Circular Economy Strategies

In response to the UN SDG 12: Responsible consumption and production and the circular economy promotion in Taiwan's 5+2 Industrial Innovation Plan, Chunghwa Telecom proposed its five commitments of circular economy with the 5R Principle higher than the statutory requirements at home and abroad:

Reduce: Establish a green operation and consumption model to properly manage and reduce consumption of energy and resources, along with enhanced education and promotion for employees, suppliers, and customers.
Reuse: Increase circularity and improve resource cycling technology for resource regeneration and recycling.
Repair: Promote eco-friendly design and extension of service life of products and offer circular products that are more durable, easy to repair, and recyclable.
Reuse : Promote green procurement, reject products with no green concept, and purchase products with green labels or with an equivalent efficiency thereof.
Recycle: Facilitate an industrial chain symbiosis and develop forward-looking energy technologies to elevate energy/resource efficiency and promote recycling.

In 2020, CHT became the first telecom operator that obtained the verification statement of BS 8001 (Circular Economy). Upholding the principle of "service quality assurance," we refurbished the MOD set-top box, STB for reuse. The lifecycle of MOD set-top box, STB is extended successfully to avoid resource wasted and reduce pollution.

Achieved maturity level 4 in the level optimizing process in 2024. Under the BS 8001 guideline framework, we establish short-, medium-, and long-term circular economy strategies and objectives as a basis for reviewing workflows and assessing the achievement of phased results. We continuously optimize and improve the Customer Premises Equipment (CPE) recycling and remanufacturing circular economy model, aiming to expand the effectiveness of circular economy implementation and lead our upstream and downstream industry chain toward a circular economy transformation.

Circular Economy Model for Customer Premises Equipment (CPE) Recycling and Remanufacturing
1. Actively implement equipment recycling to enable the reuse of devices, replacing direct disposal
2. Strictly control equipment power to mitigate the environmental impact of product services at the consumer end. Ensure that workflows remain smooth after the implementation of the circular economy model, while maintaining customer satisfaction and support
3. Reduce carbon emissions during the manufacturing phase by recycling, repairing, and refurbishing equipment
4. Utilize the concept of the secondary raw material recycling/by-product business model to auction used equipment to qualified suppliers. The equipment will be auctioned to licensed waste disposal companies for processing. It will be dismantled for secondary raw material recovery, and any remaining valuable materials may be reintroduced into the market for reuse
Chunghwa Telecom's CPE recycling and remanufacturing process is being integrated with ISO 14067 guidelines. Through the calculation and analysis of the service carbon footprint in the recycling and remanufacturing process, further carbon reduction strategies are being developed to mitigate emissions generated in the logistics and supply chain phases of the equipment's lifecycle.
Following circular economy guidelines, we actively integrate circular economy principles into CPE-related services, including internet services, broadband access, and multimedia content transmission platforms. Through obtaining the BS 8001 circular economy audit declaration issued by an international third party, we remain committed to corporate sustainability and meeting societal expectations. We also aim to enhance user satisfaction with CPE-related services and improve ESG performance by promoting green product services, thereby stimulating user growth and organizational revenue.
CPE services - The circular business model for product service systems is outlined as follows:

5R Principle	Current Company Operations and Future Plans
Reduce	Reduce waste from home gateways (HGW), Mesh AP WiFi routers, and MOD set-top boxes by adhering to operational principles of maximum efficiency, reuse, and improved device sizing.
Reuse	CPE is leased to consumers along with product services; upon service termination, the equipment can be collected for remanufacturing and returned to inventory for reuse by the next customer, achieving the goal of reuse.
Repair	Conduct repairs if the performance and appearance of the CPE are in good condition instead of manufacturing a new device, extending the equipment's lifecycle and reducing resource waste.
Refuse	Reject the use of inefficient and non-environmentally friendly CPE, and actively establish a green supply chain.
Recycle	When CPE is damaged or needs to be disposed of, the equipment will be sold to waste disposal vendors for processing and recycling.

Note: Customer Premises Equipment (CPE) refers to equipment such as MOD Set-Top Boxes (MOD STB), Wi-Fi Routers (Mesh AP), and Home Gateways (HGW).

WEEE Management and Takeback Action Program

Starting from 2022, a comprehensive waste electrical and electronic equipment (WEEE) management mechanism has been established at Chunghwa Telecom. WEEE generated from products sold reaching their end of life are continuously tracked and managed, with a particular focus on the recycling and reuse of ICT devices, e.g., smartphones and tablets. The Company regularly collects and analyzes mobile phone takeback data on a monthly basis, categorizing them into used phones for reuse and waste phones for recycling, serving as the basis for resource recycling and waste reduction strategies.

Mobile phone takeback data tracking: CHT regularly tracks the volume and progress of mobile phone takeback each month, with which the recycling strategies are adjusted accordingly.
Mobile phone takeback target setting: The takeback target was set at 100,000 mobile phones for 2024, with 98,645 units actually collected, achieving a completion rate of 98.645%. For 2025, the target remains at 100,000 units, continuously promoting a stable growth in the takeback volume.

Cellphone Recycling Action Plan

Cellphones recovered by stores	Target in 2024	Cellphone recovered in 2024	Achievement rate in 2024	Target in 2025
Old cellphones （reused）	92,000	85,058	92.45%	92,000
Waste cellphones（recycled）	8,000	13,587	169.98%	8,000
Total	100,000	98,645	98.65%	100,000

Mobile Phone Takeback Program

To promote effective WEEE collection and reuse, a comprehensive WEEE takeback program has been established at Chunghwa Telecom. Various channels are promoted for mobile phone takeback, both online and offline, including:

Online Takeback Service: Application for used mobile phone takeback is available through the online store, with Senao International commissioned to provide appraisal and doorstep pickup services, enhancing takeback convenience for users
Brick-and-mortar Store Takeback: Mobile phone takeback equipment is available at nearly 700 regular and franchise stores across Taiwan, covering 100% of our operating sites, with recycling signs posted outside the stores for easy user access.
EPBOX Mobile Phone Takeback Bot: EPBOX Self-service Takeback Bots have been deployed in 50 designated stores across Taiwan. With AI image recognition and hardware testing technology combined, the robots provide quick and accurate used phone appraisal services.
Trade-in Discount Program: Special trade-in discounts are offered when purchasing a new device, coupled with a designated mobile service plan, to boost users’ willingness to engage in recycling, accounting for approximately 50% (around 50,000 units) of the annual total mobile phone collected.
Campaign in Collaboration with the Ministry of Environment: In October each year, in conjunction with the Ministry of Environment’s “Mobile Phone Recycling Month” campaign, additional Hami Point rewards are available to encourage public participation in mobile phone recycling.

WEEE Disposal and Data Security

To ensure the data security and eco-friendly disposal of mobile phones collected, Chunghwa Telecom and its partner, Senao International, jointly implement measures as follows:

Data Erasure: Automated software, Lean One-Touch™, is used to erase mobile phone data, which adheres to international standards of the industry for data erasure, passed the ADISA and the NIST certifications of the U.S., and complies with the EU GDPR, warranting a complete erasure of user data and preventing the risk of personal data breach.
Waste Disposal: Industrial waste disposal service providers approved by the Ministry of Environment (R2 certified) are commissioned for waste phone disposal. Also, a triplicate form for off-site industrial waste disposal management is provided as proof of the recycling process.

End-of-Life Product Management Metrics	2021	2022	2023	2024
Mobile phone materials collected from the takeback program (metric tons)	9.3062	10.5361	11.5515	12.8075
Percentage of takeback WEEE reused / resold / recycled	90.46%	90.19%	91.42%	82.50%
Percentage of takeback WEEE disposed / landfilled	9.54%	9.81%	8.58%	17.5%

Education, Training, and Promotion

Chunghwa Telecom attaches importance to consumer and employee awareness and participation in WEEE recycling, continuously promoting education and outreach activities as follows：

In-store Education and Training: Training courses on used device recycling are conducted for retail stores annually. 30 representative stores from regions participated in 2024, and 43 stores in 2025, with the course slides made available to all stores.
Recycling Promotion Information: Waste phone collection equipment (e.g., used mobile phone recycling bins/boxes) are installed to all stores (franchise stores included), and recycling signs are posted outside the stores to enhance consumers’ recycling awareness.
Online Takeback Information: Information related to mobile phone takeback services is available on the campaign page of our corporate website for easy inquiry and participation by consumers.

Recycling Signs	Recycling Box (Type 1)	Recycling Box (Type 2)

Resource Management