Social Aspect

5I SDGs Initiative

Issue Date:2020/08/20

5I SDGs Initiative

Chunghwa Telecom promoted the “5I SDGs” initiative: “I Helping, I Sharing, I Learning, I Programming and I Protecting," as the first real initiative in Taiwan that connects SDGs with the “Digital Country Innovative Economy Development Program” (DIGI+) from the Executive Yuan. Expanding partnerships in collaboration with NPO/NGO, helped us support the sharing of knowledge and technology resources. This enabled us to create a connection between the underprivileged and other diverse groups. Technology allows us to realize a win-win situation for digital human rights and an innovative economy. We will complete the following goals: 
(1) To promote and popularize service establishments and provide accessible and sufficient service support 
(2) Cultivate digital information literacy in all groups 
(3) R&D or purchase information assistance measures for the underprivileged 

Chunghwa Telecom focus our social investment in minimizing the digital divide and creating digital opportunities, given the specific nature and the core competence in the ICT industry. We participate in local community services through corporate volunteers, and proactively assist the communities in creating digital opportunities. We promote all aspects of digital inclusion using 360-degree vision. 

Chunghwa Telecom has developed its core competence to positively minimize the digital divide and devote itself to the creation of digital opportunities. We have chosen to connect with the 2030 Sustainable Development Goals (SDGs) of the United Nations. Through real action, we have demonstrated our determination to develop and implement global sustainability. In 2019, the amount of social investment was 0.37% of the revenue and we set the goal that social investment will reach 1% of revenue by 2025

 


 


 

Group-wide Strategy

As the largest telecom operator in Taiwan, in the face of the rapid changes in the digital era, Chunghwa Telecom launched its 3-year upgrade strategy for transition, “Rise on, Together 2021”, to proactively develop innovative services in 5G, Internet-only bank, IoT, Big Data, AI, and smart home. Aiming to become the “Enabler in the Digital Economy”, the revenues generated from emerging businesses are expected to account for 30% of the total revenue in 3 years. 

The overall corporate strategy of Chunghwa Telecom comes with 5 pillars: 
1. Seizing business opportunities in the digital economy and strengthening the business model of B2B2X. The first “B” refers to Chunghwa Telecom and the second “B” the new service provider, whereas “X” refers to any end user, including the consumers or businesses; through an enhanced R&D collaboration across industries, it improves the gross margins in products and services.
2. Improving customer experience, maintaining leading brand image, and securing core revenues. Convergent integration service is provided to create customer values and consolidate fixed line broadband service.
3. Proactively promoting 5G commercialization and applications, AIoT platform as well as driving emerging businesses and developing products and services of smart living.
4. Strengthening basic capabilities in network, IT, talent, and organization to deposit the corporate’s human capitals.
5. Constructing the ecosystem of open platforms, building the community of digital transition partnership, and improving the management performance of the Corporation via strategic investment and M&A.

Priority 1: universal service infrastructure
Align to SDG 8: Decent Work and Economic Growth

One of the corporate strategies of CHT is to proactively promote 5G commercialization and application, AIoT platform, development of smart living products and services, so as to link highly with the SDG 8 of the UN, which is to facilitate a sustainable and inclusive economic growth and create job opportunities and promote creativity and innovations with industrial development as the core.
At present, CHT has obtained 5G license and is poised to become the first operator to engage 5G commercialization in Taiwan. With technology of 5G, IoT, and Big Data, innovative smart living applications and services shall be developed and promoted. Through universal service, the general public shall enjoy affordable telecom infrastructure and services.
In addition, through development of AI and IoT, we cultivate innovative entrepreneurial opportunities for the youth. Joint hands with partners across disciplines, we actively engage fields of 5G network construction, AI, Big Data as well as smart city and smart caring, developing new forms of digital living applications.

Business Benefit KPI: 
The major benefits of CHT’s commitment to universal service to CHT are:
1. It elevates social image thereof, as the actions of universal service by CHT have been recognized by CSR awards and the government awards.
2. Infrastructure construction brings micro telecom revenues for CHT, including
(1) Revenue from over 230,000 household phone service;
(2) Revenue from the digital communication service to over 110,000 households in rural areas;
(3) Revenue from over 53,000 public phone service in 22 municipalities nationwide; and
(4) Revenue from the access service to over 500 elementary/junior high schools and public libraries.


Social / Environmental Benefit KPI: 
1. In the 747 rural villages/boroughs in Taiwan, the 4G coverage has reach 99%, which allows residents in the rural areas of Taiwan can access quality mobile services.
2. As of the end of 2019, 551 villages/boroughs/tribes in Taiwan have completed upgrade to broadband service from 2Mbps to 12Mbps as the broadband service coverage reached 97.61%, which helps the rural areas in developing a digital economy.
3. A total of NT$172,682,000 subsidy to the telecom fees of the vulnerable groups lessen the expense burden for the vulnerable groups.
4. CHT established 89 good digital neighbor posts across the country to promote art, culture, and digital courses in the local community.

 

Priority 2: proactively promote 5G commercialization and application
Align to SDG 9: Industry, Innovation and Infrastructure
CHT is the largest telecom operator in Taiwan with the highest number of customers in fixed line and mobile communication services. Hence, building sufficient telecom infrastructure and maintain broadband network’s service quality are closely associated with the corporate revenue and image.
One of the corporate transition strategies of CHT is to maintain core revenues, consolidate fixed line broadband, provide converged integrated services, create customer value, and specifically link with the SDG 9. That is, ensuring equal access to economic resources and basic information (right to use) for all men and women, particularly the poor and the vulnerable by 2030.
Therefore, CHT allocates over NT$800 million per year in projects of universal service infrastructure to facilitate construction of networks in the rural areas in Taiwan as actions to provide broadband service to the Internet in order to fulfill the vision of information equality in Taiwan.

Business Benefit KPI: 
The major benefits of CHT’s commitment to universal service to CHT are:
1. It elevates social image thereof, as the actions of universal service by CHT have been recognized by CSR awards and the government awards.
2. Infrastructure construction brings micro telecom revenues for CHT, including
 Revenue from over 230,000 household phone service;
 Revenue from the digital communication service to over 110,000 households in rural areas;
 Revenue from over 53,000 public phone service in 22 municipalities nationwide; and
 Revenue from the access service to over 500 elementary/junior high schools and public libraries.

Social / Environmental Benefit KPI: 
 In the 747 rural villages/boroughs in Taiwan, the 4G coverage has reach 99%, which allows residents in the rural areas of Taiwan can access quality mobile services.
 As of the end of 2019, 551 villages/boroughs/tribes in Taiwan have completed upgrade to broadband service from 2Mbps to 12Mbps as the broadband service coverage reached 97.61%, which helps the rural areas in developing a digital economy.
 A total of NT$172,682,000 subsidy to the telecom fees of the vulnerable groups lessen the expense burden for the vulnerable groups.
 CHT established 89 good digital neighbor posts across the country to promote art, culture, and digital courses in the local community.

Priority 3: promoting whole-supply-chain carbon management
Align to SDG 13: Climate Action
CHT proactively develops in 5G, IoT, Big Data, and AI, endeavoring to improve production efficiency of enterprises in Taiwan, enhance the convenience of people’s lives, and reduce usage of energy and resources with innovative applications and supply chain management and integration, which is highly correlated with the SDG 13, Climate Action, of the UN.
After the adoption of the Paris Agreement, the world is set toward the age of low-carbon economy. CHT joined “CDP Supply Chain Program” in 2018, promoting whole-supply-chain carbon management action. Through carbon management education, mentoring, and inventory, hundreds of suppliers are guided from understanding risks and opportunities in climate change to establishing effective carbon management and mechanism step by step. Driving and connecting suppliers in developing products and services that mitigate climate impacts, we established sustainable, low-carbon ICT supply chains.

Business Benefit KPI: 
 CHT has officially incorporated the performances in CSR and climate issue management into the compensation indicators. With relevant management mechanism and indicators, we formally assess and manage risks of climate change. Also, as the member company in the CDP Supply Chain Program, we promote carbon management actions across the ICT supply chains.
 Through mentoring, we encourage suppliers to disclose carbon information and reduce carbon emission each year. Carbon reduction shall be included in the tender criteria in the future. Only suppliers fit for certain carbon emission and reduction amount can participate in the tender constructions. We consider and evaluate suppliers in terms of sustainability. “Low carbon supply chains” are created via rating, so as to build CHT as a green enterprise while assisting supply chains in their low-carbon transition targets, which helps CHT to seize the business opportunities in the low-carbon and digital economy.

Social / Environmental Benefit KPI: 
 CHT joined “CDP Supply Chain Program” to officially launch its carbon management actions for up to 100 suppliers. The overall carbon emission reduction across CHT supply chains in 2019 is 4.12 million t-CO2e.
 About 100 supplier partners will be brought to certified environmental education venues each year to engage environmental education on carbon management related issues to improve their environmental awareness. As of 2019, a total of 500 supplier partners have received the education, which effectively communicate the eco-friendly sustainable awareness.
 The 406 service centers across Taiwan have made transition 100% to green stores, selling at least 3 kinds of eco-friendly products with energy label certification.

 

Support Government Initiative

CHT has supported the government initiative for the promotion of free wireless Internet services on a nationwide scale. By making a reasonable Wi-Fi rental package available, as well as a robust user authentication platform and a nationwide maintenance/monitoring system, we have helped the government deploy free Wi-Fi hotspots all over the country. Our contributions to social events in 2019 included working with local county and city governments to provide Wi-Fi hotspots and enable Internet access at festive gatherings and international sports events. We installed 15 hotspots for the 2019 Sea of Flowers in Xinshe, 58 hotspots for New Year’s Eve festivity, 116 for the Lantern Festival and about 48 for other activities. The Company participated in 19 festive occasions, built 237 hotspots in total, and spent more than NT$ 2 million. 
Among them, Chunghwa Telecom has been sponsoring the Lantern Festival for more than 20 consecutive years and provided reliable network for tourists from all over the world.

CHT has sponsored the Lantern of the Festival every year since 1999. In addition to expanding the network equipment for the Lantern Festival area and monitoring by our engineering specialists, we ensure that mobile calls and Internet access are smooth and fast with such a large crowd. We arranged for services at all the different festival locations and the network equipment was monitored by our engineers throughout the event. We also work with the Tourism Bureau by leveraging technologies to raise traveler satisfaction, including tracking cellular signaling data and traffic flow information to resolve traffic and overcrowding issues at major events such as the Lantern Festival. To promote national festivals and events, we aim to install high-quality hotspots for more than 10 million visitors every year till 2022.