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Material Issue for External Stakeholders
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Sustainable supply chain management: Assess suppliers' ESG risks, improve their skills, and drive carbon reduction in supply chains
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Cybersecurity and privacy protection: Establish a complete mechanism to protect consumers' personal data and privacy
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Cause of the Impact
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Supply chain
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Products/Services
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Business activity coverage
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>50% of business activity
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>50% of business activity
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External stakeholder(s)/ impact area(s) evaluated
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External employees (e.g. supply chain, contractors)
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Consumers/ end-users
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Topic relevance on external stakeholders
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Both positive and negative combined
Impacts on external stakeholders
- The annual external procurement amount of CHT is NT$70 billion, with the telecommunications equipment necessary for operation provided by the vast number of suppliers. The suppliers are encouraged to adopt more energy-saving and efficient equipment and develop green products and services to facilitate the low-carbon transformation of the telecom industry.
- Carbon reduction in the supply chain requires investment in cost and technology to implement energy-saving measures, such as purchasing low-carbon products, upgrading production equipment, etc., which may lead to increased operating costs for suppliers.
- Carbon reduction in supply chain demands relevant technologies and expertise to evaluate, implement, and monitor results of carbon reduction, while a lack of relevant competencies may slow down carbon reduction progress
Environmental significance
- CHT promotes "sustainable supply chain" and has joined the CDP Supply Chain Program, demanding carbon reduction in the supply chain to help reduce GHG emissions and contribute positively to climate change
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Both positive and negative combined
Positive impacts on external stakeholders
- Personal data and privacy protection ensures no abuse, misuse, or breach of sensitive personal information, which is a significant positive impact for the general public. The public will be more at ease when accessing digital platforms, e.g. online shopping, social media, etc., if their personal data are protected.
- Personal data and privacy protection helps protect one’s autonomy and control over personal data. Consumers can choose what personal data to provide or retain and control the use of their data. The right to control gives consumers a greater control over their identities and data in the digital era.
Negative impacts on external stakeholders
- Insufficient protection of personal data and privacy rights may lead to elevated risk of personal data breach and abuse by perpetrators, which in turn lead to serious damage to individuals and society, such as identity theft, financial losses, or damages to personal reputation.
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Output
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Quantitative output metric/s linked to material issue:
Carbon emission reduced(t-CO2e)
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Quantitative output metric/s linked to material issue:
Number of personal data breach (case)
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Impact valuation
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Value obtained from reduce emission in supply chain
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Negative social cost avoided by privacy protection
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Impact Metric
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Quantitative impact metric linked to material issue:Environmental costs of carbon(NT$)
Description:
- To assess the influence of Chunghwa Telecom on the supply chain carbon management, we use Environmental value lost/gained as the metric to calculate the environmental value change arising from the carbon reduction of the supply chain.
- According to the research, for every metric ton of CO2 emissions reduced, environmental damage costs of approximately NT$1,200 can be avoided.
- With that as the basis, Chunghwa Telecom reduced a total of 9.58 million t-CO2e in the supply chain through the CDP supply chain carbon management mechanism in 2022, which is equivalent to avoiding approximately NT$11.496 billion of environmental costs.
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Quantitative impact metric linked to material issue: Social costs avoided (NT$)
Description:
- To assess the influence of CHT on information communication security and personal data privacy protection, using CHT "Anti-Hacking Gatekeeper" as an example, it effectively identified up to 860 million spam text messages for consumers in 2022
- According to the statistics of the National Police Agency in Taiwan in 2020, there were totally 2,615 spam SMS cases in Taiwan, with the amount loss of victims totaled NT$145 million (an average of NT$55,000 per cases).
- Success rate of spam SMS identification and notification: 50%
- Social costs saved annually: NT$2.365 billion
(860 million counts) × (NT455,000) × 50%
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