Chunghwa Telecom : is recognized by the Dow Jones Sustainability World Index as No.1 of the world-class telecommunication sustainability leaders, 12 ESG indicators achieved a perfect score of 100

S&P Dow Jones Indices and RobecoSAM announced today that Chunghwa Telecom has been once again included in the Dow Jones Sustainability Indices (DJSI) -World Index 2023, ranking first among the evaluated companies in the global telecommunications industry. Chunghwa Telecom has also been named to DJSI Emerging Market Index for a 12th consecutive year, proving its strong position as an international industry leader with outstanding performance in all aspects of ESG governance.

Creating a unique green sustainable business model with ESG as the core

DJSI is one of the globally renowned ESG (Environmental, Social, and Governance) sustainability ratings. Chunghwa Telecom has once again been included into DJSI World Index and ranked as the top-rated company in the global telecommunications company. Regarding to its ESG 25 assessments, 12 indicators are achieved a perfect score of 100 , including transparency reporting, business ethics, tax strategy, information security, innovation management, environmental governance policies, emissions, resource efficiency and circularity, human rights governance, occupational health and safety, privacy protection, and stakeholder engagement. In all 100 evaluation questions, 67 of them have received a perfect score of 100, the highest of the global telecommunications industry.

In terms of the environmental action, Chunghwa Telecom has been highly recognized for its active participation in international organizations, response to international initiatives on carbon reduction and biodiversity, precise implementation of carbon reduction through ICT technology. In terms of social impact, the company continues to expand its positive influence and innovative systems to take care of its employees. In terms of corporate governance, the company commits to continuously improve with integrity and transparency. Chunghwa Telecom has earned recognition in all aspects of ESG (Environmental, Social, and Governance) performance in this regard.

The Chairman Shui-Yi Kuo states that Chunghwa Telecom's performance is successful alignment with the United Nations Sustainable Development Goals (SDGs). Chunghwa Telecom connects low-carbon environment, social development, and corporate governance with its core ICT capabilities, practicing its four core values of integrity, customer trust, innovation, and accountability. By leveraging its core assets and resources in customer partnerships, technology platforms, infrastructure networks, and high-quality talents, Chunghwa Telecom is building a trusted digital ecosystem that creates value for customers, strategic partners, shareholders, and employees.

Engaging in Forest Restoration and Afforestation

The Chairman Shui-Yi Kuo indicates that in response to the escalating global environmental deterioration, Chunghwa Telecom actively integrates environmental issues into its business operations and management. It is committed to achieving a net positive impact on biodiversity and the goal of no net deforestation by 2030. The company continues to invest resources in forest restoration, planning to plant 150,000 trees across Taiwan over eight years. It aims to implement the United Nations' "Post-2020 Global Biodiversity Framework" to achieve the milestone of reversing biodiversity loss by 2030 and the vision of harmonious coexistence between humans and nature by 2050.

Implementing Internal Carbon Pricing as the First in the Industry

The President Ivan Lin points out that Chunghwa Telecom is a key member of the global renewable energy initiative RE100 and has been verified by the Science Based Targets initiative (SBTi) for its greenhouse gas reduction targets. The company is committed to achieving IDC full adoption of renewable energy by 2030, 100% renewable energy usage by 2040 and comprehensive net-zero emissions by 2050. It is also the first in the industry to implement an internal carbon fee mechanism, actively promoting low-carbon operations. Chunghwa Telecom has introduced energy-efficient equipment, optimized its mobile network architecture, and implemented smart energy-saving measures, such as shutting down inefficient 3G base stations. Energy-saving and carbon reduction are also incorporated into annual key performance indicators. In 2023, the company organized the inaugural "ESG Green and Gold Workshop for Suppliers," leading its partners to align with ESG and transition towards sustainability and low-carbon practices.

Pioneering the Implementation of Childcare Working Hours and Establishing Education and Care Centers as ESG Leader in Taiwan

The Chairman Shui-Yi Kuo emphasizes that Chunghwa Telecom regards employees as important assets and believes that the happiness and well-being of employees' families are crucial driving forces for the company's sustainable development. Therefore, Chunghwa Telecom is committed to implementing employee and family care, encouraging employees to balance work and family life.

For example, in 2022, Chunghwa Telecom launched the first-ever childcare reduced working hours system in Taiwan. Employees with children under the age of 3 can apply to reduce their daily working hours by 1 hour (without salary deuction). This initiative received enthusiastic responses from employees, and the company plans to expand its implementation starting from 2024, allowing employees with children under the age of 6 to apply.

Starting from 2024, all employees will also receive a fixed salary increase and food allowances starting from July. At the same time, Chunghwa Telecom actively builds a diverse, inclusive, and friendly workplace environment. It provides various employee benefits such as travel subsidies, vacation allowances, sports activity fees, nationwide clubhouses, as well as caring and welfare programs for employees' families. These include marriage and childbirth subsidies, childcare allowances for aged 0-6, and education subsidies depending on the educational level and stock trust rewards. In 2024, a "stock trust reward increase" retention program will be launched, providing multiple options. In addition to stock trust, employees can also choose welfare savings trust plans.

The company has also established 9 workplace-based childcare centers with 16 classes in the six major cities, providing care for children aged 2 to 6, catering to employees' childcare needs. With parents working upstairs and children studying downstairs, they can go to work and school hand in hand, providing convenience and peace of mind for both parents and children.

Building a Diverse, Inclusive, and Harmonious Societythrough Technological Advancements

Chunghwa Telecom is committed to deepening social inclusion through its technological capabilities, striving to creating a diverse, inclusive, and harmonious society. It has been promoting quality education (SDG4) and reducing inequality (SDG10) in remote areas for over a decade. It encourages people to "use the internet more and the road less", promotes the community network tutoring service " Read with You", accumulating over 115,000 hours of teaching time to help rural students learn through the internet, reduce educational disparities, and transform their lives. It also collaborates with the Cheng-chi Education Foundation to construct a cloud platform for teachers and students in remote junior high and elementary schools in Hualien and Taitung, enabling them to prepare lessons together and attend classes together, addressing the issue of teacher attrition in remote areas and narrowing the urban-rural education gap, ensuring digital equality in isolated areas.

The company further expands its digital empowerment efforts for vulnerable groups. Through the "iPhone for the Blind" series of courses and the donation of used iPhones, it helps visually impaired friends to learn how to use mobile apps and experience smart living, providing them with smartphones to truly enjoy the convenience of technology in their daily lives.

Integrating ESG into Corporate DNA

With the mission of "internalizing and benefiting together," Chunghwa Telecom integrates ESG (Environmental, Social, and Governance) into its corporate DNA. In 2023, the company has integrated the Strategy Committee and the Sustainable Development Committee into the Sustainable Development and Strategy Committee at the board level, further increasing the board involvement in significant ESG and risk management issues. The company has also linked the CXOs compensations to their ESG performances to show it takes the ESG into account.

The Chairman Shui-Yi Kuo emphasized that Chunghwa Telecom will continue to seek mutual benefits and prosperity with the environment, society, and stakeholders. It will continue to focus on digital transformation, zero emissions and deepening its ESG sustainable practices. By setting various ESG performance goals and implementing action plans, the company aims to exert its influence on sustainable development, strive for becoming an international benchmark for sustainable-based enterprises, leading brand in empowering the digital ecosystem and a top-tier technology conglomerate with a market value far exceeding trillion. The company will pursue to achieve its sustainable vision of "green and low-carbon, digital empowerment, integrity, and transparency," for contributing to the sustainable development of the people, the country, and society.