develop an environmental management technology document for the aviation industry.
  • Participate in the development of ICAO CORSIA technology regulations and promote industrial trainings

European Union (EU)

  • Civil aircraft that take off and land at airports in EU countries have all become part of the EU Carbon Emission Trading scheme.
  • Propose Green Deal and set 2050 net zero target.
  • Promote mandatory use of SAF and carbon tax.
  • Some countries regulate enterprises to disclose emissions information and promote carbon tax.
  • Promote green-washing prevention regulations.

Republic of China (Taiwan)

  • In response to the Tawain Financial Supervisory Commission's requirement, listed companies are required to complete greenhouse gas inventory, reporting and verification.

Others

  • Most countries have announced net zero emissions targets.
  • Certain countries are planning to implement carbon/SAF tax, fee, emission trading and SAF mandate.

Market operational risks

  • Business operation and aviation safety risks caused by extreme climate.
  • Competitive risks caused by the trend of low-carbon transportation.
  • Customers' net zero emissions targets and the need of low-carbon by supply chain management.
  • The improvement of low-carbon consumer awareness.
  • Increased cost for the supply chain management.
  • The change in customer behavior has caused by depletion of water resources and spread of diseases.

Climate-related issues

Type of Risk

Transformation risk

Duration of Impact (Level of Impact)

Short-term and medium-term (Medium)

Aspect of Impact

Business development / Passenger service / Cargo service / Flight safety / Supply chain

Risk and Financial Impact

  • Carbon management measures have increased, leading to an increase in compliance costs
  • Governments have levied taxes for environmental protection and energy, leading to an increase in operating costs
  • Authorities in charge of environmental protection have regulated the declaration and control of carbon emissions for the transportation sector (including air transport), leading to an increase in administrative costs
  • Countries have implemented stricter punishments for environmental violations, leading to an increase in financial risks

Opportunity and Financial Benefits

  • Improve fuel efficiency and reduce costs of energy purchase, offsets, and compliance
  • Gain extra earnings derived from the sale of carbon rights
  • Implement ICT and digitization to improve work efficiency and reduce administrative costs

Management Method

  • Enhance employee training to strengthen the ability to identify risks and opportunities
  • Communicate with the public sectors and international organizations
  • Establish a carbon emission monitoring and management system
  • Renew fleets and equipment
  • Plan and implement measures for carbon reduction
  • Follow trends of fluctuations in the carbon market and manage carbon rights

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations and environmental meetings review the countermeasures of Corporate Development Office, Corporate Safety Office, Finance Division, and business units

Type of Risk

Transformation risk

Duration of Impact (Level of Impact)

Medium-term and long-term (High)

Aspect of Impact

Business development / Passenger service / Cargo service / Flight safety / Supply chain

Risk and Financial Impact

  • Oil prices have increased, leading to an increase in oil costs
  • Long-term oil supply may be insufficient, leading to flight abnormalities
  • Promote sustainable alternative jet fuels: ICAO proposed 2% SAF targets and EU Green Deal on mandatory use of SAF
  • Incorporate carbon tax and carbon offsetting requirements to attain net zero emissions
  • Introduction of mandatory renewable energy usage
  • Collection of energy expenses and fossil fuel fees

Opportunity and Financial Benefits

  • Increasing energy efficiency and reducing energy expenditure
  • Introducing new fleets and facilities to enhance brand competitiveness and revenue
  • Using alternative fuels to enhance brand efficiency and revenue
  • Increasing the load factor and incorporating it into company’s operating strategy will help create opportunities for company’s revenue
  • Using aircrafts with better fuel-efficiency to effectively reduce operating costs
  • Using sustainable aviation fuel to meet ICAO carbon reduction requirements and respond to carbon reduction policies of certain countries
  • Investing in renewable energy to generate opportunities of carbon assets
  • Promoting the ECO Travel Carbon Offsetting Program to striving for customer base with low-carbon consumption propensity
  • The customer suggestion system (CSS) provides CAL with opportunities for continuous improvement on issues such as sustainability, environment and climate change

Management Method

  • Ensure stable supply of oil
  • Continue to evaluate the introduction of new technologies (new energy-saving flights and fuel-saving technologies)
  • Improve depreciation planning and financial management
  • Promote the domestic development of sustainable aviation fuels
  • Participate in the carbon offsetting and reduction programs of the international aviation industry
  • Continue to enhance MRV mechanisms for EU ETS and CORSIA
  • Study and perform carbon rights / credits transaction

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations and environmental meetings review the countermeasures of the Corporate Development Office, Corporate Safety Office, and the Finance Division

Type of Risk

Transformation risk

Duration of Impact (Level of Impact)

Short-term and medium-term (Low)

Aspect of Impact

Business development / Passenger service / Cargo service

Risk and Financial Impact

  • Consumers value environmental protection and carbon reduction, causing an impact on the brand trust and revenue
  • The increasing awareness of carbon reduction has changed the demand for air transport
  • Violation of regulatory requirements, resulting in penalties
  • Facing greenwashing litigation risks, impacting the company's reputation

Opportunity and Financial Benefits

  • Facilitate communication with stakeholders about CAL's concept and practice of environmental protection to pursue recognition and support and improve corporate reputation and brand value
  • Support and conform to the government's environmental policies and enhance industrial cooperation to improve corporate competitiveness

Management Method

  • Continue to strengthen communication with stakeholders and participate in scientific research and international evaluation of environmental sustainability to improve the corporate image of environmental sustainability
  • Strengthen employee training on environmental protection and energy conservation and organize related activities to improve employees' awareness of environmental protection
  • Enhance cooperation with low-carbon product suppliers at home and abroad to improve the supply chain sustainability

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations and Corporate Sustainability Committee meetings review related departments

Type of Risk

Transformation risk

Duration of Impact (Level of Impact)

Medium-term and long-term (Medium)

Aspect of Impact

Business development / Passenger service / Cargo service / Supply chain

Risk and Financial Impact

  • The increase in public health risks such as vector mosquitoes and infectious diseases, and the decrease in the attractiveness of land eco-tourism (due to changes in the ecosystem), will then reduce tourism motivation and freight demand
  • The awareness of carbon reduction has increased, leading to a decrease in air transport
  • Climate change has an impact on social economy and tourism, leading to a decrease in air transport

Opportunity and Financial Benefits

  • The change in customer behavior lead to demand in the low-carbon transportation market
  • The integration of passenger and freight transportation and the improvement of dispatching capabilities can enhance operational efficiency and profitability
  • The safety image of environmental protection and public health helps to win the recognition of the consumer market and enhance the competitiveness of enterprises

Management Method

  • Cooperate with national epidemic prevention policies to strengthen on-board disinfection, personnel protection and passenger advocacy measures to ensure the safety of humans and avoid the continuous spread of immunization and reduce the impact.
  • Launch an online booking system to increase convenience and reduce carbon emissions
  • Improve fleets and aircraft equipment and introduce the Eco Travel Carbon Offsetting program to promote green / low-carbon opportunities
  • Develop a variety of new products / services (such as direct/ non-stop flights) to improve performance and meet market needs
  • Understand low-carbon economy and transport issues and market models to create opportunities and competitiveness

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations, Corporate Sustainability and safety/risk Committee meetings review related departments, analyze material issues, and keep abreast of market trends and changes in the business environment

Type of Risk

Physical risk

Duration of Impact (Level of Impact)

Short-term and medium-term (Medium)

Aspect of Impact

Business development / Passenger service / Cargo service / Flight safety / Supply chain

Risk and Financial Impact

  • Abnormal climate, such as floods, strong winds, rain, and fog, causes changes or cancellation of flights, blockage of ground access, and obstacles to freight transport, leading to an increase in operating costs (transfer and passenger arrangements)
  • Extreme climate affects the supply of raw materials and market prosperity, leading to a decrease in passenger load and revenue

Opportunity and Financial Benefits

  • Enhance the risk forecast and capability of emergency responses to meet the customers’ demand and assist in schedule management, improve the quality of service and reputation
  • Handle customers' needs properly in case of changes of flights the results benefit royalty and customer retention
  • The integration of passenger and freight transportation and the improvement of dispatching capabilities can enhance operational efficiency and profitability

Management Method

  • Expand and strengthen operating procedures and contingency plans and enhance operator training to improve coordination and operating efficiency across the organization
  • Introduce weather professionals to increase the accuracy of weather forecasts and advance flight scheduling
  • Improve coordination and partnership in the supply chain management to ensure safe freight and passenger transport

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Senior Vice President supervises, and System Operation Control Division convenes the operations response meetings of related departments for overall management and deployment

Type of Risk

Physical risk

Duration of Impact (Level of Impact)

Long-term (Low)

Aspect of Impact

Business development / Passenger service / Cargo service / Flight safety / Supply chain

Risk and Financial Impact

  • The rise in average temperature causes energy consumption and costs to increase
  • Due to the change in rainfall pattern, droughts happen frequently and last longer, affecting water supply, quality of service, health and safety, and food safety and leading to increased costs

Opportunity and Financial Benefits

  • Change operating procedures and behaviors to reduce costs
  • Plan renewable energy to reduce the dependence on fossil fuels and increase costs due electricity shortage
  • Develop or introduce water-saving measures in manufacturing processes, such as reducing water consumption and its cost
  • The marketization of cleaning technology increases revenue
  • Improve service procedures and tools and develop new ecological attractions to increase revenue and competitiveness

Management Method

  • Set annual goals of carbon reduction and take energy-saving measures to reduce unnecessary waste of resources and energy
  • Plan renewable energy facilities and apply for renewable energy certificates
  • Improve measures for water saving, water storage, and rainfall harvest
  • Introduce the cleaning plan and obtain the agent right of regional markets
  • Strengthen the management and quality of drinking water
  • Improve service procedures and innovate the business model

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations and environmental meetings review related departments

Nature-related issues

Category: Dependency/Impact/Risk/Opportunity

Impact / Transition opportunity

Duration of Impact

Short-term

Risk and Financial Impact

  • Mitigate ecosystem disturbance and reduce associated compliance costs during aircraft take-off, landing and cruising
  • Reduce greenhouse gases and air pollutants emissions and associated compliance costs

Management Method

  • Participating in international collaborative engagement platforms to enhance dialogue
  • Considering fuel efficiency and ESG performance when purchasing aircraft
  • Engaging in ESG-related dialogues and collaborations with aircraft and equipment manufacturers

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations, planning and environmental meetings review related departments

Category: Dependency/Impact/Risk/Opportunity

Impact / Transition risk

Duration of Impact

Short-term

Risk and Financial Impact

  • Higher expenses in products and supplies design as well as procurement
  • Increase R&D and stakeholder engagement costs for exploring alternatives

Management Method

  • Inviting suppliers to sign the Supplier Code of Conduct
  • Packaging reduction, plastic/single-use alternatives, recycling and reuse, usage of recycled materials

Authority / Review

  • The President makes decisions to ensure the corporate and supply chain sustainable development
  • Products/service items design and environmental meetings review related departments

Category: Dependency/Impact/Risk/Opportunity

Impact / Transition risk

Duration of Impact

Short-term

Risk and Financial Impact

  • Raise reputational risks while illegal transportation occurs

Management Method

  • Implementing the Buckingham Palace Declaration and action plan

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations and environmental meetings review related departments

Category: Dependency/Impact/Risk/Opportunity

Impact / Physical risk

Duration of Impact

Short-term

Risk and Financial Impact

  • Disturb the ecosystem and cause associated operational losses
  • Emit pollution and raise the associated compliance costs

Management Method

  • Continue to promote fuel-saving practices
  • Using SAF
  • Continue to promote fleet renewal
  • Promoting carbon offsetting projects

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations and environmental meetings review related departments

Category: Dependency/Impact/Risk/Opportunity

Dependency / Transition risk

Duration of Impact

long-term

Risk and Financial Impact

  • The emergence of new ecotourism destinations and demand resulting from changes in ecosystems may increase and diversify revenue.

Management Method

  • Implementing carbon reduction, climate change mitigation and adaptation measures
  • Appropriately promote TCFD and TNFD operations
  • Monitoring trends in passenger/cargo supply and take appropriate responsive actions

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations and environmental meetings review related departments

Category: Dependency/Impact/Risk/Opportunity

Dependency / Transition risk

Duration of Impact

long-term

Risk and Financial Impact

  • Decrease in demand for transportation due to the outbreak of infectious diseases

Management Method

  • Improving cabin cleanliness
  • Improving the preparation and drills of epidemic prevention
  • Supporting ecological conservation to enhance diverse ecosystems and ecological resilience

Authority / Review

  • The President makes decisions to ensure the corporate sustainable development
  • Business operations and environmental meetings review related departments

Climate governance strategies and targets

China Airlines has set carbon reduction targets for flight and ground operation in accordance with the International Air Transport Association, IATA's phased three goals and four-pillar strategies (improved technology, aircraft operations, infrastructure and global market-based measure) announced in 2009. Subsequently, aligning with the IATA’s advanced target and national carbon reduction target, China Airlines further led Taiwan aviation industry to announce the 2050 net-zero emission target in October 2021.

To achieve the 2050 net zero emission target, CAL sets 5 core strategies and the carbon reduction pathway for flight and ground operations. The carbon reduction target has been approved by SBTi in 2024 Q2. In 2023.


Learn more >

IATA Three Goals

International Air Transport Association (IATA) established three goal and four-pillar strategy for the global aviation industry.

2009 - 2020

1.5% average annual improvement in fuel efficiency

2020

Carbon neutral growth since 2020

2050

Net Zero Carbon Emissions by 2050

IATA's Four-pillar Strategy

Technology

Making great advances in technology
Reducing weight of aircraft, using new composite lightweight materials, renovating fleets, developing new aircraft, engines and alternative sources of energy.

Operation

Proper and effective operations
Improving flight operation procedures; making progress and optimizing fuel-saving management; optimizing route planning and management, etc.

Infrastructure

Improving infrastructure efficiency
Improving efficiency of air traffic management; improving airspace structure and management efficacy; improving the infrastructure at the airport.

Economic Measures

Adopt effective economic instruments
Taking a sectoral approach on the principle of cost efficiency, which covers various effective economic instruments, such as offsets and emission trading etc.

CAL GHG Reduction Target

Flight carbon reduction target

0Carbon emission growth

Stabilize aviation CO2 emissions (carbon – neutral growth) with CORSIA from 2020.

26%Fuel efficiency

Reduce jet fuel GHG emissions 26% per revenue tonne kilometer (RTK) by 2030 from a 2019 base year.

Net 0Carbon emissions

Net Zero carbon emissions by 2050

Ground operation GHG reduction target

44%Carbon reduction

Reduce carbon emissions by 44% in 2025 compared to the base year (2009).

50%Carbon reduction

Reduce carbon emissions by 50% in 2030 compared to the base year (2009).

10%RE installations

Renewable Energy installations up to 10% of electricity consumption by 2030

Net 0Carbon emissions

Net Zero carbon emissions by 2050

Use Sustainable Aviation Fuel (SAF)

2025 2%

2030 5%

2040 40%

2050 65%

Biodiversity targets and metrics


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
  • Improving annual aviation fuel efficiency by 1.5%
  • Attain net zero emissions by 2050
  • Reducing carbon emissions in ground operations by 5%, 15%, and 60%, compared to 2023 levels, by 2025, 2030, and 2040, respectively
  • Increasing SAF usage by 2%, 5%, and 40%, compared to 2023 levels, by 2025, 2030, and 2040, respectively
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
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

Climate-related Risk and Opportunity Management Measures

Response item Target and specific actions
Governance Strengthen climate governance
  • Reported climate governance (including nature resources and biodiversity issue) reports to the Risk Committee of the Board of Directors.
  • Quarterly report on corporate and Group greenhouse gas management progress and performance to the Board of Directors.
Enhance management supervision and cross- departmental operations
  • Implement corporate governance and green finance in accordance with international and Taiwan government agencies (such as the Financial Supervisory Commission, Ministry of Environment, Civil Aeronautics Administration), TCFD, IFRS S2, and SASB standards.
  • Continuously improve short, medium, and long-term ESG performance through a rolling management approach.
  • Expand the ECO Travel voluntary carbon offset program for passengers.
  • Promote diversified customer environmental communication operations.
Strategy Enhance TCFD capabilities
  • Increase the comprehensiveness of quantified financial information.
  • Continue to promote cross-unit information operation platforms.
Climate response strategies and management
  • Incorporate climate and natural resource risk and opportunities into the overall company strategic planning, and implement relevant response measures
  • Integrate climate change impact issues into route planning, operational performance review, and other operations. Develop timely contingency strategies
  • Develop biodiversity policies and action plans, and implement supply chain management operations.
Participate in important engagements
  • 1. Participate in the operation of international and Taiwan's important climate policy engagement platforms, keep abreast of policy development trends, and get hold of the right to speak.
  • Lobbied the industry, government, and academia to create a development strategy for sustainable aviation fuel in Taiwan.
  • Continued to intensify participation in the IAGOS-PGGM international climate change scientific research program, and IATA global turbulence research.
  • Actively engage in execute initiatives for forest and biodiversity conservation.
Risk management Strengthen the existing enterprise risk management mechanism
  • Combined the CAL value chain and the environmental risk management mechanism, continue to implement and expand the GHG inventory and environmental (including natural resources) and energy risk assessments of key suppliers, strengthened the detection of climate risks and opportunities as well as management, and enhanced the capability of continuous operations in response to extreme weather.
  • Responded to Taiwan Financial Supervisory Commission requirements and expanded the inventory of greenhouse gas emissions of overseas branches and help subsidiaries in the Consolidated Financial Statements gradually set up greenhouse gas management operations and capabilities.
Strengthen the existing enterprise risk management mechanism
  • Incorporate climate factors into the existing enterprise risk management mechanism to strengthen climate risk / opportunity detection, response, and control capabilities in all units.
  • Combining data from the IAGOS-PGGM project with the output results of CAL 777F fleet turbulence detection algorithm software not only contributes to the United Nations and IATA's climate research but also enhances CAL own climate resilience in route management and operations.
Respond to international carbon transition risks
  • Participate in the carbon offsetting and reduction plans of the International aviation industry.
  • Continued to enhance MRV capacity for EU ETS, UK ETS, and CORSIA mechanisms
  • Studied and performed carbon rights / credit transactions.
  • Establish procedures for financial quantification and data collection to further enhance analysis of flight data on suspended flights, redirected flights, and delays due to climate impact; effectively use system operation control management data in statistical analysis to identify the stations affected by extreme weather to enhance adaptive resilience.
  • Review and formulate response strategies for compliance with the EU Fit for 55 regulations.
  • Stay up-to-date with developments in EU and global SAF mandatory policies, and regularly review and update response strategies accordingly.
Implement carbon reduction and energy transition
  • Enhanced monitoring of electricity consumption and installed dedicated electricity meters on equipment / processes with high energy consumption. Continued to perform replacement and renewal of high-energy-consuming facilities
  • Installed renewable energy facilities such as solar PV and set and achieve installed capacity targets.
  • Ensure the continuous operation of energy management systems and monitor their effectiveness.
  • Collaborate with international fuel supplier on Sustainable Aviation Fuel (SAF) promotion projects.
Metrics and targets Continuously optimize GHG inventory
  • Continued to conduct greenhouse gas emissions inventory at global operating areas in accordance with ISO 14064:2018, covering categories 1-6 greenhouse gas emissions both inside and outside the organization every year, and improve the quality of greenhouse gas emissions data.
  • Implement greenhouse gas inventory and verification for group companies and overseas branch offices.
Implement carbon emission reduction targets and KPIs
  • Declare and implement the target of achieving net-zero carbon emissions by 2050.
  • SBTi has classified CAL’s scope 1 and 2 target ambition as in line with a 1.5°C trajectory: China Airlines commits to reduce well-to-wake scope 1 and 3 jet fuel GHG emissions 26% per revenue tonne kilometer (RTK) by 2030 from a 2019 base year.
    • Non-CO₂ factors that may also contribute to aviation induced warming are not included in this target. China Airlines will publicly report its non-CO2 impacts.
    • The target boundary includes land-related emissions and removals from bioenergy feedstocks.
  • Implement short, medium, and long-term carbon reduction and Sustainable Aviation Fuel (SAF) usage targets, establishing approximately 70 environmental carbon reduction Key Performance Indicators (KPIs) annually, reviewed quarterly by the Corporate Environmental Committee convened by the President to assess implementation effectiveness.
Attain flight carbon reduction objectives
  • Continue to promote plans for fleet renewal, aircraft weight reduction, flight optimization, and O&M improvement.
  • Implement fleet plans in accordance with medium and long-term business growth.
  • Continue to improve aviation fuel economy, increase loading rate, and focus on the development of new technologies and low-carbon aircrafts for purchase appropriately.
  • Promote Sustainable Aviation Fuel (SAF) usage programs, inviting customers to support and participate collaboratively.
Increase fuel efficiency
  • Continuously promote fuel-saving operations in aviation: Improve fuel efficiency by 1.5% annually. Continued to promote aviation fuel-saving operations, to increase fuel efficiency annually.
  • Optimize route planning and adjust fleet size in response to the pandemic and international development trends.
  • Continuously promote fleet renewal operations.
Response item Target and specific actions
Governance Integrate nature-related issues with corporate governance structure and process
  • Integrate nature-related issues with TCFD report and present it to the Risk Committee of the Board of Directors along with the TCFD reporting mechanism.
Strengthen stakeholders engagement
  • Extend the engagement coverage of biodiversity issues by incorporating them into risks management surveys, analyses, assessments and response actions for group company, outstations and suppliers.
Strategy Identify short-, mid- and long-term nature-related dependencies/impacts and risks/opportunities
  • Use biodiversity assessment tool and refer to TNFD, Natural Capital Protocol, and the Science Based Targets Network to identify the dependencies/impacts and risks/opportunities related to biodiversity in our own and upstream/downstream operational activities
Identify potential scenario for nature-related issues
  • Referring to the methodology outlined in the TNFD framework, CAL considers the changes in natural ecosystems, national policies and regulations, the scale of actions, and customer awareness to identify the potential scenarios, including Scenario 1 - "Ahead of the game" and Scenario 2 - "Go fast or go home”. The analysis involves evaluating potential impacts and dependencies, identifying and assessing associated risks and opportunities, and determing their significance.
Establish nature-related risks/opportunities response strategy
  • Formulate corresponding strategies to deal with identified significant risks or opportunity issues.
Identify and disclose locations of assets and/or activities that pose higher risks to biodiversity
  • Utilize 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 identify the locations of assets and/or activities that pose higher risks to biodiversity. The outcomes have been disclosed in the Corporate Sustainability Report.
Risk management Establish the process for identification and assessment of nature-related dependencies, impacts and risks/opportunities
  • Establish the process for identification and assessment of nature-related dependencies, impacts and risks/opportunities
Establish the process for management and monitoring of nature-related dependencies, impacts and risks/opportunities
  • Integrate nature- and climate-related issues and, through the Corporate Environment Committee and the Risk Committee of the Board of Directors reporting mechanism, implement and monitor the management of nature-related dependencies/impacts and risks/opportunities.
Metrics and Targets Establish the metrics to evaluate nature-related dependencies, impacts and risks/opportunities
  • Establish driver and impact metrics to evaluate the nature-related dependencies, impacts and risks/opportunities
Establish the targets to assess and manage nature-related dependencies, impacts and risks/opportunities
  • Establish 2050 Net Positive Impact (NPI) of biodiversity and No Gross Deforestation targets, along with action metrics to assess and mange significant nature-related dependencies, impacts and risks/opportunities.
Monitor and review the achievement rate of nature-related dependencies, impacts and risks/opportunities targets
  • Starting from 2023, participating in and implementing 2, 4, 10 biodiversity conservation activities or initiatives by 2025, 2030 and 2040, respectively.
  • Through the Corporate Environment Committee, monitor and review nature-related metrics to achieve the 2050 Net Positive Impact (NPI) of biodiversity target.

Increase the Breadth and Depth of Carbon Inventory Management Operations

Since 2009, China Airlines has conducted inventory counts for international aviation fuel and domestic ground operations greenhouse gas emission volumes according to instructions of ISO / CNS 14064-1 and The Greenhouse Gases Protocol on an annual basis to monitor the overall greenhouse gas emission conditions. CAL also led Taiwan transportation industry to initiate the "Corporate Synergy Development of Carbon Management Project" in 2014, guiding and training group companies and key suppliers on carbon management. In 2023, CAL continued to promote the GHG guidance project, helping the group companies to establish comprehensive ISO 14064-1 MRV operating procedures and enhance carbon management capacity across the value chain.

2014

CAL started the Carbon Management Center–Satellite System Development Operations, covering the investigation of carbon emission data of 11 group corporations and key supplier operations in the first phase.

2015~

CAL continued to carry out 3 events of supplier greenhouse gas inventories, inspections, and reduction operations training programs, performed in-depth greenhouse gas counseling for key suppliers.

2016~

Organized annual greenhouse gas inventory training courses, to effectively control greenhouse gas emissions information of CAL group and the supply chain, thereby accumulating the supply chains' carbon management capacity.

2017~

CAL continued to collect annual greenhouse gas inventory operations of group companies and key suppliers, invite them to participate in various education and training courses, and actively implement the logics of ISO 14001:2015 taking "life cycle perspective" into consideration.

2018~

CAL started value chain environmental management operations, invite group partners to set up environmental protection seeds, and promote group partners to understand the meaning and benefits of environment/energy/carbon management.

2019~

CAL gradually cultivated the energy and environmental management of 11 group companies, through environmental investigation and communication meetings.

2020~

CAL asked value chain partners to formulate environmental and energy policies and to implement management measures with monitoring performance on critical environmental risks.

2021~

CAL continues to require value chain partners to set corporate environmental policies and management goals, deepen internal and external communication, and encourage the setting up of environmental sustainability pages to disclose the company's environmental policies, annual targets and performance.

2022~

CAL continues to strengthen and advance the GHG Measurement, Reporting, and Verification, known as MRV for the CAL group/value chain.

2023~

CAL continued to promote the GHG coaching project for the group in 2023 to ensure that each group company implements GHG management, establishes comprehensive operating procedures and inventory data, and pass internal and external verification.