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China Airlines Releases First Climate-Related Financial Disclosure Report

2021 Jan 28

China Airlines has issued its first “Climate-Related Financial Disclosure Report”. Expanding the scope of corporate risk management to encompass climate-related issues in accordance with the carbon reduction targets set by the International Civil Aviation Organization (ICAO) and International Air Transport Association (IATA) will further strengthen the carrier’s business fundamentals. The report represents yet another milestone in sustainable development and contribution to environmental protection for Taiwanese carriers after China Airlines publicly signed on to the Task Force on Climate-related Financial Disclosures (TCFD) in 2018.

China Airlines is strongly committed to corporate social responsibility. It remains the first and only carrier in Taiwan to support the TCFD initiative and has worked actively to integrate the TCFD process into its management mechanism. In 2019, China Airlines assisted with the translation of the TCFD recommendations into traditional Chinese. Identification outcomes, response strategies, action plans, and accomplishments related to climate risks and opportunities from recent years were also compiled into a separate “Climate-Related Financial Disclosure Report” (Chinese version) for formal publication. The report presents the airline’s accomplishments in managing the risks and opportunities associated with climate change. The four core strategies of “Development of climate financial information system”, “increase fuel efficiency”, “strengthen emergency response systems” and “participation in Global Market-based Measures” devised by China Airlines effectively controls and reduces the business impact of climate change risks. The airline hopes to work with local industry, public and academic sectors to create a local development strategy for sustainable aviation fuel.

Past support for international research efforts at China Airlines include joining the IAGOS-PGGM Pacific Greenhouse Gases Measurement project in 2012, and operating the first aircraft to collect data on changes in atmospheric gases across the Pacific. Two climate observation aircraft are now in service, making China Airlines not only the first carrier in Asia to participate in the international greenhouse effect and atmospheric observation program, but also the largest in terms of fleet contribution. China Airlines is the leading carrier in Taiwan in terms of environmental management coverage as well as corporate environmental and energy risk management. Active efforts are being made to conserve energy and reduce carbon emissions including the introduction of greener next-generation aircraft. The A350 for example effectively reduces CO2 emissions by 25% per trip. The fuel efficiency team at China Airlines has set the benchmark for fuel consumption efficiency in the Association of Asia Pacific Airlines (AAPA). The ECO Travel carbon offset program raises awareness among the general public of low-carbon travel. China Airlines also cooperates with other members of the CAL Group and helped Mandarin Airlines obtain both Carbon Label and Carbon Reduction Label certification from the EPA, making it the only domestic airline to possess both certifications.

vironmental initiatives at China Airlines have repeatedly won domestic and international recognition. These include third-party certification for ISO 14001 for 9 consecutive years, third-party certification for ISO 50001 for 8 consecutive years, and inclusion in the Dow Jones Sustainability Indices (DJSI) for 5 consecutive years. In the latter, the rating for climate strategy was also the best in the global industry. Other awards include the Taiwan Corporate Sustainability Awards (TCSA) and Climate Leadership Award for 7 consecutive years, being chosen as a constituent stock by the FTSE4Good Emerging Index for 5 consecutive years, and a “Bronze Class” in the aviation industry from the Sustainability Yearbook.

China Airlines Corporate Social Responsibility website: https://calec.china-airlines.com/csr/