Sustainability

 

Material Issues

Innovative products and services

As the traditional core service market of the telecommunications industry becomes increasingly saturated and with the gradual rise in prevalence of OTT, over-the-top (Internet content provider), voice services continue to decline. Concerning the industry value output is expected to further decline, CHT hopes to use innovative ICT product services as an opportunity to undergo transformation, take the lead in integrating cross-domain industries and upstream and downstream industries, and construct a sound ecosystem for development. The emerging businesses include: Internet of Things; IoT, artificial intelligence; AI, augmented reality; AR, MOD, OTT, and other products, which are potential development directions. We believe that IoT and AI will be the driving force for overall revenue growth. In addition, CHT also actively responds to the “DIGI+ Plan” promoted by the Executive Yuan, in the hope of extending its industry technology and developing an innovative economy.

 

Climate Strategy - Save energy and reduce carbon emission

Slowing greenhouse gas emissions is the inevitable direction, Taiwan as a part of the global supply chain, also faces the potential risks of climate change and the pressure of energy saving and carbon reduction. The Taiwan Legislative Yuan has adopted the "GHG Emission Reduction and Management Act" in 2015 and sets out the objective of reducing “Greenhouse gas emissions in 2050 by 50% or more compared to 2005." Since the daily network, machinery room operation is dependent on a large number of energy support, followed by increased operating costs, CHT's finances will certainly be affected. If we do not immediately respond to the climate change issues and relevant environmental laws and systems, there may be risks of legal penalties and losing the industry leading edge at the same time. Faced with the challenges of stakeholders and damaging the corporate reputation, therefore, we deeply understand the importance of climate change issues.

Long-Term Initiatives and Targets

•   Economic

In response to the international ICT development trend, the company has independently developed an IoT platform featuring five service functions: information security, big data, cloud, AI, and AR. Additionally, with its role of the “big platform”, the domestic IoT industrial ecology is linked to expand cooperation. In terms of digital video convergence, in addition to launching more 4K ultra-high-definition image services through the fiber-optic network to achieve market segmentation, in order to facilitate the convenience of cross-network viewing, MOD+OTT multi-screen services integrating three platforms, namely, fixed-line, data, and mobile networks have been launched. In addition, for the first time, we have collaborated with OTT operators. In addition to our own Hami Video, we have also imported Fox, KKTV, and other OTT services on MOD to increase platform content richness and achieve the goal of having more than 2 million MOD users by 2018.

♦   Target1: Achieve IoT revenues reaching NT$15 billion by 2020.

The IoT team was set up to actively gather the industrial community to jointly develop smart buildings/homes, smart transportation, smart energy, smart cities, smart manufacturing, smart logistics, smart medical care, smart finance, and smart agriculture and use the open platform as the basis for extensive cooperation with strategic partners.

♦   Target2: Achieve AI related revenues exceeding NT$3 billion by 2020.

CHT has formed an AI team of 350 people engaged in the research and development of 6 AI application services, such as using the IoT platform to provide AI face recognition, face verification, speech synthesis, image monitoring, and the face recognition access systems for image monitoring, customer sentiment analysis systems, and traffic data forecasting and warning systems. We hope that our deep-rooted system integration experience will lead to various industrial upgrade sand we'll devote more resource into AI R&D in the future.

•   Environmental

CHT is well aware of the environmental impacts associated with energy, resources, waste, maintenance, purchasing and other aspects of our operation. We have adopted a “Green Enterprise, Sustainability and Innovation Strategy” with the introduction of 5G initiatives: “Green Energy, Green Procurement, Green Operations, Green Stores, and Green Supply Chain” that aim to address financial success, sustainability and social responsibility.

For green operations, CHT keeps practicing energy-saving actions, measuring greenhouse gas emission on a regular basis. To manage resources and environmental protection efficiently and thoroughly, we developed EARTH system to save the spending on energy consumption and enhance environmental management efficiency.

To improve energy use efficiency, we take following actions: (1) integrate data centers to exploit spaces properly (2) save cooling energy (3) Install solar water heaters and set up LED bulbs (4) replace old vehicles with environment-friendly ones.

♦   Target1: For buildings owned by Chunghwa Telecom, we aim to reach the goal of reducing 10% of carbon emissions by 2023, with 2017 as the base year.

CHT is faced with great pressure to save energy and reduce carbon emission. For that matter, we have taken measures such as:

(1)    Energy management: Use self-developed systems to manage the use of all resources and keep track of energy use efficiency.

(2)    Retire old equipment: Including old and high-energy consumption air conditioners, office and operation center lighting fixtures, parking lot lighting fixtures, and emergency exit lights have been replaced with highly efficient and power saving ones, such as LED light bulbs.

(3)    Adjust and optimize equipment: Install curtains to reduce the workload of air conditioners and glass panels at front desks to fend off heat; Keep car parks minimally lighted during non-office hours; Install light sensors at staircases and in halls; Bring air from outside to reduce indoor temperatures, prevent air conditioning from covering unused space, improve air outlets of data centers’ air conditioning systems.

♦   Target2: Chunghwa Telecom expects to reach the capacity of power generated by renewable energy to 750 kWp by 2023.

In 2016, we announced the establishment of "Energy Office", locked in solar energy, wind power and LED three areas as the directions of development.

Chunghwa Telecom expects to make the best of its expertise in information and telecommunication, and the Internet of Things, while working together with county and city governments under their autonomous regulations of low carbon city development to promote the construction of renewable energy infrastructure.

As of the end of 2017, Chunghwa Telecom has established 45 solar power stations around the island, with a total capacity of 527 kWp. Solar power stations are scheduled to be set up in Taoyuan and Taichung. The capacity of power generated by renewable energy is expected to reach 750 kWp by 2023.

♦   Target3: Setting 2017 as the base year for Chunghwa Telecom’s energy saving project, we expect to reach a power reduction rate of 10% by 2023.

Under the global call for carbon emissions reduction, our company is faced with great pressure. To achieve the goal, CHT, while underscoring high-energy efficiency in its newly-built data centers, also keeps optimizing the operation of existing data centers with measures such as:

(1)    Save electricity: Control power consumption by switching off stand-by units and equipment not in use, and installing localized lighting systems and independent switches.

(2)    Manage air conditioning systems: Use a monitoring system to control temperatures in different sections. Adopt hot/cold aisle cooling design, temperature-controlled variable frequency pump, highly efficient air conditioner, and free cooling air conditioning.

(3)    Fixed line telephone equipment: Reduce energy consumption of old and low-efficiency equipment by purchasing high-efficiency ones.

(4)    Mobile communication: Speed up 4G mobile broadband applications and retire high energy-consuming 2G bases to greatly reduce electricity consumption.

 

Material Issues

Innovative products and services

As the traditional core service market of the telecommunications industry becomes increasingly saturated and with the gradual rise in prevalence of OTT, over-the-top (Internet content provider), voice services continue to decline. Concerning the industry value output is expected to further decline, CHT hopes to use innovative ICT product services as an opportunity to undergo transformation, take the lead in integrating cross-domain industries and upstream and downstream industries, and construct a sound ecosystem for development. The emerging businesses include: Internet of Things; IoT, artificial intelligence; AI, augmented reality; AR, MOD, OTT, and other products, which are potential development directions. We believe that IoT and AI will be the driving force for overall revenue growth. In addition, CHT also actively responds to the “DIGI+ Plan” promoted by the Executive Yuan, in the hope of extending its industry technology and developing an innovative economy.

 

Climate Strategy - Save energy and reduce carbon emission

Slowing greenhouse gas emissions is the inevitable direction, Taiwan as a part of the global supply chain, also faces the potential risks of climate change and the pressure of energy saving and carbon reduction. The Taiwan Legislative Yuan has adopted the "GHG Emission Reduction and Management Act" in 2015 and sets out the objective of reducing “Greenhouse gas emissions in 2050 by 50% or more compared to 2005." Since the daily network, machinery room operation is dependent on a large number of energy support, followed by increased operating costs, CHT's finances will certainly be affected. If we do not immediately respond to the climate change issues and relevant environmental laws and systems, there may be risks of legal penalties and losing the industry leading edge at the same time. Faced with the challenges of stakeholders and damaging the corporate reputation, therefore, we deeply understand the importance of climate change issues.

Long-Term Initiatives and Targets

•   Economic

In response to the international ICT development trend, the company has independently developed an IoT platform featuring five service functions: information security, big data, cloud, AI, and AR. Additionally, with its role of the “big platform”, the domestic IoT industrial ecology is linked to expand cooperation. In terms of digital video convergence, in addition to launching more 4K ultra-high-definition image services through the fiber-optic network to achieve market segmentation, in order to facilitate the convenience of cross-network viewing, MOD+OTT multi-screen services integrating three platforms, namely, fixed-line, data, and mobile networks have been launched. In addition, for the first time, we have collaborated with OTT operators. In addition to our own Hami Video, we have also imported Fox, KKTV, and other OTT services on MOD to increase platform content richness and achieve the goal of having more than 2 million MOD users by 2018.

♦   Target1: Achieve IoT revenues reaching NT$15 billion by 2020.

The IoT team was set up to actively gather the industrial community to jointly develop smart buildings/homes, smart transportation, smart energy, smart cities, smart manufacturing, smart logistics, smart medical care, smart finance, and smart agriculture and use the open platform as the basis for extensive cooperation with strategic partners.

♦   Target2: Achieve AI related revenues exceeding NT$3 billion by 2020.

CHT has formed an AI team of 350 people engaged in the research and development of 6 AI application services, such as using the IoT platform to provide AI face recognition, face verification, speech synthesis, image monitoring, and the face recognition access systems for image monitoring, customer sentiment analysis systems, and traffic data forecasting and warning systems. We hope that our deep-rooted system integration experience will lead to various industrial upgrade sand we'll devote more resource into AI R&D in the future.

•   Environmental

CHT is well aware of the environmental impacts associated with energy, resources, waste, maintenance, purchasing and other aspects of our operation. We have adopted a “Green Enterprise, Sustainability and Innovation Strategy” with the introduction of 5G initiatives: “Green Energy, Green Procurement, Green Operations, Green Stores, and Green Supply Chain” that aim to address financial success, sustainability and social responsibility.

For green operations, CHT keeps practicing energy-saving actions, measuring greenhouse gas emission on a regular basis. To manage resources and environmental protection efficiently and thoroughly, we developed EARTH system to save the spending on energy consumption and enhance environmental management efficiency.

To improve energy use efficiency, we take following actions: (1) integrate data centers to exploit spaces properly (2) save cooling energy (3) Install solar water heaters and set up LED bulbs (4) replace old vehicles with environment-friendly ones.

♦   Target1: For buildings owned by Chunghwa Telecom, we aim to reach the goal of reducing 10% of carbon emissions by 2023, with 2017 as the base year.

CHT is faced with great pressure to save energy and reduce carbon emission. For that matter, we have taken measures such as:

(1)    Energy management: Use self-developed systems to manage the use of all resources and keep track of energy use efficiency.

(2)    Retire old equipment: Including old and high-energy consumption air conditioners, office and operation center lighting fixtures, parking lot lighting fixtures, and emergency exit lights have been replaced with highly efficient and power saving ones, such as LED light bulbs.

(3)    Adjust and optimize equipment: Install curtains to reduce the workload of air conditioners and glass panels at front desks to fend off heat; Keep car parks minimally lighted during non-office hours; Install light sensors at staircases and in halls; Bring air from outside to reduce indoor temperatures, prevent air conditioning from covering unused space, improve air outlets of data centers’ air conditioning systems.

♦   Target2: Chunghwa Telecom expects to reach the capacity of power generated by renewable energy to 750 kWp by 2023.

In 2016, we announced the establishment of "Energy Office", locked in solar energy, wind power and LED three areas as the directions of development.

Chunghwa Telecom expects to make the best of its expertise in information and telecommunication, and the Internet of Things, while working together with county and city governments under their autonomous regulations of low carbon city development to promote the construction of renewable energy infrastructure.

As of the end of 2017, Chunghwa Telecom has established 45 solar power stations around the island, with a total capacity of 527 kWp. Solar power stations are scheduled to be set up in Taoyuan and Taichung. The capacity of power generated by renewable energy is expected to reach 750 kWp by 2023.

♦   Target3: Setting 2017 as the base year for Chunghwa Telecom’s energy saving project, we expect to reach a power reduction rate of 10% by 2023.

Under the global call for carbon emissions reduction, our company is faced with great pressure. To achieve the goal, CHT, while underscoring high-energy efficiency in its newly-built data centers, also keeps optimizing the operation of existing data centers with measures such as:

(1)    Save electricity: Control power consumption by switching off stand-by units and equipment not in use, and installing localized lighting systems and independent switches.

(2)    Manage air conditioning systems: Use a monitoring system to control temperatures in different sections. Adopt hot/cold aisle cooling design, temperature-controlled variable frequency pump, highly efficient air conditioner, and free cooling air conditioning.

(3)    Fixed line telephone equipment: Reduce energy consumption of old and low-efficiency equipment by purchasing high-efficiency ones.

(4)    Mobile communication: Speed up 4G mobile broadband applications and retire high energy-consuming 2G bases to greatly reduce electricity consumption.