China Airlines Ltd

All data and information disclosed in the Report are provided by the responsible departments of CAL, proofread and examined by the Executive Secretary (Corporate Development Office), Corporate Sustainability Committee, submitted to the Chairman for review and approval, and then reported to the Board of Directors according to CAL Corporate Social Responsibility and Sustainable Development Best Practice Principles. [...] The Corporate Sustainability Committee comprises six task forces which are responsible for setting and implementing sustainable development goals to enforce the sustainable development. It also presents the CSR performance to the Board of Directors once every year to continue to strengthen the connection between the Corporate Sustainability Committee and the Board of Directors and improve sustainability actions. [...] The Corporate Sustainability Committee — Supply Chain Task Force (in charge of aviation supplies, jet fuel, in-flight catering, and service procurement as well as general affairs) [...] The meeting of Corporate Sustainability Committee, at least twice a year [...] Supply Chain Task Force reports to Corporate Sustainability Committee, every quarter [...] 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). CAL also established risk review mechanisms to perform audits, held the supplier conferences for facilitating negotiations, and reported the results to the Corporate Sustainability Committee for review every quarter.

CAL actively participates in public affairs activities, evaluating and deliberating on various public affairs initiatives based on the guidelines set by the Social Value Subcommittee of the Corporate Sustainability Committee's Public Relations Office and the guidelines of the ESG Task Force of the Sustainable Development Subcommittee of the Corporate Development Office. The evaluation considers whether the initiative contributes to ESG promotion, corporate policies, or operational goals to determine whether an invitation to join is warranted. All participation in industry policy formulation and membership in industry associations adhere to relevant regulations. To fulfill corporate social responsibility and promote industry development, CAL actively engages in activities organized by industry associations, fostering close exchanges with the industry and addressing public issues. Recommendations are provided to international organizations and the Taiwanese government. The alignment of the values of participating groups with company goals or policies is regularly reviewed and assessed. In addressing climate change, CAL adheres to the Paris Agreement and expects industry associations it participates in to do the same. In 2023, CAL continued to assess the alignment of external organizations it participates in (such as IATA, AAPA, SkyTeam, TAA, FSFT, AAPT, TCCS, etc.) with the global carbon reduction goals outlined in the Paris Agreement. CAL is committed to working with these organizations to keep global warming below 2 degrees Celsius.

Through participating in relevant international associations and alliance meetings, CAL acquires first hand data, immediately discusses response targets and strategies, and also provide data to our government and think tanks, lobbying and providing assistance for establishing industry response strategies, thereby promoting our aviation industry to align with international potential competitions in and targets for sustainable development. [...] CAL integrates the resources of Carbon Management Task Force to evaluate operating conditions, releases China Airlines Voluntary Greenhouse Gases Emission Reduction Statement and engages in Taiwan airlines' environmental sustainability issues discussion and strategy development.

Every year, CAL completes a climate governance report following the TCFD framework. The report is reviewed by the TCFD Task Force and an external expert advisory committee before being submitted to the company's management for review. It is then presented to the Board's Risk Committee for oversight of risk management strategies and decision-making reviews. [...] The Corporate Environment Committee conducts quarterly reviews of the company's overall operations (including value/supply chain), focusing on environmental/energy and climate change risk and opportunity issues, management strategies, and implementation performance. The committee also oversees the implementation of improvement measures and the effectiveness. [...] The Sustainability Committee reviews ESG risk and opportunity issues, management strategies, and performance related to the company's overall operations (including value/supply chain) at least semi-annually and timely reports to the Board of Directors. [...] Quarterly, CAL reports greenhouse gas management progress and performance to the Board of Directors. Major environmental/energy/carbon management issues are included in regular administrative meetings to ensure continuous improvement and implementation. It also integrates environmental risk management mechanisms across the corporate value chain to extend the depth and breadth of climate risk and opportunity identification and management, enhancing responsiveness to climate change and improving the competitiveness of low-carbon services.

CAL actively participates in public affairs activities, evaluating and deliberating on various public affairs initiatives based on the guidelines set by the Social Value Subcommittee of the Corporate Sustainability Committee's Public Relations Office and the guidelines of the ESG Task Force of the Sustainable Development Subcommittee of the Corporate Development Office. The evaluation considers whether the initiative contributes to ESG promotion, corporate policies, or operational goals to determine whether an invitation to join is warranted. All participation in industry policy formulation and membership in industry associations adhere to relevant regulations. To fulfill corporate social responsibility and promote industry development, CAL actively engages in activities organized by industry associations, fostering close exchanges with the industry and addressing public issues. Recommendations are provided to international organizations and the Taiwanese government. The alignment of the values of participating groups with company goals or policies is regularly reviewed and assessed. In addressing climate change, CAL adheres to the Paris Agreement and expects industry associations it participates in to do the same. In 2023, CAL continued to assess the alignment of external organizations it participates in (such as IATA, AAPA, SkyTeam, TAA, FSFT, AAPT, TCCS, etc.) with the global carbon reduction goals outlined in the Paris Agreement. CAL is committed to working with these organizations to keep global warming below 2 degrees Celsius. [...] CAL maintains politically neutrality and has never provided political lobbying fees or political donations to prevent lobbying expenditures or donations to other tax-exempt organizations that may damage the Company's reputation and incur corruption risks. CAL's policies for participation in initiatives and organizations and investment of resources and membership fees are mainly focused on international environmental protection initiatives and organizations as well as NPOs such as trade associations with the power to influence public policies in the international aviation industry. We aim to leverage our participation in initiatives and organizations to facilitate the exchange of ideas in the industry and create contributions and benefits. CAL therefore actively participates in business development, corporate sustainability, environmental and other specialized initiatives and organizations in the airline industry.

Participate in important engagements | * 1. Participate in the operation of international and Taiwan's important climate policy engagement platforms, keep abreast of policy development trends, and get hold of the right to speak. * Lobbied the industry, government, and academia to create a development strategy for sustainable aviation fuel in Taiwan. * Continued to intensify participation in the IAGOS-PGGM international climate change scientific research program, and IATA global turbulence research. * Actively engage in execute initiatives for forest and biodiversity conservation. [...] Governance | Strengthen climate governance | * Reported climate governance (including nature resources and biodiversity issue) reports to the Risk Committee of the Board of Directors. * Quarterly report on corporate and Group greenhouse gas management progress and performance to the Board of Directors.