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 Post-2020 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.

2023 Progress

1. The International Climate Development Institute (ICDI) was commissioned to assist in following mitigation hierarchy to draft the Chunghwa Telecom Biodiversity Conservation Strategy Plan.



Core	Goal	Strategy
Mitigating Nature-Related Losses	Scientific Nature-Related Assessment	Construct scientific evaluation processes
		Develop and implement mitigation measures
	No Deforestation	Eliminate the use of deforestation products
		Promote the NND Initiative
Promoting Nature Positivity	Alignment with the Nature Positive Initiative	Participate in nature positive communities
		Promote nature positivity
	Mainstreaming nature positivity	Construct a nature positive paradigm
		Promote the mainstreaming of nature positivity

2. The taskforce (including Chunghwa Telecom, ICDI, National Taiwan University, Deloitte & Touche Risk Management Advisory Co., Ltd.) work together to publish the Taskforce on Nature-related Financial Disclosures (TNFD) report of 2023 and construct a Taiwan-based biodiversity science assessment process for the first time.
3. The study commissioned to the Industrial Technology Research Institute (ITRI), selected globally significant telecom service providers and benchmark organizations based on the latest international initiatives, summarized the systematic approaches for the ICT technology to empower biodiversity and innovative ecosystem services, and conducted expert interviews in order to propose the priority products for investment, feasible demonstration fields, and innovative service models.
4. The “Chunghwa Telecom No Deforestation Policy” was stipulated in accordance with the EU Deforestation Regulation (EUDR) to prevent all forms of deforestation activities.
5. The Chunghwa Telecom Hundred-Site Restoration Project was implemented, selecting suitable sites at the branches to carry out restoration of endangered indigenous plants in Taiwan, encouraging employees to be accountable for the restoration efforts, and enhancing the communication and interaction with local communities.
6. In response to the 30x30 target of the Kunming-Montreal Global Biodiversity Framework, assessed for habitat restoration at suitable sites within the Company, established “other effective area-based conservation measures (Other Effective Area-based Conservation Measures, OECMs),” and planned to obtain related certification.
7. The first “Green Gold Workshop” was held on June 30, 2023, with nearly 50 representatives from significant suppliers invited, to help supplier partners take the limitations of the resources and ecological environments on Earth into account, incorporate thinking of “sustainable/ecological/socially inclusive design,” and apply such into the existing products and services provided to Chunghwa Telecom, fostering a sustainable ecosystem of products and services of Chunghwa Telecom.
8. The “2023 Annual ESG Supplier Conference” was organized on December 26, 2023, themed with “Protecting Ecology Together and Moving Towards a Net-Zero Future,” inviting experts in biodiversity initiatives to exchange views on sustainable ecological issues as well as 8 significant suppliers to put commitments of biodiversity and no deforestation into practice with Chunghwa Telecom.

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 supply chain.
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-Point Restoration Project, encouraging employees to engage in stakeholder communication and initiating habitat restoration work to establish a model for a nature-positive approach.