Contents p.124 Corporate Citizenship p.126 8-1 Sports Activist p.128 8-2 Grassroots Education p.132 8-3 Charity Support p.133 8-4 Tourism Promotion p.136 8-5 Giving Hands Aid 15 p.137 8-6 Mandarin Airlines p.140 Appendix Charity p.140 Disclosure on p.86 Responsible Procurement p.36 Caring for the Employees 14 Management p.88 6-1 CAL Value Chain p.38 4-1 Year of “Employee First” Approach (DMA) p.94 6-2 Local Procurement p.41 4-2 Employee Rights on Material p.95 6-3 Green Procurement p.46 4-3 Recruitment and Aspects for CAL p.95 6-4 Contractor 13 Retention p.142 GRI G4 Index Management p.08 Sustainable 6 p.53 4-4 Competency p.96 Environmental Sustainability p.148 Independent Third Performance Development and 12 p.98 7-1 Environmental -Party Assurance Talent Cultivation Management Report p.07 Awards 5 p.18 Stakeholder 4-5 Healthy and p.102 7-2 Climate and Energy Management Communications p.58 11 p.110 7-3 ECO Service p.19 2-1 CAL Stakeholder Safe Workplace p.06 Management 4 p.64 Customer Service p.115 7-4 Green Operations Perspectives on p.20 2-2 Communication 10 p.66 5-1 A New Benchmark Management Sustainability Channels and Frequency p.04 Message from the in Aviation Service 3 p.21 2-3 2014 Communication Chairman and 9 p.71 5-2 Customer Service Results President p.24 Corporate Governance p.77 5-3 Flight Safety p.02 Reporting Principles 8 2 p.26 3-1 Board Operation p.82 5-4 Pilot Training and 7 p.28 3-2 Sustainability Governance Management p.01 About this Report 1 p.10 About China Airlines p.30 3-3 Regulatory Compliance p.11 1-1 About Us p.32 3-4 Risk Management p.15 1-2 CAL Group p.33 3-5 Industry Overview p.34 3-6 Historical Performance About this Report 1 環境 永續 報告書 2013 中華航空企業永續報告書 About this Report China Airlines Corporate Sustainable Environment Report 2013 華航邀請大家愛護地球 讓旅程從一個大大的擁抱開始 China Airlines The 2014 China Airlines Corporate Sustainability Report conforms to the Core option of the 華翔天際 航向永續 GRI G4 Guidelines with independent assurance provided by the AA 1000AS Type II 2012 Environmental 2013 Environmental 2013 Corporate Sustainability Report standard (high level of assurance) to ensure reliability of disclosures. Sustainability Report Sustainability Report China Airlines (hereafter referred to as "CAL") has now published non-financial reports for three consecutive years since 2013. We are the first airline in Taiwan to publish reports on the environment and sustainability. Our first corporate sustainability (CSR) report was published in August, 2014. We are continuing to improve the level of transparency of our sustainability information and to communicate with all stakeholders with an interest in the company. We will publish the report on an annual basis in the future to actively convey the sustainability mission, commitment, practices, results and future targets of China Airlines to our stakeholders. The next CSR report will be published in June, 2016. The information and data within this report were gathered and compiled by The scope of organization encompasses the CAL Park (Corporate CAL employees from each department. This was then reviewed by Headquarters), Songshan Park, maintenance facilities, Taipei Branch Office department heads then submitted to the report working group for Internal and Kaohsiung Branch Office. Some of the data also includes overseas sites. Internal confirmation. External consultants were also retained to provide improvement On the scope of disclosure for organizational subsidiaries, this report suggestions. Once all of the information and data was ready, it was reviewed includes Mandarin Airlines because CAL and Mandarin Airlines together by the vice presidents of each unit then passed to the chairman and president account for up to 98% of consolidated revenue and have the same core for final approval. Standardized forms were established for all of the portfolio. Tigerair Taiwan was excluded as it only officially commenced information and data in this report. These were made a part of the standard operations in September, 2014. operating procedure for our internal management to ensure reliability. Scope External entities include investors, customers, communities and suppliers. Audit The financial data in this report came from annual financial report data audited Apart from the above, as CAL subsidiaries such as Novotel Taipei Taoyuan by Deloitte and is presented in NTD (New Taiwan Dollars). The sections External External International Airport, Hwa Hsia Company Ltd., China Pacific Catering relating to ISO 9001 quality management system and ISO 1404-1 greenhouse Services Ltd., and China Pacific Laundry Services Ltd. account for only a gas inventory were verified by DNV; the ISO 14001 environmental small proportion of consolidated revenue and belong to our supply chain, management system and ISO 50001 energy management system were these were classified as external supplier stakeholders for substantive verified by BSI Taiwan. The rest of the information in this report was verified disclosure of their sustainability information. by SGS Taiwan. Data Collection Boundary - Data Collection Boundary - Data Collection Scope Internal External Data Quality Management Contact Information General Information China Airlines: CAL Park (Corporate Suppliers (including CAL subsidiaries) Financial Data - Deloitte China Airlines January 1, 2014, through to Headquarters), Songshan Park, Customers Quality Data - ISO 9001 - DNV Environment Department of CSO December 31, 2014 maintenance facilities, Taipei Local Communities Environmental Data - ISO 14064-1-DNV Address: No. 1 Hangzhan South Road, Key Events Branch Office, Kaohsiung Branch Investors Environmental Data - ISO 14001-BSI Taiwan Dayuan Dist., Taoyuan County 33758 January 1, 2014, through to Tel: 886-3-3993259 Office Environmental Data - ISO 50001-BSI Taiwan April 30, 2015 Fax: 886-3-3993210 Mandarin Airlines Sustainability Data - AA 1000AS-SGS Taiwan Email: [email protected] 2014 China Airlines Corporate Sustainability Report 2 Reporting Principles Reporting Principles The reporting principles of the CAL 2014 CSR Report generally adhered to the Global Reporting Initiative (GRI) G4 Guidelines in establishing a 7-step method for materiality analysis. The method was used to determine the stakeholders that this year's report will reach out to, the material issues with priority in disclosure, and the boundaries of data collection. Identification Phase - Steps 1 and 2 CAL publishes the CSR report to communicate with stakeholders. To do so, we must first identify those we wish to communicate with including employees, customers, investors, the government, partners and the community. To understand what these stakeholders expect about the CAL CSR Report, we gathered sustainability related information regarding CAL and aviation industry in order to investigate the level of stakeholder interest on each issue. 6 stakeholders 36 sustainability issues 1795 questionnaires 38 report participants Step 1 Step 2 Step 3 Step 4 Identification of Compilation of Investigate Stakeholder Analyze Impact of Issues on Stakeholders Sustainability Issues Interest Company The five principles of the AA1000 Sustainability issues were collected by To gauge each stakeholder's Apart from stakeholder interest in SES-2011 Stakeholder Engagement CAL through global interest in each sustainability issue, sustainability issues, how each issue Standard were used to identify the guidelines/standards, industry CAL used an online survey to let impacts on CAL operations was also 2014 CSR report's targets for guidelines/standards, sustainability stakeholders indicate their level of taken into consideration. The impact communication and six main initiatives, aviation industry interest. of each issue was therefore also stakeholders were decided upon. benchmarks, organizational annual analyzed by the members of the CSR targets and stakeholder feedback. Report Team. High Materiality Matrix Aviation safety Key issues of media interest at CAL Code of Practice/ Ethics Customer service management Food safety management Privacy policy Labor rights Waste management Fleet Management Dimension Section of Disclosure Page and recycling Risk evaluation and management Occupational safety and health Human Rights Environmental policy Waste emission management and management system Insufficient number of handicapped Compliance 4-3-2 Employee Diversity 48 Green service Labor/Management Relations Level of Interes employees Aircraft fuel efficiency Water resource Greenhouse gas and Sustainable development management climate adaptation strategy Noise management Energy management Financial operating Labor protests 4-1-3 Annual bonus protest 40 performance Stakeholder management Career development, Brand marketing and grievance mechanism education and training Recruitment and Retention Community engagement Wastewater discharge / social welfare Employee benefits Excessive work hours 4-1-2 Explanation of employee dispute 39 and management and compensation Environmental Anti-Trust spending and costs Supply chain Supplier environmental management Talent cultivation/recruitment 4-3-3 Recruitment 49 performance management Board operations Biodiversity Food safety 5-2-5 Food hygiene 75 Low Low Impact on Sustainable Operations High Economic Issues Environmental Issues Social Issues 2014 China Airlines Corporate Sustainability Report Reporting Principles 3 key material issues material aspects internal and external entities Step 5 24 Step 6 36 Step 7 6 Determine Material Issues Select Material Aspects Define Boundary