The Board of Directors is responsible for overseeing the implementation of the Supplier ESG Program and regularly reviewing sustainable supply chain management results to ensure that supplier cooperation, procurement management, and the objectives of the Sustainable Supply Chain Initiative align with the sustainability policies and long-term business strategies at the Company

Suppliers are required to sign and comply with the Chunghwa Telecom Supplier Code of Conduct. The Company regularly reviews suppliers’ implementation of the Code of Conduct through contract management, document checks, supplier ESG assessments, on-site visits, and on-site audits conducted by commissioned third-party verification bodies. Chunghwa Telecom also continuously reviews its procurement practices to avoid conflicts between delivery, cost, or quality demands and ESG requirements.

For transactions of a certain amount or above, suppliers are required to meet the qualifications of the Supplier Sustainability Partner Rating at the Bronze level or above, or possess an RBA Silver Certificate or above, prior to bidding, which is slated for official implementation in 2027. Through mechanisms such as ESG assessment questionnaires and second-party audits, suppliers’ ESG performance is scored. The results are shared with suppliers as a reference for formulating corrective action/improvement plans. Contract termination clauses are included in contracts. If a supplier violates the ESG Program, fails to meet specific ESG performance requirements, or experiences a specific or material ESG incident and cannot achieve the required improvements within a set timeframe, Chunghwa Telecom reserves the right to terminate the contract.

Chunghwa Telecom incorporates ESG performance into supplier selection and contract award mechanisms, establishes minimum ESG performance requirements, and includes ESG indicators in the selection weight, accounting for 33% of the total weight. Based on the overall weighted score across all dimensions, suppliers with better ESG performance are preferred, thereby promoting supply chain sustainability performance and operational resilience.

Each year, ESG training is regularly provided to buyers and internal procurement-related stakeholders at the Company. The courses cover the Supplier Code of Conduct, supplier ESG assessments, sustainable procurement, risk identification, ESG audits, and improvement tracking. This ensures that procurement personnel understand their roles in the Supplier ESG Program and can effectively implement and manage supplier ESG programs.