Social Aspect

5I SDGs Initiative

Issue Date:2021/06/22

5I SDGs Initiative

Chunghwa Telecom promoted the “5I SDGs” initiative: “I Helping, I Sharing, I Learning, I Technology and I Protecting," as the first real initiative in Taiwan that connects Sustainable Development Goals (SDGs) with the Digital Country Innovative Economy Development Program (DIGI+) from the Executive Yuan. The goals of the 5I SDGs are:
1. Embrace the world from Taiwan, officially responding and implementing the UN SDGs
2. Respond to the objectives of the DIGI+ of the Executive Yuan, widening the scope of digital inclusion and ensuring Information Equality in the networked digital era
3. Leverage the core functions, connect expertise across branches and corporate volunteer resources, and work with professional communities to deepen the impacts of socially inclusive actions.

Chunghwa Telecom focuses its social investment in minimizing the digital divide and the creating of digital opportunities, given the specific nature and the core competence of information and communication in the ICT industry. We also spare no effort in the advocacy of corporate volunteers to participate in local community services, and proactively assist the communities in creating digital opportunities. We promote all aspects of digital inclusion using 360-degree vision.

Group-wide Strategy

As the largest integrated telecom operator in Taiwan, Chunghwa Telecom has been the leader in the markets of mobile, broadband, and MOD service for years. Aiming to become the “Enabler in the Digital Economy”, it proactively develops in the areas of 5G, IoT, big data, and artificial intelligence (AI). Also, with the UN SDGs at the core, it ambitiously develops innovative services like sustainable smart city. 
We initiated “5I SDGs” in Taiwan, including “I Helping, I Sharing, I Learning, I Technology and I Protecting”, which makes it the first initiative in Taiwan that substantially connects an enterprise’s core competencies with the UN SDGs, fulfilling the “sustainable development for business management”. The overall corporate strategy of CHT come with six directions as follows:
    1. Secure the Core: Promote extensively the 5G services to drive mobile service revenue while develop convergent integrated services, promote the overall upgrade of fixed line broadband service, and create customer values.
    2. Seize Corporate Clients: Target key industries and key accounts, seize opportunities of digital economy, and drive smart innovation for industries.
    3. Drive Emerging Businesses: Promote proactively the 5G commercialization and applications and the AIoT platform; drive the emerging businesses; and develop smart living products and services.
    4. Transform the Corporate Constitution: Enhance the core competencies like network, IT, talent, and organization while accumulate the operational capital for the enterprise.
    5. Form Alliances: Construct an open platform ecosystem, build circles of partners for digital transformation, and strengthen the enterprise management performance via strategic investment and M&A.
    6. Foster Sustainability: Link up stakeholders across sectors in combination with the enterprise’s core competencies while create and share sustainable values via innovative digital technology.

Priority 1: universal service infrastructure
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:
        (1) Revenue from over 220,000 household phone service;
        (2) Revenue from the digital communication service to over 120,000 households in rural areas;
        (3) Revenue from over 36,000 public phone service in 22 municipalities nationwide
        (4) Revenue from the access service to over 600 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 97.58%, which allows residents in the rural areas of Taiwan can access quality mobile services.
    2. As of the end of 2020, 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 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: 
    1. With advanced technology and service platforms of CHT’s own device and connections with top-notch teams at home and abroad, CHT incubated at least 200 startup teams in AI and IoT.
    2. The CHT AI team shall expand to 500 strong by 2023.
    3. The AI-related businesses shall contribute revenues up to NT$3 billion to CHT by 2023.
    4. Maintaining the leadership in the IoT industry in Taiwan, our IoT products and services contribute revenues over NT$8 billion.

Social / Environmental Benefit KPI: 
    1. Taiwan now further faces 4 talent crises, i.e. outflow of professionals, outflow of advanced talents and inflow of basic talents, decrease in working population, and talent deficit. CHT proactively promotes 5G commercialization and AIoT, which shall create at least 3,000 jobs and drive 5G industrial chain development up to NT$50 billion’s worth.
    2. The open “IoT smart platform” developed by CHT incubated at least 50 top innovative AI start-ups for Taiwan through competition and training, while CHT dove into 5G application development for creating social and environmental products and services.
    3. The CHT smart agricultural service allows farmers to tap into information of soil, water quality, and climate of the fields via IoT and AI smart agriculture model. Based on results of Big Data and AI analysis, farming practices like fertilization and pesticide spreading are improved along with a reduction in labor, pesticides, and other resources while keeping a stable yield and quality.

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: 
    1. 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.
    2. 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: 
    1. CHT joined “CDP Supply Chain Program” to officially launch its carbon management actions for up to 150 suppliers. The overall carbon emission reduction across CHT supply chains in 2020 is 6.96 million t-CO2e.
    2. 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 2020, a total of nearly 600 supplier partners have received the education, which effectively communicate the eco-friendly sustainable awareness.
    3. 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 nationally. Through 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 nationwide. 
Our contributions to social events in 2020 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 81 hotspots for New Year’s Eve festivity, 19 for the Lantern Festival and about 31 for other activities. The Company participated in 20 festive occasions, built 131 hotspots in total, and spent more than NT$ 1.02 million.