Chunghwa Telecom plans and implements its Net-Zero Transition Plan in alignment with the Paris Agreement goal of limiting global warming to 1.5°C, based on the science-based decarbonization pathway validated by the Science Based Targets initiative (SBTi). The Company integrates low-carbon transition, climate resilience, and long-term value creation into its overall business strategy. Chunghwa Telecom commits to reducing Scope 1 and Scope 2 greenhouse gas (GHG) emissions by 50% by 2030 compared to the 2020 base year, and Scope 3 emissions by 25% by 2030 compared to the 2021 base year. The Company also pledges to achieve net-zero emissions ahead of schedule by 2045 as its response to the IPCC 1.5°C emissions reduction pathway.

Net-Zero Transition Strategy

Chunghwa Telecom's Net-Zero Transition Plan is built on two strategic pillars, i.e., “technology-enabled decarbonization” and “renewable energy use,” continuing to reduce operational emissions, enhance operational resilience, and expand the market application of climate-resilient products and services. The Company also incorporates climate-related transition risks, physical risks, and low-carbon market opportunities into the planning basis for medium- to long-term financial resilience and business model upgrades.

Aspect	Transition Plan Content
Transition Targets	Scope 1 and Scope 2: 50% reduction by 2030 from the 2020 base year Scope 3: 25% reduction by 2030 from the 2021 base year Net-zero emissions by 2045
Strategic Pillar	Centered on “technology-enabled decarbonization” and “renewable energy use,” Chunghwa Telecom reduces operational emissions, strengthens climate resilience, and promotes the development of low-carbon ICT products and services.
Alignment with the 1.5°C Pathway	The near-term GHG reduction and long-term net-zero targets of Chunghwa Telecom were validated by the Science Based Targets initiative (SBTi) in 2023 and 2024, respectively. The Company clearly discloses its near-term reduction targets for 2030 and the net-zero targets for 2045 as the basis for its transition plan.
Scenarios and Assumptions	In the key assumptions of its transition plan, Chunghwa Telecom references the IEA Net Zero Emissions by 2050 Scenario (NZE Scenario). Premised on net-zero CO₂ emissions of the global energy system by 2050, the Company evaluates the implementation pathways for renewable energy procurement, energy-saving technologies, infrastructure upgrades, and carbon management measures.

Governance and Tracking Mechanism

The Board of Directors serves as the highest governing body for sustainability and climate-related issues at Chunghwa Telecom. Through relevant committees and the executive management, the Company regularly reviews the targets, implementation status, as well as risk and opportunity management of its Net-Zero Transition Plan, ensuring that the transition plan is tied with corporate governance, risk management, and operational decision-making.

Item	Mechanism Description
Highest Governing Body	The Board of Directors serves as the highest governing body for sustainability and climate-related issues, responsible for overseeing the net-zero transition direction and material climate-related issues at Chunghwa Telecom.
Management and Review Mechanism	Through the Sustainability Development and Strategy Committee, the Risk Management Committee, the Audit Committee, as well as the Sustainability Development Promotion Committee at the executive management level, Chunghwa Telecom regularly reviews the targets, implementation status, and related risks and opportunities of the transition plan.
Performance and Remuneration Linkage	Chunghwa Telecom integrates climate and ESG indicators into the performance management and remuneration linkage mechanism for the executive management. In 2025, the linkage ratio was raised to 30% to strengthen transition execution.
Sustainability Disclosure	One year ahead of the competent authority's requirements Chunghwa Telecom fully adopted the IFRS Sustainability Disclosure Standards (IFRS S1 and IFRS S2) and published its 2025 Sustainability-Related Financial Information Section.

Transition Investment and Capital Allocation

To advance its climate transition plan, Chunghwa Telecom continues to make climate-related investments in renewable energy procurement, installation of energy-saving equipment, replacement of legacy equipment, and implementation of energy management systems. In 2025, the Company incurred approximately NT$2.57 billion in capital expenditure (CAPEX) due to equipment replacement, and approximately NT$216 million in additional operating costs and expenses (OPEX) due to the increased proportion of renewable energy.

Based on the budgets and plans that have been established at the current stage, Chunghwa Telecom expects to continue investing in renewable energy procurement and legacy equipment replacement in the short term. These actions are projected to result in approximately NT$2.239 billion in CAPEX and an increase of approximately NT$395 million in OPEX, supporting the execution of the transition plan.

In addition, Chunghwa Telecom raises funds necessary for its sustainable transition through the issuance of sustainability bonds. The Company issued NT$3.5 billion in sustainability bonds in both 2022 and 2025, serving as a vital source of funding for advancing sustainability and climate-related strategies. (For more details, please refer to: https://www.cht.com.tw/en/home/cht/investors/financials/credit-rating-and-corporate-bond)

Transition Capital Allocation Project	Period	Amount / Scale	Use of Funds	Corresponding Decarbonization Lever
CPPA Renewable Energy Procurement	2027-2047	More than 4.6 billion kWh of renewable energy	20-year renewable energy procurement	Scope 2 emissions reduction
2022 Sustainability Bonds	2022–2023 (Completed)	NT$3.5 billion	Green building construction, PSTN-to-IP equipment replacement, 5G base station deployment in remote areas, broadband infrastructure construction in remote areas and offshore islands, and the EYE Social Innovative Call Center	Supporting the overall transition plan
2025 Sustainability Bonds	2025–2029 (Ongoing)	NT$3.5 billion	STN-to-IP equipment replacement, EV100 replacement of fossil fuel-powered vehicles, the Hundred-Species Restoration Project, the Bamboo Future Project, 5G base station deployment in remote areas, and the EYE Social Innovative Call Center	Supporting the overall transition plan

Key Decarbonization Actions

➤ Key Milestones and Initiatives

Initiative Action	Initiative Targets
Set SBTi Science-Based Emissions Reduction Targets	By 2030 Reduce Scope 1 and Scope 2 emissions by 50% from the 2020 base year. Reduce Scope 3 emissions by 25% from the 2021 base year. By 2040 Reduce Scope 1 and Scope 2 emissions by 95% from the 2020 base year. By 2045 Reduce Scope 3 emissions by 90% from the 2021 base year. Achieve net-zero emissions.
Join the RE100 Initiative	By 2040 Achieve 100% renewable energy use across operating sites.
Join the EV100 Initiative	Before 2030 Achieve 100% electrification of engineering and company vehicle fleet.

Initiative Action

Initiative Targets

Set SBTi Science-Based Emissions Reduction Targets

By 2030

Reduce Scope 1 and Scope 2 emissions by 50% from the 2020 base year.
Reduce Scope 3 emissions by 25% from the 2021 base year.

By 2040

Reduce Scope 1 and Scope 2 emissions by 95% from the 2020 base year.

By 2045

Reduce Scope 3 emissions by 90% from the 2021 base year.
Achieve net-zero emissions.

Join the RE100 Initiative

By 2040

Achieve 100% renewable energy use across operating sites.

Join the EV100 Initiative

Before 2030

Achieve 100% electrification of engineering and company vehicle fleet.

Chunghwa Telecom promotes multiple key decarbonization actions across Scope 1, Scope 2, and Scope 3 emissions in accordance with its SBTi-validated decarbonization pathway, supporting its 2030 near-term emissions reduction targets and 2045 net-zero emissions target.

Emissions Scope	Decarbonization Lever	Key Actions	Targets / Results
Scope 1	Vehicle Electrification	Promote EV100 and gradually replace fossil fuel-powered engineering and company vehicle fleet with electric vehicles to reduce fleet fuel consumption and direct emissions.	Commit to achieving 100% electrification of engineering and company vehicle fleet by 2030. As of 2025, Chunghwa Telecom had replaced 386 engineering and company vehicles with electric vehicles.
Scope 2	Renewable Energy Use	Advance the RE100 pathway, expand renewable energy procurement and self-generated electricity for self-consumption, and reduce emissions from purchased electricity.	Commit to achieving 100% renewable energy use in IDCs by 2030 and 100% renewable energy use across all Chunghwa Telecom operating sites by 2040. In 2025, renewable energy procurement and self-generated electricity for self-consumption reached 90.912 million kWh, with the renewable energy use rate at 6.93%.
Scope 2	Technology-Enabled Decarbonization in IDCs	Continue to promote data center energy efficiency by introducing high-efficiency chillers, water pumps rated IE3 or above, AI-powered smart energy-saving technologies, and direct liquid cooling solutions, gradually reducing the PUE of data centers.	In 2025, the IDC PUE was approximately 1.587. The target is to reduce PUE to below 1.5 by 2030.
Scope 2	Replacement of Legacy Energy-Intensive Equipment	Continue replacing legacy energy-intensive equipment, including power, air-conditioning, switching, transmission, access network, and mobile device, to improve overall energy use efficiency.	In 2025, the total electricity consumption decreased by 44.3 million kWh compared to the previous year.
Scope 3	Supplier Product Carbon Footprint Management	For tenders with a contract value exceeding NT$30 million, suppliers are required to provide product carbon footprint data for verification.	Enhance carbon information transparency in procurement, serving as the basis for Scope 3 emissions reduction and supply chain carbon management.
Scope 3	Supplier Carbon Management Capability Grading and Guidance	Assess and grade suppliers’ carbon management capabilities and provide training and individual guidance.	Support suppliers in strengthening their capabilities in carbon inventory, carbon management, and emissions reduction.
Scope 3	Product Environmental Footprint Category Rules and Low-Carbon Procurement	Chunghwa Telecom developed the “Product Environmental Footprint Category Rules (PEFCR) for User-End Network Communications Equipment” jointly with suppliers, and requires devices such as home gateways (HGW), Mesh APs, and MOD set-top boxes (STBs) to obtain ISO 14067 product carbon footprint certification and the Ministry of Environment's carbon reduction label as mandatory prerequisite for procurement.	The PEFCR has been reviewed and approved by the Ministry of Environment as a national standard. Guide suppliers to develop devices with better performance and lower power consumption, thereby reducing carbon emissions from downstream leased products.
Scope 3	Sales of Low-Carbon Products	Sales products mainly consist of consumer electronics and home appliances with Grade 1 or Grade 2 energy-efficiency labels, and suppliers are required to provide carbon footprint data.	Reduce emissions associated with the use phase of sold products and with the broader value chain by optimizing the Company's product portfolio and enforcing supplier carbon data requirements
Scope 3	Supply Chain Carbon Management Information System	A supplier supply chain carbon management information system has been established to monitor suppliers’ carbon emissions in a timely manner.	 Strengthen supply chain carbon data management and tracking capabilities, serving as the foundation for Scope 3 emissions management and reduction actions.

➤ Principles for the Use of Carbon Credits

Chunghwa Telecom prioritizes absolute emissions reductions, including improving energy efficiency, introducing energy-saving technologies, and expanding the use of renewable energy. Upon achieving a certain level of value chain emissions reductions, the Company may, in accordance with SBTi standards and actual needs, prudently evaluate the use of high-quality carbon credits with international credibility as a supplementary instrument to achieve its net-zero target.

In 2023, Chunghwa Telecom purchased Gold Standard-certified carbon credits via the international carbon credit trading platform of the Taiwan Carbon Solution Exchange (TCX). These carbon credits have been used by the Chunghwa Telecom Training Institute by the end of 2025 for its application for ISO 14068-1 carbon neutrality verification.

Stakeholder Engagement

To support the effective implementation of its Net-Zero Transition Plan, Chunghwa Telecom has established regular stakeholder engagement mechanisms targeting three groups: the Value Chain, Industry Initiatives and Partnerships, as well as the Government, Public Sector, and Society. The Company periodically collects stakeholder feedback on its transition pathway, decarbonization targets, and supporting measures, and integrates such feedback into the review and adjustment of the transition plan, thereby strengthening execution capabilities and support from relevant parties.

Engagement Target	Engagement Mechanism	Feedback Collected and Response Actions
Value Chain	Since 2017, Chunghwa Telecom has joined the CDP Supply Chain Program and has established various channels, including an annual supplier ESG assessment system, net-zero engagement meetings, low-carbon transition surveys, and joint net-zero initiative.	Chunghwa Telecom regularly collects information on suppliers’ challenges and needs related to decarbonization target setting, energy transition, technology adoption, and regulatory compliance. Chunghwa Telecom provides GHG inventory training, a decarbonization technology exchange platform, and a signing mechanism for the joint net-zero initiative. From 2021 to 2025, a total of 142 suppliers signed the joint net-zero initiative.
Customers and Downstream Customers	Chunghwa Telecom engages with customers through customer satisfaction surveys, carbon management consultation channels for enterprise customers, and product carbon footprint inquiry services.	Chunghwa Telecom identifies downstream customers’ expectations for low-carbon products and green ICT solutions. Chunghwa Telecom responds to market needs with low-carbon solutions such as AIoT, cloud virtualization, smart energy management, and green data centers.
Industry Initiatives and Partnerships	Chunghwa Telecom has joined international initiatives such as SBTi, RE100, EV100, TCFD, and CDP, and participates in domestic industry associations such as the Taiwan Telecommunication Industry Development Association.	Chunghwa Telecom attends seminars, technical exchange meetings, and standard-setting discussions to collect information on best practices of peers globally, decarbonization technology trends, disclosure framework updates, and common issues related to renewable energy procurement.
Government, Public Sector, and Society	Chunghwa Telecom participates in policy advisory meetings, net-zero transition working groups, and regulatory consultation meetings held by competent authorities such as the Energy Administration, Ministry of Economic Affairs, the Ministry of Environment, and the National Communications Commission.	Chunghwa Telecom collects policy directions related to the national net-zero pathway, energy policy, carbon pricing, and supporting measures for industrial low-carbon transitions. Through critical infrastructure and critical information infrastructure exercises, local government disaster prevention cooperation platforms, community care activities, collaborative projects with social welfare organizations, and art forums, Chunghwa Telecom responds to needs related to communications resilience, digital equity, and climate adaptation.

Social Impact Assessment and Actions

Chunghwa Telecom recognizes that the low-carbon transition process may generate varying degrees of social impact on employees, supply chain partners, communities, consumers, and vulnerable groups. Therefore, in the implementation of its Net-Zero Transition Plan, the Company has introduced a social impact assessment mechanism. Guided by the principle of Just Transition, Chunghwa Telecom assesses the potential impacts of transition actions and mitigates potential impacts during the transition process through stakeholder engagement, employee capacity building, supply chain guidance, digital equity, and communications resilience enhancement. These actions ensure that the benefits of the transition take into account business operations, social inclusion, and stakeholder needs.

Social Impact Assessment Process

Chunghwa Telecom adheres to the cyclical framework of “identify, assess, respond, and monitor” and incorporates social impact assessment into the implementation and review process of its Net-Zero Transition Plan, ensuring that relevant actions respond to the needs of diverse stakeholders.

Assessment Process	Implementation Approach
Identify	Through stakeholder engagement, industry trend reviews, and internal management processes, Chunghwa Telecom identifies social risks and opportunities that may be associated with the low-carbon transition.
Assess	Based on the impacted groups, scope of impact, and potential impacts on human rights or social inclusion, Chunghwa Telecom assesses the potential impacts that different groups may be exposed to during the transition process.
Respond	For identified social impacts, Chunghwa Telecom plans corresponding measures and incorporates them into annual implementation plans or relevant project execution.
Monitor	Through collaboration among relevant units, progress reviews, and stakeholder feedback, Chunghwa Telecom tracks the implementation of response measures and leverages the results as a basis for subsequent adjustments.

Social Impact Assessment and Response Measures under the Net-Zero Transition Plan

Impacted Group / Scope	Potential Social Impact	Chunghwa Telecom's Response Actions
Consumers and Communities: Operational Resilience	Climate change may increase the frequency and intensity of extreme events, such as typhoons, torrential rainfall, earthquakes, and rising sea temperatures, impacting the reliability and accessibility of telecommunications infrastructure and communication services.	Chunghwa Telecom strengthens multiple redundancies and equipment upgrades for fixed-line networks, mobile networks, data services, and IDCs to enhance the resilience of communication services in disaster scenarios. Chunghwa Telecom strengthens communication reliability in remote areas, mountainous areas, and offshore islands to mitigate the impact of climate risks on communication services and community connectivity.
Vulnerable Groups and Remote Communities: Digital Equity	The low-carbon transition and digitalization process may exacerbate the digital divide for groups such as remote communities, offshore islands, individuals with disabilities, low-income households, and the elderly, impacting their access to disaster prevention information, telemedicine, education and learning, and economic participation opportunities.	Chunghwa Telecom regards digital equity as a core practice of Just Transition. Through programs such as Smart Academy, GDN Little Directors, music therapy, remote care devices, Taiwan Senior Heart School, Read with You Program, Lanyu Digital Empowerment, and CoLab, Chunghwa Telecom collaborates with local governments, schools, and social welfare organizations to continuously bridge the digital divide for remote communities and vulnerable groups. Over 24,000 individuals benefited in 2025.
Small and Medium-Sized Enterprises: Digital Capability Building	Small and medium-sized enterprises (SMEs) may face challenges related to insufficient technology, human resources, and management capabilities during the low-carbon transition and digital transformation process due to limited resources.	Chunghwa Telecom assists SMEs in building digital environments and developing digital capabilities as well as introduces technology applications to save manpower and create more business opportunities. More than 26,000 enterprises benefited in 2025.
Enterprise Customers and Consumers: Accessibility to Low-Carbon and Digital Services	During the low-carbon transition, different industries and consumer groups have increasing demand for digital infrastructure, low-carbon services, and convenient communication services.	For enterprise customers, Chunghwa Telecom promotes industrial equity by supporting sectors such as rural education, remote healthcare, and agriculture to strengthen digital infrastructure in remote areas and introduce digital services. For consumers, Chunghwa Telecom provides caring solutions for diverse groups, including individuals with disabilities, low-income households, and the elderly, to alleviate their financial burden. In 2025, a total of 248 enterprise customer sites benefited, and senior-friendly customer service handled more than 295,000 calls.
Employees: Sustainable Talent Development	The net-zero transition may entail function adjustments and demands for emerging professional capabilities. It is necessary for employees to possess knowledge related to sustainability, decarbonization, and climate issues to align with the transition direction of the Company.	Chunghwa Telecom provides sustainability knowledge training every year on ESG, climate change, net-zero pathways, and carbon management, enhancing employees’ awareness of and participation in the transition plan. For professional fields such as corporate decarbonization, green ICT, data center energy efficiency, renewable energy procurement, GHG inventory, SBTi target management, and sustainability disclosure, Chunghwa Telecom organizes advanced courses and international certification guidance to cultivate cross-unit sustainability professionals.
Management and Governance Level: Climate Decision-Making Capability	The net-zero transition involves adjustments to strategy, investment, risk management, and operations, requiring strengthened decision-making capabilities among the management regarding climate-related issues and transition pathways.	Through sustainability leadership workshops for the mid-to-senior management, Board-level education on sustainability issues, and exchanges with international initiatives, Chunghwa Telecom strengthens strategic decision-making capabilities on climate-related issues to support the advancement of the transition plan of the Company.
Employees: Vehicle Electrification	The electrification of engineering and company vehicle fleet may impact frontline employees’ vehicle usage habits, maintenance awareness, charging convenience, and range arrangements.	Chunghwa Telecom divides the vehicle electrification process into a transition period and a growth period. The Company first conducts small-scale procurement to accumulate user experience, gradually expanding adoption year by year based on market maturity, vehicle model availability, and vehicle price reasonableness. Chunghwa Telecom collects feedback from frontline employees, gradually scales up the number of charging stations, and collaborates with charging service providers to alleviate driving range anxiety. Chunghwa Telecom strengthens employee training on electric vehicle performance, maintenance costs, and environmental impacts to improve user awareness and acceptance.
Supply Chain Partners: Carbon Management and Decarbonization Requirements	Suppliers may experience pressures related to implementation capabilities, costs, and data collection in the face of Chunghwa Telecom's requirements for carbon inventory, product and service carbon footprints, net-zero commitments, and decarbonization capacity building.	Through multiple channels, including procurement contract terms, supplier training, decarbonization workshops, second-party audits, supplier sustainability assessments, and the EARTH Sustainable Supply Chain Management Platform, Chunghwa Telecom continuously communicates with suppliers on requirements related to carbon inventory, product and service carbon footprints, net-zero commitments, and decarbonization capacity building.
Supply Chain Partners: Implementation Challenges and Capacity Building	Suppliers have reported practical challenges, including difficulties in acquiring upstream carbon data, defining the inventory boundaries for product or service carbon footprints, pressures related to third-party verification costs and timelines, methodologies for allocating carbon emissions in service contracts, material submission on the platform, and supporting evidence.	Chunghwa Telecom has established a phased implementation mechanism, including supplier carbon inventory reporting guidelines, GHG inventory checklists, training courses, decarbonization pathway planning workshops, and consultant review and guidance mechanisms. Chunghwa Telecom assists suppliers in building fundamental inventory capabilities and continues to formulate practical approaches to product carbon footprints, carbon emissions allocation in service contracts, reasonable estimation, and retention of supporting documents, thereby minimizing the implementation gaps during the initial adoption stage for different types of suppliers.

Continuous Improvement of the Transition Plan

Chunghwa Telecom will continue to conduct rolling reviews of its response measures based on the implementation progress of the Net-Zero Transition Plan, stakeholder feedback, supply chain carbon management maturity, and social impact assessment results. Moving forward, the Company will continually revise procurement terms, platform workflows, training content, and supplier guidance measures, while strengthening employee capacity building, digital equity, communications resilience, and supply chain decarbonization management so as to ensure that the net-zero transition process takes into account operational resilience, social inclusion, and the rights and interests of stakeholders.