EVA Air has formulated a comprehensive management approach, including input resources, policies, commitments, and confirmed the complete action plan. By investing resources in internal sustainable management and service models, it creates maximum value for all major stakeholders.
01
Supply Chain Management
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 can increase enterprise risks, affecting product quality, cost, lead time, and directly impacting business operations.
- Formulate the "EVA Air Supplier Sustainable Development Social Responsibility 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 supply chain conferences to communicate EVA Air's sustainability goals and annual requirements for suppliers. We also invite high-performing suppliers to share their sustainable management 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 Air 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) signing 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.
- Supplier Code of Conduct (SCoC) signing rate: 100%.
- Sustainability Assessment Questionnaire (SAQ) response rate: 100%.
- Completion rate of supplier education and training: 100%.
- Tracking the status of the supply chain through supply chain conferences.
02
Personal Information Protection and Cyber Security
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. Mitigate the risk of information security or personal data breaches to prevent operational disruptions, privacy violations, and regulatory penalties which may damage the Company's reputation and social credibility.
- Considering business development, the Company formulated and announced the "Information Security Policy", requiring all personnel, business partners and their employees, temporary workers, visitors, 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 information security seminars based on job categories and drill analyses.
- 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.
- In 2023, enhance the system authorization and review mechanism to achieve centralized management of permissions and improve the correlation of job changes.
- In 2023, conduct information security seminars for mid-level and junior executives.
- In 2024, perform inventory of information assets and optimize risk assessment mechanisms.
- In 2024, establish personal data regulation tracking and compliance discrepancy management.
- Complete the enhancement of endpoint security controls.
- Complete the version update and re-certification of the Information Security Management System to ISO 27001:2022.
- Complete the implementation of ISO 27701:2019 Privacy Information Management System and become certified.
- All personal data-related operations are fully compliant with ISO 27001 and ISO 27701.
- 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.
03
Operational Performance
The strong growth in demand for aviation services has provided favorable conditions for the industry’s growth. 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.
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.
- It is expected that three new destinations will be developed and the fleet will be flexibly deployed to increase market share and maximize the benefits of network connectivity to meet the changes in passenger and cargo market demand.
- It is expected that two new 787 aircraft will be put into operation at Songshan Airport to gradually replace the fleet 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.
- Eleven Boeing 787 Dreamliners and one 777F freighter will be delivered from 2024; three 777-300ER passenger aircraft will be converted to freighters starting in 2026.
- Comprehend market demand dynamics, and develop potential routes to strengthen market competitiveness.
- We will introduce eighteen A350-1000 wide-body aircraft from 2026 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$184.02 billion for 2023 and actually achieved NT$200.36 billion (of which NT$135.79 billion was from passenger transportation, NT$41.38 billion was from cargo transportation, and NT$23.18 billion was from other revenue sources), surpassing budget goal with 109%. Expected net profit before taxes was NT$10.10 billion and actual net profit before taxes amounted to NT$28.84 billion, for a goal achievement rate of 286%. Net profit attributable to the parent company was NT$21.59 billion.
04
Talent Development and Cultivation
In order to build a competitive, diverse, and equal workplace environment, EVA Air has invested heavily in education and employee training for talent cultivation. We have adopted a flexible two-track system for management and professional career paths. This allows for employee development that meets each employees’ particular needs and creates mutual growth. We also provide advanced trainings, incentives, promotions, and job rotation options, based on their needs and skills. We regularly review employee remuneration, benefits, and career development to consolidate talents. If human resources were not efficiently used, this could affect the Company’s competitiveness; and employee turnover could affect our the transmission of professional expertise and overall sustainability.
- The Company holds internal meetings on a monthly basis to communicate its future development, business strategies, and important messages and measures. This allows employees to understand the Company's operational status and provide timely feedback, fostering a sense of unity and engagement.
- Various communication channels and an Employee Assistance Program (EAP) are provided to allow employees to express their thoughts and suggestions while maintaining privacy.
- Recruitment is conducted annually based on operational conditions and manpower needs, providing equal employment opportunities. Internal rotation and promotion plans are implemented, along with competitive benefits and compensation, which broader career development for employees.
- Employee engagement is conducted every two years to understand employee opinions and needs, serving as an important reference for improving the Company’s practices.
- 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.
- The target for female senior executives in 2023 is to reach 25.4%.
- Promote reserve talent deployment and cross-functional training.
- Hold at least one internal lecturer training course or gender equality related course every year.
- The target for female senior executives in 2025 is to reach 25%.
- Establish mechanisms for nurturing key talents and developing succession plans.
- Conduct internal training programs for seed speakers in different units based on job attributes.
- Continuously review the talent pool and cultivation plans in a rolling manner.
- All employees complete the training on gender equality-related topics and possess adequate awareness.
- Conduct two annual performance evaluations 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.
05
Recruitment and Retention
There is a worldwide labor shortage, and fierce competition in the industry. In response to this, EVA Air offers good benefits and a sound promotion system. This helps us attract good talent, then enhance employee satisfaction, which in turn reduces costs for recruiting and training new employees that would result from turnover.
Maintain a balance between recruitment cost and employee quality; enhance employee satisfaction; improve professional skills and team diversity; ensure stable business operations and allow sustainable development.
Offer competitive salary and benefits packages, diversified development opportunities, and a promotion system that allows us to retain talent, widen recruitment channels, optimize recruitment processes, and utilize technology to improve recruitment efficiency.
- Achieve an employee participation rate of at least 60% in employee satisfaction 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 employee satisfaction 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 employee satisfaction surveys.
- Achieve a turnover rate of less than 5%.
Determine whether all vacancies are filled; record period starting from time recruitment begins to final hiring stage; regularly compare historical data to ensure shorter timelines.
06
Occupational Safety and Health Management
We are committed to providing employees with a healthy and safe working environment, fulfilling our social responsibility as an employer. Occupational diseases, occupational injuries, and workplace accidents not only affect employee health and reduce attendance and work efficiency, but they can also result in medical expenses and potentially lead to legal costs due to labor disputes, impacting the Company's reputation.
We have established an "Occupational Health and Safety Policy" and commit to the following: adhering to occupational health and safety regulations to reduce operational risks, implementing risk management across all levels to cultivate a safety-oriented culture, and continuously improving our practices to fulfill our social responsibility. Our ultimate goal is "zero violations, zero accidents, and zero risks," aiming to create a harmonious work environment and open communication channels. We spare no effort in ensuring the safety and health of our employees.
- Conduct workplace hazard identification and risk assessment at least once a year.
- Regularly arrange occupational health and safety training for employees, such as traffic safety, fire and disaster drills, first aid training, occupational accident investigation techniques, musculoskeletal health education, etc.
- Establish communication channels for safety and health, encouraging internal and external personnel to provide feedback if they identify any occupational health and safety risks or have related suggestions.
- Annual health check-ups for employees.
- FR<7.4 incidents/million working hours (Note)
- Completion rate of annual employee health check-ups: 100%
- FR<6.0 incidents/million working hours
- FR<5.0 incidents/million working hours
- Conduct annual ISO 45001 and TOSHMS management system inspections and internal audits.
- Conduct annual ISO 45001 and TOSHMS management system management reviews.
- Pass the surveillance audit or recertification audit of ISO 45001 and TOSHMS management systems annually.
- Hold occupational health and safety committee meetings every three months to track performance.
- Number of employees who received annual medical examinations/total number of employees eligible for annual medical examinations
07
Labor Relations and Human Rights Protection
- 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.
- Formulate the “Human Rights Policy Statement”, create an environment that ensures human rights protections, respect, and compensation, prohibit all violations of human rights and 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.
- 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.
- Periodically conduct human rights due diligence and hold trainings on human rights issues.
- Engage in group agreements regarding labor terms and legally-enforceable employee/management agreements, in accordance with the principles of honesty and trust; forge reasonable consensus and sign collective agreements; and by doing so, maintain harmonious labor relations.
- 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.
- Ensure that the “Human Rights Policy Statement” is formulated and conduct human rights due diligence.
08
In-flight Catering Management
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).
09
Fleet Planning
As the pandemic wanes, the global supply chain faces new changes that may bring along risks in quality and lead-time, which in turn could affect the delivery schedule of new aircraft. An effective fleet composition and planning can assist the Company in quickly adjusting the configuration of passenger and cargo aircraft after the pandemic, maintaining the Company's operational competitiveness.
In response to market demand changes, the Company continues to evaluate new aircraft to replace old ones. The newly introduced aircraft models have shown approximately 20% improvement in fuel efficiency compared to the phased-out models.
In recent years, the Company has already introduced 777 freighters and 787 passenger aircraft. In March 2023 and May 2024, the Company signed agreement with Boeing, and it is expected to introduce additional 5 brand-new 787-9 passenger aircraft between 2025 and 2027, 4 brand new 787-10 passenger aircraft by 2029 respectively. The total number of 787 aircraft in the future fleet will reach 30.
- In 2023, fleet to reach a total of 15 aircraft.
- In 2024, the fleet reach a total of 19 aircraft.
- In 2029, the fleet reach a total of 30 aircraft.
- Delivery schedule of new aircraft.
10
Customer Relationship and Service Innovation
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.
- 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.
11
Flight Safety
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. In the post-pandemic economic recovery, 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.
12
Climate Change Adaptation and Mitigation
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 committed to setting decarbonization targets following the SBTi guidelines within two years, with annual reviews of target achievements.
- 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 and pass ISO 14064 verification annually.
- In 2023, reduce non-renewable energy consumption of operating sites in Taiwan by 5% compared to 2018.
- Fuel efficiency improvement targets for 2023:
- Passenger transport: 5.420 L/100RPK
- Cargo transport: 0.212 L/FTK
- In 2023, using SAF on one 787 delivery flight.
- Conduct greenhouse gas inventories for subsidiaries in compliance with the regulations of Financial Supervisory Commission (FSC) and pass external verification.
- In 2024, submit reduction plan and target to Science Based Targets initiative (SBTi).
- In 2024, use sustainable aviation fuel in two flights.
- In 2025, achieve a 2% usage of sustainable aviation fuel.
- In 2025, reduce non-renewable energy consumption of operating sites in Taiwan by 7% compared to 2018.
- In 2025, achieve a 10% usage of renewable energy of operating sites in Taiwan.
- Issue a Task Force on Climate-related Financial Disclosures (TCFD) report.
- Achieve net-zero carbon emissions by 2050.
- In 2030, reduce non-renewable energy consumption of operating sites in Taiwan by 12% compared to 2018.
- In 2035, achieve a 10% usage of sustainable aviation fuel.
- In 2035, achieve a 50% usage of renewable energy of operating sites 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.