E
Environmental Sustainability
S
Social Prosperity
G
Corporate Governance

Sustainability Governance

Based on "safety" and "governance" and combined with six major strategies, short, medium and long-term goals are formulated to implement sustainable development of the corporate.

Sustainability Governance

China Airlines is committed to its mission of “creating more wonderful moments through flying” and its vision of “Leading Asia-Pacific, Flying Worldwide.” Centered on “Safety” and “Governance,” CAL integrates its core strategies—“Fleet and Network,” “Products and Services,” and “Group Business”—to strengthen brand awareness. To enhance its sustainability image, CAL launched three action plans:

“Smart Resilience” (adapting to extreme weather and public health concern), “Localized Global Operations” (sharing Taiwan’s culture globally), “Youth Innovation” (engaging younger generations).

These six strategic directions align with the UN Sustainable Development Goals (SDGs), forming a comprehensive sustainability framework. In 2024, CAL reviewed and updated its medium- to long-term sustainability goals. The strategy is led by the Corporate Sustainability Committee under the General Manager, and overseen by the Board-level Sustainability & Risk Management Committee and the Board of Directors.

Value Creation Model

In order to embrace mutual prosperity along with our stakeholders and endeavor to create sustainable value for all stakeholders, CAL based on China Airlines’ economic, environmental, and social reporting boundaries has integrated six forms of capital (financial, natural, manufactured, intellectual, human, and social) to its corporate vision and strategy, introducing the concepts of true value to monetize the environmental and of social externality’s costs and benefits.This true value is viewed as an important reference point for corporate sustainability, and it helps all stakeholders understand the Company’s sustainability performance.

Capitals Input

(Unit : TWD million) Social and Relationship 0.71 Supplier ESG management expense 11.70 Industry-academia partnership cost 8,284.23 Customer service management cost 7.29 Brand management expense 3.85 Community activity expense 3.60 Charitable activity expense Manufactured maintenance expense 16,901.31 Infrastructure construction or procurement expense 6,318.85 Aircraft equipment maintenance or 25,860.80 Depreciation / amortization expense Natural 2.29 Sustainable Aviation Fuel 14.40 Solar photovoltaic investment 79.89 Environmental protection expense Human 4.54 Middle or top management training cost 432.57 Employee training cost 197.35 Employee benefits cost 4.83 Employment / Recruitment expence Financial 60,769.35 Capital Research and development employee training Intellectual 2.18 0.05 Investment in patents 134.00 Investment in process improvement or system research and development 391.13 Product R & D funds 6Capitals

Business Model



Stakeholder Material Issue Opportunities and Risks A i r T r a n r s a t t i n o o p B u s i n e s s A i r l i n e R e l a t e d B u s i n e s Leading Asia-Pacific,Flying Worldwide Group Business Strive for more airport usable land from government Optimize group multi-brands to satisfy different markets and passengers’ demand S u s t a i n a b l e D e v e l o p m e n t Bussiness Model Six Sustainability Strategies Action Plan Governance Safety Brand Awareness Maintain financial stability Enhance employee professionalcompetence and career goal development Ensure flight safety and sustainable capability Youth innovation Local globalization Resilient intelligence Objectives & Performance Human Resources Trust Cooperation Environment Society Corporate Governance Product and Services Digital Flight Service Increase the frequency of cabin, baggage, and general disinfection Increase revenue from cargo flights Fleet and Network Maintain partnerships withalliance members and code share partners Optimization of fleet operations Expand cargo capacity and win business opportunities Flexible adjustments of passenger routes Review market demand and monitor industry changes

Value Creation

Title Output Outcome
Financial
  • Operating revenue (TWD million): 175,182.45
  • Revenue increased by 8%，compared to 2023, the EBITA rate increased by 22% compared to 2023.
Manufactured
  • Passenger Capacity of the New Fleet: 720 seats
  • New aircrafts in the fleet: 777F:2 / A321neo:4
  • Punctuality rate of high-level repair and maintenance service: 100%
  • Number of incidents causing casualties or flight crashes: 0
  • Number of existing destinations (including new ones): passenger destinations:71 / cargo destinations:30
  • Number of passengers/cargo worldwide : (RPK/FRTK): RPK:37,267,000,000 / FRTK:5,285,064,431
  • 777 Fleet Optimization: From 2014 to 2016, ten 777-300ERs were introduced, delivering notable fuel savings. The 777F freighter, co-developed with Boeing and equipped with the same GE90 engines, supports streamlined engine management and lower maintenance costs. Differential training enables flight crew flexibility and more efficient resource deployment.
  • A321neo Advantages: The A321neo offers improved fuel efficiency, lower unit costs, extended range, greater payload, and reduced noise. Its eco-friendly design cuts carbon emissions and noise pollution, strengthening our competitiveness on regional routes.
  • The A321neo features a newly designed cabin with diverse and innovative hardware and software, highlighting China Airlines' unique brand and competitive product advantages.
  • Achieved the target for on-time delivery rate of advanced maintenance (100%).
  • In 2024, one new passenger route was added (SEA) and no new cargo routes were added.
  • RPK increased 10.2% over 2023 (33,808,000,000).
  • In 2024, cargo traffic reached 5,285 million tonne-kilometers, a decrease of 0.98% compared to 5,337 million tonne-kilometers in 2023.
Intellectual
  • Number of newly launched products or services: 777F:2 / A321neo:4
  • Revenue / number of passengers (seats) created by improved products or services: The specification definitions for the 787-9 cabin equipment are complete. The specifications for the 787-10 seats, in-flight entertainment systems, and aircraft interfaces have been completed. In addition, the A350 cabin retrofit project is currently underway.
  • Number of cost-saving patents: 89
  • Number of patents obtained: 1
  • Number of R&D employees trained: 573
  • 787-9: Completed PDR/CDR meetings for 16 aircraft, finalizing cabin system specifications and customization plans.
  • 787-10: Completed Initial Technical Coordination Meeting (ITCM) for 8 aircraft, addressing seat, IFE, and fuselage interface specifications.
  • A350 Cabin ModificationSelected cabin design consultant; design work is in progress. Pre-ITCMs completed with equipment vendors, IFE providers, and Airbus for 15 aircraft.
  • Reduction in manpower: 119.2 person-months per year.
  • Enhance IT personnel skills to support the development or update of various information systems within the company.
Human
  • Number of new employees: 864
  • Eemployee retention rate: Newly hired/recruited employee retention rate in 2024 Retention rate 91.20% / The retention rate of employees hired before 2024 is 92.49%
  • Employee turnover rate: 5.26%
  • Total number of employee training hours: 461,495hrs
  • Total number of middle or top management training hours: 9,400hrs
  • Continue to attract diverse talent to enhance the company's operational capacity.
  • Compared to 2023, the retention rate of newly hired employees increased by approximately 1.3%, and the overall employee retention rate rose by 1.4%.
  • The turnover rate decreased by approximately 0.6% compared to 2023.
  • Facilitate educational training to support operational needs.
  • Conduct job-related training and provide additional development resources to enhance management skills and build consensus.
Natural
  • Electricity consumption: 31,856 MWh
  • Carbon emission: 6,570,077tons
  • Waste reduction: 4,815,001kgs
  • Water consumption: 114.37 thousand tons
  • Number and percentage of green buildings: 2 / 66.67%
  • Solar photo voltaic investment: Power generated: 297 MWh
  • Sustainable aviation fuel: 26,641 liters
  • Electricity saved through a sound energy management system: 260,881kWh
  • Carbon emission reductions achieved through various carbon reduction measures: 47,477tons
  • Waste reduction achieved through improved waste management: 70,740kgs
  • Elevator power recycled with power regeneration system: 11,604kWh
  • Annual solar power generation replacement of electricity consumption: 297MWh
  • Annual carbon reduction: 67.2tons
Social and Relationship
  • Number of charitable activities: 20
  • Number of beneficiaries: 1,460,687
  • Number of community activities: 28
  • Number of participants: 19,925
  • Number of sponsorships: 58
  • Number of brand promotion: 4
  • Result of brand promotion: 80,810,000
  • Passenger Net Promoter Score (NPS): 72.5
  • Number of passenger transport customer complaints: 20,770
  • Freight customer satisfaction rate: 89.8
  • Number of cargo customer complaint: 0
  • Number of industry-academia partnerships: 20
  • Number of industry-academia partnership projects: 5
  • Number of industry-university collaborators: 40
  • Coverage of sustainable supply chain ESG management: 94.38%
  • The overall proportion of supplier ESG audits in the past three years: 100%
  • This year, we continued supporting elderly individuals in Taoyuan—particularly those who are disabled, dependent, or living with dementia—by providing care packages during the three major festivals. Leveraging our aviation expertise, we also held pilot and flight attendant experience camps for underprivileged children. To deepen our corporate social responsibility and community engagement, we made ongoing donations to disadvantaged groups, foundations, and children in rural areas.
  • Each year, CAL visits local schools near its offices to offer lectures, sharing core aviation knowledge and English education to support local learning and global awareness. CAL also advances its ESG goals through actions such as tree-planting sponsorships, beach cleanups, and wildlife conservation, creating shared value and promoting sustainable community development. In 2024, we held charitable basketball, table tennis, baseball, and badminton camps, combining sports with social welfare to inspire children to pursue their dreams.
  • In 2024, CAL continued its humanitarian efforts regardless of nationality, actively leveraging its resources to support global relief. This included transporting supplies for the Tzu Chi Foundation after the New Year’s Day earthquake in Japan and supporting the “2nd Love Without Borders International Medical Mission” and the “31st Formosa Budding Hope Association Love Without Borders.” These efforts reflect CAL’s corporate strength and humanitarian spirit. Additionally, CAL continued to sponsor Taiwan’s tourism, arts, culture, and sports, helping raise the global profile of local Taiwanese brands.
  • Brand Management:
    1. Sustainability Promotions and Activities: In 2024, CAL released the “Tree Planting” video, SAF collaboration ads, and a sustainability commercial. At the ITF Taipei Travel Fair, reusable lighting and bilingual balloons were featured. The 2025 desk calendar used eco-friendly ink, and sustainability results were disclosed in the PR annual report.
    2. Seattle Route Marketing: To support the launch of the Seattle route, CAL rolled out a multi-channel campaign covering outdoor, TV, social media, and print, reaching 208 million impressions. Post-launch, the average load factor approached 80%, showing strong sales performance.
    3. 2024 ITF Travel Fair Results:After eight months of preparation, CAL’s booth won the “Best Pavilion Award.” The four-day event attracted 364,000 visitors, with over 8,800 participating in activities. New Dynasty member sign-ups grew by 32.3%, and 16,747 tickets were issued with total sales reaching NT$275 million.
    4. Brand Campaigns: Continuing the “Travel the World in Your Style” theme, CAL launched the “AI Sing Out Loud” campaign, ad videos, and interactive installations. YouTube and Facebook views exceeded 19.18 million (400% KPI), with a nearly 30% conversion rate for the “AI Sing Out Loud” site.
    5. Desk Calendar Promotions: In October, a press release and promotional video were published, generating 18 online news reports and over 40,000 views. The check-in event at the travel fair drew enthusiastic participation.
    6. Sports Marketing: In 2024, CAL displayed “Cheering for Team Taiwan” ads at Tokyo Dome City, receiving wide media coverage and generating strong positive engagement across social platforms.
  • According to the passenger satisfaction survey results from January to December 2024, NPS reached 72.5, exceeding the target value and showing an improvement over 2023. Looking ahead to 2025, we have raised our target from 62 in 2024 to 69, in response to passengers' recognition and expectations of China Airlines.
  • In 2024, China Airlines transported a total of 11,464,422 passengers, an increase of 1,867,863 passengers or 19.46% compared to the 9,596,559 passengers in 2023. The number of customer complaints in 2024 was 20,770, which is an increase of 3,845 complaints or 22.72% compared to 3,845 complaints in 2023.
  • Each year, the Cargo Sales, Marketing & Services Division distributes a customer satisfaction survey to all global cargo service locations, encouraging clients to actively provide feedback. Additionally, it enhances the secure transportation of diverse products, expands e-commerce services, and improves tracking and responsiveness to customer service requests.
  • All destinations continue to provide customers with relevant cargo services and are committed to further improving service quality.
  • Continuing to Develop National Aviation Talen
  • In 2024, the coverage of sustainable management among suppliers decreased by 1.62% compared to 2023. This was primarily due to a reduction in bonus questions and the doubling of the weight of compliance questions. While scores in governance and general areas slightly improved, all other areas saw a decline. However, the average score for each area exceeded 80 points.
  • Supplier audits are conducted at least once every three years, with a completion rate of 100% from 2022 to 2024.

True Value of China Airlines

In 2024, China Airlines’ traditional EBITA rose by 21.67% year-over-year to TWD 42.95 billion. When accounting for economic, environmental, and social factors, the company’s true earnings reached TWD 54.79 billion—TWD 11.84 billion higher than EBITA and TWD 11.50 billion more than in 2023.

Key environmental improvements included a 22.12% increase in renewable energy use and a 73.29% rise in green fare adoption. However, greenhouse gas emissions grew by 6.97% due to a 15% increase in flight operations, while noise pollution fell by 7.35%. These impacts remain the primary environmental challenges. Despite this, China Airlines actively advanced sustainability initiatives, including noise control, renewable energy, and green fares. Fleet renewal and fuel-saving efforts led by the Aircraft Fuel Management Task Force helped offset emissions growth. In total, environmental externality costs in 2024 were estimated at TWD 13.07 billion, while economic and social value contributions reached TWD 24.91 billion.

24,852,190 2,787.68 35,297,486 13,075,227 42,947,703 43,284,688 1,188 62,741.04 Earning (EBITA) 2024True Earning 2023True Earning Economic Value-Add • Green procurement • Public expenditure • Employee expenditure and benefits (Unit : TWD thousand) Environmental Externalities Waste disposal • Noise pollution • Water resource consumption • Air pollution & emissions • GHG emissions • Green fares • Waste recycling • Water recycling • Renewable energy usage • Social Externalities • Cooperative education • Employee training • Occupational injuries Increase 11.84 billion True Earning Increase 11.50 billion 54,789,006

Note：Materiality Metrics for External Stakeholders: Quantitative assessment of positive and negative impacts on external stakeholders.

Sustainable Development Goals

To show its determination to create value for stakeholders, CAL has established a sound sustainable management mechanism in line with 17 Sustainable Development Goals (SDGs) officially launched by the United Nations(UN) in 2016, hoping to maximize the benefits for the country, society, and all stakeholders. As a corporate citizen, CAL supports the UN's SDGs and focuses its sustainable development on 13 SDGs in accordance with the SDG Compass and related sustainability reports of the International Civil Aviation Organization (ICAO), the Air Transportation Action Group (ATAG), and the international transportation industry.

Corporate Sustainability Management

China Airlines established the Corporate Sustainability Committee in 2014 as its highest-level sustainability governance body. In 2024, the Corporate Development Office set up the Sustainability Development Center, which acts as the committee’s executive secretary and appointed a Chief Sustainability Officer to lead sustainability efforts. The Center oversees decision-making and manages impacts on the economy, environment, and people, including human rights. To enhance ESG governance, the board-level Sustainability & Risk Management Committee was formed in 2025 to strengthen oversight. In 2024, the Corporate Sustainability Committee, chaired by the President under the Chairman's guidance, held three meetings. It comprises six value-based working groups and a risk management group. In line with CAL’s Sustainable Development Practice Code, the committee formulates goals and integrates strategies to drive sustainable development, reporting twice a year to the board-level committee and the Board of Directors.

As the highest governance body, CAL’s Board of Directors oversees and identifies external economic, environmental, and social (including human rights) impacts, conducting due diligence through internal controls and ESG audits. The Board assigns senior executives to engage in dialogue with stakeholders to address the identified impacts through multiple communication channels and platforms, which are detailed in 1-4-1 Stakeholder Engagement. In 2024, the Board of Directors held nine meetings to oversee the Company’s due diligence and impact reporting on critical material events (Note 2), security management, operational risk management, financial conditions, greenhouse gas inventory and verification, climate governance report, human rights risks, and information security and personal risks, and to review the results of stakeholder engagement. CAL also established the performance evaluation procedures for the Board of Directors’ supervision of the Company’s impact on the economy, environment, and people (including human rights). It convenes at least two meetings of the Remuneration Committee each year to regularly review the overall compensation and benefits policies of senior executives.

Note 1：

(The 2024 corporate ESG sustainability governance achievements were reported to the Board of Directors on January 13, 2025, and the contents of the 2024 Sustainability Report were presented at the third quarter meeting of the Sustainability & Risk Management Committee on August 6, 2025, and approved by the Board of Directors on August 8, 2025.)

Note 2：

Critical and significant events include those that are communicated to stakeholders through the grievance mechanism. Material incidents that are verified are communicated and reported to the Board of Directors based on the nature of the events.

Board of Directors Sustainbility & Risk Management Committee Corporate Sustainability Committee Risk Management Team Executive Secretary Corporate Development Office — ESG Center Human Resources Division Human Resources Maintenance Division Occupational Safety & Health Department Corporate Communication Office Society Volunteers Club Corporate Development Office Environment Environmental Committee Information Security & Personal Data Protection Division Trust Information Management Division Maintenance Division System Operation Contral Division Flight Operations Division Corporate Safety Office Inflight Supply Chain & Marketing Division Ground Services Division Cabin Crew Division Cargo Sales, Marketing & Services Division Passenger Sales & Marketing Division Ground Services Division Cooperation Inflight Supply Chain & Marketing Division Finance Division Administration Division Maintenance Division Corporate Development Office Corporate Governance Secretarial Office, Board Of Directors Corporate Safety Office Legal & Insurance Division General Audit Office Finance Division Highest Level Second Level Management in Charge Coordinating Division& Support Divisions ( Chairman, Directors ) ( President ) ( Senior Vice Presidents ) Report the progress of each task force, once every quarter Convene the meeting, at least twice a year Report the progress and performance to the Sustainability & Risk Management Committee and Board of Directors, twice a year
Sustainable Development Goals for Six Value Task Forces
Task Force Corresponding SDGs Corresponding Material Issues 2024 Objectives Illustration of Progress Key Results and Performance Short-term Goals (2025) Medium-term Goals (2030) Long-term Goals (2040)
Foundation for Sustainable Development
  • Governance and Business Integrity
  • Financial Performance
  • Fleet Development and Innovation
 Achieving 100% of sustainability tasks for the year and implementing the employee awareness improvement plan
  • From 2018 to 2024, a total of 3 "Sustainable Development Awareness Training" e-Learning sessions have been held for all employees of the China Airlines Group.
  • Provided employee CSR awareness training and added mandatory online courses for new employees
 Regularly reporting progress on CSR tasks to the Corporate Sustainability Committee and holding at least two CSR training sessions for affiliates Disclosing sustainable development of airline transport affiliates Continuously cooperating with regulatory authorities and international trends to comprehensively disclose the boundaries of the group
Implementing operating mechanisms for SDGs
  • Conduct a rolling review of each working group's SDGs sustainability goals and action plans annually.
  • The working group submits progress reports on a quarterly basis, and the Corporate Sustainability Committee reviews the implementation progress of the task force annually.
  • CAL has held a "Sustainable Flight Seminar" in December 2024, inviting corporate customers to participate and share China Airlines' net zero strategy and practices to help industry partners build sustainable capabilities.
 Supporting industry partners in developing sustainable capacity Support international sustainability initiatives to enhance industry influence by participating in two initiatives or public associations Support international sustainability initiatives to enhance industry influence by participating in five initiatives or public associations
Trust
  • Customer Satisfaction
  • Information Security
  • Flight Safety Management
  • Privacy Management
 Implementing personal data management systems, in accordance with GDPR and personal data protection laws
  • Established a personal data management system aligned with laws and ISO standards, implemented through tiered documentation and the PDCA cycle for effective control.
  • Expanded personal data inventories at overseas branches; conducted annual unit-level self-audits to identify and correct issues promptly.
  • Held four training sessions in 2024 on personal data and cybersecurity—executive management seminars, personal data regulations and management guidelines, incident case studies, and new employee training—tailored to job roles, with quarterly awareness newsletters also issued.
  • Developed internal audit SOPs, set annual audit plans each Q4, and reviewed results via the Information Security and Personal Information Committee.
  • Conducted response drills to enhance incident reporting and handling procedures.
  • CAL's passenger sales and marketing processes in Taipei and Kaohsiung were certified under ISO 27701 Privacy Information Management System.
 Receiving ISO27701 Privacy Information Management certification in the collection, processing, and use of personal data in the Passenger Service Management Procedure (including Taiwan and EU headquarters) Maintaining validity of ISO27701 Privacy Information Management certificate Maintaining validity of ISO27701 Privacy Information Management certificate; Adjustment of our personal data management system based on the regulations, international trends, and our company's operational needs to minimize the risk of data breaches
Increasing the cargo service customer satisfaction to 88.5 points 89.8 points in 2024 for Customer Satisfaction in Cargo Transport Customer Satisfaction of Cargo Transport
89 points 90 points 90 points
Performing aviation data study and analysis for future release
  • Domestic Aviation Safety Seminar: "Geopolitical Conflicts and Aviation Security Risk Seminar"
  • Co-organized the 2024 International Summit on Flight Safety Management
 Publishing the results of flight operations studies to improve the technical capacity of the aviation industry Developing innovation plans with other airlines to drive innovation momentum Expanding collaborative research projects with domestic and international transportation peers and manufacturers/suppliers to enhance environmental performance
Continuing to pass IOSA certification standards and improve the safety management system
  • After completing the 12th IOSA recertification audit in 2024, CAL is preparing for IATA’s more rigorous Risk-based IOSA in 2026 to maintain alignment with top international safety standards.
  • To promote a safety culture and reinforce 2024 safety policies, targets, and performance indicators, CAL completed SMS training for 11,396 employees across all units.
  • Continuing the spirit of experiential learning, we organized a visit to Taiwan High Speed Rail Corporation for practical experience sharing and exchange. This was aimed at enhancing our personnel's understanding of air traffic controllers' responsibilities, air traffic control operations, and the safety management system of the Air Traffic Control Center. The goal is to improve awareness of the purpose and related tasks of air traffic control across various departments, thereby reducing potential operational risks caused by human error.
 Continuing to pass IOSA certification standards and improve the safety management system (SMS) Continuing to pass IOSA certification standards and improve the company safety culture In consideration of safety regulations and international requirements, we continue to pass rigorous safety certification standards
Continuously strengthening the development of core business information systems and conducting annual disaster recovery drills, while actively promoting innovative application services to increase revenue, reduce costs, and enhance daily work efficiency for the Company
  • CAL continuously improves its disaster recovery plan, conducts annual drills, and enhances offsite recovery facilities to address geopolitical risks and ensure business continuity.
  • Upgraded domestic backbone network equipment to meet future high-speed connectivity needs.
  • Strengthened compliance with the Cyber Security Management Act by enhancing the ICT security framework and implementing an Endpoint Security Protection Mechanism to monitor, detect, block, and preserve evidence of intrusion incidents.
  • Applied BI tools for data analysis (e.g., duty-free sales, overseas living costs, fuel usage) to support business decisions on revenue growth, cost control, and service improvement.
  • Promoted process automation with RPA, automating tasks like SAP/Notes integration, maintenance invoice dispatch, and SABRE fare verification to reduce manual workload.
  • Optimized chatbot services and developed internal AI assistants (e.g., cabin crew assistant, IT helpdesk) to enhance service and query efficiency.
  • Deployed generative AI tools (e.g., contract templates, smart cargo checks, safety compliance inspection, talent selection) to boost work efficiency and productivity.
  • Created AI-generated virtual characters (e.g., crew, staff, pilots) for use in videos and aviation visuals, reinforcing CAL's innovative brand image in AI application.
  • Promoting a smart airport: Establish a smart airport at Terminal 3 of Taiwan Taoyuan International Airport and increase customer satisfaction with digital and innovative technology application
  • High-speed ICT network: Set up a dedicated optical fiber and terminal system network to increase data and audio connection performance and increase operating efficiency
  • Continuous improvement of disaster recovery plans by ensuring on-site redundancy with adequate hardware and software to handle core database anomalies and maintain high system availability
  • Promoting smart tourism: Achieving horizontal and vertical integration of tourism-related industries to provide a one-stop smart travel eco-system
  • Evaluate the adoption and applications of new technologies and continuously optimize and expand the disaster recovery capacity
 Promote smart airports: Expand the application of new technologies and passenger-sharing platforms to more overseas operating terminals, and actively collaborate with airports, suppliers, or other innovative technology companies
Human Resources
  • Attracting, Cultivating, and Retaining Talent
  • Labor Relations and Communication
  • Occupational Safety and Health
 Organizing eight expert seminars that provide an opportunity for internal cross- disciplinary networking In 2024, we completed four aviation expert seminars, covering topics such as the effective use of employee tickets, flight dispatch, the intricacies of in-flight meals, and engine introductions, with a total of 527 participants. From 2021 to 2024, we successfully held a total of 14 sessions, achieving our short-term goal for 2021-2024 of completing 8 in-house aviation expert seminars. We conducted four internal aviation knowledge-sharing sessions, with a total participation of 350 people.
Note: Considering the recent changes in our company's workforce structure and the external environment, as well as the faster development of various specialties compared to previous years, we have quantified the adjustment items.		 Between 2026 and 2030, CAL will conduct a total of 15 internal aviation knowledge-sharing sessions, with cumulative participation reaching 1,800 attendees. From 2031 to 2040, CAL conducted a total of 30 internal aviation knowledge-sharing sessions, with cumulative participation reaching 3,600 attendees.
Optimizing CAL's aviation management talent training mechanisms Optimizing talent pools for different levels of management (including a master talent pool, management training courses, and advanced management courses) and related training mechanisms to develop talent for the company over the long term and lay the foundation for passing on knowledge and experience Establishing the optimal learning path for CAL’s aviation management talent pool The cumulative number of CAL's aviation management talent training reaching 150 individuals by 2030. The cumulative number of CAL's aviation management talent training reaching 400 individuals by 2040.
Percentage of female executives reaching 25% The percentage of female managers has risen to 30.33% in 2024 Percentage of female executives reaching
26% 27% 30%
Cooperation
  • Sustainable Supply Chain Management
 Maintain SAQ score at 89 points
  • Four high-risk suppliers were identified in the 2024 sustainability self-assessment questionnaire.
  • The average annual score for 2024 is 94.38 points.
 SAQ risk assessment rati
100% of critical tier-1 suppliers
20% of non-critical tier-1 suppliers		 100% of critical tier-1 suppliers
40% of non-critical tier-1 suppliers
30% of critical non-tier-1 suppliers		 100% of all tier-1 and critical non-tier-1 suppliers
Ratio of purchasing units to include at least 5% ESG performance in procurement evaluation criteria
Before making a purchase, the purchasing unit should establish a selection plan that takes into account the specific case 40% of purchasing units 40% of purchasing units
Ratio of suppliers signing contracts should be obligated to comply withthe commitments of the "Forest and Biodiversity Consensensens Commitment"
Both new suppliers signing contracts and existing suppliers renewing contracts should be obligated 40% of suppliers 100% of suppliers
Assessment ratio critical tier-1 suppliers
100% of critical non-tier-1 suppliers and high-risk supplierse 30% of critical non-tier-1 suppliers 100% of both critical tier-1 suppliers and critical non-tier-1 suppliers
Establish a comprehensive supply chain improvement plan and capacity-building program.
50% implementation of improvement measures and 50% implementation of the capacity-building program. 100% implementation of improvement measures and 100% implementation of the capacity-building program. 100% implementation of improvement measures for high-risk suppliers to ensure regulatory compliance.
Environment
  • Climate Change Mitigation and Adaptation
  • Energy Management
  • Environmental protection benefits and resource management
  • Green Services and Sustainable Catering
  • Biodiversity
 Improving annual aviation fuel efficiency by 1.5% and achieving carbon-neutral growth (ICAO CORSIA CNG2020)
  • Maintain leading position among Asia Pacific airlines with fuel efficiency at
  • Implemented 12 fuel saving measures
 Improving annual aviation fuel efficiency by 1.5% and achieving carbon-neutral growth (Attain net zero emissions by 2050)(flight operations)
Used SAF 0.5% Used SAF 5% Used SAF 40%
5% 15% 60%
Renewable energy installation capacity has reached contracted
- 10% 15%
Reducing non-recyclable general waste in ground operations by 6% compared to 2018
  • Increased output in 2024 by 5% compared to 2018
  • Enhancing resource recycling through Management by Walking Around
 Reducing non-recyclable general waste in ground operations compared to 2018
7% 12% 15%
Increasing industrial waste recycling ratio to 44%
  • Industrial waste recycling ratio reached 61% in 2024
  • Renovate the temporary storage area for construction waste and optimize its layout
 Increasing industrial waste recycling ratio to
45% 50% 58%
Reducing tap water withdrawl by 6% compared to 2018
  • Reduced water consumption from ground operations in 2024 by 23% compared to 2018
  • Review and optimize the irrigation process and timing
 Reducing tap water withdrawal compared to 2018
7% 10% 12%
Reducing paper consumption by 22% compared to 2018
  • Reduced paper consumption in 2024 by 30% compared to 2018
  • Continuously promote the digitization of cabin service and air quality operation processes
 Reducing paper consumption compared to 2018
30% 50% 52%
Ratio of Sustainably Certified Paper/Wood items in Air and Ground Services
10% 50% 80%
Embargoing transport of illegal wildlife and prohibiting use of illegal species as food ingredients
  • CAL did not transport illegal wild animals and plants
  • We expanded collaboration with the Forestry and Nature Conservation Agency, engaging the Saisiyat tribe for reforestation and nurturing. The adoption area grew by 5.25 hectares, supporting sustainable tourism at Jialishan Trail.
  • Led by the Senior Vice President, the Corporate Environmental Committee participated in a tree-planting activity.
 Embargoing transport of endangered species and prohibiting use of illegal species as food ingredients
Since 2023, we at CAL have participated in and implemented a total of biodiversity conversion activities or initiatives
2 4 10
Reducing in-flight waste by 33% compared to 2018
  • Reduction of in-flight waste in 2024 by 33% compared to 2018
  • Plan and execute the cabin waste weighing project.
    Note: The original per capita in-flight meal waste target has been consolidated into the total in-flight waste target.
 Reducing in-flight waste compared to 2018
50% 65% 70%
Reducing use of single use plastic items and packaging for in-flight services by 80%
  • Reducing use of disposable plastics for in-flight services by 80.9%
  • We continue to promote a variety of alternative SUP service items, such as RPET plastic cups, headrest covers, and stainless steel cutlery for economy class.
 Reducing use of single use plastics items and packaging by 90%s Reducing use of single use plastics items and packaging for in-flight services by 100% Reducing use of single use plastics items and packaging for in-flight services by 100%
Society
  • Social Feedback and Engagement
 Supporting international initiatives and organizing at least one long-term charity project This year, we continued to respond to international relief efforts by assisting Tzu Chi Foundation in transporting disaster relief supplies following the New Year's earthquake in Japan. Additionally, we supported the "2nd Love Without Boundaries International Medical Mission" and the "31st Sprout of Hope Love Without Borders Medical Mission" through practical actions, demonstrating the corporate commitment to creating, prospering, and benefiting together with society. Supporting international initiatives and organizing at least one long- term charity project Supporting international initiatives and organizing at least one long- term charity project Establishing long-term cooperation with international relief organizations to organize at least one long-term charity project
Organize at least one education charity event in a remote rural area
  • Volunteer Teaching: In 2024, we continued visits to six nearby elementary schools and expanded to four rural schools in Lanyu, Miaoli, and Taitung, promoting core aviation knowledge and educational equity.
  • Public Sports Camps: Held a charity basketball camp with P.League+ Taoyuan Pauian Pilots; organized a charity baseball camp in Hualien with baseball stars Chen Wei-Yin, Chen Yung-Chi, and Chen Po-Yu; hosted a charity table tennis camp in Kaohsiung with table tennis master Chuan Chih-Yuan; and conducted a charity badminton camp with gold medalist badminton players Lee Yang and Lin Chun-Yi. These four charity sports camps were all inspired by the personal experiences shared by star athletes, encouraging young players to bravely pursue their dreams.
 Organize at least one educational event in rural areas to promote international educational opportunities for young students Integrate central and local resources to host at least one rural education event, ensuring equal access to education for all Partner with international education organizations to coordinate a minimum of one rural education event, thereby improving the quality of national education
Collaborating with indigenous peoples and local small farmers in Taiwan to develop public relations gifts, helping promote social equality by providing opportunities for disadvantaged groups
  • CAL purchased 326 cans of cookies produced by non-profit organizations and Indigenous communities this year to include in care packages, in collaboration with the Huashan Foundation, for elderly residents in Taoyuan who are disabled, dependent, or suffering from cognitive impairment. This mutually beneficial partnership aims to fulfill the commitment to achieving social equality and welfare.
  • Additionally, CAL has long collaborated with Taiwan Good Agriculture to offer Taiwanese snacks in the Sky Lounge, continuously promoting local agricultural products. In 2024, we introduced new Hualien local snacks, the Forget Worries Five Elements Pastry and Vanilla Red Quinoa Stick, on board. This initiative aims to increase the income of farmers and producers, promote the development of local agriculture, and bring Hualien's agricultural specialties to the skies.
 Organize an event aimed at promoting economic growth and providing employment assistance in rural areas, thereby enhancing social wellbeing Boost the efficacy of sponsorship, sponsoring an event aimed at promoting regional economic growth and providing employment assistance in rural areas, thereby enhancing social wellbeing Organize projects to support economic development in underdeveloped regions or developing countries, enhancing employment opportunities in those areas
  • Environmental
  • Social
  • Governance
Goal Exceeded
Goal Attained
Goal Not Attained

Note: The importance of material issues to CAL may correspond to more than one task force; table lists only most relevant task force.

Governance Structure

Board of Directors

As the highest governing organization at CAL, the Board of Directors is responsible for supervising and resolving crucial issues, guiding management, and formulating and complying with policies and rules in accordance with laws and regulations and with the powers granted by the shareholders' meetings. The composition of the Board of Directors is diverse. According to Article 198-1 of the Company Act, candidates for directors are nominated by the shareholders. The selection is meritbased and does not discriminate based on gender, nationality, or race, and directors have good qualities and expertise or experience in the management of international companies. The Company also considers the views of the China Aviation Development Foundation and the government. A total of 15 directors have been elected to the 23rd Board of Directors, including five independent directors, five of whom is female, accounting for 33% of the board. Directors are elected for three-year terms (the current term was from May 30, 2024 to May 29, 2027). CAL implements performance evaluation and reviews the special professional skills of directors as the basis for nomination for the next election. Meetings of the Board of Directors are held at least five times a year and may be convened at any time in case of important or urgent matters.

For experience / education, concurrent posts, expertise, field of experience, compliance of independence, and the operations of the Board of Directors, refer to the CAL's Annual Report.

Personal Data of Directors of the Board

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Board Diversity

CAL values the independence of directors. The Chairman and President are not the same individual or have relations such as spouses or relatives within the first degree of kinship. Directors also do not have relations within the second degree of kinship. To facilitate the objective performance of independent directors, CAL’s Articles of Incorporation stipulate that independent director may not serve more than three consecutive terms to ensure that independence is not reduced by extended association. There were no cases where the independent directors served for more than nine years. The average term of office of the directors is 4.6 years.
The independent directors possess the independence as stipulated by the competent authorities. In accordance with the "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies," they do not concurrently serve as independent directors for more than three other companies. Additionally, all directors do not concurrently serve as directors for more than two other listed companies. To ensure the effective implementation of board independence, CAL also evaluates the independence of external directors, setting its board independence target to be 80% of the total seats. The current independence ratio stands at 86.67%, which exceeds the target.

Status of diversity among the Company's current Board members
Name Basic Composition Industrial Experience
(Note 2) 		Professional Background Professional Competence
Title Independence (Note 1) Has Employee Status Nationality Gender Age Airlines Transport Professional services and Marketing Financial and Finance Construction and Engineering Banking, Insurance and Real estate Business and Supply Information and Technology Metal and Machinery Law Accounting Risk Management
40-50 years 51-60 years 61-70 years 71-80 years
Kao Shing-Hwang Chairman Non-Executive Director - R.O.C. Male - - ✓ - Industrials ✓ ✓ ✓ ○ - - ✓ ○ ○ - ○ ✓
Charles, C.Y., Chen Director Independent Director - R.O.C. Male - - ✓ - Industrials - ✓ ✓ ○ - ✓ ✓ ○ - - - ✓
Ting, Kwang- Hung Director Independent Director - R.O.C. Male - ✓ - - Industrials - - ✓ ✓ ✓ ✓ - - - - ○ ✓
Chen, Ta-Chun Director Independent Director - R.O.C. Male - - ✓ - Industrials - - ✓ ○ - - ✓ - - ○ - -
Chen, Maun- Jen Director Independent Director - R.O.C. Male - - - ✓ Industrials - - ✓ - ○ - ✓ ✓ ✓ - - ✓
Su,Pei-Hsien Director Independent Director ✓ R.O.C. Female ✓ - - - Industrials ✓ ✓ - - - - - - - - - ○
Huang, Huei-Jen Director Independent Director ✓ R.O.C. Female ✓ - - - Industrials ✓ ✓ - - - - - - - ✓ - ○
Huang,Shih-Hui Director Non-Executive Director ✓ R.O.C. Female - ✓ - - Industrials ✓ ✓ ✓ ○ - - ✓ ○ - - ○ ○
Wei, Chien-Hung Director Independent Director - R.O.C. Male - - ✓ - Industrials - ✓ ✓ - ✓ ○ - ✓ - - - ✓
Shon,Zheng-Yi Director Independent Director - R.O.C. Male - ✓ - - Industrials ✓ ✓ ○ ○ - - ○ ○ - - ○ ✓
Lin, Kuo-Chang Independent Director Independent Director - R.O.C. Male - ✓ - - Industrials - - ✓ - - - - - - ✓ - -
Huang,Hsieh-Hsing Independent Director Independent Director - R.O.C. Male - - ✓ - Financials - - ✓ ✓ - ○ - - - - ✓ ✓
Chang,Hsieh Gen-Sen Independent Director Independent Director - R.O.C. Female - - ✓ - Financials - - ✓ ✓ - - - - - - ✓ ✓
Hwang Yih-Ray Independent Director Independent Director - R.O.C. Male - ✓ - - Financials - - ✓ ✓ - ✓ - - - - ✓ ✓
Lin, Yu-Fen Independent Director Independent Director - R.O.C. Female - ✓ - - Industrials - - ✓ - - - - ✓ - ✓ - ✓

✓Indicates the director has the capability. ○ indicates the director has some capability.

Note 1: The Board of Directors of CAL adopts the one-track system. The independent status of external directors adopts the following criteria.It must satisfy at least 4 items in following 9 items, and at least 2 items in the first 3 items :

  1. The director must not have been employed by the company in an executive capacity within the last year.
  2. The director must not accept or have a "Family Member who accepts any payments from the company or any parent or subsidiary of the company in excess of $60,000 during the current fiscal year", other than those permitted by SEC Rule 4200 Definitions.
  3. The director must not be a "Family Member of an individual who is employed by the company or by any parent or subsidiary of the company as an executive officer".
  4. The director must not be (and must not be affiliated with a company that is) an adviser or consultant to the company or a member of the company's senior management.
  5. The director must not be affiliated with a significant customer or supplier of the company
  6. The director must have no personal services contract(s) with the company or a member of the company's senior management.
  7. The director must not be affiliated with a not-for-profit entity that receives significant contributions from the company.
  8. The director must not have been a partner or employee of the company's outside auditor during the past year.
  9. The director must not have any other conflict of interest that the board itself determines to mean they cannot be considered independent.


In addition, pursuant to Article 4 of the Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies, the Company's independent director may not concurrently serve as an independent director of more than three other public companies.

Note 2: Categorized according to the Global Industry Classification Standard (GICS) Level 1.

Functional Committees of the Board

The Board of Directors has three functional committees: the Remuneration Committee, Audit Committee, and Sustainability and Risks Management Committee. These help the Board of Directors with its supervision and guidance when meetings are convened; in accordance with the respective organizational regulations adopted by the Board of Directors, these committees exercise the powers granted them by law to review and discuss relevant issues, then regularly submit their conclusions and recommendations to the Board of Directors for resolution. Based on the powers specified in the CAL's Remuneration Committee Charter, the Remuneration Committee periodically reviews performance evaluations and remuneration policies, systems, standards, and structures for directors and managerial officers.


The Committee is composed of all independent directors and is responsible for helping the Board of Directors perform its duties, including supervision of fair presentation of CAL’s financial statements,selection (dismissal), independence and performance of CPAs, implementation of internal controls, and compliance with corporate laws and regulations, as well as other statutory tasks. The Committee regularly reviews the overall benefit and compensation policy for directors and executives. It also conducts board performance evaluation once a year. In addition, it appoints a qualified external independent institution or external expert team conduct the evaluation once every three years (last time being in 2023). CAL increases the long-term value of the management team to the company through performance evaluation and remuneration systems. The approach creates a sound corporate governance system, and helps CAL achieve sustainability goals. This committee assists the Board of Directors in reviewing CAL’s overall risk management strategies in finance, economics, flight safety, personal data, and information security, as well as the formulation, execution results, and response measures. It also reviews the formulation and execution outcomes of sustainable development policies, systems, or related management guidelines and specific implementation plans. Audit Committee Remuneration Committee Sustainability & Risk Management Committee At least once per quarter Meeting Frequency At least twice per year Meeting Frequency Once per quarter Meeting Frequency Guo-Zhang Lin, Independent Director / Hsieh-Hsing Huang, Independent Director / Hsieh Gen-Sen Chang,Independent Director / Yi-Ruei Huang, Independent Director / Yu-Fen Lin, Independent Director Members Hsieh-Hsing Huang, Independent Director (Convener) / Gen-Sen Chang Hsieh, Independent Director / Chun-Hui Ho, Committee Member (External Professional) Members Huang, Yi-Jui, Independent Director /Huang,Hsieh-Hsing, Independent Director / Lin, Yu-Fen, Independent Director / Kwang-Hung Ting, Director / Chih-Yuan Chen, Director / Kuo-Yuan Liang, Consultant Members

General Audit Office

To enforce corporate sustainability, the General Audit Office is responsible for auditing the corporate governance system to prevent fraudulent activities and corruption. The results of audits are continually followed and required to be corrected by the given time limit. The audited cases in 2024 are summarized below by category. All of the cases have been reported to the General Audit Office for approval.

Every year, the General Audit Office compiles an "overall evaluation" based on self assessments performed by individual departments and improvement of errors and irregularities identified in the annual audits. The overall evaluation is used to verify the effectiveness of the internal control system, and provides the basis for the "Internal Control Statement", which will be submitted to the board of directors for review. The General Audit Office has also established a whistle-blowing mechanism to report fraudulent activities and unethical conduct. If it is found that an employee of CAL or its affiliates is misusing his / her position to take bribes or behave in violation of his / her duties for the purpose of obtaining unlawful benefits for himself / herself or others, thereby causing losses to CAL's property or reputation, an employee or an external partner (e.g., a supplier) is encouraged to report this matter through the management mechanism or through the independent mailbox (auditor@china-airlines.com) published on the website (Stakeholder Contact- Business Conduct) and in the Annual Report (Corporate Governance Report-Corporate Governance).


Audited Cases in 2024

Type of Cases Number of Cases Audited Number of Comments Number of Corrections
Head Office 12 76 76
Branch 22 133 133
Subsidiary 9 51 51
Transaction in Derivative Products 12 None, all complying with regulations -
Procedures for Lending Funds and Making Endorsements / Guarantees 4 None, all complying with regulations -
Subsidiary Supervision and Management Operations 1 1 1
Management of the Fimancial Statement Preparation Process 1 None, all complying with regulations -
Management Operations of the Board of Directors and Audit Committee Meetings 1 None, all complying with regulations -
Acquisition or Disposal of Assets Operations 1 None, all complying with regulations -
Information Security Inspection Operations 1 5 5
Regulatory Compliance Procedures 1 None, all complying with regulations -
Management Operations of the Compensation Commitee 1 None, all complying with regulations -
Management of Related Party Transactions 1 None, all complying with regulations -

CAL Group's Operation Achievements

In 2024, the global aviation industry experienced an environment of both recovery and challenges. The Company demonstrated robust operational resilience despite the industry facing multiple influencing factors, such as geopolitical conflicts (the Russia-Ukraine war, the Israel-Palestine conflict), oil price fluctuations, supply chain bottlenecks, and rising labor costs. The Company actively responded to market changes, striving to enhance operational efficiency and profitability, achieving significant progress in both passenger and cargo markets. Global air passenger traffic rebounded strongly in 2024, providing growth momentum for the Company. In terms of cargo, driven by the booming development of cross-border e-commerce and limited sea freight capacity, the Company fully seized market opportunities by actively expanding passenger and cargo route networks and optimizing belly cargo capacity in passenger aircraft, achieving significant growth in both passenger and cargo revenue. Additionally, the Company continues its fleet renewal program by introducing new aircraft such as the A321neo and 777F, and has ordered 18 Boeing 787-9 and 6 Boeing 787-10 aircraft. The plan includes gradually phasing out the 737-800, A330-300 passenger aircraft, and 747-400F freighters. In 2024, the Company announced the procurement of 10 Airbus A350-1000 aircraft, 10 Boeing 777-9 aircraft, and 4 Boeing 777-8F freighters, with deliveries expected to begin in 2029. These aircraft will be deployed on long-haul passenger and cargo routes to North America and Europe. Through fleet optimization and renewal, flexible adjustment of passenger and cargo flights, and strategic planning of the overall operational network, the Company provides more competitive products and services to meet passenger needs, actively seizing passenger and cargo business opportunities. In 2024, the consolidated operating revenue was TWD 203.879 billion (with passenger revenue of TWD 127.919 billion, cargo revenue of TWD 60.712 billion, and other revenue of TWD 15.248 billion). The consolidated operating profit was TWD 18.202 billion, the consolidated profit before tax was TWD 19.276 billion, and the net profit attributable to the parent company after tax was TWD 14.383 billion. For detailed information, please refer to the appendix on financial performance.

Item 2021 2022 2023 2024
Passenger Revenue
 6.064 25.481 115.723 127.919
Cargo Revenue
 124.541 116.25 57.146 60.712
Other Revenue
 8.236 8.991 11.948 15.248
Consolidated Operating Revenue
 138.841 150.722 184.817 203.879
Consolidated Pretax Profit
 11.127 2.661 9.305 19.276

Unit: TWD billion

Item 2021 2022 2023 2024
Operating Revenue
 132.14 141.07 161.676 175.812
Operating Cost
 106.23 128.089 144.04 149.899
Operating Expense
 6.59 7.063 11.041 12.503
Income Tax Expense (Benefit)
 2.594 1.029 1.237 2.704
Total Salary Expenses
 16.188 14.494 16.837 21.373
Total Employee Benefits
22.596 20.465 24.458 30.498
Total Pension
 1.527 1.466 1.476 1.539

Unit: TWD billion

Sustainable Revenues

Revenues from 2021 2022 2023 2024
Sustainable Revenues
 0 2,178,132 8,948,496 5,015,963
Total Revenues
 132,140,000,000 141,069,850,000 161,675,533,000 175,182,455,000
Percentage of Sustainable Revenues
 0 0 0.0055348% 0.0028633%

Unit：TWD


The main revenue of CAL is passenger and freight air transport, so refer to the EU taxonomy's criteria 6.19 "Passenger and Freight Air Transport", Starting from 2022: Aircraft operated with SAF will also be considered as meeting the requirements of sustainable economic activities.