Sustainable Development Organization

To ensure an ongoing, proactive corporate contributions on sustainable development, and to fulfill the expectations of diverse stakeholders, Chunghwa Telecom has established the Sustainable Development and Strategy Committee under the board of directors as the highest governing unit for Chunghwa Telecom 's sustainable development efforts. With Chairman as the Convener, the committee is all composed of directors with more than 50% being independent directors.

To live up to its sustainability/ESG vision and strategies, Chunghwa Telecom established the Sustainable Development Promotion Committee, organized by the management department and with the Chief Sustainability Officer serving as the chairperson. It consists of four working groups: Environmental Group, Social Group 1, Social Group 2, and Governance Group. The committee stays abreast of the sustainable development trends and dynamics at home and abroad, promotes proper action plans, and regularly reports to the Sustainable Development and Strategy Committee, and aims to continuously create value for stakeholders.

Sustainable Development and Strategy Committee

In 2023, the Board of Directors of Chunghwa Telecom resolved to integrate the Sustainable Development Committee with the Strategy Committee into the Sustainable Development and Strategy Committee, which was elevated to be a functional committee under the board of directors.

The committee convenes quarterly to provides strategic guidance on the sustainable development vision, long-term policies and management principles, as well as medium to long-term objectives. (For committee members and organizational regulations, please refer to Board Committees）.

Sustainable Development Promotion Committee

To incorporate the sustainability/ESG strategies into daily business activities, the Sustainable Development Promotion Committee is established under the Sustainable Development and Strategy Committee, composed of the management department and aims to adhere to the Company's overall sustainable development strategy. It promotes various sustainable action plans with “Sustainable Transformation; Low-carbon Net Zero” at the core to create a better living environment for future generations and to contribute more to the sustainable development of industry and society.

Item	Description
Chairperson	Chairman of the Board (Chief Sustainability Officer)
Mechanism	Undertakes the strategies directed by the Sustainable Development and Strategy Committee, drives various action plans, coordinates the division of work, and monitors the progress of implementation. Quarterly, it reports to the board of directors on important issues, stakeholder communication outcomes, achievements in sustainable development promotion, and progress towards goals. Annually, it provides reports to the board of directors' Sustainable Development and Strategy Committee on the promotion of sustainable business activities.
Execution	The Secretariat is composed of the Corporate Communications Department and the Corporate Planning Department. Externally, it is responsible for ESG report and information disclosure, various ratings and awards, participation in exhibitions, and media communications. Internally, it manages cross-group collaboration, goal setting and tracking, and performance evaluation design. The ESG working groups set annual goals and KPIs, collaborating with subsidiaries and affiliated institutions to drive and implement various sustainable development initiatives.
Meeting Frequency	The Promotion Committee meets semi-annually, cross-group meetings are held quarterly, and working group meetings take place monthly.
Key Sustainability Performance	Completion of the 2023 GHG investigations across Chunghwa Telecom’s entire value chain (Scope 1-3) and the subsidiaries’ Scope 1 and Scope 2 Ongoing promotion of internal carbon pricing with a total of NT$983 million of carbon fee fund accumulated, and 100 innovative proposals for energy conservation and carbon reduction, of which 67 were approved and subsidized with NT$600 million, in 2023 Joined RE100 and received validation of GHG reduction near term targets from the Science Based Targets initiative (SBTi) Favorable childcare policies: (1.) childcare allowance for employees with children aged 6 and under (2.) daily working hours reduced by 1 hour for employees with children aged 3 and under (3.) early childhood education center at workplace The flexible working hour extended from 1 hour to 2 hours Launch of Women's Power Star Project to empower women in workplace Linking ESG performance indicators with senior managers' 15% variable compensation Investment in a green and sustainable time deposit Hosting “Senior Management ESG knowledge Courses” to provide ESG education and training for senior managers Conducting "Corporate Sustainability Management Certification Training Program" to actively cultivate comprehensive ESG sustainability management talents

Sustainability Oversight Results of the Board of Directors

The Board of Directors of Chunghwa Telecom plays a crucial role in supervising the Company’s promotion of sustainable development initiatives. It ensures the alignment between Chunghwa Telecom's sustainable/ESG strategies and action plans with the Company's sustainable development goals by means of regular review and performance assessment.

Year	Board Meeting	Key Result
2023	The 4th, 6th, 7th and 8th Session of the 10th Board of Directors	2023 Sustainable Development Promotion Strategies Important sustainability results, awards, progresses on targets and key issues of each quarter in 2022 and 2023 Schedule planning for the GHG investigation and verification of the Group (including subsidiaries) Results of GHG Inventory of the parent company and subsidiaries of Chunghwa Telecom
2023	The 7th Session of the Strategy Committee and the 8th Session of the Sustainable Development and Strategy Committee under the 10th Board of Directors	4 sessions of ESG project report
2024	The 9th and 10th Session of the Sustainable Development and Strategy Committee under the 10th Board of Directors	2024 Sustainable Development Promotion Strategies 1 session of ESG project report

Internalization & Communication of Sustainability

To ensure that all employees of Chunghwa Telecom across Taiwan understand the spirit of corporate sustainability and actively implement it while providing timely feedback and suggestions, we have established multiple communication channels within the company. Through these channels, we promote relevant issues and integrate them into our performance evaluation mechanism. This allows us to translate sustainability concepts into actionable steps and effectively incorporate them into our daily operations.

Channel	Name	Action
Executive Communication	Senior Management Meeting	The material issues of sustainability are regularly submitted to the senior management meeting for discussion before resolutions adopted to improve directions and goals of development.
Employee Communication	Enterprise Information Portal	Chunghwa Telecom provides internal websites/systems for employees to submit suggestions or innovative ideas, allowing us to gather feedback and ideas from our employees. We also have an employee forum where they can openly express their opinions and concerns. Additionally, we have established channels for public complaints and reports, ensuring that employees have access to a designated platform for reporting any misconduct or issues.
Employee Training	Environmental Training	5G Plastic Free Environmental Education for volunteer training was conducted in cities such as Taichung and Kaohsiung to communicate the ideas of environmental sustainability.
	Corporate Sustainability Education and Training	The Corporate sustainability-related courses are conducted, and external consultants are invited for education and exchange in line with the international trends every year.
	New Recruit Training	Chunghwa Telecom conducts digital training courses and growth camps for new employees to educate them on corporate values, personnel policies, work rules, and labor-management relations. These programs aim to provide comprehensive knowledge and understanding of the company's culture, values, and operational guidelines. By equipping new employees with this information, we ensure they are well-prepared to integrate into the organization, align with its mission, and contribute to its success. These training initiatives also promote a positive and inclusive work environment and foster strong employee engagement and satisfaction.
	e-Learning	Courses, timely information, and announcements are available to the employees anytime on the e-Learning system.
Annual Appraisal	Administrative Sustainability Performance	The sustainable development goals are incorporated in the annual management performance evaluation as the basis for departmental implementation performance appraisal.
	Online Test on CoC	Promotion and tests on the Code of Conduct, Ethical Corporate Management Best Practice Principles, and Insider Trading Prevention are conducted yearly.
	Reporting mechanism	Employees in violation of the Code of Conduct and Ethical Corporate Management Best Practice Principles are subject to disciplinary action in accordance with the corporate regulations upon verified as true.
Others	Sustainability ESG Report Workshop	Chunghwa Telecom periodically conducts analysis of the latest external reports on ESG (Environmental, Social, and Governance) trends. These analyses are shared during internal meetings to enhance employees' awareness and understanding of sustainability development trends. By staying informed about industry trends and best practices in ESG, employees can actively contribute to the company's sustainability initiatives and align their work with broader environmental and social goals. This practice fosters a culture of continuous learning and promotes a collective commitment to responsible business practices across the organization.
Others	Official Website and Social Media	Chunghwa Telecom has established an "ESG Section" on its official website and YouTube channel. The company has also set up a Facebook fan page specifically focused on ESG topics.

Documents

Sustainable Development Best-Practice Principles of Chunghwa Telecom

View