Chunghwa Telecom today announced that the company received an “AA” ESG rating from MSCI. Notably, the Company’s Privacy and Data Security score was significantly higher than the industry average, with outstanding performance in the global Communication Services industry. While MSCI views telecom operators as labor intensive, thus face the risk of labor unrest, Chunghwa Telecom values communication with employees and conducts annual surveys to monitor job satisfaction, which has been regarded as a best practice among industry peers. It demonstrates the Company’s outstanding achievements in employment retention and long-term sustainable management, which has been recognized internationally.
MSCI is one of the world’s leading ESG rating institutions, and its ESG research team analyzes the performance of companies in environmental, social and governance (ESG) related business practices, with a focus on climate change, natural capital, human capital, product liability, corporate governance, corporate behavior, etc., and further divided into 35 key indicators. MSCI defines relevant ESG key issues and weights based on the industry characteristics, then assesses and rates the companies on a scale of AAA (leader) to CCC (laggard) accordingly. The research and rating results are an important reference for many domestic and foreign investors when making investment decisions.
MSCI defines 9 key ESG metrics for the Communication Services industry, including carbon emissions, labor management, privacy & data security, board, pay, ownership, accounting, business ethics and tax transparency. Chunghwa Telecom has excellent performance in carbon emissions and privacy & data security, taking the lead among industry peers. The MSCI ESG Rating report pointed out that Chunghwa Telecom’s privacy policy features extensive user rights, along with rigorous privacy security management and protection measures, which contributed to the upgrade. Furthermore, the accomplishment of Chunghwa Telecom’s sustainable governance in terms of continuously enhancing its business ethics framework, strengthening ethical management, and actively maintaining board diversity has been also noted by MSCI. Regarding labor management, Chunghwa Telecom conducts a “Happiness at Work Survey” annually to capture employees’ thoughts about working environment, welfare, employee engagement, and identification with corporate transformation, which has been recognized as a best practice by MSCI.
Mr. Kuo Shui-Yi, Chairman of Chunghwa Telecom, said, “Our top three visions for sustainable development are Going Green & Decarbonization, Digitization & Empowerment, and Integrity & Transparency. We will uphold the spirit of ‘always staying ahead’ to continuously implement sustainable governance with the highest standards, creating sustainable value for investors, employees and shareholders.” Chunghwa Telecom aims to achieve an MSCI AAA ESG rating as soon as possible in the future to pursue its vision for a sustainable environment with humility and excellence and contribute to the sustainability of our living environment.
