EVA AIR C o r p o r a t e S o c i a l R e s p o n s i b i l i t y R e p o r t CONTENTS 01FIight Safety P21 02 Customer Service P33 03 Human Resources P47 Development Message from the Management P3 1-1 EVA Air Safety Management P23 2-1 Attentive Services P35 3-1 Appointment and Retention P49 System of Talent About This Report P5 2-1-1 Service Quality Committee 1-1-1 Safety Management Concept 2-1-2 Service Quality Management 3-1-1Human Resource Policies and Report Management and Goal Recruitment 2-1-3 Reliable and Trustworthy Boundaries and Data 1-1-2 Safety Organization 3-1-2 Employee Composition Publication 1-1-3 Safety Management System 2-2 Innovative Services P36 3-1-3 Labor-management Contact Information (SMS) Communication and Interaction 2-2-1 Delicacies- In-flight Meal and 1-1-4 Safety Risk Management Beverage 3-1-4 Salary and Benefits Sustainable Value Creation P7 Measures 2-2-2 Eat Safe: In-flight Meal and 3-1-5 Employee Evaluation and Career About EVA Air 1-1-5 Safety Management Information Airline Catering Management Planning System (SMIS) EVA Air Value Chain 2-2-3 Cabin Cleanliness 1-1-6 Diligent and Attentive Safety 3-2 Employee Education and P60 Management; Setting an 2-2-4 Care for Passengers’ Rights Sustainable Procurement Training P10 Industry Model and Health Management 3-2-1 Flight Crew 1-1-7 Honor and Recognition 2-2-5 Automated Services • EVA Air Supply Chain 2-2-6 Brand New VIP Loung Services 3-2-2 Cabin Crew 1-2 Flight Path Management and P27 • Sustainable Procurement: Social 2-2-7 Creative Aircraft Livery 3-2-3 Ground Staff Responsibility Policies for Maintenance Sustainable Development of 3-3 Workplace Safety P63 1-2-1 Flight Path Management 2-3 Customer Relationship P43 Suppliers Optimization 3-3-1 Management System and Goal • EVA Air Procurement Guidelines 2-3-1 Customer Satisfaction Survey 1-2-2 Maintenance Quality 3-3-2 Prevention of Occupational Management 2-3-2 Listen to Customers’ Opinions Sustainability Performance and P12 and Communicate Accidents and Health Protection Results 1-3 Flight Crew Safety Control P30 2-3-3 Membership Services Sustainable Strategy and P13 1-3-1 Personnel Training 2-3-4 Customer Information and Management Policy Privacy Protection 1-3-2 Safety Culture 2-3-5 Online Security Management Corporate Social Responsibility Policy Sustainable Development Strategies 2-4 Cargo Service P44 and Blueprint 2-4-1 Temperature-controlled Cold Organization of Sustainable Chain Service Governance 2-4-2 Cargo Transport E-Commerce Major Issues and UN Sustainable Development Goals (SDGs) 2-4-3 Customs AEO Certification Participation in International 2-4-4 Cargo Customer Satisfaction Sustainability Initiative Survey 1 04 Green Earth P67 05 Social Inclusion P81 06 Corporate P87 07 Materiality Analysis P95 and Community Governance Engagement Special Report: 5-1 Safety Education Promotion P83 6-1 Senior Operating P89 7-1 Compilation of Sustainability P96 "Green Travel" - EVA Carbon P69 Management Issues Offset Program 5-1-1 Academia and Industry Collaboration Program 6-1-1 Structure of the Board of 7-2 Identification of Stakeholders P96 5-1-2 Sponsorship of United Daily Directors and Engagement with 4-1 Environment and Climate P73 News Column” a Crash Course 6-1-2 Functional Committee of the Stakeholders Change Governance on Global Affairs” Board of Directors 7-3 Determine Material Issues and P105 4-1-1 Management system 5-2 Charitable Contribution P83 6-2 Ethical Management P90 Material Aspects certification and environmental policies 5-2-1 Charitable Efforts 6-2-1 Improvement of communication 7-4 Define Boundaries of P106 4-1-2 Introducing TCFD to Manage 5-2-2 Supporting the Chang Yung-Fa channels Disclosure on Material Aspects Environmental Risks and Foundation 6-2-2 Sound internal control and Management Approach Opportunities 5-3 Giving Back to Local P84 6-2-3 Risk Management 4-2 Energy and Resource P76 Communities Management 6-3 Business Performance P93 5-3-1 Neighborhood Relations 4-2-1 GHG emission management 6-3-1 Financial Performance Appendix P109 5-3-2 Boosting Local Tourism 4-2-2 Energy and Resource Global Reporting Initiative Table P109 Conservation Measures and Performance 5-4 Arts and Culture Activities P85 Third Party Assurance Statement P114 4-2-3 Ground Operation Power 5-4-1 Support for Musical and Consumption Cultural Event 4-2-4 Waste disposal and air 5-4-2 Fostering an Excellent TV and pollutants Film Culture 5-5 Athletic Sponsorships P85 5-5-1 Contributing to Taiwan’s Athletics Community 5-5-2 Sponsorship for Sporting Events 5-6 Feedback to the Industry P86 2 Upholding the enterprise spirit of “challenges, innovation, team- work” and carrying out adhering to rigorous strict flight safety man- agement and service quality, EVA Air has been growing steadily with the core value of “Safety and Services” along the way, while receiving recognition and awards from around the world. Message from the Management Bou-Shiu Lin EVA Air has published the Corporate Social Responsibility Report for five consecutive years since 2014. The reports disclosed the concrete measures we have taken to deal with matters in the areas of corporate governance, environment, and society. Chairman, EVA Air Apart from the insistence on our core values: “safety” and “service,” we proactively respond to major issues the stakeholders care about, such as environment and climate change, employee assistance, and social participation, in order to fulfill our goals of sustainable management. EVA Air Chairman Bou-Shiu Lin Once again, 2017 was a fruitful year for EVA Air. In terms of corporate governance, EVA Air withstood the impacts brought by changes in the global political economy and natural disasters, and went through the adjustment period for the successively established unions within the Company; yet, our colleagues worked hard and delivered outstanding results. The annual revenue in 2017 was 12.53 billion NTD, and the number of passengers flying with us reached 12.13 million, which both set historic records and made 2017 the third consecutive profitable year. With the joint efforts made by our colleagues, EVA Air once again won awards from around the world. The awards include “Top 5% Best Listed Companies in the “Corporate Governance Evaluation” held by Taiwan Stock Exchange Corporation for three consecutive years, “World’s Top 20 Safest Airlines” ranked by JACDEC (airline safety ranking) and AirlineRatings, “World’s 5-Star Airlines” and “World’s Top 10 Airlines” by Skytrax, “The Best Airplane Liveries” by CNN, and “World’s Best International Airlines” by Travel + Leisure, a well-known US-based travel magazine. We continue to insist on rigorous flight safety management and service quality to provide passengers with flight experiences that are “safe, assured, trustworthy, and comfortable.” We launched four brand new Hello Kitty Jets, diverse in-flight new services in collaboration with other industries, and the third-generation uniforms, which were all widely acclaimed. Following the introduction of Taiwan’s first 777 high effieient freighter at the end of last year, the new generation of eco-friendly Boeing 787 Dreamliner will join to our fleet this year. All service and systems items will be continuously upgraded. 3 Message from the Management In terms of environmental sustainability, EVA Air has taken the initiative to carry out the self-inspection of greenhouse gas since Chia-Ming Sun 2011. Through the inspection results, we examine the relevant measures of reducing greenhouse gas emissions and the results. From 2016, we have conducted the self-inspection of greenhouse gas according to ISO 14064-1 international standards for green- President, EVA Air house gas with the validation of third-party validation organizations. From 2017, we have carried out the “EVA Air Green Travel Carbon Offset Project,” which allows passengers voluntarily paying the equivalent value or customized amount to take part in "zero-carbon travel" and support the international carbon reduction project funded by Climate Care. This fully demonstrates our concern on renewable energy and global warming. With respect to social participation, we use our own resources to continuously promote the ideal of flight safety education, and take part in social charitable events by donation, sponsorship, or emergency aid. In 2017, the amount of our charitable donation was over 140 million NTD, accounting for 2.43% of our net profit. In addition to actively sponsoring overseas artistic and cultural perfor- mance groups and world-class exhibitions for their visits to Taiwan as well as Taiwanese athletes competing abroad, we also supported the Taipei 2017 Universiade. In collaboration with relevant organizations to promote Taiwan’s tourism abroad, we aim to let the world see Taiwan. Looking forward to 2018, we will continue to uphold our corporate philosophy of “challenge, innovation, teamwork” in combination with social trends to keep abreast of the times. We hope to achieve greater results and fulfill our corporate social responsibility. Bou-Shiu Lin Chia-Ming Sun Chairman, EVA Air President, EVA Air 4 About This Report Since its establishment in 1989, EVA Air has been placing importance on fulfilling its corporate social responsibility (CSR) through active practices in corporate governance, environmental protection and social engagement, based on the objective of sustainable management. We insist on strict flight safety standards and quality service; as a result, we have received recognition by many important domestic and internation- al awards. EVA Air values the relevance of the domestic and overseas developmental trends of corporate social responsibility to our core businesses, as well as the influence of our entire business operations on our stakeholders.