Biodiversity and No Deforestation Commitment

Chunghwa Telecom fully recognizes the importance of biodiversity and no deforestation for ecological and climate stability. Therefore, we are committed to maintaining and fostering biodiversity, avoiding all kinds of deforestation activities, and promoting reforestation throughout our operations as well as within our value chain (including Tier-1 and non Tier-1) and with our partners. Our goal is to implement the United Nations Sustainable Development Goals（SDGs）6, 12, 13, 14, 15 * as well as the Kunming-Montreal Global Biodiversity Framework, to reverse biodiversity loss by 2030 and ultimately achieve a vision of living in harmony with nature by 2050.

Our Commitment

1. We will avoid engaging new operational activities including offices／stores, server rooms, and base stations in adjacent areas of critical biodiversity* . For national infrastructure necessity purpose to establish telecommunications infrastructure in these areas, we will comply with relevant regulations to conduct environmental impact assessments to evaluate and monitor the impact of biodiversity. Additionally, we will follow the mitigation hierarchy (avoid, minimize, restore, and offset) to protect the ecosystem of critical biodiversity and reach no net loss.
2. To those existing operational activities are located in adjacent areas of critical biodiversity. We will gradually initiate risk assessment and monitoring for natural resource utilization and biodiversity to develop strategies to mitigate and reduce our dependence on natural resources while actively working towards achieving net positive impact on biodiversity by 2030.
3. We will conduct an inventory of current operational activities' usage of forest products (such as paper, packaging, building materials, etc.), and allocate resources towards reforestation, moving towards the goal of no net deforestation by 2030.
4. To enhance the awareness of stakeholders (employees, customers, suppliers, and partners) about the importance of biodiversity and forest conservation.
5. To participate local and international important biodiversity initiatives and collaborate with external experts (academics, consultants, or non-governmental organizations) to grasp the development of biodiversity issues and plan long-term strategies.
6. To regularly disclose the progress of biodiversity and no deforestation on our company website or in sustainability reports.

*Notes：
1. SDG 6: Clean water and sanitation, SDG 12: Responsible consumption and production、SDG 13: Climate action, SDG 14: Life below water, SDG 15: Life on land.
2. Within 2km around nationally important biodiversity areas and the habitats of species classified as Critically Endangered, Endangered, or Vulnerable on the IUCN Red List.

Our Action

• We conduct nature capital impact and dependency assessments on all operational locations within the company's scope.
• Require suppliers to comply with this commitment through "Chunghwa Telecom Supplier Code of Conduct".
• Before constructing major telecommunications facilities such as international submarine cables and Data Center, we will obtain the permits from government in accordance with relevant environmental assessments regulations, in order to minimize the impact on the ecosystem.
• We collaborate with the Forestry Bureau to engage in reforestation and rehabilitation efforts in key state-owned forests and coastal areas throughout Taiwan. Our eight-year goal is to plant 150,000 trees.

Our Strategy

2024 Progress

1. Published the 2023 Taskforce on Nature-Related Financial Disclosures (TNFD) Report, and planned to expand the analysis scope to the supply chain in the 2024 TNFD Report.
2. Launched Chunghwa Telecom’s Hundred-Species Restoration Project, selecting appropriate sites within operations for the restoration of endangered native Taiwanese plants. Employees are encouraged to take responsibility for restoration efforts and to enhance communication and engagement with local communities and a demonstration site has been established at the Taipei Jinshan Building in 2024.
3. On September 2, 2024, successfully acquired the bid for the “Bamboo Forest Management Project” from the Forestry and Nature Conservation Agency, Ministry of Agriculture, supporting the thinning of bamboo forests and the management of the Atayal Tribe’s bamboo industry in Fuxing, Taoyuan to promote sustainable bamboo forest ecology.
4. On September 13, 2024, an environmental sustainability visit was organized with the main theme of "Wetland Biodiversity x Forestry Ecology and No Deforestation x Local Revitalization." Seventy supplier partners were led to Yilan for the visit to enhance their understanding of the environment and biodiversity.
5. On October 18, 2024, participated in the "2024 Taiwan Climate Action Expo," with our exhibition featuring seven key topics, including climate change response and disclosure, biodiversity conservation and no-deforestation commitments, the achievements of TNFD (Taskforce on Nature Related Financial Disclosures), the Hundred-Species Restoration Project, ecological habitat restoration, O Carbon Cloud, and Black-faced Spoonbill Conservation Project. The Company demonstrated the active nature of its biodiversity conservation implementation through innovative applications of information and communication technology.
6. On November 8, 2024, in collaboration with E.SUN Financial Holding, the " No Net Loss and No Deforestation Forum " was held, bringing together prominent leaders from the government, academia, and industry to jointly discuss the sustainable responsibilities and practices of enterprises in forest conservation and ecological preservation.
7. On November 13, 2024, in collaboration with the Black-faced Spoonbill Conservation Association, the "AI-enabled Black-faced Spoonbill monitoring system " was launched. This system integrates the "AI Bird Identification and Counting System" to accurately monitor the population of Black-faced Spoonbills. Additionally, the intelligent water condition monitoring system assists management personnel in allocating water resources more efficiently, ensuring the stability of the Black-faced Spoonbill habitats.
8. On December 9, 2024, the "2024 ESG Supplier Partner Exchange Meeting" was held, with the theme “Low Carbon as the Foundation, Sustainable Win-Win,” aiming to collaborate with extensive supply chain partners to advance sustainable low-carbon transformation and biodiversity protection within the supply chain.

Future Outlook

In terms of mitigating nature-related losses:

1. We have established a Taiwan-based scientific assessment process. Moving forward, with 2030 as the target, we will conduct phased facility inventories and self-assessments based on the levels of "natural sensitivity" and "operational impact," and expand the implementation into our subsidiaries in compliance with IFRS.
2. Following our no-deforestation policy, we will gradually adopt paper products certified by the Forest Stewardship Council (FSC) or the Programme for the Endorsement of Forest Certification (PEFC), and organize relevant seminars to enhance public awareness of no-deforestation principles.

In terms of promoting nature positivity:

1. We will evaluate participation in international biodiversity advocacy organizations, exhibit our achievements at relevant expositions, and host forums to advocate for nature-positive concepts.
2. We will progressively expand the Hundred-Species Restoration Project, encouraging employees to engage in stakeholder communication and initiating habitat restoration work to establish a model for a nature-positive approach.