China Airlines

The company has undertaken comprehensive scenario analysis. The analysis considers the impact of each scenario across its entire business at intervals up to 2050. It also considers various climate-related scenarios including a 1.5°C scenario. The analysis considers low-carbon transformation policies, regulations and agreements, new technologies, supply chain impacts, issues for stakeholders, alternative modes of transport and costs and opportunities for the company. The results published are qualitative, but the company has considered how they will impact the company’s profit and loss, capital expenditure and cash flow.

In 2021, China Airlines set a net-zero target for 2050. However, the company does not disclose sufficient data to assess this target fully. To improve, the company should disclose its passenger and freight emissions separately. Additionally, it should make clear what percentage of the target will be achieved through offsets. China Airlines has previously set targets for its ground operations, including interim targets. The company should replicate this for its net-zero target, setting interim targets no greater than five years apart to maintain focus on short and mid-term progress in addition to committing to long-term change.

China Airlines invested USD 2.3 million in R&D in 2021. However, the company does not disclose what proportion of its R&D expenditure is invested in low-carbon vehicles and energies. The company should ensure that a significant proportion of its R&D investment is in low-carbon vehicles and fuel development. Greater disclosure would reveal if this is being met. Similarly, China Airlines is providing company-wide environmental training. While it discloses its total training costs, it does not report the proportion climate-related training represents.

The company remains a member of several International Air Transport Association (IATA) working groups which actively oppose measures to decarbonise air travel. This membership undermines the company’s positive advocacy. China Airlines is collaborating with Taiwan’s government to facilitate the country’s sustainable aviation fuel (SAF) strategy and supports the government’s Green Energy Policy. It was also Taiwan’s first airline to publicly adopt TCFD recommendations in 2018. The company can increase its credibility by setting a clear position on climate policy and by implementing processes to withdraw from trade associations that oppose climate policies.

There is a lack of any evidence that China Airlines is actively developing business models for a low-carbon future. The company is collaborating with Taiwan’s government to facilitate the formation of Taiwan’s SAF development strategy. This is a clear opportunity for the company to invest in introducing low-carbon fuels into its fleet.

China Airlines states it is committed to a low-carbon transition. In 2021 the company set a target to reach net zero by 2050. It is unclear if the company will use offsets to achieve the target. The company is also targeting a 1.5% annual fuel efficiency saving.

To achieve fuel efficiency savings China Airlines will promote ‘green-energy’ flights, improve ground service control, enhance regular repair and maintenance and reduce the weight of fuselages. It is also developing Taiwan’s national SAF strategy. It does not disclose how it intends to reach net zero.

In 2021, China Airlines spent over USD 2.3 million on R&D but it does not disclose any information on low-carbon R&D specifically. The company is working with suppliers and contractors to reduce its emissions. However, the company does not disclose its scope 3 emissions.

Prior to 2020, the company’s reported emissions intensity fluctuated but was beginning to decrease. Though this decrease was not aligned with the company’s 1.5°C pathway. The company then saw a dramatic increase in emissions intensity in 2020, due to COVID-19.

China Airlines’ ambition to reach net zero by 2050 is undermined by its decarbonisation strategy, which lacks a detailed transition plan, financial commitments or interim goals to reduce emissions to the level required by its 1.5°C pathway.

The company publicly discloses a commitment to engaging in social dialogue with workers and unions. However, no relevant disclosure was found regarding the categories of stakeholders it engages with on a just transition. Nor was there any evidence to show the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking low-carbon transition planning to mitigate the social impacts of the transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue or engagement with stakeholders in its just transition planning.

No public commitment by the company was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s action to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

The company discloses the actions it takes to provide training and education opportunities for workers and affected stakeholders. For instance, it offers training programmes that include career development courses for employees and business strategy and management training for managers. Additionally, the company partners with universities to offer students internships with a training component. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to reskill or upskill.

No relevant disclosure was found to show if the company identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

The company commits to respecting human rights and the ILO fundamental rights at work. However, no relevant disclosure was found of an expectation of its business relationships to respect all of the ILO fundamental rights at work. The company does, however, disclose a human rights due diligence process that includes the identification and assessment of salient human rights risks, such as privacy rights, health rights and labour rights. The company takes action to mitigate these risks in its own operations and supply chain. However, no evidence was found of the company’s engagement with affected stakeholders. Moreover, no relevant disclosure was found regarding whether the company’s grievance mechanism available to workers and external stakeholders offers the option to report anonymously.

The company commits to respecting the health and safety of its workers and expects the same commitment of its business relationships. While the company discloses its targets of 25% female executives by 2025 and 27% female managers by 2030, no evidence was found of a public commitment to gender equality and women’s empowerment in the broad sense. The company discloses some indicators of workforce diversity, including the age and gender of its workforce by employee category. However, the company can strengthen its disclosure on these subjects, as well as on its living wage, working hours and collective bargaining practices.

The company has a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no evidence was found of a company commitment to protecting personal data of employees and customers, or of a global privacy statement regarding the collection, sharing and access to personal data of employees and customers. Furthermore, no evidence was found of a global tax strategy or a lobbying and political engagement policy.