Environmental Sustainability

EVA Air’s environmental footprint primarily arises from the energy, resources, and ecosystems involved in the value chain activities of air transportation and ground operations. In response to the global climate emergency, EVA Air has established its climate governance framework with reference to the Task Force on Climate-related Financial Disclosures (TCFD). Following the official release of the Taskforce on Nature-related Financial Disclosures (TNFD) framework in September 2023, EVA Air further incorporated the concept of nature-related footprints to more comprehensively develop its environmental footprint management strategies and actions. Under its climate actions, EVA Air also integrates the concept of Nature Positive into its action strategies. For more information, please refer to the EVA Air Climate and Nature Report.

EVA Air implements climate and nature risk management by systematically identifying short-, medium-, and long-term climate- and nature-related risks. These cover aspects such as policy, technology, regulations, market dynamics, reputation, and physical climate factors. Each risk is assessed based on its potential impact and likelihood of occurrence to determine materiality. The effectiveness of risk management is regularly reported to the Sustainability Committee and the Board of Directors for review. Adaptation and mitigation measures are implemented to reduce potential impacts and enhance operational resilience. EVA Air’s boundaries for climate- and nature-related risk management include the Company’s business operations, including upstream suppliers and downstream customers in the value chain, in order to comprehensively identify and manage risks from our operations.

With reference to the Task Force on Climate-Related Financial Disclosures (TCFD) framework; the Carbon Disclosure Project (CDP) Climate Risks and Opportunities Project; international aviation industry trends; and international initiatives, sustainable development trends, and GHG emission control measures such as the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA); the European Union Emissions Trading System (EU ETS); and the United Kingdom Emissions Trading Scheme (UK ETS), EVA Air has identified eight risks and five opportunities related to climate change in the industry.

Each department assesses each climate-related risk and opportunity, in accordance with the Company’s risk management process for the risk/opportunity’s likelihood of occurrence and the level of impact; the results are then given a materiality analysis (per the EVA Air Climate Risks and Opportunities diagram). Based on the climate risk and opportunity matrix results, two major transition risk items and one major opportunity – Carbon Pricing, Rising Sustainable Raw Material Costs, and Developing/Expanding Low-Carbon Aviation Services – were prioritized for management. Additionally, the physical risk Rainfall (Water) Pattern Changes & Long-Term/Extreme Climate Changes was identified through scenario analysis of climate change in regions where the Company and our key suppliers operate.

Through the four-phase LEAP approach, including Locate, Evaluate, Assess, and Prepare. Additionally, the Biodiversity Risk Filter tool developed by the World Wide Fund for Nature (WWF) was also adopted to assess dependence and impacts on nature in the Company’s business operations and value chain. Furthermore, information on policies, laws and regulations, and international initiatives related to the value chain was also collected to analyze potential nature-related risks and opportunities.

Considering international regulations/initiatives and identified aviation industry results, EVA Air identified three transition risks and three nature-related opportunities. Based on hotspots for dependence and impact on nature in regions where the Company and our key suppliers operate, we also identified two other physical risks. For all these nature risks and opportunities, we have formulated measures for risk mitigation and management to increase corporate resilience. To address transition risks, we pay close attention to policy, responsibility, and reputation issues, such as the use of certified SAF and strengthened enforcement against illegal wildlife trafficking. In terms of physical risks, we strengthen soil & water conservation risk management, with focus placed on reducing financial losses and environmental impacts.