Climate Change Data

Environmental Metrics

ESG Focus Areas

• Company Governance
• Environmental Protection
• Supply Chain Collaboration
• Employee Well-being
• Social Responsibility

Environmental Achievements

• Reduced carbon emissions by 19,186 kgCO2e compared to 2018 through energy efficiency measures (e.g., replacing lighting and air conditioning equipment, promoting energy conservation).

Social Achievements

• Launched and maintained the "Strongest Citizen 5K" running event, engaging over 3000 participants annually and promoting community health and well-being.
• Donated 19 LCD computer monitors for reuse.
• Partnered with universities for student internships.

Governance Achievements

• Established a robust corporate governance framework, including an audit committee and a remuneration committee.
• Implemented an anti-corruption management system and code of conduct.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic (e.g., port congestion, labor shortages, increased freight costs).
• Climate change related risks (e.g., extreme weather events impacting shipping schedules).

Mitigation Strategies

• Established a pandemic response team and implemented various mitigation strategies (e.g., remote work, staggered shifts, enhanced hygiene protocols).
• Chartered flights to secure cargo capacity during peak demand.
• Maintained close communication with clients to address supply chain challenges and cost increases.

Supply Chain Management

Supplier Audits: 3 suppliers audited (100% of targeted suppliers)

Responsible Procurement

• AEO compliance requirements for suppliers
• Supplier code of conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards

Certifications: AEO (Authorized Economic Operator)

UN Sustainable Development Goals

• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Initiatives contributing to these goals are detailed throughout the report.

Awards & Recognition

• China Airlines Million Dollar Award (2018)
• EVA Air Million Dollar Award (2018)

Environmental Metrics

ESG Focus Areas

• Company Governance
• Environmental Protection
• Supply Chain Collaboration
• Employee Well-being
• Social Responsibility

Environmental Achievements

• Reduced carbon emissions by 7,561 kgCO2e compared to 2020 through energy saving measures.
• Switched to office supplies from internationally certified eco-friendly suppliers.

Social Achievements

• Organized company-wide charity sales, donating proceeds to Hengchun Christian Hospital.
• Launched employee well-being programs including a gym, health checkups, and family day activities.
• Maintained a 1:1 ratio of average monthly salary and compensation for female and male employees.

Governance Achievements

• Established an audit committee and a remuneration committee.
• Board diversity: 33.33% independent directors.
• Implemented anti-corruption training and guidelines.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to the COVID-19 pandemic.
• Fluctuations in international oil prices impacting costs.
• Climate change risks (physical and transition risks discussed in detail in the report).

Mitigation Strategies

• Developed alternative sourcing strategies and diversified logistics options.
• Implemented cost-adjustment strategies with clients.
• Developed and implemented comprehensive COVID-19 prevention and control measures.
• Implemented TCFD-aligned risk assessment mechanisms for climate change.

Supply Chain Management

Supplier Audits: 3/year (100% of audited suppliers)

Responsible Procurement

• Supplier Code of Conduct, AEO compliant supply chain management system.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, impacting transportation and warehousing.

Transition Risks

• Regulatory changes related to fuel emissions, market shifts in shipping.

Opportunities

• Development of energy-efficient operations, increased demand for sustainable logistics solutions.

Reporting Standards

Frameworks Used: GRI Standards

Certifications: AEO (Authorized Economic Operator)

Third-party Assurance: Deloitte & Touche

UN Sustainable Development Goals

• SDG 3 (Good Health and Well-being)
• SDG 7 (Affordable and Clean Energy)
• SDG 8 (Decent Work and Economic Growth)
• SDG 12 (Responsible Consumption and Production)
• SDG 13 (Climate Action)

Initiatives contributing to these goals are detailed in the report.

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Various awards from airlines for outstanding performance.

Environmental Metrics

ESG Focus Areas

• Company Governance
• Environmental Protection
• Supply Chain Collaboration
• Creating a Happy Workplace
• Social Care
• Operating Performance
• Human Rights
• Energy and Greenhouse Gas Management

Environmental Achievements

• Reduced greenhouse gas emissions by 3.7% in 2022 compared to 2021. Reduced paper consumption by 11% in 2022 compared to 2021.
• Implemented energy-saving measures, aiming for a 1% annual reduction in electricity consumption.
• Installed 7 motion sensor faucets in 2021, saving an estimated 25% water per faucet daily.
• Used environmentally friendly office supplies with international certifications.
• Hong Kong branch participated in the "Ocean Pioneer Project," conducting two beach cleanups.

Social Achievements

• Organized the "Strongest Citizen 5K" public running event monthly, engaging thousands of participants.
• Hong Kong branch participated in a charity sale and donation event with the Salvation Army.
• Hong Kong branch participated in a forest restoration project.
• Maintained 100% employee participation in performance and career development reviews.
• Increased average employee training hours to 111.56 hours in 2022 (from 7.21 hours in 2021).
• Implemented a new birthday leave policy in 2022.
• Employed 2 people with disabilities in 2022, meeting legal requirements.
• Held 4 labor-management meetings in 2022.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to geopolitical risks and climate events.
• Fluctuations in international oil prices.
• Increased competition in the logistics industry.
• Restrictions on access to certain international flight routes.
• Climate change risks (physical and transition risks).

Mitigation Strategies

• Developed alternative sourcing strategies.
• Adjusted pricing strategies based on oil prices.
• Expanded cooperation with airlines of other nationalities.
• Established warehouses and adopted diversified transportation methods.
• Established overseas branches.
• Implemented energy-saving measures and reduced waste.
• Provided clients with diverse logistics options.
• Adjusted client transportation efficiency and reduced storage costs.

Supply Chain Management

Supplier Audits: 3 suppliers audited in 2022 (100% of targeted suppliers).

Responsible Procurement

• AEO (Authorized Economic Operator) standards for supplier selection.
• Requirement for suppliers to comply with international human rights standards (no child labor, forced labor, discrimination).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters affecting transportation and storage

Transition Risks

• Changes in regulations and market shifts
• Increased costs due to fuel regulations

Opportunities

• Development of energy-efficient products and services
• Increased demand for resilient logistics solutions

Reporting Standards

Frameworks Used: GRI Standards

Certifications: AEO (Authorized Economic Operator)

UN Sustainable Development Goals

• SDG 3
• SDG 7
• SDG 8
• SDG 10
• SDG 12
• SDG 13
• SDG 15
• SDG 17

Initiatives align with various SDGs through environmental protection, social responsibility, and economic growth.

Awards & Recognition

• Ministry of Education's Sports Administration's 'Sports Enterprise Certification'
• Awards from various airlines for sales performance

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Global economic downturn impacting export orders and investment.
• Geopolitical risks affecting oil prices, shipping costs, and delivery times.
• Increased US customs inspections of goods from Asia.
• Increased competition in the logistics market.
• Supply chain disruptions due to global events.
• High energy costs leading to weak demand.
• Rising inflation and tighter monetary policy.

Mitigation Strategies

• Adjusting operational strategies.
• Expanding into new customer segments (e.g., Southeast Asia, US).
• Strengthening relationships with shipping companies to secure favorable pricing and capacity.
• Developing alternative sourcing strategies.
• Improving service quality to retain existing clients.
• Developing customized services to enhance efficiency and profitability.
• Developing a global logistics system (GLS) and last-mile delivery system (LMS).
• Investing in IT capabilities and employee training.
• Strengthening internal collaboration and providing optimal logistics solutions.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with AEO regulations

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI

Certifications: ISO9001 (Hong Kong branch)

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Numerous awards from airlines (e.g., China Airlines, EVA Air, Hong Kong Airlines)

Environmental Metrics

ESG Focus Areas

• Social Welfare

Social Achievements

• Launched beach cleanups and tree planting activities in Hong Kong and Taiwan in 2020, expanding to other subsidiaries.

Climate Goals & Targets

Environmental Challenges

• Increased fuel charges impacting air freight.
• Fluctuations in ocean freight rates due to supply and demand imbalances, labor actions, and new EU carbon emission regulations.

Mitigation Strategies

• Major alliances in the southwest US have combined or reduced flights to stabilize freight rates.
• Maersk and Hubrod drastically reduced flights to increase freight rates.
• Actuaria calculation of carbon tax and passing it on to users in response to EU 2024 Carbon Emissions Trading Scheme (ETS).

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• EU 2024 Carbon Emissions Trading Scheme (ETS)

Environmental Metrics

ESG Focus Areas

• Not disclosed

Environmental Achievements

• Not disclosed

Social Achievements

• Ranked 11th in revenue in the warehousing and transportation industry by Commonwealth Magazine's 2022 Top 2000 Service Industries ranking; Ranked 260th in national service industry revenue; Ranked 208th in national service industry after-tax net profit; Ranked 203rd in national service industry profitability; Ranked 231st in national service industry revenue growth rate.

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Not disclosed

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed