CAL has implemented sustainable supply chain management since 2014 and later established the Supply Chain Task Force to be in charge of sustainable supply chain management covering aviation supplies, jet fuel, in-flight catering, and service procurement as well as general affairs. In addition to setting the long-term sustainable development goals in accordance with the UN's Sustainable Development Goals (SDGs), CAL has formulated the "Sustainable Supply Chain Management policy statement and " Supplier code of conduct " in accordance with international standards, including the Global Reporting Initiative (GRI), ISO 26000, United Nations Global Compact (UNGC), and International Labour Organization (ILO). The sustainable supply chain management measures include risk review mechanisms, audits, and supplier conferences that facilitate negotiations with suppliers. These measures are reported to the Corporate Sustainability Committee for review every quarter.
CAL is the largest airline in Taiwan and operates within the air transportation industry, mainly providing international passenger and freight air transport services. In 2025, China Airlines and Mandarin Airlines jointly operated flights to 29 countries/regions with other operators, serving 191 destinations, while Tigerair Taiwan served 30 destinations across 45 routes. Compared with other industries, the aviation industry is unique in respect of safety concerns. As of the end of 2025, the CAL Group had established 26 joint ventures in business sectors including air transport, ground handling service, tourism, aerospace technology, air transport support, and logistics and warehousing. By integrating their strengths, the Group will optimize its overall quality of service, competitiveness, and value chain.
CAL has been promoting sustainable supply chain management since the beginning of 2014. Subsequently, we established a Joint Creation Value Team for important procurement categories, including "aviation materials, aviation fuel, in-flight meals, service procurement, and general business affairs" ; formulated long-term sustainability goals based on the United Nations' Sustainable Development Goals (SDGs); and established China Airlines’ Sustainable Supply Chain Management Policy Statement and Supplier Code of Conductwith reference to the Global Reporting Initiative (GRI), ISO 26000, United Nations Global Compact (UNGC), International Labour Organization (ILO), and other international standards. CAL has also established a risk investigation mechanism and performed audit operations. Continuously reviewing China Airlines' procurement procedures and existing sustainable supply chain management mechanisms every year can ensure that suppliers comply with the China Airlines Supplier Code of Conduct to avoid suppliers from violating ESG requirements. If a supplier violates the terms of the Supplier Code of Conduct, the Company may terminate the partnership. We also organize annual supplier conferences to improve the management results to the Corporate Sustainability Committee for follow-up inspection on a quarterly basis. The President is the highest accountable decision-making body of the Corporate Sustainability Committee.
CAL’s primary operations and supply chain are based in Taiwan, where suppliers account for 49% of the total number of suppliers and 37% of the total procurement amount, representing the highest global proportion. This is followed by suppliers in Asia, the Americas, Europe, and Oceania. Furthermore, CAL‘s operational bases and suppliers have not violated workers’ rights to freedom of association or collective bargaining. CAL continues to monitor whether its partner suppliers engage in any illegal practices related to forced labor and other human rights issues. Additionally, it prioritizes collaboration with suppliers that demonstrate strong performance in Environmental, Social, and Governance (ESG) criteria to ensure the stability of the supply chain.
CAL also uses the SAQ for sustainability risk assessments each year to track the identified actual social impact in the supply chain and observe whether there is potential negative social impact and regional political and economic risks. CAL’s contracts with suppliers include provisions that require suppliers to complete corrective actions within a specified period (e.g., 180 days) if they violate CAL’s Supplier Code of Conduct. Failure to comply with these corrective measures may result in termination of the partnership. CAL will continue to monitor suppliers to enhance the overall sustainability performance of the supply chain. Additionally, ESG considerations are incorporated into the new supplier selection process, and information is collected through supplier self-assessment surveys to serve as a comprehensive reference during supplier evaluation, thereby continuously strengthening supply chain sustainability management.
| Global Supplier Profile | ||
|---|---|---|
| Taiwan | 438 | 49% |
| Asia (Excluding Taiwan) |
133 | 15% |
| Americas | 206 | 23% |
| Europe | 115 | 13% |
| Oceania | 3 | 0.3% |
| Total | 895 | 100% |
Total
| Critical Tier-1 Procurement Amount | ||
|---|---|---|
| Taiwan | 37% | |
| Asia (Excluding Taiwan) |
27% | |
| Americas | 22% | |
| Europe | 13% | |
| Total | 83,061,404,851 | 100% |
| Procurement from Critical Suppliers | |||
|---|---|---|---|
| Critical Tier-1 Procurement Amount | % | ||
| Taiwan | 29,290,956,017 | 95% | |
| Asia (Excluding Taiwan) |
9,166,931,497 | 41% | |
| Americas | 11,328,534,207 | 63% | |
| Europe | 7,657,876,604 | 68% | |
| Oceania | - | 0% | |
| Total | 457,444,298,324 | ||
To strictly control supply chain sustainability risk, CAL has conducted a survey for supply chain sustainability risk and formulated our Sustainability Assessment survey (SAQ) since 2015 based on international initiatives and evaluations such as the GRI Standards, ILO, UNGC, S&P CSA, CDP, the Universal Declaration of Human Rights, and the RBA Code of Conduct. CAL also established a sustainable supply chain management system to improve the accuracy of the results of the SAQ in 2017, the functions of which include specifying the definition of critical suppliers, conducting the Sustainability Assessment survey (hereinafter SAQ), formulating regulations for review and designing relevant forms, setting different goals for short-term, mid-term, and long-term reviews, and improving the follow-up tracking mechanism, ensuring that CAL fully identifies high-risk suppliers and implements review procedures to mitigate sustainability risks in the supply chain.
| Dimension / Risk | Explanation |
|---|---|
| Environmental (E) Criterion | This includes but is not limited to waste management, energy management, and biodiversity. |
| Society (S) Criterion | This includes but is not limited to human rights and labor rights. |
| Governance (G) Criterion | This includes but is not limited to anti-corruption and bribery. |
| Country-specific Risks | Appropriate management mechanisms and monitoring measures, such as audits, should be implemented to ensure that the company's procurement does not originate from countries known for high levels of corruption, instability, political conflict, or weak regulatory capacity. |
| Product-specific Risks | This includes, but is not limited to, the acceptance of regular inspections of oil products, operations, or equipment; compliance with food safety control systems; and the provision of airworthiness certificates or quality assurance documents for each transaction related to aviation materials. |
| Industry-specific Risks | Identify suppliers that are more likely to have negative environmental, social, and corporate governance risks based on the attributes of the procurement category and strengthen management. |
| Business Relevance Category | Exclusive domestic and international suppliers, as well as key primary transaction suppliers, ensure that CAL, its products, or its operations possess value, practicality, and innovation. This approach maintains competitive advantage and actively engages in industry affairs. |
| Suppliers | 2024 | 2025 | |
|---|---|---|---|
| Total Suppliers | Number | 295 | 218 |
| Percentage of Procurement Amount | 98% | 98% | |
| Critical Tier-1 Suppliers | Number | 49 | 46 |
| Percentage of Procurement Amount | 68% | 69% | |
| Tier-1 Significant Suppliers | Number | 53 | 49 |
| Percentage of Procurement Amount | 72% | 69% | |
| Risk Assessment of Supply Chain Sustainability | 2024 | 2025 | |
| Tier-1 Suppliers Assessed Annually | 58 | 121 | |
| Significant Suppliers Assessed Annually | 38 | 30 | |
Note: The total number of suppliers is the sum of Tier-1 suppliers and critical Tier-1 suppliers.
Unit: Score
In the SAQ section, CAL conducted a survey of 46 critical Tier-1 suppliers for 2025, achieving a response rate of 59%. Analysis of the survey results shows that the total number of valid surveys for 2025 reached 121, an increase of 63 compared to 2024. The average score was 97.45, a significant increase on the previous year‘s 94.38. Upon further examination of the four survey dimensions, the scores ranged from 95 to 99, indicating that key suppliers possess a sustainable concept in all four areas.
Note: “Governance” includes ethics and regulatory compliance. “Environment” refers to environmental protection. “Society”includes human rights and labor conditions, and occupational safety and health. “General” includes quality and safety and information security.
The sustainable supply chain risk assessment score for 2025 was 97.45, a significant increase from 94.38 in 2024.
According to the 2025 supply chain SAQ analysis results, there are a total of four high-risk suppliers, primarily concentrated among aviation material suppliers. Analysis indicates that some suppliers still have room for improvement in environmental aspects and general areas, particularly in information security. Accordingly, CAL has identified key risk sources as the basis for subsequent supplier management and guidance.
In addition, CAL continuously updates its SAQs and subsequent audit plans based on SAQ analysis results. Through phased audits and management mechanisms, CAL monitors suppliers’ actual performance in environmental and social aspects to ensure that supply chain partners progressively achieve higher sustainability standards.
| Suppliers | 2024 | 2025 |
|---|---|---|
| Number of unique significant suppliers supported with development measures | 20 | 49 |
| Number of unique significant suppliers assessed via desk assessments/on-site assessments | 22(45%) | 14(29%) |
| Number of unique significant suppliers assessed | 20 | 49 |
| with substantial actual/ potential negative impacts | 4 | 4 |
| Suppliers | 2024 | 2025 |
| Number of unique significant suppliers with substantial actual/ potential negative impacts with agreed corrective action/ improvement plan | 0 | 1 |
| Number of unique significant suppliers with substantial actual/ potential negative impacts that were terminated | 0 | 0 |
| Number of On-Site and Desk Assessments | 69 | 79 |
As CAL enhances its operations, it continues to implement its environmental policy of green procurement. In 2025, the amount spent on green procurement increased by 62% compared to 2024, earning recognition from the Taoyuan City Government as an outstanding enterprise in green procurement. In addition to selecting environmentally certified products for daily use, such as stationery and office equipment (including computers), and choosing top-tier energy-efficient air conditioning and household appliances, we also allocate budgets annually to promote the electrification of outdated vehicles and equipment, balancing operational efficiency with the benefits of reducing air pollution and carbon emissions.
In addition, CAL prioritizes sustainability-related certifications when selecting passenger service items, opting for products certified by FSC/PEFC, such as thermal boarding passes, luggage name tags, coasters, double-layer tri-fold paper napkins, onboard eco-friendly hand towels, and copy paper. CAL also uses rPET pillowcases and drawstring ecofriendly trash bags to fulfill its commitment to forest and biodiversity conservation. Furthermore, CAL continues to promote systematic, digital, and mobile operations to foster green consumer awareness and reduce environmental impact at the source.
Unit: TWD million
Note: Green procurement includes Category I, II, and III products prescribed in the Regulations for Priority Procurement of Eco-Products.
CAL Group's Mandarin Airlines is committed to implementing environmental and energy management principles to ensure sustainable development. The company has also focused on procurement to practice green consumption, contributing to environmental sustainability. On May 07, 2025, Mandarin Airlines was recognized by the Taipei City Environmental Protection Bureau as an outstanding private enterprise in green procurement.
From 2021 to 2025, CAL continuously optimized its procurement strategy to increase the proportion of local sourcing and reduce its carbon footprint. By redefining and adjusting its procurement approach, the number of local suppliers grew by 56% compared to the previous year. Between 2021 and 2025, CAL actively promoted local procurement (at locations where it has operational bases and transports via CAL flights), gradually increasing the amount of local procurement and the number of cooperating suppliers. By redefining and adjusting procurement strategies, China Airlines has strengthened the resilience of the local supply chain, balancing operational efficiency with environmental goals, demonstrating its commitment to corporate social responsibility.
Unit: TWD million
Unit: Suppliers
Note 1: The statistics include the Administration Division and the maintenance park.
