Supplier Development program

The Supplier Code of Conduct has been stipulated at Chunghwa Telecom with reference to the RBA Code of Conduct, specifically demanding all its supplier partners to adhere to the principles and standards. A complete supplier ESG assessment and capacity-building mechanisms have been established at the Company grounded in the RBA principles. The abilities to identify and manage environmental, social, and governance risks of the supply chain are enhanced through regular (annual) evaluations, correction and follow-up of nonconformities, as well as educational and training activities. Chunghwa Telecom is dedicated to fostering a sustainability partnership with its suppliers, working together to practice sustainable business and advance toward the goal of net-zero emissions within the supply chain. 

Supplier Assessment Process

Chunghwa Telecom conducts the holistic “Supplier Sustainability/ESG Risk Assessments” through three approaches as follows: 1. suppliers fill out the ESG questionnaire; 2. CHT personnel perform on-site visits; 3. a third-party verification body is commissioned to carry out on-site audits. Through the various evaluation mechanisms above, CHT strengthens its grasp of the supplier sustainability/ESG risks and ensures that its collaboration with supplier partners can put best practices in Environmental, Social, and Governance (ESG) into action and live up to its sustainable supply chain management objectives. 

Assessment Approach Description
Desk Assessment
  • Fill-out of ESG self-assessment questionnaire required for 100% of all suppliers.
  • Fill-out of the ESG questionnaire for suppliers with a procurement amount of NT$5 million or more, with relevant supporting materials provided, including relevant ESG policies, management system certificates, management documents, etc.
  • Review of the supporting documents of suppliers by employees and external consultants to assess the commitment, implementation status, and potential risks of suppliers on relevant ESG issues
On-site Assessment by Company Employees (Second-party Assessment)
  • On-site visit and assessment of suppliers are conducted by CHT employees on a regular basis.
  • Assess the ESG performance and risks of suppliers via on-site checks, interviews, and verification of relevant information
Assessment by Independent Third-party Entity (Third-party Assessment)
  • On-site audits to the sites of at least 40 significant suppliers selected each year by the commissioned independent third-party entity to verify the implementation status and risks in accordance with the “Chunghwa Telecom Supplier Code of Conduct” and the ESG Compliance Checklist
Supplier Assessment 2024 Target for 2024
Total number of suppliers assessed via desk assessments/on-site assessments 186
% of unique significant suppliers assessed 91.63% % of significant suppliers: 90
Number of suppliers assessed with substantial actual/potential negative impacts 8
% of suppliers with substantial actual/potential negative impacts with agreed corrective action/improvement plan 100
Number of suppliers with substantial actual/potential negative impacts that were terminated 0

Corrective Action Plan for Suppliers

Corrective Action Plan Support 2024 Target for 2024
Total number of suppliers supported in corrective action plan implementation 8 % of significant suppliers: 100
% of suppliers assessed with substantial actual/potential negative impacts supported in corrective action plan implementation 100

Supplier Development

Chunghwa Telecom is committed to improving the ESG competencies of suppliers and assisting suppliers in implementing various ESG policies and action plans. Through corresponding training and coaching, it helps suppliers further improve ESG competencies and strengthens its partnerships with suppliers.

Category Description
ESG Program Information/Training
  • Provision of detailed information on the Supplier ESG Program in the supplier procurement system, including the Supplier Code of Conduct, contract clauses, and ESG-related information and forms
  • Regular organization of 3 sessions of supplier education and 1 sessions of training, supplier partnership exchange conference, and provision of promotion and education on information related to the ESG Program.
Provision of ESG Benchmark Information
  • Provision of ESG courses/benchmark information over the "Supplier ESG Online Platform".
Assistance in Improvement Measures
  • External consultants commissioned to provide remote consulting support/review of the improvement measures of suppliers
  • Provision of information by internal employees in response to suppliers’ inquiries on improvement measures
In-depth Support Program
  • ESG Performance Assessment: Chunghwa Telecom collaborates with a third-party verification body to conduct ESG assessments of key suppliers. Based on the assessment results, ESG capacity guidance and strengthening mechanisms are offered to high-risk suppliers to help improve their sustainability performance.
  • CDP Supply Chain Program: Chunghwa Telecom has joined the CDP Supply Chain Program, offering its suppliers with consulting and education/training on carbon management, GHG inventory, and disclosures to help enhance carbon disclosure transparency and carbon management capabilities.
  • Key Supplier Decarbonization Pathway Workshop: “Key Supplier Decarbonization Pathway Workshop” is organized to share best practices in corporate carbon management and assist suppliers in developing tangible and feasible carbon reduction targets and pathways, strengthening their climate risk response and decarbonization efforts.
  • Environmental Sustainability Education: Each year, suppliers are led to a tour to certified environmental education facilities for environmental education and exchanges on sustainability topics, helping suppliers enhance their knowledge and practical skills regarding ESG issues.
  • Annual ESG Supplier Conference: “Annual ESG Supplier Conference” are organized yearly to promote suppliers’ knowledge and practice of Environmental, Social, and Governance (ESG) issues. Also, experts from industry, government, and academia are brought together to share successful sustainability cases and challenges, thereby improving the overall ESG maturity of the supply chain.
  • Chunghwa Telecom Supplier Net-Zero Sustainability Academy: “Chunghwa Telecom Supplier Net-Zero Sustainability Academy” has been established to offer thematic courses encompassing TCFD, circular economy, and carbon inventory, etc., online and offline, to strengthen the sustainable management knowledge of suppliers, offering support in their transition towards net-zero emissions.

Capacity Building Programs for Suppliers

Capacity Building Programs 2024 Target for 2024
Total number of suppliers in capacity building programs 167 % of significant suppliers: 80
% of unique significant suppliers in capacity building programs 82.27%
Report
 
  • Third-party verification statement Third-party verification statement
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