ESG at EVA

Implementing sustainable supply chain management ensures the security of raw material supply and enhances the overall sustainability performance of the supply chain. Additionally, environmental protection is a significant concern for the public. Strengthening green practices within the supply chain can drive positive industry cycles, effectively establishing a positive brand image for the Company, improving competitiveness, and ensuring long-term profitability. However, inadequate supply chain management will cause detrimental impacts on the environment and society, such as environmental damage and human rights violations; it may also increase the risk of supply chain disruption and further affect customer rights and impact business operations.

• Formulate the "EVA Air Supply Chain Sustainable Development Policy" and "EVA Air Supplier Code of Conduct".
• Implement sustainable procurement policies and management.

• Regularly distribute Sustainability Assessment Questionnaire and conduct audits and guidance for high-risk and critical suppliers.
• Organize supplier conferences to communicate EVA Air's sustainability goals and annual requirements for suppliers. We also invite high-performing suppliers to share their carbon reduction achievements and speakers to share expertise on sustainability topics.
• Provide education and training for procurement personnel to deepen their understanding of auditing techniques and sustainable supply chains.
• Implement the EVA Sustainable Vision - Green Supply Chain Program, which focuses on the themes of "Green Energy Savings, Green Circular Economy, Green Energy Usage and Green Transportation" to encourage suppliers to practice carbon reduction plans, jointly creating a sustainable future.

• Supplier Code of Conduct (SCoC) communication rate: 100% for tier 1 suppliers, 100% for critical suppliers.
• 100% response rate for Sustainability Assessment Questionnaire (SAQ) from tier 1 suppliers.
• Conduct one supplier education training and one supplier conference annually.

• Implement the Green Supply Chain Program and propose at least 50 proposals.

• Reduce carbon emissions by 15% for critical suppliers by 2030.

• Conduct internal surveys annually to collect data from each procurement unit on Tier 1 suppliers’ SCoC communication coverage, SAQ response rate, and completion rate of supplier education and training.
• Track the status of the supply chain through supplier conference every year.
• Review participation and proposal submissions for the Green Supply Chain Program initiative annually.

Long-term commitment to establishing information security systems and adhering to privacy protection laws and regulations to meet the legal requirements of transactions with passengers, peers, and cross-industry cooperation can enhance the competitiveness of the Company in terms of corporate sustainability and investment value. Information security incidents or personal data breaches may result in operational disruptions, privacy violations, and regulatory penalties, which may lead to damage to customer privacy and the Company’s reputation of trust.

• Considering business development, the Company formulated the “Information Security Policy”, all personnel of the company, business related suppliers with its employees, temporary employees, etc., to comply with this policy and related management mechanisms, regulations, and procedures.
• The information security and privacy protection policies were disclosed on the Company’s official website, allowing data subjects to understand the various protective measures throughout the lifecycle of personal information and the ways in which their rights can be exercised, demonstrating the commitment to maintaining information security and protecting personal information.

• To ensure independent oversight and counterbalance of information security governance, the "Information Security and Privacy Management Division" was established to be responsible for the management and oversight of information security and personal data protection. The "Information Security and Privacy Protection Committee" was set up to balance risk control and business development.
• Improve procedures for information security incident response and business continuity management, regularly evaluate their appropriateness through drills, and implement continuous improvement using the PDCA cycle.
• An information security incident reporting mailbox was established to encourage internal personnel to provide feedback on any violations of guidelines or regulations, or to make relevant suggestions.
• Continuously conduct social engineering drills and corrective measures for phishing attacks, and organize awareness workshops based on analytical insights from the drills.
• By implementing ISO 27001, we established a robust Information Security Management System (ISMS) that includes information security indicators, internal and external audits, risk assessments, monitoring, and incident reporting mechanisms. These measures enable us to identify and address risks effectively. Training and awareness campaigns are conducted to enhance information security awareness and ensure the implementation of security measures. The effectiveness of the ISMS operation is audited and ensured by an independent certification body every six months.
• Establish internal procedures in compliance with all applicable laws, regulations, and personal data protection requirements for stakeholders; conduct training & awareness-raising courses and talks; perform personal data identification and inventory, as well as privacy impact assessments. We have plans to adopt the international ISO 27701 Privacy Information Management System (PIMS) standard, and plan to obtain certification in 2025.

• In 2024, perform inventory of information assets and optimize risk assessment mechanisms.
• In 2024, establish personal data regulation tracking and compliance discrepancy management.
• In 2025, complete the transition and re-certification of the Information Security Management System to ISO 27001:2022.
• In 2025, complete the implementation and certification of ISO 27701:2019 Privacy Information Management System.

• Complete the enhancement of endpoint security controls.
• All personal data-related operations are fully compliant with ISO 27001 and ISO 27701.
• Complete the implementation of data governance and establish data leak prevention mechanisms.

• Implement information security policies and privacy protection measures to ensure the security of customer privacy and strive to prevent data breaches.

• Track and analyze the KPIs of information security for performance review on a monthly basis.
• Convene the "Information Security and Privacy Protection Committee" meeting semi-annually to conduct ISMS management reviews and track performance.
• Track and review ISO 27001 Information Security Management System semi-annually to maintain the validity of the certificate.

The strong growth in demand for aviation services has provided favorable conditions for the industry’s growth. Good operational performance promotes markets stability and creates more job opportunities. However, our business environment remains challenging, as inflation continues to dampen economic growth, transport capacity recovery in the industry increases competition, and manufacturer supply chain shortages delay deliveries of new aircraft and affect the company's revenue. These factors could lead to market volatility or a downturn.

EVA Air actively develops potential passenger/cargo destinations to increase our global network density, while optimizing our in-flight products and refining cabin management to enhance operational efficiency. Additionally, we stay abreast of financial and tax-related laws, and seek to maximize the benefits of our employees, shareholders, and creditors.

• Expand our passenger/cargo fleet to meet market demand.
• Consolidate our high-value business traveler base and integrate global corporate membership programs.
• Provide customized cargo/charter flight services to meet market demand, expand our market share, and increase revenues.
• Plan ahead to obtain funding source in accordance with the Company’s future capital needs.

• Develop one flight destination and reinstate one destination; Flexibly deploy our fleet to increase market share, maximize benefits from network connectivity, and meet changes in passenger and cargo market demand.
• Repaint three aircraft with special livery to generate buzz and enhance market competitiveness.

• Flexibly deploy passenger/cargo aircraft to optimize our transport network, balance revenues from passenger and cargo flights, and further enhance operational performance.
• Starting in 2025, 14 Boeing 787 passenger aircraft to be delivered, and three Boeing 777-300ER passenger aircraft to be converted to freighters.

• Comprehend market demand dynamics, and develop potential routes to strengthen market competitiveness.
• We will introduce eighteen A350-1000 wide-body aircraft from 2027 to 2030, with an option to purchase an additional six aircraft; and introduce fifteen A321neo narrow-body aircraft from 2029 to 2032 to replace aging aircraft.

Budget implementation: EVA Air and subsidiaries estimated total consolidated operating revenue of NT$210.15 billion for 2024 and actually achieved NT$221.01 billion (of which NT$144.94 billion was from passenger transportation, NT$52.17 billion was from cargo transportation, and NT$23.9 billion was from other revenue sources), surpassing budget goal with 105%. Expected net profit before taxes was NT$21.72 billion and actual net profit before taxes amounted to NT$38.39 billion, for a goal achievement rate of 177%. Net profit attributable to the parent company was NT$29.01 billion.

Implementing business integrity and ethics ensures that the behavior of the Company’s employees complies with business ethics and societal expectations, stabilizes market order, and safeguards the rights and interests of stakeholders. If incidents that violate business integrity and ethics occur, it can damage the Company's image, disrupt the market, harm consumer rights, and even lead to legal action.

• Formulate the "Codes of Ethical Conduct", "Ethical Corporate Management Best Practice Principles", "Procedures for Ethical Management and Guidelines for Conduct", "Antitrust Policy and Guidelines", "Information Security Policy", "Corporate Sustainability Best Practice Principles", and "Code of Conduct" to enforce business integrity and risk management, safeguarding the rights and interests of stakeholders.

• Conduct director continuing education courses, internal board performance evaluations, and employee training courses on business integrity.
• Establish reporting, consultation, and communication channels to encourage internal and external individuals to report any violations of guidelines or regulations, and provide suggestions at any time.

• Conduct director continuing education courses twice a year, with 3 hours of training for each session.
• Perform internal board performance evaluations once a year.
• Execute employee training courses on business integrity once a year.
• Handle reported cases appropriately and report significant findings to the Board of Directors or relevant committees according to procedures.

• Continuously conduct director continuing education courses and employee training courses on business integrity, and handle the reported, consultation, and communication cases as necessary.
• Conduct external board performance evaluations.

• Implement business integrity and risk management, enhance corporate governance standards, and safeguard the rights and interests of investors and stakeholders.

• Conduct director continuing education courses twice a year, with a duration of 3 hours each; achievement rate 100%.
• Perform internal board performance evaluations once a year; achievement rate 100%.
• Conduct employee training courses on business integrity once a year; achievement rate 100%.
• No cases of integrity violations were reported in 2024, which has been reported to the Board of Directors.

Effective talent development and training enhances employees’ professional capabilities and career prospects, and this in turn strengthens EVA Air’s competitiveness and society as a whole. If human resources were not efficiently used, this could affect the Company’s competitiveness and our development of professional expertise and overall sustainability.

• Various communication channels and an Employee Assistance Program (EAP) are provided to allow employees to express their thoughts while maintaining privacy. We encourage employees to suggest innovations and perform at their best, which promotes personal and professional growth.

• Implement internal rotation and promotion plans to broader career development for employees.
• Various courses and lectures are planned from the perspective of promotion, advocacy, education and training to help employees understand the benefits of the Employee Assistance Program (EAP) and the related practices.
• Hold gender equality courses to enhance employees’ awareness of diverse groups and strengthen collaboration among employees.

• The target for female senior executives in 2024 is to reach 24%.
• Promote reserve talent deployment and cross-functional training.
• Hold at least one lecture for EAP team training or course related to gender equality every year.

• The target for female senior executives in 2025 is to reach 25%.
• Establish mechanisms for nurturing key talents and developing succession plans.
• Internal training programs based on job attributes are conducted in different turns by seeded speakers.

• Continuously review the talent pool and cultivation plans in a rolling manner.
• All employees complete the training on topics related to gender equality and possess adequate awareness.

• Conduct annual performance evaluations twice a year and consider personnel promotions based on business recommendations, enabling individuals to effectively utilize their strengths and achieve optimal job placement.
• Review personnel training records to assess their training status.

In response to a worldwide labor shortage and fierce competition in the industry, EVA Air offers good benefits and a sound promotion system. This helps us attract talents and reduce turnover. We strive to improve employee benefits, which enhances employee satisfaction, and in turn, prevents service quality declining and cost of recruiting and training that would arise from labor shortages.

By maintaining a balance between recruitment cost and employee quality, enhancing employee satisfaction and improving employees’ professional skills, and team diversity, EVA Air can ensure stable business operations and sustainable development.

• Recruitment is conducted annually based on operational conditions and manpower needs, providing equal employment opportunities.
• Competitive salary and benefits packages, diversified development opportunities, and a sound promotion system are introduced to retain talents.
• By expanding recruitment channels, optimizing recruitment processes and exploiting technology, EVA Air can boost recruitment efficiency.
• With employees’ feedback from Organizational Climate Survey, EVA Air can make a workplace better.

• Achieve an employee participation rate of at least 60% in Organizational Climate surveys.
• Achieve a turnover rate of less than 6%.

• Achieve an employee participation rate of at least 60% and an average employee engagement rate of 70% in Organizational Climate surveys.
• Achieve a turnover rate of less than 5.5%.

• Achieve an employee participation rate of at least 60% and an average employee engagement rate of 70% in Organizational Climate surveys.
• Achieve a turnover rate of less than 5%.

Determine whether all vacancies are filled; record recruitment period starting from the beginning to the final hiring stage; regularly compare historical data to ensure shorter timelines.

Harmonious labor relations can enhance employee/management interaction, reduce conflict, and help to enhance employees’ identification and satisfaction with the company. If communication does not occur between capital and labor, this may result in employee turnover and labor disputes, which is not conducive to stable business operations and might even impact the company’s image. Valuing human rights, and prohibiting any infringement on or violation of human rights, are seen as core values for an enterprise’s sustainable development. If there were forced labor, child labor, or other violations of human rights laws, the company might be subject to government penalties, or get a negative reputation and lose customers, none of which would be conducive to sustainable operations.

• The Company has established multiple communication channels to interact with multiple unions and employees, to maintain harmonious labor relations and promote employee identification with the company.
• EVA Air holds internal meetings on a monthly basis to communicate our future development, business strategies, and other important information. This helps employees to understand our operational status and provide timely feedback, thus fostering a sense of cohesive engagement. Before making operational changes that could impact employees’ interests, we provide prior notice to employees as required by local labor laws; and we implement procedures in line with legal standards.
• Formulate a Human Rights Policy Statement; create an environment founded on human rights protections, respect, and fair compensation; prohibit all violations of human rights; follow all local labor and human rights standards.

• Hold periodic communication meetings with multiple unions.
• Establish employee response, communication, and grievance channels.
• Formulate the “Human Rights Policy Statement”, conduct educational training sessions and regularly conduct human rights due diligence.

• Hold at least one communication meeting per month with multiple unions.
• Continue to review feedback from all departments and employees; develop follow-up measures when necessary.
• Formulate the “Human Rights Policy Statement”, conduct human rights due diligence annually.

• Conduct periodic communication meetings with multiple unions; seek consensus on issues and suggestions raised by the unions.
• Continue to review feedback from all departments and employees; develop follow-up measures when necessary.
• Periodically conduct human rights due diligence and hold trainings on human rights issues.

• Reaching a consensus and signing collective agreements/agreements to maintain a harmonious labor-management relationship.
• Help employees to understand the Company’s operational status, thus enhancing employee engagement, identification, and cohesion.
• Refer to international human rights norms and trends, human rights due diligence results, etc. in reviewing and revising human rights policies/systems/procedures on a rolling basis; aim to eliminate human rights violations and effectively protect human rights.

• Hold at least one communication meeting per month with multiple unions.
• Establish channels for employee communication and complaints; review opinions submitted by employees on a monthly basis.
• Ensure that the “Human Rights Policy Statement” is formulated and conduct human rights due diligence.

We strictly adhere to international health standards and rigorously supervise the process of ingredient selection, distribution, storage, and preparation in airline catering. We also have stringent control processes in place to ensure the safety and hygiene of our in-flight meals. By doing so, we take responsibility for the passengers' meal safety, hygiene, and quality, and provide innovative meal services, which contribute to improving customer satisfaction and the Company’s revenue. Failure to properly manage in-flight meal safety could potentially harm passenger health, raise food safety concerns, and consequently affect the Company's reputation and customer base. It may also lead to penalties for non-compliance with relevant health and safety regulations.

Food safety has no limits, only room for improvement. Only by ensuring food safety can we give our passengers peace of mind. In compliance with the International Flight Services Association (IFSA) regulations, we are committed to making every flight a safe and secure journey for our passengers.

• Regularly participate in the Service Quality Committee meetings to review the status of in-flight catering service and customer feedback, identify operational issues, and formulate corresponding measures.
• Perform monthly verification of meals at each station to ensure strict control of meal quality.
• Conduct annual global airline catering food safety and hygiene audits to oversee meal preparation environment and food safety management.

• Business class meal defect-free rate target: 99.992%
• Premium economy and economy class meal defect-free rate target: 99.997%
• Airline catering hygiene inspection rate target: 100%

• Business class meal defect-free rate target: 99.992%
• Premium economy and economy class meal defect-free rate target: 99.997%
• Airline catering hygiene inspection rate target: 100%

• The defect-free rate target for each year is determined based on the average defect-free rate of the previous three years. If the target is not met, a preventive plan should be submitted to ensure sound preventive measures and corrective actions.
• Airline catering hygiene inspection rate target: 100%

• Review the defect-free rate of meals on a quarterly basis, taking into account the meal irregularity cases reported by passengers, and conduct appropriate quality statistics for meals.
• Conduct annual hygiene audits of the catering facilities throughout the year, based on the hygiene evaluation criteria established by the International Flight Services Association (IFSA).

Planning the composition of our fleet effectively can assist the Company to quickly adjust the configuration of passenger and cargo aircraft. This will maintain the Company’s competitiveness, reduce energy consumption, keep resource consumption as low as possible, and minimize negative impacts on the environment. However, if fleet composition planning fall short of desired outcomes, this may result in improper allocation of company resources, reduced fuel efficiency, and adverse effects on operational performance.

In response to market changes and operational requirements, the Company continues to introduce next-generation passenger aircraft and replace old ones. The newly introduced aircraft models have shown approximately 15-20% improvement in fuel efficiency compared to the phased-out models.

In addition to the expanding fleet size of 787 passenger aircraft, the Company has finalized a firm order with Airbus in 2023 for the purchase of 33 new passenger aircraft. 18 Airbus A350-1000 (wide-body) aircraft will be delivered between 2027 and 2030 and option to purchase 6 more A350-1000. The Company will also be introducing 15 Airbus A321neo (narrow-body) aircraft between 2029 and 2032.

• In 2025, to reach a total 21 next-generation passenger aircraft: 8 Boeing 787-9 and 13 Boeing 787-10.

• In 2028, to reach a total 34 next-generation passenger aircraft: 13 Boeing 787-9; 13 Boeing 787-10 and 8 Airbus A350-1000.

• In 2032, to reach a total 63 next-generation passenger aircraft: 13 Boeing 787-9; 17 Boeing 787-10; 18 Airbus A350-1000; and 15 Airbus A321neo.

• Delivery schedule of new aircraft.

We will continue to create new service models and products to meet the increasing demand for technology-driven services and enhance customer satisfaction, while achieving international recognition and elevating brand value. However, with the rising consumer awareness and extensive use of social media, there is an increased possibility of consumer disputes and even legal actions, which could potentially lead to increased losses and reputational risks for the Company.

Adhering to the "EVA Air Service Commitment" as the service policy, we will implement EVA Air's "Service Declaration 2.0."

• Adhere to relevant civil aviation consumer regulations and provide diverse customer communication channels to promptly and appropriately handle customer complaints, thus regaining passenger trust.
• Through systematic operations, carefully manage customer feedback, identify root causes, and implement corrective measures.
• Conduct regular service quality meetings to review service performance, customer feedback, and track customer satisfaction, ensuring the provision of services that meet customer needs.
• Strive for international accolades, enhance international visibility and competitiveness, thereby increasing customer loyalty and boosting revenue.

• NPS ≧ 69.00

• NPS ≧ 70.00

• NPS ≧ 70.00

• Conduct service quality management meetings regularly to review operational performance and track customer satisfaction, in line with service quality objectives.
• Set annual quality objectives and standards for customer complaint rates and defect-free rates.
• Perform regular audit to ensure the implementation of relevant processes.

EVA Air aspires to become one of the world's safest airlines. Maintaining flight safety is our core value and commitment to our customers. It helps us establish a sustainable airline brand image and enhance customer loyalty. With the rapid increase in passengers and flight frequencies, any safety incidents resulting in aircraft damage or personnel injuries would impact our operations and potentially lead to fines. As the frequency of such incidents increases, it can erode consumer confidence in our brand and result in loss of customers.

• Policy: We aim to assure your safety whenever you are airborne. We never compromise safety in the air or on the ground.
• Commitment: Regularly examine the effectiveness of various operations, and establish a positive safety culture.

• Execute annual safety internal audit.
• Strengthen various operations of safety risk management.
• Integrate safety databases, use big data analysis and import AI technology.

• Number of significant accident = 0

Number of significant accident = 0

• "Zero accidents" is the ultimate safety goal that EVA Air has consistently maintained since its establishment.

• The SMS Action Team, based on the Company's safety goals and the "State Safety Programme (SSP)", establishes the Safety Performance Indicators (SPI) and Safety Performance Targets (SPT) taking into account the Company's operational situation. They are responsible for regularly monitoring the implementation effectiveness.
• In the first quarter of each year, the previous year's SPI/SPT performance and revision proposals are presented during the Safety Promotion Committee (SPC) meeting. If the annual SPT is not achieved, the Action Team must submit improvement measures.

Conducting early assessment and taking relevant carbon reduction actions in response to climate change can help increase the operational resilience of the Company in the face of climate risks and minimize negative environmental impacts. Failure to implement climate adaptation and mitigation measures may result in prolonged operational disruptions, increased personnel and financial losses caused by climate-related events. It could also exacerbate global warming due to increased carbon emissions and lead to additional operational costs associated with purchasing carbon credit under various carbon regulatory frameworks.

Long-term references have been made to the carbon reduction strategies and goals of the International Air Transport Association (IATA) to promote aircraft decarbonization measures. In November 2021, the Company made a formal commitment to achieve net-zero carbon emissions by 2050 and initiated the preliminary planning of short, medium, and long-term decarbonization strategies. In June 2022, the Company officially signed up to join the Science Based Targets initiative (SBTi) and was officially in June 2024. We set a 2031 target to reduce Scope 1 and Scope 3 carbon emissions intensity from aviation fuel by 40% as compared to 2019. We will continue tracking carbon reduction progress to achieve this target.

• Conduct annual greenhouse gas inventories according to ISO 14064 since 2016.
• Implement the Task Force on Climate-related Financial Disclosures (TCFD) to manage climate change-related risks and opportunities.
• Implement fuel-saving measures for aircraft and continuously optimize fuel efficiency for flight operations.
• Promote Sustainable Aviation Fuel (SAF) and the use of renewable energy sources, working towards achieving net-zero carbon emissions by 2050.

• Conduct greenhouse gas inventories for subsidiaries and obtain verification from external organizations, as required by the Financial Supervisory Commission (FSC).
• In 2024, reduce non-renewable energy consumption of own facilities in Taiwan by 6% compared to 2018.
• Fuel efficiency improvement targets for 2023:
  • Passenger transport: 4.111 L/100RPK
  • Cargo transport: 0.095 L/FTK
• In 2024, use sustainable aviation fuel in two flights and reach 10,000 US gallons in annual fuel consumption.
• In 2024, submit reduction targets to the Science Based Targets initiative (SBTi).
• Reach a renewable energy (green electricity) consumption of 650,000 kWh at Taiwan own facilities by 2024.
• Achieve a CDP (Carbon Disclosure Project) rating of B or higher annually.
• Attain annual fuel savings of 13,500 tons from flight operations.

• In 2025, achieve a 0.5% usage of sustainable aviation fuel.
• In 2025, reduce non-renewable energy consumption of own facilities in Taiwan by 7% compared to 2018.
• In 2025, achieve a 10% usage of renewable energy of own facilities in Taiwan.

• Achieve net-zero carbon emissions by 2050.
• In 2031, achieve a 40% reduction in Scope 1 and Scope 3 carbon emissions intensity from aviation fuel as compared to 2019.
• In 2035, achieve a 50% usage of renewable energy of own facilities in Taiwan.

• The Environmental Committee oversees the establishment of environmental protection and energy management goals and targets, as well as the implementation of management plans. They also conduct quarterly performance management to ensure progress and compliance.