Sustainable Development Organization

To ensure an ongoing, proactive corporate contributions on sustainable development, and to fulfill the expectations of diverse stakeholders, Chunghwa Telecom has established the Sustainable Development and Strategy Committee under the board of directors as the highest governing unit for Chunghwa Telecom 's sustainable development efforts. With Chairman as the Convener, the committee is all composed of directors with more than 50% being independent directors.

To live up to its sustainability/ESG vision and strategies, Chunghwa Telecom established the Sustainable Development Promotion Committee, organized by the management department and with the Chairman serving as the chairperson. It consists of four working groups: Environmental Group, Social Group 1, Social Group 2, and Governance Group. A Senior Executive Vice President-level supervisor serves as the Chief Sustainability Officer, overseeing the Secretariat in assisting with the promotion of committee affairs. The committee stays abreast of the sustainable development trends and dynamics at home and abroad in a timely manner, promotes proper action plans, and regularly reports to the Sustainable Development and Strategy Committee, and aims to continuously create value for stakeholders.

Sustainable Development and Strategy Committee

In 2023, Chunghwa Telecom merged the Sustainable Development Committee with the Corporate Strategy Committee as the Sustainable Development and Strategy Committee and elevated it to the level of a functional committee under the Board of Directors.

The Sustainable Development and Strategy Committee offers strategic guidance on the vision, long-term policies, and management approaches of sustainable development, and mid-to-long-term goals, and ensures communication with and responsiveness to stakeholders. (For details on the members and organizational regulations of the committee, please refer to the Functional Committees under the Board of Directors）.

Sustainable Development Promotion Committee

To incorporate the sustainability/ESG strategies into daily business activities, the Sustainable Development Promotion Committee is established under the Sustainable Development and Strategy Committee, composed of the management department and aims to adhere to the Company's overall sustainable development strategy. It promotes various sustainable action plans with “Sustainable Transformation; Low-carbon Net Zero” at the core to create a better living environment for future generations and to contribute more to the sustainable development of industry and society.

Item	Description
Chairperson	Chairman of the Board
Mechanism	Undertakes the strategies directed by the Sustainable Development and Strategy Committee, drives various action plans, coordinates the division of work, and monitors the progress of implementation. Formulates the sustainable development policies and implementation objectives, convenes regular meetings to oversee the implementation progresses and discussion on key issues of various sustainability sub-groups, and stays abreast of the overall sustainable development advancement; reports on the sustainable development progresses and key issues to the Sustainable Development and Strategy Committee under the Board of Directors on an annual basis.
Execution	A Senior Executive Vice President-level supervisor serves as the Chief Sustainability Officer, overseeing the Secretariat in assisting with the promotion of committee affairs. The Secretariat is composed of the Corporate Communications Department and the Corporate Planning Department. Externally, it is responsible for the preparation of the ESG report and information disclosure, various ratings and awards, participation in exhibitions, and media communications. Internally, it manages cross-group collaboration, goal setting and tracking, and performance evaluation design. Sets annual ESG targets and KPIs for each sub-group, in collaboration with the business groups at Chunghwa Telecom and their affiliated institutions, to promote and implement various actions of sustainable development.
Meeting Frequency	The Promotion Committee meets semi-annually, cross-group meetings are held quarterly, and working group meetings take place monthly.
Key Sustainability Performance	2045 Net Zero target validated by the Science Based Targets initiative (SBTi) Participation in the EV100 initiative, committing to achieving 100% electrification of directly controlled fleets for all company cars by 2030 Continuous implementation of internal carbon pricing with 111 innovative proposals submitted, 51 approved, and approximately NT$700 million were granted in 2024 Carbon footprint verification of 443 directly operated stores across Taiwan Hundred-Species Restoration Project, AI-enabled Black-faced Spoonbills Monitoring, hosting of "No Net Loss and No Deforestation Forum," among other biodiversity actions. Publication of TNFD Report (Chinese and English) Advancement in Net Zero and sustainability expertise, with 81 senior executives obtaining ISO 14064-1 international certification for carbon footprint verification In collaboration with the Taiwan Institute for Sustainable Energy in the "Net Zero Manager and Biodiversity Certification Training Program "with 42 employees participating in and obtaining the certification Cultivation of 127 certified citizen scientists for tree carbon, incorporating scientific expertise in corporate volunteer programs Continuous enhancements to employee benefits through six incentive measures, including salary increases, meal allowances, enhanced ESOT rewards, promotion encouragement, higher employee compensation ratios, and one-time bonuses Enhancement of childcare benefits: (1.) daily working hours reduced by 1 hour for employees with children aged 6 and under (2.) continuous expansion of on-site childcare centers (3.) childbirth subsidies of NT$80,000 per child (4.) 13-week (91 calendar days) maternity leave Promotion of the Digital Care Program, helping over 7 thousand individuals from diverse groups achieve digital equity and enhance their digital skills Supporting over 35 thousand small and medium-sized enterprises (SMEs) in building digital environments and developing digital capabilities Offering thoughtful programs and friendly customer service (sign language, video, and senior-friendly support), benefiting approximately 710 thousand individuals Establishment of Taiwan Senior Heart School to empower people with disabilities to become digital instructors and support seniors in digital learning Linking ESG performance indicators with senior managers' 25% variable compensation, and expanding the scope to nearly 100 executives Enhanced corporate governance with disclosing board members’ remuneration individually Introduction of ISO 37001 Anti-bribery management system

Sustainability Oversight Results of the Board of Directors

The Board of Directors of Chunghwa Telecom plays a crucial role in supervising the Company’s promotion of sustainable development initiatives. It ensures the alignment between Chunghwa Telecom's sustainable/ESG strategies and action plans with the Company's sustainable development goals by means of regular review and performance assessment.

Year	Meeting	Oversight Matters
2024	The 09th, 11th, 12th, and 13th Board Meetings of the 10th Board of Directors	Key sustainability results, awards, target achievements, and key issues of each quarter in 2023 and 2024 Summary report on the Sustainability Development and Strategy Committee meetings Greenhouse gas inventory results
2024	The 09th, 10th, 12th Meetings, and the 3rd Ad Hoc Meeting, of the Sustainability Development and Strategy Committee under the 10th Board of Directors	Sustainability development promotion strategies for 2024 4 sessions of ESG report.

Internalization & Communication of Sustainability

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.
Employee Training	Environmental Training	5G Plastic Free Environmental Education for volunteer training was conducted in cities such as Taichung and Kaohsiung 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	Sustainability 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 sustainability development trends. 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.

Documents

Sustainable Development Best-Practice Principles of Chunghwa Telecom

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