Supplier ESG Program

Aside from putting ESG (Environmental, Social, and Governance) into practice in its operations, Chunghwa Telecom further takes the initiative to promote sustainable development in the supply chain and works with supplier partners to jointly implements the ESG principles. 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.

CHT ESG Program for Suppliers

Category Description
Policy and Commitment Chunghwa Telecom Company, Ltd. Supplier Code of Conduct
Board Oversight
  • The “Chunghwa Telecom Company, Ltd. Supplier Code of Conduct” has been formulated by the Board of Directors, and signed by the representative thereof, as the highest guiding principle.
  • The Board of Directors is responsible for overseeing the implementation of the “Supplier ESG Program.”
  • 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.
Code of Conduct Conformity Review
  • Suppliers are required to sign and abide by the “Chunghwa Telecom Company, Ltd. Supplier Code of Conduct
  • The implementation of the Code of Conduct by suppliers are reviewed (by means of contract/audit) on a regular basis.
Contract Termination Clauses
  • CHT suppliers with transactions of a certain amount or above must meet specific qualifications of the Supplier Sustainability Rating or RBA Silver Certificate or above before bidding.
  • 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 failure in corrective actions taken upon occurrence of a major ESG incident in a specified timeframe.
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.
  • Based on the total weighted score across all ESG dimensions, suppliers with better ESG performance are prioritized in the selection.
Procurement Personnel Training
  • Each year, ESG trainings are provided to the personnel on the procurement units and the stakeholders related to internal procurement on a regular basis.
  • Training mechanism: Internal courses, and collaboration with external entities for trainings, are arranged to ensure that they understand their duties and responsibilities in the Supplier ESG Program and how to promote and manage the ESG Program effectively.

Documents

Report
 
  • Chunghwa Telecom Supplier Code of Conduct Chunghwa Telecom Company, Ltd. Supplier Code of Conduct.pdf
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