Sustainable Governance

Sustainable Development Committee

Issue Date：2023/06/29

Sustainable Development Committee

“CHT Sustainable Development Committee” set out to plan the sustainable development strategies for the whole Company and promotes various sustainability/ESG action plans. It aims to drive the sustainable, low-carbon transition of the ICT industry, build a better living environment for the generations to come, and to contribute more to the sustainable development of the industry and society.

Item	Description
BoD Representative	Shui-Yi Kuo ,Chairman
Mechanism	The Sustainable Development Committee, in accordance with policies, systems, and related management guidelines approved by the Board of Directors, drives various action plans, coordinates the division of work, and monitor the progress of implementation. The quarterly reports to the Board of Directors include important issues, stakeholder communication outcomes, achievements in sustainable development, and the status of goal attainment. The committee also submits project reports to the Strategic Development Committee of the Board of Directors annually and seeks guidance and opinions from the directors.
Execution	The secretariat is composed of the Corporate Communications Department and the Corporate Planning Department which is responsible for externally communication including ESG annual reporting, information disclosure, ratings, awards, exhibitions, and media communication. Internally, including facilitates cross-team collaboration, manages goal setting and tracking, and designs performance evaluations. The ESG working group sets annual goals and OKRs (Objectives and Key Results) in collaboration with subsidiaries and affiliated institutions to drive and implement various sustainable development initiatives. The committee reports its progress and achievements in ESG initiatives to the Board of Directors on a quarterly basis. The directors provide guidance and opinions on various issues, and their feedback is tracked through the board meetings minutes. The relevant departments are responsible for providing updates on the progress of addressing the issues raised by the directors.
Meeting Frequency	Once every half a year for the Committee; quarterly for the inter-group meeting; monthly for the group meeting
Report Sign-off	Reports are submitted to Chairman for review and approval pursuant to the official document submission procedure upon review by the Vice President at the Headquarters.
Execution Result in 2022	The GHG inventory across the entire value chain (Scope 1-3) in 2022 To establish the internal carbon pricing Science Based Targets (SBTs) submitted for review and application to join RE100 filed Favorable childcare policies: ① childcare allowance for employees with children aged 6 and under ② 1 work hour reduced per day for employee with child aged 3 and under ③ early childhood education center at workplace The flexible working hour extended from 1 hour to 2 hours “Digital Empowerment Incubation Program” hand in hand with World Vision Taiwan and Microsoft Taiwan to plan for the children of disadvantaged families in Lanyu Linking ESG with the 10% variable compensation of senior managers Issuance of a 3.5 billion sustainable development bond “Senior Management ESG knowledge Courses” organized to deliver ESG education and training courses to senior managers A total of 46 employees participated in the "Corporate Sustainability Management Certification Training Program" and successfully obtained their certifications

ESG Supervision by the Board of Directors

The Board of Directors of Chunghwa Telecom plays an essential role in the supervision of sustainable development performance. Through regular supervision and performance assessment, it ensures the operating strategies and action plans of Chunghwa Telecom in alignment with the sustainable development goals of the Company.

Date	Board Meeting	Important Agenda
2022/01/25	The 16th Session of the Ninth Board of Directors	The ESG and sustainable development promotion results in 2021; the annual goal and the medium and long-term targets; key issues; and action plans of different groups for 2022
2022/05/26	The 19th Session of the Ninth Board of Directors	The important results in Q1; progress on the targets; key issues; and the plan for the GHG inventory and verification schedule of the parent company (reported quarterly in accordance with the FSC requirements)
2022/08/05	The 2nd Session of the Tenth Board of Directors	The important results in Q2; key issues; awards received in H1; progress on the targets; and the results of the GHG inventory of the parent company in 2021 (with the progresses reported quarterly in accordance with the FSC requirements)
2022/10/12	The 2nd Session of the Corporate Strategy Committee under the Tenth Board of Directors	"Energy Conservation and Carbon Reduction & Environmental Sustainability” (Project Report)
2022/11/04	The 3rd Session of the Tenth Board of Directors	The important results in Q3; key issues; awards received in H1; progresses on the targets; and the carbon inventory plan in 2022 (with the progresses reported quarterly in accordance with the FSC requirements)

ESG Internalization & Communication

To ensure that all employees of Chunghwa Telecom across Taiwan understand the spirit of corporate sustainability and actively implement it while providing timely feedback and suggestions, we have established multiple communication channels within the company. Through these channels, we promote relevant issues and integrate them into our performance evaluation mechanism. This allows us to translate sustainability concepts into actionable steps and effectively incorporate them into our daily operations.

Channel	Name	Action
Executive Communication	Senior Management Meeting	The material issues of sustainability are regularly submitted to the senior management meeting for discussion before resolutions adopted to improve directions and goals of development.
Employee Communication	Enterprise Information Portal	Chunghwa Telecom provides internal websites/systems for employees to submit suggestions or innovative ideas, allowing us to gather feedback and ideas from our employees. We also have an employee forum where they can openly express their opinions and concerns. Additionally, we have established channels for public complaints and reports, ensuring that employees have access to a designated platform for reporting any misconduct or issues. Internal messaging
Employee Training	Environmental Training	5G Plastic Free Environmental Education for volunteer training was conducted at Taichung and Kaohsiung in 2022 to communicate the ideas of environmental sustainability.
	Corporate Sustainability Education and Training	The Corporate sustainability-related courses are conducted, and external consultants are invited for education and exchange in line with the international trends every year.
	New Recruit Training	Chunghwa Telecom conducts digital training courses and growth camps for new employees to educate them on corporate values, personnel policies, work rules, and labor-management relations. These programs aim to provide comprehensive knowledge and understanding of the company's culture, values, and operational guidelines. By equipping new employees with this information, we ensure they are well-prepared to integrate into the organization, align with its mission, and contribute to its success. These training initiatives also promote a positive and inclusive work environment and foster strong employee engagement and satisfaction.
	e-Learning	Courses, timely information, and announcements are available to the employees anytime on the e-Learning system.
Annual Appraisal	Administrative Sustainability Performance	The sustainable development goals are incorporated in the annual management performance evaluation as the basis for departmental implementation performance appraisal.
	Online Test on CoC	Promotion and tests on the Code of Conduct, Ethical Corporate Management Best Practice Principles, and Insider Trading Prevention are conducted yearly.
	Reporting mechanism	Employees in violation of the Code of Conduct and Ethical Corporate Management Best Practice Principles are subject to disciplinary action in accordance with the corporate regulations upon verified as true.
Others	ESG Report Workshop	Chunghwa Telecom periodically conducts analysis of the latest external reports on ESG (Environmental, Social, and Governance) trends. These analyses are shared during internal meetings to enhance employees' awareness and understanding of ESG issues and their evolving landscape. By staying informed about industry trends and best practices in ESG, employees can actively contribute to the company's sustainability initiatives and align their work with broader environmental and social goals. This practice fosters a culture of continuous learning and promotes a collective commitment to responsible business practices across the organization.
Others	Official Website and Social Media	Chunghwa Telecom has established an "ESG Section" on its official website and YouTube channel. The company has also set up a Facebook fan page specifically focused on ESG topics.

Chunghwa Telecom Corporate Social Responsibility Best-Practice Principles.pdf