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

Through the "Sustainable Development Strategy" and "Value Creation Model", China Airlines assists stakeholders to grasp the true corporate value of China Airlines and review China Airlines' promotion of sustainable performance. Combine sustainability strategies to formulate short, medium and long-term goals to implement sustainable development of the company.

We adopted "Safety" and "Governance" as the basis for sustainable development and incorporated our main strategies of "Fleet and Network", "Products and Services", and "Group Business" to continue to enhance CAL's “Brand Awareness” in the minds of customers. We initiated three action plans to enhance the brand image including "Smart Resilience: resilient operations to combat extreme weather and changes in the business environment", "Localized Global Operations: taking Taiwan's local culture to the world", and "Youth Innovation: connect with the innovative generation with youthful thinking". The action plans reflect our lasting commitment to environmental, social, and economic / governance. The six sustainability strategies also support the UN's SDGs and we establish implementation strategies to create a strategic framework for sustainable development.

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


Business Model




Value Creation

Title Output Outcome
Financial
  • Operating revenue (TWD million): 161,675.53
  • Revenue increased by 15%，compared to 2022, the EBITA rate increased by 15% compared to 2022.
Manufactured
  • New aircrafts in the fleet in 2023: 777F:2
  • 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:73 / cargo destinations:31
  • Number of passengers/cargo worldwide : (RPK/FRTK): RPK:33,808,000,000 / FRTK:5,337,104,000
  • The company currently has 10 777-300ER passenger aircraft, which have significant fuel-saving benefits. The 777F introduced this time is a freighter of the same series. It is equipped with the same GE90 engine as the passenger aircraft, which helps optimize engine management and reduce maintenance costs. After flight crew members complete differentiated training, they can perform flight missions, which will help the crew utilize their manpower flexibly
  • Achieved the target punctuality rate of high-level repair and maintenance service (100%)
  • Number of new destinations: 1 passenger destination / no cargo destination in 2023
  • Compared to 2022, global passenger transport increased by 610% while cargo transport decreased by16.11%
Intellectual
  • Number of newly launched products or services: 777F:2
  • Revenue / number of passengers (seats) created by improved products or services: Continuing work related to the design and R&D of cabin equipment for 16 new 787 aircraft project, the first aircraft will be delivered in Q1 2025. / Cost of IFE system software for the 10th A321neo new aircraft
  • Number of cost-saving patents: 191
  • Number of patents obtained: 1
  • Number of R&D employees trained: 356
  • 787 new aircraft project: The cabin team, together with Boeing, cabin equipment manufacturers and cabin design consultants, has successively completed technical meetings such as PDR/CDR to discuss and confirm detailed specifications such as cabin systems, seats, and video systems for the 16 aircraft, as well as related tasks and issues such as research and development of customized projects.
  • A321neo new aircraft project: Provide in-flight audio and video services for passengers on the 10th aircraft (1620 seats)
  • Manpower saved 165 man-month / year Saved TWD 284.1 million in cost
  • CAL's intellectual property rights were continuously maintained
  • Enhance information manpower skills to support the recent development or update of various company information systems (191 projects)
Human
  • Number of new employees: 1,003
  • Eemployee retention rate: Newly hired/recruited employee retention rate in 2023 Retention rate 89.93% / The retention rate of employees hired before 2023 is 91.09%
  • Sustainable aviation fuel: 30582L
  • Employee turnover rate: 5.85%
  • Total number of employee training hours: 527,525hrs
  • Total number of middle or top management training hours: 6,254hrs
  • The number of new employees in 2023 will increase by 679 compared with 2022
  • Compared with 2022, despite the impact of the post-epidemic recovery and the large-scale talent recruitment in other industries such as technology and tourism, the employee retention rate has remained stable (about 90%)
  • Compared with 2022, despite the impact of the post-epidemic economic recovery and the large-scale talent recruitment in other industries such as technology and tourism, the turnover rate only increased slightly by 0.89% and remained stable.
  • Handle relevant education and training support operations required
  • Provide job-related education and training to improve management knowledge and build consensus
Natural
  • Electricity consumption: 33,061 MWh
  • Carbon emission: 6,068,798tons
  • Waste reduction: 4,561,588kgs
  • Water consumption: 118.18 thousand tons
  • Number and percentage of green buildings: 2 / 66.67%
  • Solar photo voltaic investment: Power generated: 119 MWh
  • Sustainable aviation fuel: 30,582 liters
  • Electricity saved through a sound energy management system: 1,490,810kWh
  • Carbon emission reductions achieved through various carbon reduction measures: 54,834tons
  • Waste reduction achieved through improved waste management: 468,533kgs
  • Water saved through continuous water management: 4,108tons
  • Elevator power recycled with power regeneration system: 12,111 kWh
  • Annual solar power generation replacement of electricity consumption: 119 MWh
  • Annual carbon reduction: 77.4tons
Social and Relationship
  • Number of charitable activities: 16
  • Number of beneficiaries: 1,285,784
  • Number of community activities: 17
  • Number of participants: 2,425
  • Number of sponsorships: 49
  • Number of brand promotion: 4
  • Result of brand promotion: 118,301,930
  • Passenger transport customer satisfaction rate: 93.6
  • Number of passenger transport customer complaints: 16,925
  • Freight customer satisfaction rate: 91.6
  • Number of cargo customer complaint: 0
  • Number of industry-academia partnerships: 15
  • Number of industry-academia partnership projects: 2
  • Number of industry-university collaborators: 40
  • Coverage of sustainable supply chain ESG management: 96%
  • The overall proportion of supplier ESG audits in the past three years: 100%
  • China Airlines fully understands that corporate social responsibility is to make good use of its own resources and aviation expertise to care for the disadvantaged in society with practical actions. This year, we will continue to care for the elderly in Taoyuan who suffer from three disabilities (disability, loss of dependence, and dementia) during the three festivals and provide care gifts. In addition, we will use the advantages of the aviation industry to organize a number of small pilot/flight attendant charity experience camps and art performances. Cultural activities for public welfare, inviting disadvantaged school children to participate. In addition, in 2023, we will continue to take actions to support agricultural production and marketing in rural areas and subscribe for 1,000 boxes of pineapple and sugar apples. We hope to use the power of the enterprise to help more people have employment and development opportunities and achieve the promise of equal social welfare.
  • China Airlines regularly goes to schools nearby the company every year to teach, passing on the company's core aviation knowledge and English teaching through specific actions, and promoting local education and international development. In addition, the company has implemented ESG sustainability actions through forest planting and beach cleaning activities. It is expected that investment in community development can form a positive cycle with China Airlines' business operations and create sustainability with society. In addition, 2 charity basketball camps, 1 charity billiards camp and 1 charity baseball camp will be held in 2023, combining sports activities with social welfare and encouraging children to bravely pursue their dreams.
  • As a member of the world's citizens, China Airlines should shoulder social responsibilities and respond to international rescue every year. In 2023, it joined the Chiayi Christian Hospital's "Myanmar Overseas Chinese Miss Liao's Overseas Humanitarian Medical Treatment" project and cooperated with many Taiwanese medical- related companies to continue their love and play a role in Corporate strength demonstrates the humanitarian spirit of international rescue. In addition, it also continues to sponsor and support the development of Taiwan's tourism activities, sports athletes and events, promotes the international visibility of Taiwan's local brands, and co-creates, prospers, and benefits with society.
  • The company has been selected as a company in the Dow Jones Sustainability Emerging Markets Index (DJSI) for eight consecutive years, ranking the second highest score in the global aviation industry. It also has outstanding achievements in waste management, water-saving strategies, passenger safety, sustainable marketing and brand recognition, Obtained full marks in the business ethics, transparency and reporting question groups, and produced a print release of the 2023 Dow Jones Sustainability Index award-winning print release for publicity; at the same time, in response to the SkyTeam Alliance's second sustainable flight challenge, on 5/22, it passed CI753/ As a sustainable demonstration flight, CI754 flight from Taipei to Singapore successfully reduced 150 metric tons of carbon emissions, which is equivalent to afforestation of 375 basketball courts. The performance increased 15 times compared with last year. The outstanding performance was recognized by SkyTeam and won the "Best Inflight Amenities Supply" "Best Inflight Supply Chain Award" and "Best Adopted Solution Award".
  • Started sailing to Da Nang (DAD) in Vietnam and Prague (PRG), the capital of the Czech Republic. Prague is China Airlines' exclusive direct flight and the sixth direct flight destination in China Airlines' European route network (Amsterdam/Rome/London/Frankfurt/ Vienna/Prague), in 2023, a total of "Da Nang Flight Launch Print Release", "Prague Flight Launch Print Advertisement - Charles Bridge Chapter, Old Town Square Chapter, Flight Attendant Chapter", "Direct Flight to Six Major European Cities Print Advertisement", " Promotional video for the launch of Prague flights and direct flights to Europe", "Direct flights to Asia-Pacific print ads - Hanoi, Bali, A350, Taiwan 101", etc., covering TV, print, Internet, outdoor media, actively helping domestic and foreign Business units promote the China Airlines brand.
  • In response to the rapid recovery of air passenger traffic, China Airlines has participated in many travel exhibitions, including the KTF Kaohsiung International Travel Show and the ITF Taipei International Travel Show, two major domestic travel exhibitions. Among them, the ITF Travel Show is equipped with a new naked-eye 3D technology screen that is the highlight of the entire event. The most interesting thing is the augmented reality game, which attracts visitors to queue up.
  • China Airlines takes "Travel the world with your attitude" as the main theme of its annual publicity and launches a series of brand image promotions, including "Profound Story Collection" pre-community activities, "This moment makes travel more profound" image advertising video, " Start your profound journey" social activities and physical activities, which are similar to those during the ITF Travel Exhibition, have also created positive buzz.
  • Starting from 2023, passenger satisfaction will be used to replace passenger satisfaction. In 2023, a total of 1,488,558 passenger satisfaction questionnaires were sent, accounting for approximately 15.9% of the total number of passengers carried, and the passenger satisfaction ratio was 93.6.
  • As borders between Taiwan and various countries will be gradually lifted from 2023, the tourism market will begin to recover. A total of 9,596,559 passengers will be carried in 2023, an increase of 8,098,370 passengers or 540.54% compared to 1,498,189 passengers in 2022; the number of customer complaints in 2023 (16,925 cases) will increase by 12,745 times compared with 2022 (4,180 cases), an increase of 304.90% %.
  • The Cargo Department sends customer satisfaction surveys to all freight business stations around the world every year, and encourages customers to actively feedback relevant opinions (2023 annual satisfaction will be provided after the statistics are completed in February-March). At the same time, it also strengthens the safe delivery services for diversified commodities. , expand e-commerce services, track and respond to improve customer service requirements.
  • The purpose of industry-academia partnerships was to develop national aviation professionals
  • The coverage of sustainable supply chain management increase 28% in 2023 compared to 2022
  • Supplier audits shall be conducted at least once every three years, with a 100% completion rate from 2021 to 2023

True Value of China Airlines

According to the results, CAL's traditional financial performance (EBITA) was increased by 14.5% to TWD 35.3 billion in 2023 compared to 2022. The true earnings generated in economic, environmental, and social aspects came to around TWD 43.28 billion in 2023, reflecting a increase of TWD 7.99 billion and TWD5.36 billion compared to EBITA and true earnings in 2022 respectively due to the positive impacts created by the respective increases of 66.81% and 44.48% in "Renewable energy usage" and "Waste recycling." In line with the characteristics of the aviation industry, "Greenhouse gas (GHG) emissions" and "Noise pollution" were the main sources of negative impacts. The negative impacts of GHG emissions and noise pollution were reduced by 10.82% and increased by 18.72% respectively in 2023 from 2022. The main reason for the increase in noise pollution in 2023 is that the total number of aircraft takeoffs and landings in 2023 increased by 13,773 times compared with 2022, which is approximately 28.8%. It shows CAL's active engagement in environmental sustainability initiatives such as "GHG reduction," "Noise pollution," "Renewable energy usage" and "Waste recycling." In CAL's true earnings in 2023, environmental external costs totaled TWD 12.21 billion, and positive benefits created by additional economic value and social externalities totaled TWD 20.19 billion.

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

The Company established its Corporate Sustainability Committee in 2014, and established ESG Office in 2023 as the executive secretary, the highest governance body of sustainability promotion, to take charge of the development, authorization, and update of the vision, missions, and values, and to determine and manage the Company's impact on the economy, environment, and people (including human rights). The Corporate Sustainability Committee convenes at least two meetings each year. The Chairman of the Board of Directors attends the meetings and the President of the Company serves as the chair. The Corporate Sustainability Committee comprises six task forces and a risk management team which are responsible for setting and implementing sustainable development goals to enforce the sustainable development. It also reports the results of corporate sustainability governance and ESG as well as external communication to the Board of Directors each year to strengthen the connection between the Corporate Sustainability Committee and the Board of Directors and improve sustainability actions. As the highest governance body of the Company, the Board of Directors supervises and identifies CAL's impact on the economy, environment, and people (including human rights). It also established internal control and audit for due diligence of ESG information. The Board of Directors assigns senior executives to engage stakeholders through multiple communication channels and platforms to identify the impacts, which are detailed in 1-4-1 Stakeholder Engagement. In 2023, the Board of Directors held six meetings to oversee the Company's due diligence and impact reporting on critical material events (Note), 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.

Sustainable Development Goals for Six Value Task Forces
Task Force Corresponding SDGs Corresponding Material Issues 2023 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
  • Conducting the "Sustainable Development Awareness Training" e-Learning 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
  • Conducting the "Sustainable Strategy Blueprint 2040 Target Refinement Workshop" to review the Sustainable Development Goals (SDGs) and action plans of each working group on a rolling basis
  • The Corporate Sustainability Committee reviews the progress of each working group annually
  • The working group submits progress reports on a quarterly basis
 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
  • The personal data management system is established in accordance with the law and follows the ISO international standards framework, supported by tier-1, tier-2, and tier-3 documents for implementation. The "Plan-Do- Check-Act (PDCA)" concept is employed to ensure effective control and management
  • Expanding the scope of personal data inventory in overseas branches, conducting annual self-audits at the unit level, to promptly identify errors and initiate improvements
  • Conducting regular personal data education and training for all staff according to job requirements, a total of four sessions in 2023: executive management seminars, personal data regulations and management guidelines, cybersecurity and personal data incident case studies, and new employee data protection training. Additionally, quarterly distribution of cybersecurity and personal data awareness newsletters
  • Establishing internal personal data audit standard operating procedures, planning the annual audit plan for the following year in the fourth quarter of each year, and reviewing the annual audit results at the "Information Security and Personal Information"
  • Conduct drills for information security and personal data response exercises in accordance with established procedures. These drills aim to improve the effectiveness of incident reporting mechanisms and operational procedures by providing practical exercises in reporting and response processes
  • The passenger reservation ticketing service and marketing service processes have been verified through ISO 27701 Privacy Information Management System certification
 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
88 points for Customer Satisfaction of Cargo Transport 91.6 points in 2023 for Customer Satisfaction of Cargo Transport Customer Satisfaction of Cargo Transport
89 points 90 points 90 points
Performing aviation data study and analysis for future release
  • International Civil Aviation Organization: 2023 AAPA Technical Committee
  • Domestic flight safety seminars: "2023 Aviation Security Risk 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 successfully completing the 11th IOSA recertification audit in 2022, the Company is required to undergo recertification audits every two years. We are currently preparing to undergo the newly introduced, more rigorous IOSA certification process by IATA (Risk-based IOSA) in 2024. This proactive approach ensures our continued compliance with the highest international safety standards
  • In compliance with International Civil Aviation Organization (ICAO) Doc 9859 and the company's Corporate Safety Manual (CSM), a comprehensive SMS refresher training is conducted every three years for all employees. Simultaneously, a safety culture questionnaire assessment is performed to evaluate the current state of the Company's safety culture and improve safety management. A total of 11,191 personnel from both domestic and international units have successfully completed the training
  • Organize a visit to the "Taipei Airport Control Tower" to learn and observe the daily operations and safety management practices of the organization. During the visit, participants will have the opportunity to share experiences and engage in discussions
  • To enhance understanding among our personnel regarding human factors development, cognitive interviews, and the application of investigative tools, we have invited the National Transportation Safety Board to conduct a specialized aviation seminar on the topic of "Human Factors Discussion." This seminar aims to reduce potential operational risks resulting from human errors
 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
  • Continuous improvement of disaster recovery plans and conduct annual disaster drills to enhance the Company's resilience in response to disasters
  • Upgrading domestic backbone network equipment to meet the future high-speed connectivity requirements of servers
  • Continuously use BI (Business Intelligence) reporting tools to assist business units in analyzing relevant data, uncovering key insights related to revenue enhancement, cost reduction, service improvement, and manpower savings for decision-making purposes
  • Continuously promote the application of robotic process automation to integrate manual processes such as SAP and Notes, automating tasks like invoice verification and ticket pricing to assist business units in saving manpower
  • Continuously optimize robot customer service to provide responsive assistance, integrating AI technology to develop conversational robots for internal service within business units, enhancing information query efficiency (e.g., querying complimentary ticket cabin availability)
  • Integrate the government electronic document exchange platform into the official document system, replacing paper-based operations, enhancing the efficiency of document sending and receiving, and providing real-time tracking of document processing progress
  • Digitize corporate cards to provide corporate members with more convenient services
  • 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: Provide on-site redundancy with sufficient hardware and software capacity to respond to anomalies in the core database and ensure high availability of the database
  • 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 Organizing three insider sharing sessions (covering topics such as green buildings and energy conservation, aviation meteorology, and a day in the life of a pilot.) A total of 266 individuals participated in these sessions. We have organized 10 sessions from 2021 to 2023, and we are set to complete the short-term goal of "organizing 8 expert seminars" for 2021 to 2023. Completing the establishment of all internal online training materials for all specialties The Training completion rate of online general education courses for internal candidates who applied for promotion reached 75% The Training completion rate of online general education courses for internal candidates who applied for promotion reached 100%
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 stablishing 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 28.68% in 2023 Percentage of female executives reaching
26% 27% 30%
Cooperation
  • Sustainable Supply Chain Management
 Maintain SAQ score at 87 points
  • Zero high-risk suppliers were identified in the 2023 sustainability self- assessment questionnaire
  • The average annual score was 96.64 in 2023
  • SAQ for critical Tier-1 suppliers has achieved a risk assessment ratio of 100%. All Tier-1 suppliers have reached 20%.
  • Before making a purchase, the purchasing unit should establish a selection plan that takes into account the specific case. The plan should include ESG-related issues as at least 5% of the evaluation criteria
  • Both new suppliers signing contracts and existing suppliers renewing contracts should be obligated to comply with the commitments of the "Forest and Biodiversity Conservation Commitment."
  • All critical Tier-1 suppliers have achieved a risk assessment ratio of 40%. Critical non-Tier-1 suppliers (critical tier-2) have reached a risk assessment ratio of 30%
  • Include at least 5% ESG performance in procurement evaluation criteria for 40% of purchasing units
  • 40% of suppliers signing contracts should be obligated to comply with the commitments of the "Forest and Biodiversity Conservation Commitment"
  • Assess 100% of both Critical Tier-1 suppliers and critical non- Tier-1 suppliers (Note 1)SAQ Risk Assessment
  • Include at least 5% ESG performance inprocurement evaluation criteria for 100% of purchasing units.
  • 100% of suppliers signing contracts should be obligated to comply with the commitments of the "Forest and Biodiversity Conservation Commitment"
Optimize risk management for sustainable supply chain, implement the SAQ, and audit 70% of critical tier-1 suppliers and 50% of critical tier 2 suppliers by 2023
  • Met the target of auditing 94% of the 50 key first-tier suppliers in 2023
  • Completed auditing all 5 high-risk suppliers in 2023
  • Inventory will commence in 2024
    • New (existing) suppliers signing contracts (renewing contracts) of "Forest and Biodiversity Conservation Commitment" have reached 100% compliance rate
    • Develop a supply chain improvement measures and capacity guidance plan, aiming to implement improve ment measures and 25% of capacity building measures
    • The coverage rate for the high-risk supplier review in 2024 reached 100%
  • Optimize the risk management for sustainable supply chain, assess 100% of critical tier-1 suppliers and high-risk suppliers, and create a list of critical non-tier-1 suppliers (Note)

    Note: Suppliers who provide products and services to the Company through tier-1 suppliers, and meet the current definition of critical suppliers as defined by CAL

  • Develop a comprehensive supply chain improvement measures and capacity guidance plan, aiming to implement 50% of improvement measures and 50% of capacity building measures
  • Continue to optimize risk management for sustainable supply chain, and assess 100% of critical tier-1 suppliers and high-risk suppliers.
  • Assess 30% of critical non-tier-1 suppliers (critical tier-2)
  • Develop a comprehensive supply chain improvement measures and capacity guidance plan, aiming to implement 100% of improvement measures and 100% of capacity building measures
  • Assess 100% of both critical tier-1 suppliers and critical non- tier-1 (critical tier-2) suppliers (Note 2)
  • 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 2% Used SAF 5% Used SAF 40%
Enhance the integration of decision-making mechanisms with climate-related financial information
  • Reported climate governance reports to the Risk Committee of the Board of Directors
  • Continued to publish climate-related financial information
 This particular short, medium, and long-term goal has been merged into the annual target for enhancing aviation fuel efficiency
Reducing non-recyclable general waste in ground operations by 5% compared to 2018 Due to the retrofit project in maintenance area, the general waste increased by 33% compared to 2018 Reducing non-recyclable general waste in ground operations compared to 2018
7% 12% 15%
Increasing industrial waste recycling ratio to 43% Industrial waste recycling ratio reached 58% in 2023 Increasing industrial waste recycling ratio to
45% 50% 58%
Reducing tap water withdrawl by 5% compared to 2018
  • Reduced tap water withdrawal in 2023 by 20% compared to 2018
  • Implemented equipment updates, pipeline inspections, and employee education
 Reducing tap water withdrawal compared to 2018
7% 10% 12%
Reducing paper consumption by 14% compared to 2018
  • Reduced paper consumption in 2023 by 38% compared to 2018
  • Expanded the digitalization of services and administrative operations
 Reducing paper consumption compared to 2018
30% / Using 10% of sustainably certified paper/wood items for in- flight/ground service services 50% / Using a 50% of sustainably certified paper/wood items for in- flight/ground service services 52% / Using 80% of sustainably certified paper/wood items for in- flight/ground service services
Embargoing transport of illegal wildlife and prohibiting use of illegal species as food ingredients
  • CAL did not transport illegal wild animals and plants
  • Adopting and planting Cryptomeria-like Taiwania and nurturing efforts on the land of Nanzhuang Forest Land in Miaoli County, planting 4,250 Cryptomeria-like Taiwania.
 Embargoing transport of illegal wildlife and prohibiting use of illegal species as food ingredients
Starting from 2023, participating in and implementing 2 biodiversity conservation activities or initiatives Starting from 2023, participating in and implementing 4 biodiversity conservation activities or initiatives Starting from 2023, participating in and implementing 10 biodiversity conservation activities or initiatives
Reducing in-flight waste by 25% compared to 2018 Reduction of in-flight waste in 2023 by 25% compared to 2018 Reducing in-flight waste compared to 2018
50% 65% 70%
Reducing use of single use plastic items and packaging for in-flight services by 50% Reduce use of single use plastic items and packaging for in-flight services by 50% 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%
Reducing average food waste produced per person for in-flight services by 5% from 2020 level Reducing average food waste produced per person for in-flight services by 5% from 2020 level Reducing average food waste produced per person for in-flight services compared to 2023
5% 10% 25%
Society
  • Social Feedback and Engagement
 Supporting international initiatives and organizing at least one long-term charity project This year, we continue to respond to international relief efforts by sponsoring the "Little Miss. Liao's Humanitarian Medical Assistance for Overseas Chinese in Myanmar" program organized by the Chia-Yi Christian Hospital. By leveraging our corporate influence, we aim to enhance the international visibility of Taiwanese brands and collaborate with society to create mutual prosperity and goodness. 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
  • In addition to continuing the tradition of visiting six nearby elementary schools and three junior high/ elementary schools in remote areas of Taitung to provide volunteer teaching, this year we have invited the Vox Nativa Sound Children's Choir from Xinyi Township, Nantou County.The choir consists of indigenous children from tribal communities and they participated in the Little Pilot Experience Camp. Through this activity, our aim is to promote essential aviation knowledge and contribute to the improvement of education quality in Taiwan.
  • CAL organized a charity basketball camp with Jeremy Lin and the Taoyuan Pilots of P. LEAGUE+. CAL organized a charity baseball camp with baseball stars Wei-Yin Chen and Wei-Chung Wang. Both charitable activities involved the sharing of personal experience which encouraged young athletes to pursue their dreams with courage.
 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
  • In addition to our ongoing participation in and implementation of three long-term public welfare projects in 2023, we also collaborate with the Taiwan Fund for Children and Families and the ROC Foundation for Autistic Children and Adults in Taiwan on charitable public welfare projects.
  • Furthermore, we will procure food gifts from small farmers and indigenous communities to foster equal opportunities for marginalized groups and enhance resources for charitable sponsorship programs.
 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 13 directors have been elected to the 23rd Board of Directors, including five independent directors, two of whom is female. Directors are elected for three-year terms (the current term was from May 30, 2024 to May 30, 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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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 Independent - 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 Executive Director ✓ R.O.C. Female ✓ - - - Industrials ✓ ✓ - - - - - - - - - ○
Huang, Huei-Jen Director Executive Director ✓ R.O.C. Female ✓ - - - Industrials ✓ ✓ - - - - - - - - - ○
Wei, Chien-Hung 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 2.

Note 3: For experience / education, concurrent posts, expertise, field of experience, compliance of independence, and the operations of the Board of Directors, please refer to the CAL Annual Report.