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1、3013011 1This report discloses the Companys ESG information between January 1 and December 31,2023.The scope of the Report encompasses 100%of the operating sites of the Chunghwa Telecom parent company;sections with a different scope of disclosure shall be noted.The content includes significant impac

2、ts,management approaches,key issues,and sustainability performance.For comprehensiveness,some content will reference 2022 or extend to 2024.This report is issued once a year.The last issue date was June 30,2023;the next issue date will be August 31,2025.Documentation and Internal AuditThe preparatio

3、n and assurance process for this report follows the Taiwan Stock Exchanges Regulations Governing the Preparation and Filing of Corporate Sustainability Reports by TWSE Listed Companies.It references the Global Reporting Initiative(GRI)Standards,including General,Sector,and Topic Standards,and framew

4、orks/guidelines relevant to our industry.The report covers material environmental,social,and economic topics identified across Chunghwa Telecoms operations.It includes management approaches,key issues,project performance,and reporting requirements,with performance indicators set for these significan

5、t topics.This process is integrated into our internal control system,with tasks divided and content reviewed.Internal audit personnel periodically assess compliance and compile audit reports to ensure the execution of the sustainability reports preparation and verification.If you have any feedback t

6、o share,please do not hesitate to contact us through:Unless otherwise specified,all currency units used in the financial data within this report are New Taiwan Dollars(NT$).Editorial PolicyWelcome to Chunghwa Telecom Co.,Ltd.s(TAIEX:2412;hereafter CHT or we)17th Sustainability Report.This report hig

7、hlights CHTs 2023 sustainability efforts and achievements,providing stakeholders with a comprehensive understanding of our sustainability performance.The report is available in both Chinese and English and can be downloaded from our Sustainability/ESG Website.More Sustainability Information:Reportin

8、g Period and ScopeFeedbackCorporate Communications Department,Chunghwa Telecom,Address:21-3,Sec.1,Xinyi Rd.,Zhongzheng Dist.,Taipei City,TaiwanTelephone:+886-2-2344-3699 Email:.twIssuing OrganizationItemThe Global Reporting Initiative,GRIGRI StandardsThe International Integrated Reporting Council,II

9、RCInternational FrameworkSustainability Accounting Standards Board,SASBTelecommunication Services Sustainability Accounting StandardTask Force on Climate-related Financial Disclosures,TCFDTCFD FrameworkThe Taskforce on Nature-related Financial Disclosures,TNFDTNFD FrameworkUN Global Compact10 Princi

10、plesTaiwan Stock Exchange Corporation Rules Governing the Preparation and Filing of Sustainability Reports by TWSE Listed Companies Industry Sustainability Disclosure Indicators-Communications and Internet Industry Climate-Related Information of TWSE/TPEx Listed CompanyReferences and GuidelinesAssur

11、anceThe contents and data of this report have been reviewed and assured by SGS Taiwan Ltd.based on the GRI Standards.The assurance results indicate that the contents,materiality analysis procedure,and material/key topics reported are consistent with the following standards,frameworks,and regulations

12、:GRI Standards(2021)and AA 1000 AS(2018)Type II High Assurance Standards International Framework Telecommunication Services Sustainability Accounting Standard S&P Global Corporate Sustainability Assessment(five applicable indicators only)Note:Information related to the Disclosure of Climate-related

13、Information for TWSE/TPEx-Listed Companies(including TCFD)and Sustainability Disclosure Metrics Communication Network Industry do not fall within the scope of assurance.ESG ReportSASB ReportTCFD ReportTNFD Report323Annual ESG Key StoryDigital Empowerment Brings the Advantages of Technology to AllIn

14、the digital era,Chunghwa Telecom sees itself as a friendly yet professional big brother committed to promoting equal access for all in Taiwan by connecting rural and disadvantaged communities to the outside world through advanced telecommunication technologies.We are bringing state-of-the-art techno

15、logy to remote locations such as Lanyu(Orchid Island)and opening the door to knowledge for disadvantaged students through our remote one-on-one afterschool tutoring services to cultivate young minds eager for knowledge.This is not just a solo introduction to technology but a symphony of love and phi

16、lanthropy.In a country where nearly all enjoy 5G coverage,the local indigenous community has long existed in a digital information void,as if the outside world were kept at bay by invisible angels.By building a digital bridge,we opened up endless opportunities for the islanders,and dreams that were

17、once too lofty no longer seem out of reach.In project after project,Chunghwa Telecom has sought to make life better for every user it serves,empowering them with digital technologies and spreading knowledge to even the remotest communities tucked away in the farthest reaches of Taiwans mountains.Our

18、 greatest reward is seeing children whose eyes glisten with new hope and knowledge,adults in their prime who are changing their lives for the better,and senior citizens who feel revitalized thanks to digital magic.We are not transforming technology;we are transforming humanity.Indeed,technology at i

19、ts core is designed to serve mankind.Chunghwa Telecom is committed to creating a better life for all through telecommunications technology and digital empowerment.323545GOVERNANCESTAKEHOLDERS ENGAGEMENTMATERIAL TOPICS AND IMPACTSChapter 7Chapter 4Chapter 3CONTENTSAppendixEDITORIAL POLICY 01ANNUAL ES

20、G KEY STORY 02MESSAGE FROM THE CHAIRMAN 062023 ESG MILESTONES 10ESG OBJECTIVES AND ANNUAL PERFORMANCE 12GRI 2-9 Governance Structure and Compo-sition/GRI 2-17 Collective Knowledge of the Highest Governing BodyGRI 403 Occupational Health and Safety GRI Content Index Comparison Table of Sustainability

21、 Accounting Standards Board(SASB)Standards TWSE:Industry Sustainability Disclosure Indicators-Communications and Internet Industry(Appendix 1-11)TWSE:Climate-Related Information of TWSE/TPEx Listed Companies(Appendix 2)Assurance Statement 145 Governance Group 146 Key Governance Performance Data 148

22、Operations and Governance 157 Risk Management 160 Sustainable Supply Chain 172 Personal Data and Privacy Protection37 Engemant Policy and Mangement 38 2023 ESG Results of Crital Stakeholders Engagement28 Process for Determining Material Topics 30 2023 Material Topics CORPORATE OVERVIEWChapter 116 Or

23、ganization Chart 17 Business Model17 Product Technology and Services17 Market Share of Main Products14EnvironmentalChapter 543 Environmental Group 44 Key Environmental Performance Data46 Climate Strategy and Management 54 Biodiversity58 Water 60 Waste64 Engery Resources 66 Environmental Sustaninabli

24、ty Actions42SOCIALChapter 671 Social Group 72 Key Social Performance Data75 Digital Empowerment 94 Technology Platforms 99 Client Partner 105 Foundational Infrastructure 112 Organizational Talent 140 Public Policy Participation70144SUSTAINABILITY MANAGEMENTChapter 220 Sustaninability Strategy 22 ESG

25、 Management18362617618018618919419519767 767Technology-based carbon reduction,investment in renewable energy,and safeguarding biodiversity by planting trees High-Tech Anti-Fraud Measures and Digital Empowerment for AllReflecting on 2023,Chunghwa Telecom(CHT)continued to leverage its competitive edge

26、 in innovative Information and Communication Technology(ICT)to address environmental,social,and economic challenges and opportunities presented by climate change,artificial intelligence(AI),and human rights issues.Through sustainable and digital transformation strategies,CHT created value for its em

27、ployees,shareholders,and society at large.It not only maintains a solid financial and operational performance,but also sustains its market leadership position.Upholding the brand spirit of Always Ahead,Chunghwa Telecom continues to deepen its commitment to ESG practices and foster mutually beneficia

28、l relationships with stakeholders.Message from the ChairmanOn the social front,we leverage our ICT core competitiveness to integrate the digital inclusion initiative and action plan with Chunghwa Telecom Foundation,encouraging employees to volunteer and participate in various ESG activities.We are c

29、ommitted to achieving social inclusion and aligning with the United Nations Sustainable Development Goals(SDGs).We are committed to assisting remote communities and disadvantaged groups.For more than a decade,our online community-based afterschool counseling service has helped hundreds of high schoo

30、l students in rural areas get into college,and our EYE Social Innovation Center has provided customer service jobs for more than 200 visually-impaired employees.We provide disadvantaged groups with discounts on ICT services,effectively bridging the digital gap with technology.We regularly organize i

31、nnovative application competitions to drive digital creativity and create employment opportunities in Taiwan.Finally,we assist small and medium-sized enterprises(SMEs)in digital transformation and explore new business models.Ultimately,we want to leverage our ICT core competitiveness to achieve digi

32、tal empowerment and digital Inclusion.To help safeguard national security and enhance social order,we implemented a series of new fraud prevention measures,including warnings for international incoming calls and spoofed SMS.Through our service,we are able to stop 24.24 million spam calls and blocked

33、 650 million scam messages monthly,effectively eradicating 100%of telecommunication fraud from foreign numbers disguised as local numbers.Additionally,we collaborate with the National Police Agencys 165 Anti-Fraud Hotline,which processed 204,341 calls in 2023.We have received and handled 6,156 cases

34、 of fraud victimization referrals,successfully intercepting 3,428 fraud attempts amounting to NT$360.61 million,and avoiding potential fraud cases amounting to over NT$7,073.7 million.Employees are the most important asset of any company.We launched the Women Balance Power Program to recruit female

35、talent and promote workplace diversity,equity,and inclusion(DEI).We provide childcare benefits for employees with children under the age of 3,shortening their workday by an hour without any repercussions on their attendance records or performance evaluations.As of 2023,the program covered 1,556 empl

36、oyees,creating 141,844 hours of quality family time.In 2024,we expanded the program to include anyone with children aged below 6.Moreover,we set up 16 on-site childcare centers at business locations across the six municipalities of Taiwan to provide education and care services for employees children

37、(and grandchildren)aged 26.We encourage employees to return to their hometown and spend time with family members,improving work-life balance.As an ICT service provider committed to environmental sustainability,we have adopted a wide range of technology-based carbon emissions reduction measures.These

38、 include introducing low energy-intensive equipment,optimizing network architecture,and developing Innovative Optical and Wireless Network(IOWN)and other frontier technologies to achieve greater power efficiency,higher data transmission capacity,and lower latency.Our in-house developed environmental

39、 sustainability management system EARTH and smart energy conservation system iEN allow us to drastically improve energy efficiency and management performance.From tree planting and waste reduction to paperless processes,we are building a low-carbon workplace.We are among the first in the industry to

40、 implement an internal carbon pricing mechanism(NT$1,600 per t-CO2e).As a result,our carbon emissions have been reduced by 15.94%compared to the baseline year of 2020,marking reduction for a third consecutive year.Furthermore,we were the first ICT company in Taiwan to officially join the Carbon Disc

41、losure Project(CDP).We actively work with our suppliers to implement sustainable practices.As of 2023,our net-zero sustainability initiative was signed by 61 of our key suppliers,who promised to cut carbon emissions by 50%by 2030(compared to baseline year 2020 levels).Regarding renewable energy,we a

42、re installing solar panels and green cell towers,increasing our renewable energy purchases annually,obtaining renewable energy certificates(RECs),and supporting the RE100 global initiative,which mandates signatory companies to reach 100%renewable energy use by 2040.In addition,we established an all-

43、inclusive recycling system to improve wastewater reclamation rate.We received BS 8001 circular economy certification and Level 5+(excellence)in the TCFD climate-related financial disclosure compliance audit,marking a first for the ICT industry in Taiwan.In the meantime,we care about biodiversity.As

44、part of our effort,we committed to planting 150,000 trees across Taiwan from 2022 to 2030,including Sassafras randaiense to restore Papilio maraho habitats.This effort supports our net positive impact and no net deforestation goals by 2030.As a leader in the industry,we hope to encourage our sustain

45、able supply chain partners to join our efforts in protecting biodiversity and the forest.989Shui-Yi KuoChairmanChunghwa Telecom Co.,Ltd.Board-level ESG Accountability,Integrity,and TransparencyTo demonstrate our commitment to ESG,we elevated the competent authority for sustainable development from m

46、iddle management to the Board of Directors level.We also renamed the Strategy Committee the Sustainable Development and Strategy Committee to formulate the Companys sustainability strategies and action plans,with the chair of the Company now serving as Chief Sustainability Officer(CSO)and independen

47、t directors accounting for more than half of the committees members.With this change,the Board now plays an even greater role in ensuring that the Companys operations strategies and business decisions are consistent with its sustainable development goals.From 2022,we introduced a link between the Co

48、mpanys ESG performance and senior executive remuneration.We are among the very few corporations in Taiwan that have a benefit clawback mechanism in place to ensure that executive-level decision-making is in line with the long-term benefits of our investors.In addition to our existing corporate gover

49、nance system,we are incorporating the accountable investment principle into liquid capital management,restructuring our data management system to enhance data application value,and enforcing cybersecurity,privacy,and personal data protection measures to strengthen corporate governance.Lastly,to rein

50、force intellectual property-related regulatory compliance,we became the first ICT company in Taiwan to pass the Taiwan Intellectual Property Management System(TIPS)certification.Our proactive stance in ESG actions earned widespread recognition from the industry and stakeholders in 2023,as proven by

51、the following awards and accolades:Looking ahead,we will leverage our abundant assets:customers and partners,technology platforms,network infrastructure,and talent while upholding our four core values:Integrity,Trust,Innovation,Accountability,to become an international benchmark enterprise built upo

52、n sustainable development.Ranked first in the global telecommunications industry in the Dow Jones Sustainability Index(DJSI)World Index;included in the DJSI Emerging Markets Index for 12 years consecutively.Named top 5%global ESG corporation by S&P Global 2023 Sustainability Yearbook.Upgraded to AA

53、ratings in ESG performance by Morgan Stanley Capital International(MSCI)in May 2023.Winning the Jade Award,the top honor at The Asset ESG Corporate Awards for three consecutive years(and being the only Taiwan-based company to achieve the feat).Being named the Taiwan Telecoms Company of the Year Awar

54、d,Taiwan 5G Services Customer Value Leadership Award,and Taiwan Data Center Services Company of the Year Award by Frost&Sullivan two years in a row.Winning the FinanceAsia Best Overall Company Gold Award,Best Telecommunications Company,Best Corporate ESG Strategy Gold Award,Best Large-cap Silver Awa

55、rd,Best DEI Strategy Bronze Award,Best Investor Relations Beonze Award.Ranking in the top 5%in Corporate Governance Evaluation for the 9th time.Top Prize of Overall Performance in telecommunications and ICT industry for the 2nd consecutive year by Global Views ESG Corporate Sustainability Awards.Tai

56、wan Corporate Sustainability Awards(TCSA),Top 10 Domestic Corporates,8 sustainable performance awards and Corporate Sustainability Report Awards Platinum class.Global Corporate Sustainability Awards(GCSA),Sustainability Reporting Bronze Award.11102023 ESG Milestones Winner of Speedtests Best Mobile

57、Cov-erage and Best Mobile Network for the 5th consecutive year and Fastest 5G Mobile Network for the second yearCommonWealth Magazine Ex-cellence in Corporate Social Responsibility AwardTop 100 Sustainable Corporations,Top 50 Sustainable Conglomerates,and CommonWealth Sustainability Talent AwardAsia

58、money Magazine Outstand-ing Companies in Taiwan Award Communication Services Sector(sole awardee)Harvard Business Review ESG AwardsOutstanding ESG Trans-formation Award and Outstanding Business Model Transforma-tion Award Eastern Online 2023 Home Broadband Network Satisfaction SurveyNo.1 home broadb

59、and Internet service provider2023 Taiwan Innotech Expo3 gold medals,3 silver medals,and 7 bronze medalsTCloudTop 20 cloud computing service providersTaiwan Alliance for Net Zero Emission(TAN-ZE)Net-Zero Emissions Mark Frost&Sullivan2023 Taiwan Telecoms Services Com-pany of The Year,2023 Taiwan 5G Se

60、rvice Customer Val-ue Leadership Award,and 2023 Taiwan Data Center of the Year The AssetESG Corporate Award(Jade Award)Taiwan Contact Center Development Association24 awards including Best Customer Service Innovation Sys-tem Application,Best Integrated Marketing Enterprise,and Best Social Media Mana

61、gement Enterprise Education,Parenting,and Family Lifestyle QuarterlyFami-ly-Friendly Workplace Award Ranked first in the global telecommunications industry in the Dow Jones Sustainability Index(DJSI)World Index;included in the DJSI Emerging Markets Index for 12 years consecutively OpensignalBest 5G

62、Coverage,Best 5G Upload/Download Speed,Best Overall Network Coverage,and Best Overall Upload/Download Speed Executive Yuans Critical Infrastructure Protection ExerciseExcel-lence Award 2023 Agency and Advertiser of the YearTelecommunications Company of the Year(Gold Award),OTT Company of the Year(Go

63、ld Award),and CSR Social Participation Silver Award Ministry of Economic Affairs Taiwan Excellence AwardsComputer and Software Global Logistics&Commerce Council of Taiwans ESG Sus-tainability in Logistics AwardsInnovative Sustainable Technol-ogy Gold Award Taiwan Stock Exchange CorporationTop 5%in T

64、WSE Corporate Govern-ance Evaluation Winning the FinanceAsia Best Overall Company Gold Award,Best Telecommuni-cations Company,Best Corporate ESG Strategy Gold Award,Best Large-cap Silver Award,Best DEI Strategy Bronze Award,Best Investor Relations Beonze Award Opensignals 5G Global Mobile Network Ex

65、perience Awards 2023No.1 in 5G and overall network coverage and user experience in Taiwan Readers Digest Trusted Brand Awards Phone Service and Mobile Internet Dou-ble Platinum Awards Top Prize of Overall Performance in telecommunications and ICT industry by Global Views ESG Corporate Sustainability

66、 AwardsOpensignalBest 5G network speed and coverageTaiwan Institute for Sustainable Energy 7th Taipei Golden Eagle Micro Movie FestivalPeoples Choice Award and Sustainability Micro Movie Bronze AwardWealth Magazine 2023 Smart City Contribution AwardsSmart Energy AwardMSCI ESG ratings AA ratings5MAY2

67、FEB4APR3MAR Sports Administration,Ministry of EducationGolden Sponsor Award,Long-Term Sponsorship Award,and Sport Promoter Award World Branding Forum Brand of the Year AwardsBest Telecommunications Company in Taiwan(sole awardee from Taiwan)Taiwan Institute for Sustainable Energy11 awards including

68、the Taiwan Corporate Sustainability Award(TCSA)and the Global Corporate Sustainability Award(GCSA)Ministry of Cultures Taiwan Arts&Business AwardGolden Award,Long-Term Supporter Award,Talent Cul-tivation Award,and Supporter of the Year Award SpeedtestBest Mobile Network Coverage(6 years in a row),Be

69、st Mobile Network Speed(6 years in a row),and Best 5G Network Speed(3 years in a row)1110768912 Named top 5%glob-al ESG corporation by S&P Global 2023 Sus-tainability YearbookJUNJULAUGSEPOCTNOVDEC13121350%cut in carbon emissions compared to 2020AA of MSCI ESG Ratings attained by 2025;AAA of MSCI ESG

70、 Ratings attained by 2030100%renewable energy used in IDCs30%of the variable executive compensation links ESG indicatorsCarbon emissions reduced by 125,900(15.94%)tons compared to 2020.Received MSCI ESG AA Rating 66.94 million kWh(38.8%)renewable energy used in IDCsThe percentage of the variable exe

71、cutive compensation links ESG indicators is raise from 10%to 15%,from 2022 to 2023.On scheduleOn scheduleOn scheduleAhead of schedule2030 GOAL2030 GOAL2023 Performance2023 PerformanceRatio of female senior managers raised to 20%Cumulative 46,000 individuals from the disadvantaged groups in rural are

72、as benefited from the digital empowermentTotal of 198,000 SMEs with digital environments or new business models establishedRatio of female senior managers raised to 17.5%Cumulative 13,000 individuals from the disadvantaged groups in rural areas benefited from the digital empowermentCumulative 97,500

73、 SMEs with digital environments or new business models establishedOn scheduleOn scheduleOn schedule2030 GOAL2023 PerformanceESG Objectives and Annual PerformanceThe SDGs CHT contributes to in this chapter 1Corporate OverviewGOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABIL

74、ITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL1415151514Chunghwa Telecom(2412),the largest integrated telecommunications provider in Taiwan,has service locations spanning all 22 counties and cities across the country.Our primary business includes fixed-line communications,mobile communications

75、,broadband access,and the Internet.Leveraging advanced resources in big data,cybersecurity,cloud computing,and data centers,we offer comprehensive ICT services to enterprise customers.We are also actively developing emerging technology services such as the Internet of Things(IoT)and Artificial Intel

76、ligence(AI),creating a superior ICT environment and a vibrant,convenient digital life for our customers.Moreover,we are a key partner for telecommunications operators globally.We adhere to the service philosophy of bridging the digital divide,implementing environmental sustainability,and caring for

77、the underprivileged.Utilizing our core technologies,resources,capabilities,and unique strengths,we address environmental,social,and governance(ESG)aspects to embody our brand spirit of Always Ahead.Through concrete actions,we demonstrate our commitment to sustainable operations and comprehensive cor

78、porate sustainability.In recent years,our proactive ESG initiatives have been recognized by professional organizations both domestically and internationally.Note:Main businesses of branch offices and reinvestment companies:Please refer to p.18 of the 2023 Annual Report.Organization Chart p.16Busines

79、s Model p.17Product Technology and Services p.17Market Share of Main Products p.17GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL161717AuditCommitteeAuditDepartmentCompensation CommitteeConsumer Business GroupEnterprise

80、 Business GroupInternational Business GroupNetwork Technology GroupInformation Technology GroupRisk Management CommitteeSustainable Development and Strategy CommitteeSecretariat of BoDSEVPTelecommunication Training InstituteBranchesCorporate Planning DepartmentInvestment DepartmentOccupational Safet

81、y&Health DepartmentFinance DepartmentAdministration and Asset Development DepartmentCorporate Communications DepartmentOrganization and Talent Development DepartmentSupply DepartmentAccounting DepartmentBusiness Management DepartmentData Development DepartmentCyber Security DepartmentLegal Affairs D

82、epartmentTelecommunication LaboratoriesIndividual and Household MarketEnterprise MarketInternational MarketInternetNo.of Customers3.692 million householdsMarket share 54.6%Domestic fixed networkNo.of Customers/Total Communication TimeMarket shareLocal networks9.145 million households 91.4%Long haul

83、Internet1,162 million minutes 81.4%Broadband access4.403 million households 57.7%MOD2.055 million households 31.3%International fixed networksCommunication amountMarket share73.2 million minutes44.2%Mobile communicationNo.of Customers Market share13.138 million households 37.6%300 MbpsNo.of Customer

84、sAnnual growth1.294 million+33.6%No.of CustomersMarket share3.692 millionNo.1Mobile phoneNo.of CustomersAnnual growth13.138 million+4.1%No.of CustomersBroadband customers3.804 million86.4%Organization ChartBusiness Model Product Technology and ServicesMarket Share of Main Products Mobile Broadband S

85、ervices Domestic Fixed Voice Services Fixed Broadband Internet Services Video Service Fixed-line Service Mobile Service International telecommunications service integration Enterprise Telecommunication Services Enterprise Integrated ICT Services(IDC,Cloud,Information Security,Smart Connectivity,Mobi

86、le Applications,Big Data,etc.)Board of DirectorsChairman&CEOShareholders Meeting President17 Product Technology and Services17 Business Model16 Organization Chart17 Market Share of Main ProductsSustainability Strategy p.20ESG Management p.222Sustainability ManagementChunghwa Telecom is committed to

87、its mission:leveraging customer partnerships,technology platforms,infrastructure networks,and organizational talent to create a trusted digital ecosystem.This empowers personal,household,governmental,corporate,international customers,and strategic partners,driving continuous innovation and value cre

88、ation for all stakeholders.Our core valuesintegrity,trust,innovation,and accounta-bilityguide us towards three key visions:becoming a global benchmark for sustainable development,a leading brand in digital ecosystem co-creation,and a top tech conglomerate exceeding trillion-dollar market value.1919G

89、OVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL191918202121GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL202121202121202121 Sustainability

90、 StrategyFinancial CapitalHuman CapitalIntellectual CapitalManufactured CapitalSocial CapitalNatural CapitalRobust financial management,cost reductions,revenue source development,and value creation/enhancement for shareholdersAttracting and retaining outstanding talent by fostering a welcoming workp

91、lace and providing adequate training and career opportunitiesRealizing innovative solutions through research and development to meet the diverse needs of digital transformationContinuous investment in telecommuni-cations infrastructure to improve network quality and the quality of our products and s

92、ervicesActive participation in social engagement campaigns to promote access to technology and create value for our stakeholdersImplementation of carbon reduction and energy management plans,pursuit of net zero and biodiversity,and fostering co-prosperity with NatureFinancial Capital77,574,465 thous

93、and Salary and Welfare expenses46,211,245 thousand R&D expenses3,891,381 thousand Equipment installation and maintenance expenses30,741,309 thousand Social investment1,441,892 thousand Green procurement18,238,000 thousand Capital expenditures30,741,309 thousand Training expenses511,776 thousand Mark

94、eting expenses23,599,302 thousand Cell tower installation expenses7,448,973 thousand Universal telecom services595,968 thousand Environmental management expenses365,284 thousand Impact on Value Creation To ensure eligibility for operating Provides sufficient financial resources to support value crea

95、tion Effective execution of commercial activities Generation and allocation of other forms of capital,such as distribution of shareholder equity,investments,and capital expendituresImpact on Value Creation Telecom knowledge and skills acquired by employees Human capital represents one of our major o

96、perational costsImpact on Value Creation Licensing,laboratory and R&D expenses,and the acquisition and development of industry technologies Investment to maintain the brandImpact on Value Creation Allocation of financial capital to develop and maintain infrastructure Operation of the Internet Data C

97、enter(IDC)and the installation of wireless facilities and development of software and applicationsImpact on Value Creation Regular contact with the relevant authorities to ensure the conformance and legality of operations and competition Positive feedback from consumers and the general public helps

98、build credibility of the Chunghwa Telecom brand and minimizes financial outlayImpact on Value Creation Natural capital such as infrastructure,raw materials,and energy sources are needed to promote operations and optimally utilize human capital The use of energy-saving processes and solutions can eff

99、ectively reduce the consumption of natural capitalResource Allocated to Sustain Value Creation Contributions to the government in the form of tax revenue Support the development of network infrastructure Improve the quality of telecom servicesResource Allocated to Sustain Value Creation Compensation

100、 and incentive schemes to attract and retain talent Encourage high value-added services and innovation Talent training and development pro-gramsResource Allocated to Sustain Value Creation Ongoing investment in R&D,constru-ction,and services,and maintaining service quality and customer satis-faction

101、 Investment in the R&D of new tech-nologies and the setting of new pro-tocolsResource Allocated to Sustain Value Creation Ongoing new construction,maintenance,and operation of network equipment Procurement control and the acquisition of more cost/energy efficient network equipment Consolidation of i

102、dle space and the recycling and disposal of obsolete equipmentResource Allocated to Sustain Value Creation Active stakeholder engagement to help them better understand Company operations Engagement in social activities to exert influence through core activities to minimize the digital divideResource

103、 Allocated to Sustain Value Creation Environmentally friendly product purchases to reduce consumption of natural resources and increase energy efficiency Use of carbon management to minimize energy consumption and increased application of renewable energy solutions Focus on the development of renewa

104、ble energy sources using proprietary and commissioned Photovoltaic systemsDeveloping Six Capitals At Chunghwa Telecom,we believe that success is not just short-term profitability.True success lies in how we leverage our capital to create value in multiple domains and realize our vision of sustainabl

105、e development.20 Sustainability Strategy22 ESG Management222323GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL222323222323222323ItemDescriptionRepresentative Shui-Yi Kuo,ChairmanMechanism Deliberation of key sustainable

106、 development and business strategy topics,including medium-to long-term goals,ESG targets,and sustainable development policies and management guidelines.Establishment of a management-level Sustainable Development Promotion Committee,with the Company Chairman as Chief Sustainability Officer and the E

107、xecutive Vice President supervising four divisions(Environmental,Social 1,Social 2,and Governance).The Promotion Committee reports quarterly to the Sustainable Development and Strategy Committee,with operations and achievements disclosed on the Companys website and in annual reports.Execution The Op

108、erations Planning Division,acting as the Committee secretariat,supports sustainable development by organizing meetings,collecting documents,maintaining minutes,and tracking initiatives.The Committee formulates the companys sustainable development vision,long-term strategies,and medium-to long-term g

109、oals.It is responsible for creating policies and management guidelines and reviewing the Executive Committees progress and achievements.The Promotion Committee provides quarterly sustainability reports to the Committee,allowing Board members to comment and requiring relevant units to document and tr

110、ack these topicsMeeting Frequency QuarterlyReport Approval Reports are submitted to the Chairman for review through official document submission procedures after approval by the vice presidents at Headquarters.Execution Results in 2023 1 August 1(10-7 Strategy Committee Meeting):The Sustainable Deve

111、lopment Committee was elevated to the board level for discussion;focusing on the ESG sustainable development strategy,including commitments and actions regarding biodiversity and zero deforestation.2 October 30(10-8 Sustainability Committee Meeting):Discussion on IFRS sustainability disclosure stand

112、ards and the corresponding response report;Presentation on CPPA renewable energy procurement strategy.3 January 16,2024(10-9 Sustainability Committee Meeting):Formulation of the 2024 sustainable development promotion strategy.ESG ManagementSustainable Development and Strategy Committee As a sustaina

113、bility leader,Chunghwa Telecom established the CHT CSR Committee in 2006,launching various CSR initiatives.In response to ESG trends,the committee was rebranded as the Sustainable Development Committee in 2021.To better integrate sustainable development/ESG strategies,we merged the Sustainable Devel

114、opment Committee with the Strategy Committee,forming the board-level Sustainable Development and Strategy Committee in 2023.The new Sustainable Development Promotion Committee,led by the CHT Chairman and President,formulates and reviews sustainability strategies,policies,and goals,overseeing annual

115、ESG performance and reporting to the Board.Organizational adjustments are made based on Board guidance.Our vision for sustainable development is Greening&Decarbonization,Digital&Empowerment,Integrity&Transparency.By integrating our unique corporate resources and leveraging our core competencies,Chun

116、ghwa Telecom plans and implements comprehensive ESG action plans through four subcommittees under the ESG committee.In the spirit of Always Ahead,we aim to stay at the forefront by developing and executing a wide variety of ESG initiatives.*Sustainable Development Best-Practice Principles of Chunghw

117、a Telecom Co.,Ltd.*Organizational Regulations of the Board of Directors Sustainable Development and Strategy Committee*Sustainable Development and Strategy Committee OperationsConvener MembersChairpersonVice Chairperson Committee membersNominated and elected among Committee members5 to 9 directorsCh

118、airman(Chief Sustainability Officer)PresidentHead Office Executive SEVP(Group Leader)President of Business GroupChunghwa Telecom Foundation CEOSustainable Development and Strategy CommitteeSustainable Development Promotion CommitteeSecretariat of CommitteeSecretariat of CommitteeEnvironmentalSustain

119、abilitySubgroupEnvironmentalGroupSocialGroup 1SocialGroup 2GovernanceGroupCorporateVolunteerSubgroupEmployee CareSubgroupDigitalOpportunitySubgroupConsumer CareSubgroupCorporateGovernanceSubgroup20 Sustainability Strategy22 ESG Management242525GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS E

120、NGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL242525242525242525Internalization and Communication of ESGChunghwa Telecom has employees all around Taiwan.In order to ensure that all employees understand the spirit of corporate sustainability,implement it,and provide timely f

121、eedback,we have established multiple communication channels within the Company to promote relevant issues;together with the performance evaluation mechanism,these measures have transformed the concept of sustainability into action that we implement in our daily operations.ChannelItemDescriptionCommu

122、nication within Senior Management Senior management meeting Material ESG issues are discussed annually in the senior management meeting,and the resulting resolutions indicate our improvement and direction.Employee Training Environmental training 5G Plastic Free sustainability education initiative fo

123、r employees.5G Plastic-Free Corporate Volunteer Sustainability Action training program.Recruitment of environmental protection volunteers to promote environmental awareness.ESG training ESG courses to promote ESG awareness among employees and incorporate ESG thinking into the corporate culture:1.346

124、 ESG knowledge and competency courses offered to 40,000 employees2.Collaboration with the Taiwan Institute for Sustainable Energy Research to organize the Licensed Corporate Sustainability Manager Training Program,which helped 156 employees obtain the license,making CHT the company with the greatest

125、 number of licensed corporate sustainability managers in Taiwan 15 employees with a CDMP(Certified Data Management Pro-fessionals)licenseNew employee training New employees undergo digital pre-service training and the Growth Camp,which include corporate values,personnel systems,work rules,and the la

126、bor-management relationship.e-Learning We post relevant training courses and information on the e-Learning system that can be downloaded and studied freely by the employees.ChannelItemDescriptionCommunication with Employees EIP Portal An internal website/system is provided for employees to submit su

127、ggestions,innovative ideas,and other feedback to encourage employee participation.An employee platform has also been established that includes an open channel for complaints and whistleblowing as well as communication channels for exchanging messages and information.Annual Evaluations Administrative

128、 sustainability performance Sustainable development goals are included in the annual performance evaluation to serve as the basis for assessing the effectiveness of unit-level promotion.Online quiz on ethics regulations We conduct annual training and testing on the Code of Ethics of Chunghwa Telecom

129、 Co.,Ltd.,Chunghwa Telecom Ethical Corporate Management Best Practice Principles and Prevention of Insider Trading.Reports and appeals Employees who violate the Code of Ethics of Chunghwa Telecom Co.,Ltd.and Chunghwa Telecom Ethical Corporate Management Best Practice Principles are dealt with in acc

130、ordance with Company regulations.Other ESG Report workshop Internal training on new ways of preparing reports is held from time to time to increase employee awareness of ESG trends.Official website and social media The official website and Chunghwa Telecoms YouTube channel both include a ESG section

131、 and we have set up a FB fan page.20 Sustainability Strategy22 ESG ManagementThe SDGs CHT contributes to in this chapter Process for Determining Material Topics p.282023 Material Topics p.30Assessing the impact of material ESG issues is a crucial step to ensure Chunghwa Telecoms robust progress on t

132、he path to sustainability.This process not only aids in identifying and addressing potential risks but also uncovers opportunities for promoting long-term development across economic,social,and environmental dimensions.2727GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILI

133、TY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL27263Material TopicsAnd Impacts27282929GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL28292928292929Ongoing Collection/Identification of Sustainability TopicsInformatio

134、n on international trends in sustainability/ESG topics,disclosure frameworks/standards(e.g.,GRI Standards,TCFD,and SASB),sustainability ratings(e.g.DJSI and MSCI),international benchmarks,and the relevant ESG news concerning Chunghwa Telecom in 2023 are collected in an ongoing manner.In line with th

135、e Companys short-,medium-,and long-term ESG goals,topics under different aspects are identified,and relevant information is collected.Materiality EvaluationFeedback from external stakeholder assessments is integrated.The actual and potential impacts of topics under the various ESG aspects are determ

136、ined by different ESG groups via questionnaires and interviews according to the double materiality principle,followed by an assessment of the materiality of each topic.PrioritizingAfter the materiality assessment,the ESG groups conduct the final analysis and discussion of the topics on the basis of

137、internal considerations,practices in the industry,and benchmarks,along with the opinions of external stakeholders.A significance threshold is set for prioritization of the topics based on actual and potential impacts,after which the annual ESG Materiality Matrix is mapped out.Result Confirmation/Mat

138、eriality MatrixAfter the ESG groups agree on the ESG Materiality Matrix for the year,it is submitted to the Sustainable Development and Strategy Committee(composed of the top ESG supervisors and a representative of the Board of Directors)for review and sign-off to verify the results of the material

139、ESG topic identification for the year,which serves as a crucial reference for the disclosures in the annual ESG Report/action plan.Process for Determining Material TopicsSteps for Determining Material ESG TopicsMateriality Assessment External Stakeholder Engagement ProcessSTEP2STEP1STEP3STEP4A varie

140、ty of communication and engagement interfaces are in place at Chunghwa Telecom.Different types of external stakeholders,such as competent government authorities,academia,non-profit organizations,consumers,and suppliers are invited to jointly identify a n d a s s e s s E S G to p i c s and offer thei

141、r valuable opinions to further broaden the field of view for ESG topic determination.The engagement channels include:Communication and Grievance Channels:We provide a variety of platforms and channels,such as online forms,mailboxes,and telephone hotlines,for external stakeholders who wish to raise c

142、oncerns,offer suggestions,or file complaints about our ESG efforts.To ensure that stakeholders voices are heard,we carefully review and respond to every comment and strive to respond to each one promptly.Community engagement:To increase the scope and depth of discussion,we invite external stakeholde

143、rs via social media to put forward their opinions and recommendations on ESG topics.Interviews and questionnaires:The opinions and recommendations of external stakeholders are collected via interviews and questionnaires at various activities/conferences to help us form a better understanding of how

144、certain ESG topics may impact our operations.Stakeholder forums:In-depth discussion and under-standing of ESG topics are facili-tated through the organization of and participation in ESG-themed forums/seminars.Material topic survey on the corporate website:The Material Topic page was set up in the E

145、SG section of the corporate website to invite external stakeholders to participate in the identification and assessment of ESG topics and provide their views and recommendations.1 2345 292828 Process for Determining Material Topics30 2023 Material Topics303131GOVERNANCESOCIALMATERIAL TOPICSAND IMPAC

146、TSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL303131303131303131303131303131ESG AspectMaterial TopicsDouble Materiality Cause of the ImpactTarget of the ImpactImpact on the Operations and BusinessesImpact on the Environment,Society,and PeopleCarbon Emission

147、Reduction and Climate AdaptationHigh carbon fees(taxes)are levied due to ineffective carbon emission reductions,increasing direct/indirect operating costs and potentially reducing climate resilience and adaptive capacity.Failure to effectively promote climate transition actions and reduce carbon emi

148、ssions hinders achieving net-zero emissions,impacts low-carbon development in the ICT industry,diminishes competitiveness,and negatively affects climate change.Business Activities Products and Services Business Relationships CHT,All SuppliersEmissionsBuilding a Happy Workplace A welcoming,positive w

149、orkplace encourages employees to be more creative and proactive,which leads to increased work efficiency and talent retention for greater long-term corporate growth.A positive brand image can improve community relations and is conducive to the stability and development of society.Business Activities

150、 Products and Services EmployeesEmploymentCustomer TrustTo ensure regulatory compliance and protect our brand image,we are actively developing sustainable low-carbon products and services,and we regularly review health and safety regulations and organize corresponding internal training.To safeguard

151、the rights and interests of consumers,we formulated a comprehensive product health and safety evaluation system(which includes electromagnetic compatibility tests)to ensure that all products are properly labeled.Business Activities CustomersCustomer Health and SafetyCybersecurityand Privacy Protecti

152、onEstablish well-rounded cybersecurity management systems and mechanisms,and conduct regular audits and exercises,to ensure that customer privacy is secure and free from violation,elevating the corporate reputation.Provide high-quality cybersecurity services and technical support,effectively expand

153、and communicate correct cybersecurity concepts and technical services and assist industries and the general populace to effectively manage and control cybersecurity risks.Business Activities Products and Services Business Relationships CustomersCustomer PrivacyValue of Innovation in Corporate Operat

154、ionsInnovation in operations leads to the development of exciting new products and services,which in turn helps us achieve economy of scale,improve profitability,and expand our market share.Innovation can diversify our product and service lineup,creating more jobs and spurring local economic growth.

155、Innovative technologies and solutions can also reduce energy intensity and carbon emissions.Business Activities Products and Services Business Relationships Shareholders,EmployeesEconomic Performance5G Application and Industry EcosystemA significant portion of procurement is local,fostering strong c

156、ommunity relations,ensuring supply integrity,and enhancing financial and economic stability,which benefits the industrial ecosystem.This approach indirectly promotes regional economic development through supply chain activities,attracting investments and increasing job opportunities.Business Activit

157、ies Products and Services Business Relationships All SuppliersProcurement PracticesIntegrity in Corporate GovernanceConsider anti-corruption risk as an overall risk of the Company for an effective assessment and management to minimize possible litigation and operational risks arising from corruption

158、.Establish complete anti-corruption policies and procedures to effectively manage corruption risks in the supply chain,reduce unethical business conduct in the industry,and elevate good social ethos.Business Activities Business Relationships Employees,All SuppliersAnti-corruptionESG AspectMaterial T

159、opicsDouble Materiality Cause of the ImpactTarget of the ImpactImpact on the Operations and BusinessesImpact on the Environment,Society,and PeopleDiverse andInclusive WorkplaceThe rising average age of the organization and excessive homogeneity,failure to incorporate representatives of diverse group

160、s,and inability to think outside the box hinder innovation and development,which impede the development of emerging industries and services.The lack of diversified employment mechanism renders inability to provide ample job opportunities for diverse talents,obstacles for young talents to enter the j

161、ob market,and impacts on the innovation,creativity,and entrepreneurship in the ICT industry,affecting the overall economic development of the industry.Business Activities Products and Services Business Relationships EmployeesDiversity and Equal OpportunityIntegrity in Corporate GovernanceCorruption

162、and bribery can result in lower efficiency,unfair business practices,and regulatory fines,which can negatively impact share prices and investor confidence.Corruption and bribery jeopardize the trust that the general public places in the Company,raise doubts over business integrity and resource alloc

163、ation,and negatively impact economic development.Business Activities Business RelationshipsEmployees,All SuppliersAnti-corruptionActual Positive 2023 Material TopicsActual NegativeSCUSTOMER PRIVACYScale of Impact 4.4Duration of Impact 4.4SEMPLOYMENTScale of Impact 4Duration of Impact 4.2GANTI-CORRUP

164、TION Scale of Impact 4.5Duration of Impact 4.4GECONOMIC PERFORMANCEScale of Impact 4Duration of Impact 4.5GPROCUREMENT PRACTICESScale of Impact 4.1Duration of Impact 4ESCUSTOMER HEALTH AND SAFETYScale of Impact 4.4Duration of Impact 4.4Duration of ImpactScale of ImpactGANTI-CORRUPTION Irremediable C

165、haracter of Impact 4.6Scope of Impact 4.4Improvability 4.4SDIVERSITY AND EQUAL OPPORTUNITYIrremediable Character of Impact 4.2Scope of Impact 4.5Improvability 3Scope of ImpactIrremediable Character of ImpactGGSSEEMISSIONSScale of Impact 4Duration of Impact 4.4Corresponding GRI TopicsCorresponding GR

166、I Topics28 Process for Determining Material Topics30 2023 Material Topics28 Process for Determining Material Topics30 2023 Material Topics323333GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL3233333233333233333233333233

167、33ESG AspectMaterial TopicsDouble Materiality Cause of the ImpactTarget of the ImpactImpact on the Operations and BusinessesImpact on the Environment,Society,and PeopleSafeguarding Human RightsHuman rights protection measures can enhance employee trust and loyalty as well as the Companys reputation

168、and image among external stakeholders,allowing it to attract outstanding talent.An active stance on labor rights can improve labor relations,prevent losses in productivity attributed to labor strikes and demonstrations,and in turn,maintain stability in society.Business Activities Products and Servic

169、es EmployeesFreedom of Association and Collective BargainingPotential PositivePotential NegativeESG AspectMaterial TopicsDouble Materiality Cause of the ImpactTarget of the ImpactImpact on the Operations and BusinessesImpact on the Environment,Society,and PeopleNet Zero Transformation and Green Ener

170、gyNet zero transformation and green energy both require considerable capital investment and are highly contingent on changing market needs and regulatory requirements.Costs associated with such initiatives could threaten the Companys profitability.Individuals whose income depends upon traditional fo

171、rms of energy may be impacted financially.The installation of renewable energy facilities may come at the cost of valuable farmland,impacting the livelihoods of local farmers.Business ActivitiesCHT,All SuppliersEnergySustainable Supply Chain ManagementPlan and institute the complete supplier sustain

172、ability management plan to assess and identify the environmental and sustainability risks of suppliers on a regular basis,improve their competencies,and reduce the risk of violation of the laws by the Company via a well-roundedESG assessment and audit mechanism.A complete sustainable supply chain ma

173、nagement plan to regularly assess the ESG risks of suppliers and work with suppliers with excellent ESG performance to effectively reduce the environmental impacts from suppliers operations and drive the improvement of ESG competencies in the industry.Stakeholder Designated TopicsSignificant Supplie

174、rsSupplier Environmental AssessmentCybersecurityand Privacy ProtectionLeaks or improper use of personal data may lead to regulatory fines,damage to the brand image,and loss of customer trust.In addition,compliance with personal data protection regulations requires considerable time and resources.Lea

175、ks or improper use of personal data threatens the trust that the general public places in the Company threatens peoples privacy,and can lead to identity theft and fraud.Stakeholder Designated TopicsCustomersCustomer PrivacyNote:Material topics additions and revisions for 2023:3 new topics Economic P

176、erformance,Energy,and Employment,and 1 topic Market Presence was deleted.SSESFREEDOM OF ASSOCIATION AND COLLECTIVE BARGAININGScale of Impact 5Duration of Impact 5Possibility 5Duration of ImpactScale of ImpactESUPPLIER ENVIRONMENTAL ASSESSMENTSpecific Topics of StakeholdersSCUSTOMER PRIVACYSpecific T

177、opics of StakeholdersEENERGYIrremediable Character of Impact 4.2Possibility 4.5PossibilityIrremediable Character of Impact Corresponding GRI TopicsCorresponding GRI Topics28 Process for Determining Material Topics30 2023 Material Topics28 Process for Determining Material Topics30 2023 Material Topic

178、s343535GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL343535343535343535343535343535EmploymentEmployees are the most crucial asset of a company.To foster better labor relations and improve employee welfare,we sign an of

179、ficial labor contract with every employee we hire.Furthermore,we are committed to creating a safe and healthy workplace that offers a wide range of employee benefits.Responsible/Grievance Unit:Organization and Talent Development Department Labor contracts with new hires Streamlined grievance channel

180、s and speedy handling of employee complaints 100%labor contract coverage rate among new hires Complaints processed in accordance with regulations 100%labor contract coverage rate among new hires 70 complaints received and handled in a timely mannerDiversity and Equal OpportunityChunghwa Telecom is c

181、ommitted to gender equality and diversity and attaches great importance to fair pay and pro-motion opportunities,ensuring that employees are not subject to discrimination,harassment,or unfair treatment due to ethnicity,gender,religion,age,political leanings,or any other attribute protected by applic

182、able laws and reg-ulations.Responsible/Grievance Unit:Organization and Talent Development Department Labor-management conference Appeals Review Committee to handle matters of discrimination,harassment,or unfair treatment A labor union representative holds a seat as a labor director on the Board of D

183、irectors.Promotion of Women Balance Power Program More than 50%of members on the Ap-peals Review Committee are women More than 30%employees receiving transfer training are women Employees with disabilities:3.19 times higher than the statutory standardFreedom of Association and Collective BargainingW

184、e sign collective agreements with the Chunghwa Telecom Workers Union to safeguard labor rights.A labor repre-sentative also serves on the Board to ensure that employees voices are heard.Responsible/Grievance Unit:Organization and Talent Development Department Periodic employer-employee meetings and

185、negotiations Encouraging employees to join the unionBimonthly employer-employee meetings 7 nation-wide employer-employee meetings and 10 informal meetings 99%of employees covered by collective agreementsCustomer Health and SafetyRegarding potential impacts on human health and safety from our service

186、s,we strictly adhere to the electromagnetic wave safety standards required by the National Communications Commission(NCC)when installing mobile commu-nication systems and undertaking electromagnetic radiation testing in compliance with relevant laws and regulations to resolve doubts over possible im

187、pacts.Electromagnetic radiation testing service:+886 800 580 010 Regulations for Administration of Base Stations of Mobile Communications Network Businesses Compliance with the recommended non-ionizing radiation exposure limits for the general public in non-occupational environments Specific absorpt

188、ion rate(SAR)in line with NCC standardsNo noncompliance reportedCustomer PrivacyOur Privacy Policy that applies to all Business Groups,operating sites,subsidiaries,and suppliers has been stipulated.We have established the Cybersecurity and Privacy Protection Steering Committee.A SEVP is appointed by

189、 the Chair-man as CISO to exercise security management and protection measures for personal data and privacy.We ensure that we are meeting our commitment to our zero-tolerance goal via regular meetings and third-party verification.Responsible/Grievance unit:Chief Information Security Officer(CISO)In

190、formation security and personal data risks included in the scope of the Risk Manage-ment Committees monthly reviews and annual Board reports Annual third-party conformity verification for Privacy Policy International management system certification and audits Performance reviews and rewards/penaltie

191、s:Cybersecurity and privacy protection included as part of the performance review for all employees Maintaining 0 incidents involving major cybersecurity or personal data breaches Maintaining validity of certificatesNo incident of personal data breachesManagement ProcedureEconomic PerformanceWe prov

192、ide competitive compensation and benefits exceeding industry standards.Leveraging our ICT expertise,we aim to reduce the digital divide,create digital opportunities,and promote universal service infrastructure through social initiatives.We also publish annual TCFD reports,conduct third-party audits,

193、and disclose climate-related risks and opportunities to stakeholders.Annual universal service performance review TCFD Conformity Check Donations to the Chunghwa Telecom Foundation Human Capital ROI 100%policy compliance Annual TCFD reports 100%investment in maintenance and op-eration of Digital Good

194、 Neighbors program ROI 2 Universal service:NT$595,968 thousand Certification to the highest grade of TCFD Conformity Check for 4 consecutive years The Digital Good Neighbors were located in 89 places ROI reaches 2.02Procurement PracticesExercise green procurement.Green products with green labels(low

195、 in pollution,recyclable,resource efficient,or green building materials),self-declared,or with lower environmental impacts throughout their lifecycles(from resource pro-curement to disposal)are prioritized for procurement,along with active participation in green procurement initiatives and campaigns

196、.We commit to a local procurement strategy,sourcing professional network equipment internationally only when necessary,and actively promoting local procurement to boost Taiwans economic development.Responsible/Grievance Unit:Supply Department ISO 20400 Sustainable Procurement Guidance as the referen

197、ce 2035:The green procurement amount accounting for over 50%of total procure-ment Annually,local procurement exceeds 90%.Green procurement amount in the total procurement:29.39%Local procurement accounts for 96%of the total procurement value.Anti-corruptionTo strengthen ethical management,the Ethica

198、l Corporate Management Best Practice Principles and Code of Conduct have been established to require the highest business ethical standards;the anti-corruption,anti-bribery and an-ti-money Laundering policy upholds the principle of zero tolerance of corrupt activities and specifies clear guidelines

199、to combat corruption and anti-bribery,to regulate all business interactions.Responsible/Grievance Unit:Organization and Talent Development Department Reward/Penalty system:ethical management policy integrated into employee perfor-mance appraisals and human resources policy Code of Conduct undergoes

200、annual third-party conformity verification Maintaining zero corruption Obtaining Certificate of Conformity(ongoing)with independent verification by SGS-Taiwan for Code of Conduct Zero incidents of involving corruption Statement of CoC Conformity for Code of Conduct from SGS-Taiwan for 5 consecutive

201、yearsMaterial TopicsPolicy/CommitmentVerification and Tracking MechanismsESG GoalProgress in 2023EnergyEstablish a systematic and organized corporate governance structure through the Sustainable Development Commit-tee and the Risk Management Committee combined with the existing internal control and

202、risk management mecha-nism,with reporting to the Board of Directors quarterly to ensure that the Board of Directors is kept updated on climate change topics.Responsible/grievance unit:Environmental Division under the Sustainable Develop-ment and Strategy Committee Renewable energy risk included in t

203、he scope of the Risk Management Committees monthly reviews and annual Board reports Carbon Disclosure Project(CDP)and climate change surveys100%use of renewable energy by 204073,575 MWh of renewable energy used(5.16%of all energy used)Emissions Responsible/Grievance Unit:Environmental Group under th

204、e Sustainable Develop-ment Committee Internal carbon pricing system TCFD Conformity Checks Public commitments by major suppliers to CHTs net-zero goal ISO 14064-1 Greenhouse Gas Verification CDP questionnaire Science-based Targets Initiative 2030:50%carbon reduction over base year of 2020 2050:Net Z

205、ero EmissionsCarbon emissions reduced by 0.1259 million tons(15.94%)over the base year of 2020Supplier Environmental AssessmentAll bidders are required to fill in the Supplier ESG Status Self-Assessment Form,which covers corporate ethics,labor rights,environmental management,and occupational health

206、and safety;suppliers are specifically required to abide by the Chunghwa Telecom Company,Ltd.Supplier Code of Conduct in the procurement contract.Responsible/Grievance Unit:Supply Department CDP Supply Chain Program Second-party audits Sustainability Partner Rating System 100%completion of tier-1 sup

207、pliers ESG compliance reviews 100%completion of significant tier-1 suppliers ESG compliance reviews and on-site inspections by 2025.100%completion rate of the supplier ESG survey 90%completion rate of supplier ESG reviews and on-site inspectionsS SG E ESG Aspect28 Process for Determining Material To

208、pics30 2023 Material Topics28 Process for Determining Material Topics30 2023 Material Topics363737GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTALThe SDGs CHT contributes to in this chapter 37364Stakeholders EngagementEN

209、GAGEMENT POLICY AND MANAGEMENTChunghwa Telecom,Above and BeyondAs the leading telecommunications service provider in Taiwan,Chunghwa Telecom values the voices of its internal and external stakeholders as well as its own business operations and profitability.We listen with all our hearts,and we take

210、action to address any concerns.To ensure meaningful engagement and interaction with our stakeholders,we formulated a group-level Stakeholder Engagement Policy that places particular emphasis on local stakeholder groups(such as neighboring communities,local governments,media,associations,and NGOs)and

211、 disadvantaged groups(digitally or economically disadvantaged families).By involving every stakeholder group in decisions related to material topics,we hope to create greater good for all in a sustainable manner.Furthermore,to identify and address potential conflicts and concerns and foster a positi

212、ve relationship with our stakeholders,we operate multiple channels through which community members can file complaints or share feedback.This allows us to understand and respond to material topics and incidents promptly,preventing small issues from turning into serious problems.*Stakeholder Manageme

213、nt*Stakeholder Engagement PolicyEngagement Policy and Management p.372023 ESG Results of Critical Stakeholders Engagement p.38383939GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTALIdentifying key stakeholders and relevan

214、t issues is central to implementing corporate sustainability/ESG.We have formulated a set of stakeholder engagement procedures following the AA 1000 SES(2015)Stakeholder Engagement Standard,and we have set up multiple communication channels to ensure that stakeholders feedback is heard and addressed

215、.When organizing sustainability-related activities or disclosures,we consider the opinions and suggestions of a wide range of internal and external stakeholders as a basis for our action plans.In the ESG report preparation kick-off meeting,we invite members from all departments to exchange opinions

216、on issues of importance to current key stakeholders and their concerns.Once a consensus is reached,the result is incorporated into a table 2023 ESG Results of Critical Stakeholders EngagementStakeholderMeaning toChunghwa TelecomFocus GRI TopicsCommunication ChannelCommunication FrequencyShareholders

217、/InvestorsAs shareholders/investors are our stockholders,we must be accountable to them.Economic Performance Shareholders meeting Shareholder hotline/mail Earning results conference Annually Real-time Quarterly Non-periodicEmployeesEmployees are critical to the sustainable development and they are t

218、he driving force for sustainable growth.Employment Freedom of Association and Collective Bargaining Diversity and Equal Opportunity E-mail Telephone call Labor employer meeting Negotiation meeting Real-time Every 2 months Non-periodicClients/CustomersOnly when customers prefer the products and servi

219、ces of Chunghwa Telecom could we have value for existence.Customer Privacy Customer Health and Safety Service hotline Customer service centerReal-timeSuppliersThe large product and service chain of Chunghwa Telecom relies on the stable support of the suppliers.Procurement Practices Emissions Supplie

220、r Environment Assessment E-mail Hotline ESG Supplier Conference Environmental education visits Supplier ESG Training Survey Real-time Annually Non-periodicStakeholderMeaning to Chunghwa TelecomFocus GRI TopicsCommunication ChannelCommunication FrequencyLocal CommunitiesWe wish to reciprocate for soc

221、iety with our professional standing in telecom and create a better future.Procurement Practices Energy Customer Privacy E-mail Hotline Stakeholder forum Real-time Non-periodicMedia/Accreditation InstitutesWe have learned and grown with the media and accreditation institutes through their mentorship

222、in sustainable development.Anti-corruption E-mail Hotline Press release Press conference Real-time Non-periodicCompetent Authorities/GovernmentOur products,services and related marketing behaviors are subject to audits by the competent authority.Energy Emissions Customer Health and Safety Public hea

223、rings/press conferences Negotiations/business inspections E-mail Official documents Meetings Telephone hotline Visits Real-time Non-periodicCompetitorsAs the leading brand in the telecom industry in Taiwan,we strive to engage in fair competition in the industry for a healthy development of the indus

224、try.Economic Performance Official document Meeting Telephone call Real-time Non-periodicthat is regarded as an essential reference for the disclosures in the report.Important mechanisms for collecting and compiling the opinions of internal and external stakeholders include:ESG report consultation me

225、etings with external professionals Periodic invitations to external professionals to the ESG Conference and relevant forums Annual ESG Supplier Conference We established the Sustainable Development Committee to implement sustainability action plans and promote low-carbon transformation following the

226、 Companys sustainable development strategies.Designated CHT Foundation specialists facilitate NGO and NPO exchanges CHT was the first to create ESG videos and developed the official CHT YouTube ESG program to record the implementation of ESG action regularly and collect internal and external feedbac

227、k for further improvement*ESG Video Link*Communication Channels*Stakeholder engagement results in 2023,as approved by the Board of Directors*Chunghwa Telecom Stakeholder Engagement Guidelines38 2023 ESG Results of Critical Stakeholders Engagement37 Engagement Policy and Management404141GOVERNANCESOC

228、IALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL2023 Sustainable Supply Chain SummitESG HighlightsChunghwa Telecom and its media partners co-organized the 2023 Sustainable Supply Chain Submit.With smart and green for the future as th

229、e through line,the summit was attended by 150 participants,among whom were business leaders from across the globe who shared their experience in managing carbon reduction and technology empowerment.The summit helped participants form a better understanding of net zero emissions and encouraged our IC

230、T industry partners to foster a sustainable low-carbon ecosystem.Annual Key Stakeholder ESG Engagement Outcomes2023 Annual ESG Supplier ConferenceESG HighlightsAttended by 130 supplier executives,the 2023 CHT Annual ESG Supplier Conference,subtitled Join Hands to Safeguard Ecosystems and Work Toward

231、s a Net-Zero Future,provided a venue for the Company and its suppliers to discuss topics related to biodiversity and energy conservation.To promote ESG and information transparency,CHT President Chau-Young Lin awarded Gold Level Certified Supplier Certificates to 18 outstanding suppliers at the conf

232、erence.Chunghwa Telecom will continue to implement sustainable practices and work with its partners to pursue low-carbon transformation and create a sustainable digital world for Taiwan.7 labor-management conferences(to deliberate on 71 proposals)6 negotiation meetings(to deliberate on 60 proposals)

233、89 emails from employees,all of which have been addressed on timeEmployeesShareholders/InvestorsClients/CustomersCompetent Authorities/GovernmentCompetitorsMediaLocal CommunitiesSuppliers 1 annual general meeting 730 calls from shareholders answered 4 earning results conferences 7 NDR and broker inv

234、estor conferences 24 visits/teleconferences with investors Approx.34.86 million cases served by all channels of customer service(including the customer service hotline,customer grievance,call-out care,and text-based customer service chatbot service)13.67 million tickets received 29.53 million cases

235、of customer business accepted 9 press conferences/public hearings 1,208 appeals and 130 negotiation meetings completed 174 business inspections 346 press releases in total 27 press conferences in total Environmental sustainability education visits to 45 companies,with a total of 70 suppliers parti-c

236、ipating 130 suppliers participating in the 2023 Annual ESG Supplier Conference 2 green gold workshops held for 105 representatives from 72 suppliers 87 conferences attended Click Taiwan:Co-organized with NCCU Department of Radio&Television and 22 local communities Click Taiwan Innovation Design Acti

237、on:Co-organized with 3 local communities GDN Little Directors:Co-organized with 11 local communities38 2023 ESG Results of Critical Stakeholders Engagement37 Engagement Policy and Management43GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEW

238、CONTENTENVIRONMENTALEnvironmental Group p.43Key Environmental Performance Data p.44Climate Strategy and Management p.46Biodiversity p.54Water p.58Waste p.60Energy Resources p.64Environmental Sustaninablity Actions p.665EnvironmentalRESPONSIBILITYWith becoming a green corporation as our sustainabilit

239、y goal,we established an Environmental Division under the Sustainable Development Execution Committee to be in charge of setting short-,medium-,and long-term goals in our operational plans for net zero emissions,energy conservation,and environmental sustainability.We also formulated internal environ

240、mental protection guidelines and green energy/GHG reduction goals.STRATEGYImprove energy efficiency and increase use of renewable energyDevelop an in-house smart energy management system to effectively control carbon emissionsActively seek resource recycling and reuse opportunitiesThe SDGs CHT contr

241、ibutes to in this chapter Environmental Group4342444545GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL4545 Key Environmental Performance Data Environmental Information DisclosuresImplement Green EnergyImprove Energy Use

242、 EfficiencyAutonomous Environmental ProtectionValue-Added Products and Services Annual Execution of 100%Greenhouse Gas Inventory at All Operation Sites with External Verification Statements Responded to the annual Carbon Disclosure Project(CDP)questionnaire and receive an A rating(highest possible r

243、ating)Signed on as a supporter of the Task Force on Climate-related Financial Disclosures(TCFD)initiative,certified at the highest level in TCFD Conformity Check for 4 consecutive years Signing the Chunghwa Telecom Biodiversity and No Deforestation Commitment Constructed 5,557 kWp of photovoltaic sy

244、stems by the end of 2023 Total use of Renewable Energy:73.575 MWh Acquired 73,541 Taiwan Renewable Energy Certificates Replaced old vehicles with environmentally friendly ones,and introduced electric vehicles Sponsored the construction of the YouBike station at the corner of Xinyi Road and Hangzhou

245、South Road Promoted clean homes,energy-saving offices,car-free days,and paperless Office Document Automation System(ODAS)Taiwan Energy Conservation Patrol:focus on increasing energy efficiency within small and medium enterprises and institutions for the disadvantaged Set industrial waste reduction a

246、nd recycling targets Only in the industry in Taiwan:Syntrend store acquired EPA Carbon Label for Services Promoted e-billing in conjunction with marketing promotion that stressed eco-friendliness,energy-savings,and emission reductions Electronic invoicing:invoice data were prepared for permanent clo

247、ud storage to save on material and human resources and receive preferential tax treatment as an incentive and exemption from fines by the government iEN smart energy-saving services and promotion of energy-saving products Recycled 11.551 metric tons of used smartphones(91.42%recycling rate)MOD Set-T

248、op Box obtained ISO 14067 Carbon Footprint of ProductsThe PUE value of IDC data centers has decreased from the 2020 baseline of 1.67 to 1.63 in 2023.Environmental Management ExpensesItem202120222023Environmental management expense(NT$thousand)330,550 348,375365,284 Turnover(NT$thousand)210,477,947 2

249、16,739,234 223,199,260 Accounted percentage of turnover(%)0.157 0.1607 0.1637 Initiative ActionShort-term TargetMid-term TargetLong-term TargetStatusEV100Replace 30%50%of business and construction vehicles with new electric vehicles between 2024 and 2026100%procurement of electric vehicles by 2027Ac

250、hieving 100%Electrification of Engineering and Public Transport Vehicles by 2030On scheduleSBTi 10.1%decrease in scope 1&2 emissions by 2024(vs.2020 levels)7.5%decrease in scope 3 emissions by 2024(vs.2021 levels)50%decrease in scope 1&2 emissions by 2030(vs.2020 levels)22.5%decrease in scope 3 emis

251、sions by 2030(vs.2021 levels)Net zero by 2050On schedulePUE values of IDCs1.611.551.5On scheduleRate of Renewable Energy Use-2030:100%renewable energy used in IDCsRE100(100%of operating sites using renewable energy)by 2040On schedule4446 Climate Strategy and Management54 Biodiversity43 Environmental

252、 Group58 Water60 Waste64 Energy Resources66 Environmental Sustaninablity Actions44 Key Environmental Performance Data 464747GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL464747 Climate Strategy and ManagementChunghwa T

253、elecom recognizes that climate change poses both challenges and opportunities for the telecommunications industry.We closely monitor global climate change developments and adopt Science Based Targets(SBTi)for scientifically quantified carbon reduction.Our dual strategies of technology-driven carbon

254、reduction and renewable energy usage underpin our commitment to 100%renewable energy by 2040 and achieving net-zero emissions by 2050,aligning with global climate goalsCritical Climate Action2020Base YearBase YearScope 1&2 Scope 3 1.70%3.70%2.50%2024202220262028202120252023202720292030 6.50%5.00%10.

255、10%7.50%14.50%10.00%26.00%15.00%33.00%17.50%41.00%20.00%50.00%22.50%20.00%12.50%Action ItemDescriptionSet Science-Based Targets Initiative(SBTi)We became officially certified by the Science-Based Targets Initiative(SBTi)in 2023 for our GHG reduction targets We aim to cut Scopes 1 and 2 GHG emissions

256、 by 50%by 2030(vs.2020 levels)and cut Scope 3 GHG emissions by 22.5%(vs.2021 levels)by 2030.Pledge to achieve net zero emissions by 2050 in line with the Special Report on Global Warming of 1.5 C published by the United Nations Intergovernmental Panel on Climate Change(IPCC).Internal Carbon Pricing

257、and Internal Carbon Fee Fund Internal Carbon Fee Fund:We established an internal carbon pricing system with NT$1,600 per tCO2e as the base price for cost calculations.67 Internal Carbon Fee Fund projects amounting to NT$600 million were approved in 2023 to support R&D in innovative carbon reduction

258、technologies and solutions.The Internal Carbon Fee Fund is intended to support not only carbon reduction initiatives but business transformation.We hope to expand our lineup of sustainable products and services through the innovation of low-carbon technologies.RE100 We officially joined the RE100 in

259、itiative in May 2023 with a pledge to reach 100%company-wide renewable energy use by 2040 We are actively investing in renewable energy.In 2023,we installed 69 in-house solar power facilities.In 2023 we generated 73.575 MWh of renewable energyTechnology-based Carbon Reduction Technology-based carbon

260、 reduction strategy Introduction of new 5G C-RAN architecture to improve cell tower energy efficiency and overall network performance Closing down of 3G networks to reduce energy consumption In-house development of a smart energy operations center(EOC)capable of automatic data collection and analysi

261、s for real-time energy efficiency improvements Improvements to power usage effectiveness(PUE)at IDCs;implementation and promotion of Voice over Internet Protocol(VoIP)technology Service as a board member of IOWN Global Forum,Inc.Implementation of an all-optical network strategy to achieve the follow

262、ing sustainability goals:100 x energy efficiency,125x bandwidth capacity,200 x lower latencyCarbon emissions trading Active participation in carbon emissions trading:We were among the buyers of the first batch of carbon credits issued by the Taiwan Carbon Solution Exchange(TCX)We purchased 3,000 met

263、ric tons worth of carbon credits for our 2020 solar power project and obtained Gold Standard certification.We plan to use the credits to offset our products carbon footprint following ISO 14068-1.2030 Carbon Reduction PathwayIn response to climate change and global warming,Chunghwa Telecom actively

264、participates in domestic and international net zero initiatives in support of the Paris Agreement,which hopes to limit global warming to under 1.5C.In July 2023,we received SBT certification for our near-term GHG reduction goal.We also joined the RE100 initiative and pledged to meet the following ta

265、rgets by implementing a series of carbon reduction projects:Absolute Scopes 1&2 emissions down 50%by 2030 (compared to base year 2020 levels)Absolute Scope 3 emissions down 22.5%by 2030 (compared to base year 2021 levels)100%use of renewable energy at IDCs by 2030 RE100 across all sites by 2040Scien

266、ce Based Targets(SBT)for Carbon Reduction54 Biodiversity43 Environmental Group44 Key Environmental Performance Data 58 Water60 Waste64 Energy Resources66 Environmental Sustaninablity Actions46 Climate Strategy and Management 484949GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUST

267、AINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL484949TCFD FrameworkDisclosureDescriptionRisk Management(6)Describe the organizations processes for identifying and assessing climate-related risks.Following TCFD guidelines,we collected and reviewed industry risk reports from around the wor

268、ld and policies and regulations formulated by the Taiwan government to identify medium-to long-term climate risks and opportunities.We formulated a set of climate risk evaluation procedures following ISO 31000(risk management standards)and classified risks into three levels(high,medium,and low)based

269、 on their likelihood and impact.(7)Describe the organizations processes for managing The Risk Management Committee,a Board-level functional committee,was established in 2023 to enhance board members accountability and the Companys risk management system.(8)Describe how processes for identifying,asse

270、ssing,and managing climate-related risks are integrated into the organizations overall risk management.The Environmental Division of the Sustainable Development Execution Committee regularly reports analysis results to the Risk Management Committee,which reviews climate change and associated risks t

271、o implement mitigation measures.TCFD implementation results,including risk assessments,are regularly reported at Execution Committee meetings and periodically to the Board of Directors as needed.Metrics and Targets(9)Disclose the metrics used by the organization to assess climate-related risks and o

272、pportunities in line with its strategy and risk management process.Climate risk mitigation:Greenhouse gas emissions(Scopes 1,2 and 3)Climate risk mitigation:Severity of climate-related disasters Climate opportunities:Green products and services(10)Disclose Scope 1,Scope 2,and,if appropriate,Scope 3

273、greenhouse gas(GHG)emissions,and the related risks.Scope 1 GHG emissions:18,874.8892 t-CO2e Scope 2 GHG emissions:645,490.6474 t-CO2e Scope 3 GHG emissions:1,814,662.2596 t-CO2e(11)Describe the targets used by the organization to manage climate-related risks and opportunities and performance against

274、 targets.Climate risk mitigation:Ultimate goal:Net zero by 2050 Scopes 1&2:Reduce by 50%by 2030 compared to 2020 levels(15.94%reduction achieved in 2023,on track)Scope 3:Reduce by 22.5%by 2030 compared to 2021 levels(5.76%reduction achieved in 2023,on track)Climate risk mitigation:Severity of climat

275、e-related disasters Goal-setting based on short-,medium-,and long-term climate change mitigation plans For outcomes in 2023,please refer to Chunghwa Telecoms Short,Medium,and Long-term Climate Change Adaptation PlansClimate opportunities:green products and services In 2023,CHT gained NT$16,799 milli

276、on in revenue from its main green products,including Cloud services and IoT services(e.g.,iEN,IVS,ITS,and smart buildings).It is projected to grow by an average of over 2.6%per year and produce a cumulative income of NT$53,250 million in the next 3 years.Task Force on Climate-Related Financial Discl

277、osuresChunghwa Telecom was the first telecom company in Taiwan to sign on as a supporter of the Task Force on Climate-related Financial Disclosures(TCFD)initiative.Since 2020,CHT has utilized the TCFD framework to conduct analyses of climate risks and opportunities to promote climate change mitigati

278、on and adaptation for an ongoing reduction of operational risks for the Company and to encourage other industries to create low-carbon business opportunities.Furthermore,CHT was the first telecom carrier in the world to pass the TCFD Conformity Check and has been certified at the highest level(Level

279、 5+:Excellence)in the TCFD Conformity Check for 4 consecutive years.*For more information about TCFD,please refer to the Chunghwa Telecom TCFD reportTCFD FrameworkDisclosureDescriptionGovernance(1)Describe the Boards oversight of climate-related risks and opportunities.In 2023,a Board-level Risk Man

280、agement Committee was established to enhance board functions and risk management,comprising seven directors to discuss key corporate and climate risks.The Sustainable Development Committee and Strategy Committee merged into the Board-level Sustainable Development and Strategy Committee,the highest g

281、uiding body for sustainability.This committee meets quarterly to guide sustainability vision,policies,and goals.Dual mechanisms of the Sustainable Development and Strategy Committee and the Sustainable Development Promotion Committee,along with internal controls and risk management,ensure quarterly

282、reports to the Board,strengthening oversight on climate change issues.(2)Describe managements role in assessing and managing risks and opportunities.The Environmental Division of the Sustainable Development Execution Committee plans and implements climate change and carbon management actions,alignin

283、g with Board and Sustainable Development Committee strategies,international investment and rating requirements,and stakeholder needs.Strategy(3)Describe the climate-related risks and opportunities the organization has identified over the short,medium,and long term.We identified 11 climate risks in 2

284、023(3 were high-risk,3 medium-risk,and 5 low-risk)Key high-risk factors include the impact of the 2050 net-zero emissions policy and changes in Taiwans energy structure,leading to increased electricity costs,and the rising frequency and severity of typhoons and heavy rainfall,causing potential damag

285、e to facilities and equipment.Main climate opportunities:Development of new energy sources and green products/services(4)Describe the impact of climate-related risks and opportunities on the organizations businesses,strategy,and financial planning.We have determined corresponding measures for and fi

286、nancial impacts of each climate risk and opportunity.Evaluation items include climate-related risks and opportunities,direct costs,indirect costs,capital expenditures,capital allocation,acquisitions and divestment,financing channels,and assets and liabilities(5)Describe the resilience of the organiz

287、ations strategy,taking into consideration different climate-related scenarios We analyzed the short-,medium-,and long-term climate change risks and opportunities throughout our product life cycle(including upstream and downstream activities)under IEA STEPs(baseline scenario)and IEA NZE(+1.5C scenari

288、o).Climate mitigation strategy(transitional risks)under IEA STEPs(baseline scenario)and IEA NZE(+1.5C scenario)Climate mitigation strategy(physical risks)under IPCC SSP5-8.5(baseline scenario)and IPCC SSP1-2.6(+1.5C scenario)54 Biodiversity43 Environmental Group44 Key Environmental Performance Data

289、58 Water60 Waste64 Energy Resources66 Environmental Sustaninablity Actions46 Climate Strategy and Management 505151GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL505151Climate Transition PlanExtreme weather events like

290、typhoons and floods can damage telecommunication facilities(including cell towers),disrupting communications,incurring repair costs,and affecting business.Long-term climate changes,such as global warming,altered precipitation patterns,and rising sea levels,can increase air-conditioning costs,damage

291、key assets,and cause operational interruptions.To address these risks,we have implemented climate transition plans:Greenhouse Gas Emissions ManagementChunghwa Telecom conducted its first GHG inventory in 2008,becoming Taiwans first company to implement the ISO 14064-1 GHG protocol and receive ISO 14

292、064-1 assurance from a third-party auditor.For 16 consecutive years,our voluntary GHG inventory has covered every site.We plan to expand this inventory to include our value chain partners,aiming to establish a robust IT foundation for systematic GHG reduction management.Indicators and Targets for Id

293、entifying and Managing RisksRisksIndicatorsTargetsPhysical riskSeverity of climate-related disastersTo protect telecommunications equipment and facilities from climate-related disasters,we formulated our first climate change mitigation plan in 2020 to address short-term(13 years),medium-term(38 year

294、s),and long-term(8 years)risks.The plan covers all current and planned sites and ICT equipment across Taiwan.For equipment-specific goals,please refer to the TCFD-based Short-,Medium-,and Long-Term Climate-Related Risk Mitigation Plan.Transition riskGreenhouse Gas Emissions50%reduction in Scope 1&2

295、emissions by 2030(vs.2020),22.5%reduction in Scope 3 emissions by 2030(vs.2021),and net zero emissions by 2050Use of Renewable EnergyAchieve RE100 by 2024PUE of IDCPUE down to 1.5 by 2030 across all data centersItem202120222023CoverageDirect emissions(Scope 1)t-CO2e17,887.4701 19,185.3151 18,874.889

296、2 Reporting entityIndirect emissions(Scope 2)t-CO2e716,979.2586694,912.7210645,490.6474 Other Indirect emissions(Scope 3)t-CO2e1,456,835.3440 1,827,858.7749 1,814,662.2596 Total emissions(Scope 1+Scope 2)t-CO2e734,866.7287 714,098.0361 664,365.5366 Total emissions(Scope 1+Scope 2+Scope 3)t-CO2e2,191

297、,702.0727 2,541,956.811 2,479,027.7962 Revenues NT$in million178,843.350182,254.339 188,729.545 Emission Intensity ratio(Scope 1+Scope 2)t-CO2e/NT$in million4.11 3.92 3.52Emission Intensity ratio(Scope 1+Scope 2+Scope 3)t-CO2e/NT$in million12.26 13.95 13.14 Emission Intensity(Scope 1+Scope 2)t-CO2e/

298、number of full-time employees 28.08 27.35 25.26 Emission Intensity(Scope 3)t-CO2e/number of full-time employees55.66 70.00 68.98 Notes:1.Indirect emissions(Scope 2)are calculated based on market-based standards.2.Our telecommunications industry does not emit ozone-depleting substances or other signi

299、ficant pollutants.3.Emission intensity is calculated based on the number of full-time employees at Chunghwa Telecom and long-term workers at Chunghwa International within the organization.1.Improving Energy Efficiency:Enhancing IDC power efficiency,replacing outdated equipment,optimizing facilities,

300、and continuously improving product energy efficiency.2.Renewable Energy:Building and purchasing renewable energy and developing energy storage facilities.3.Technology-based Carbon Reduction:Developing smart energy conservation and IDC air conditioning monitoring systems for dynamic energy management

301、 and carbon reduction.4.Internal Carbon Pricing:Establishing a carbon tax fund to encourage innovative carbon reduction projects and low-carbon products.These plans aim to enhance energy efficiency,and asset resilience,and reduce operating costs.We are also developing low-carbon products to meet cli

302、ents net-zero standards and explore the low-carbon market.Additionally,we support the governments Green Growth energy transformation policy by pioneering a smart energy business model integrating AIoT,big data analytics,and energy-as-a-service(EaaS)solutions,providing innovative energy solutions for

303、 Taiwanese businesses.505154 Biodiversity43 Environmental Group44 Key Environmental Performance Data 58 Water60 Waste64 Energy Resources66 Environmental Sustaninablity Actions46 Climate Strategy and Management 525353GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANA

304、GEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL535324.049 MWh（1.67%）18.9 MWh24,029 Usage of Renewable Energy of all Company Usage of Renewable Energy in IDC Number of T-RECs 20222022202220232023202373.575 MWh（5.16%）66.94 MWh73,541 reduce 76,000 t-CO2e（9.6%）Value ChainCategoryItemEmissionsUpstream3Upstr

305、eam transportation and distribution1,332.5493Downstream transportation and distribution56.5917 Business travel2,948.2363 Employee commuting6,550.9741 4Purchased goods and services721,023.7360 Capital goods471,191.2877 Fuel-and energy-related activities130,772.6964 Waste generated in operations936.19

306、23 Upstream leased assets17,728.1869 Downstream5Use of sold products449,619.6431 End-of-life treatment of sold products594.9099 Downstream leased assets10,346.9498 Investments1,560.3061 Total1,814,662.2596 Scope 3 Inventory and Verification Unit:t-CO2e2023 Carbon Reduction ProgressTo achieve our str

307、ategic goals in carbon reduction and climate issues,we are committed to reducing carbon emissions,diversifying our renewable energy portfolio,and obtaining state-issued renewable energy certificates(Taiwan-RECs,or T-RECs).Notes:1.Carbon Emissions:Emissions from Scope 1+Scope 2.2.Total Renewable Ener

308、gy Usage:Includes self-generated and self-consumed energy,and energy from corporate Power Purchase Agreements(PPAs).3.Baseline Year Explanation:The target is to reduce Scope 1+Scope 2 carbon emissions by 50%by 2030 compared to the 2020 baseline,approved by the Science Based Targets initiative(SBTi)a

309、nd aligned with the 1.5 C goal.T-RECs IDCCarbon Emissions(Compared to 2020 base year)20222023reduce 125,900 t-CO2e（15.94%）5254 Biodiversity43 Environmental Group44 Key Environmental Performance Data 58 Water60 Waste64 Energy Resources66 Environmental Sustaninablity Actions46 Climate Strategy and Man

310、agement 545555GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL55 BiodiversityCommitmentIn todays digital era,telecommunications extend beyond service provision,driving economic,cultural,and societal growth.With the rapid

311、 development of 5G and digital transformation,our activities impact the ecosystem.For instance,ICT infrastructure expansions can threaten natural habitats and resources,while energy consumption and electronic waste pose additional challenges.Minor business decisions can significantly affect biodiver

312、sity and ecological balance.Recognizing our responsibility,we actively engage in environmental protection to support biodiversity and zero deforestation,aligning with the UN 2030 Agenda and Vision 2050.In June 2023,CHT Chairman Shui-Yi Kuo signed the Biodiversity and Zero Deforestation Commitment.Th

313、is commitment involves CHT,its tier-1 and non-tier-1 suppliers,and partners in preserving biodiversity,avoiding deforestation,restoring forests,and supporting UN SDGs 6,12,13,14,and 15.*For more information on Biodiversity,please refer to Chunghwa Telecom Biodiversity and No Deforestation Commitment

314、 atThe Biodiversity and Zero Deforestation Commitment is summarized below:The Company will avoid expanding operations in key biodiversity areas and will follow local environmental p r ot e c t i o n r e g u l a t i o n s o n conducting environmental impact analyses to ensure that there is no net los

315、s in such areas.In keeping with the goal of no net deforestation by 2030,the Company will conduct an inventory to reduce its use of forest resources and carry out reforestation.The Company will enhance the awareness of stakeholders about the importance of biodiversity and forest conservation.The Com

316、pany will participate in major local and international biodiversity initiatives and collaborate with experts to plan strategies.The Company will regularly dis-close its progress towards biodiversity and no deforestation on our company website or in sustainability reports.T h e C o m p a n y will des

317、ignate 2024 as the base year of its biodiversity commitment and will formulate a long-term biodiversity path,publish TNFD compliance reports,and develop ICT-based solutions.The Company will conduct bio-diversity risk analyses based on its current use of natural resources to reach the Net Positive Im

318、pact by 2030 goal.2456354551746 Climate Strategy and Management43 Environmental Group44 Key Environmental Performance Data 58 Water60 Waste64 Energy Resources66 Environmental Sustaninablity Actions54 Biodiversity565757GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MA

319、NAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL565757Biodiversity Main ActionsThe CHT 100 Preservation ProjectAs part of our Plant Ark Program collaboration with the Taiwan Forest Research Institute,we launched the CHT 100 Preservation Project with the following goals:1 Inventory ecological character

320、istics and assess species recovery potential at operating sites.2 Formulate standard operating procedures(SOPs)for species preservation,including species selection,culturing,plantation,management,and monitoring.3 Establish a species preservation demo site,selecting an appropriate location and revisi

321、ng the SOPs as needed.4 Conduct internal training programs for employees and preservation forums to share project achievements.Biodiversity and Zero Deforestation Commitment for Suppliers1 In the Chunghwa Telecom Co.,Ltd.Supplier Code of Conduct,suppliers are encouraged to support the Biodiversity a

322、nd No Deforestation Commitment and complete the annual key supplier training.2 Partnered with 8 key suppliers,including Ericsson Taiwan,Sercomm Corporation,and Zyxel Communications,Chunghwa Telecom has collectively signed the Biodiversity and No Deforestation Commitment.Biodiversity Strategic Bluepr

323、int and PathwaysShort-,Medium-,and Long-Term GoalsWe have formulated the following four major strategies in preparation for our net positive impact(NPI)and no net deforestation(NND)goals by 2030:1 Science-based targets:We established a science-based target evaluation mechanism and developed and are

324、implementing mitigation measures 2 Zero deforestation:We are eliminating the use of resources/products that cause deforestation and we promote zero deforestation initiatives 3 Net positive impact:We participate in net positive associations and promote net positive initiatives 4 Nature-positive mains

325、treaming:We are setting an example of a nature-positive business and promoting nature-positive mainstreamingBiodiversity Considerations in Cell Tower Site SelectionWe commit to considering biodiversity factors and taking necessary mitigation measures in selecting sites for cell towers and base stati

326、ons to minimize environmental impacts.1 Site Selection(1.)Utilize TNFDs Location Assessment Tools to assess environmental impact,ensuring sites are not in protected areas and identifying endangered species(IUCN Red List)in surrounding areas.(2.)For projects near biodiversity-sensitive areas,conduct

327、stringent environmental impact assessments per regulations,evaluate the projects impact on biodiversity and forestation,and develop mitigation plans.2 Construction(1.)Apply TNFD LEAP tools to develop indices for surveying,evaluating,and monitoring environmental impacts.(2.)Adopt the SBTi AR3T framew

328、ork to minimize impacts on threatened or endangered plant species,protecting the local ecosystem.Supplier Environmental Education-Biodiversity1 In 2016,CHT became the first in the industry to offer environmental education programs for suppliers.2 In 2023,we took 70 representatives from 45 suppliers

329、to visit the Luodong Water Resource Recycling Center and Cardinal Tien Junior College of Healthcare and Management in Yilan County.3 We organize biodiversity workshops to promote green energy,organic food,water conservation,and environmental protection,encouraging our suppliers to incorporate sustai

330、nable thinking into their day-to-day operations while promoting the sustainable development of local communities.*Video46 Climate Strategy and Management43 Environmental Group44 Key Environmental Performance Data 58 Water60 Waste64 Energy Resources66 Environmental Sustaninablity Actions54 Biodiversi

331、ty585959GOVERNANCESOCIALMATERIAL TOPICSAND IMPACTSSTAKEHOLDERS ENGAGEMENTSUSTAINABILITY MANAGEMENTCORPORATE OVERVIEWCONTENTENVIRONMENTAL585959 WaterChunghwa Telecom primarily uses water for general office needs and air conditioning.Our in-house EARTH system records and analyzes water usage in real t

332、ime,detecting abnormalities and serving as a centralized water management system across Taiwan.To enhance water resource management,we developed a smart water meter monitoring platform using IoT technology.This platform retrieves water meter readings,collects and stores usage data,issues advance war

333、nings,generates statistics and analytics,projects water usage,and enables systematic management and maintenance.This automation has improved our water management process,helping us achieve our annual water efficiency goals.Water efficiency managementTo ensure the effective use of water resources,we formulated a water efficiency plan in which we set a 1%annual reduction target(with 2020 as the base