TAIPEI, June 9, 2024, Chunghwa Telecom Co., Ltd. (TAIEX: 2412, NYSE: CHT) ("Chunghwa" or "the Company") today announced that the company has been upgraded to the highest ‘AAA’ rating in MSCI’s latest ESG Ratings report, making it one of the top-performing companies in the global telecommunications industry. According to the report, Chunghwa is not only the sole telecom company in Taiwan to receive an AAA rating, but also one of just four telecom operators in Asia to achieve this distinction—underscoring the company’s internationally recognized excellence in sustainability governance.
The upgrade was primarily driven by significant improvements in corporate governance, including enhanced disclosure of board compensation and the adoption of a Clawback policy for incentive-based pay, reinforcing transparency and accountability in corporate management. In addition, the Chunghwa demonstrates exceptional performance in privacy and data security, far surpassing industry standards. MSCI highlighted the Company’s comprehensive information security policy encompassing all subsidiaries and business operations, its organization-wide ISO 27001 certification, and its robust data access controls and de-identification techniques, demonstrating a strong commitment to protecting user privacy. On the environmental front, Chunghwa maintained a perfect score in carbon emissions management, reflecting its continued efforts to reduce emissions and uphold transparent disclosure practices. In labor management, Chunghwa conducts an annual “Happiness at Work Survey” to gather employee feedback on workplace environment, benefits, and engagement, an initiative recognized by MSCI as a best practice.
MSCI is one of the world’s leading ESG rating agencies. Its ESG research team evaluates companies based their performance across key environmental, social and governance (ESG) factors, including climate change, natural capital, human capital, product liability, corporate governance, corporate behavior and others—using 35 specific indicators. MSCI tailors the relevance and weighting of these issues according to industry characteristics and assigns rating on a scale from AAA (leader) to CCC (laggard). These assessments serve as a critical reference for both domestic and international investors in their decision-making process.
Mr. Chih-Cheng Chien, Chairman of Chunghwa Telecom, stated, “Being upgraded to AAA is a strong international endorsement of our long-standing commitment to sustainable governance. It also reflects the dedication and perseverance of our entire team. Looking ahead, Chunghwa will continue to advance our core pillars—Going Green & Decarbonization, Digitization & Empowerment, and Integrity & Transparency—to create long-term sustainable value for our shareholders, employees, and society. We view this recognition not as a conclusion but as motivation to aim even higher. With humility and a spirit of continuous improvement, we remain committed to raising our ESG standards and contributing to a more sustainable future for generations to come.”
