Sustainable Supply Chain

Supplier ESG Program

Issue Date:2023/06/30

ESG Program for Suppliers

Committed to the promotion of sustainable development in the supply chain, CHT joins hands with suppliers to implement ESG. In this regard, we have established a comprehensive Supplier ESG Program. In addition to reducing ESG risks in procurement, it also ensures that our business partners improve their ESG standards step by step to march towards the vision and goals of sustainable development together.

CHT ESG Program for Suppliers
Category Description
Policy and Commitment Chungwa Telecom Supplier Code of Conduct
Board Oversight
  • The “Chunghwa Telecom Supplier Code of Conduct”is signed by the representative of the Board of Directors as the highest guiding principle.
  • The ESG management program is regularly reviewed by the Board of Directors to ensure the cooperation with suppliers in line with the sustainability policies and goals of the Company.
  • The Board of Directors is responsible for overseeing the implementation of the “Supplier ESG Program.”
Code of Conduct Review
  • Suppliers are required to abide by the “Chunghwa Telecom Supplier Code of Conduct,” which covers aspects like ethical business practices, human rights protection, labor rights, and environmental protection.
  • The implementation of the Code of Conduct by suppliers are reviewed (by signing the consent statement) on a regular basis, with necessary coaching and support provided to ensure the alignment with the management expectations and goals.
ESG Rating and Contract Termination Clauses
  • By 2027, CHT suppliers must meet specific qualifications of the Supplier Sustainability Rating or RBA Silver Certificate or above before bidding for a certain amount of money of orders with CHT.
  • Through mechanisms such as “ESG assessment questionnaire and second-party audit,” the ESG performance of suppliers is assessed, and the results of which are shared with the suppliers as a reference for improvement planning.
  • Contract termination clauses are inserted in contracts. CHT reserves the right to termination of cooperation for any failure of a supplier in meeting the specific requirements in ESG performance or occurrence of a major ESG incident.
Weighting Introduced into the Supplier Selection
  • A minimum ESG requirement (accounting for 33% of the total weight of the evaluation) is set in the supplier selection, and priority is given to the suppliers with better ESG performance, to ensure that the suppliers we work with have a good ESG performance and conform to the ESG vision and goals of the Company.
Procurement Personnel Training
  • Each year, ESG trainings are provided to the personnel on the procurement units and the stakeholders related to internal procurement (either organized internally or in cooperation with external entities) on a regular basis to ensure that they understand their duties and responsibilities in the Supplier ESG Program and how to promote and manage the ESG Program effectively.