Words from Chairman


Attaining Net Zero Emissions

chairman

The negative impact of climate change in recent years has drawn attention from international society, multinational enterprises, and local organizations and accelerated the global drive to achieve net zero emissions. Taiwan has joined the ranks of other countries, proclaimed in 2021 its goal to achieve net zero emissions by 2050, and passed the third reading of the "Climate Change Response Act" in 2023. As the leader of the domestic aviation industry, it is AIDC's responsibility to actively plan the pathway to carbon neutrality by 2050 with specific goals for each milestone. We set up the Carbon Neutrality Work Group of the ESG Committee to implement top-down energy conservation and carbon reduction, construction of solar PV equipment, and waste reduction plans to actively meet the challenges of net zero emissions.

Expanding into the Energy Market

Taiwan is committed to its energy transition to attain the goal of the international community for net zero emissions by 2050. The natural constraints of the renewable energy sources such as solar and wind energy have given rise to the rapid development of the energy storage market and fast-start power generation equipment. AIDC supports government policy and utilizes its capabilities to extend high-tech aerospace know-how to energy projects such as biogas power generation, energy storage systems, and gas turbine generators. AIDC began the operation of a 5MW energy storage system in 2021, and joined the Automatic Frequency Control (AFC) ancillary services of Taiwan Power Company (TPC) with excellent performance. The installation of the second and third energy storage system has been underway since 2022. Furthermore, AIDC collaborated with GE in the establishment projects of gas turbine generators, including the Tongxiao Power Plant of TPC, Yongan Plant of CPC Corporation, and Wuqi Plant of CPC Corporation. AIDC will be able to help even more domestic enterprises replace coal generators with gas generators. Subsequently, the experience and technologies accumulated through these projects will prepare us to build local repair capabilities for the gas turbine generators in Taiwan. We seek to stabilize the operational flexibility of the domestic grid and support national energy transition plans.

Creating Sustainable Value

As countries moved towards coexistence with the virus and relaxed border controls and as the global aviation industry gradually recovers, the AIDC insisted on "no layoffs, no pay cuts, and no unpaid leave" during the pandemic, so that manpower and production capacity could be preserved for the time when global market revived. We pay close attention to the interests of all stakeholders. With corporate governance, social responsibility, and environmentally friendliness as the three pillars of ESG implementation, we won recognition in the following areas in 2022 including the "4th National Enterprise Environmental Protection Award"; the Silver Award in the 2022 Energy Saving Benchmark Award of the Bureau of Energy, Ministry of Economic Affairs; ranked in the top 6-20% in the 9th "Corporate Governance Evaluation" for TWSE-listed companies; received the Gold medal for enterprises in the "Talent Quality-management System (TTQS)" and the Top 100 Sustainable Companies Award, Gold Award in the Corporate Sustainability Report Awards, Information Security Leadership Award, and Transparency and Integrity Leadership Award in the "2022 TCSA Taiwan Corporate Sustainability Awards". In terms of ESG information disclosure, we completed the CDP Climate Change Questionnaire for the first time, established the "Climate Change Risks and Opportunities Evaluation Procedures", completed the TCFD risks and opportunities profile and strategies, and disclosed the results in the Sustainability Report this year to enhance communication with stakeholders.

In the future, AIDC will focus on developing aerospace manufacturing businesses and continue to expand core technologies and energy to take part in the net zero emission market and create sustainable value. We will uphold the ESG values for promoting environmentally friendly development (E), positive cycles in the society (S), and sustainable governance (G), reduce carbon emissions, create a resilience company, continue to support social prosperity, embrace sustainability, and attain the United Nations Sustainable Development Goals (SDGs).

Chairman

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Hu, Kai-Hung