Chunghwa Telecom : Gear to Global ESG Practice and Apply Technological Carbon Reduction. Chunghwa Telecom Officially Joins RE100. Commits to Use 100% Renewable Energy by 2040.

Chunghwa Telecom announced on May 25 that it officially joined RE100, a global renewable energy initiative led by The Climate Group and in partnership with the Carbon Disclosure Project (CDP). Chunghwa Telecom commits to using 100% renewable energy by 2040. The Company will work together with the world's leading companies to contribute to the sustainable development of the global environment.

Mr. Kuo Shui-Yi, Chairman of Chunghwa Telecom, said, "ESG and sustainable development is Chunghwa Telecom's unwavering commitment, and one of my visions declared on the inauguration is to lead Chunghwa Telecom to become an internationally benchmarked enterprise on the basis of sustainable development. We proactively followed international initiatives and Taiwan's net-zero transition policies, facilitating various measures under the ideals of 'green and low carbon, digital empowerment, as well as integrity and transparency.' In the previously-held successful afforestation campaign, the 'Plant Trees to Celebrate Victory,' jointly announced by Chunghwa Telecom and the world famous badminton player, Tai Tzu-Ying, we promised to expand our nationwide afforestation plan by planting 150 thousand trees within 8 year, demonstrating our efforts of biodiversity conservation. Today, we were pleased to announce that we joined RE100, marking another milestone on the way to sustainability. Going forward, we will continue to leverage our core competence, technologies, profession, resources, abilities and advantages to work with our supply chain and leaders from all walks of life to make concrete commitments to achieving net zero."

Lin Rong-Shy, Chief Technology Officer of Chunghwa Telecom, added, "As the largest Taiwanese integrated telecommunications service provider, Chunghwa Telecom owns the most extensive networks in Taiwan, including 900 telecommunication facilities and over 50,000 mobile base stations that consumes more than 1.4 billion kWh of electricity annually. Currently, the energy consumption continues to grow due to the continuous constructions of internet data centers (IDCs) and mobile base stations along with the vibrant business demand. However, Chunghwa Telecom is confident to achieve the 2040 RE100 target by applying Science Based Targets (SBT) quantified carbon reduction targets, and using the two strategies of 'Technology Carbon Reduction'(energy saving) and 'Using Renewable Energy.' In addition, Chunghwa Telecom pledges to achieve net-zero emissions by 2050 in order to realize its sustainability vision of low-carbon operations and to contribute to the global climate goal."

Alex C.C Chien, President of Network Technology Group of Chunghwa Telecom, further explained, "Chunghwa Telecom owns lots of Information and Communication Technology human resources to drive 'Technology Carbon Reduction' strategy. Currently, 85% of our 5G base stations have adopt the C-RAN (Cloud Radio Access Network) architecture to significantly enhance energy saving. As our 3G network is expected to phase out by 2024, we estimated to achieve around 100 million kWh energy saving annually. We also planed to upgrade voice calls to VoLTE (Voice over LTE), providing customers with enhanced service quality. Our intelligent EOC (Energy Operation Center) was developed to comprehensively and automatically collect and analyze data to capture the energy-saving effect in real-time. In addition, we introduced AI and Big Data technologies based on data of actual conditions, to intelligently analyze and control the power consumption of various types of network equipment (including mobile network base stations) to practice energy saving. We have developed smart operation and maintenance solutions to analyze obstacle data, predict base station degradation trends, improve online troubleshooting rate, and reduce personnel dispatched for inspection and repair. At the same time, Chunghwa Telecom is accelerating the phase-out of old, energy-consuming equipment, improving power usage effectiveness (PUE) in IDC, accelerating IP-based telephone switching networks, etc., to enhance energy-saving and carbon reduction in all aspects of technology. As one of the leading telcos that actively invests in research and development of cutting-edge carbon reduction technologies, Chunghwa Telecom is the exclusive company in Taiwan to jointly initiate the IOWN GF (Innovative Optical and Wireless Network Global Forum) with global technology giants and serve as a board member of the organization. We are actively promoting full-fiber (all-optical) network technology in order to achieve the targets of a 100-fold improvement in energy efficiency, a 125-fold increase in transmission capacity, and a 200-fold reduction in transmission latency."

In terms of using renewable energy, Chunghwa Telecom adopts a two-pronged approach of self-construction and procurement. As of 2022, Chunghwa Telecom has built a total of 55 solar panels with an installation capacity of more than 4.5MWp, and it is expected to increase 10.23MWp in 2023. In terms of procurement of renewable energy, Chunghwa Telecom not only signed a PPA (power purchase agreement) of solar and wind power, which could provide more than 62 million kWh yearly, and also planed to sign a long-term contract for CPPA (corporate renewable power purchase agreements), which will increase the proportion of renewable energy use year by year and contribute to the commitment of RE100.

Chairman Kuo emphasized that Sam Kimmins, Director of Energy at Climate Group, once said Chunghwa Telecom's commitment to 100% renewable electricity by 2040 demonstrates the leadership in the energy transition, and RE100 members all represent a powerful force for positive change. Thus, Chunghwa Telecom set the goal of reducing 50% of emissions of Scope 1, Scope 2, and Scope 3 in 2030 compared to 2020 as well as using 100% renewable energy in IDC in 2030, and achieving net zero emissions by 2050. In addition, officially joining RE100 shew Chunghwa's promise to achieve the goal of using 100% renewable energy by 2040. Chunghwa Telecom will set an example and will continue to implement two major strategies: "Technological Carbon Reduction" and "Using Renewable Energy". These efforts will enable the realization of three major visions: "green and low carbon, digital empowerment, as well as integrity and transparency," and contribute to the sustainable development of the earth, country, and society.

About Chunghwa Telecom

Chunghwa Telecom (TAIEX 2412, NYSE: CHT) ("Chunghwa" or "the Company") is Taiwan's largest integrated telecommunications services company that provides fixed-line, mobile, broadband, and internet services. The Company also provides information and communication technology services to corporate customers with its big data, information security, cloud computing and IDC capabilities, and is expanding its business into innovative technology services such as IoT, AI, etc. Chunghwa has been actively and continuously implemented environmental, social and governance (ESG) initiatives with the goal to achieve sustainability and has won numerous international and domestic awards and recognitions for its ESG commitments and best practices. For more information, please visit our website at www.cht.com.tw