
Flight carbon reduction target
0Carbon emission growth
Stabilize aviation CO2 emissions (carbon – neutral growth) with CORSIA from 2020.
1.5%Fuel efficiency
Increase average fuel efficiency by 1.5% every year by 2030.
Net 0Carbon emissions
In response to the international carbon reduction trend, China Airlines formulates and manages corporate aviation and ground carbon reduction goals (as shown in the table below) on a rolling basis, so as to contribute to the sustainability of the global environment. Moreover, CAL responds to international climate-related financial management trends and publicly signed as a supporter of Task Force on Climate-Related Financial Disclosures (TCFD) in 2018, and actively carried out operation mechanism establishment and strengthening management. We adopted warming scenarios of IPCC scientific report and the Science-Based Target (SBT) methodological connotation to analyze the enterprise entity and transformation risks and opportunities, and continue to strengthen the decision-making module. Also, internal and external engagement platforms are used to review CAL’s targets and pathways for carbon reduction as well as related results. For example, CAL involves itself in the IATA SEAC engagement of improving the carbon reduction targets for the international aviation industry.
Following the aforementioned TCFD operational objectives and framework, CAL has consolidated climate risks, opportunity issues and response strategies, and completed "CAL Climate-Related Financial Disclosure Report" and submitted it to the board of directors. After the approval of the Chairman, the key and appropriate information has been disclosed for the public.
Response Item | Specific Actions in 2021 | |
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Governance | Strengthen Climate Governance | Reported climate governance reports to the Risk Committee of the Board of Directors |
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 Risk Management Mechanisms for the Corporate Value Chain | Combined the CAL value chain and the environmental risk management mechanism, continue to implement and expand the GHG inventory and climate 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 |
Strengthen the Existing Enterprise Risk Management Mechanism | Incorporated climate factors into the existing enterprise risk management mechanism to strengthen climate risk / opportunity detection, response, and control capabilities in all units | |
Respond to International Carbon Transformation Risks |
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Implement Carbon Reduction and Energy Transformation |
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Indicator and Target | Continuously Optimize Green-house Gas Inventory | Conducted an inventory of greenhouse gas emissions ISO 14064:2018 categories 1-6 greenhouse gas emissions inventory inside and outside the organization every year to increase the quality of the data on greenhouse gas emissions |
Implement Carbon Emission Reduction Targets and KPIs | Established approximately 71 KPIs in environmental protection and carbon emission reduction and the President convened quarterly meetings of the Environmental Committee to review the outcomes of implementation | |
Attain Flight Carbon Reduction Objectives |
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Increase Fuel Efficiency |
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International Air Transport Association (IATA) established three targets and four-pillar strategy for the global aviation industry.
1.5% average annual improvement in fuel efficiency
Carbon neutral growth since 2020
Net Zero Carbon Emissions by 2050
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.
Proper and effective operations
Improving flight operation procedures; making progress and
optimizing fuel-saving management; optimizing route planning and management, etc.
Improving infrastructure efficiency
Improving efficiency of air traffic management;
improving airspace structure and management efficacy; improving the infrastructure at the
airport.
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.
0Carbon emission growth
1.5%Fuel efficiency
Net 0Carbon emissions
44%Carbon reduction
50%Carbon reduction
10%RE installations
Net 0Carbon emissions
2025 2%
2030 5%
2040 40%
2050 65%
International regulations pertaining to environmental protection and carbon management (ICAO CORSIA, EU ETS, UK ETS etc.)
Energy transformation
Corporate reputation and low-carbon image
Other indirect social / economic impacts
Risks of flight safety derived from increased frequency of extreme weather (such as typhoon, heavy rainfall, and snowstorm)
Effect of the rise in average temperature and uneven rainfall intensity on the headquarters and branches
Transformation risk
Short-term and medium-term (Medium)
Business development / Passenger service / Cargo service / Flight safety / Supply chain
Transformation risk
Medium-term and long-term (High)
Business development / Passenger service / Cargo service / Flight safety / Supply chain
Transformation risk
Short-term and medium-term (Low)
Business development / Passenger service / Cargo service
Transformation risk
Medium-term and long-term (Medium)
Business development / Passenger service / Cargo service / Supply chain
Physical risk
Short-term and medium-term (Medium)
Business development / Passenger service / Cargo service / Flight safety / Supply chain
Physical risk
Long-term (Low)
Business development / Passenger service / Cargo service / Flight safety / Supply chain
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. On the other hand, China Airlines is also gradually extending the carbon management operations to group and supply chain corporations.
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.
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.
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.
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.
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.
CAL gradually cultivated the energy and environmental management of 11 group companies, through environmental investigation and communication meetings.
CAL asked value chain partners to formulate environmental and energy policies and to implement management measures with monitoring performance on critical environmental risks.
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.