Sustainable Revenues
Chunghwa Telecom actively responds to national sustainable development policies. In line with the dynamic evolution of the regulatory scope, the Company upholds a pragmatic and transparent approach, implementing classification and review procedures across its various ICT operations. By aligning the core strengths of its digital infrastructure with sustainability indicators and continuously enhancing its governance processes, Chunghwa Telecom works to achieve its objective of supporting the industry's low-carbon transition and sustainable growth.
| Item | 2022 | 2023 | 2024 | 2025 |
|
Sustainable Revenues (NT$ million) |
10,577 | 10,578 | 11,622 | 13,953 |
|
Total Revenues (NT$ million) |
216,739 | 223,199 | 229,968 | 236,114 |
| Percentage of Sustainable Revenues (%) | 4.88% | 4.74% | 5.05% | 5.90% |
In line with the dynamic evolution of the regulatory scope, the Company upholds a pragmatic and transparent approach, implementing classification and review procedures across its various ICT operations. By aligning the core strengths of its digital infrastructure with sustainability indicators and continuously enhancing its governance processes, Chunghwa Telecom works to achieve its objective of supporting the industry's low-carbon transition and sustainable growth.
Measurement and Determination of Sustainable Revenues
Chunghwa Telecom applies the measurement approaches set out in the Taiwan Sustainable Taxonomy 2.0 to assess the contribution of its products and services to climate change mitigation, energy efficiency improvement, effective use of resources, and low-carbon transition, ensuring that the relevant economic activities meet sustainable transition standards. The sustainable revenues of the Company include solely revenue-generating products and services delivered to external parties, excluding non-revenue-generating activities such as internal energy conservation, renewable energy for self-consumption, or carbon offsets. The classification and determination results of the economic activities corresponding to the sustainable products of Chunghwa Telecom have been subject to third-party verification.
Chunghwa Telecom applies the measurement approaches set out in the Taiwan Sustainable Taxonomy 2.0 to assess the contribution of its products and services, ensuring that the economic activities meet sustainable transition standards. The classification and determination results of the economic activities corresponding to the sustainable products have been subject to third-party verification.
Identification and Categories of Economic Activities
In accordance with the regulations in the Taiwan Sustainable Taxonomy 2.0, Chunghwa Telecom conducts a compliance inventory across its entire product offerings for enabling economic activities and general economic activities, with relevant departments collaborating to confirm their substantial contributions to the environment and society. After evaluating the applicable items against their technical screening criteria, the Do No Significant Harm (DNSH) principle, Minimum Social Safeguards (MSS) requirements, and third-party verification results, four key categories are presented as follows to ensure the compliance, consistency, and verifiability of its sustainable revenue statistics.
In accordance with the regulations in the Taiwan Sustainable Taxonomy 2.0, Chunghwa Telecom conducts a compliance inventory across its entire product offerings for enabling and general economic activities. After relevant departments collaborate to confirm their substantial contributions to the environment and society, the applicable items are consolidated into the following four key categories to ensure the compliance and consistency of its sustainable revenue statistics:
| Activity Category | Corresponding Code | Chunghwa Telecom Products / Services | Activity Description | Criteria |
|---|---|---|---|---|
| Enabling Economic Activities | 4 |
|
Manufacturing of Energy-Efficient Equipment and Applications of Associated Technologies | The activities encompass the manufacturing of energy-efficient equipment and components as well as energy-saving technology improvement services, along with the commitment to promoting and introducing high-performance systems, process technologies, and energy management systems, including equipment or solutions that reduce greenhouse gas emissions. Reference standards: obtaining international or domestic energy-efficiency labels, such as the Energy Efficiency Label Grade 1 of the Republic of China, or other energy-efficiency labels issued by third-party institutions. |
| 13 | Energy-Efficiency Certified Multimedia Terminal Receiving Services | Other Applications Related to Low-Carbon and Circular Economy Technologies | The activities refer to introduction of low-carbon technologies or products certified or verified by a third party that significantly reduce GHG emissions compared with alternative solutions. Reference standards: substantive carbon removal benefits generated from implementation of other measures related to low-carbon and circular economy technology applications, which are verified by a verification body in accordance with the national standard CNS 14064-1. | |
| General Economic Activities | 20 | Intelligent Energy and Spatial Environment Management System Services | Installation and Maintenance of Smart Building Energy Management Systems | The activities cover the deployment and professional maintenance of smart sensing, energy-efficiency monitoring, and electricity control systems. The adoption of nationally certified low-energy-consumption energy control equipment helps optimize the energy efficiency of buildings and delivers smart energy management services with a high level of carbon reduction performance. Screening criteria: the Smart Building Label of Silver Grade or above. |
| 27 | Intelligent Traffic Flow Management and Transport Energy Efficiency Optimization Systems | Infrastructure for Road Transport and Public Transportation | The activities include the construction, modernization upgrades, and full life-cycle operation and maintenance of railway, metro, and road systems. Screening criteria: active integration of intelligent transportation technologies to mitigate traffic congestion, or the promotion of infrastructure such as transit-oriented development. |
In response to the dynamic evolution of sustainability taxonomy requirements and technical screening criteria, Chunghwa Telecom upholds a pragmatic and transparent approach, continuing to implement the classification of products and services, review of sustainability thresholds, attribution of revenues, and verification by a third party. The Company aligns the core strengths of its digital infrastructure with sustainability indicators, ensuring that its sustainable revenue disclosures include a clear product scope, classification basis, technical thresholds, quantified benefits, and verifiability, achieving its objective of supporting the industry's low-carbon transition and sustainable growth.
In line with the dynamic evolution of the regulatory scope, the Company upholds a pragmatic and transparent approach, implementing classification and review procedures across its various ICT operations. By aligning the core strengths of its digital infrastructure with sustainability indicators and continuously enhancing its governance processes, Chunghwa Telecom works to achieve its objective of supporting the industry's low-carbon transition and sustainable growth.
Sustainable Value Expansion and Implementation Plan
Chunghwa Telecom embeds its sustainable products program deep into its dual-axis strategy of "digital transformation" and "ESG sustainable development." Through an institutionalized management mechanism, the Company continuously identifies, develops, and expands its sustainable products and services portfolio, focusing on market demands for digital resilience, low-carbon operations, smart applications, and climate adaptation. Chunghwa Telecom also incorporates the development of sustainable products into its annual business strategy and ESG governance structure and regularly reviews implementation performance to increase the market share and revenue contribution of sustainable products.
1. Methodology for Sustainable Revenues Quantification
Revenues from Chunghwa Telecom's sustainable products and services are determined in accordance with the Taiwan Sustainable Taxonomy 2.0 issued by the Financial Supervisory Commission. The Company inventories and reviews each product and service, classifying and determining them based on their specific and quantified environmental benefits, technical screening criteria, the Do No Significant Harm (DNSH) principle, and Minimum Social Safeguards (MSS) requirements. The final classification and determination results are included in the scope of sustainable revenue statistics upon third-party verification.
Revenues from Chunghwa Telecom's sustainable products and services are determined in accordance with the Taiwan Sustainable Taxonomy 2.0 issued by the Financial Supervisory Commission. The Company inventories and reviews each product and service, and the final classification and determination results are included in the scope of sustainable revenue statistics upon third-party certification.
The relevant operating mechanisms include:
- Establishing a list of sustainable products and services and regularly reviewing their applicability.
- Calculating annual revenues and their percentage of total revenues by product category.
- Consolidating, reviewing, and managing data by responsible units to ensure the consistency and accuracy of disclosure.
- Adjusting the determination criteria for sustainable products on a rolling annual basis in accordance with the latest laws and regulations, classification standards, and guidelines.
2. Setting of Specific Targets
To effectively measure the performance of initiatives, Chunghwa Telecom has set the following time-bound, quantified medium- to long-term targets for core sustainable business opportunities as follows:
- Digital resilience service growth target: For "diversified resilience services for networks, systems, and cybersecurity," Chunghwa Telecom has set a target compound annual growth rate (CAGR) of 6% to 10% for revenues from related products in the period from 2025 to 2030.
- Sustainable revenue product scale target: With 2025 as the base year, revenues from sustainability-related products, such as IDCs, cloud computing, low-carbon digital services, data-driven carbon reduction, and satellite communications, are calculated based on an annual growth rate of 7.1%. Chunghwa Telecom expects cumulative operating revenues for the 2026–2028 period to reach NT$68.96 billion.
3. Key Resource Inputs and Medium- to Long-Term Growth Strategies
Chunghwa Telecom will continue to center its efforts on sustainable product development, invest key resources, and drive medium- to long-term growth strategies. For the core solutions of its sustainable products, such as green IDCs and diversified resilience services, the Company actively introduces advanced technology applications. These efforts not only improve its energy efficiency but also directly convert the benefits of energy conservation and carbon reduction into business advantages for clients and customers, creating a win-win cycle for both the environment and revenues.
Investment in Sustainable Technology Assets and Infrastructure
- High-performance infrastructure upgrades: Chunghwa Telecom prioritizes resources for high-efficiency uninterruptible power supply (UPS) systems and energy-efficient water-cooled air-conditioning systems at IDCs, transforming physical assets into a low-carbon cloud environment available to customers, to bring about key infrastructure improvement for the promotion of sustainable products and services portfolio.
- Self-developed AI smart energy control system: In 2025, the power usage effectiveness (PUE) of IDCs at Chunghwa Telecom approximated 1.587, representing continuous improvement compared with 1.61 in 2024. The Company plans to reduce the PUE of its IDCs to below 1.5 by 2030, continuously improving its low-carbon operational performance.
R&D Resources and Talent Deployment
- Expanding human capital: Chunghwa Telecom regards talent as the core driver for promoting sustainable products. Through the recruitment of emerging technology talent, cross-departmental collaboration, and the engagement of professional teams, the Company continues to boost its sustainable product R&D capacity and market competitiveness. In 2025, the budget for R&D-related human resources accounted for approximately 9% to 11% of the overall R&D budget.
- Strengthening R&D capacity: Chunghwa Telecom values the core capabilities of research and development (R&D), committing more than 1,000 R&D professionals and technologies as well as investing more than NT$2 billion in internal R&D funding. The R&D fields span broadband networks, mobile networks, operations management, cloud computing, digital innovation, smart connectivity, artificial intelligence, and cybersecurity. The Company also introduces sustainable design principles to drive sustainable innovation with a wealth of R&D resources.
Investment and Resource Inputs for the Sustainable Products and Services Portfolio
The Company incorporates sustainable values into its core investment decisions and, guided by industry technology trends and relevant standards, continues to strengthen resource allocation in key areas to build the technological advantages and competitive capacity of its sustainable portfolio. In 2025, with the operating costs for sustainable products and services accounting for approximately 5% to 7.5% of total operating costs, Chunghwa Telecom invested in sustainable product operation and maintenance, technology R&D, talent development, and market promotion, ceaselessly enhancing its scale and market competitiveness.
Sustainable Business Opportunity Identification and Professional Empowerment Program
- Professional competency training for all employees: From 2024 to 2025, Chunghwa Telecom offered 12 courses related to ESG and sustainable product business opportunities, strengthening its employees' basic knowledge of ESG and their ability to identify market opportunities.
- Senior-level sustainability governance and decision-making empowerment: To elevate the decision-makers' awareness of global sustainable transformation, Chunghwa Telecom regularly conducts dedicated sustainability training courses each year. The scope covers sustainability trends, climate risks, green technology development, and domestic and international trends in sustainability and climate-related regulations. In 2025, all 13 Board Directors completed dedicated sustainability training, accumulating 93 training hours, so as to strengthen the Board of Directors' governance capabilities in climate change and sustainable transformation.
- Product and business function training: Regarding product planning, R&D innovation, solutions, and business promotion teams, Chunghwa Telecom continues to introduce training content on sustainable design principles, low-carbon product classification, and customers' carbon reduction needs, strengthening its sustainable product development and market promotion capabilities.
Promotion Incentive Measures
Chunghwa Telecom has established a comprehensive business promotion incentive mechanism and includes sustainable products and services as its key focus for promotion. Through clear incentive measures, the Company encourages its teams to expand relevant markets and deepen customer communication. The current incentive programs related to sustainable products account for approximately 13% to 16% overall, deeply integrating sustainable development with business performance and continuously enhancing the teams' momentum in promoting sustainable products.