TIDMAIRC
RNS Number : 3704X
Air China Ld
25 April 2023
Air China Limited
2022 Corporate Social Responsibility Report
April 2023
Contents
About this Report
..............................................................................................................
1
Chairman's Statement
.......................................................................................................
2
ESG Statement from Board of Directors
........................................................................
4
About Air China
................................................................................................................
5
Honors and Awards
..........................................................................................................
9
Responses to UN 2030 Sustainable Development Goals (SDGs)
................................. 10
1. Sustainable Development Management
........................................................... 13
1.1 Corporate Governance
..............................................................................
13
1.2 Social Responsibility Management
............................................................ 16
1.3 Guidance of Party Building
.......................................................................
20
1.4 Comprehensive Risk Management
........................................................... 21
1.5 Anti-corruption and Business Ethics
........................................................ 24
2. Safety Development ........................................................................................... 26
2.1 Safety Management .................................................................................... 26
2.2 Safety Culture ............................................................................................. 28
2.3 Safety Training ........................................................................................... 29
3. Green Operations .............................................................................................. 31
3.1 Environmental Guidelines
................................................................................
31
3.2 Improvement of Environmental Management System
................................... 31
3.3 Addressing Climate Change
.............................................................................
32
3.4 Emissions Management
.....................................................................................
38
3.5 Use of Resources
................................................................................................
41
3.6 Biodiversity Conservation
.................................................................................
43
3.7 Corporate Green Responsibility
.......................................................................
43
4. Product Responsibility ...................................................................................... 45
4.1 Quality Service
...................................................................................................
45
4.2 Responsible Supply Chain
................................................................................
49
4.3 Coordinated Development of the Industry
...................................................... 50
4.4 Digital Transformation
.....................................................................................
51
4.5 T echnological I nnovation
..................................................................................
52
5. Employee Development
...............................................................................................
53
5.1 Equal Employment
............................................................................................
53
5.2 Training and Development
...............................................................................
56
5.3 Occupational Health and Safety
.......................................................................
57
5.4 Incentives and Care
...........................................................................................
58
6 Public Welfare
..............................................................................................................
60
6.1 Rural Revitalization
...........................................................................................
60
6.2 N eighbourhood Assistance
................................................................................
63
6.3 Volunteer A ctivities .................................................................................... 63
6.4 Supporting the C ommunity
.......................................................................
64
Appendix
..........................................................................................................................
67
Outlook for 2023
......................................................................................................
67
Table of Major Indicators
.......................................................................................
68
HKEX ESG Indicator Index
..................................................................................
70
GRI Index
................................................................................................................
73
Major Laws, Regulations and Corporate Policies
................................................ 76
Third-Party Assurance
...........................................................................................
80
Feedback Collection
................................................................................................
83
About this Report
This report presents Air China Limited's performance in 2022. In
accordance with the requirement for social responsibility
stipulated by the SASAC of the State Council, we leverage our
strengths in core airline operations, and continuously strengthen
our social responsibility management and disclosures. It is
demonstrated in the report that our commitment and actions in key
areas such as implementing national strategies, ensuring safe
development, addressing climate change, practicing green
development, enhancing product responsibility, and focusing on
employee development and community welfare. We hope you can feel
our sincerity and commitment through this report, and thank for the
continuous support to our reform and development.
-- Reporting Period
This report covers the period from 1 January to 31 December in
2022. To enhance its comparability and completeness, the report
also covers part of the work results of 2023.
-- Scope of the Report
This report is primarily about Air China Limited, but also
involves its branches, operating units, supporting units, and main
subsidiaries such as Aircraft Maintenance and Engineering
Corporation (Ameco), Shenzhen Airlines Company Limited (Shenzhen
Airlines), Beijing Airlines Co., Ltd. (Beijing Airlines), Dalian
Airlines Co., Ltd. (Dalian Airlines), and Air China Inner Mongolia
Co., Ltd (Inner Mongolia Airlines).
-- Basis of Preparation
This report is prepared in accordance with relevant
requirements, including the Guidelines for National Enterprises on
Fulfilling Corporate Social Responsibility released by the SASAC of
the State Council, the Guidelines No. 1 on the Application of
Self-Regulation Rules for Listed Companies - Standard Operations
released by the Shanghai Stock Exchange (SSE), and the
Environmental, Social and Governance Reporting Guide of the Stock
Exchange of Hong Kong Limited (HK-ESG), with reference to the
standards and requirements such as Global Reporting Initiative
Sustainability Reporting Standards (GRI Standards) of the Global
Sustainability Standards Board (GSSB), GB/T36001 Guidance on Social
Responsibility Reporting and other guidelines for the aviation
service industry.
-- Release Cycle
This is our 15th consecutive social responsibility report, which
we release annually. The Chinese version of the previous year's
report is released in March each year, and the English version is
released in April.
-- Sources of Data
All the financial data referred in this report, applying to
China Accounting Standards for Business Enterprises, is extracted
from the audited annual reports of Air China Limited, while the
other data comes from official internal documents and relevant
statistics of Air China Limited.
-- Abbreviations
In this report, "we", "the Company" or "Air China" refers to Air
China Limited, while "CNAHC" refers to China National Aviation
Holding Corporation Limited.
-- Accessibility of the Report
This report is prepared in both Chinese and English, and should
there be any discrepancy in meaning between the two versions, the
Chinese version shall prevail. Electronic copies of this report in
both Chinese and English are also available for downloading from
the Company's website. If you wish to acquire a printed version or
raise suggestions and/or comments on this report, please contact us
at:
Website: www.airchina.com.cn
Address: No. 30, Tianzhu Road, Airport Industrial Zone, Shunyi
District, Beijing, China
Contact unit: Office of the Board
Tel: 86-10-61462152
Email: baixiao@airchina.com
Chairman's Statement
The year 2022 marks a crucial milestone in the full
implementation of the 14th Five-Year Plan and the start of a new
journey to build a modern socialist nation in all aspects.
Throughout the previous year, we ensured the coordination of work
safety and operations, as well as safety and development, while
earnestly fulfilling our environmental, social, and governance
responsibilities. We made stable and orderly progress in all
aspects of our work, laying a solid foundation for achieving
high-quality sustainable development.
Insisted on safe development and assumed responsibility for
safety. Air China established the concept of safe development based
on the "14th Five-Year Plan," adhering to the overall national
security concept and the guiding principles of General Secretary Xi
Jinping's important remarks on work safety and instructions on
civil aviation safety work. We took concrete steps to effectively
implement the work safety and civil aviation safety. This entailed
carrying out thorough safety inspections and investigations in
order to identify and manage potential hazards. We completed the
three-year special safety rectification successfully. For ensuring
safe operations, we conducted an in-depth survey of the technical
status of the entire fleet based on the characteristics of
production and operations, continued to strengthen the prevention
and control of flight operation risks, and enhanced security
assessment of key routes. These efforts have improved our ability
to provide safety support. We worked to improve our employees' and
teams' adherence to the code of conduct, raise our front-line
employees' safety and regulatory awareness, and solidify our safety
efforts. During the reporting period, we completed high-quality
support tasks for major events such as the 2022 Beijing Winter
Olympics and the 20th CPC National Congress.
Practiced low-carbon development, and fulfilled environmental
responsibilities. Air China responded proactively to the national
"dual carbon" strategy of "peaking carbon emissions by 2030 and
achieving carbon neutrality by 2060," making significant progress
in green, circular, and low-carbon development. We developed our
Action Plan for Peaking Carbon Emissions to address climate change
by incorporating the concept of addressing climate change into
corporate governance and continuously strengthening climate risk
identification and management in a comprehensive and
multi-dimensional manner. We optimized our green development
management system, diversified our management approaches, and
strengthened energy resource management in accordance with the
concept of green operations. We also promoted in Action Plan for
Peaking Carbon Emissions initiatives such as plastic and waste
reduction, "Enjoying Low-Carbon Travel," a green travel service on
our APP, and the transition from oil to electricity and improved
environmental management capacity and efficiency.
Put people first and shouldered our responsibilities for
customers and employees. Our work's ultimate goal is employee- and
customer-centered. Air China enhanced its service management
system, continuously optimized air travel service procedures,
enhanced flight regularity, launched special service products, and
steadily digitalized our service, aiming to improve passengers'
travel experiences. We actively explored upstream and downstream
supply chain management, deepened communication and cooperation
with industry partners, and made concerted efforts to create a
sustainable industry ecology. Focusing on the development of our
employees, we developed a diversified training system, optimized
career paths, and offered a great environment for them to hone
their skills. We are dedicated to providing our staff with the
highest level of care while resolving their day-to-day challenges
by offering them medical support, materials, and psychological
counseling. We genuinely adhere to our commitments to their
welfare, growth, and long-term corporate development.
Participated in social welfare and performed community
responsibility. We implemented the rural revitalization strategy to
ensure stable progress in poverty alleviation and no return to
poverty. Our goal is to provide unwavering support and stability in
financial assistance, talent selection, and consumption assistance
in general. Our efforts included assisting our support areas of
Zhaoping County, Guangxi Province, and Sonit Right Banner, Inner
Mongolia, in consolidating and expanding the results of poverty
eradication and promoting rural revitalization in a step-by-step
fashion. For 5 consecutive years, we have obtained the highest
grade in the performance evaluation of poverty alleviation to the
state-owned enterprises, since the assessment was launched. We were
active participants in a variety of social welfare activities. For
example, we provided support for the Beijing Winter Olympics and
Paralympics. We selected and dispatched 197 volunteers for sports
service and terminal transfer support on-site throughout the entire
process, in addition to fulfilling our obligations as an official
partner. We were awarded the honorary title of "Beijing Advanced
Organization" during the 2022 Beijing Winter Olympics and
Paralympics. These were part of our efforts to give back to society
and contribute to social harmony and common prosperity.
Made significant progress in building the capacity and system of
governance. To build a "professional, responsible, standardized and
efficient" Board of Directors, we completed the Board of Directors'
election and systematically improved its quality and
decision-making by focusing on its operations, decision-making, and
service guarantees. We strengthened the Board of Directors
supervisory role, enhanced the Company's anti-risk capability, and
strived to build a high-quality Board of Directors to help create a
world-class air transport company.
The year 2023 marks the start of the implementation of the
guiding principles of the 20th CPC National Congress, as well as a
milestone for the implementation of the 14th Five-Year Plan. Air
China will continue to be guided by Xi Jinping Thought on Socialism
with Chinese Characteristics for a New Era, remain steadfast in
pursuing development, focus on seeking stable progress, and fully,
accurately, and comprehensively implement the new development
concept. By accelerating our development into a world-class air
transport enterprise, we will serve and integrate into the new
development pattern, prioritizing high-quality development and
making new and greater contributions to building a modern socialist
country in all aspects.
Ma Chongxian
Chairman
Air China Limited
ESG Statement from Board of Directors
Air China's Board of Directors is the highest responsible and
decision-making body for ESG affairs. It supervises affairs
concerning ESG that may affect the Company's business or operation,
shareholders, and other stakeholders by listening to reports from
ESG implementation units at regular communication meetings to
ensure the consistency between ESG concepts and corporate
strategies. The Board is responsible for approving the
identification of material issues and the Company's social
responsibility reports.
In 2022, Air China further improved its ESG working mechanism,
explored the establishment of an ESG management system, and
promoted the continuous improvement of ESG professional governance
and risk management capabilities, in accordance with the
requirements of SASAC's work on improving the quality of listed
companies.
The Board has established a Corporate Social Responsibility
(CSR) Leadership Panel, which is responsible for formulating CSR
strategy and approving plans, and guiding the promotion and
implementation of CSR work. It has also established an Office of
CSR Leadership Panel, which is responsible for formulating annual
CSR plans, coordinating the implementation of CSR plans with the
progress of work tasks.
The Board regularly evaluates the importance of ESG issues,
discusses and identifies the Company's ESG risks and opportunities,
and regards the management and improvement of key issues as its
annual ESG work. The Board of Directors reviews and confirms the
results of the materiality assessment, takes the key issues as part
of the formulation of the Company's overall strategy, and
supervises the management and performance of these issues.
In 2022, the Board of Directors considered and adopted the
ecological civilization strategy and the Action Plan for Peaking
Carbon Emissions , and regularly reviewed the strategy, action plan
and progress of the Company's Dual Carbon targets. The professional
committees of the Board of Directors also continued to report to it
on matters related to safety management and service optimization to
ensure the continuous and stable progress in related work.
This report fully disclose the progress and outcomes of Air
China's ESG work in 2022, which was reviewed and approved by the
Board of Directors on March 30, 2023.
About Air China
1. Company Profile
Air China Limited was founded in 1988, formerly known as Air
China International Corporation. In October 2002, Air China
International Corporation integrated the air transportation
resources of China Southwest Airlines and China National Aviation
Company to form a new entity. On September 30, 2004, Air China
Limited was founded in Beijing. The Company was then listed both in
Hong Kong and London on 15 December of the same year, before listed
in the domestic A-shares market on August 18, 2006.
Air China is the only flag-carrier aviation company in China,
and a member of the world's largest airline alliance Star Alliance,
the official aviation transportation partner of the 2008 Beijing
Olympics and Paralympics and the 2022 Beijing Winter Olympics and
Paralympics. Air China takes the lead among domestic airlines in
passenger transportation and other related service, providing
important international and domestic transportation service such as
emergency flights, and charter flights for VIPs and leaders of
foreign countries. In 2022, according to the assessment of the
World Brand Lab, Air China boasted a brand value of RMB 213.659
billion, the highest among Chinese civil aviation companies.
Structure of Air China Limited
Management Support Business Management Branches Major Subsidiaries
Division Units
-------------------------- ----------------- ------------------------
Administration Office Operation Control Southwest Branch Aircraft Maintenance
Centre and Engineering
Corporation
-------------------------- ----------------- ------------------------
Strategy and Development Flight Crew Department Zhejiang Branch Shenzhen Airlines
Department Company Limited
-------------------------- ----------------- ------------------------
Human Resources Commercial Committee Chongqing Branch Beijing Airlines
Department Co., Ltd.
-------------------------- ----------------- ------------------------
Finance Department Ground Service Department Tianjin Branch Dalian Airlines
Co., Ltd.
-------------------------- ----------------- ------------------------
Aviation Safety Cabin Service Department Shanghai Branch Air China Inner
Management Department Mongolia Co., Ltd.
-------------------------- ----------------- ------------------------
Flight Technology Training & Development Hubei Branch China National Aviation
Management Department Department Finance Co., Ltd.
-------------------------- ----------------- ------------------------
Assets Management Logistics & Support Guangdong Branch China National Aviation
Department Department Company Limited
-------------------------- ----------------- ------------------------
Operation Standards Information Management Guizhou Branch Air Macau Company
Department Department Limited
-------------------------- ----------------- ------------------------
Product Service Air Marshall Department Branch Air China Development
Department Corporation (Hong
Kong) Limited
-------------------------- ----------------- ------------------------
Stations Management Centralized Procurement Tibet Branch Air China Import
Department Department and Export Trading
Co., Ltd.
-------------------------- ----------------- ------------------------
Legal Department Retiree Service Wenzhou Branch Beijing Golden Phoenix
Department Human Resources
Co., Ltd.
-------------------------- ----------------- ------------------------
Audit Department Hub Development Zhejiang Air Services
Department Co., Ltd.
-------------------------- ----------------- ------------------------
Aviation Security Engineering Maintenance Chengdu Falcon Aircraft
Department Department Engineering Service
Co., Ltd.
-------------------------- ----------------- ------------------------
Office of the Board Air China Shantou
Industrial Development
Company
-------------------------- ----------------- ------------------------
Leading Group Office
of Deepening Reform
-------------------------- ----------------- ------------------------
COVID-19 Pandemic
Prevention & Control
Office
-------------------------- ----------------- ------------------------
Corporate Culture
Department
-------------------------- ----------------- ------------------------
Leading Group Office
of Maintaining Integrity
and Combating Corruption
-------------------------- ----------------- ------------------------
Discipline Inspection
Office
-------------------------- ----------------- ------------------------
Labour Union Office
-------------------------- ----------------- ------------------------
2. Marketing Centers
4 domestic sales centers
4 overseas regional headquarters
50 domestic offices
85 overseas offices
3. Fleet Structure
Type Model Number
Airbus series A319 38
----------- -------
A320/A321 308
--------------------------- -------
A330 60
--------------------------- -------
A350 23
--------------------------- -------
Boeing series B737 261
----------- -------
B747 10
--------------------------- -------
B777 28
--------------------------- -------
B787 14
--------------------------- -------
Comac series ARJ21 15
----------- -------
Business jets 5
-------
Total 762
-------
4. Philosophy of Responsibility
Vision
A leading airline in the world: We want to be a company that is
highly competitive in terms of safe operations, service
capabilities and brand awareness.
Mission
l Putting safety at the forefront: Safety is the bedrock of our
business and is our fundamental responsibility.
l Delivering 4C-based services: 4C is a recap of our service
philosophy that contains four elements: Credibility, Convenience,
Comfort and Choice. It is a microcosm of our responsibilities to
customers.
l Steady development: Formulating leadership strategies, moving
forward steadily, utilizing multi-branding synergies, achieving
operational excellence and striving for healthy and sustainable
development is Air China's responsibility to the stakeholders.
l Helping employees pursue a successful career: Giving our
people opportunities to realize their worth and grow with our
business is Air China's responsibility towards its employees.
l Fulfilling Responsibilities: We fulfill our political,
economic and social responsibilities to serve the country and the
society.
Values
l People orientation Employee orientation and customer
orientation is the guideline on how we deal with people.
l Assumption of responsibility We are ready, willing and able to
assume responsibilities.
l Resolve to get ahead Innovation gives us renewed vigor; we
will never rest on laurels; we will lead the pack.
l Loving to fly We provide seamless services that are
considerate and cheerful, allowing our passengers to truly
experience the pleasure of flying.
Brand Positioning
l Professional and trusted We want to be an outstanding expert
in the field of air transport. We want to be a trusted leader in
the industry.
l World-class standards We want to be an airline well known and
highly respected around the world.
l Chinese flair We want to be an airline that is a showcase of
Chinese culture and China's modern dynamism.
5. The 14th Five-Year Plan
One Goal Advancing high-quality development, accelerating
the construction of a world-class aviation enterprise
Four strategies Hub network strategy
Brand building strategy
Cost advantage strategy
Passenger and cargo flights linkage strategy
---------------------------------------------------------
Five Capabilities Constantly enhanced political capability
Stable and steady profiting capability
Large-scale production organization capability
Standardized basic management capability
Value-driven brand capability
---------------------------------------------------------
Eight Key Areas Promoting safety management and construction to
a new hight
Gaining a new advantage in the optimization of market
layout
Presenting a new look in the structural adjustment
of resources
Reaching a new level of upgraded products and service
Achieving a new breakthrough in the aviation cargo
logistics development
Demonstrating a new achievement in green and low-carbon
development
Entering a new stage of innovation-driven digital
development
Making new results in integrated industrial development
---------------------------------------------------------
Major development goals during the 14th Five-Year Plan
period:
Passenger carried (million person-times): 166.72
Passenger's overall satisfaction (points): 83.5
A ccountable incident s rate of air transportation per 10,000
flight hours <0.11
Creating Social Value
Indicators 2020 2021 2022
ASK (million) 156 , 061 152 , 445 96 , 212
---------- ----------- ------------
RPK (million) 109 , 830 104 , 626 60 , 355
---------- ----------- ------------
ATK (million) 23 , 686 24 , 49 0 16 , 991
---------- ----------- ------------
R TK (million) 13 , 285 13 , 599 8 , 74 0
---------- ----------- ------------
Passenger carried (1,000 person-times 68 , 687
) . 1 69 , 045.2 38 , 605.8
---------- ----------- ------------
Cargo and mail carried (1,000
tonnes) 1 , 113.7 1 , 186.7 844.1
---------- ----------- ------------
Safe flight hours (1,000 hours) 1 , 553 1 , 590 1 , 031 . 8
---------- ----------- ------------
Accountable incidents rate
of air transportation due to
the liability of Air China
per 10,000 flight hours 0 0 0
---------- ----------- ------------
Flight on time performance
(%) 89.15 88.96 95.45
---------- ----------- ------------
Passenger's overall satisfaction
(points) 83.0 84.7 87.5
---------- ----------- ------------
Number of registered aircraft
(unit) 707 746 762
---------- ----------- ------------
Total assets (RMB million) 284 , 071 298 , 415 295,011
---------- ----------- ------------
Year-end market value (RMB
million) 98 , 041 111 , 248 151,691
---------- ----------- ------------
Fuel consumption per tonne-km
(kg/tonne-km) 0.356 0.357 0.358
---------- ----------- ------------
Total energy consumption (1,000
tonnes standard coal) 6 , 967 7 , 151 4 , 631
---------- ----------- ------------
Honors and Awards
-- In December, Air China won the title of "Top 500 World
Brands" by the World Brand Lab in the 16th consecutive year, the
only Chinese civil aviation company got this honor.
-- Meanwhile, Air China was awarded the "China Brand Annual
Award NO.1 (Aviation Service Industry)" and "China Annual Culture
Brand Award".
-- In July, the World Brand Lab released the "China's 500 Most
Valuable Brands 2022", ranking Air China 24th on the list with a
brand value of RMB 213.659 billion, the highest among Chinese civil
aviation companies.
In 2022, Air China was among the first batch to be selected into
the list of China's Enterprises as Front Runners in Industrial
Carbon Peaking, making it the only aviation company on the
list.
In April, the All-China Federation of Trade Unions (ACFTU) held
a conference to honor the 2022 national advanced organizations and
persons. During this event, Air China Chongqing Branch and the
third team of the sixth unit of Cabin Service Department got the
honor.
-- In April, the Flight Crew Department and the Ground Service
Department of Air China were awarded as national advanced civil
aviation organizations.
-- The Civil Aviation Administration of China (CAAC) awarded 10
departments of Air China, the Advanced Air Transport Groups, for
supporting the 2022 Beijing Winter Olympics and Paralympics
-- The Beijing Municipal Government awarded Air China and its
Ground Service Department, the Advanced Group of Beijing, for
supporting the 2022 Beijing Winter Olympic and Paralympics
-- Air China's case was selected as one of the 30 best practices
in the "List of Best ESG Practices for Listed Companies (2022)" by
the China Association for Public Companies
-- Air China was awarded the "2022 Best Practice Case of the
Office of Board of Public Companies" by the China Association for
Public Companies
-- The Company was awarded Class A (i.e., Excellent Information
Disclosure Category) for 2021-2022 Evaluation of Information
Disclosure by Shanghai Stock Exchange.
-- Air China was included into China Social Responsibility 100
Forum's "State-owned Enterprises ESG Top 50 Index" and "State-owned
Enterprises ESG Governance Top 50 Index" in 2022.
-- Air China achieved the highest grade in the performance
evaluation of poverty alleviation for five consecutive years, since
the assessment was launched.
-- In November, the "Golden Phoenix Mother" volunteer assistance
project of the Golden Phoenix Group of the Cabin Service Department
won the Silver Award in the Sixth China Young Volunteer Service
Project Competition.
-- In December, the Company's case was selected as one of the
excellent cases of "Rural Revitalization " in the Blue Paper on
Social Responsibility of State-owned Enterprises (2022).
Responses to UN 2030 Sustainable Development Goals (SDGs)
SDGs Our Actions in Corresponding SDGs Our Actions in Corresponding
2022 Chapter 2022 Chapter
1 NO POVERTY Air China's Rural 2 ZERO HUNGER Support the Rural
targeted Revitalization villages Revitalization
support areas, in agricultural
Zhaoping County infrastructure
of Guangxi construction,
Province improve the
and Sonit Right quality
Banner of Inner of agricultural
Mongolia, have products, and
both officially broaden their
out of the list sales channels.
of national-level
poverty stricken
counties.
------------------ ------------------- ---------------- ------------------ ------------------
3 GOOD Develop Occupational 4 QUALITY About 16 Rural
HEALTH occupational Health and EDUCATION volunteers Revitalization
AND WELL-BEING disease Safety were sent to
prevention Zhaoping County
and control Incentives to support
management and Care education
regulations, , providing a
carry out a full total of 3,310
range of employee hours of
occupational volunteer
disease teaching.
prevention
and control work,
and create a
caring
environment.
------------------ ------------------- ---------------- ------------------ ------------------
5 GER Ensure that Equal Employment 6 CLEAN Continuously Use of Resources
EQUALITY female WATER AND improve the water
employees have Incentives SANITATION resource
fair promotion and Care management
opportunities process and
and career explore
development, water-saving
promote the and environmental
establishment protection
of a technology.
female-friendly
workplace.
------------------ ------------------- ---------------- ------------------ ------------------
7 AFFORDABLE Promot e Use of Resources 8 DECENT Guarantee Employee
AND CLEAN sustainable WORK AND employee Development
ENERGY aviation fuels. ECONOMIC salary and
GROWTH implement
special post
subsidy policies,
continuously
improve employee
performance
evaluation
system and
implement
incentive
policies.
------------------ ------------------- ---------------- ------------------ ------------------
9 INDUSTRY, Insist on driving Digital 10 REDUCED Strictly Equal Employment
INNOVATION corporate Transformation INEQUALITIES implement
AND INFRASTRUCTURE development the employment
by technological policy of
innovation, openness,
establish fairness, and
a leading group equality, and
for informatized commit to
and digital prohibiting
construction discrimination
to effectively against employees
promote the based on factors
construction such as gender,
of informatized race,
and digital nationality,
transformation. physical
conditions,
religion, and
marital status,
insist on equal
pay for equal
work, and
safeguard
the legitimate
rights and
interests
of employees.
------------------ ------------------- ---------------- ------------------ ------------------
11 SUSTAINABLE Encourage Public Welfare 12 RESPONSIBLE Implement a Product
CITIES employees CONSUMPTION comprehensive Responsibility
AND COMMUNITIES to participate AND PRODUCTION service quality
in volunteer management
service and model,
social actively invest
welfare in industry
activities, construction,
give back to continuously
the community improve service
with love, warmth capabilities,
and care. and provide
world-class
service to
passengers.
------------------ ------------------- ---------------- ------------------ ------------------
13 CLIMATE Proactively Addressing 14 LIFE Care for the Biodiversity
ACTION identify Climate BELOW WATER life below Conservation
and respond to Change waters,
the risks brought launch
by climate Use of conservation
change, Resources projects, and
explore carbon contribute to
reduction local ecological
pathways, protection and
and improve restoration.
climate
governance.
------------------ ------------------- ---------------- ------------------ ------------------
15 LIFE Develop special Biodiversity 16 PEACE, Establish a Anti-corruption
ON LAND protection Conservation JUSTICE robust and Business
measures AND STRONG corporate Ethics
and conduct INSTITUTIONS governance
regular system, build Governance
biodiversity a diversified System
conservation Board of
monitoring to Directors,
reduce the impact abide by business
of operations ethics, and
on the deepen
surrounding the construction
natural ecology of a culture
and biodiversity. of integrity.
------------------ ------------------- ---------------- ------------------ ------------------
17 PARTNERSHIPS Continuously Coordinated
FOR THE broaden the Development
GOALS communication of the Industry
channels with
partners, and
lead the
sustainable
development of
the industry
together with
outstanding
peers.
------------------ ------------------- ---------------- ------------------ ------------------
1. Sustainable Development Management
Air China has effectively implemented the new development
concept, followed the sustainable development strategic, and
strengthened sustainable development management to improve
governance capacity, laying a solid foundation for the sustainable
development of the Company.
1.1 Corporate Governance
Air China strictly complies with laws, regulations, and
regulatory requirements such as the Company Law and the Securities
Law of the People's Republic of China. We have established policies
for corporate governance such as the Articles of Association, the
Rules of Procedure of the General Meetings of Shareholders, the
Rules of Procedure of the Board of Directors. Our goal is to
continuously improve the corporate governance system, steadily
enhance corporate governance, and promote the high-quality
development of the Company.
Air China has integrated the Party's leadership with the
corporate governance together through the Articles of Association,
and clarified the leading role Party Committee played in corporate
governance.
The Company's management performs its duties in accordance with
the laws, the Administration Office's Rules of Procedure, and the
Board of Directors' authorization. It carries out the Board of
Directors' resolutions and reports to it on a regular basis. The
Administration Office meetings were held 31 times in 2022.
1.1.1 Board of Directors
The Board of Directors of Air China is the Company's main
decision-making body. It is in charge of making major corporate
decisions in accordance with laws and regulations, as well as the
Company's Articles of Association , providing supervision of the
management and playing the role of strategic, decision-making and
risk prevention. Air China appointed 4 independent directors to its
sixth Board of Directors in 2022, each with extensive experience
and expertise in corporate strategy, auditing, business management,
and legal affairs. This has provided strong backing for the
establishment of a high-quality Board of Directors. The Board of
Directors met 16 times during the year.
Directors in Air China
No. Name Gender Post Expert Background
1 Ma Chongxian Male Chairman Industry Expert
Executive Director
------------------- ------- -------------------------- --------------------------
2 Wang Mingyuan Male Vice Chairman Industry Expert
Executive Director
President
------------------- ------- -------------------------- --------------------------
3 Feng Gang Male Non-executive Director Industry Expert
------------------- ------- -------------------------- --------------------------
4 Patrick Healy Male Non-executive Director Industry Expert
------------------- ------- -------------------------- --------------------------
5 Xiao Peng Male Employee Director Engineering Expert
------------------- ------- -------------------------- --------------------------
6 Li Fushen Male Independent Non-executive Financial Expert
Director
------------------- ------- -------------------------- --------------------------
7 He Yun Male Independent Non-executive Audit and Risk Management
Director Expert
------------------- ------- -------------------------- --------------------------
8 Xu Junxin Male Independent Non-executive Business Management
Director Expert
------------------- ------- -------------------------- --------------------------
9 Winnie Tam Wan-chi Female Independent Non-executive Legal Expert
Director
------------------- ------- -------------------------- --------------------------
Performance of Directors
Trainings and researches are critical measures for the Board of
Directors to continuously strengthen the ability to perform the
duties and the sense of self-discipline, furthermore the corporate
governance capabilities.
In 2022, 3 independent directors attended 3 communication
meetings with SASAC to stay up with requirements of the regulatory
policies and the Director's duties.
4 independent directors attended the Shanghai Stock Exchange's
80th Qualification Training for Independent Directors and received
qualification certifications.
Case: Independent directors visited the Operation Control Center
In 2022, our independent directors conducted 3 surveys at the front
line of 9 departments, including the Commercial Committee, the
Operation Control Centre, Southwest Sales Center, and East China
Sales Center. They gained a comprehensive understanding of the
Company through in-depth research and enhanced their interactions
with the management. Their surveys provided the Board of Directors
the reference for science-based and efficient decision-making.
Professional Committees of the Board of Directors
Air China has established 4 professional committees under the
Board of Directors. These committees are in charge of informing the
Board of Directors about the research and consideration of relevant
proposals and providing with the opinions and recommendations of
independent directors before the Board votes. In 2022, the Board of
Directors' professional committees held 29 meetings and received 17
special reports.
Committees Main Responsibilities Coordinated
Departments
Audit and 1. Supervise and evaluate Human Resources Held 9 meetings and
Risk Control the external audit work, Department listened to 2 special
Committee and propose to hire or replace reports in 2022.
(Supervision the external auditors. Corporate
Committee) 2. Supervise and evaluate Culture Department
the internal audit work,
and be responsible for the
communication and coordination
of internal and external
audits of the Company.
3. Review the financial
information of the Company
and its disclosure.
4. Supervise, verify and
evaluate the internal control
and risk management.
5. Receive the Company's
reports on fraudulent behavior,
whistle-blowing, etc.
------------------------------------ -------------------- ------------------------
Nomination 1. Study the selection criteria Legal Department Held 10 meetings and
and Remuneration and procedures for the Company's listened to 11 special
Committee director candidates and Finance Department reports in 2022.
senior management, and make
recommendations to the Company's Audit Department
Board of Directors.
2. Conduct extensive search
for the selection of qualified
candidates for directors
and senior management of
the Company.
3. Review and make recommendations
on the selection of candidates
for directors and senior
management of the Company.
4. Study the evaluation
criteria for directors and
senior management of the
Company, make assessment
and recommendations.
5. Study and review the
remuneration policies and
programs for the directors
and senior management of
the Company.
------------------------------------ -------------------- ------------------------
Strategy 1. Study the Company's long-term Strategy Held 7 meetings and
and Investment development strategic plans, & Development listened to 2 special
Committee major investment and financing Department reports in 2022.
proposals, and major operation
decisions. Finance Department
2. Formulate the Company's
environmental, social and Leading Group
governance structure, objectives, Office of
management policies and Deepening
strategies. Reform
3. Decide on the establishment,
merger and disbanding of
the Company's branches.
------------------------------------ -------------------- ------------------------
Aviation 1. Regularly receive the Aviation Held 3 meetings and
Safety analysis of the Company's Safety Management listened to 2 special
Committee safety situation and report Department reports in 2022.
to the Board of Directors.
2. Study and deal with major Engineering
issues in the safety work Maintenance
of the Company. Department
3. Supervise and guide the
Company's production and Operation
the allocation of human, Control Centre
financial and material resources
to meet the needs of the
Company's safety operations.
------------------------------------ -------------------- ------------------------
1.1.2 General Meetings of Shareholders
The General Meetings of Shareholders are Air China's highest
authority. The Company holds General Meetings of Shareholders in
strict accordance with applicable laws and regulations, the
Articles of Association , and other relevant provisions to ensure
that all shareholders have equal status and can exercise their
rights and interests, such as voting rights and the right to
information.
In 2022, the Company held 4 General Meetings of Shareholders, 1
annual and 3 temporaries, at which 23 proposals were considered and
approved.
1.1.3 Board of Supervisors
The Supervisory Board of Air China has faithfully performed its
supervisory function over the Board of Directors, its members, and
senior management, and has worked to protect the Company's and its
shareholders' legitimate rights and interests in accordance with
the Company Law of the People's Republic of China , the Articles of
Association , and other relevant regulations.
At the end of 2022, the Company's Supervisory Board consisted of
5 supervisors, 2 of whom were representative employee supervisors,
and held 8 meetings of the Supervisory Board during the year.
1.2 Social Responsibility Management
Air China continues to improve its social responsibility
governance system, integrate social responsibility governance into
the Company's overall governance and operations, construct a
governance structure, identify critical issues, strengthen
communication with stakeholders, and implement social
responsibility-related work to promote the Company's sustainable
development.
1.2.1 Social Responsibility Management Framework
Social responsibility management framework
Board of Directors
--------------------------------------------
CSR Leadership Panel The chairman and the vice chairman
are the Panel Heads. Responsible
for formulating CSR strategies
and approving CSR plans, and guiding
the promotion and implementation
of CSR work
--------------------------------------------
Office of CSR Leadership Panel Responsible for formulating annual
CSR plans, and organizing and coordinating
the implementation of CSR plans
and other tasks.
--------------------------------------------
Members of CSR Leadership Panel Operation Control Centre
Office
--------------------------------------------
Commercial Committee
--------------------------------------------
Administration Office
--------------------------------------------
Strategy & Development Department
--------------------------------------------
Human Resources Department
--------------------------------------------
Finance Department
--------------------------------------------
Aviation Safety Management Department
--------------------------------------------
Product Service Department
--------------------------------------------
Legal Department
--------------------------------------------
Corporate Culture Department
--------------------------------------------
Office of the Board
--------------------------------------------
Labour Union Office
--------------------------------------------
1.2.2 Stakeholder Communication
Air China continues to listen voices of regulators,
shareholders, passengers, employees, partners, and other
stakeholders, and expands and optimizes communication channels so
that it can communicate and exchange ideas with all of its
stakeholders in a positive and open manner. We identify critical
issues and actively respond to the needs of all stakeholders by
comprehensively summarizing the Company's characteristics and
changes in the external environment.
l Information disclosure: In 2022, the Company completed the
preparation and disclosure of three versions (i.e., for Shanghai,
Hong Kong, and Japan, respectively) of periodic reports and interim
announcements, and shareholders' circulars with high quality in
accordance with the listing rules. We disclosed 66 interim domestic
announcements, 67 interim overseas announcements, and 2
circulars.
l Investor Relations: In 2022, we organized and participated in
more than 80 investment conferences and research calls. We engaged
in online communication at the 2021 annual report conference, and
2022 Q1 and mid-year earnings conferences. We held online briefing
sessions on FY2021 and Q3 2022 results via the SSE Roadshow Center
platform. We actively responded to investors' concerns through
platforms such as SSE E-interactive and the investor relations page
on our official website.
Stakeholders Communication Expectations Response from Air China
channels and appeals
Government/Domestic Work meetings Integrity, compliance Participating in the
and overseas and briefings and orderly operations planning, research and
regulatory Information Support for important formulation of policies
authorities disclosure and major events and reports on special
Cooperation Zero accident topics
with governments relating to safety Following regulatory
Release of blue operations requirements
books Good corporate Monitoring and evaluation
image Participating in special
training
--------------------------- -------------------------- ---------------------------------
Investors/Shareholders Information Realizing standardized Improving corporate governance
disclosure corporate governance and internal control
Shareholders' Protection of system
meetings investors'/shareholders' Working on investor relations
Investors' meetings interests Strengthening the core
Official website Sustainable development competitiveness
of the Company ability
Shanghai Stock Regular result announcements
Exchange and
other platforms
--------------------------- -------------------------- ---------------------------------
Customers Customer satisfaction Flight safety Establishing branded
surveys and on-time performance lounges
Complaint handling Provision of Promoting certification
New media all-round and of food safety management
high-quality systems
service Strengthening cabin safety
control
Provision of intelligent
service
Improving release mechanism
for information on irregular
flights
Protecting passenger
information
--------------------------- -------------------------- ---------------------------------
Employees Employee satisfaction Protection of Building a multi-level
surveys rights and interests developing channel and
Internal BBS, Focus on the learning path for talents
magazines, emails, Company's development Facilitating the work
and WeChat strategy of Staff Service Centre
Employee representatives' Participation Providing health checkups,
meetings in the Company's psychological counseling,
Activities of management etc.
the trade union and operation Model workers' studios
Establishment Smooth career Cultural and sports activities
of teams development pathways Skill contests
Compensation Helping employees in
and benefits difficulty
--------------------------- -------------------------- ---------------------------------
Partners/Suppliers Daily business Honesty and integrity Strengthening communication
interactions in business operation and cooperation
Partners' meetings Transparency Strengthening supplier
in procurement management
Mutual development Revising and improving
procurement policy
Strengthening suppliers'
capability and awareness
of environmental protection
--------------------------- -------------------------- ---------------------------------
Peers Industry forums Attention to Strengthening alliance
Industry conferences industry development cooperation
and trends Conducting industry discussions
Maintenance of Carrying out industrial
a fair and orderly cooperation
market
--------------------------- -------------------------- ---------------------------------
Community Public welfare Promoting economic Promoting rural revitalization
and charity growth of the Engaging in public welfare
activities communities and charity activities
Volunteer service Supporting public Completing important
welfare events transportation tasks
--------------------------- -------------------------- ---------------------------------
Media Press releases Responding to Publication of CSR reports
Media calls important events and regular performance
and visits of the Company reports
Official new Public image Timely update of new
media platforms and influence developments via Weibo,
Future planning WeChat and Douyin
Open day
--------------------------- -------------------------- ---------------------------------
1.2.3 Disclosure Principles
Materiality: Following national conditions and policies and in
accordance with the relevant regulatory requirements, such as the
ESG Reporting Guide released by the Stock Exchange of Hong Kong and
Guidelines No. 1 on the Application of Self-Regulation Rules for
Listed Companies - Standard Operations released by the SSE, Air
China has identified material CSR issues that are consistent with
its industry and business features. Then, reviewing through
benchmarking with peer companies and stakeholder communications, we
establish the list of material CSR issues with our characteristics
.
Air China conducts surveys of internal and external stakeholders
to better understand their recommendations and viewpoints on the
Company's development in two dimensions: "Importance to the
sustainable development for Air China " and "Importance to
stakeholders." This improves the responsiveness of social
responsibility reports. In the end, we decided on 27 substantive
topics and responded to high materiality topics in the report.
To ensure the accuracy and comprehensiveness of Air China's
social responsibility materiality matrix, we evaluated and
optimized the matrix for 2021 in light of changes in peer topics
and trends in capital market topics. In 2022, Air China responded
to the state and regulatory authorities' call to actively deploy
pollution prevention and control efforts, incorporate relevant
efforts into the Company's key tasks, and elevate the topic's
already existing importance among 2022 major CSR issues.
Quantitativeness: Air China has created a set of standardized
ESG indicator management tools that cover the Company's management
support division, business management units, branches, and major
subsidiaries. Air China collects key indicators of quantitative
disclosure in all environmental and social categories in accordance
with the social responsibility report guidelines on a regular basis
,and summarizes them at the end of each year and discloses . The
calculation method and details of the reference standards of the
quantitative data in this report's environmental categories can be
found in the report's chapters.
Consistency: This report makes no significant changes to the
scope of disclosure compared to previous years' social
responsibility reports, and it employs consistent statistical
disclosure methods.
Medium materiality High materiality
1 Integrating into the local 12 Prevention and control of
community pollution
--------------------------------------
2 Service for special passengers 13 Internationalized development
--------------------------------------
3 ESG governance 14 Improvement of customer experience
--------------------------------------
4 Supporting special flight 15 Innovation of products and
missions service
--------------------------------------
5 On-time performance 16 Internal risk control
--------------------------------------
6 Diversity and equality 17 Occupational health and safety
--------------------------------------
7 Communication with employees 18 Sustainable value chain
--------------------------------------
8 Care policies for employees 19 Employee training and development
--------------------------------------
9 Work conditions and social 20 Integrity management
security
--------------------------------------
10 Contributions to industry 21 Lawful operation and compliance
development
--------------------------------------
11 Protection of customer 22 Sustainable use of resources
privacy
--------------------------------------
23 Protection of employees'
rights and interests
--------------------------------------
24 Rural revitalization
--------------------------------------
25 Passenger health and safety
--------------------------------------
26 Flight safety
--------------------------------------
27 Energy conservation and emission
reduction
--------------------------------------
1.3 Guidance of Party Building
The year 2022 marks a crucial milestone in the full
implementation of the 14th Five-Year Plan and the start of a new
journey to build a modern socialist nation in all aspects. Air
China, guided by the Xi Jinping Thought on Socialism with Chinese
Characteristics for a New Era, focused on learning and implementing
the guiding principles of the 20th CPC National Congress to
coordinate the key tasks throughout the year, leading high-quality
development with high-quality Party building.
Continuously strengthening Party building
Firmly strengthen political construction.
Adhere to theoretical learning.
Optimize g rassroots Party building work.
Give full play to exemplary role.
Adhere to rigorousness governance.
G ive full play to the unity of various groups and organizations.
Case: Further studying and implementing the guiding principles
of the 20th CPC National Congress
Air China has recognized the study and implementation of the guiding
principles of the 20th CPC National Congress as its primary political
task. The Company Party Committee has strengthened organizational
leadership, leading Party organizations at all levels and the Party
members to study and practically implement the guiding principles
study results into the specific actions of building a world-class
air transportation enterprise.
1.4 Comprehensive Risk Management
Air China fully implements and improves its risk management
system, as well as its internal control management and corporate
compliance efforts. We aim to continuously improve our risk control
capabilities to support healthy corporate development.
1.4.1 Risk Management
A solid risk management system is the foundation for sustainable
development. The Company has established a risk control compliance
framework under the overall responsibility of the Board of
Directors. The Company Party Committee is in charge of the
pre-research; the management is in charge of organizing the
construction and implementation efforts; and the Board of
Supervisors is in charge of superintend risk control and compliance
performance. The goal is to identify and analyze financial and
non-financial risks in operations, with the goal of eventually
forming an effective risk prevention and control mechanism. We
establish the Rule of Law Leading Group, which coordinates risk,
internal control, compliance, and legal affairs development, and
implements the "overall management and division of
responsibilities" policy, constructing three lines of defense for
internal risk control.
"Three Lines of Defence" for Comprehensive Risk Management
Discipline Board of Directors/ Audit and Risk Control Discipline
Inspection Committee (Supervision Committee) Inspection
and Comprehensive and Comprehensive
Supervision Supervision
---------------------------------------------------------------- -------------------
Senior Management/Air China Legal Matters Leading
Group
---------------------------------------------------------------- -------------------
First Line Second Line of Defence Third Line
of Defence Financial Control of Defence
Business Activity Safety Supervision Internal Audit
Internal Control Quality Control
Processes Legal Management
Risk Assessment Risk Management
Control Measures Compliance Management
Internal Control
Management
------------------- ------------------------- ---------------- -------------------
Business Departments Support Departments Assurance Departments
As the main responsible Support departments As the third line of
departments of corporate like Legal, Compliance, defence, Internal Audit
risks, business departments Financial, Quality, Department conducts independent
are responsible for the Safety, and Human assessment of Air China's
effective identification Resources serve as risk management and control
and control of risks, and the second line of results, and performs
bear the main responsibility defence to provide risk assessment and supervision
for risks during business risk management and responsibilities.
and operation processes. control policies,
methodologies and
tools, and to organize
risk monitoring and
internal control
compliance management.
------------------------- -------------------------------------
Risk Identification
In order to identify risk categories, we determined risk rating
criteria by the risk matrix method and rated risks by assessing the
likelihood and impacts, and developed systems such as the Risk
Framework, the Risk Level Standards and the Risk Event Reporting
System to evaluate factors like financial losses, dispute cases,
operations, and safety. Meanwhile, we defined risk events and
clarified the basic elements, timeframe, and path of reporting.
9 primary risks
100 secondary risks
5 risk levels
9 Primary Risks
Strategic Risk Investment Risk
----------------
Safety Risk Financial Risk
----------------
Market Risk Business Risk
----------------
Public Opinion Risk Legal Risk
----------------
Integrity Risk
----------------
Risk Prevention and Control Mechanism
-- Ensure a solid risk research and judgment mechanism: When
conducting qualitative risk factor analysis, we concentrate on 38
key risk indicators and new risks evaluating. We put a monthly risk
reporting mechanism in place to continuously monitor and strictly
check the risks.
-- Extend the risk assessment mechanism for decision-making: We
strengthen risk decision-making and governance, including
comprehensive risk management in the list of authority and
responsibility for major issues at the Company Party Committee,
Board of Directors, and management levels. We also assess risks as
often as required by the "Four Important Matters " policy (i.e.,
important decisions, important projects and arrangements, important
nominations, and use of large sums of funds).
-- Develop a robust risk prevention and control coordination
mechanism: We are constantly bringing the four-in-one collaboration
of "legal affairs, risks, internal control, and compliance" into
play. We improve the quarterly risk control coordination meeting
system, at which we inform typical incidents, study and evaluate
risk changes, and improve information communication. We share risk
control information with the discipline inspection and audit
departments in order to establish the third line of defense for
risk prevention and management improvement.
-- Comprehensively consolidate the risk prevention and control
responsibility mechanism: We concentrate on the layered risk
management, clarifying that specific posts or individual employees
are in charge of risk management.
1.4.2 Internal Control Management
-- In 2022, the Company promoted the development of internal
control processes in all aspects by "specifying the internal
control system into specific processes," gradually integrated its
major business into the three lines of defense for management, and
completed a total of 1,033 internal control processes throughout
the year.
-- We completed the revision of internal control management
regulations to improve the feasibility, effectiveness, and
relevance of the system, according to the requirements of
state-owned asset supervision and the securities market.
-- We conducted comprehensive self-inspection and mutual
inspection to strengthen the investigation and review of internal
control , rules and regulations, information systems, and other
aspects to understand our internal control management better.
-- We advocated for the implementation of the Board of
Directors' responsibility for risk prevention in 10 subsidiaries,
in order to create a mechanism for the Board of subsidiaries to
consider risk control work and operate effectively.
1.4.3 Internal Audit
Guided by the risk-oriented management, with the goal of
ensuring execution and promoting development, Air China continues
to deepen internal audit, strengthen rectification and
accountability efforts, optimize our organization and system
structures , make internal audits fully playing a role in the
corporate strategy, corporate governance and risk management,
contributing to a high-quality corporate development.
Actively promote
comprehensive * Following the principle of "auditing everything that
internal audit should be", our audit departments at all levels
supervision conducted 82 audit projects and found 585 problems.
with full In accordance with the Guidelines No. 1 on the
coverage Application of Self-Regulation Rules for Listed
Companies- Standard Operations released by the SSE,
we inspected the situation of raised funds, the
guarantees, and related party transaction
half-yearly.
Clarify responsibilities
for rectification, * We introduced the Management Measures for Audit and
ensure effective Rectification Tracking in 2022, to further improve
implementation the long-term mechanism of audit rectification.
of the audit
rectification
* We summarized the problems found in internal and
external audits, and carried out the "learning by
cases" activity across the Company to transform the
audit results into effective management.
* We included audit rectification results into the
performance assessment indicators of each entity,
dynamically monitored the progress of rectification,
strictly controlled the assessment time limits, and
improved rectification efficiency.
--------------------------------------------------------------
Boost the
investigation * We implemented the requirements of SASAC on the
and punishment accountability work of comprehensive governance and
of non-compliant the rectification work of illegal overseas investment,
matters conducted full-coverage investigation to identify
problems, supervised the whole-process accountability
and rectification, sorted out the management
loopholes in the whole chain, and coordinated the
work of accountability.
--------------------------------------------------------------
Strengthen
the construction * In 2022, the Company's audit departments at all
of the standard levels formulated and revised a total of 26 internal
system audit policies and comprehensively improved the
three-level system of internal audit.
--------------------------------------------------------------
1.4.4 Corporate Compliance
Air China adheres to the principle of legal and compliance
operations at all times. We strictly follow the Measures of the
Compliance Management and other applicable laws and regulations,
improve corporate compliance management system, and form a closed
loop of compliance management.
Compliance System Construction
To improve the capabilities of legal and compliance management,
Air China has built a "2+N" compliance management system based on
the Compliance Management Regulations and the Compliance Code of
Conduct, and supported by the Management Measures for Overseas
Compliance, the Overseas Compliance Training Manual (Chinese and
English versions) and special manuals for key areas in each
jurisdiction.
Compliance Culture Construction
Air China focuses on building a culture of compliance, and
conducts the "Compliance Awareness Month" activity in May each year
to stimulate employees' compliance initiatives through various
forms of compliance trainings.
Highlights of Compliance Activities in 2022
* Designated the year 2022 as the "Year of Compliance
Management Enhancement" and promoted various tasks
related to compliance management.
* Issued the Compliance Manual for Data in Various
Jurisdictions (2022 Edition) and the Anti-commercial
Bribery Compliance Manual (2022 Edition).
* Investigated compliance risks and illegal and
non-compliant issues in operations.
* Carried out activities in the "Compliance Awareness
Month" and made efforts to build a compliance culture
promotion platform.
* Tracked domestic and overseas compliance developments
in real-time to enhance our sensitivity for
compliance and reserve the compliance information.
1.5 Anti-corruption and Business Ethics
Air China strictly adheres to anti-corruption laws and
regulations and has developed 13 rules and regulations to instill
the business philosophy of integrity and honesty in all of its
employees. Air China was not involved in any corruption, bribery,
fraud and money laundering litigation cases in 2022. Meanwhile, Air
China strictly adheres to laws and regulations such as the
Anti-monopoly Law and the Anti-Unfair Competition Law of the
People's Republic of China, and codes of business conduct. We
compete in the market in accordance with the law and prohibit any
form of commercial bribery, money laundering, monopoly, or unfair
competition. The Company has set out clear requirements on ethical
standards for employees such as legal compliance, fair competition,
professional conduct in the Employee Code of Conduct and requires
all employees to sign it.
Supervisory Reporting Channels of the Audit Committee
The Company posts a email address on its official website for employees,
customers, suppliers and relevant stakeholders to report to the
Audit and Risk Management Committee (Supervision Committee) of
the Board on the Company's improper matters, so that the Board
of Directors could carry out its supervisory role according to
the regulatory requirements of the Stock Exchange of Hong Kong.
"Massive Supervision" pattern
Coordinate all kinds of supervision resources within the Company,
strengthen regular supervision in areas prone to corruption, and
form a unified and coordinated anti-corruption pattern with clarified
responsibilities.
Work mechanism of maintaining integrity and combating corruption
Improve the efficiency and effectiveness of handling major corruption
cases and important clues of anti-corruption work.
Anti-corruption Monitoring Activities
* Implemented strict investigations, strengthened
whole-process management of problems and clues,
addressed corruption problems and clues in a timely
manner, increased case review and investigation
efforts in key areas such as passenger and cargo
marketing, bidding and procurement, and equipment
maintenance.
* Strengthened the special supervision of integrity
risk prevention and control, conducted special
supervision and inspection on bidding and procurement,
and the implementation of integrity risk prevention
and control in various departments.
* Continuously regulated business transactions with
enterprises run by relatives of the Company's
leadership, issued the List of Enterprises Prohibited
from Transactions (2022), added prohibited
enterprises into the procurement management platform,
and strictly prohibited business transactions with
unqualified enterprises.
Public Complaint Work
Air China has issued the Implementation Rules for the Handling
of Letters and Visits (for Trial Implementation), ensuring that
people could report relevant issues via letters, phone calls,
on-line channels, and visits. We strengthened protection to the
whistle-blowers, ensuring that those cases are dealt in accordance
with the law while the whistle-blowers' privacy and interests
effectively protected.
Whistleblower Protection Initiatives
The name of the whistle-blower, address, the content of the public
compliant and other relevant information must be strictly kept
confidential.
It is strictly prohibited to inform the public compliant materials
and the whistle-blower information to the reported organization
or personnel.
Public compliant receival or verification efforts should be carried
out without revealing the identity of the whistle-blower.
The whistle-blowers' personal information should obtain the consent
before publicizing.
Anti-corruption Training and Activities
Air China launched a comprehensive anti-corruption promotion and
education campaign in 2022. The Company also conducted numerous
integrity training programs for staff members at different levels
and in different positions, including anti-corruption training for
those in high-risk and important roles.
* Held a warning education conference on the clean
administration, issued a circular on typical cases of
violations against laws and rules, printed materials
on the analysis of typical cases, and purchased and
distributed for each entity to provide cautionary
lessons in integrity education.
* Published materials on the interpretation of
anti-corruption related rules and laws on our WeChat
Official Account "Clean Air China", and provided
training courses on discipline and laws during basic
training courses for young employees.
* Established an integrity education system, clarify 6
kinds of courses of integrity education, 8 types of
the education, and related organizational guarantee
mechanisms.
* Carried out the Promotion and Education Month
Activities of clean administration, organized 2,015
warning education sessions and 1,335 lectures on
disciplines and laws, held 1,202 activities in the
category of building a culture of integrity, and
provided 1,804 special training sessions for young
cadres, integrity talks, and discipline and law
tests.
2.
2. Safety Development
According to the "14th Five-Year Plan", Air China focuses on the
general requirement of "Safety Development," firmly establishes a
people-centered mindset, fulfills the Company's special mission as
a flag-carrier aviation company, and coordinates the work among
safety management, safety operations, and safety culture. We
consolidate the foundation of safety development, steadfastly guard
the bottom line of aviation transport safety, and ensure the
absolute safety of both aviation operations and people's lives.
The "14th Five-Year Plan" in the Safety Field
l Continue to improve the flight training system
l Optimize the aircraft maintenance system
l Strengthen conduct construction for crew members and vocational
skills training
l Implement the three-year action plan for special safety rectification
l Improve the safety operation management system
l Deepen the construction of safety management system
2.1 Safety Management
Air China focuses on both special and regular work safety and
strictly abides by the laws and regulations such as the Work Safety
Law of the People's Republic of China, the Civil Aviation Law of
the People's Republic of China, and the Interim Provisions on the
Supervision and Management of Work Safety at State-owned
Enterprises . We dynamically analyze the industry's safety
situation and the Company's actual operational characteristics,
improve the safety operation management system, perform our safety
supervision duties, and boost our capabilities to prevent safety
risks and identify hidden hazards.
Safety Governance Structure
The Company has established a system of work safety
responsibility for all employees, and assigned safety targets to
each entity based on the functional division of labor. We have
consistently improved the safety discussion system by hosting
meetings such as quarterly special meetings, monthly work safety
evaluation meetings, and weekly Company leadership meetings. We
conduct timely studies of important safety tasks and key issues at
these meetings, and implement the meeting-supervised work mechanism
to supervise the work progress.
Safety Management System
The Company has established a safety management system based on
the Regulations on Operation Qualification of Large Aircraft Public
Air Transport Carriers (CCAR-121) and the Provisions on the
Administration of Civil Aviation Safety (CCAR-398), which consist
of a safety operation system and a safety supervision system. The
Company is regularly audited by the IATA Operational Safety Audit
(IOSA). In 2022, the IOSA findings were all closed on schedule and
the Company's IOSA qualification was successfully extended.
Safety Operation System Construction
Safety Management 1. Promoted the establishment of three-level risk source
System database for cabin, ground service, and freight, and
optimized the Company's three-level risk control mechanism.
Issued the Guidelines on the Implementation of the Company's
Three-level Risk Control Mechanism in Various Business
Areas.
2. Closely focused on the industry and the Company's
safety operation situation, promptly identified the risks
and hazards affecting safety operations, put forward
targeted prevention requirements, and followed up on
their implementation.
3. Put into use the QAR Big Data(QBD), a flight data
management and application system, which is composed
of six major functions and 166 functional points for
improving safety management efficiency.
Flight training 1. Continued to optimize the Flight Inspector Workbook,
system clarified the inspection subjects and quality requirements
for the flight inspector, and established quantitative
assessment principles tied to flight personnel promotions.
2. Revised the Flight Instructor's Manual and updated
the Flight Inspector Workbook to ensure the integration
of teaching and inspection.
3. Introduced the evaluation principles of flight technical
inspection standards in the technical inspection module
of the flight crew qualification system to ensure that
the digital evaluation program runs through the pilot's
total lifecycle management.
----------------------------------------------------------------
Aircraft 1. Completed the construction of the Maintenance Planning
maintenance Center (MPC) control capability evaluation mechanism.
system 2. Completed the migration of the data from the Aircraft
Communication Addressing and Reporting System (ACARS)
,and the aircraft flight monitoring data of B737NG and
A320 from Quick Access Recorder (QAR).
3. Established and continuously improved CCAR-121, CCAR-145
and CCAR-21 manuals and standard processes, and promoted
the integration of quality system documents across all
areas of the Company.
Ameco's maintenance certificates
"All-in-one" maintenance license issued by CAAC.
"Two-in-one" maintenance license issued by FAA.
"Two-in-one" maintenance license issued by EASA.
----------------------------------------------------------------
Operation 1. Developed the Implementation Measures for Unit Backups
management at Bases to clarify the operation management responsibilities
system and information transfer process.
2. Developed the Emergency Response Management Procedures
for Safety Emergencies (for Trial Implementation) according
to the Emergency Response Manual to clarify the emergency
response responsibilities of each entity and standardize
all processes .
3. Upgraded the dispatch and release module of the System
Operations Center (SOC), and used it for simulation exercises.
----------------------------------------------------------------
Safety Supervision System
The Company's safety supervision system, which is independent
from the safety operation systems, performs safety supervision and
management duties. The system is made up of the Aviation Safety
Management Department and other safety management departments of
various production units, specifically responsible for developing
aviation safety policies, standards, running the safety management
system effectively by safety inspection and risk management, and
supervising and guiding the safety management work of the Company
and its subsidiaries .
Safety Management Priorities
l Promoted the development of the safety operation system
tenaciously, enhanced the emergency response capability of the
Company, carried out the year's work of major risk prevention and
safety improvement , and implemented the safety assessment report
requirements of the Civil Aviation Administration of China (CAAC)
.
l Refined and implemented the 15 measures formulated by the Work
Safety Committee of the State Council, and made efforts in areas,
such as the three-year in-depth special rectification work of
safety, safety inspections, and management of safety hazards as
well as airplane weight and balance.
l Increased efforts to improve the code of conduct and
education, optimized the quantitative assessment mechanism of the
safety code of conduct, organized work safety lectures, and
proactively conducted the selection of outstanding teams and
individuals of the civil aviation.
l Strengthened safety process control, conducted investigations
into unsafe events and special safety inspections timely ,
continuously improved safety operation quality, and conducted
targeted safety supervision.
Safety Operation Performance
In 2022, the Company successfully completed a series of
important transportation tasks of the Spring Festival, Lianghui,
the evacuation of nations, and China International Import Expo. We
also achieved "zero error" in safety and "zero complaint" in its
transport service for the 2022 Beijing Winter Olympics and the
Winter Paralympics. For ensuring the departure peak of the Winter
Olympics, we transferred all domestic inbound and outbound flights
from Beijing Capital International Airport Terminal 3 to Terminal2
efficiently and safely.
In 2022, Air China had total safe flight hours of 1.0318 million
hours
Accountable incidents rate of air transportation due to the liability
of Air China per 10,000 flight hours was 0
Air China successfully achieved the goal of flight safety throughout
the year of 2022. On December 31, the Chairman Ma Chongxian, the
Vice President Chen Zhiyong and Ni Jiliang welcomed the returning
flight crew and cabin crew at the Beijing Capital International
Airport.
In-flight Food Safety
We continuously promoted the certification of ISO 9001 quality
management system, FSSC 22000 and HACCP food safety management
system, to improve our food safety control capabilities and
effectively ensure the food safety of in-flight meals.
Cabin Safety
-- Strengthened cabin safety management, refined turbulence
prevention and control plans according to the weather conditions
along the flight route, and strictly prevented the occurrence of
injuries caused by turbulence in the air.
-- Strengthened cabin inspections, responded to passengers'
needs in a timely manner, and provided the best possible medical
assistance to sick passengers.
-- Complied with the rules and regulations strictly, improved
the ability to handle special situations such as smoke from lithium
batteries on board, ensuring the safety of cabin operations.
2.2 Safety Culture
The establishment of a safety culture is the foundation for
solid safety operations. Air China implemented the Regulations on
the Professional Code of Conduct for Crew Members released by the
CAAC, revised the Aviation Safety Management Training Syllabus, and
carried out various safety culture construction activities
according to the safety management and education plans.
Honors
l In April , the Flight Crew Department of Air China were awarded
as National A dvanced Civil aviation Organization .
l Excellent Teams of Safety Conduct recognized by CAAC: The Aircraft
Load Capacity Management Team of the Operation Control Centre, the
"Uniting as One" Team of Flight Crew Department, and the Endeavour
Team of AMECO Chengdu Branch.
l Advanced Individuals with Safety Conduct recognized by CAAC: Le
Bingqing of Cabin Service Department of Southwest Branch, Bai Bing
of Flight Crew Squadron of Guangdong Branch, and Huang He of Equipment
Maintenance Center of Ground Service Department.
Safety Culture Establishment
Air China thinks highly of the establishment of a safety
culture, and always follows the guiding principles of General
Secretary Xi Jinping's important remarks on work safety and civil
aviation safety. We adhere to the policy of "safety first,
prevention foremost", strictly implement the work safety
responsibility system for all employees, and fully implement the
long-term mechanism of code of conduct improvement, build the
safety culture system at Air China, creating a safe working
atmosphere.
Implementing the General Secretary's important guiding
principles
l The Company strengthened propaganda work of the new Work
Safety Law of the People's Republic of China, made lecture
materials, provided training for all employees, and implemented the
concept of safety development into all aspects of strategic
planning and production operations.
l Conducted special studies on "Putting People and Their Lives
First", and studied thematic film of related topics.
l The Company carried out systematic study of General Secretary
Xi's important remarks on work safety to ensure full coverage.
Solid promotion and education of safety practitioners' code of
conduct
l Formulated the annual work plan for safety practitioners' code
of conduct .
l Conducted group-wide selection of outstanding teams and
individuals of safety conduct, and 3 outstanding teams as well as 3
advanced individuals were awarded by the CAAC.
l Implemented Regulations on the Professional Code of Conduct
for Crew Members released by the CAAC, revised the code of conduct
improvement content in the safety management system (SMS) manuals,
procedures and standards , incorporated code of conduct improvement
into safety management process assessment, and increased
quantitative assessment.
l Updated aviation code of conduct improvement training
courseware and cases of typical violations, revised the Aviation
Safety Management Training Syllabus, thoroughly investigated the
hidden hazards of code of conduct , and highlighted the
rectification of human-caused unsafe incidents.
Taking effective measures to organize work safety month
activities
-- Focused on the theme of "Compliance with the Work Safety Law
and Being the First Responsible Person", developed an overall
activity plans and actively carried out a series of activities such
as "Safety Initiative of the First Responsible Person", "Being
Whistleblower to Provide Suggestions on Safety Hazards", aiming to
improve employees' safety awareness.
-- Each entity actively conducted activities such as work safety
lectures and various forms of skills competition to improve
professionalism of our teams.
2.3 Safety Training
Air China continued to develop a training system in accordance
with the Training Management Manual in 2022. We optimized training
programs and management manuals for dispatching operations
personnel, procurement personnel, newly hired pilots, cabin crew
and others positions. We ensured training quality to support
improving the Company's staff ability through face-to-face and
online live training. Air China invested approximately RMB 221
million on training in 2022 to maintain specific qualifications for
its employees.
* Developing vocational training courses: Developed
courses that are closely relevant to reality and
promoted job-specific skill recognition standards.
* Optimizing training process management: Developed
separate management methods for safety, operations,
service and flight professional training.
* Strengthening the construction of flight instructors:
Standardized the management of part-time instructors,
formulated the selection and recruitment criteria for
full-time instructors, and carried out instructor
assessments.
* Creating the online learning platform: Introduced 903
courses on online training platform, such as
technical theory, bringing the total number to 3,533.
Safety Training Performance Data of Air China and Major
Subsidiaries [1] in 2022
Average qualification training hours divided by specialty (1,000
Person-hours)
Flight training: 646
Flight attendants training:1,203
General training for ground workers:825
Total qualification training hours for pilots (1,000 Person-hours)
Safety training:410
Flight simulator training : 84
Hazardous goods retraining:61
Emergency retraining:91
Total qualification training hours for the flight attendants (1,000
Person-hours)
Safety training:940
Hazardous goods retraining:51
Emergency retraining:212
Total qualification training hours for the ground workers ( 1,000
Person-hours)
Safety training : 790
Hazardous goods retraining : 35
3. Green Operations
Air China has committed to the concept of "green operations and
sustainable development", seizing the opportunities provided by
national development strategies and responding to the national call
for low-carbon. We have prioritized climate change and its
consequences, standardized and optimized the environmental
management system, strengthened energy resource management,
strictly limited pollutant emissions, and emphasized the
development of low-carbon environmental awareness. Therefore, we
have achieved green and low-carbon development, while continuously
increasing economic efficiency.
The "14th Five-Year Plan" in the Environmental Field
l Proactively support the "dual carbon" strategy of "carbon
peaking and carbon neutrality"
l Improve the management system, and enhance management
ability
l Strengthen energy management to achieve low-carbon
development
l Fight the battle of pollution prevention and control, and
defend the blue sky continually
l Shape an image of a green State-owned aviation enterprise and
demonstrate our corporate social responsibility
3.1 Environmental Guidelines
l Stay committed to our strategies and the mission in
practice
l Comply with laws and protect the ecological environment
l Promote pollution alleviation and carbon emissions reduction,
and achieve low-carbon development
l Take the lead in green aviation and make concerted efforts to
build a better homeland
3.2 Improvement of Environmental Management System
Air China strictly adheres to the Environmental Protection Law
of the People's Republic of China and other relevant laws and
regulations, continuously promotes the development of the Company's
environmental management system based on the industry development
plan and its development strategy to ensure environmental
management more systemically, wholly , and unified .
Measures to enhance our environmental governance
capabilities
-- Issued management policies and continuously strengthened
environmental management supervision.
-- Promoted the ISO 14001 environmental management system
certification at Air China's headquarters and 8 subsidiaries, and
ensured the continued effective operations of the environmental
management system through annual supervision and audits.
-- Established an energy conservation and environmental
protection responsibility system, signed the Energy Conservation
and Environmental Protection Responsibility Letters with 25
subsidiaries and departments, and conducted annual special
inspections.
-- Prepared quarterly energy conservation and environmental
protection briefings, conducted special inspections of the
Company's key energy-consuming entities, continuously promoting the
improvement of environmental governance capacity and
efficiency.
3.3 Addressing Climate Change
Climate change is a global challenge of the 21st century. Air
China actively responds to the construction of China's ecological
civilization, adheres to the new development concept , and strives
to improve climate change governance. With references to the
framework and recommendations of the Task Force on Climate-related
Financial Disclosure (TCFD), we proactively identify and address
the risks and the opportunities brought by climate change, and take
practical steps supporting China's "dual carbon" strategy and
corporate development .
3.3.1 Climate Governance Framework
Air China has been improving top-level administration of the
climate governance. A Leading Group for Ecological and
Environmental Protection has been established under the direction
of the chairman and president, with representations from the
Company and its subsidiaries' top executives and core employees. We
have included ecological civilization strategy and the Action Plan
for Peaking Carbon Emission into the Company's the list of
authority and responsibility for major issues. We seek to fully
execute the Company's dual carbon strategy by incorporating the
idea of climate change into all facets of corporate governance.
3.3.2 Our Strategy
In responding to the urgent climate change situation, Air China
has assumed corporate responsibility, developed a number of guiding
and fundamental documents, including the 14th Five-Year Plan for
Green Development and the Action Plan for Peaking Carbon Emissions
. We have shifted our management from energy savings and
environmental protection performance assessment to dual carbon
assessment and supervision management, from the cost-driven
management to a carbon asset and ecological civilization
construction management.
Air China's Carbon Peaking Action Principles
-- Focus on a comprehensive and truthful principle
-- Focus on efficiency and reducing carbon emissions at the source
-- Focus on innovation-driven and technology-led development
-- Focus on o penness and integration, taking multiple measures
To achieve the goal of developing into a world-leading aviation
transport enterprise in green development, Air China prepared the
Company's Action Plan for Peaking Carbon Emissions based on the
14th Five-Year Special Plan for Green Development of Civil
Aviation. The Company adjusted its energy mix, controlled total
carbon emissions, and balanced environmental protection with
development, safety, service and efficiency via six technological
paths, to achieve environment-friendly and high-quality
development.
Six Technological Paths
Aviation Fuel Sustainable Aviation Energy-saving Technology Improvement
Conservation Fuel on the Ground
Carbon Asset Reserve New Green Technologies Green Initiatives for All
----------------------- -------------------------------------
3.3.3 Risk Management
Air China has incorporated climate change risk metrics into its
existing risk management system, by reference to the framework and
recommendations of the Task Force on Climate-related Financial
Disclosure (TCFD) and relevant policies and guidelines, such as the
14th Five-Year Plan and the China's Policies and Actions for
Addressing Climate Change (2022) .
Climate Change Risk Identification
Air China considers the interaction between climate change and
the aviation industry, as well as national policies and industry
development trends, and proactively identifies and analyzes climate
risks and opportunities in its operations and its value chain. We
have actively developed climate change risk response plans and
taken actions to improve our ability to adapt to climate change and
mitigate its effects.
Climate Change Risk Identification Checklist
Risk Specific Risk Description Risk Response
Type Risk
Transition Policy New climate-related Explored and optimized greenhouse
Risk and Legal laws, regulations, and gas (GHG) emission reduction
Risks policies impose more paths, e stablished short-term,
stringent requirements medium-term and long-term
for the industry, such carbon peaking and carbon
as tighter emissions neutrality goals and strategies,
restrictions on civil and regularly disclosed the
airlines, which may progress of GHG emission reduction.
influence more costs Continuously followed the
and travel habits, thus carbon trading disclosure
leading to less passengers policy, strengthened communication
and related revenue. with various regulatory authorities,
The introduction of developed and adjusted the
the national "dual carbon" Company's GHG management model
targets and the launch in a timely manner according
of the national carbon to policy guidelines and carbon
emission trading market market conditions.
will possibly heighten Changed energy schedule according
carbon emission to requirements, introduced
requirements. new energy technologies, and
If the Company is included promoted the transition of
in the carbon trading our energy mix.
system in the future,
additional costs may
be incurred due to the
lack of carbon quotas.
-------------- ----------------------------- ----------------------------------------------------------
Technological Aviation fuel is one Implemented energy saving
Risk of the important and emission reduction practices,
environmental improved existing technologies,
factors for the Company. introduced and developed new
In the context of the technologies.
national "double carbon"
target, the Company
needs to deploy more
energy-efficient and
environment- friendly
technologies and facilities,
and increase special
investment in energy
conservation and emission
reduction to reduce
carbon emissions and
the climate impact caused
by aviation fuel combustion.
-------------- ----------------------------- ----------------------------------------------------------
Market The price of sustainable Continuously deepened fuel-saving
Risk aviation fuel is currently measures to reduce energy
three to five times consumption.
higher than fossil fuel Used sustainable aviation
due to restrictions fuel as one of the important
on technology and scale, elements of Air China's carbon
which has an impact reduction path to reduce total
on the Company's operating carbon emissions.
costs. Comprehensively replaced
aircraft Auxiliary Power Units
(APU) with ground power, and
promoted energy mix transition.
-------------- ----------------------------- ----------------------------------------------------------
Reputational In the context of climate
Risk change being a major * Took the preferences and needs of stakeholders as a
concern, the aviation guide to improve the communication mechanism with
industry's carbon emission them, and conducted regular evaluation and research
reduction efforts are .
closely concerned by
various stakeholders.
Failure to effectively * Strictly followed laws and regulations, adjusted
implement such efforts strategic plans and targets in line with current
in a timely manner will trends, and coordinated the deployment of low-carbo
have a negative impact n
on the Company's public development paths.
image and revenue.
-------------- ----------------------------- ----------------------------------------------------------
Physical Acute Extreme weather events, Developed special emergency
Risk Risk such as typhoons, extreme rescue plans to deal with
rainfall and floods, extreme weather such as flooding,
exacerbate the impact lightning, cold weather, typhoon
of climate risks on and heat stroke, improving
our routine operations emergency response speed.
and may lead to flight Conducted a timely assessment
delays, forced landings and pre-analysis of changes
or cancellations, thus in operating conditions by
affecting the supply monitoring flights, took measures
chain and transportation to control flight returning
network, weakening freight and diversions, and provided
and passenger transportation support to the aircrews on
capacity. the ground.
The occurrence of extremely
hot and cold temperatures
may increase the probability
of employee health and
safety risks.
-------------- ----------------------------- ----------------------------------------------------------
Chronic Scenarios such as global Deployed a professional maintenance
Risk warming, rising sea and troubleshooting team.
levels, and tidal intrusion Invested more funds in R&D
may lead to high frequency to improve repair and maintenance
and increased duration efficiency, and reduced energy
of temporary operational consumption.
disruptions and maintenance
as well as more cost.
-------------- ----------------------------- ----------------------------------------------------------
Climate Risk Management
Energy Conservation
and Environmental * Developed energy-saving and environmental protection
Protection Management management methods and held annual meetings to
integrate energy-saving and environmental protection
into operations.
* Developed and put into operation the energy-saving
and environmental protection management platform, and
formed production statistical reports and risk
ledgers through the automated collection of data from
multiple systems.
* Established the energy conservation and environmental
protection responsibility system, signed the
responsibility letters with 25 subsidiaries and
departments, and carried out annual special
inspections on energy conservation and environmental
protection.
Environmental
Risk Management * Released important documents such as Air China's
contingency plan for environmental emergencies and
environmental compliance evaluation reports, and
regularly conducted self-inspections and annual
special supervisions on energy-saving and
environmental protection.
-------------------------------------------------------------------
Carbon Emission
Management * Implemented centralized management of carbon assets,
unified carbon trading management and operations,
established a carbon price monitoring and early
warning mechanism, and scientifically formulated
trading strategies.
* Developed and put into operation a carbon emission
management and analysis platform, which could
automatically provide carbon emission data
statistical analysis and reports, meeting the
requirements of multiple sets of carbon emission
management systems.
-------------------------------------------------------------------
Voice of the
Industry * As a member of the IATA Environment Committee, the
Technical Standardization Committee on Aviation
Environment Protection of China Air Transport
Association, and the Sustainable Development Strategy
Committee of Star Alliance, we actively spoke up for
the civil aviation industry under the unified
leadership of CAAC.
* Participated in research on national, local and
industry carbon emission related policies, and
provided industry suggestions and practical
experiences to governments and authorities at all
levels.
-------------------------------------------------------------------
3.3.4 Our Goals
Air China has established science-based carbon reduction goals
that are in line with the climate change goal of limiting the rise
in global temperature to no more than 2degC over pre-industrial
levels by the end of this century. Air China developed a work plan
for green development in 2022, clarifying the overall objectives
and proposing key targets for environmental compliance, energy
saving and carbon reduction, and "dual carbon" tasks, in accordance
with the work requirements of governments at all levels and
industry authorities.
Air China Environmental Goals
* In terms of environmental compliance, no
environmental violation shall occur.
* In terms of energy saving and carbon reduction, we
will strive to achieve a year-on-year reduction in
carbon emission intensity.
* In terms of "dual carbon" tasks, we develop the
Action Plan for Peaking Carbon Emissions in
accordance with the national "dual carbon" strategy,
the national and industrial development plans, the
Company's strategic, as well as our actual
situations.
Greenhouse Gas Emissions Data of Air China and its Subsidiaries
[2] in 2022
GHG emissions Unit 2021 2022
Scope 1: CO(2)
emissions 1,000 tonnes 15,218 9,823
-------------- --------- --------
Scope 2: CO(2)
emissions 1,000 tonnes 224 229
-------------- --------- --------
Total CO(2) emissions 1,000 tonnes 15,442 10,053
-------------- --------- --------
CO(2) emissions
intensity g / tonne-km 1,124.70 1,126.5
-------------- --------- --------
Indicator name Unit 2022
Introduced new aircraft
in 2022 unit 36
--------------- ------
Retired old aircraft
in 2022 unit 20
--------------- ------
Fuel consumption
intensity in 2022 kg / tonne-km 0.358
--------------- ------
Owned aircraft by
the end of 2022 unit 762
--------------- ------
With the average
age of the aircraft
by the end of 2022 year 8.59
--------------- ------
3.3.5 Our Actions
As an air transportation company, we understand that a
low-carbon operation is one of the most crucial ways to meet the
goals of energy conservation and emission reduction. Air China has
actively pursued special efforts for carbon peaking and carbon
neutrality, investigated the strategic routes of carbon reduction,
created carbon reduction action plans, deepened carbon asset
management, and steadily promoted the Company's green and
low-carbon development.
-- Seminar on "Low-carbon and Sustainable Development in Civil Aviation"
Air China held a seminar on "Low-carbon Sustainable Development in
Civil Aviation", focusing on the new development trend in the industry,
discussing the current status of sustainable development technologies,
development paths, and cooperation models centered around the "dual
carbon" targets.
-- Prepared the Action Plan for Peaking Carbon Emissions
Air China has set up a special working group on carbon peaking and
neutrality, made the Action Plan for Peaking Carbon Emissions in
line with the 14th Five-Year Plan for the Green Development of Civil
Aviation, and adjusted the energy mix and controlled total carbon
emissions through six technological paths.
-- Actively promoted carbon trading
Air China organized the carbon emission reports, related verification
and compliance work with its subsidiaries related to the country,
Beijing city, CAAC and the European Union. We formulated our annual
carbon trading plan in the Beijing carbon market, continued to build
centralized carbon trading management capacity, optimized the carbon
trading commission management process, and promoted the revision
of carbon trading management methods and the construction of internal
control processes.
-- Engaged in industry discussions
Under the unified leadership of the Civil Aviation Administration
of China, Air China participated in the International Civil Aviation
Organization Council - Committee on Aviation Environmental Protection
(ICAO-CAEP) Working Group, the International Air Transport Association
Sustainability and Environment Advisory Committee (IATA-SEAC), and
the Star Alliance Sustainability Committee to actively speak up for
the China's civil aviation industry.
* Carbon market policy and market information service
Air China actively tracks the latest developments in international
and domestic climate governance and carbon markets, and provides
market and policy information service to emission control entities
within the company. Throughout the year, we completed 12 monthly
carbon market newsletters, the monthly analysis reports on the EU
and Beijing carbon market, and conducted weekly analysis of the Beijing
carbon market.
* Launched the "Carbon Neutral" flight service
Through the establishment of a one-stop carbon offset platform, Air
China provides passengers with carbon footprint calculation and carbon
offset service for national certified emission reductions. Passengers
can voluntarily participate in carbon emission reduction projects
such as domestic reforestation through flight miles or cash payments,
contributing to "carbon neutral" flights and reducing the environmental
impact of carbon emissions from air travel.
On September 3, 2022, Air China's "Low-Carbon Green Travel Program"
won the Green Development Demonstration Case Award at the 2022 China
International Fair for Trade in Services.
3.4 Emissions Management
Air China always adopts a problem-oriented approach, effectively
promoting pollution management by improving the risk checklist,
building a robust management system, and making special actions to
fight with pollution.
3.4.1 Waste Gases Management
Air China strictly follows the Atmospheric Pollution Prevention
and Control Law of the People's Republic of China, and other
relevant laws, regulations and standard documents. We actively
launched various emission reduction initiatives to reduce gas
generation and emissions.
* Regularly monitor boiler waste gases and canteen
fumes to ensure that emissions meet the standards.
* For industrial waste gas, air pollutant control
devices and online monitoring facilities are
installed to ensure that emissions meet the
standards.
* Ground power and air conditioners are used by all
aircraft connected to the air bridge, to reduce the
usage of APUs. By the end of 2022, Air China had
signed 117 agreements of APU substitution with
domestic airports, achieving full coverage.
* Comprehensively promote the renovation and upgrade of
vehicle emissions at the airport. From 2018 to the
end of 2022, Air China completed the retrofitting of
1,474 diesel vehicles in the domestic airports to
reduce exhaust emissions.
3.4.2 Wastewater Management
Air China strictly adheres to the Water Pollution Prevention and
Control Law of the People's Republic of China and other relevant
laws and regulations. We work to achieve integrated wastewater
control and discharge by implementing whole-process management
during the operation process.
* Sanitary wastewater is regularly monitored to ensure
that the discharge meets the standards, which is
uniformly discharged into the airport after treatment
and then the municipal pipeline networks .
* For industrial wastewater, we are equipped with
wastewater treatment facilities and online monitoring
devices to ensure that the discharge meets the
standards. In 2022, we treated 485,000 tonnes of
industrial wastewater, with a 100% industrial
wastewater treatment rate.
3.4.3 Waste Management
Air China strictly adheres to relevant laws and regulations
related to waste management, develops regulations on managing
hazardous waste temporary storage, and on-site emergency response
measures for accidents. Furthermore, we sign the Hazardous Waste
Disposal Agreement with third-party entities to strictly regulate
the process of classification, collection, storage, and disposal of
various types of waste, such as household waste, kitchen waste,
in-flight waste, and hazardous waste, in order to ensure that the
waste is discharged in accordance with the standards, reducing the
environmental impact further.
* Household waste is sorted out and transported to the
designated waste storage area for unified recycling
and treatment by third parties.
* Kitchen waste is transported to the designated waste
storage area and handed over to qualified third
parties for unified recycling and treatment. By the
end of 2022, a total of about 3,073.6 tonnes of
kitchen waste [3] had been disposed of properly.
* Hazardous waste is transported to the designated
waste storage area and handed over to qualified third
parties for unified treatment. By the end of 2022,
1,112.4 tonnes of hazardous waste had been disposed
of properly.
* In-flight waste is transported to the designated area
of the airport and handed over to the airport for
unified recycling and treatment.
Disposed hazardous waste from aircraft maintenance [4]
(tonne)
Indicator 2021 2022
Waste containers and contaminants 402.9 317.8
------ ------
Waste oil 160.8 191.7
------ ------
Waste cleaning fluid 174.1 180.8
------ ------
Waste paint and paint bleaching
liquid/slag 34.2 51.8
------ ------
Waste activated carbon 105.8 163.3
------ ------
Wastewater treatment sludge 164.2 90.1
------ ------
Spent acid 26.4 40.9
------ ------
Spent alkali 17.9 30.6
------ ------
Waste mercury-containing fluorescent
tubes 1.7 2.1
------ ------
Waste reagents and detection
solution 0.3 0.7
------ ------
Waste batteries 0 0.9
------ ------
Spent developer 0.2 0.1
------ ------
Spent resin, waste rubber 0.6 0.2
------ ------
Waste chemicals 0 0.9
------ ------
Electroplating wastewater 0 40.5
------ ------
Plastic Limit
Air China is committed to plastic limit by comprehensively
promoting special actions of plastic and waste reduction. The
Company has always adhered to plastic limit principles of
reduction, standardization, and recycling , developed a special
action plan for plastic control, comprehensively implemented
plastic and waste reduction in six areas, and completed task
targets as planned at each stage.
l Aviation products: Starting from January 1, 2022, all products
such as knives, forks, spoons, cups and stirring sticks of Air
China's domestic flights and airport lounges had been replaced
with biodegradable materials.
l Cargo transportation: Promoted biodegradable rain cloth on a
pilot basis.
l Office supplies: Issued the Notice on Promoting Plastic Pollution
Control in Offices, and implemented plastic limit and prohibition
requirements in all offices of Air China.
l Hotels and apartments: From December 2020, all hotels, guesthouses
and apartments no longer actively provide six types of disposable
goods.
l Procurement management: The Notice on the Implementation of Green
Procurement was issued to promote green procurement across the
Company.
l Plastic waste sorting and recycling: Waste sorting and recycling
facilities had been fully installed in all buildings of the Company.
3.4.4 Noise Management
Air China actively promotes noise pollution prevention and
control and strictly adheres to relevant laws and regulations, such
as the Regulations of the People's Republic of China on the
Prevention and Control of Noise Pollution. We have established
noise management procedures and implemented the Environmental
Standard of Aircraft Noise around the Airport to control noise
emissions. We work hard to minimize the impact of noise on the
surrounding environment as well as our employees' health and
safety.
3.5 Use of Resources
Air China, guided by high-quality environmental management,
focuses on energy savings and consumption reduction by actively
exploring the use of new energy, strengthening water resource
management, improving energy consumption efficiency, and recycling
resources. We are committed to integrating green energy savings
philosophy into all aspects of construction and operation
management, working to alleviate the stress caused by environmental
risks, and creating a model of resource-saving aviation
enterprise.
3.5.1 Energy Saving and Consumption Reduction Management
* Promoted fuel savings in operations
The Company evaluated the operating conditions in a science-based
way, effectively controlled the flight returning and diversions,
reasonably controlled the weight of aircraft, and continuously optimized
the matching of aircraft models with routes, to effectively improve
the transport capacity, operation quality and the reduction of fuel
consumption. In 2022, we saved 7,767.8 tonnes of aviation fuel and
reduced 24,000 tonnes of carbon dioxide emissions.
* R eplaced APUs [5] with alternative fac ilities
We further boosted the use of 400 Hz static power supply and ground
air conditioning equipment as much as possible, to further reduce
aircraft emissions on the ground. It was estimated that Air China
reduced CO(2) emissions by 248,000 tonnes with APU alternative facilities
in 2022.
* Promoted the application of sustainable aviation
fuels
On October 20, we completed the flight of the A350 with domestic-made
sustainable aviation fuel, making Air China the first domestic airline
to take delivery of a wide-body passenger aircraft powered by domestic
sustainable aviation fuel, and the first domestic airline powered
by sustainable aviation fuel on both Airbus and Boeing aircraft.
* Optimized the energy mix
We continuously optimized the energy mix and promoted the transition
from oil to electricity. The Company procured 119 new energy vehicles,
bringing the total number to 1,058. We installed 92 new self-built
charging piles, bringing the total number to 329. We retrofitted
1,402 vehicles to reduce exhaust gas. It was estimated that we reduced
the total fuel consumption of vehicles by 3,115 tonnes and carbon
dioxide emissions by 9,450.2 tonnes in 2022.
* Research and development of the Aircraft Ground Fuel
Transfer System
We have independently developed the Aircraft Ground Fuel Transfer
System to achieve safe and clean fuel transfer directly. The system
can reduce the waste in fuel pumping for aircraft model replacement,
overhaul and maintenance, reusing the "waste oil". The project was
awarded the Technology Innovation Service Demonstration Case at
the 2022 China International Fair for Trade in Services.
3.5.2 Water Management
Air China strictly adheres to relevant laws and regulations,
such as the Water Law of the People's Republic of China, continues
to improve water resource management processes, as well as
developing the Water Management Regulations. We have extensively
researched water conservation and environmental protection
technologies, improved water recycling management, aiming to be a
model of water-saving aviation enterprise.
-- Set up metering devices in the office area to monitor water
consumption, providing data support for further water
conservation.
-- Introduced municipal reclaimed water to replace part of the
tap water consumption. In 2022, Air China and its subsidiaries
consumed 4.531 million tonnes water in the offices, with a per
capita water consumption of 52 tonnes.
-- Improved the road green belt and fountain water system. Air
China proactively took water conservation measures and completed
the renovation of the green belts and fountain water system in the
Company's headquarters buildings. This renovation could save about
6,000 tonnes of tap water per year.
-- Established a rainwater recycling system. A 4,200-cubic
meters rainwater storage pool was built for the main parking
building project of the Flight Crew Department. The rainwater
recycling system is used to integrate the rainwater for irrigating
the green areas of the parking building and car washing
gradually.
3.5.3 Energy Management
Air China strictly adheres to relevant laws and regulations,
such as the Energy Conservation Law of the People's Republic of
China, the Measures for the Administration of Energy Conservation
of Major Energy-Consuming Entities, in order to implement the
low-carbon and environment-friendly energy resource management. We
created the Energy Conservation and Emission Reduction Management
Manual and promoted to build green offices extensively. We have
taken the initiative to phase out the equipment and processes that
consume energy and emit pollution a lot, and we have actively
introduced and promoted the use of renewable energy technologies in
order to improve energy efficiency.
-- The lighting system in the public areas of key
energy-consuming buildings was renovated, and ordinary
energy-saving lamps were replaced with radar-sensing LED lamps. By
the end of 2022, we replaced more than 30,000 lamps.
-- The Air China Aircrew Dormitory project adopted a dual-system
operation mode integrating solar heating and high-temperature steam
heating to provide hot water for domestic use. This model uses
solar heating first and then steam heating as an auxiliary heating
means to effectively save energy.
-- The parking building project of the Flight Crew Department is
designed into the open enclosure form, maximizing the use of
natural light. This design reduces the energy consumption of indoor
lighting, ventilation, and heating to a certain extent.
3.5.4 Material Management
Air China considers factors such as efficiency and
sustainability when selecting materials, takes the initiative to
explore practices for reducing and recycling various materials, and
continues to promote "paperless" travel service for passengers.
-- In 2022, we provided paperless service for a total of 8.614
million passengers on the flights of Air China, Beijing Airlines,
Dalian Airlines, and Inner Mongolia Airlines.
--
3.6 Biodiversity Conservation
Biodiversity Conservation Projects
Air China strictly follows relevant laws and regulations such as
the Environmental Protection Law of the People's Republic of China,
the Law of the People's Republic of China on Environmental Impact
Assessment, and the Water and Soil Conservation Law of the People's
Republic of China. We take the initiative to carry out special
environmental protection work. In 2021, the Company and the China
Environmental Protection Foundation established the Air China
Yangtze River Ecological Protection Fund together, and the Air
China Guardianship of the Yangtze River Ecology project was
launched.
Air China Guardianship of the Yangtze River Ecology Project
The "Guardianship of Gongga, Gathering Strength of Air China" project
is the first innitiative of Air China's Guardianship of Yangtze
River Ecology, which was jointly launched by Air China and Gongga
Mountain National Nature Reserve Administration in Sichuan Province.
The project is designed to organize public welfare activities such
as capacity enhancement of rangers, provision of devices, biodiversity
conservation monitoring and promotion to low-carbon concepts and
local ecological protection and restoration.
Since January 2022, Air China has begun its biodiversity conservation
monitoring activities in the Gongga Mountain National Nature Reserve
with 10 infrared cameras and photographed 13 species of wildlife,
helping to clarify the status of wildlife in the reserve.
Management of newly-built, expansion and renovation projects
Air China strictly enforces environmental impact assessment for
newly-built, expansion, and renovation projects, requiring that
environmental protection facilities be designed, built, and put
into use concurrently with the main project, thereby minimizing the
impact of the operation process on the surrounding natural ecology
and biodiversity.
3.7 Corporate Green Responsibility
Air China strongly supports the low-carbon and environmental
protection philosophy, emphasizing the development of energy-saving
awareness among employees, promoting an environmental protection
culture, and increasing industry influence. We also work to improve
industry communication, spread low-carbon ideas, and fulfill our
environmental responsibilities.
Green Awareness Cultivation
Air China places a high value on educating employees about
low-carbon and environmental protection, energy conservation, and
emission reduction. Every year, we establish special funds for
environmental protection training and promotion, thereby
continuously enriching our employees' knowledge of energy
conservation and environmental protection and assisting in the
spread of an environmental protection culture in society.
A series of activities to celebrate the Energy Conservation Week
Air China launched the "My Low Carbon Life" essay and painting contest
under the theme of "Green, Low carbon, and Energy Conservation Efforts"
to celebrate both "National Low Carbon Day" and the "National Energy
Conservation Week". The collection of essays and paintings vividly
showed the practice of Xi Jinping's thought on ecological civilization
in work and life.
The release of the "Green and Low Carbon, Building a Better Home"
initiative
Air China has launched a comprehensive energy-saving and environmental
protection project from the air to the ground. We actively advocate
"making green the main color of high-quality civil aviation development"
"using low-carbon technology to build the main engine for green
civil aviation development" "Risk prevention management ensuring
the ecological and environmental protection " and "to enjoy a better
life with the green development concept", and make concerted efforts
to build a low-carbon home.
The green-themed activity
On June 17, the "Zhaojun" crew of Inner Mongolia Airlines launched
a flight activity on CA8143 (Hohhot-Chengdu) with the theme of "Building
a Better Homeland with Green and Low-carbon Development". This activity
aimed to promote the importance of energy saving and emission reduction
to passengers, introduced the knowledge of the "dual carbon" strategy,
and called on to protect the planet and the natural environment.
Passengers proactively participated in the activity by sharing tips
to save energy and leaving appreciation remarks and good wishes
to the flight crew.
4. Product Responsibility
Air China prioritized high-quality service and followed the
"service first" business philosophy. The Company implemented a
comprehensive service quality management mode with "quality
service" as the starting point, practiced the concept of "sincere
service", actively explored upstream and downstream supply chain
management methods and strategic collaboration with industry
partners, and made ongoing innovations to improve the ability of
service and provide word-class service to passengers.
The " 14th Five-Year Plan " in the service field
Creating world-class services and products
Deepening the "Three Orientations"
Practicing the "Three Comprehensive Strategies"
Customer Orientation, Problem Orientation, Global Benchmarking,
Full-process Governance Value Orientation, Endeavour throughout
Entire Chain
Static Planning-> Dynamic Management
Fragmented Scene-> Full-process Connection
Passively Follow-> Actively Lead
Excellent service, Comprehensive and smooth service guarantee, Win-win
and efficient collaboration, Timely and accurate service, Innovative
and digital support, The trustworthy and professional team
4.1 Quality Service
4.1.1 Service Quality Management
Improving the service system
-- According to the National Guidelines for Standardization, the
Company has initially established a "1 + 2 + N" product and service
standard system that divides its product and service standards into
product and service basic standards, service quality management
standards, and procedural work standards.
-- 36 whole-process product and service standards were revised
and improved throughout the year.
-- A new version of the Service Quality Management Manual was
released to further improve the Company ' s service quality
guidelines and policies, clarifying the related matters and
responsibilities of the Company ' s service quality management, and
adding the content of service culture, service quality risk
management, service innovation, and new technology application.
The Company carried out the internal audit of the service
management system, analyzed opportunities for improvement to
provide direction for the long-term development. At the same time,
a third party was hired to conduct an ISO 9001:2015 certification
audit of the Company ' s service management system.
l Internal audit measures
Organized an annual special audit of service.
Conducted audits for 14 units in the service field.
l External audit measures
The audit focused on 10 aspects, including annual key work
planning and implementation, standard service implementation,
service quality risk control, service problem rectification, and
staff training, and proposed three non-conformance items and
fourteen improvement opportunities to promote improvement through
audit and achieve excellent results in the development of a service
quality management system.
4.1.2 Sincere Service
To meet the needs of passengers, Air China explored innovative
technological service and products, enhanced service quality,
providing passengers a considerate and convenient air travel
experience.
Guaranteeing flight regularity
l Supervised relevant units to formulate and implement the flight
operation standards in accordance with the Air China Flight Operation
Guarantee Standard.
l Formulated, adjusted and implemented the flight normality assessment.
l Communicated and coordinated with local transportation management
committees, and cooperated with Beijing Capital International Airport
to carry out the delay investigation.
l Conducted a special analysis of the abnormal flights.
l Carried out weather consultation about changing the flights.
l Carried out weather consultation about flexible organization of
route changes.
In 2022, The flight punctuality rate [6] reached 95.45%, up 6.49
percentage points year-on-year.
The flight execution rate was 99.2%, up 0.17 percentage points year
-on-year.
Passenger Service
Smart travel Service:
* Air China continued to promote paperless and
contact-free service with 138 domestic terminals, 124
of which providing the service of electronic boarding
pass customs clearance with QR code.
* Air China actively innovated and relied on
information systems to improve the service guarantee
capacity of the terminals, and became the first
airline in China to offer the health information
query and automatic verification service for
international inbound passengers in the departure
system, and launched its function at 28 overseas
stations in Europe, America, Asia-Pacific and Africa.
* Air China continuously expanded the luggage tracking
network, with the number of luggage tracking stations
reaching 30; optimized the APP service, launched the
function of domestic interline-baggage status inquiry,
luggage status information push, and luggage tracking
status inquiry between the Star Alliance members.
In-flight decoration and seats:
* The cabin visual product featuring "Phoenix Dancing
in the Clouds" was put into use. The new in-flight
decoration perfectly integrates the beautiful
artistic conception of "leaning on the Phoenix,
sitting and enjoying on the cloud" with the relaxed
and comfortable lifestyle, creating an exclusive
comfortable flight experience in Air China. The new
A350 business class seats are exclusively customized
and offer an enhanced sense of spaciousness,
functionality and comfort.
In-flight entertainment:
* The new version of the in-flight entertainment system
interface is more convenient and more user-friendly.
* The "Thousand miles of rivers and mountains" version
of the in-flight Safety Instructions was launched.
While spreading safety knowledge and China
traditional culture, the new IP image of "Air China
Baby (Dragon Baby, Phoenix Baby) " made debut.
In-flight meals:
* We collaborated with Quanjude Group to launch a new
concept of in-flight catering. We initiated an
upgrade of Air China's themed meal box service,
incorporating green development, energy saving and
environmental protection concepts into the product
design, could provide passengers with a convenient
and innovative in-flight dining experience.
Marketing products:
* The "Evergreen Plan" and "Qingxin Card" products were
launched, and the second phase of the "Elderly Rights
Card" products were launched for the elderly aged 60
and above.
* In 10 domestic boutique routes, we launched trial
operation of economy class seat selection products.
* On routes from Beijing Capital International Airport
to Shanghai, Hangzhou, Chengdu, Chongqing, Guangzhou
and Shenzhen, we rolled out an upgraded version of
Air China Express Line.
* Air China ' s self-run lounge products cover 21
airports, achieving full coverage of key domestic
airports and routes. With the launch of the new
lounge interior design of "Zixuan" for first class
and "Zichen" for business class, the Air China spirit
and Chinese culture is displayed in a fresh way.
* Together with China Railway, Air China created a fist
product of joint air-rail transportation, which
provides one-stop ticketing service for air tickets
and train tickets through the Air China App.
Responsible Marketing
Air China strictly abides by the Advertising Law of the People '
s Republic of China and other laws and regulations, and has
formulated and issued internal documents, which sets out clear
requirements and guidelines for the Company ' s marketing and
promotion process, ensuring that marketing and promotion
information is compliant, truthful, accurate and effective, and
safeguarding passengers ' right to know, while actively fulfilling
its commitments to passengers.
The upgraded brand of Air China Express Line
On November 22, Air China ' s presentation of express line brand
was successfully held. The upgraded version of Air China Express
Line has further improved the ground support resources, created
a quality service of "Go as You Please", and provided more comfortable
and convenient travel experience for the passengers.
Special passenger service
Air China adheres to the "life first" concept, continuously
improves the quality of service for special passengers, by
implementing special passenger service projects, expanding the
scope of service, revising the service standard, and optimizing the
service process.
Improving the customer service experience
* Air China APP launched online booking portal for 10
kinds of service including those for unaccompanied
children, the disabled military and police, people on
wheelchairs, visually impaired and hearing impaired
people.
* Launched paid products for unaccompanied passengers
aged 12-18, serving 61,017 passengers in 2022.
Perfecting special passenger service
* Revised the Special Passenger Service Standards,
optimized the transportation policy for the injured,
the sick and the postoperative passengers.
* Simplified the process for disabled and injured
passengers to apply for in-flight wheelchair service
by equipping the flights with on-board narrow
wheelchairs.
The accessibility renovation was completed on the domestic official
website
* On January 14, the accessibility renovation was
completed on the domestic official website, which was
officially included in the list of "the first batch
of elderly oriented and accessibility renovation
evaluation websites" by the Ministry of Industry and
Information Technology. Through intelligent analysis
technology, the domestic official website now
supports accessibility functions such as voice
reading, color changes, size settings, large subtitle
display and other functions.
Providing smooth travel service for the group of passengers with
disabilities
Yangfan Ensemble of Chongqing Special Education Center, a group
of 63 people who participated in the opening ceremony of the Winter
Paralympics, took a round-trip flight from Chongqing to Beijing
with Air China. The Company coordinated seating, guidance and other
multi-step service to ensure a safe and smooth travel whole-heartedly.
On March 14, the Ensemble sent a letter of appreciation to the Company.
Safeguarding the rights and interests of passengers
Air China prioritizes the protection of passengers' rights and
interests by updating the Management Regulations for Service
Remediation Authorization, launching compensation standards,
establishing a monthly complaint case analysis mechanism, dealing
with customer complaints in a timely manner, and protecting
passengers' rights and interests.
In 2022, number of passenger complaints : the Company accepted
14,787 complaints
Passenger complaint feedback rate [7] : 100%
Satisfaction survey:
Passenger satisfaction questionnaires recovered: 82,349 copies
Overall passenger satisfaction: 87.5 points
Premium passenger satisfaction: 87.6 points
Ticket service satisfaction: 89.8 points
Ground service satisfaction: 84.9 points
Cabin service satisfaction: 85.7 points
International luggage loss rate (pieces/thousand passengers): 1.56
Domestic luggage loss rate (pieces/thousand passengers): 0.2
Passenger privacy protection
Air China strictly complies with the Cyber Security Law, the
Data Security Law, the Personal Information Protection Law of the
People ' s Republic of China and other laws and regulations. The
Commercial Committee is responsible for managing personal passenger
information, and the Company's leadership is the responsible person
in charge of guiding and supervising the activities of handling
personal passenger information. The Company has established
internal policies that apply to all of its businesses and
subsidiaries, which apply to all passengers and protect the privacy
of their personal information.
Technical guarantee:
* The Company ' s Information Management Department was
granted ISO 27001 Information Security Management
System certification, and 5 core systems were granted
PCI-DSS certification, including e-commerce system.
* The 5 core systems pass the three-level assessment of
network security level protection.
Management guarantee:
* The Company conducts annual internal audits of its
information security system, as well as external
certification audits such as ISO 27001 Information
Security Management System, Payment Card Industry
(PCI) and Network Security Level Protection.
* The Company keeps key information systems, personnel
in key positions and key equipment in control.
* Passengers can add or modify their personal
information and cancel their accounts through various
sales channels of Air China.
* The Company carries out fishing email combat drill to
improve the safety awareness of staff.
* The Company conducts publicity and special training
in information security and privacy protection for
all employees, and requires outsourced staff and
suppliers to complete information security training
before working.
4.2 Responsible Supply Chain
4.2.1 Quality Management of the Supply Chain
Air China adheres to the principles of fairness, impartiality,
and openness, and strictly abides by the Bidding Law of the People
' s Republic of China and the Regulations on the Implementation of
the Bidding Law of the People ' s Republic of China . The Company
established the Procurement Management Committee to coordinate the
overall work of the procurement business, issued documents and
continuously improved the construction of the supply chain
management system. The Company signed the Self-Assessment
Questionnaire on Social Standards Compliance with Suppliers to
standardize supplier management, including the content of ethics,
environmental protection, employee rights protection, anti-child
labor, and forced labour, and implemented the whole-process
suppliers' management mechanism to control the environmental and
social risks involved in the supply chain.
Supplier Admission and Exit Mechanism
* Strictly adhered to the Supplier Management
Regulations, required suppliers to fill out the
Supplier Information Registration Form and the
Supplier Self-Assessment Questionnaire on Compliance
with Social Standards truthfully and provide the
corresponding qualification proof.
* A qualification compliance audit team was formed to
audit supplier qualifications and compliance.
Performance Management
* To achieve closed-loop management, we used "quality,
safety, customer satisfaction, cost, supply guarantee,
and innovation" as the core dimensions, established
an assessment mechanism, and aligned the supplier
assessment results with the procurement process.
* Established daily performance files for suppliers,
conducted regular interviews to review performance
appraisal results, devised corrective measures, and
encouraged improvement for suppliers.
Classification-management
* Categorized suppliers into five levels: strategic,
premium, qualified, restricted and eliminated, and
established a supplier information database for
standardized management.
* Encouraged the establishment of long-term partnership
with premium suppliers and developed them into
strategic suppliers; supervised the performance
improvement of qualified suppliers; followed up the
progress of rectification of restricted suppliers;
and strictly cancelled partnership with the
eliminated suppliers.
Responsible Procurement
* Developed the Supplier Self-Assessment Questionnaire
on the Compliance with Social Standards, which
standardized supplier collaboration in multiple
dimensions, such as society and the environment.
* Incorporated the supplier's ESG risk and performance
into the review scope and required the supplier's
first-tier suppliers to agree to the Supplier
Self-Assessment Questionnaire on the Compliance
Social Standards, which included the above
indicators.
* Suppliers involved in environment-friendly and green
development procurement projects, are required to
provide relevant qualification and certification
materials in accordance with national environmental
protection requirements.
Number of suppliers in procurement business
Domestic: 5,341 Overseas: 354
Number of suppliers in aircraft procurement business
Domestic: 11 Overseas: 10
Number of new suppliers
Domestic: 673 Overseas: 98
In December, Air China revised and released the Supplier Management
Regulations to further improve the supplier management system and
promote the transformation of the procurement business. It clarifies
supplier management responsibilities, standardizes supplier management
requirements, strengthens risk management and realizes the transformation
of supplier management to digital management.
Air China has been paying attention to the international sustainable
aviation fuel (SAF) industry for a long time, and took key steps
actively towards building a commercial application chain for SAF.
In 2011, the Boeing B747 aircraft of Air China was used for the SAF
verification flight at Beijing Capital International Airport. In
2022, the A350 wide-body aircraft delivered from the Tianjin Airbus
Delivery Center, carried out the first flight with the domestic produced
SAF.
Air China has implemented the special actions to promote plastic
pollution control. As for passenger service products and the Company's
office supplies, we effectively implemented the Company's green
concept of replacing them with environment-friendly materials; as
for engineering projects, we strictly controlled various types of
pollution and the quality of materials and equipment; and we advocated
the addition of environment protection-related clauses in the procurement
requirements process, supplier qualification review and procurement
evaluation process to help improve the Company's image.
4.2.2 Compliance Management of the Supply Chain
Air China always has zero-tolerance toward supply chain
corruption. To prevent supplier corruption and bribery, the Company
requires suppliers to sign the Supplier Commitment against
Commercial Bribery according to the Supplier Management
Regulations, and proposes countermeasures while improving the
system. Throughout the reporting period, all of Air China's
suppliers signed the Letter of Supplier Commitment Against
Commercial Bribery.
4.3 Coordinated Development of the Industry
Industry cooperation
* Actively participated in international organizations,
became the member of Alliance Management Board
Strategic Committee (AMBSC), the Customer Experience
and Frequent-traveler Committee, and the Sustainable
Development Strategy Group on multiple occasions.
* Selected and sent business backbone to join the
national standard compilation group for Civil
Aviation Passenger Transport Terminology and
participated in national standard discussion and
compilation.
* Actively participated in the development of the China
Distribution & Settlement Solution (CDS) platform,
which was led by the China Air Transport Association.
* Participated in the China Air Transport Association's
discussion meeting of the Domestic Revenue Accounting
Manual and proposed the plan of international
passenger tickets of domestic airlines settled in RMB
via the domestic clearing network.
* Actively participated in cooperation in the alliance,
expanded the digital application of the alliance,
launched the free seat selection service for
intermodal transportation with alliance partners and
enriched alliance product service, enhancing
passengers' satisfaction.
* Encouraged the establishment of a collaborative
communication mechanism for business rules and
service disposal, as well as regular communication of
business regulations and intermodal transport service,
and launched cross-airline boarding service in 2022
in collaboration with Shenzhen Airlines and Shandong
Airlines.
Publicity and Communication
On September 19, Air China appeared at the 7th China-Eurasia Expo.
Air China focuses on the expansion of the western market, aiming
to strengthen regional exchanges for the development of western
China. The Expo shows the Company ' s efforts responding to the
Belt and Road Initiative and the expanded layout of the airline
network in the western region.
On November 8, Air China participated in the 14th China International
Aviation & Aerospace Exhibition. With the theme of "New Journey,
New Horizon", the Company showcased a comprehensive range of Air
China ' s operation capability, products and service as well as
achievements in green development. New products such as Air China
' s new in-flight entertainment system interface and new cabin interior
design were also showed at the exhibition.
On July 22, Air China took part in the 2022 China International
Travel Mart, showcasing the Company ' s operation capability, service
and achievements in supporting the aviation industry and economic
development of the southwest region.
4.4 Digital Transformation
Air China's digital transformation is an important step toward
becoming a world-class enterprise and achieving high-quality
development. To clarify the development blueprint for 2022-2025,
the Company has developed the Digital Transformation Action Plan
(2022-2025) and the Special Implementation Plan of the Digital
Transformation Action, among other things. The Company established
a leading group for information technology and digital construction
to strengthen the top-level design of its information technology
and digital work, perform information technology and digital
construction management, coordination, and preliminary
decision-making, to achieve unified leadership, scientific
decision-making, and efficient operation.
Leading Group of Information Technology and Digital Construction
Leading Group Office
Legal Department;
Audit Department;
Strategy and Development Department;
Information Management Department;
Centralized Procurement Department
4.4.1 Building a Digital Ecology
In order to support the implementation of the Company ' s
digital transformation strategy, Air China insists on the deep
integration of technology and business, intensifies the building of
business platforms, enhances the synergy and linkage of data and
applications, strengthens the improvement of professional and
technical capabilities, and insists on value-oriented, takes domain
level platform projects as the starting point to support digital
transformation of the Company.
Boosting the development of platforms for a large scale of
operation
l In the field of safe operation, built the full-dimension and
whole-process operation monitoring platform to improve monitoring
and disposal efficiency; launched the flight data management and
application system, established the QAR big data platform,
realizing the standardized data application with the QAR; put into
use the security air-ground linkage information system, and
significantly improved the refined management of aviation security
and information sharing capability.
l In the field of the ground operation, focused on transforming
Beijing Capital International Airport into a world-class hub,
launched the global ground flight support platform, connected the
operation service information to form the ground field database,
accurately connected people and flights via mobile terminals, and
realized the digitalization of the service process.
Deepening the establishment of an interactive platform for
customer relations at full contact points
Business innovation
v Integrated account data of all channels to realize the
integration of product sales and service functions on the
website.
v Promoted the integral management platform iteration, launched
90 functions.
Marketing service
v Upgraded the domestic tariff calculation function of
e-commerce platforms and greatly accelerated the speed of the
updates.
v Enriched the prepaid luggage products of domestic websites and
comprehensively optimized flagship stores' return and rebook
function.
v Continuously improving the customer relationship management
system function, with the total number of Phoenix Miles members
exceeding to 75.11million.
Full-process service
v Promoted the whole-process passenger information notification
project.
v Built passenger in-flight catering reservation management
system and a digital platform for the whole process of catering
reservation.
v Built the face recognition platform to achieve a breakthrough
in face recognition and intelligent service.
v Promoted online contact-free service, independently developed
the special passenger shared service center, and added in-flight
wheelchair and guidance service.
v Completed the integration and application of luggage data,
established Air China's whole-process luggage tracking system.
v Continued to improve the lounge service management system's
functions, launched the paid lounge and other products, realizing
the quantity of personalized service and non-aviation revenue
growing together.
4.5 T echnological I nnovation
4.5.1 Innovation Laboratory
Company-wide Innovation Laboratory
Aircraft Maintenance Engineering Technology R&D Center
Digital Transformation Innovation Laboratory
Air Internet Innovation Laboratory
Professional Field-based Innovation Laboratory
Chengdu Regional Hub Operation Innovation Laboratory
Operation Control Innovation Laboratory
Flight Innovation Laboratory
Marketing Service Innovation Laboratory
Ground Service Innovation Laboratory
Training Innovation Laboratory
IT Innovation Laboratory
Product and Service Enhancement Innovation Laboratory
Cultural and Creative Innovation Laboratory
4.5.2 Innovative Measures
Promoting efficient operation of innovation platforms
-- Launched the innovation management platform and rolled it out company-wide.
-- Established a flight innovation laboratory to expand the
coverage of research and development fields.
-- Promoted and completed the inspection and rectification to
all the 6 innovation laboratories.
Fostering an innovative atmosphere
-- Completed the selection for the first innovation award, and
rewarded the outstanding innovation achievements in the
Company.
-- Promoted the 2022 Innovation Talent Training program.
Innovation Workshop activity
Air China took the 95583 service scene as the soil for innovation,
dug out innovative projects such as "willing and daring actions",
and promoted the innovative thinking of the staff. At last 10 innovation
schemes with delivery conditions and 9 reasonable suggestions were
selected.
Air China's first Ka air-ground interconnected aircraft officially
coming into trial operation
The Ka satellite communication system, developed by AMECO, is the
first large-scale antenna modification project for civil aircraft
designed and developed by a Chinese MRO company. Based on the WIFI
interconnection of high-throughput Ka-band satellites, passengers
can enjoy high-speed Internet service on board.
Innovation Laboratory Open Day
On August 26, the 26th Open Day was organized by the Ground Service
Innovation Laboratory to conduct in-depth discussions on innovative
projects in the ground service area, laying a good foundation for
improving passenger service.
4.5.3 Intellectual Property Rights Protection
Air China strictly observed the Trademark Law and other related
laws and regulations, formulated internal policies to regulate the
application and approval process for various types of intellectual
property rights and implement policies on the protection of
intellectual property rights.
By the end of 2022, Air China had more than 2,770 registered trademarks
330 registered patents
15 copyrights
There was 0 incidents of trademark infringement due to the liability
of Air China throughout the year.
5. Employee Development
Air China adheres to the principle of "people-oriented" and
effectively upholds the rights and interests of its employees,
while prioritizing their occupational health and safety.
Additionally, we place great emphasis on employee talent
development, make clear channels for employee advancement, enhance
the salary and welfare plan, achieving common development with
employees .
5.1 Equal Employment
Air China strictly complies with the Labour Law, the Labour
Contract Law, the Employment Promotion Law of the People's Republic
of China, and other national laws and regulations. We implement an
open, fair, and equal employment policy, strictly prohibit any form
of child labour or forced labour, insist on equal pay for equal
work, and resist discriminatory behaviors against employees due to
gender, race, nationality, physical conditions, religion, marital
status, or other factors. The company is committed to protecting
the legitimate rights and interests of employees. We issue and
require all employees to sign the Employee Code of Conduct, which
outlines clear expectations for ethical employee behaviour. In the
event of a violation, the Company will handle the situation in
accordance with applicable laws and regulations, as well as
relevant provisions such as the Punishment Regulations for Labour
Discipline Violation. As of 2022, the Company had 87,190 employees.
There were no incidents of child labour, forced labour,
discrimination, or other violations. The labour contract signing
rate for employees was 100% and the collective contract coverage
rate was also 100%.
Air China Employees in 2022
Type Number Percent
Total employees of Air China 87,190 100.0%
------- --------
Number of employees
by employment
type Contracted 81,958 94.0%
---------------------------- ------- --------
Dispatched 4,226 4.8%
---------------------------- ------- --------
Interns 566 0.7%
---------------------------- ------- --------
Other 440 0.5%
---------------------------- ------- --------
Number of employees
by gender Male 52,469 60.2%
---------------------------- ------- --------
Female 34,721 39.8%
---------------------------- ------- --------
Number of employees
by age <=35 51,436 59.0%
---------------------------- ------- --------
36-45 24,027 27.6%
---------------------------- ------- --------
>=46 11,727 13.4%
---------------------------- ------- --------
Number of employees
by region China 84,780 97.2%
---------------------------- ------- --------
Overseas 2,410 2.8%
---------------------------- ------- --------
Number of employees Management and management
by profession support 10,943 12.6%
---------------------------- ------- --------
Marketing and sales 4,954 5.7%
---------------------------- ------- --------
Operation 4,625 5.3%
---------------------------- ------- --------
Ground handling 11,838 13.6%
---------------------------- ------- --------
Cabin service 22,961 26.3%
---------------------------- ------- --------
Logistics and support 5,872 6.7%
---------------------------- ------- --------
Flight crew 10,789 12.4%
---------------------------- ------- --------
Engineering and maintenance 13,372 15.3%
---------------------------- ------- --------
Information technology 910 1.0%
---------------------------- ------- --------
Others 926 1.1%
---------------------------- ------- --------
Number of employees
by education Master's degree and above 3,865 4.5%
---------------------------- ------- --------
Undergraduate 48,314 55.4%
---------------------------- ------- --------
Junior college 25,136 28.8%
---------------------------- ------- --------
Technical secondary school
and below 9,875 11.3%
---------------------------- ------- --------
Employee Turnover of Air China in 2022
Type Turnover Rate
--------------
Employee turnover by type Contracted 2.7%
----------- --------------
Dispatched 5.7%
----------- --------------
Interns 7.4%
----------- --------------
Other /
----------- --------------
Employee turnover by gender Male 2.4%
----------- --------------
Female 3.6%
----------- --------------
Employee turnover by region China 2.9%
----------- --------------
Overseas 0.5%
----------- --------------
Employee turnover by age <=35 3.9%
----------- --------------
36-45 1.6%
----------- --------------
>=46 0.8%
----------- --------------
5.1.1 Salary and Welfa re
Air China provides comprehensive employee welfare programs, including
social insurance, housing provident fund, enterprise annuity, comprehensive
medical insurance, etc. In 2022, the Company's enterprise annuity
coverage rate for employees was 100%.
In order to ensure the safe and stable operations, the Company
has implemented a special subsidy policy for aircrew and groundcrew
on the production line.
Air China guarantees that employees are entitled to statutory
leave and paid leave. In 2022, in accordance with relevant national
laws and regulations, the Company formulated and issued the Notice
on Adjusting the Management Regulations on Employees' Marriage
Leave and Maternity Leave to increase the days of parental leave
of employees.
On the basis of the previous policies , t he Company actively
discussed and promoted new equity incentive plan to encourage employees
to seek common development with the Company.
5.1.2 Performance Evaluation System
Air China follows the concept of "paying for post value,
personal ability, and performance results", continuously improving
the employee performance evaluation system, implementing incentive
policies, and strengthening incentive efforts of assessment. Social
responsibility indicators, such as risk prevention and control,
energy conservation and emission reduction, scientific and
technological innovation, are included in the management's
operating performance assessment system, which could influence the
annual salary level. In 2022, the Company revised and issued the
Job Performance Management Guidance to further regulate the entire
job performance management process.
Implemented salary benchmarking analysis and promoted the market-oriented
salary mechanism.
Established a differentiated efficiency mechanism and improved
the medium-term and long-term incentive mechanisms for core and
key talents.
Optimized the performance evaluation index system and simplified
the performance pays delivery procedure.
Carried out the survey of employee post-performance management
with the questionnaire to make the performance management process
more effective.
5.1.3 Democratic Management
Air China has continued to carry out the democratic management
of employees, improves the system construction, and follows the
Operation Rules for Trade Union Organization and Construction of
China National Aviation Holding Company, to further improve the
working process of grassroots trade unions' establishment, the
change, and the adjustment. The Company gives full play to the role
of the trade union as a bridge to actively listen to the voice of
employees, creates smooth and equal communication channels, and
timely obtains and adopts employees' suggestions, effectively
protecting the rights and interests of employees.
Air China Trade Union held 2 Workers' Congresses in the year.
Solicited 23 proposals for the congress, with a response rate
of 100%.
Updated and issued the list of matters for the joint meetings
of the congresses and employee representatives.
5.1.4 Employee Service
In the "Wing of Air China" 3.0 system, 4 mini apps including "service
guide, labor contract, on-service income certificate, and annual
leave management" were launched, and another 9 mini apps were completed
to improve employees' experience.
The Company conducted business guidance and communication with
the branches of the Employee Service Center. The official WeChat
platform of the center was upgraded to enhance online service capability
and business line, leading to an improvement in the satisfaction
of the Company's internal service.
5.2 Training and Development
5.2.1 Training System Construction
Table: Employee Training System
Based on civil aviation laws
Establish the training system for pilots, flight attendants, flight
security guards and flight dispatchers
Based on the qualification requirements of civil aviation transportation
Establish the training system for dangerous goods transportation
and aviation security
Based on Air China's production needs
Establish the training system for air transport personnel, expatriate
employees and
b usiness personnel
Projects for outstanding General quality training New employee training
managers
------------------------- ----------------------
Training for Air China and its major subsidiaries [8] in 2022
-- The total number of staff who participated in training : 45,201
-- The total time of the staff training : 2.392 million hours
Employee training status
type (hour)
Staff training
hours per person
by position Senior management 46.8
------------------- --------
Middle management 16.2
--------------------------------------- --------
Staff 50.2
--------------------------------------- --------
Staff training
hours per person
by gender Male 50.3
------------------- --------
Female 48.1
--------------------------------------- --------
type Percentage of trainees:
(%)
Trained Staff
percentage by
position Senior management 84.1%
------------------- ------------------------
Middle management 83.6%
------------------------------------ ------------------------
Staff 93.4%
------------------------------------ ------------------------
Trained Staff
percentage by
gender Male employees 95.7%
------------------- ------------------------
Female employee 90.3%
------------------------------------ ------------------------
Training organized by superior organs
17 Air China employees attended training courses provided by SASAC
and CAAC, completing 7,944 hours of training.
Training program for young cadres
Through the organization of basic training courses for young cadres,
We promoted to build a young cadre team of a highly qualified
professionals.
Online training
Air China offers leadership enhancement courses for managers.
On the platform of "Air China Leadership", 12 series of online
special training courses, including excellent traditional culture,
carbon peaking and neutrality, and talent work, were launched.
A total of 107 courses and 309 sessions were updated throughout
the year, bringing the cumulative course resources on the platform
to 1,089 courses and 1,880 sessions. The total number of courses
played on the platform for the year reached 5.533 million times
with a total of 491 thousand hours.
New employee training
In September, the "Phoenix in the Sky" training program for new
employees were held in Beijing. 275 new employees from 26 departments
attended the training.
Program of High Education for Civil Aviation Employees
On August 5, the graduation ceremony of high education for civil
aviation employees was successfully held. Through the high education
project, co-organized by the Civil Aviation Administration of
China and the Open University of China, a total of 260 Air China
employees graduated successfully, 7 employees were awarded the
honorary title of Excellent Graduate, while 5 others won the honorary
title of Outstanding Student.
5.2.2 Career Development
l Talent exchange
To promote talent exchange within the Company, the Company established
a talent exchange platform and released recruitment information
for 85 posts in 26 units throughout the year.
l Management personnel competing for posts
The Company increased the competition for the selection of cadres
and carried out the selection for the positions of managers in an
orderly manner. The proportion of personnel competing for management
positions was significantly higher than that in the previous year.
l Talent team building
We issued the Guidance on Talent Work, established a graded and
classified talent management system, vigorously introduced market-oriented
talents, optimized the structure of the team, improved the whole
chain management mechanism of "selection, cultivation, management
and employ", and formed a good situation for talents to be attracted,
retained, and employed.
5.3 Occupational Health and Safety
Air China keeps pushing the development of a system for
occupational health and safety of Air China and its subsidiaries
and makes management rules for work-related disease prevention and
health monitoring. In 2022, the Company carried out an
investigation on positions with occupational disease hazards in
Beijing's units. The health level of the workforce was raised
through a full range of health examinations, training, and
psychological consultations. In 2022, Air China lost 5,300 working
days due to work-related injuries.
5.3.1 Engaging in Occupational Disease Prevention and
Control
Occupational disease prevention and control
* The workers' congress was held to examine and approve
the Management Regulations on Occupational Disease
Prevention and Control.
* We conducted occupational health examinations on
whole process for employees in key units with
occupational hazards. We took effective management
measures such as temporary removal from work for
employees with occupational contraindications based
on the conclusions of the medical examination body
and carried out testing for jobs with occupational
hazards.
Employee health examination
* In 2022, the coverage rate of physical examination
for Air China employees reached 100%. Flight crews
took health examinations at the medical accreditation
institutions designated by the Civil Aviation
Administration.
* Air China relies on Grade-A tertiary hospitals to
establish health records for employees and helps
provide "last-mile" post-check consultation service
for employees, who need consultations and outpatient
service after health examinations.
Occupational health training sessions and presentations
* 18 special lectures on the prevention and control of
occupational diseases were organized. Additionally,
the company conducted publicity and consultation
activities on this topic and distributed more than
500 copies of related materials.
Mental health care
* Air China strengthens the development of mental
health service teams and frequently provides online
counseling on emotional management. The Company
focuses on providing customized psychological
consultation service to employees to ensure that
psychological stress is effectively relieved.
* In 2022, the Employee Assistance Program (EAP)
covered more than 38,000 employees.
* The service hotline received 1,904 calls from
employees, and the hotline consultation time was
2,526.5 hours.
* We held 167 thematic training sessions, 9 special
group counseling sessions for the new employee, 118
group counseling sessions, 17 thematic micro-courses,
1 crisis management group counseling session, 2 group
counseling sessions for aircrew members, and 27
"Talking inner world" activities.
5.4 Incentives and Care
5.4.1 Advanced Model and Innovation
* Kong Jianrong from Operations Control Center, Liu
Wenqi from Commercial Committee, He Haiying from
Ground Service Department, Cao Hui from COVID-19
Pandemic Prevention & Control Office , and Chen Fei
from AMECO were awarded the National Civil Aviation
Labor Medal.
* Luo Lei from the Flight Crew Department was awarded
the "Capital Labor Medal".
* 23 employees of Air China were awarded as Advanced
Individual of Air Transportation for the Beijing 2022
Winter Olympics and Winter Paralympics by the Civil
Aviation Administration of China.
* Li Lilong from Flight Crew Department , Yao Na from
the Cabin Service Department, Zhang Ce from the
Ground Service Department, and Feng Chuntao from
AMECO were awarded as Advanced Individual of Beijing
City for the 2022 Winter Olympics and Winter
Paralympics by the Beijing Municipal People's
Government.
* On January 23, 2023, the National Model Worker -
AMECO Senior Engineer Ni Zejun, told his story of
aircraft maintenance in 28 years on CCTV-2's
"Building Dreams with Craftsmanship" program,
carrying forward the dedication spirit of model
workers.
* On April 8, the State Council awarded the groups and
individuals who had made outstanding contributions to
the preparations and competitions for the Beijing
Winter Olympics and Winter Paralympics. Zhang Xin,
deputy general manager of the Ground Service
Department, was awarded the honorary title of
Outstanding Contribution Individual of the Beijing
Winter Olympics and Winter Paralympics.
* 45 employees and 23 groups of Air China were awarded
the title of Advanced Model and Advanced Group
separately by CNAHC, and Air China selected 120
advanced individuals and 50 advanced groups at the
company level .
* In the selection of innovation studios for a dvanced
m odel and craftsmen of CNAHC , 7 studios were
awarded the honorary title of Exemplary Innovation
Studio of CNAHC, in the second batch of selection
another 7 innovation studios were awarded as
Innovation Studio of CNAHC.
Vocational skills competition
* The employees participated in the first Civil
Aviation International Vocational Skills Competition,
held by the Trade Union of Civil Aviation
Administration of China, showcasing the skills and
style of Air China's employees.
* For five consecutive years, Air China had organized
the employee competition to build a stage for
employees, encouraging them to enrich their
professional knowledge, and building the service
brand image of Air China.
5.4.2 Caring for Employee Life
-- In 2022, a total of RMB 62.5 million was distributed to employees
during the summer and winter.
-- The Company offered precise care for employees by distributing
RMB 650,000 to 296 employees in need.
-- The Company provided medical assistance of RMB 6.04 million to
302 employees.
Mutual aid fund for employees with serious illness
Since the launch of the mutual aid fund 3 years ago, it has provided
a total of RMB 9.59 million to 480 sick employees. In 2022, Air
China finished the raising work and distributing of the seventh
phase of employee mutual aid funds and issued new management measures
to standardize the types of major diseases and optimize the application
and inspection procedures.
Care to poverty alleviation cadres and the volunteer teacher
Air China visited and distributed a total of RMB18,000 to the employees,
who worked in the Zhaoping County of Guangxi Province as well as
Sunite Right Banner and Xilinguole League of Inner Mongolia, including
4 long-term volunteer teachers, 2 poverty alleviation cadres, and
4 cadres serving temporary positions,
Care for female employees
* On the occasion of International Women's Day on March
8, Air China held a lecture about Family Education
Promotion Law and other safeguarding women's rights
activities and provided a series of psychological
care courses for female workers to improve their
awareness of rights protection.
* Air China promoted the establishment of
female-friendly workplaces, carried out the upgrading
action of "Loving Mother House", and provided
meticulous and accurate care service for different
female groups.
Cultural activities for employees
-- The blessing activity
Air China launched a series of thematic cultural activities. Through
the selection of the Most Beautiful Employee, the collection of
staff blessing videos and other forms of the activities, employees
had enhanced the sense of identity and belonging.
-- The reading activity
In May, Air China organized employees to participate in the 21-day
thematic reading activity. Through daily reading, listening and
writing, a reading trend was formed, and a new look was presented.
-- The National Civil Aviation Culture and Sports Festival
Air China organized employees to participate in the online activities
of the National Civil Aviation Culture and Sports Festival in Beijing.
More than 300 pieces of works for painting, calligraphy and photography
were collected for online display, among which 69 of them won prizes.
6 Public Welfare
While dedicated to the Company's development, Air China also
takes part in numerous social welfare initiatives, fulfilling its
responsibility of rural revitalization and contributing to societal
development.
6.1 Rural Revitalization
Air China implemented the spirit of General Secretary Xi
Jinping's important instructions on consolidating and expanding the
achievements of poverty alleviation and promoting the
implementation of the rural revitalization strategy. The Company
shouldered the political responsibility of paired-up assistance,
helping Sunite Right Banner and Zhaoping County out of poverty, and
continuing to promote the comprehensive revitalization in the
industry, talents, culture, and ecology of the paired-up assistance
areas.
* During the year, RMB 40 million was invested for 25
assistance projects.
* A total of RMB 59.39 million was spent on the
purchase of products from the paired-up assistance
areas.
* A total of 16 young employees from Air China and
Shenzhen Airlines were selected for long-term
volunteer teaching, completing 3,310 class hours of
volunteer teaching throughout the year.
* During the year, 2,331 community-level cadres, 590
rural revitalization leaders, and 1,535 technicians
were trained.
Air China gradually establishes an "Aviation+" assistance model
that meets the requirements of the central government and local
needs and gives full play of the state-owned civil aviation
enterprise. The assistance work was integrated throughout the
industry chain by expanding in-flight meals procurement and
research, promoting mileage points exchanged for paired-up
assistance products, and increasing publicity and promotion through
aviation media and various expos.
6.1.2 Consolidating the Achievements of Poverty Alleviation
Consolidating poverty alleviation achievements is the foundation
and prerequisite for all-around rural revitalization. Air China
deepened rural revitalization work, ensuring the bottom line of the
prevention of large-scale poverty-returning in the paired-up
assistance areas.
In 2022, Air China invested RMB 8.4 million in basic education.
The Company built the special education school, and facilities in
the Zhaoping County Middle School such as football field and basketball
court; purchased eye protection lamps for 9 primary and secondary
schools, and installed safety facilities such as protection piles
for kindergartens in Sunite Right Banner.
In terms of medical security, RMB 4.8 million has been invested
in the construction of a Mongolian medical hospital in Sunite Right
Banner, so as to strengthen the achievements of poverty alleviation
in the paired-up assistance areas.
6.1.3 Comprehensively Promoting Rural Revitalization
Industrial Revitalization
Air China actively contributes to the industrial revitalization
in the paired-up assistance areas and enhances the endogenous
development motivation of the aided areas and the people who have
been out of poverty. The Company enhanced the construction of
agricultural infrastructure, improved the quality of agricultural
products, and expanded the distribution channels for agricultural
products, making the sustained growth of the residents' income.
Tea industry assistance
Air China invested RMB 20.535 million in industrial assistance
funds to upgrade Zhaoping County's tea industry processing base
by building an integration tea industry operation center and tea
industry scientific research base, and promote d the integrated
development of the local tea industry chain, innovation chain and
value chain by boosting tea processing, product branding and fine
packaging capacity, as well as introducing modern intelligent planting
technology.
The Company helped General Mountain Group achiev e the breakthrough
in overseas export orders.
From 2021 to 2022, Air China aided General Mountain Group in achieving
the transformation of 15 technological achievements . As a result,
General Mountain Group's subsidiary was awarded "National High-tech
Enterprise" . Additionally, it was approved to create "Guangxi Zhaoping
Tea Technology Backyard" jointly with Peking University, which opened
a precedent for scientific research and innovation in the entire
chain of Guangxi 's tea industry.
Tea industry assistance
* Air China invested RMB 20.535 million in industrial
assistance funds to upgrade Zhaoping County's tea
industry processing base, build an integration tea
industry operation center and tea industry scientific
research base, and promote d the integrated
development of the local tea industry chain,
innovation chain, and value chain by boosting tea
processing, product branding and fine packaging
capacity, as well as introducing modern intelligent
planting technology.
* The Company helped General Mountain Group achiev ed a
breakthrough in overseas export orders.
* From 2021 to 2022, Air China aided General Mountain
Group in achieving the transformation of 15
technological achievements . As a result, General
Mountain Group's subsidiary was awarded "National
High-tech Enterprise" . Additionally, it was approved
to create "Guangxi Zhaoping Tea Technology Backyard"
jointly with Peking University, which opened up a
precedent for scientific research and innovation in
the entire chain of Guangxi 's tea industry.
Consumption-driven assistance
* Air China organized and guided employees and Phoenix
Miles members to actively participate in
consumption-driven assistance. Over the past few
years, the company has purchased agricultural
products totaling RMB 290 million from the paired-up
assistance areas, and in 2022, we contributed RMB
59.39 million through consumption.
* During the activity of supporting rural development,
held by the State-owned Assets Supervision and
Administration Commission, Air China organized
employees to buy a total of RMB 8.16 million products
to support agriculture.
* In our platform "Air China Phoenix Miles Member Mall",
the Company organized the exhibitions and marketing
activities for tea from the paired-up assistance
areas, which generated sales revenue of RMB 290,000.
* Young volunteers were organized to sell goods in the
tea garden through live streaming. The number of
online people in a single live stream exceeded
31,000, and the cumulative sales revenue reached RMB
1.102 million.
Talent Revitalization
Air China promoted the revitalization of rural talents through
volunteer teaching and training in order to strengthen the
foundation of rural talent and advance rural revitalization to a
new level. The training fund was put into use a total of RMB 4.55
million.
Volunteer teaching
Air China has dedicated to the "Air China Blue Sky Classroom" volunteer
assistance project for 5 consecutive years. In 2022, we further
established and improved the selection and training mechanism of
teaching volunteers and perfected the systematic construction of
volunteer teaching in terms of both theory and practice. A total
of 16 teaching volunteers from Air China and Shenzhen Airlines taught
a total of 3,310 class hours in Zhaoping, and the students' grades
improved significantly compared with last year.
Air China Blue Sky Youth Study Project
Air China set up the Air China Blue Sky Education Development Fund
in Sunite Right Banner and continued to organize activities of the
"Air China Blue Sky Youth Study" project, focusing on cultivating
young people who want to dream and realize their dreams.
Comprehensive training programs
Air China cooperated with professional educational institutions
such as Beijing Normal University to provide special skills training
for primary and secondary school teachers. The Company conducted
comprehensive training programs covering community-level managers,
rural revitalization leaders, and technical personnel, which further
enhanced the professional level of grassroots officials in the paired-up
assistance areas and improved the employment and the wealth making
ability of poverty- alleviation households.
Cultural Revitalization
Rural revitalization is not only about industry development but
also about casting the culture. Air China has made significant
efforts to revitalize rural culture so that people could enjoy a
more fulfilling and higher-quality spiritual and cultural life,
which helps create a new atmosphere of rural social
civilization.
C ulture co-construction with Ulanmuchi of Sunite Right Banner
Air China encouraged the people of Sunite Right Banner to carry
forward the local culture and invested a total of RMB 2 million
to support the art creation of Ulanmuchi culture and artistic performances.
During the convening of the 20th CPC National Congress, the Ulanmuchi
and Air China jointly wrote songs together to carry forward the
core socialist values.
F amily education demonstration
Air China joined hands with the Research Institute of Mother Philosophy
to hold parenting lectures and the "Air China Blue Sky Parent-child
Summer Camp" in Zhaoping County, contributing to setting an example
of family education demonstration.
Ecological Revitalization
Air China actively encouraged people in the paired-up assistance
areas to prioritize ecological development. While assisting in the
growth of local industry, Air China continued to improve the
environment and promoted the deep integration and diversification
of the rural ecological chain, industrial chain, and value
chain.
Jiangkou Village Infrastructure Construction project
Air China carried out infrastructure construction projects in
Jiangkou Village of Zhaoping County, got through the farmland
irrigation system, installed solar street lamps, maintained roads
and drainage pipes, etc. , benefiting more than 4,700 people in
the village, and effectively improving the safety and quality
of the community.
Organization Revitalization
Air China followed the a griculture-related principle s of the
Communist Party of China, assisting grassroots P arty organizations
in the paired-up assistance areas to improv e their leadership
system and working mechanism and increase their working
capacity.
Joint rural P arty organization building
Air China invested RMB 1.9 million in Sunite Right Banner to improve
the infrastructure construction of the P arty school and launch
the special training project of the P arty school . Through the
joint Party building activities w ith the Ulanmuchi Party Branch
of Sunite Right Banner, the General Mountain Group Party Branch
of Zhaoping County, and the Party Branch of Jiangkou Village together
, the Company put into the "red gene" of flag carrier into the
construction for rural revitalization.
6.2 N eighbourhood Assistance
Under the unified guidance of the Company, each branch carried
out the neighbourhood a ssistance work based on the local
situation.
Promotion of agricultural products
On September 6, Zhejiang branch held an agricultural products promotion
activity to assist Qingyuan County of Zhejiang province to broaden
the sales channels of agricultural products.
Consumption to support agriculture
In 2022, Chongqing Branch purchased agricultural and husbandry
products totaling RMB 796,800 from Xiangyun Village, Henghe Town,
Wanzhou District, Chongqing City, to help villagers increase their
income.
Serving the People
The cadre from Inner Mongolia Airlines, who worked in the paired-up
assistance village, acquired the health situation of the herdsmen
in Ergenhe village, Oroqen Autonomous Banner, Hulunbuir City.
Low-carbon photovoltaic project construction
Zhejiang Branch invested RMB 180,000 to assist Huangyu Village
of Qingyuan County to promote the roofing photovoltaic projects
of public buildings, factories, family houses, etc.
Set ting up a public welfare photo studio
In October, the first public welfare photography studio - "Phoenix
Photography Studio", jointly founded by the village assistance team
of the Southwest Branch of Air China and the Songduo Town People's
Government, was officially opened. In order to welcome the Spring
Festival of 2023, the members of the Studio traveled more than 300
kilometers in 4 months to take family photos for 2,097 people from
402 households in Songduo Town, enriching the cultural life of the
villagers.
6.3 Volunteer A ctivities
Air China adheres to the volunteer service concept of
"dedication, friendship, mutual assistance and making progress",
and actively encourages employees to participate in social welfare
activities and give back to society.
Young volunteer activities
Air China organized various units to carry out 1,383 young volunteer
activities, engaging over 30,000 young volunteers. The service time
reached 23,178 hours, and more than 75,000 passengers were served.
Golden Phoenix Mother volunteer service
Golden Phoenix Mother volunteer service project started from the
assist to an orphaned child by the "Golden Phoenix" cabin crew of
Air China in 2005. For more than 10 years, the Golden Phoenix cabin
crew has been working together with the cabin service department
to build a growing volunteer team, with more than 1,000 cabin crew
members participating in volunteer work for the development of children
and youth. They carried out charity projects including visiting
stay-at-home children in Sichuan Province, establishing the Air
China Golden Phoenix Book Corner in Chaoshan region, and donating
books constantly. In November, the Golden Phoenix Mother volunteer
project won the Silver Award in the Sixth China Young Volunteer
Service Project Competition.
Volunteer work for the Winter Olympics and Paralympics
During the Beijing Winter Olympics and Paralympics, Air China selected
197 volunteers to participate in the event service and airport transfer
support work, and the volunteer work amounted to 1,497 hours.
Volunteer Service for disabled children
Shanghai Branch regularly carries out Volunteer Service for disabled
children and organizes volunteers to visit the Shanghai Yuemiao
Foster Home to show consideration for the children.
Thematic activities for the elderly
On October 4, the "Heyue" team of Zhejiang Branch visited Hangzhou
Yuhua Elderly Home and organized a thematic activity for the Elders'
Day . The volunteers interacted with the elderly and provided them
with care and warmth.
6.4 Supporting the C ommunity
6.6.1 Major Transport Support Tasks
With our rich experience in providing air transport service, Air
China has demonstrated our responsibility by undertaking major air
transport missions.
Successfully completing the task of air transport for the Beijing
Winter Olympics and Paralympics
During the 2022 Beijing Winter Olympics and Paralympics, Air China
adhered to the bottom line of "safe operation", and successfully
achieved the goal of "safety, quality service, and smooth operation".
There were 38 aircraft deployed with a total of 203 flights, 2,892
flight crews and other 17,794 personnels served during the Winter
Olympics and Paralympics.
Guaranteeing the transport of delegates for the 20(th) CPC National
Congress with high standards
From October 13 to 25, Air China organized flight transport according
to the general requirements of the Civil Aviation Administration
and our special plan, achieving the goal of "safety, quality service
and smooth operation". During the congress, Air China carried out
totally 31 inbound and outbound flights for the delegates.
Ensuring the smooth transportation of the fifth China International
Import Expo
On November 5, the fifth China International Import Expo opened
grandly. Air China made a careful deployment to provide high-quality
transport service for the Expo.
Operations on the Tibet Plateau
On March 1, Air China Flight CA4403 carrying 206 passengers safely
landed at Gongga Airport in Lhasa, which is located 3,570 meters
above sea level. This marked the 57th anniversary of Air China's
Chengdu-Lhasa route, which served as the golden air bridge on the
"roof of the world", the Tibetan Plateau. Over the past 57 years,
Air China has successfully operated 107,900 flights on this route,
transporting 13.95 million passengers, and 307,000 tonnes of cargo
and mail. We also completed transportation for emergency rescue,
disaster relief, and major transport tasks many times, making positive
contributions to the economic development, reform, prosperity,
and stability of the Tibet Autonomous Region.
6.6.2 Bringing Warmth to Communities
Guaranteeing for children with congenital heart disease to seek
medical treatment
In August, Air China worked closely with the Chinese Red Cross Foundation
and the paired-up assistance team of the Ministry of Finance to
successfully transport a total of 100 children with congenital heart
disease and their families from Tibet, Guizhou, and Yunnan to Zhengzhou
and Beijing for treatment respectively. The departments of Air China
coordinated the air and ground operations, providing meticulous
and thoughtful service to the children and their families.
Guaranteeing injured passengers to return to China for treatment
In September, an employee of a Chinese company in Jakarta accidentally
cut off his wrist during a production operation and was in urgent
need of treatment. The Southwest Branch of Air China, together with
the Jakarta Business Department, as well as border defense, customs
and relevant departments provided the necessary support and assistance,
ultimately the patient received the medical treatment in time.
Supporting the earthquake relief work
On September 5, a magnitude 6.8 earthquake struck Luding County
in the Ganzi Tibetan Autonomous Region of Sichuan Province, causing
significant casualties and property damage. To support the earthquake
relief and post-disaster reconstruction in the area, the Company
donated RMB 5 million.
Appendix
Outlook for 2023
Looking ahead to 2023, our focus will be on seeking progress
while maintaining stability, and implementing the new development
concept completely, accurately and comprehensively. We will serve
and integrate into the new development pattern, with a strong
emphasis on promoting high-quality development. We will also
prioritize efforts in critical areas such as safety production,
service quality, low-carbon development, and deepening of reforms.
We will actively assume social responsibility, take steps towards
becoming a world-class air transport enterprise at a faster speed.
Through these efforts, we hope to make contributions to build a
modern socialist country in all aspects.
Focusing on safety production. As safety is a prerequisite for
development, we should elevate our political stance and steadfastly
execute the aviation safety plan during the 14th Five-Year Plan
period. We will optimize the safety management system, strengthen
the safety management technology, and improve our risk
identification and response capability. We will strictly ensure the
fulfillment of safety responsibility, and resolutely safeguard the
bottom line of safety.
Enhancing aviation service quality. With the aim of creating
world-class products and service, we will establish a science-based
service standard system and create more innovative and attractive
service and products to cater to the travel needs of our
passengers. We will put in place an unblocked and efficient service
information system, and promote the high-quality development of Air
China's service.
Promoting green and low-carbon development. We will actively
strive for the "dual carbon" targets , promote energy conservation
and environmental management activities orderly, accelerate the
green transition of development methods, and take solid steps
toward green, circular, and low-carbon development.
Continuously deepening reforms. We will give full play to the
functions of all governance entities and work to make the
governance mechanism more mature and effective. We will enhance the
market-oriented operation and management mechanism, establish a
collaborative operation mechanism for legal affairs, risks,
internal control, and compliance management, and develop into a
world-class enterprise with top-notch governance.
Furthering digital transformation. We will continue to promote
digitalization-related initiatives, strengthen our top-level
design, and optimize our working mechanisms. We will ensure the
smooth flow of business, information and data, work to empower
business development with information technology, and promote the
value-based application of data, achieving high-quality development
of the Company.
Table of Major Indicators [9]
Indicators 2020 2021 2022
Total assets (RMB million) 284,071 298,415 295,011
----------------- ----------------- -----------------
Total actual tax paid
during this year (RMB
million) 2,905 3,339 3,223
----------------- ----------------- -----------------
Number of registered
aircraft (unit) 707 746 762
----------------- ----------------- -----------------
Average aircraft age
(years) 7.74 8.23 8.59
----------------- ----------------- -----------------
Safe flight hours (1,000
hours) 1,553.0 1,590 .2 1,031.8
----------------- ----------------- -----------------
RTK (million tonnes
kilometres) 13,285 13,599 8,740
----------------- ----------------- -----------------
Passenger carried (million
passengers) 69 69 39
----------------- ----------------- -----------------
Cargo and mail carried
(1,000 tonnes) 1,113.7 1,186.7 844.1
----------------- ----------------- -----------------
Purchase from the five
largest suppliers (RMB
million) 17,705 17,852 24,598
----------------- ----------------- -----------------
Passengers' overall
satisfaction (points) 83.0 84.7 87.5
----------------- ----------------- -----------------
Premium passengers'
overall satisfaction
(points) 82.1 85.2 87.6
----------------- ----------------- -----------------
Ground service satisfaction (points) 81.5 83.2 84.9
----------------- ----------------- -----------------
Ticket service satisfaction (points) 86.2 88.3 89.8
----------------- ----------------- -----------------
Cabin service satisfaction (points) 81.4 83.5 85.7
----------------- ----------------- -----------------
International baggage error rate (pieces/1000
person-times) 1.31 1.76 1.56
----------------- ----------------- -----------------
Domestic baggage error rate (pieces/1000 person times) 0.26 0.2 0.2
----------------- ----------------- -----------------
Total number of passenger
complaint cases from
all channels (cases) 12,401 15,793 14,787
----------------- ----------------- -----------------
Passenger complaint
handling rate (%) 100 100 100
----------------- ----------------- -----------------
Flight on - time performance
(%) 89.15 88.96 95.45
----------------- ----------------- -----------------
Flight execution rate
(%) 98.90 99.03 99.2
----------------- ----------------- -----------------
Total energy consumption
(1,000 tonnes standard
coal) 6,967 7,151 4,63 1
----------------- ----------------- -----------------
Aviation fuel consumption
(1,000 tonnes) 4,693 4,813 3,102
----------------- ----------------- -----------------
Power consumption (MWh) 184,219.9 214,229.6 227,952.3
----------------- ----------------- -----------------
Gasoline consumption
(tonnes) 2,367.5 2,336.6 1,708.8
----------------- ----------------- -----------------
Diesel consumption
(tonnes) 5,972.1 5,565.4 3,945.5
----------------- ----------------- -----------------
Natural gas consumption
(1,000 m(3)) 13,554 15,100 16,105
----------------- ----------------- -----------------
Thermal power (MKJ) 258,610.4 311,688.4 251,909.3
----------------- ----------------- -----------------
Other energy consumption
(tonnes standard coal) 1.5 0.6 6.4
----------------- ----------------- -----------------
Fuel consumption intensity
(kg/ton-km) 0.356 0.357 0.358
----------------- ----------------- -----------------
CO(2) emissions (1,000
tonnes) 15,044 15,442 10 ,053
----------------- ----------------- -----------------
CO(2) emission intensity
(g/tonne-km) 1,121.2 1,124.7 1,126.5
----------------- ----------------- -----------------
Total hazardous waste
emissions (tonnes) 799.9 1,089.1 1,112.4
----------------- ----------------- -----------------
Water consumption in
the offices (1,000
tonnes) 4,399 4,905 4,531
----------------- ----------------- -----------------
Water consumption intensity
in the offices (tonnes/person) 49 56 52
----------------- ----------------- -----------------
Environmental protection
investment (RMB1,000) 204,756 467,798 244,159
----------------- ----------------- -----------------
Number of employees
on the post (persons) 89,373 88,395 87,190
----------------- ----------------- -----------------
Labour contract signing
rate (%) 100 100 100
----------------- ----------------- -----------------
Proportion of employees
guaranteed by collective
bargaining agreements
(%) 100 100 100
----------------- ----------------- -----------------
Social insurance coverage
(%) 100 100 100
----------------- ----------------- -----------------
Work-related deaths
(persons) 1 0 1
----------------- ----------------- -----------------
Proportion of employees
who died due to work
(%) 0.001 0 0.001
----------------- ----------------- -----------------
HKEX ESG Indicator Index
I ndicator Details P age No.
============ ==================================== ==================================================================
Mandatory disclosure requirements
Governance Structure
A disclosure of the board's oversight of ESG P4
issues;
------------------------------------------------------------------
The board's ESG management approach and strategy, P4
including the process used to evaluate,
prioritise
and manage material ESG-related issues (including
risks to the issuer's businesses); and
------------------------------------------------------------------
How the board reviews progress made against P4
ESG-related
goals and targets with an explanation of how they
relate to the issuer's businesses.
------------------------------------------------------------------
Reporting Boundary
A narrative explaining the reporting boundaries P1
of
the ESG report and describing the process used to
identify which entities or operations are
included
in the ESG report. If there is a change in the
scope,
the issuer should explain the difference and
reason
for the change.
------------------------------------------------------------------
"Comply or explain" provisions
A. Environmental
Aspect A1: Emissions
General Disclosure P38-P41
------------------------------------------------------------------
A1.1 The types of emissions and P37 P38-P40
respective emissions For complete emission
data. types and related
emission data,
please refer to
Chapter 5, Environmental
and Social Responsibility,
of the Annual Report
2022 of Air China.
------------------------------------ ------------------------------------------------------------------
A1.2 Direct (Scope 1) and energy P37
indirect (Scope
2) greenhouse gas emissions (in
tonnes)
and, where appropriate, intensity
(e.g.
per unit of production volume, per
facility).
------------------------------------ ------------------------------------------------------------------
A1.3 Total hazardous waste produced (in P40
tonnes)
and, where appropriate, intensity
(e.g.
per unit of production volume, per
facility).
------------------------------------ ------------------------------------------------------------------
A1.4 Total non-hazardous waste produced P39
(in Non-hazardous waste
tonnes) and, where appropriate, statistics only
intensity include domestic
(e.g. per unit of production kitchen waste.
volume, per
facility).
------------------------------------ ------------------------------------------------------------------
A1.5 Description of emissions target(s) P38-P41
set
and steps taken to achieve them.
------------------------------------ ------------------------------------------------------------------
A1.6 Description of how hazardous and P39-P41
non-hazardous
wastes are handled, and a
description of
reduction target(s) set and steps
taken
to achieve them.
------------------------------------ ------------------------------------------------------------------
Aspect A2: Use of Resources
General Disclosure P41-P43
------------------------------------------------------------------
A2.1 Direct and/or indirect energy P68-P69
consumption
by type (e.g. electricity, gas or
oil)
in total (kWh in '000s) and
intensity (e.g.
per unit of production volume, per
facility).
------------------------------------ ------------------------------------------------------------------
A2.2 Water consumption in total and P69
intensity
(e.g. per unit of production
volume, per
facility).
------------------------------------ ------------------------------------------------------------------
A2.3 Description of energy use P41-42 P43
efficiency target(s)
set and steps taken to achieve
them.
------------------------------------ ------------------------------------------------------------------
A2.4 Description of whether there is any P42
issue
in sourcing water that is fit for
purpose,
water efficiency target(s) set and
steps
taken to achieve them.
------------------------------------ ------------------------------------------------------------------
A2.5 Total packaging material used for Not applicable.
finished Air China's business
products (in tonnes) and, if does not involve
applicable, manufacturing.
with reference to per unit
produced.
------------------------------------ ------------------------------------------------------------------
Aspect A3: The Environment and Natural Resources
General Disclosure P43
------------------------------------------------------------------
A3.1 Description of the significant P43-P44
impacts
of activities on the environment
and natural
resources and the actions taken to
manage
them.
------------------------------------ ------------------------------------------------------------------
Aspect A4: Climate Change
General Disclosure P33
------------------------------------------------------------------
A4.1 Description of the significant P32-P38
climate-related
issues which have impacted, and
those which
may impact, the issuer, and the
actions
taken to manage them.
------------------------------------ ------------------------------------------------------------------
B. Social
Aspect B1: Employment
General Disclosure P 54
------------------------------------------------------------------
B1.1 Total workforce by gender, P54-55
employment type
(for example, full- or parttime),
age group
and geographical region.
------------------------------------ ------------------------------------------------------------------
B1.2 Employee turnover rate by gender, P55
age group
and geographical region.
------------------------------------ ------------------------------------------------------------------
Aspect B2: Health and Safety
General Disclosure P57-P58
------------------------------------------------------------------
B2.1 Number and rate of work-related P69
fatalities
occurred in each of the past three
years
including the reporting year.
------------------------------------ ------------------------------------------------------------------
B2.2 Lost days due to work injury. P57
------------------------------------ ------------------------------------------------------------------
B2.3 Description of occupational health P57-P58
and
safety measures adopted, and how
they are
implemented and monitored.
------------------------------------ ------------------------------------------------------------------
Aspect B3: Development and Training
General Disclosure P56 P77
------------------------------------------------------------------
B3.1 The percentage of employees trained P56
by
gender and employee category (e.g.
senior
management, middle management).
------------------------------------ ------------------------------------------------------------------
B3.2 The average training hours P56
completed per
employee by gender and employee
category.
------------------------------------ ------------------------------------------------------------------
Aspect B4: Labour Standards
General Disclosure P53
------------------------------------------------------------------
B4.1 Description of measures to review P53
employment
practices to avoid child and forced
labour.
------------------------------------ ------------------------------------------------------------------
B4.2 Description of steps taken to P53
eliminate
such practices when discovered.
------------------------------------ ------------------------------------------------------------------
Aspect B5: Supply Chain Management
General Disclosure P49
------------------------------------------------------------------
B5.1 Number of suppliers by geographical P49-P50
region.
------------------------------------ ------------------------------------------------------------------
B5.2 Description of practices relating P49-P50
to engaging
suppliers, number of suppliers
where the
practices are being implemented,
and how
they are implemented and monitored.
------------------------------------ ------------------------------------------------------------------
B5.3 Description of practices used to P49-P50
identify
environmental and social risks
along the
supply chain, and how they are
implemented
and monitored.
------------------------------------ ------------------------------------------------------------------
B5.4 Description of practices used to P49-P50
promote
environmentally preferable products
and
services when selecting suppliers,
and
how they are implemented and
monitored.
------------------------------------ ------------------------------------------------------------------
Aspect B6: Product Responsibility
General Disclosure P45-P48
------------------------------------------------------------------
B6.1 Percentage of total products sold Not applicable.
or shipped Air China's business
subject to recalls for safety and does not involve
health production.
reasons.
------------------------------------ ------------------------------------------------------------------
B6.2 Number of products and service P48
related
complaints received and how they
are dealt
with.
------------------------------------ ------------------------------------------------------------------
B6.3 Description of practices relating P53
to observing
and protecting intellectual
property rights.
------------------------------------ ------------------------------------------------------------------
B6.4 Description of quality assurance P45-P46
process
and recall procedures.
------------------------------------ ------------------------------------------------------------------
B6.5 Description of consumer data P48
protection
and privacy policies, and how they
are
implemented and monitored.
------------------------------------ ------------------------------------------------------------------
Aspect B7: Anti-corruption
General Disclosure P24-P25
------------------------------------------------------------------
B7.1 Number of concluded legal cases P24
regarding
corrupt practices brought against
the issuer
or its employees during the
reporting period
and the outcomes of the cases.
------------------------------------ ------------------------------------------------------------------
B7.2 Description of preventive measures P24-P25
and
whistle-blowing procedures, and how
they
are implemented and monitored.
------------------------------------ ------------------------------------------------------------------
B7.3 Description of anti-corruption P25
training
provided to directors and staff.
------------------------------------ ------------------------------------------------------------------
Aspect B8: Community Investment
General Disclosure P60
------------------------------------------------------------------
B8.1 Focus areas of contribution (e.g. P60-P65
education,
environmental concerns, labour
needs, health,
culture, sport).
------------------------------------ ------------------------------------------------------------------
B8.2 Resources contributed (e.g. money P60
or time)
to the focus area.
------------------------------------ ------------------------------------------------------------------
GRI Index
Report Contents GRI Standards Benchmarking
About this Report 2-2 2-3 2-4
-----------------------------
Chairman's Statement 2-22
-----------------------------
Board of Directors ESG Statement 2-9 2-11 2-22
-----------------------------
Air China 2-1
-----------------------------
Creating Social Value 2-6
-----------------------------
Sustainable
Development Governance 2-9 2-10 2-11 2-12 2-13
Management System Board of Directors 2-14 2-16 2-17 2-18
------------------------ --------------------------- -----------------------------
General Meetings 2-9 2-10 2-11 2-12 2-13
of Shareholders 2-14 2-16 2-17 2-18
---------------------------------------------------------------------- -----------------------------
2-9 2-10 2-11 2-12 2-13
Board of Supervisors 2-14 2-16 2-17 2-18
---------------------------------------------------------------------- -----------------------------
Social Responsibility Social Responsibility
Management Management Framework 2-9 2-11 2-12 2-14
------------------------ --------------------------------------------- -----------------------------
Stakeholder Communication 2-16 2-29 3-1
---------------------------------------------------------------------- -----------------------------
Disclosure Principles 3-1 3-2 3-3
---------------------------------------------------------------------- -----------------------------
Guidance of Party Building -
----------------------------------------------------- -----------------------------
Comprehensive
Risk Management Risk Management 2-24
------------------------ --------------------------------------------- -----------------------------
Internal Control -
Management
------------------------ --------------------------- -----------------------------
Internal Audit -
--------------------------- -----------------------------
Corporate Compliance 2-26 206-1
---------------------------------------------------------------------- -----------------------------
Anti-corruption and Business
Ethics 205-2 205-3 206-1
----------------------------------------------------- -----------------------------
Safety
Development Safety Management 403-8 416-1
----------------------------------------------------- -----------------------------
Safety Culture 3-2 403-5 416-1 416-2
----------------------------------------------------- -----------------------------
Safety Training 3-2 403-5 416-1
----------------------------------------------------- -----------------------------
Green Improvement of Environmental
Operations Management System 2-12 2-13
----------------------------------------------------- ---------------------------
Addressing
Climate Change Climate Governance 201-2
------------------------ --------------------------------------------- ---------------------------
Our Strategy 201-2
---------------------------------------------------------------------- ---------------------------
Risk Management 201-2
---------------------------------------------------------------------- ---------------------------
Our Goals 305-1 305-2 305-4 305-5
---------------------------------------------------------------------- ---------------------------
Our Actions 201-2
---------------------------------------------------------------------- ---------------------------
Emissions Management Waste Gases Management 305-7
------------------------ --------------------------------------------- -----------------------------
Wastewater Management 303-4 303-5 306-5
---------------------------------------------------------------------- -----------------------------
Waste Management 306-2 306-4
---------------------------------------------------------------------- -----------------------------
Noise Management -
------------------------ --------------------------- -----------------------------
Energy Saving
and Consumption
Use of Resources Reduction Management 302-1 302-2 302-4
------------------------ --------------------------------------------- -----------------------------
Water Management 303-1 303-2
---------------------------------------------------------------------- -----------------------------
Energy Use Management 302-1 302-2 302-4
---------------------------------------------------------------------- -----------------------------
Material Management 301-2 301-3 304-3
---------------------------------------------------------------------- -----------------------------
Biodiversity Conservation 304-1 304-2
----------------------------------------------------- -----------------------------
Corporate Green Responsibility 304-1 304-3
----------------------------------------------------- ---------------------------
Product Service Quality
Responsibility Quality Service Management 3-1 3-2
------------------------ --------------------------- -----------------------------
Sincere Service 416-1 417-1 418-1
---------------------------------------------------------------------- -----------------------------
Quality Management
Responsible of the Supply 2-6 2-24 204-1 308-1 308-2
Supply Chain Chain 414-1 414-2
------------------------ --------------------------------------------- -----------------------------
Compliance Management
of the Supply 2-9 204-1 308-1 308-2
Chain 414-1 414-2
---------------------------------------------------------------------- -----------------------------
Coordinated Development of
the Aviation Industry 2-9 2-28 3-2
----------------------------------------------------- -----------------------------
Digital Transformation Building a Digital -
Ecology
------------------------ --------------------------- -----------------------------
Technological Innovation Laboratory -
Innovation
------------------------ --------------------------- -----------------------------
Innovative Measures -
------------------------ --------------------------- -----------------------------
Intellectual -
Property Rights
Protection
------------------------ --------------------------- -----------------------------
2-7 2-8 2-30 401-1 401-2
Employee Remuneration 401-3 405-1 406-1 408-1
Development Equal Employment and Benefits 409-1
------------------------ --------------------------- -----------------------------
Performance Appraisal
System 401-3
---------------------------------------------------------------------- -----------------------------
Democratic Management 407-1
---------------------------------------------------------------------- -----------------------------
Employee Service 401-2
---------------------------------------------------------------------- -----------------------------
Training and Training System
Development Construction 404-1 404-2 404-3
------------------------ --------------------------------------------- -----------------------------
Career Development 404-2
---------------------------------------------------------------------- -----------------------------
Occupational Engaging in Occupational 403-1 403-2 403-3 403-4
Health and Disease Prevention 403-5 403-6 403-7 403-8
Safety and Control 403-9 403-10
------------------------ --------------------------------------------- -----------------------------
Incentives Advanced Model -
and Care and Innovation
------------------------ --------------------------- -----------------------------
Caring for Employee
Life 203-1
---------------------------------------------------------------------- -----------------------------
Public
Welfare Rural Revitalization 203-1
----------------------------------------------------- -----------------------------
Territorial Assistance 203-1
----------------------------------------------------- -----------------------------
Volunteer Activities 203-1
----------------------------------------------------- -----------------------------
Supporting the Community 203-1
----------------------------------------------------- ---------------------------
Appendix Outlook for 2023 2-22
----------------------------------------------------- -----------------------------
Table of Major Indicators -
----------------------------------------------------- -----------------------------
HKEX ESG Indicator Index -
----------------------------------------------------- -----------------------------
Major Laws, Regulations and
Corporate Policies 2-23
----------------------------------------------------- -----------------------------
Third-Party Assurance 2-5
----------------------------------------------------- -----------------------------
Feedback Collection 2-29
----------------------------------------------------- -----------------------------
Major Laws, Regulations and Corporate Policies
ESG Indicator Applicable Laws and Regulations Corporate Policies
A1 Law of the People's Republic Wastewater Discharge Management
Emissions of China on the Prevention Procedures
and Control of Air Pollution Exhaust Emissions Management
Law of the People's Republic Procedures
of China on the Prevention Noise Emissions Management
and Control Noise Pollution Procedures
Law of the People's Republic Solid Waste Management Procedures
of China on the Prevention Oils and Chemicals Management
and Control of Water Pollution Procedures
Law of the People's Republic Carbon Emissions Management
of China on the Prevention Implementation Rules
and Control of Environment Waste Disposal Management
Pollution Caused by Solid Procedures
Wastes Special Emergency Response
Integrated Emission Standard Plan for Hazardous Waste
of Air Pollutants Accidents Notice on Promoting
Standard for Pollution Plastic Pollution Control
Control on the Municipal in Offices
Solid Waste Incineration Environmental Standard of
Integrated Emission Standard Aircraft Noise around the
of Water Pollutants Airport
Regulation on Urban Drainage
and Sewage Treatment
Technical Policy on the
Prevention and Control
of Pollution Caused by
Hazardous Waste
Provisions on the Administration
of Urban Construction
Garbage
------------------------------------------ -----------------------------------------
A2 Water Law of the People's Water Use Management Regulations
Use of Resources Republic of China Energy Conservation and
Energy Conservation Law Emission Reduction Management
of the People's Republic Manual
of China
Measures for the Administration
of Energy Conservation
of Major Energy-Consuming
Entities
------------------------------------------ -----------------------------------------
A3 Environmental Protection Air China's Environmental
Environment Law of the People's Republic Management Manual
and Natural of China Special Emergency Response
Resources Law of the People's Republic Plan for
of China on Environmental Environmental Emergencies
Impact Assessment Special Emergency Response
Law of the People's Republic Plan for Water Pollution
of China on Water and Accidents
Soil Conservation Special Emergency Response
Plan for Air Pollution Accidents
Special Emergency Response
Plan for Hazardous Waste
Accidents
Special Emergency Response
Plan for Radiation Accidents
Energy Conservation and
Environmental Protection
Responsibility Letters
------------------------------------------ -----------------------------------------
A4 The 14th Five-Year Special Three-Year Action Plan for
Climate Change Plan for Green Development Winning the Blue Sky Defence
The 14 Five-Year Plan War
China's Policies and Special Action for Plastic
Actions for Addressing Pollution Control (2021-2025)
Climate Change (2022) The 14th Five-Year Plan
Working Guidance for for Green Development
Carbon Dioxide Peaking Administrative Measures
and Carbon Neutrality for Energy Conservation and
in Full and Faithful Ecological Environmental
Implementation Protection
of the New Development Detailed Implementation
Philosophy Rules for Energy Conservation
Notice by the State Council and Environmental Protection
of the Action Plan for Education and Training
Carbon Dioxide Peaking Detailed Implementation
Before 2030 Rules for the Management
of Special Funds for Energy
Conservation and Ecological
Environmental Protection
Conservation
Emission Reduction and Ecological
Environmental Protection
Measures for Assessment
of Energy Conservation and
Ecological Environmental
Protection and Relevant Rewards
and Punishments
Action Plan for Peaking
Carbon Emissions
Air China's Work Plan for
Green Development in 2022
------------------------------------------ -----------------------------------------
B1 Labour Law of the People's Administrative Regulations
Employment Republic of China on Employee Recruitment
Labour Contract Law of Collective Contract
the People's Republic Special Collective Contract
of China for the Protection of Female
Employment Promotion Employees' Rights and Interests
Law of the People's Republic Administration Regulations
of China on the Labor Contract System
Employee Post
Performance Management Measures
------------------------------------------ -----------------------------------------
B2 Labour Law of the People's Special Collective Contract
Health and Republic of China on Occupational Safety and
Safety Law of the People's Republic Health
of China on the Prevention Occupational Health and
and Control of Occupational Safety Management Manual
Diseases Management Regulations on
Civil Aviation Law of Labor Protection Supplies
the People's Republic Flight Inspector Workbook
of China Flight Instructor's Manual
Work Safety Law of the Management Regulations on
People's Republic of China Occupational Disease Prevention
Emergency Response Law and Control
of the People's Republic
of China
Anti-Terrorism Law of
the People's Republic
of China
Fire Protection Law of
the People's Republic
of China
------------------------------------------ -----------------------------------------
B3 Training Management Manual
Development Guidelines on Talent Work
and Training
------------------------------------------ -----------------------------------------
B4 Labour Law of the People's Employee Code of Conduct
Labour Standards Republic of China Punishment Regulations for
Labour Contract Law of Violation of Labour Discipline
the People's Republic Regulations on Medical Period
of China and Treatment for Employees
Employment Promotion Regulations on Attendance
Law of the People's Republic Management
of China Regulations on Internship
and Employment Probation
Management
------------------------------------------ -----------------------------------------
B5 Bidding Law of the People's Procurement Management
Supply Chain Republic of China Regulations
Management Regulations on the Implementation Procurement System Document
of the Bidding Law of Management Regulations
the People's Republic Procurement Plan Management
of China Regulations
Standard Procurement Management
Regulations
Supplier Management Regulations
Emergency Procurement Management
Regulations
Procurement Project Documents
and Materials Filing Management
Regulations
Procurement Business Inspection
Management Regulations
Procurement Review Management
Regulations
Procurement Management Platform
Operation Management Regulations
(Interim)
Measures for the Management
of Suppliers with Bad Behaviors
(Interim), etc.
Supplier Self-Assessment
Questionnaire on the Compliance
with Social Standards
Small Amount Procurement
Code of Practice (Interim)t
------------------------------------------ -----------------------------------------
B6 Civil Aviation Law of Operation Manual
Product Responsibility the People's Republic Aviation Safety Management
of China Manual
Regulations on the Operation Pilot Training Outline
Certification of Large Flight Training Management
Aircraft Public Air Transport Manual
Carriers Dangerous Goods Transportation
Civil Aircraft Pilot Safety Management Manual
Certification Rules Maintenance Engineering
Several Policies and Management Manual
Measures on Controlling Emergency Response Manual
the Total Operational Response Management Procedures
Volume Adjusting the Flight for Safety Emergencies (for
Structure and Improving Trial Implementation)
the Flight Punctuality Service Quality Management
Rate Manual
Cyber Security Law of Special Passenger Service
the People's Republic Standards
of China Passenger Personal Information
Personal Information Management Regulations
Protection Law of the (Provisional)
People's Republic of China General Conditions of Passenger
Key Information Infrastructure Baggage Transportation
Security Protection Regulations Digital Transformation Action
General Data Protection Plan (2022-2025)
Regulation (GDPR) Special Implementation Plan
Guiding Opinions on Promoting for the Digital Transformation
High-quality Development Action Plan
of Intellectual Property Regulations on Data Management
Work of Central Enterprises Regulations on the Management
Regulations on the Administration of Legal Affairs
of Public Air Transport Measures on the Management
Passenger Service of Intellectual Property
Guidelines for the Construction Rights
of a Quality Management
System for Public Air
Transport Passenger Service
------------------------------------------ -----------------------------------------
B7 Criminal Law of the People's Compliance Management Regulations
Anti-corruption Republic of China Compliance Code of Conduct
Company Law of the People's Management Measures for
Republic of China Overseas Compliance
Anti-Money Laundering Overseas Compliance Training
Law of the People's Republic Manual (Chinese and English
of China versions)
Anti-Unfair Competition Management Measures for
Law of the People's Republic Audit and Rectification Tracking
of China Anti-commercial Bribery
Interim Provisions on Compliance Manual (2022 Edition)
Prohibition of Commercial List of Enterprises Prohibited
Bribery from Transactions (2022)
Anti-Monopoly Law of
the People's Republic
of China
Bidding Law of the People's
Republic of China
Surveillance Law of the
People's Republic of China
------------------------------------------ -----------------------------------------
B8 Charity Law of the People's Administrative Measures
Community Investment Republic of China for External Donations
Winter Olympics Flight Operation
Guarantee Work Plan
Implementation Opinions
on Practicing Targeted Assistance
Work
Articles of Association
of Chinese Youth Volunteers
Association
Regulations on Youth Volunteer
Service
Administrative Measures
for Volunteer Teaching Program
of "Air China Blue Sky Classroom"
"Air China Blue Sky Classroom"
Volunteer Teaching Plan
(2021-2023)"
------------------------------------------ -----------------------------------------
Third-Party Assurance
ASSURANCE STATEMENT
SGS-CSTC'S REPORT ON SOCIAL RESPONSIBILITY MANAGEMENT IN THE
CORPORATE SOCIAL RESPONSIBILTY REPORT OF AIR CHINA LIMITED FOR
2022
NATURE AND SCOPE OF THE ASSURANCE/VERIFICATION
SGS-CSTC was commissioned by the Air China Limited (thereafter
as " Air China ") to conduct an independent assurance of the
Chinese version of Air China's Corporate Social Responsibility
Report for 2022 (hereinafter called "the Report").
INTED USERS OF THIS ASSURANCE STATEMENT
This Assurance Statement is provided with the intention of
informing all Air China`s Stakeholders.
RESPONSIBILITIES
The information in the Report and its presentation are the
responsibility of the directors and the management of Air
China.
Our responsibility is to express an opinion on the text, data,
graphs and statements within the scope of verification with the
intention to inform all Air China's stakeholders.
ASSURANCE STANDARDS, TYPE AND LEVEL OF ASSURANCE
The SGS ESG & Sustainability Report Assurance protocols used
to conduct assurance are based upon internationally recognized
assurance guidance and standards, which including:
-- The principles of reporting process contained within the
Global Reporting Initiative Sustainability Reporting Standards (GRI
Standards) as:
o GRI 1: Foundation 2021, for report quality
o GRI 2: General Disclosure 2021, for organization's reporting
practices and other organizational detail
o GRI 3: Material Topics 2021, for organiz ation's process of
determining material topics, its list of material topics and how to
manages each topic
-- and the guidance on levels of assurance contained within the AA1000 series of standards.
The assurance of the Report has been conducted according to the
following Assurance Standards:
-- SGS ESG & SRA verification regulations (Refer to GRI Principles and AA1000 Guides)
The Assurance has been conducted at a moderate (limited) level
of scrutiny.
SCOPE OF ASSURANCE AND REPORTING CRITERIA
The scope of the assurance included evaluation of quality,
accuracy and reliability of specified performance information as
detailed below, and evaluation of adherence to the following
reporting criteria:
Reporting Criteria
1 The <Environmental, Social and Governance Reporting Guide>
by HKEX
-----------------------------------------------------------
2 GRI Standards 2021(Reference)
-----------------------------------------------------------
3 Shanghai Stock Exchange Self-Regulatory Guidelines for
Listed Companies on the Shanghai Stock Exchange No. 1
- Standardized Operation
-----------------------------------------------------------
ASSURANCE METHODOLOGY
The assurance comprised a combination of pre-assurance research,
on-site interviews with relevant employees including the Air Chin
head-office, which is located in the 30 Tianzhu Road, Airport
Industrial Zone, Shunyi District, Beijing, P.R. China.
Documentations and records were reviewed and validated with
relevant employees of the other subsidiaries as necessary.
LIMITATIONS AND MITIGATION
The financial data drawn directly from the third independently
audited has not been checked back to source as part of this
assurance process.
The on-site verification was only at the Air China head-office,
relevant data and information traceability were only focused on the
group level.
This verification only conducted interviews with staff of Air
China and access to relevant materials, and external stakeholders
were not involved.
STATEMENT OF INDEPENCE AND COMPETENCE
SGS is the world`s leading inspection, verification, testing and
certification company, SGS is recognized as the global benchmark
for quality and integrity. SGS is a global leader in inspection,
testing and verification, operating in more than 140 countries/
areas, providing services including management systems and service
certification; quality, environmental, social and ethical audits
and training; environmental, social and sustainability report
assurance. SGS affirms that it is a completely independent
organization from Air China, and that there is no bias or conflict
of interest against Air China, its affiliates and stakeholders.
The assurance team was assembled based on their knowledge,
experience and qualifications for this assignment, and comprised of
CCAA registered ISO 9001, ISO 14001 and ISO 45001 auditor, SGS
recognized ISO37001 and CSR/ESG lead auditor.
VERIFICATION/ASSURANCE OPINION
On the basis of the methodology described and the verification
work performed, nothing has come to our attention that causes us to
believe that the specified performance information in The Report of
Air China included in the scope of assurance is not fairly stated
and has not been prepared, in all material respects, in accordance
with the reporting criteria.
THE CONCLUSIONS, FINDINGS AND RECOMMATIONS
In our opinion, The Report of Air China for 2022 is presented in
accordance with the Introduction and Mandatory Disclosure
Requirements of the < Environmental, Social and Governance
Reporting Guide > in the appendix 27 of the < Rules Governing
the Listing of Securities on the HKEX>.
REPORT PRICIPLES
MATERIALITY
The substantive research and the analysis of stakeholders'
concerns had been disclosed in The Report, the impact of the
environment, society and governance concerned by relevant parties
is reported on a key basis through materiality analysis, which
matched with the principle of materiality.
QUANTITATIVE
Air China had provided statistics and analysis on key
quantitative performance indicators and outlined their impact and
purpose in the Report. The report compared data from most of key
performance projects over the past three years to assist
stakeholders in evaluating their management performance better.
BALANCE
The Report basically matched with the principle of balance, the
environment, social and governance subjects had been disclosed
truthfully and impartially.
CONSISTENCY
A consistent methodology for disclosing relevant subject had
been used by Air China, including statistical methodology and
caliber for key quantitative performance indicators, some
appropriate notes and explanations had been provided in the Report,
so that the stakeholders can make clear comparisons.
MANAGEMENT APPROACH
The Report had disclosed the management approach of the
applicable subject in the < Environmental, Social and Governance
Reporting Guide >.
GENERAL DISCLOSURE
The Air China`s disclosure of applicable subject in the Report
matches with the requirements of general disclosure of
<Environmental, Social and Governance Reporting Guide>.
KEY PERFORMANCE INDICATOR DISCLOSURE
Air China had disclosed the key performance indicators about the
economic, environmental, and social subject which applicable to the
<Environmental, Social and Governance Reporting Guide>.
DISCOVERY AND RECOMMENDATIONS
The good practices, findings and recommendations for continuous
improvement were presented in the SGS internal management report
and were submitted to Air China.
Signed:
For and on behalf of SGS-CSTC
David Xin Director
Country Headquarter 16/F Century Yuhui Mansion, No.73, Fucheng
Road, Beijing, China
Mar. 28(th) , 2023
WWW.SGS.COM
Feedback Collection
Dear reader,
Thanks for reading the 2022 Social Responsibility Report of Air
China Limited, which is the fifteenth social responsibility report
published by Air China. You are welcomed to provide us with your
comments and suggestions on this report for consideration and
adoption, enabling us to make continuous improvement in future
report preparation and to improve our corporate social
responsibility management and practice. We look forward to your
valuable comments and suggestions.
1. Do you think the overall report is satisfactory?
Excellent Good Fair Poor
2. Did the report provide all information you are concerned
about?
Excellent Good Fair Poor
3. Do you think the report has faithfully reflected the
performance of Air China in respect of creating economic value,
social value and environmental value and fulfilling social
responsibility?
Excellent Good Fair Poor
4. Can you access the information you are concerned about in a
convenient way?
Excellent Good Fair Poor
5. Do you think the information disclosed in the report is
accurate, clear and complete?
Excellent Good Fair Poor
6. Do you have any comment or suggestion to our social
responsibility work and social responsibility report in the
future?
The safety training data covers Air China, Beijing Airlines,
Dalian Airlines and Inner Mongolia Airlines.
[2] 1. GHG emissions data of Air China and its subsidiaries
covers those from Air China, Shenzhen Airlines, Kunming Airlines,
Dalian Airlines, Inner Mongolia Airlines, Beijing Airlines, and
Ameco.
2. The Interim Measures for the Management of Carbon Dioxide
Emissions Monitoring, Reporting and Verification of Civil
Aviation
Flight Activities (CAAC Regulations [2018] No. 3) was adopted as
the aviation fuel calculation standard.
3. The Beijing Carbon Emission Unit Carbon Dioxide Emissions
Accounting and Reporting Guidelines released by the Beijing
Municipal Ecology and Environment Bureau was used as the ground
energy calculation standard.
4. Scope I is CO2 emissions from the burning of fossil fuels,
and Scope II is CO2 emissions from the use of electricity and
heat.
[3] Domestic waste data does not include kitchen waste derived
from in-flight meals.
[4] The reported hazardous waste emissions relates to Ameco's
hazardous waste emissions only.
[5] APU refers to the Auxiliary Power Unit
[6] The flight regularity data covers that from Air China,
Beijing Airlines, Dalian Airlines and Inner Mongolia Airlines.
[7] Data relating to passenger complaints, satisfaction and
luggage loss rates cover those from Air China, Beijing Airlines,
Dalian Airlines and Inner Mongolia Airlines.
[8] Employee training data in 2022 covers Air China and its
major subsidiaries of Beijing Airlines, Dalian Airlines and Inner
Mongolia Airlines.
[9] 1. The financial, operational, and employee data of the past
three years are consistent with those of the annual report.
2. The service data comes from Air China, Dalian Airlines,
Beijing Airlines and Inner Mongolia Airlines. The Total number of
passenger complaint cases from all channels includes complaints
received by the Company and transferred by the CAAC.
3. Energy consumption data includes greenhouse gas emissions
from Air China and its subsidiaries, including Air China, Shenzhen
Airlines, Kunming Airlines, Dalian Airlines, Inner Mongolia
Airlines, Beijing Airlines, and Ameco. Hazardous waste emissions
only involve those from Ameco.
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END
STRDELBLXZLZBBL
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