Chunghwa Telecom once again received world-class acclaim for its sustainability achievements. On June 25th, 2024 (U.S. time), TIME Magazine unveiled the results of "World’s Most Sustainable Companies of 2024," in which Chunghwa Telecom stood out from the 5,200 companies evaluated worldwide and secured a coveted spot on this prestigious list. Moreover, in sustainability achievements, Chunghwa Telecom is ranked in the top 2% and acknowledged as the best sustainable telecommunications company in the Asia Pacific region. Such accomplishment underscores Chunghwa Telecom's exceptional sustainability performance and widespread recognition for its sustainable practices in line with international standards.
By determining “World’s Most Sustainable Companies of 2024," TIME Magazine aims to highlight businesses with notable and distinguished achievements in sustainability, encouraging businesses integrate sustainability into core corporate strategies. To identify the top 500 companies, the process involves a rigorous methodology of more than 20 key data points. The evaluation criteria include analysis of external ratings from reputable organizations, the quality and availability of sustainability reports, compliance with international reporting standards, gender diversity on board and in leadership, gender equality, work safety, and net zero emission measure. The pool of 5,200 companies is spread across more than 30 countries, encompassing 21 diverse industries, while the top 500 companies with the highest scores are awarded the title of World’s Most Sustainable Companies of 2024.
A Global Benchmark in Sustainable Development, CHT Has Achieved Top Positions in Multiple Global Awards
Shui-Yi Kuo, Chairman of Chunghwa Telecom, emphasized that it’s a great honor to be highly recognized by the TIME Magazine for CHT’s sustainable governance, which underscores the dedication of every Chunghwa Telecom employee in advancing sustainability. Chunghwa Telecom embraces ESG sustainable development as a steadfast commitment, actively aligning with international initiatives and government policies. Embracing the principles of "green and low-carbon, digital empowerment, integrity and transparency," CHT diligently promotes and implements various initiatives. Beyond the company’s sustainable practices, CHT engages partners who share similar values, working together to foster environmental, social, and economic sustainability in Taiwan and globally. In the future, Chunghwa Telecom will continue to stay committed to its original mission, continuously pushing boundaries to achieve the vision of becoming an international benchmark enterprise built upon sustainable development.
Chunghwa Telecom has actively engaged in ESG initiatives with impressive outcomes, notably becoming the first in the global telecom sector to achieve the highest TCFD rating for three consecutive years. Last year, Chunghwa Telecom proudly retained its position in the Dow Jones Sustainability Indexes (DJSI), ranking first in the global telecommunications industry. This year, Chunghwa Telecom is recognized by S&P Global sustainability yearbook as one of the top 5% of global companies in ESG scores, showcasing its ongoing commitment to sustainability efforts. FinanceAsia, a globally renowned financial magazine, awarded Chunghwa Telecom the Silver Prize for "Most Committed to ESG" in Taiwan, solidifying its reputation as the leader in Taiwan's telecommunications sector and highlighting its exceptional ESG performance, widely acclaimed on the global stage.
Advancing Net Zero Sustainability and Biodiversity, CHT Practices Environmental Harmony and Shared Prosperity
Chairman Kuo highlighted that in response to climate change, Chunghwa Telecom is implementing a dual-track strategy of technology-driven carbon reduction and the adoption of renewable energy, ensuring that sustainable low-carbon objectives are embedded in daily operations. Chunghwa Telecom convinced that business growth and sustainability can go hand in hand; the best evidence is that the Chunghwa’s revenue of the parent company increased by 5.7% while the carbon emissions experienced a downward trend, decreasing 14% in 2023 compared to 2020.
Chunghwa Telecom actively responds to government policies aimed at preserving biodiversity. CHT has committed to achieving Net Positive Impact (NPI) on biodiversity by 2030 and attaining the goal of No Net Deforestation (NND), having led these initiatives since last year. This year, the company is actively promoting the adoption of Other Effective Area-based Conservation Measures (OECM) at its operational sites and will launch the Taskforce on Nature-related Financial Disclosures (TNFD) report, reflecting its holistic approach towards biodiversity conservation. Furthermore, Chairman Kuo emphasized that Chunghwa Telecom will definitely continue to promote sustainable transformation within the industry ecosystem, aiming to achieve mutual prosperity between business and the environment.
Building a DEI-Inclusive Workplace, CHT Promotes Digital Equality on All Fronts
Chau-Young Lin, President of Chunghwa Telecom, indicated that employees are considered as the most valuable asset to the company. CHT is committed to creating a workplace where employees are willing to get married, to have children, and to raise them without worries. The company offers a wider range of welfare that far exceeds legal requirements, such as various leave benefits, marriage and maternity benefits, children education subsidies, childcare centers, etc. Thanks to employee initiatives, the company is in line with the government's vision of creating hope for the youth, enabling dreams for the middle-aged, and ensuring happiness for the elderly. Addressing DEI concept in the workplace, Chunghwa Telecom drives Women’s Power Star Program, hosting seminars on women's professional journeys and parenting, and organizing a series of “the Yes, I Do” events to promote gender equality awareness, striving for a workplace that embraces diversity, equity, and inclusiveness. President Lin stressed that the workplace happiness among all Chunghwa Telecom employees rose from 82.8 points in 2022 to 89.84 points in 2024, indicating that employees are satisfied with the company's welfare initiatives.
Moreover, in response to the government's digital equality initiative, Chunghwa Telecom is promoting inclusive services for diverse groups. This effort includes bolstering network infrastructure in remote areas and bridging the digital gap between urban and rural regions. Chunghwa Telecom also leverages nearly 700 physical stores in Taiwan, collaborating with local communities and NGOs to organize events called “Smart Senior Schools” and “Smart Kids Schools.” These initiatives combine technology and digital resources to help children, the elderly, and disadvantaged groups develop digital skills and knowledge. In addition, Chunghwa Telecom offers special tariff plans for seniors and disadvantaged groups, providing holistic support to diverse populations, embracing the digital era and ensuring digital inclusivity for all.
Enhancing Corporate Governance in Depth and Breadth: Collaboration and Persistence Lead to Multiple Wins
Vincent Chen, CFO of Chunghwa Telecom, stated that the corporate governance is the cornerstone of sustainable development, and the company strives for excellence in corporate governance. Aside from elevating the "Sustainability and Strategy Committee" to become functional committee at the Board level last year, CHT also linked the remuneration of senior executives to ESG performance. This year, the linkage ratio is further increased from 15% to 25%. Meanwhile, the company is the only telecom operator in Taiwan to follow the international best practice of implementing the incentive compensation clawback policy to enhance interest alignment between the top management team and shareholders.
Furthermore, CFO Chen emphasized that transparent information disclosure is a crucial aspect of corporate governance. In response to the international trend towards the disclosure of compensation information, Chunghwa Telecom has, starting this year, disclosed individual directors' remuneration in the annual report. Looking ahead, the company will continue to maintain a consistent policy of transparent, timely, and equal information disclosure, actively and proactively responding to stakeholders' information needs.
Looking ahead, Chunghwa Telecom will continue its path in advancing sustainable governance with the highest standards, refine relevant systems and practices relentlessly, so as to create maximum value for customers, strategic partners, shareholders, and employees alike.
Note:
1.The list of World’s Most Sustainable Companies of 2024: https://time.com/collection/worlds-most-sustainable-companies-2024/
2.The Asia-Pacific region refers to a shorthand for Asia and the Pacific regions, encompassing the Asian countries along the Pacific coast, Oceania, and various islands in the Pacific Ocean.
