Editorial Policy

Welcome to Chunghwa Telecom's 16th Environmental, Social, Governance (ESG) Report.
This Report discloses Chunghwa Telecom's efforts and results in practicing corporate
sustainability in 2022, so that stakeholders that care for us may better understand andtrust in the results of our commitment in corporate sustainability management. This
report is published in both Chinese and English on a dedicated ESG website.

* https://www.cht.com.tw/en/home/cht/esg/esg-report/sustainability-esg-report

Reporting Period and Scope

This report discloses the Company's ESG management policies, material issues, countermeasures, initiatives and results between
January 1 and December 31, 2022. The scope of Report encompasses 100% the operating sites of Chunghwa Telecom parent
company only financial statements, while sections with different scope of disclosure shall be noted. However, to ensure complete
coverage, parts of the report include descriptions of initiatives and results from 2021 to 2023.
The frequency of this report is issued once a year. The last issue date: June 30, 2022; the next issue date: June 30, 2024.

References

Issuing Organization

Item

The Global Reporting Initiative, GRI

GRI Standards

The International Integrated Reporting Council, IIRC

International <IR> Framework

Telecommunication Services Sustainability AccountingStandard, SASB

Sustainability Accounting Standards Board, SASB
Taiwan Stock Exchange Corporation Rules Governing the

Preparation and Filing of Sustainability Reports by TWSE
Listed Companies

How to Read the Report

S

Strategy

Develop strategies
and commitments

M

Management
Management
mindsets andmechanisms

A

ActionImportant projects
and actions．Telecommunication Industry．Climate related information of listed listed companies

R

Response

Stakeholder
requests andresponses

T

TargetFuture outlook,targets
and plans

Assurance

I

Indicator

The GRI, SASB,
and Chunghwa
Telecom's own
Indicators

Content and data of this report have been reviewed and assured by SGS Taiwan Ltd. based on the GRI Standards(2021) and AA1000
AS (2018) Type 2 High Assurance Standards and requirements of the Integrated Reporting Framework and Telecommunication
Services Sustainability Accounting Standard, SASB.

Feedback

If you have any feedback to share, please do not hesitate to contact us through:

GRI

Vivian Lin, Corporate Communications Department, Chunghwa Telecom,
Address: 21-3, Sec. 1, Xinyi Rd., Zhongzheng Dist., Taipei City, Taiwan

182

Telephone: +886-2-2344-2780

Email: chtcsr@cht.com.tw

GRI
SASB
CHT

GRI Standards

SASB Accounting Metrics

Chunghwa Telecom's Indicator

Unless otherwise specified, all currency
units used in this report's financial data areby default New Taiwan Dollars (NT$).

1

CON TE N TS
EDITORIAL POLICY
01

Chapter

Chapter

Chapter

CORPORATE OVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

SIX MAIN CAPITALS CREATESUSTAINABILITY VALUE
34

PROCESS FOR
DETERMINING MATERIAL TOPICS
40

1

2

3

MESSAGE FROM THE CHAIRMAN
042022 ESG MILESTONES
06

ESG STORY
08

BUSINESS CONTINUITY COVID-19 PREVENTION MEASURES
08

Chunghwa Telecom Digital Empowerment
Helps Carbon Reduction in Taiwan
10Chapter

4

CORPORATE GOVERNANCE
18
ESG MANAGEMENT
28

Chapter

5

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATION OF
SUSTAINABLE VALUEEMERGING RISKS
55

THE DIGITAL ECONOMY MOTIVATOR
72

CLIMATE CHANGE RISKSAND OPPORTUNITIES58

THE HAPPINESS VALUE PROTECTOR
82

52

EMERGING OPPORTUNITIES56

CYBERSECURITY RISKS
65

2

12

68

32

FIVE MAJOR FORCES DRIVE
THE SUSTAINABLE CYCLE
34

CREATING SUSTAINABLE VALUE
36

Chapter6

THE CREATIVE INDUSTRY PILOT
78

PUBLIC POLICYPARTICIPATIONTHE GREEN CORPORATION PIONEER116

SUPPORTING CULTURAL
DEVELOPMENT
159

THE SOCIAL VALUE GUIDE
136

156

38

2022 MATERIAL TOPICS AND IMPACTS
42
STAKERHOLDERS ENGAGEMENT
48

INDEX:GRI 2-9 GOVERNANCE STRUCTURE
AND COMPOSITION160
GRI Standard Index
162
Sustainability Accounting Standards Board
Disclosure
165
Taiwan Stock Exchange Corporation Rules
Governing the Preparation and Filing of
Sustainability Reports by TWSE Listed Companies
166

DISCLOSURE OF CLIMATE-RELATEDINFORMATION FOR
TWSE/TPEX-LISTED COMPANIES167

ASSURANCE STATEMENT
168

3

Message from the Chairman
Facing the challenges brought by global climate change and the
COVID-19 epidemic in the past three years, Chunghwa Telecom
upheld the spirit of "Always Ahead" and the business strategy ofadvancement on 3 fronts, Transformation × 5G x Sustainability,
to ceaselessly create value for investors and the social economy
leveraging the advantages in innovative information andcommunication technology (ICT). Its financial and operational
performances were steady in 2022. Chunghwa Telecom saw
continuous growth in the core businesses such as mobile
services, ICT services, and broadband services and maintained its
leadership in the market. On the path of sustainable development,
its performance remained strong. With specific ESG indicators,
Chunghwa Telecom is actively marching towards the vision of "green
low-carbon, digital empowerment, integrity and transparency,"
demonstrating the resilience of the Company to the fullest.

We aligned ourselves with the UN Sustainable Development Goals(SDGs). With our core strength in ICT as the point of departure, we
connected topics of low-carbon environment, social development,
and corporate governance, comprehensively practicing thecorporate mission of "Digital Economy Motivator and Creative
Industry Pilot." Through setting various ESG performance indicators
and active implementation of action plans, we continued to exert
our corporate influence for sustainable development.
In the face of the global environmental degradation issue, wecreated a green and low-carbon environment, implementing theinternal carbon pricing mechanism ahead of our peers. Also, we
submitted our carbon reduction commitment to the SBTi, setting
the target of a 50% carbon reduction by 2030 compared with 2020
levels for an active promotion of low-carbon operations.

In terms of energy efficiency improvement, various energy resourceswere managed through the innovative Environment ARtificer
Theurgy (EARTH) system, and the energy-conservation management
for ICT data centers (including the IDCs) was performed via the selfdeveloped Intelligent Environment Network Service (iEN) and thePower Operation Supervisory System (POSS) for IDCs. Meanwhile,
we introduced low-energy-consuming equipment; consolidated,
integrated, and replaced telecom equipment; optimized mobile
network architecture; and turned off low-efficiency 3G cells andbase stations to achieve smart power conservation.
In addition, we actively promoted paperless receipt services,
replaced aged power and air-conditioning equipment, implemented
energy-saving control strategies for air-conditioning, and replaced
the lights in the public areas of our office buildings with LED lights.
Furthermore, we built rainwater, groundwater, and air-conditioning
condensate recovery systems so as to achieve reuse of water
resources for a true and precise energy conservation and carbon
reduction.
Regarding the use of renewable energy, we undertook the selfbuilt solar power project sites and green base stations. Also, we
scale up the procurement of renewable energy year by year andobtain renewable energy certificates (RECs). Meanwhile, we are thefirst telecom operator in Taiwan to obtain the "BS 8001 Conformity
Statement" and have passed the "conformity check for the TCFD
Recommendations on climate-related financial disclosure" at thehighest level.

In addition, to guide the partners on the industrial value chain andseize the low-carbon business opportunities, Chunghwa Telecom
is also the first telecom operator in Taiwan to join the "Carbon
Disclosure Project (CDP)." With the strategy of the extensive alliancefor sustainability and the Sustainability Partner Rating System
combined, we unceasingly promote a green, low-carbon supply
chain. In 2022, we joined hands with 35 significant suppliers tolaunch the net-zero initiative of "Hand in Hand with Partners for

4

Carbon Reduction Together" to collectively contribute to sustainabletransformation.

In order to promote social inclusion, together with the Chunghwa
Telecom Foundation (CHTF) , we have been assisting and caring forrural and diverse groups. For over a decade, aside from the ongoing
execution of "Read with You Community Network Tutoring" and"EYE Social Innovation Call Center," upon seeing the social andeconomic difficulties during the post-epidemic recovery in 2022,
we doubled our investment of resources to innovate and promote
the Tech4Good digital empowerment ecosystem. By offeringhigh-quality and high-speed ICT services, we endeavor to bridge
the digital divide, create digital opportunities, and practice digitalequality.

Meanwhile, we continued to actively implement the "5I SDGs" (I Love
SDGs) initiative, which we first proposed in 2018. It not only helped
children in rural areas to continue to absorb education resources tofight for life-changing opportunities, but also promoted emergency
medical care services through 5G private networks so as to take careof the people in rural areas. Furthermore, the initiative supported
the small and medium-sized enterprises (SMEs) and businesses inaccessing digital technology to mitigate the economic impacts of thepandemic. In the meantime, it also strengthened the environmental
awareness of all and promoted the diversified "5G Plastic Free"sustainable campaign, including corporate environmental volunteer
training, innovative offering of eco-friendly NFTs, application of 5G
unmanned vessels to remove marine debris, an extensive invitation
to sub-groups and supplier partners to respond to beach/mountaincleanup, and so on. Hence, we comprehensively practiced thecorporate mission of becoming a "Leader in Smart Living" and"Agent of Digital Economy Empowerment."

With regard to the topic of corporate governance, we issued
NT$3.5 billion worth of sustainability bond in 2022, which is not
only the first sustainability bond issued by the domestic telecom
operator, but also makes us one of the few sustainability bondissuers from the telecommunications industry in the world. The
fund shall cover investments in both environmental protection
and social development. Also, through independent research anddevelopment, extensive alliances, or investments, we are ceaselessly
developing emerging businesses in cybersecurity, cloud services,
artificial intelligence, big data, and blockchain. With our stellar 5G
technology and service quality as well as active risk management
and a sound operating system, we seize pioneering opportunities,
leading the industries in Taiwan into a new era of digital economy topractice the notion of sustainable business development.

7
8

9

10
11
12

Top 5% in the Corporate Governance Evaluation for 8
times
A constituent of the FTSE4Good TIP Taiwan ESG Index"First Place, Overall Performance: Telecommunications
Industry" and "First Place, Elderly-Friendly Group,"
Annual Corporate Social Responsibility & ESG Award by
Global Views Monthly
Taiwan Corporate Sustainability Awards (TCSA) – Top
Ten Domestic Corporates and 7 Performance Awards
Global Corporate Sustainability Awards (GCSA) – Sustainability Reporting Award: Silver Class, 1 Outstanding Practice Award, and 2 Great Practice Awards

Taiwan Sustainability Action Awards, (TSAA) – 3 Gold
Awards, 2 Silver Awards, and 2 Bronze Awards

We have been upholding the core value and missiona s a p i o n e e r i n t h e te l e co m m u n i cat i o n s i n d u st r y.
With the philosophy of excellence and innovation, we
unceasingly utilize our core expertise, technologies,
resources, competencies, and features to help resolve
social issues and lead the industrial value chain towards
digital transformation. "Chunghwa Telecom is more thanjust a telecom carrier." Committed to being a customercentric, sustainable, and low-carbon ICT enterprise, weshall work together with Taiwan for the prospect of a netzero future and create more virtuous circles. Meanwhile,
we look forward to the continuous support andencouragement from various sectors to Chunghwa
Telecom.

Shui-Yi Kuo
Chairman and Chief Executive Officer
Chunghwa Telecom Co., Ltd.

Thanks to the incessant efforts of the Company in ESG, we wererecognized by the majority of stakeholders in 2022, including:

1

2
3
4
5
6

Recognitions by the Dow Jones Sustainability Index (DJSI), included in the DJSI World Index as the No. 3 of all the assessed
telecom operators in the world and in the DJSI Emerging Markets Index for 11 years in a row
MSCI ESG Ratings "A" (upgraded to "AA" as of May 2023)

No. 4 in the surveyed telecom companies in the world and No.
1 in the surveyed companies from Taiwan in the World's Top
Female-Friendly Companies 2022, Forbes
Jade Award in The Asset ESG Corporate Awards

Taiwan Telecommunication Services Company of The Year& the first Taiwan 5G Services Customer Value LeadershipAward, Frost & Sullivan
National Sustainable Development Awards, Executive Yuan

5

1
Jan

2022 ESG Milestones

10
OCT• Only Outstanding Entity, National CIP Designated Exercise for Critical Infrastructure Protection from the
Executive Yuan
• Taiwan's Arts & Business Award – Golden from the
Ministry of Culture

2
FEB• The Sustainability Yearbook
Rankings – Bronze Class from
S&P Global

6

JUN• Double Platinum Awards in
Reader's Digest Trusted Brand• MSCI ESG rating to A

4

• Awarded Top 5% of the Corporate
Governance Evaluation from the
Taiwan Stock Exchange Corporation

5

MAY• Double First Prize in the 18th Annual Corporate Social Responsibility & ESG Award – Overall
Performance and Outstanding
Program: Elderly-Friendly Groupby Global Views Monthly

9
SEP• Digital Transformation Revolution
Award - Overall Digital Transformation Award (Service Industry
Vanguard Award), First Prize from
Harvard Business Review.
• No. 13 in the Large Enterprises,
Excellence in Corporate Social
Responsibility Award from Common-Wealth Magazine

APR

7
JUL

• "Fastest 5G" and "Fastest Mobile
Network" in Taiwan during Q1Q2 2022 and the "Fastest 5 Years
in a Row Award" in Taiwan of
Speedtest Awards 2022

8

AUG

• 3 Golden, 2 Silver and 2 Bronze Awards in
Taiwan Sustainability Action Award from
Taiwan Institute for Sustainable Energy• 2022 Taiwan Telecommunication Services Company of The Year and 2022 Taiwan
5G Services Customer Value LeadershipAward from Frost & Sullivan

6• Special Award for Digital Resiliency in Taiwan – Future Enterprise Awards from IDC• The investment drama," Tavern by the Lethe", won The Creative Award from Golden Bell Awards• The "Taipei Fintech Investor Award" for excellence from Taiwan Financial Services
Roundtable and Taiwan Academy of Banking and Finance• "Fastest 5G" and "Fastest Mobile Network" in Taiwan
during Q3-Q4 2021 of Speedtest Awards 2021

• The National Brand Yushan Award (the only ICT service company to receive the award) from EnterpriseCompetitiveness Development Association• Best Products – Yushan Award of The National Brand Yushan Award from Enterprise Competitiveness Development Association• Microsoft Taiwan "Top CSP Direct Partner"

11• One of the FTSE4Good TIP Taiwan ESG Index ConstituentsNOV• "Sports Enterprise Certification" and "Highest Honor inSports Promotion Award" from Sports Administration,
Ministry of Education• "Happiness Enterprise - Technology Research and Development" Gold Award from 1111 Job Bank• "Service Innovation Award" in the Evaluation of 5G
Smart Transportation Subsidy Program from the Ministry of Transportation and Communications• 4th Global Best Practice of IOT and Smart Service Golden Dragon Award from Taiwan Internet Of Things Alliance (TIOTA)• 13 awards including "Taiwan Corporate SustainabilityAward (TCSA) " and "Global Corporate SustainabilityAwards (GCSA) " from Taiwan Institute for Sustainable
Energy• S&P Global Ratings "AA" long-term issuer credit ratings, top of the global telecom services; Taiwan Ratings"twAAA" long-term issuer credit ratings

12DEC• Best Customer Service Innovation System Application Enterprise and Best Customer Service Provider Award from Taiwan Contact Center Development Association• Recipient of the "Special Excellence Award" in the Critical Infrastructure Protection
Exercise organized by the Executive Yuan for three times• Included in the Dow Jones Sustainability Indices (DJSI) in both the World Index andEmerging Markets Index• "National Sustainable Development Award" from the Executive Yuan
• The World's Top Female-Friendly Companies by Forbes.

• The application of 5G Smart Harbor received 2022 Asia Communication Awards
from Total Telecom• "Excellent Marketing Enterprise Support for Domestic Agricultural Products" fromthe Agriculture and Food Agency, Council of Agriculture, Executive Yuan

• Four first-place rankings during Q1-Q2 2022 from Opensignal, the only company in
Taiwan to be awarded by two international authoritative institutions for being thefastest in 5G network speed• "ESG Corporate Award - Jade Award" from The Asset magazine

7

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATIONESG Story

Business Continuity - COVID-19 Prevention Measures

As COVID-19 rampaged on worldwide in 2022, either enterprises or individuals had suffered severe impact. As COVID-19 rampaged
on worldwide in 2021, either enterprises or individuals had suffered severe impact. As a local leading enterprise, we "deployedpreemptively" and "improved on a rolling basis" comprehensively. Internally, the national team of epidemic prevention of CHT,
according to CHT Preparedness and Contingency Plan in Response to COVID-19, supported vulnerable groups, ensured theoperation of critical infrastructure networks, information computer rooms, and important information systems, and ensured
the health protection of employees; externally, improved customer service quality. We also actively supported the government's
various epidemic prevention work and measures and implemented the overall epidemic prevention solution to jointly protect
the health of the people.

Chunghwa Telecom Epidemic Prevention Highlight Measures:

+

24/7

1. Set up the epidemic prevention command
center in accordance with the CHT Preparedness
and Contingency Plan in Response to COVID-19,
establish an Business Continuity Plans, andconduct continuous exercises.

3. We Self-developed "Epidemic Monitor andManagement System" to promote various
technological epidemic prevention measures:

2. We provided the free customer service hotline
24/7, developed multiple online service andself-help channels. Customers could conductbusiness at home without worries.

• Offsite working/Work from Home: Epidemic
prevention plans with cybersecurity at thecore were offered for enterprises with needsof offsite working; broadband Internet
environment of "triple networks" with fixedline, mobile network, and Wi-Fi services.

• Paperless night market transaction: Integrating
multi-mobility and scanning code payment,
cashless transaction services were introduced
for contact-free payment for local shops,
SMEs, microenterprises, and night market
vendors.

• Prepaid cards were provided to the Ministry of
Education for the disadvantaged students in
the rural areas.

8

4. Discounts for telecom service fees: The
telecom rates of the businesses and schools
impacted by the epidemic were loweredmoderately to reduce the burdens thereto,while Prepaid SIM Cards were provided toespecially economically-disadvantaged
students, free of charge.

ID

5. ICT epidemic prevention (SMS Real Name
Registration System): The SMS Real Name
Registration System was established for the
MOHW to significantly reduce difficulties
in the outbreak investigation. (completed
phased tasks and exited in April)

1922

6. Support to Taiwan CDC Toll-free Hotline
1922: The total number of Taiwan
CDC toll-free hotline 1922 is up to 7.53
million in 2022 with an average answer
rate of 68.3%.(Excluding the April-May
period, when the Central Epidemic
Command Center launched the SelfRe p o r t i n g s y ste m s fo r co n f i r m e dcases, a large number of people camein to inquire about the resettlementof confirmed cases, with an average
response rate of 85%.)• 352,432 calls to the NIA's Foreigners
In Taiwan Hotline with an averageanswer rate of 79.06%.
• 22,311 calls to the customer service
hotline of the SMS Real Name
Registration System with an averageanswer rate of 90.36%. (exited since
4/28)

9

SUSTAINABILITY VALUESTRATEGYCORPORATEOVERVIEW

MATERIAL TOPICS
AND IMPACTS

Chunghwa Telecom Digital Empowerment
Helps Carbon Reduction in Taiwan

The disasters arising from climate change due to global warming are issues the modern society has to face. The overarching goalof the Paris Agreement in 2015 is to hold the increase in the global average temperature to well below 2°C and pursue efforts tolimit the temperature increase to 1.5°C above pre-industrial levels by the end of this century. To attain this goal, in line with the
Science Based Targets initiative (SBTi), companies ought to account for all Scope (1 to 3) of "greenhouse gas emissions" and set
the short-term reduction target by 2030, aiming for achieving net-zero emissions by 2050. According to the research by Morgan
Stanley Capital International (MSCI), the information technology sector accounted for up to 88% of the average Scope 3 emissions(upstream and downstream sources), of which "Purchased Goods and Services" accounted for 52%. How to reduce carbon
emissions from the supply chain has become a challenging topic for companies to achieve the goal of Net Zero.
With the applications of digital empowerment composed of 5G, AI, big data, cloud computing, sensors, and high-speed chips,
Chunghwa Telecom optimizes energy use efficiency, reduces carbon emissions in various industries, and achieves the objectiveof "more online and less on-road." Analyzed and verified via the model of Industry, Science and Technology International Strategy

SUSTAINABILITY RISKSAND OPPORTUNITIESThe telecom industry of highly digitalized countries 1 have brought forth digitally empowered carbon reduction benefitsof 729.5 million metric tons of CO2e. The digitally empowered carbon reduction benefits in Taiwan were 29.5 million
metric tons of CO2e. Based on the market share of Chunghwa Telecom, it helped Taiwan reduce carbon by 12.36 million
metric tons of CO2e in 2021, which is equivalent to the carbon emissions of Taipei City for a whole year reduced 2.
1. 14 countries, including the United States, Hong Kong, Sweden, Denmark, Singapore, Switzerland, the Netherlands, Taiwan,
Norway, the United Arab Emirates, Finland, South Korea, Canada, and the United Kingdom.
2. The GHG emissions of Taipei City were 11.14 million metric tons of CO2e in 2021.

TaiwanUnit: Million metric tons of CO2e

Carbon reduction

33,200.0

Carbon reduction 729.5

Carbon reduction

2.2%

Scenario 1
Without digital empowerment across multiple countries(Higher Internet Usage Leads to Increased Carbon Emissions)
Scenario 2
Current situation(Including digital empowerment benefits in 14 countries)

PUBLIC POLICYPARTICIPATION

Center, Industrial Technology Research Institute (ITRI), the services provided by Chunghwa Telecom per 1 kilowatt-hour(kWh) of electricity reduce 5.64 kWh of electricity for the industries in Taiwan.

Global
33,929.5

THE CREATIONOF SUSTAINABLE VALUE

10.3%

Scenario 1
Without digital empowerment in Taiwan(Higher Internet Usage Leads to Increased Carbon Emissions)

285.5
256.0

Carbon reduction 29.5

big data

Scenario 2
Current situation(Including digital empowerment benefits in Taiwan)

5G

cloud
computingsensorsAI10high-speed chips

11

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

1 CORPORATE OVERVIEWSUSTAINABILITY RISKSAND OPPORTUNITIESCORPORATE GOVERNANCE
ESG MANAGEMENT

C

hunghwa Telecom (TAIEX:2412, NYSE: CHT) is the largest integrated telecom carrier, with morethan 691 locations in 22 counties and cities in Taiwan. Our major business includes domestic
fixed network (local network, long haul Internet, broadband access), international fixed network(international network), mobile communication (mobile network), and data communication (HiNet
broadband Internet) We also provide corporate customers with information and communication
services, including big data, information security, cloud and Internet Data Center. We also offer
innovative technology services, such as the IoT (Internet of Things) and AI (Artificial Intelligence),
to create an outstanding communication environment and extraordinarily convenient digital life.
We also have important business partnerships with other international telecom carriers.

18
28

Main businesses of branch
offices and reinvestmentcompanies: Please refer
to p.111-113 in the 2022
Annual Report.

Chunghwa Telecom upholds the service philosophy of "bridge the digital divide, implement
environmental sustainability, and care for the disadvantaged". Hence, the core technologies,
resources, competencies, and features of the Company have been leveraged to implement thebrand spirit of "Always Ahead" on the three fronts of Environmental, Social, and Governance. We
demonstrate our determination in sustainable operation with our actions to fulfill our corporatesocial responsibility on all fronts. In recent years, our active efforts in ESG were constantly
recognized by professional institutes at home and abroad.

The SDGs CHT contributes toin this chapter:

Annual review of the Company's budget planning for carbon management

Operational strategy "Sustainability+5G+Transformation": Core Business

Sustainability issues addressed by Chunghwa Telecom: creation of social

The only telecom operator to have a labor director elected.

strategies; execution of action plans; setting performance targets.

inclusion, digital inclusion, green ICT products & services, green
brand management, and energy-saving & carbon reduction.

To link sustainability performance with the remuneration of theBoard Directors, Chunghwa Telecom implemented a soft incorporationof sustainable development strategies and targets into its review of

12

PUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

compensation.

Maintenance, Driving Emerging Businesses, Customer Orientation, Forming
Alliances, Group Cooperation.

Consolidated net income: NT$ 216,700,000,000; Earnings per share:
NT$ 4.70.

Chunghwa Telecom established a Sustainable Development Committee
for stipulation of various sustainability policies through its ESG groups.

13

SUSTAINABILITY VALUESTRATEGYCORPORATEOVERVIEW

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY RISKSAND OPPORTUNITIESPUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

Chunghwa Telecom Organization Chart

We Strive toShareholders' Meeting
Board of Directors
Chairman & CEO
President
SEVP

Compensation
Committee

Audit
Committee

Corporate Planning Department

Corporate
Strategy
Committee

Audit

Secretariat
of BoD

Create a gateway toan enjoyable
digital life for people

Enhancethe operational efficiency
of corporations

Investment Department

Business
Management
Department

Data
Development
Department

Cyber
Security
Department

Legal
Affairs
Department

Occupational
Safety & Health
Department

SupplyDepartment

Administration andAsset Development
Department

Finance
Department

Accounting
Department

Corporate Communications
Department

Branches

Telecommunication Training Institute

Organization andTalent Development
Department

Household market• Mobile communication service• Wi-Fi service• International fixed network service• Integrated service• Data security service• Mobile service• Data service• International service• Diversified integrated
payment service

Mobile Customer amountphone Annual growth12.621 million+5.9 %

Customer amount
Broadband customers

3.75 million
85.5 %

3 0 0 Customer amount
Mbps Annual growth

969 thousand+51.9 %

Customer amountMarket share

3.664 million
No.1

Network Technology Group

Chunghwa Telecom implemented the "customer-centric" organizational transformation. On January 1, 2022, the Consumer
Business Group was established as one of the three major customer-centric business groups together with the Enterprise BusinessGroup and the International Business Group. Meanwhile, the Network Technology Group was established to integrate mobile
network and fixed line businesses. Also, the Data Communication Business Group was renamed as the Information Technology
Group on April 30, 2022. Together with the Telecommunication Laboratories, the three technical groups are formed to support thebusiness promotion of three business groups. Hence, we may secure the greatest advantage through the organizational resource
integration and overall business synergy to elevate the corporate competitiveness for the prospect of yet another brilliant
business performance.

Corporate market

Product and Services

International Business Group

Telecommunication Laboratories

Personal market• Domestic fixed network service• Domestic leased line service• Internet and value-added service• MOD (IPTV) service• International fixed network service

Enterprise Business Group

Information Technology Group

Allow investors toenjoy the business profit
from a satisfied customer baseBusiness Model

Consumer Business Group

14

Facilitate industry scale toexpand in a good way
with our contribution

Share of Revenue by Product

Mobile communication

International fixed network

12.621 million households 36.6%

100.9 million minutes

Customer amountInternet

Customer amount

3.664 million households
Market share
55.9%

Market share

Communication amountMarket share
44.4%

Domestic fixed network
Local network

Customer amount/
Communication amount

9.399 million households

Long haul Internet 1,356 million minutes
Broadband access 4.386 million households
MOD
2.05 million households

Market share
91.4%
81.9%
59.4%
30.6%

15

CORPORATEOVERVIEW

Corporate Governance 18

SUSTAINABILITY VALUESTRATEGY

ESG Management 24

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATION

Industry Value Chain and Critical Sustainability Performance

The value chain of the telecom industry is an interdependent and interlocking ecosystem. Construction of infrastructure offers aquality fundamental security; communication services provide basic communication functions; and value-added services supply
more diverse and innovative application services. The above-mentioned upstream and downstream elements jointly constitute thevalue chain of the telecom industry. The wave of digital convergence makes content providers and integrators, application service
providers, network equipment suppliers and terminal equipment suppliers the important value partners to a telecom carrier in thedevelopment of digital convergence services.
The main business activity of Chunghwa Telecom is to provide general information and communication services. Hence, the ICT
equipment procurement makes the majority of its procurement. The procurement in 2022 could fall into categories of property (50%),
construction (16%), services (13%), projects and tenders (14%), and repair (2%). The number of Tier-1 Suppliers were 1,915, andthe contract amount of the suppliers exceeded NT$70 billion. Moving forward, Chunghwa Telecom shall continue to better itself inservices of fixed network, mobile, data, and eICT while strengthening the partnership with its suppliers throughout the supply chain
to form a closer industrial ecosphere to introduce more quality services.

SystemIntegration
Service Provider

Software/Data Security
Service Provider

Network
Equipment
Suppliers

Content
Providers/Integration
Service Providers

Application
Service
ProvidersTerminal
Equipment
Suppliers

Users

ChannelMarketers

16

17

CORPORATEOVERVIEW

Corporate Governance 18

SUSTAINABILITY VALUESTRATEGY

ESG Management 28

MATERIAL TOPICS
AND IMPACTS

Corporate Governance

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATION

Board Diversity Policy

Chunghwa Telecom implements diversity on the Boardof Directors and recruits talents primarily based on skill
sets. Selection of directors is not limited to any particulargender, age, nationality, culture or ethnicity. Directors
are expected to have outstanding quality, industry
experience and expertise to complement the Board.

Linking Compensation to
Sustainability Performance

Chunghwa Telecom Board of Directors is the highest governing body. The Board of Directors is responsible for appointing andnominating high-level managers, as well as formulating and reviewing the overall sustainable development strategies and
ESG information reporting of the Company. In addition to the overall competencies and industrial experiences for the Board of
Directors, the board members also have the abilities for the development of business diversification. To live up to the spirit ofboard diversity and gender equality, the target of female directors accounting for more than 30% of the Board of Directors by 2025
has been set. 13 directors were elected for the 10th Board of Directors in 2022 (10 male directors and 3 female directors), including
5 independent directors (4 male independent directors and 1 female independent directors). Directors' tenure is three years.
Having been serving at Chunghwa Telecom for more than 20 years, Mr. Shui-Yi Kuo, Chairman & CEO of Chunghwa Telecom, has
well-rounded experiences in the telecommunications industry. He actively promotes various businesses, implements strategictransformation plans, lays the foundation for the sustainable development of the Company to create values for shareholders,
employees, and investors. In addition, external directors (including independent directors) can offer objective, professional
opinions based on their diverse professionalism and fields of expertise, helping the Board of Directors make decisions that are
most beneficial to the Company and the shareholders.
All independent directors are included in the Audit Committee to ensure the independence of governance and the perspectivesof the stakeholders. To ensure an effective operation of sustainable management and achieve the company's vision and short,medium, and long-term strategic objectives effectively, we included ESG Sustainable Development in the Directions Governing
Performances of Senior Managers of Chunghwa Telecom, integrated in the key performance indicators for the corporate
performance, departmental performance, and individual performance.

CHT Board of Directors
30-50 Years Old (person)
Above 51 Years Old (person)

1
9

0
3

Chunghwa Telecom received a letter from the
major shareholder, Ministry of Transportation andCommunications (MOTC) on May 2, 2023, which
notified the discharge of Mr. Chi-Mau Sheih fromthe position of the representative of corporate
director, rendering a total of 12 directors on
the board before another director assigned by
the MOTC. Please refer to Appendix 2: GRI 2-9
Governance Structure and Composition of thisReport for more details.

18

The nomination and selection of the directors of Chunghwa Telecom
is conducted pursuant to the relevant laws and regulations as well as
the Articles of Incorporation of Chunghwa Telecom Co., Ltd. With acandidate nomination system in force, the candidates are nominatedby the Board of Directors and the shareholders that meet thestatutory shareholding ratio requirements. The director nomination
announcement and nomination thereof are conducted in accordancewith legal procedures. The qualification and selection of independent
directors are conducted in compliance with the "Regulations
Governing Appointment of Independent Directors and Compliance
Matters for Public Companies" and in line with Article 24 of Chunghwa
Telecom Co., Ltd. Code of Corporate Governance.

* Directors Election Regulations of Chunghwa Telecom Co., Ltd* Code of Corporate Governance for Chunghwa Telecom Co., Ltd

Continuing Education of the Board of Directors: Please refer to p.87-90 of
the Company's 2022 Annual Report.

All Chunghwa Telecom directors are nominated by
the Board of Directors and shareholders holding thelegally required percentage of shares. In order to link
the performance of directors with the company's
sustainability vision and short-, medium- and long-term
strategic goals, to evaluate their core competencies andstrengthen their responsibilities, to link performanceand remuneration, and to retain and attract key talents
to join the board of directors, the Compensation
Committee has planned to include the ESG sustainable
management strategic goals as an indicator of directors'
remuneration in accordance with the company's articles
of incorporation and other relevant regulations. The
implementation of this measure coupled with thesubstantial effect of the variable compensation plan is a
win-win for the Company and its directors.
Director compensation:
Please refer to p.36-38 of the Company's 2022 Annual Report.

Governance Procedures of the Boardof Directors for the ESG Topics in 2022
1
2

A total of 9 meetings of the Board of Directors were convened, with Material ESG topics presented in 4 of these meetings
Material ESG topics presented on the board meetings:• The issuance of Sustainability Bond of NT$3.5 billion worth, which is the first sustainability bond issued by a domestic
telecom operator and the largest sustainability bond issued by a domestic non-manufacturing company, aiming tosupport investments in environmental protection and social development• Strategies in response to Taiwan's Pathway to Net-Zero Emissions in 2050 and report on the compliance with the GHG
inventory disclosures required by the regulatory agencies at home and abroad• Report on the plan for the GHG inventory and verification schedule of the parent company with the execution progress
tracked quarterly in accordance with the Sustainable Development Roadmap for TWSE- and TPEx-Listed Companies,
Financial Supervisory Commission (FSC)• Declaration of the Company's Participation in the RE100 Initiative, Commitment to Electrify Official Vehicles forEngineering Purposes, and Increase Use of Renewable Energy in IDCs
• Setting of carbon reduction targets and proposal of key ESG topics and the coping strategies thereof• Adjustment to the definition of female manager into "director level and above"• The linking of the variable compensation and accountability of senior managers with key ESG issues• Scale-up promotion of flexible working hours for the Company and its business groups

19

CORPORATEOVERVIEW

Corporate Governance 18

SUSTAINABILITY VALUESTRATEGY

ESG Management 28

MATERIAL TOPICS
AND IMPACTS

Corporate Strategy Committee

The Board of Directors consists of seven directors (including four independent directors), who are responsible for important operational issues, such as
medium- and long-term development goals and strategies, major investments
and mergers and acquisitions, significant organizational adjustments, acquisition or return of operating licenses, preparation or revision of annual operatingplans and budgets, capital increases or decreases, and other important strategic issues (including ESG energy conservation, carbon reduction and environmental sustainability), etc. The review conclusions of the meetings shall be
submitted to the Board of Directors for resolution as necessary.

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATION

1. Prevention and Mitigation Process
The policy to prevent conflict of interest has been stipulated at Chunghwa Telecom, along with appropriate channels available
for directors, managers, and other stakeholders to proactively account for whether they have potential conflict of interest with
the Company. If any individual or a legal entity represented thereby is an interested party with respect to any agenda itemof a board meeting, he or she shall state the important aspects of the interested party relationship at the meeting. When therelationship is likely to prejudice the interests of the Company, he or she may not participate in discussion or voting on suchagenda item and shall enter recusal during discussion and voting on that item and may not act as another director's proxy
to exercise voting rights on that matter. In the case of lifting the non-competition restriction against a director, in addition tosubmission of the matter to the Board of Directors for discussion, he or she is required to account for the important aspects ofsuch act to the shareholders' meeting and obtain the permission therefrom.
The Operations of the Board of Directors: please refer to p.46-48 of the Company's Annual Report.

Audit Committee

Consists of all independent directors, who are responsible for thesupervision of the fair presentation of the financial statements of theCompany, the selection (discharge), independence, and performanceof certified public accountants, the effective enforcement of theinternal control of the Company, the corporate risk management
mechanism, and the compliance with relevant laws, regulations, andstandards.

Compensation Committee

Consists of three independent directors, who are responsible forthe evaluation of the performance of directors and managers,and for determination of appropriate compensation policies,
system standards, and structures. Also, the compensationsof directors and managers are evaluated and stipulated on aregular basis.

1.The committees above are all accountable for the decisionmaking/supervision of "impacts on the economy, environment,
and people" of CHT.
2. For the content reported pursuant to GRI 2-9 Governancestructure and composition, please refer to p.160-161,
Appendix.

2. Disclosure on conflicts of interest

Cross-board memberships

Cross-shareholding
with suppliers
and other stakeholders

Avoidance of Conflict of Interest

To avoid conflict of interest at the highest governance body, our Organization and Talent Development Department is responsible
for assisting the Board of Directors and the management in the stipulation, supervision, and execution of the ethical management
policies and guidelines for conduct, which is to report to the Board of Directors regularly (at least once a year) to assist the Boardof Directors and the management to check and assess whether the preventive measures established with the implementation of
ethical management operate effectively. With the high moral standards for self-discipline of the directors and the operation of acomprehensive mechanism, there has not been any conflict of interest occurred to the Board of Directors of Chunghwa Telecom
since its establishment.
The directors, managers, and employees are obliged to act in the best interests of Chunghwa Telecom to avoid any conflict ofinterest. In the event of the objectivity of an individual comes into question due to the interests of the individual, or the spouse,children, or relative within the second-degree kinship thereof, he or she is to report such to the direct supervisor thereof or theOrganization and Talent Development unit of the Company. Where an individual realizes that certain important transactions or
relations may lead to personal conflict of interest, he or she is to immediately discuss such with the direct supervisor thereof or theOrganization and Talent Development unit of the Company.

20

Existence of controllingshareholders
Related parties, theirrelationships, transactions,and outstanding balances• Lifting of the Non-competition Restrictions on the Candidates for the 10th Board of
Directors of the Company, Session 18, 9th Board of Directors.
• Lifting of the Non-competition Restrictions on the representative of juridical person
directors, Session 2, 10th Board of Directors.

The "Procedures for Acquisition or Disposal of Assets of Chunghwa Telecom Co., Ltd." hasbeen stipulated in line with the government regulations. The related parties are identified
in accordance with the Regulations Governing the Preparation of Financial Reports by
Securities Issuers, and the list of such is disclosed online.
Pursuant to the procedures, the Company may not enter into a transaction contract ormake a payment until materials pertaining to a transaction of an amount of NT$300
million or more with related party are submitted and approved by the Audit Committee
and afterward by the Board of Directors. In addition, the relevant information should beannounced on the website designated by the Financial Supervisory Commission.
The controlling shareholder of Chunghwa Telecom is the Ministry of Transportation andCommunications, with whom there is no conflict of interest that leads to damage toinvestors' rights.

The disclosure requirement is met by the notes on the related parties in the financial
statements in the Annual Report for the Shareholders' Meeting.

Relevant information on other conflicts of interest:
1. Code of Corporate Governance for Chunghwa Telecom Co., Ltd.
2. Please refer to p.58, 91 of the Company's 2022 Annual Report.

21

CORPORATEOVERVIEW

Corporate Governance 18

SUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

ESG Management 28

Performance Evaluation for the Board of Directors

To implement corporate governance and enhance the functions of the Board of Directors, performance objectives are set forth
to improve the operation of the Board of Directors. CHT sets the Regulations Governing the Performance Evaluation of the Boardof Directors of Chunghwa Telecom Co., Ltd. that details rigidly of the performance evaluation of the Board of Directors. The
self-evaluation for the Directors on the Board is conducted on an annual basis, while the performance evaluation by external,
independent, professional institutions or external teams of experts and scholars is carried out once every 3 years. In 2022, theself-assessment of the performance of directors, the self-assessment of the performance of the Board of Directors, and the selfassessment of the performance of functional committees were completed, with the external assessment carried out by Taiwan
Institute of Ethical Business. The results of the independent external assessment include:
1. Professional functions and decision-making efficiency of the Board of Directors: There are 5 seats of independent directors,
with relevant backgrounds in legal, communications, artificial intelligence, finance, and accounting, who are capable ofproviding diversified opinions from different perspectives. All the members on the Board of Directors indicated that there were
opportunities for thorough discussions in meetings.
2. Oversight for the internal control of the Company by the Board of Directors: The Audit Committee and the Corporate Strategy
Committee are instituted to discuss important issues such as development strategies, operating status, and major transactions
on a regular basis. In addition, the Risk Management Committee is in place at the management level to monitor the overallrisk exposure of the Company under assessment. The establishment of these committees enables the members on the Boardof Directors to more effectively capture the potential risks faced by the Company under assessment as a whole, so as tostrengthen risk management and oversight.

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATION

Creating Value for Shareholders

Chunghwa Telecom generated consolidated revenues totaling NT$216.7 billion in 2022. We are committed to our core businessand active innovation, making substantial and significant contributions to the industry and the country, and creating maximum
value for shareholders. Revenue from mobile services increased thanks to customers upgrading to 5G services and the increase in
the number of mobile customers. ICT projects were completed as scheduled in line with the quality requirement, which benefited
the revenues from tender projects. The overall revenue in 2022 has grown compared to that of 2021. Net income attributable tothe parent company amounted to NT$36.5 billion while EPS reached NT$4.70 in 2022.
Chunghwa Telecom business operations have been stable for years, and we pay our taxes honestly following the law. In 2022,
Chunghwa Telecom income tax was the equivalent of an effective tax rate of 19.54%. The deviation from statutory 20% tax rate
was mainly attributed to the provisions of Article 42 of Income Tax Act, in that net dividends or net earnings recognized from local
invested businesses are exempt from income tax. In addition, the application can also be made for tax preference pursuant to
Article 10 of the Statute for Industrial Innovation as well.

Economic Performances

Total numberof employees
in the Company
including subsidiaries

3. Attitude towards sustainable management: The Sustainable Development Committee is instituted. The Chairman andmanagers jointly promote the implementation of sustainable development-related action plans and report to the Board of
Directors on the implementation of the sustainable strategies, which helps the Board of Directors understand the sustainability
strategy implementation as well as the ongoing promotion and oversight. In addition, ESG-related indicators are also
incorporated as the performance appraisal indicators of managers to strengthen the implementation of ESG programs.

32,123 persons* Regulations Governing the Performance Evaluation of the Board of Directors of Chunghwa Telecom* Results of the 2022 Board Performance Evaluation

Protection of Shareholders' Interests

Chunghwa Telecom has made changes and revisions to several systems and measures based on a corporate governance mindset.
These include e-voting, voting by poll and the disclosure of meeting resolutions made on the Company official website. These
diverse voting channels allow shareholders to exercise their rights easily and this has made corporate governance more effectively.

Shareholder Structure of Chunghwa Telecom
Government
40.86%

Data date July 3, 2022

Financial Institutions
15.80%

Unit: Shareholding ratio

Other Legal Entities
8.60%

Individual
17.24%

Foreign Institutions
and Individuals
17.50%

Paid-up capital

Unit: NT$ million dollars

77,574

Revenues

216,739

Operating expenses

33,290Operating costs

Employee salaries and benefits
Dividends paid to shareholders
Income tax paid

Expenses of social investment

Retained economic value

136,71745,67235,746
8,397

840

2,589

Notes:
1. Certain payments to the government, such as government fines, are included in the operating costs and expenses.
2. Employee salaries and benefits: operating costs and expenses included.
3. Expenses of social investment: costs and expenses not for profit, nor for sales or marketing in nature, are included.
4. Retained economic value = revenues – operating costs - operating expenses – income tax paid

22

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CORPORATEOVERVIEW

Corporate Governance 18

SUSTAINABILITY VALUESTRATEGY

ESG Management 28

MATERIAL TOPICS
AND IMPACTS

Highest Moral Standard

To strengthen ethical operation management, we have set up the "Ethical Corporate Management Best Practice Principle",and "Code of Ethics of Chunghwa Telecom Co., Ltd.", and has deepened the publicity and education of employees and external
stakeholders (supply chain partners). We also obtained Certificate of Conformity for Code of Conduct (CoC) from SGS-Taiwan for
four years in a row.

In 2022, the promotion and test of regulations in the Ethical Corporate Management Best Practice Principles were implemented from
September 12 to October 7. At the same time, the education courses on "Code of Conduct" and "Ethical Corporate Management
Best Practice Principles" were administered to all employees via e-learning. As for reasons otherwise, except Maternity Leave,
Occupational Sickness Leave, and Long-term Sick Leave, 19,596 employees have 100% completed the test. A specific management
mechanism is in place to ensure that all employees are engaged in operational activities with the highest ethical standards. Under
the control of a good mechanism, there were no major violations of regulations in 2022.
In terms of system, the ethical corporate management policy is integrated with the performance appraisal of employees andhuman resource policy. A specific, effective reward and penalty system has been established. "Guidelines for Personnel Evaluation"and "Standards Governing the Administrative Rewards and Discipline of Chunghwa Telecom Personnel" have been stipulated
as the reference in employee performance appraisal. In the event of matters worthy of reward or actions to be disciplined, therewards or disciplinary actions will be issued promptly in line with the regulations.
Beginning in 2022, new fixed term contract employees were required to undergo the education courses on "Code of Conduct" and "EthicalCorporate Management Best Practice Principles".

Item

Policy commitment of"responsible businessconduct"

Content• Ethical Corporate Management Best Practice Principles for Chunghwa Telecom Co., Ltd., Code of
Ethics of Chunghwa Telecom Co., Ltd. and Procedures for Ethical Management and Guidelines for
Conduct for Chunghwa Telecom Co., Ltd. regulates all employees engaged in all activities with thehighest standard.
• Chunghwa Telecom Anti-Corruption and Anti-Money Laundering Policy establishes clear anticorruption and anti-bribery guidelines to govern all business interactions based on the principleof zero tolerance.

• Chunghwa Telecom Human Right Policy, which emphasizes and implements the protection ofhuman rights issues.

Referenced
Government
Documents

Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies,
Guidelines for the Adoption of Codes of Ethical Conduct for TWSE/GTSM Listed Companies, etc.

Whether due diligence
was conducted

We perform due diligence in accordance with relevant policies, such as the "Chunghwa Telecom
Human Right Policy", which provides for regular internal due diligence such as human rights
assessments to enhance the human rights awareness of employees and stakeholders.

Whether
precautionary
principle was applied"Risk Management Policy" and "Directions Governing the Risk Management Operation of Chunghwa
Telecom Co., Ltd" were established. Using risk matrix to identify and analyze relevant opportunities
and risk events for effective risk control.

Whether the norm
respects Human Right

24

Relevant policies explicitly declare a commitment to respecting the human rights of the stakeholders
they encompass. For example, the implementation of the Human Right Policy ensures the protection ofhuman rights issues for employees, suppliers, and other stakeholders.

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATIONIn terms of in-depth exercise of the policies for integrity and ethics, the internal and external methods are adopted in parallel toensure the implementation of "responsible business conduct" in the industrial value chain. Relevant measures include:

Internal (Employees)

1. The Organization and Talent Development department is the responsible unit for ethical management, responsible for systems
formulation, control and supervision, and reporting on board meetings.
2. Through the internal control and audit system, the compliance and implementation of the measures related to the ethicalmanagement of various units are reviewed on a regular basis.
3. The corporate ethical management regulations are promoted, and relevant tests are conducted on a yearly basis. All
employees are required to sign the statement of ethical business and Code of Conduct and take relevant training courses.
4. Education and promotion: A series of training courses are designed to cover relevant contents including Code of Conduct andEthical Corporate Management Best Practice Principles, along with promotion to employees via the e-learning platform andwith relevant cases.
5. All institutions have the personnel from the Organization and Talent Development department stationed to respond toinquiries from employees concerning the policies or practices of business ethics.

External (Business Partners)

1. Business partners are required
to agree to abide by Chunghwa
Telecom Supplier Sustainability/
ESG Guidelines and Code of Conduct.
2. The execution of anti-corruption
and policies of business ethics areassessed through the ESG Status
Self-Assessment Form.
3. SGS-Taiwan is commissioned to
conduct the second-party audit
on the compliance with relevantlaws, regulations, and standards
by contractors and suppliers ona regular basis to probe into thelevel of implementation.

Companies Invested

1. Due diligence is carried out, covering topics like human rights, anti-corruption, code of conduct, etc., and corrective measuresare explained on a yearly basis.
2. Policies in relation to the Code of Conduct and the Ethical Corporate Management Best Practice Principles of Chunghwa
Telecom are promoted to subsidiaries and companies invested for a collective practice of the concepts.
Multiple communication channels, along with a specific whistleblower system, are in place for possible negative impacts (including
business ethics) at Chunghwa Telecom. Pursuant to the relevant internal regulations, items as follows are faithfully executed:
Set up and announce the internal and external independent whistleblowing mailboxes and hotlines,
keep the identity of and the content reported by whistleblower confidential, and allow anonymous
whistleblowing.
•Internal: The employee grievance hotline made available in the Employee Section on the EIP•External: Reporting channels disclosed on corporate websites.

Appeal Review Committee has been established to handle appeals concerning discrimination andother inappropriate conducts. There are 5 members on the committee, including 3 female members,
accounting for over a half of the seats.

25

CORPORATEOVERVIEW

Corporate Governance 18

SUSTAINABILITY VALUESTRATEGY

ESG Management 28

MATERIAL TOPICS
AND IMPACTS

Negative Impact Remediation Procedures

We have multiple communication channels in place to ensure that all stakeholders can express their opinions as well as filecomplaints and reports through various channels. All negative impacts are properly responded, handled, and remedied. Also, themechanisms for communication, coordination, and response are strengthened on the basis of the feedbacks from stakeholders toensure a better alignment with the needs of stakeholders.

• Operational issues: In response to major public opinions or events of material information, the information is promptly
presented to the Headquarters for analysis upon reception thereof, which is forwarded to units pertaining to the events toperform fact check and provide materials. After a resolution adopted by the management, the decision to issue a press release,call a press conferences, release material information, or respond to the media is made in line with the actual needs to disclose
information to the public.
• Consumer disputes: Consumer disputes may be submitted to the Telecommunications Consumer Mediation Center (https://web.tcmc.tw/) or referred to the window of telecom operators, so as to properly assist in the mediation of consumer disputes
in a convenient and non-litigation manner.

• Labor-management relations: The chairman of the workers' union, for example, may attend the business report meeting, andsenior managers are invited to participate in major labor-management consultation meetings to ensure a full communication
between labor and management.

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATION

Transparent Information Disclosure

The corporate governance of Chunghwa Telecom places great emphasis on integrity, accountability, and trustworthiness. We
utilize a variety of means such as the corporate website, a Market Observation Post System, Annual Reports, ESG Reports, press
conferences and investor conferences to facilitate transparent communication with stakeholders. Furthermore, measures have beentaken to ensure the timeliness, quality, balance, and credibility of the information disclosed. As of the ninth Corporate GovernanceEvaluation in 2022, we were recognized as the top 5% for the eighth time as well as the top 10% in "The electronics industry with amarket value of 10 billion TWD or more" of the TWSE- and TPEX-listed companies in the Evaluation. In addition, The MSCI ESG rating
was upgraded to AA in May 2023!

With regard to legal compliance disclosure, Chunghwa Telecom abides by the regulations in the "Taiwan Stock Exchange Corporation
Procedures for Verification and Disclosure of Material Information of Companies with Listed Securities." Any penalty by the competentauthority or any other administrative action, or significant impact to finance or business, is deemed as a material incident (penalties
and administrative actions included), which shall be disclosed on the "Market Observation Post System." In 2022, there was nomaterial information concerning Chunghwa Telecom subject to penalties of competent authority or any other administrative action.

The Internal Audit System

The internal audit helps the Board and managers to check the effectiveness of the internal control systems and operations. It is
located under the Board and conducts business audits in accordance with the regulations and policies. The annual audit plan isformulated based on the results of the risk assessment made at the end of every year. After the approval of the Board, the plan issent to the competent authorities via the Internet information system for their reference.

* Organization and functioning of Chunghwa Telecom's internal audit unit
Strengthen Business Management

In order to enhance the quality of our business marketing, build consumer trust in the CHT's brand, and maintain a good reputationand corporate image, we have formulated the "Business Marketing Standards" to ensure that our business marketing is conductedin accordance with the regulations and requirements of the law and the competent authorities. As a result of our efforts to comply
with these regulations, we have not been penalized by the Fair Trade Commission in 2022.

Supporting Global ESG Initiatives and Guidelines

Prevention of Corruption

Chunghwa Telecom stand by the principle of zero tolerance for corruption. The Chunghwa Telecom Anti-Corruption and AntiMoney Laundering Policy has been stipulated to regulate all operations and business interactions. The subjects covered in thepolicy include board directors, employees, suppliers, etc. The Chief Administrative Officer, CAO serves as the person in charge,
responsible for supervising and guiding on issues related to business ethics and corruption as well as regularly reporting the resultsof supervision to the Board of Directors. We track the progresses of and conduct risk assessments on the implementation of the
Ethical Corporate Management Best Practice Principles and Anti-corruption policies on a regular basis, covering 100% of all our 28
institutions and operating sites. Also, no major corruption risks are identified based on the risk assessment.
We also demand stakeholders conducting business with Chunghwa Telecom, such as suppliers and contractors, to abide by ethicalstandards equivalent to that of the CHT employees. Besides, through the internal audit mechanism and the secure, rigorous,and confidential employee whistleblowing mechanism, we vigorously examine any possible illegal act of internal and external
stakeholders. In 2022, a total of 74 complaints and reports were received, all of which were handled and closed in accordance withpertaining regulations.

There was no violation of corruption, bribery, discrimination, harassment, customer privacy or personal data, conflict of interest,
money laundering, and insider trading specified in the Code of Conduct in 2022. A total of 6 other disciplinary cases were
investigated and dealt with in accordance with operational regulations and handling principles, in order to guide the employees toact in accordance with the rules and regulations and to protect the discipline of the Company and shareholders' rights.

* Chunghwa Telecom Anti-Corruption and Anti-Money Laundering Policy

26

We voluntarily follow the principles and norms of the United Nations
Global Compact. In terms of human right, we respect and uphold allinternationally recognized human rights and do not engage in any
disregard or abuse of human rights; in terms of labor standards, we upholdthe freedom of association of our employees, recognize and uphold theright to collective bargaining between employers and employees, strive toeliminate any form of labor misconduct, and eliminate discrimination in
employment.

Chunghwa Telecom publicly discloses its human right policy andestablishes a complaint and handling mechanism to continuously
incorporate human right issues into the company's policies andmanagement practices. Telecommunication Training Institute, Chunghwa
Telecom offer special classes every year to provide lectures on humanrights issues, and plans additional courses and training when laborrelated laws and regulations are revised or policy issues are adjusted.
6 courses were held in 2022. The course hours were 16 in total with 276
person-times joined. The human rights introduction chapter will be
included in the Next Generation Growth Camp. Additionally, in 2023,
human rights-related issues will be incorporated as one of the topics inthe ESG Sustainable Learning Map.

* Chunghwa Telecom Human Right Policy

27

CORPORATEOVERVIEW

Corporate Governance 18

SUSTAINABILITY VALUESTRATEGY

ESG Management 28

MATERIAL TOPICS
AND IMPACTS

ESG Management

Chunghwa Telecom introduced the CSR management mechanisms and established the "CSR Committee" in 2006. In 2021, the"CSR Committee" was restructured as the "Sustainable Development Committee" as the response to the trend of sustainable
development. The CHT Chairman and the President serve as the Chairperson and Vice Chairperson of the Sustainable
Development Committee, representing the Board of Directors in formulating and reviewing sustainable development strategies,
policies, and goals. They also oversee the annual ESG performance and regularly report to the Board of Directors. Based on theguidance provided by the Board, appropriate actions, including ESG organizational adjustments, are taken.
Our vision for sustainable development is "Greening & Decarbonization, Digital & Empowerment, Integrity & Transparency."
By integrating unique corporate resources and leveraging core competencies, Chunghwa Telecom plans and implements acomprehensive ESG action plan through four subcommittees under the ESG committee. With the spirit of "Always Ahead," we aim
to stay at the forefront by developing and executing ESG initiatives in various aspects.

* Sustainable Development Best-Practice Principles of Chunghwa Telecom Co., Ltd.

Targets and Strategies by 2030

Strategy: raising the efficiency of energy
and developing renewable energy
Target:1. 50% cut of carbon emissions comparedto that of 2020
2. 100% renewable energy used in IDCs

Society

Targets and Strategies by 2030

Strategy: Enhancement of gender equality consciousness, increase
the proportion of female executives, establishment of education
support ecosystem, creation of product marketing teams in the rural
areas
Target:1. Ratio of female managers (Section Chief or above) raised to 30%
2. Cumulative 22,000 individuals from the disadvantaged groups in
the rural areas benefited from the digital empowerment
3. Cumulative 19,800 SMEs with digital environments or new business models established

GovernanceTargets and Strategies by 2030

Strategy: Improvement of ESG rating level and linking ESG indicators
to executive compensation
Target:

1. "AA" of MSCI ESG Ratings attained by 2025 ; "AAA" of MSCI ESG
Ratings attained by 2030
2. 30% of the variable compensation

28

Progress in 2022

Target:1. Ratio of female managers raised to 21.5%
2. Cumulative 8,800 individuals from thedisadvantaged groups in the rural areas
benefited from the digital empowerment
3. Cumulative 29,000 SMEs with digital
environments or new business models
established

Progress in 2022

Target:
1. "A" of MSCI ESG Ratings attained
2. 10% of the variable executive compensation
links ESG indicators

PUBLIC POLICYPARTICIPATION

The "Chunghwa Telecom Sustainable Development Committee" was established for expanding sustainable benefits of our corecompetence and implementing ESG vision as a starting point to promote the sustainable development of the industry and society.
The Committee convenes every half a year. Under the CHT Sustainable Development Committee, "Environmental Group", "Social
Group 1", "Social Group 2", and "Governance Group", which are supervised by four SEVPs of the Headquarters. The President calls
an inter-group meeting quarterly to regularly review ESG strategies and action plans, and to confirm the achievement of ESG goals
and targets.
Representative

Progress in 2022

Target:
1. 76,000 metric tons (9.6%) cut of carbon
emissions compared to that of 2020
2. 18.84 million kWh (9.2%) renewable energy
used in IDCs

THE CREATIONOF SUSTAINABLE VALUE

Sustainable Development Committee

Mechanism

ESG Target by 2030
Environment

SUSTAINABILITY RISKSAND OPPORTUNITIESExecution

Shui-Yi Kuo, Chairman

Sustainable Development Committee is responsible for coordinating each plan and supervising the
progress of the policies, systems and related management guidelines approved by the Board of Directors.
It also quarterly reports the relevant issues, the results of communicating with stakeholders, results ofsustainable development progress, and achievements of goals to the Board.

• The Corporate Communications Department and Corporate Planning Department are designated as
Secretariat. Externally, the Secretariat is responsible for the ESG Report and information disclosure,various ratings and awards, exhibition participation and media communication; internally, it coordinatesinter-group cooperation, target management/review and tracking, and performance evaluation design.
• ESG groups set the annual targets and Objective Key Results (OKRs) and promote and implement
various sustainable development works together with business groups and the respective institutions.
• The committee and interim ESG achievements are reported to the Board of Directors on a quarterly
basis. The guidance and opinions provided by the directors on various issues are tracked by the
Secretariat of BoD through meeting discussions, and the relevant departments are requested to reporton the progress of implementation.

Meeting
Frequency

Once every half a year for Committee meeting; quarterly for the inter-group meeting; monthly for thegroup meeting

ReportApproval

Reports are submitted to Chairman for review pursuant to the official document submission procedure andapproval upon review by the SEVPs at the Headquarters.

Execution
Results
in 2022

1. The GHG inventory across the entire value chain (Scope 1-3) in 2022 completed
2. The internal carbon pricing system established3. The Science-based Targets (SBTs) submitted for review and the application to join RE100 filed
4. Preferential childcare policies: ① childcare allowance for employee with child aged 6 or younger ② 1
work hour reduced per day for employee with child aged 3 or younger ③ early childhood education
center at workplace
5. The flexible working hour extended from 1 hour to 2 hours
6. "Digital Empowerment Incubation Program" hand in hand with World Vision Taiwan and Microsoft
Taiwan to plan for the children of disadvantaged families in Lanyu
7. Linking ESG with 10% of the variable compensation of senior managers
8. Issuance of sustainability bond worth NT$3.5 billion
9. "Senior Management ESG knowledge Courses" organized to deliver ESG education and training
courses to senior managers
10. A total of 46 employees enrolled in the "Corporate Sustainability Manager Certification Training
Program" and certified

Chairman Shui-Yi Kuo assumed office on May 5, 2023.

29

CORPORATEOVERVIEW

Corporate Governance 18

Chairperson

SUSTAINABILITY VALUESTRATEGY

ESG Management 28

Sustainable Development Committee

Chairman of the Board

MATERIAL TOPICS
AND IMPACTS

Vice Chairperson

President

Committee members

ChannelHead Office Executive SEVP (Group Leader)
President of Business Group
Chunghwa Telecom Foundation CEO

Secretariat of Committee

Environmental
Group
Environmental
Sustainability
Subgroup

Social Group 1

Corporate
Volunteer
Subgroup

Employee
Care
Subgroup

Employee
Training

Social Group 2

DigitalOpportunity
Subgroup

Consumer
Care
Subgroup

GovernanceGroup
Corporate
Governance
SubgroupInternalization andCommunication of ESG
Chunghwa Telecom has employees
all over in Taiwan. In order to ensurethat all employees understand thespirit of corporate sustainability,
implement it and provide timely
fe e d ba c k , w e h a v e e sta b l i s h e dmultiple communication channels
within the Company to promoter e l e va n t i s s u e s , a n d co m b i n e dwith the performance evaluation
mechanism. We have translated theconcept of sustainability into action
and implemented it in our daily
operations.

30

Annual
Evaluation

Item

Content

Communication
within Senior
Management

Seniormanagement
meeting

Material ESG issues are discussed in the senior management meeting annually,
and the resolution indicates our improvement and direction.

EIP Portal

An internal website/system is provided for employees to submit suggestions,innovative ideas, and other feedback to encourage employee participation.
An employee platform is also established, which includes an open channel
for complaints and whistleblowing, as well as communication channels forexchanging messages and information.

PUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

Item

Content

Environmental training

In 2022, 5G Plastic Free environmental education volunteer training was
conducted in Taichung and Kaohsiung, aiming to promote the concept ofenvironmental sustainability.

ESG training

Ever y year, we implement education programs related to corporate
sustainability, and follow international trends by hiring external consultants toteach courses and exchange thoughts.

New employee training

New employees undergo digital pre-service training and the Growth Camp that
include corporate values, personnel systems, work rules, and labor-management
relationships.

e-Learning

We post relevant training courses and information on the e-Learning system thatcan be downloaded and studied freely by the employees.

Administrative
sustainability
performance

OthersChannelCommunication
with Employees

SUSTAINABILITY RISKSAND OPPORTUNITIES

Including various sustainable development goals in the annual performance
evaluation serves as the basis for assessing the effectiveness of unit-levelpromotion.

Online quizof ethics regulations

We conduct annual training and testing on the Code of Conduct, EthicalCorporate Management Best Practice Principles and the Prevention of Insider
Trading.

Report and appeal

Employees violate the Code of Conduct and Ethical Corporate Management
Best Practice Principles will be dealt with in accordance with the Company's
regulations.

ESG Report workshop

Internal training on new ways of preparing reports is held from time to time toenhance employees' awareness of ESG trends.

Official website andsocial media

Set up "Sustainability/ESG" section on the official website and Chunghwa
Telecom's YouTube channel and set up a FB fanpage.

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CORPORATEOVERVIEW2

SUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY VALUESTRATEGYSUSTAINABILITY RISKSAND OPPORTUNITIESFIVE MAJOR FORCES
DRIVE THE SUSTAINABLE
CYCL
PUBLIC POLICY
THE CREATIONPARTICIPATIONOF SUSTAINABLE VALUECREATING SUSTAINABLE VALUESIX MAIN CAPITALS CREATE SUSTAINABILITY VALUE34

CREATING SUSTAINABLE VALUE		

36

FIVE MAJOR FORCES DRIVE THE SUSTAINABLE CYCLE

34

T

he result of our ESG input has been the creation of profit in corporate
operation and a maximization of shareholder value. Our shareholder
structure allows us to carry on a broad citizen responsibility. Our positionin the ICT industry and the innovative products and services we provide
give us the opportunity to use technology and innovation to control therisks and grasp opportunities. Our innovative products and services have apositive economic influence on the value chain, create sustainable value forthe industry and the public and greatly minimize the negative impact on theenvironment.

The SDGs CHT contributes toin this chapter:

Six Main Capitals -"Financial Capital, Human Capital, Intellectual Capital, Manufactured
Capital, Social Capital and Natural Capital"

Vision-"Digital economy transformation, Industrial innovation, Talent startup,

Happy corporation, Considerate services, Transform into green corporation

32

thoroughly, and Connect•Hope•Technology"

Five Major Forces -"The Motivator of the Digital Economy, The Creative Industry Pilot, The
Happiness Value Protector, The Green Corporation Pioneer, and The
Social Value Guide"33

CORPORATEOVERVIEW

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY VALUESTRATEGY

Six Main Capitals Create Sustainability Value 34

Five Major Forces Drive the Sustainable Cycle 34

Five Major Forces Drive theSustainable Cycle

SUSTAINABILITY RISKSAND OPPORTUNITIESCreating Sustainable Value 36

We utilize our ICT corporate core competence and integrate with ESG to establish the five main forces, "The Digital Economy
Motivator, The Creative Industry Pilot, The Happiness Value Protector, The Green Corporation Pioneer, and The Social Value
Guide." We think that the input in these five main fields will help accomplish a society with digital inclusion and the future ofsustainability development.

The
Happiness
Value Protector

Prospect
Strategy

Happy Enterpriseand Considerate Services• Create a healthy, happy workplace• Protect information, labor, and human rights• Provide quality, innovative services

The Creative
Industry Pilot
Prospect

Industrial Innovation
and Talent Entrepreneurship
Strategy• Invest and incubate startups• Encourage innovation andentrepreneurship internally

The Green
Corporation Pioneer

Six Main Capitals Create

Sustainability Value

Human
Capital• Share capital
77,574,465 thousand

Strategy• Become a leading brand of 5G
telecom services• Inspire innovative applications;create new business models

34

Total Transform into a
Green Enterprise
Strategy• 5G (Green) Actions• Establish green,• Capital expenditures
31,534,946 thousand• Salary and welfare expenses
45,672,395 thousand• Training expenses 460,843 thousand• Equipment installationand maintenanceexpenses 31,534,946
thousand

Manufactured
Capital• Cell tower installation
expenses 10,551,367
thousandSocialCapital• Social investment
839,678 thousand• Universal telecom services
510,758 thousand

Prospect

Digital economy transformation

Prospect

low-carbon supply chains

Financial
CapitalDigital economy
transformation

PUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUEIntellectual
Capital• R&D expenses 3,774,309 thousand• Marketing expenses
22,819,067 thousand

NaturalCapital• Green procurement
17,605,000 thousand• Environmental management
expenses 348,375 thousand

The Social
Value Guide
Prospect

Connect•Hope•Technology
Strategy• 5I SDGs digital inclusion initiative• Corporate volunteer
works everywhere

35

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

Six Main Capitals Create Sustainability Value 34

MATERIAL TOPICS
AND IMPACTS

Five Major Forces Drive the Sustainable Cycle 34

Creating Sustainable ValueSUSTAINABILITY RISKSAND OPPORTUNITIESCreating Sustainable Value 36

THE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATION

Ou r E SG is s u es a nd actions
have created sound economic,
environmental and social value
since 2006. Although we havemade serious efforts to adapt
quantized data when setting-up
and managing ESG plans, targets
a n d p e r f o r m a n ce , w e h a v ecome to realize the difficultyof quantizing environmental
and social values. There is stilllots of true value that cannot
be realized with the currency
presently used as evaluation
indicators of ESG performance.

Shareholders / Investors• EPS NT$ 4.70

• Consolidated revenue NT$ 216.7 billion• Selected for the Emerging Index of
the Dow Jones Sustainability Index for the 11th time

Employees• Employee salary and benefits are NT$ 45,672 million• The average training hours per person are 57.65 hours• The total training cost is NT$ 460,843 thousand

Clients / Customers

Supply Chain Partners• The customer hotline service satisfaction score is 4.75
(5-point scale)• The local procurement percentage takes up 97% of the total procurement• The customer satisfaction score is 7.91 (10-point scale)• The occupational injury rate per thousand workers is
2.14 for men and 1 for women• We have 631 employees with disabilities (the legal
amount is 186 people)•57 indigenous employees

36• The employee engagement score is 92.38 (out of 100)•45 certified Gold-tier sustainable partners• The green procurement amount is NT$ 17,605 million

Communities / NPO• We provide the disadvantaged groups' communication for 84,221 households• The subsidy amount is NT$ 156,268 thousand• Coverage rate of the 12Mbps universal broadband service is over 91.59%• The voice assistant App for the blind has been viewed over 3.35 million times since 2013

• The location of digital good neighbor has accumulated to 89 places• The total service hours of the corporate volunteer service are 48,797 hours

37

CORPORATEOVERVIEW3

SUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY RISKSAND OPPORTUNITIESPUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUEPROCESS FOR DETERMINING MATERIAL TOPICS

40

STAKEHOLDER ENGAGEMENT		

48

2022 MATERIAL TOPICS AND IMPACTS

42

W

e intend to provide all stakeholders concerning the future of
Chunghwa Telecom as well as the telecom industry with amore comprehensive understanding of how Chunghwa Telecom
has exerted its industry influence on ESG topics. This purpose has
improved the quality of our actions and disclosures.

• Frequency: once a month• Sign-off for materiality determining process/material topics review:
representative of the Board of Directors• Types of external stakeholders involved in determining material topics:
consumers, suppliers, authorities, NGOs/NPOs

38

39

CORPORATEOVERVIEW

Process for Determining Material Topics 40

SUSTAINABILITY VALUESTRATEGY

2022 Material Topics and Impacts 42

MATERIAL TOPICS
AND IMPACTS

Stakeholders Engagement 48

SUSTAINABILITY RISKSAND OPPORTUNITIESPUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

Process for Determining Material Topics

STEP 1

Ongoing Collection /Identification of Various
Sustainability Topics
The international trends on sustainability/ESG topics, disclosure frameworks/
standards (e.g. GRI Standards, TCFD,
and SASB), sustainability ratings (e.g.
DJSI and MSCI), information of international benchmarks, and the relevant
ESG news concerning Chunghwa Telecom in 2022 are collected on an ongoing manner. In line with the short-, medium-, and long-term ESG goals, topics
of different aspects are identified, andrelevant information is collected.

STEP 2Significant Impact
Evaluation

The feedbacks from external stakeholder assessments are integrated.
The actual and potential impacts fromtopics on various ESG aspects are determined by different ESG groups via
questionnaires and interviews as wellas pursuant to the double materiality
principle, followed by an assessment of
the significance of impacts from respective topics.

Materiality Assessment –External Stakeholder
Engagement Process

A variety of communication and engagement
interfaces are in place at Chunghwa Telecom. Different
types of external stakeholders like competent
government authorities, academia, non-profit
organizations, consumers, suppliers, etc. are invited
to jointly identify and assess ESG-related topics andoffer their valuable opinions so as to further broaden
the vision of view for ESG topic determination. The
engagement channels include:

40

STEP 3

Prioritizing

After the assessment of the significanceof topics, the ESG groups conduct the
final analysis and discussion of the
topics on the basis of internal considerations, practices in the industry, andbenchmarks, along with the opinions
of external stakeholders. The "significance threshold" is set for prioritizationof the topics with actual and potential
impacts before mapping of the "ESG
Materiality Matrix of the Year."Material topic survey on the corporate website:

STEP 4

Result confirmation /Materiality matrix
After the ESG groups agree on the "ESG
Materiality Matrix of the Year," it is submitted to the "Sustainable Development Committee (composed of the top
ESG supervisors and the representativeof the Board of Directors)" for review
and sign-off to verify the results of thematerial ESG topic identification in
2022, which serve as a crucial reference
for the disclosures in the annual ESG
Report/action plan planning.

Interviews and questionnaires:

The "Material Topic Assessment" section has been
set up in the ESG section of the corporate website
to invite external stakeholders to participate in theidentification of ESG topics.

The opinions and suggestions fromexternal stakeholders are collected via
interviews and questionnaires at various
activities/conferences.

Stakeholder forums:

Community engagement:

Dialogues and exchanges are facilitated throughorganizing and participating in forums/seminars
themed with ESG.

External stakeholders are invited via social
media to partake and put forward theirjudgements and opinions on ESG topics.

41

CORPORATEOVERVIEW

Process for Determining Material Topics 40

SUSTAINABILITY VALUESTRATEGY

2022 Material Topics 422022 Material Topics
ImpactMaterial Topics
Green and Lowcarbon Products
and Information
LabelsActualPositive

Stakeholders Engagement 48

Double Materiality

・Impact on the Economy

Actively develop sustainable low-carbon products and services, conduct regulatory checks in termsof health and safety, and carry out communication and training for internal units to ensure the legal
compliance and conformity of products, services, and marketing in order to protect the corporate
reputation.

* Cybersecurity
and Privacy
Protection

Establish well-rounded cybersecurity management systems and mechanisms, and conduct regular
audits and exercises, to ensure that customer privacy is secure and free from violation, elevating
the corporate reputation.

Corporate
Governance andBusiness Ethics

Consider anti-corruption risk as an overall risk of the Company for an effective assessment andmanagement to minimize possible litigation and operational risks arising from corruption.

Actual Positive

HIGH

MATERIAL TOPICS
AND IMPACTS

Scale of Impact: 4.3
Duration of Impact: 4.3

A complete health and safety assessment mechanism for products and services
is in place (including the electromagnetic radiation testing service); products
and services have been fully assessed and labeled to protect the consumer
rights of the broader society.

CUSTOMER PRIVACYDURATION OF IMPACT

DURATION OF IMPACT

Scale of Impact: 4.3
Duration of Impact: 4

Target of the
ImpactGRI Standards

Products andServices

Customers

Customer Healthand Safety

Employees
Customers

CustomerPrivacy

Employees
All Suppliers

Anti-corruption

Establish complete anti-corruption policies and procedures to effectively
Business Activities
manage corruption risks in the supply chain, reduce unethical businessBusiness Relationships
conducts in the industry, and elevate good social ethos.

Scale of Impact: 4.6
Duration of Impact: 4.6

ANTI-CORUPTION

Cause of the Impact

Provide high-quality cybersecurity services and technical support, effectively
Business Activities
expand and communicate correct cybersecurity concepts and technical
Products and Services
services and assist industries and the general populace to effectively manage
Business Relationships
and control cybersecurity risks.

HIGH

PUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE・Impact on the Environment, Society, and People

Potential Positive

The materiality threshold: 4 and above / ≥ 4
CUSTOMER HEALTH AND SAFETYSUSTAINABILITY RISKSAND OPPORTUNITIESThe materiality threshold: 4 and above / ≥ 4

SUPPLIER ENVIRONMENTALASSESSMENT

MARKET PRESENCE

Scale of Impact: 4Duration of Impact: 5
Possibility: 2

Scale of Impact: 4Duration of Impact: 4.3
Possibility: 2.3

PROCUREMENT
PRACTICES

Scale of Impact: 4Duration of Impact: 4
Possibility: 3

SCALE OF IMPACT

LOW
ImpactMaterial Topics
Competitive
Remuneration and
Benefits

Potential
Positive

5G Application
and Industry
Ecosystem* Sustainable
Supply Chain
Management

42

HIGH

Double Materiality

LOW

SCALE OF IMPACT

HIGH

Cause of the Impact

Target of the
ImpactGRI Standards

Business Activities

Employees

Market Presence

A large proportion of procurement is locally procured, along with building good local/
community relations, to ensure supply integrity as well as financial and economic stability,
benefiting the industrial ecosystem development.

Indirectly promote economic development in the region through supply
Products and Services
chain procurement, including attracting other investments and increasing job
Business Relationships
opportunities to promote economic development in the region.

Significant
Suppliers

Procurement
Practices

Plan and institute the complete supplier sustainability management plan to assess andidentify the environmental and sustainability risks of suppliers on a regular basis, improvetheir competencies, and reduce the risk of violation of the laws by the Company via a wellrounded ESG assessment and audit mechanism.

A complete sustainable supply chain management plan to regularly assess the
ESG risks of suppliers and work with suppliers with excellent ESG performance
Business Relationships
to effectively reduce the environmental impacts from suppliers' operations anddrive the improvement of ESG competencies in the industry.

Significant
Suppliers

Supplier
Environmental
Assessment

・Impact on the Economy

・Impact on the Environment, Society, and People

Offer compensations and benefits superior to those of the region/industry at the main
operating sites for employees to have economic security.

Establish steadfast community relations and increase employee loyalty to elevatethe social identity of the Company at where it operates.

43

CORPORATEOVERVIEW

Process for Determining Material Topics 40

ImpactMaterial Topics

SUSTAINABILITY VALUESTRATEGY

2022 Material Topics 42

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY RISKSAND OPPORTUNITIESStakeholders Engagement 48

Double Materiality

・Impact on the Economy

・Impact on the Environment, Society, and People
The inability to effectively promote climate transition actions, alongwith the failure in reducing carbon emissions, not only preventsachievement of the goal of net-zero emissions but also affects
the low-carbon development of the ICT industry, damaging thecompetitiveness in the industry and rendering negative impacts on
climate change.
The lack of diversified employment mechanism renders inability
to provide ample job opportunities for diverse talents, obstacles
for young talents to enter the job market, and impacts on theinnovation, creativity, and entrepreneurship in the ICT industry,affecting the overall economic development of the industry.

ActualNegative

Carbon Emission
Reduction andClimate Adaptation

High carbon fees (taxes) are levied due to the failure to effectively reduce carbon
emissions in response to laws and regulations, resulting in increased direct/indirect
operating costs and potentially decreased climate resilience and transformational
adaptation competencies.

Potential
Negative

Diverse andInclusive
Workplace

The rising average age of the organization and excessive homogeneity, failure toincorporate representatives of diverse groups, and inability to think outside the box
hinder innovation and development, which impede the development of emerging
industries and services.

PUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

Cause of the Impact

Target of the
ImpactGRI Standards

Business Activities
Business Relationships

CHT
All Suppliers

Emissions

Business Activities

Employees

Diversityand Equal
Opportunity

Note: 1. Double Materiality: When evaluating sustainability/ESG issues, we consider both the impact of sustainability/ESG on corporate
operations and business, as well as the impact (positive or negative impact) of corporate operations on the social environment
and people.
2. "*" is an issue that has a significant impact and influence on external stakeholders.
3. Material topics additions and revisions for 2022: 3 new topics "Emissions, Procurement Practices" and "Supplier Environmental
Assessments"; 6 topics "Economic Performance, Energy, Labor / Management relations, Non-discrimination, Occupational Healthand Safety, Marketing and Labeling" were deleted.

Actual Negative

HIGH

Potential Negative

The materiality threshold: 4 and above / ≥ 4

HIGH

EMISSIONSDIVERSITY AND EQUAL OPPORTUNITYPOSSIBILITYSCOPE OF IMPACT

Irremediable Character of Impact: 4
Scope of Impact: 4
Improvability: 3.5

The materiality threshold: 4 and above / ≥ 4

Irremediable Character of Impact: 4
Possibility: 4

DIVERSITY AND EQUAL OPPORTUNITY
Irremediable Character of Impact: 4
Scope of Impact: 4
Improvability: 2

LOW

44

IRREMEDIABLE CHARACTER OF IMPACT

HIGH

LOW

IRREMDIABLE CHARACTER OF IMPACT

HIGH

45

CORPORATEOVERVIEW

Process for Determining Material Topics 40

Management Procedure
ESG A spectE
ESG A spectS
ESG A spect

G
46

SUSTAINABILITY VALUESTRATEGY

2022 Material Topics 42

MATERIAL TOPICS
AND IMPACTS

Stakeholders Engagement 48

Material Topics

Polic y/Commitment

Emissions

Establish a systematic and organized corporate governance structure through the dual-management mechanism of the "Sustainable Development Committee" and "Risk Management Committee," combined with the existing internal control and risk management mechanism, and report to the Board of Directors on a quarterly basis to strengthen the connection between climatechange topics and the Board of Directors.

Supplier
Environment
Assessment

All bidders are required to fill in the "Supplier ESG Status Self-Assessment Form" that covers
items: corporate ethics, labor rights, environmental management, occupational health and safety; suppliers are specifically required in the procurement contract to abide by "Chunghwa Telecom Sustainability/ESG Guidelines."

Material Topics

Polic y/Commitment

Diversityand Equal
Opportunity

Chunghwa Telecom is committed to implementation of gender equality and diversity policies andattaches great importance to the fair pay and promotion opportunities, ensuring that employees
are not subject to discrimination, harassment, or unfair treatment arising from ethnicity, gender,
religion, age, political leanings, or otherwise protected by applicable laws and regulations.

CustomerPrivacy

The Privacy Policy that applies to all Business Groups, operating sites, subsidiaries, and suppliers has been stipulated. "Cybersecurity and Privacy Protection Steering Committee" has established. An SEVP is appointed by the Chairman as CISO to exercise security management and protection measures for personal data and privacy. Also, the goal and commitment to zero tolerance
is achieved via regular meeting and third-party verification.

Customer
Health and
SafetyApart from development of eco-friendly products, we actively promote green stores as the firsttelecom operator in Taiwan that has its service centers fully transformed into green stores.
Through "Chunghwa Telecom Green Stores", we encourage consumers to purchase green products first. As for impacts to human health and safety from services, we strictly adhere to the electromagnetic wave safety standards required by the National Communications Commission (NCC)
to install mobile communication systems and provide electromagnetic radiation testing service
in an attempt to comply with relevant laws and regulations and clarify doubts over the impact.

Material Topics

Polic y/Commitment

MarketPresence

Procurement
Practices
Anticorruption

The independent "Compensation Committee" is instituted to supervise the decision-making
process for compensations to provide competitive compensations for talents with potential.
Through a transparent remuneration policy, employees are rewarded for the operational performance of the Company. In response to sustainable development, the high-level ESG performance is directly linked to variable compensation.
Exercise green procurement. Green products with green labels (low in pollution, recyclable, resource efficient, or green building materials), self-declared, or with lower environmental impacts
throughout their lifecycles (from resource procurement to disposal) are prioritized for procurement, along with active participation in green procurement initiatives and campaigns.
To strengthen the ethical management behaviors, the "Ethical Corporate Management Best
Practice Principles" and "Code of Conduct" have been established as the highest business ethical standards; the principle of zero tolerance is upheld for the "Anti-corruption Policy," specifying
clear guidelines for anti-corruption and anti-bribery, to regulate all business interactions.

SUSTAINABILITY RISKSAND OPPORTUNITIESVerification and Tracking Mechanisms• Responsible/Grievance Unit: "Environmental Group" under

the Sustainable Development Committee• Internal carbon pricing system• TCFD performance assessment• Public commitments by significant suppliers to the net-zerogoal with CHT• External verification: ISO 14064-1 Greenhouse Gases verification• Responsible/Grievance Unit: Supply Department• CDP Supply Chain Program• Second-party audit by a third party• Sustainability Partner Rating System

Verification and Tracking Mechanisms• Responsible/Grievance Unit: Organization and Talent Development
Department• Labor-management conference• Appeal Review Committee to handle matters of discrimination, harassment, or unfair treatment• 1 seat of labor director on the Board of Directors• Responsible/Grievance unit: Chief Information Security Officer (CISO)• Performance of cybersecurity and privacy risk management incorpo-

rated into the tracking by the Risk Management Committee monthly
and reported to the Board of Directors annually• Third-party conformity verification for "Privacy Policy" yearly• International management system certification and audit• Performance measurement and rewards/punishments: Cybersecurity and privacy protection included as part of the performance appraisal for all employees• Carbon Label for Services from EPA Taiwan• FSC certification (shopping bag)
• Electromagnetic radiation testing service: +886 800 580 010

PUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

Goal• 2023: Procurement of 69 million kWh ofrenewable energy• 2030: 50% carbon reduction, IDCs 100%on renewable energy, and 22.5% carbon reduction in the supply chain• 2050: Goal of Net Zero Emissions• 2030: 100% of significant supplierscertified to "CHT Sustainability Partner
Rating"Goal• 0 incident involving human rights or dis-

crimination violation• 2023: promotion of Women's Power Star
Program• Maintaining 0 incident involving major cybersecurity or personal data breach• Maintaining validity of certificates

Progress in 2022
• Carbon emissions reduced by 9.6% compared with the base year of 2020

• IDCs usage 9.2% on renewable energy• 56% of suppliers responded to the CDP questionnaire of Chunghwa Telecom• Sustainable Partner Rating: cumulative 45
partners with Gold-tier Certificates• A collective commitment with 35 significant
suppliers to attain the goal of Net Zero by 2050

Progress in 2022

• More than 30% of female employees receiving
transfer training• "The World's Top Female-Friendly Companies
2022" by Forbes• Employees with disabilities: 3.39 times higher
than the statutory standard• No incident of personal data breach• 2025: 1% annual growth in revenue fromgreen products and services• 2030: Green products and services account- • Revenue from green products in total revenue
ing for 20% of total revenue
from products sold: 14.17%• Maintaining the specific absorption rate • Green
stores: 447 regular stores(SAR) of electromagnetic energy in compli•
Free electromagnetic radiation testing cases:
ance with the NCC regulations
103 cases• 100% promotional information of products
and services in compliance with laws andregulations

Verification and Tracking Mechanisms• Responsible/Grievance Unit: Organization and Talent Development

Goal

Department• Remuneration clawback mechanism• 1 seat of labor director on the Board of Directors

2025: 30% of high-level variable compensation linked with ESG performance• Responsible / Grievance Unit: Supply Department• ISO 20400 Sustainable Procurement – Guidance as the reference

2035: The green procurement amount accounting for over 50% of total procurement• Responsible/Grievance Unit: Organization and Talent Development Department• Reward/Punishment system: the ethical management policy
integrated with employee performance appraisal and humanresources policy• "Code of Conduct" verified by third party for conformity verification yearly• Maintaining zero corruption• Ongoing obtainment Certificate of Con-

formity with independent verification by
SGS-Taiwan for "Code of Conduct"

Progress in 2022

• The entry-level salary was 1 time to that in
Taiwan; the average salary was 3 times theentry-level salary in Taiwan.
• 10% of the high-level variable compensation
was linked with ESG performance.

• Green procurement: NT$17,605 million• Green procurement amount in the total procurement: 28.67%• Domestic procurement: 97%• Zero incident of corruption• Statement of CoC Conformity for "Code of Conduct" from SGS-Taiwan for 4 consecutive years

47

CORPORATEOVERVIEW

Process for Determining Material Topics 40

SUSTAINABILITY VALUESTRATEGY

2022 Material Topics and Impacts 42

Stakeholders Engagement

MATERIAL TOPICS
AND IMPACTS

Stakeholders Engagement 48

SUSTAINABILITY RISKSAND OPPORTUNITIESPUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

Identifying key stakeholders and relevant issues is the core work in implementing corporate sustainability. In the kick-off meetingof ESG report preparation, we invite members from all departments to exchange the opinions of issues related to current key
stakeholders and their concerns. Upon reaching mutual understanding, the result is incorporated into a table that is regarded
as an essential reference for the disclosures in the report. In the process of promoting sustainable activities and information
disclosure, we consult the opinion of the internal and external stakeholders, important relevant mechanisms include:• "Consultation meeting with external professionals" for ESG report• Nonperiodic invitation of external professionals to the "ESG Conference" and relevant forums• The "ESG Supplier Conference" is held every year

• Sustainable Development Committee established to coordinate internally to promote ESG-related development projects• Specialists designated for CHT Foundation to facilitate NGO and NPO exchanges• CHT was the first to create "ESG videos" and the CHT official YouTube ESG program to record the implementation of ESG action
on a regular basis, as well as the collection of internal and external feedback for further improvement* ESG Video link
Stakeholder

Shareholders /Investors

Employees

Clients / Customers

Suppliers

48

CHT Stakeholder Engagement Guidelines:

Meaning toChunghwa Telecom
As shareholders / investors
are our stockholders, wemust be accountable tothem.

Employees are critical to thesustainable development
and they are the driving force
for sustainable growth.

* Guideline

Focused Topics• Economic

Performance• Anti-corruption• Market Presence• Anti-corruption• Labor/Management
Relations• Gender equality, Nondiscrimination• Diversity and Equal
Opportunity• Occupational Health and
SafetyOnly when customers prefer
the products and services of
Chunghwa Telecom could wehave value for existence.
The large product and service
chain of Chunghwa Telecom
relies on the stable supportof the suppliers.

• Customer Privacy• Marketing and Labelling• Environmental Compliance• Energy* Channel* 2022 Results

Communication Communication
ChannelFrequency• Shareholders'meeting• Shareholder hotline/
mail• Earning results
conference• E-mail• Telephone call
• Online forum• Labor employer
meeting• Negotiation meeting• Service hotline• Customer service
center

• E-mail• Hotline• ESG SupplierConference• Supplier Training• Survey• Annually• Real-time• Quarterly• Nonperiodic• Real-time• Every 2
months• Nonperiodic• Real-time• Real-time• Annually• Nonperiodic

Stakeholder

Communities /NPOsMedia /
Accreditation
Institutes

Competent
Authorities

Competitors

Meaning toChunghwa Telecom
We wish to reciprocate forsociety with our professional
standing in telecom andcreate a better future.
We have learned andgrown with the media andaccreditation institutes
through their mentorship insustainable development.

Our products, services andrelated marketing behaviors
are subject to audits by thecompetent authority.

As the leading brand in thetelecom industry in Taiwan,
we strive to engage in faircompetition in the industry
for a healthy development of
the industry.

Focused Topics

Communication
ChannelCommunication
Frequency• Environmental Compliance• Socioeconomic Compliance• E-mail• Hotline• Stakeholder forum• Real-time• Nonperiodic• Energy• Anti-corruption• Economic Performance• E-mail• Hotline• Press release• Press conference• Survey• Real-time• Nonperiodic• Environmental Compliance• Socioeconomic Compliance• Occupational Health and• Public hearing / press
conference• Marketing and Labelling• Labor / Management• E-mail• Official document• Meeting• Telephone call
• Visit• Market Presence• Marketing and Labelling• Official document• Meeting• Telephone call

SafetyRelations• Anti-corruption• Real-time• Nonperiodic• Real-time• Nonperiodic

49

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

PUBLIC POLICYPARTICIPATION

2022 ESG Results of Critical Stakeholders Engagement

Shareholders / Investors
1 Annual general meeting

576 calls from shareholders answered
4 Earning results conferences

7 NDR and broker investor conferences

Competent Authorities /Government
1,993 appeal and 273 negotiation
meetings completed
417 business inspections

117 visits/teleconferences with investors

Employees

6 Labor-management conferences (to deliberate on 53
proposals)

5 Negotiation meetings (to deliberate on 47 proposals)

39 mails from employees, all of which have been addressedin a timely manner

Clients

Approx. 35.93 million cases served by all channelsof customer service (including the customer service
hotline, customer grievance, call-out care, and textbased customer service chatbot service)
13.03 million tickets received

29.776 million cases of customer business acceptedMedia

325 press releases in total

22 press conferences in total

Competitors

66 conferences attended

Suppliers

56 significant suppliers attended in the Supplier
Sustainable Environmental Visits

117 suppliers participating in the "2022 Annual ESG
Supplier Conference"

2022 Annual ESG Supplier Conference

The 2022 Chunghwa Telecom Annual ESG Supplier Conference, themed with "Net-Zero Partners for Transformation Together,"launched the net-zero initiative "Hand in Hand with Partners for Carbon Reduction Together" in collaboration with the 35
significant suppliers of the Company, to declare 50% cut of carbon emissions in the supply chain of Chunghwa Telecom by2030 and the goal of Net Zero by 2050.

Distinguished guests, including Chairman Eugene Chien of Taiwan Alliance for Net Zero Emission (TANZE) and Taiwan Institutefor Sustainable Energy (TAISE), Secretary-General Tsai Chi Ku of Taiwan Academy of Corporate Sustainability (TACS), and
Deputy General Manager Stephen Pao of SGS-Taiwan, attended the event and witnessed Chunghwa Telecom's cooperation
with supply partners to practice environmental sustainability.

In 2022, "CDP Best Carbon Management Disclosure Award" went to Arcadyan Technology Corporation. "ESG Information
Disclosure Award" was presented to "Potential Electric Co., Ltd., Winking Digital Co., Ltd., and Intumit Inc.

For Chunghwa Telecom Sustainability Partner Rating, a total of 21 companies won the honor of "Gold-tier Certificates." The"Certificates of Sustainability Rating" were presented by President Shui-Yi Kuo. Through the strategy of extensive alliance forsustainability, we guide supplier partners to seize the low-carbon and zero-carbon business opportunities and contribute to
global climate change and the sustainable transformation of the ICT industry.

50

51

CORPORATEOVERVIEW

4SUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY RISKSAND OPPORTUNITIESSUSTAINABILITY RISKSAND OPPORTUNITIESEMERGING RISKS		

55

CLIMATE CHANGE RISKS AND OPPORTUNITIES58

EMERGING OPPORTUNITIES		CYBERSECURITY RISKS		C

The first telecom operator in the world to pass "TCFD Conformity Check"with the highest grade obtained for 3 consecutive years.

CHT is actively looking into the development of renewable energy, selfbuilt or for sale soar energy installation.

Our "Risk Management Committee" adopts Enterprise Risk Management(ERM) software to govern every business decision made by our employees.

52

56
65

The SDGs CHT contributes toin this chapter:

HT places emphasis on the control of the corporate operation andsustainability risk. In 2016, the Company established a Risk Management
Committee with the President as convener and high rank managers as
members. The committee supervises risk management throughout theorganization and is responsible for prioritizing identified risks, formulating
response strategies to key risk issues, and reporting to the board of directors
when deemed necessary. Through control of the mechanism at each level,
potential risks and loss to the Company can be minimized.

TCFD

PUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

The development of the Artificial Intelligence will popularize edge

computing, IoT drones, AR and VR. These emerging industries will propel thedevelopment of hardware and operating systems.

Based on NIST's Cybersecurity Framework (CSF) and domestic andinternational standards and regulations, CHT established the "Chunghwa
Telecom Cybersecurity and Privacy Protection Framework."

53

RGING OPPORTUNITIESCORPORATESUSTAINABILITY VALUE
MATE CHANGE RISKSAND OPPORTUNITIESOVERVIEWSTRATEGY

MATERIAL TOPICS
AND IMPACTSERSECURITY RISKS

Emerging Risks 55

CHT Risk Management Organization Structure
BoD / Audit Committee

Audit Unit

Risk Management Committee

Executive
Secretariat

Risk Management Managing Unit

Organizational
AspectStrategic Aspect
Management

Assessment Tool

Audit Aspect

Feedback andImprovement

Implementation
Results
in 2022

54

Emerging Opportunities 56

Description• "Risk Management Committee" was established in 2016, which convenes committee meeting regularly,
presents execution report monthly, reports the operation to the Board of Directors quarterly, and reports
to the Audit Committee and Board of Directors on material risk events.

• Risk policies and framework stipulated by the Board of Directors.
• "Risk Management Policy" and "Directions Governing the Risk Management Operation" as the bases for
all personnel's reference in conducting business.

• The Enterprise Risk Management (ERM) system was established for the regular control of the risks, andwe track it on a rolling basis.

Climate Change Risks and Opportunities 58

Emerging Risks

We cooperate closely with our strategic partners in the launch of new services and products that satisfy our customers. We havebecome the Digital Economy Motivator and the Creative Industry Pilot, and we create values for clients, shareholders, employees
and society.

Risk Factor

Countermeasures

Obstacles

Increased bandwidth and user population of competitors that leads to impact to our mobile market share• Strengthen 4G/5G construction, introduce 5G dual band service, and new features, including introduction of 5G NR CA, additionof 4G stations, and ongoing improvement to network coverage and capacity.
• Establish the network advantage of "Always Broadband Connected" with triple networks of mobile networks, optical networks,
and Wi-Fi services combined to boost the QoE of users.

Risk Factor• Risk status is followed up monthly and reported to the Risk Management Committee convener and the
Audit Department.
• The Risk Management Committee (in addition to the committee members, the Chief Audit Executive ispresent) convenes regularly as well as reports to the Audit Committee and the Board of Directors.
• The Committee improves the current risk management mechanism based on Risk Management
Committee, Audit Committee and Board of Directors' decision to ensure the process is up to date andsatisfies the operational need.

Risk Factor• 3 meeting were convened with focuses on the enterprise-level risks tied with the objectives in thebusiness plans and deliberations on directions of material risk topics.
• Reported to the Audit Committee twice and to the Board of Directors four times on theimplementation of risk management.

Potential Influences

Risk Avoidance and Opportunity Seizure

Twists in the energy transition for
the net-zero emissions policy• Risk Management Committee promotes implementation of risk management efforts of the Company
and evaluates performances in risk management.
• The Audit Department reviews the risks and reports to the Board of Directors.
• The management and control results are incorporated as part of the performance appraisal of respective
institutions.

Cybersecurity Risks 65

PUBLIC POLICYPARTICIPATIONCHT continues with advanced technological research and development to take advantage of many business opportunities inthis digital convergence era and reduce operational risk. We absorb, cultivate and make good use of excellent available talent tointegrate Internet and marketing resources.

• We use the Risk Analysis Matrix as our assessment tool to assess operational, strategic, compliance andreporting risks, etc.
• For the major operational items and relative ESG issues, including climate-related risks, we enhance theperformance of sensitivity analysis and the stress test.
• Pursuant to Recommendations of the Task Force on Climate-related Financial Disclosures (referred toas "TCFD Framework" hereinafter), we analyzed the scope of operation, upstream and downstream,
as well as the climate-related risks and opportunities throughout the life cycles of assets in the short-,
mid-, and long-terms.

* For more information about Risk Management, please refer to:

THE CREATIONOF SUSTAINABLE VALUE

Dwindled advantage in the mobile
services market due to the mergerof competitors

Risk Management Executing Unit

Aspects

SUSTAINABILITY RISKSAND OPPORTUNITIESCountermeasures

Potential Influences

Obstacles

It affects the power supply stability

Risk Avoidance and Opportunity Seizure• Strengthen the resiliency of networks to ensure business continuity, e.g. strengthen the emergency backup capacity of networks and IDCs, request Taipower to adopt dual-feeder power supply for critical IDCs, increase the emergency power generation units and batteries installed, phase out old energy-consuming equipment, and introduce low-carbon network equipment, etc.

Impediment to achievement of
the net-zero goal due to the short
supply of renewable energyCountermeasures

Potential Influences

Obstacles

Potential impact on the willingness ofcustomers, and even the international investors and ratings, due to failure of IDCs
to attain the carbon reduction target

Risk Avoidance and Opportunity Seizure• Actively explore for stable and sufficient supplies of renewable energy, obtain the supply of solar power and onshore wind
power first through short-term contracts to wheel power to IDCs for use, and seek signing of long-term CPPA depending on the
progress of the government's development in the sector of offshore wind power.
• Preemptively enter the energy transition industry to reduce risks.

55

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

Emerging Opportunities

MATERIAL TOPICS
AND IMPACTS

Emerging Risks 55

SUSTAINABILITY RISKSAND OPPORTUNITIESEmerging Opportunities 56

THE CREATIONOF SUSTAINABLE VALUE

Climate Change Risks and Opportunities 58

Cybersecurity Risks 65

PUBLIC POLICYPARTICIPATION

The 5G+AIoT technology will drive intelligent technological applications and push corporations in Taiwan to move their businessemphasis. With the advent of Industry 4.0 and the rapid emergence of new online applications, cybersecurity specialists are
issuing warnings regarding the looming threat of multimodal, multifaceted attacks. However, this also creates an opportunity forcompanies that offer an integrated cybersecurity service package. The government has classified information security as a matterof national security, including it as part of the national defense industry in the 5+2 New and Innovative Industries Policy.

CHT spares no effort in the refinement of cybersecurity technology. In 2017, CHT founded CHT Security, a subsidiary with all 5
service items rated as "A" in the Cyber Security Service Provider Assessment of the Executive Yuan for 4 consecutive years. Asidefrom assisting in the regional joint defense of cybersecurity for 15 counties/cities domestically, it further supports numerous
important entities in the public sector, finance, high-tech manufacturing, medicine, critical infrastructure, etc. in terms ofcybersecurity check and protection.

Opportunity Factor

Potential Business Opportunity

Information
Security
Management

AIoT• Popularization of emerging technological applications as well as diversified
attacks by hackers boost the challenge of protection against cybersecurity
threat while create new opportunities in the cybersecurity area.

• New application opportunities, including net-zero carbon
emissions, metaverse, electric vehicles, etc., present business
opportunities for the development of the IoT industry.

Countermeasures• Gartner pointed out that the global cybersecurity market accounted for approximately 3.32% of the global IT expenditures and rising.
Risk Avoidance and Opportunity Seizure• Create a low-burden, high-standard Advanced Networks Defense system (ANDs) for enterprises, complete the section 2 expansion of DDoS protection, and improve the IPS2.0 intrusion protection quality.

•The Digital Forensics and Cyber Security Testing Center of the subsidiary, CHT Security Co., Ltd., has been certified withthe testing and certification of IoT devices and IEC 62443 CB TESTING LABORATORY (CBTL) in order to build a safer OT
environment.

Development of 5G

Countermeasures

Potential Business Opportunity

Forecast from Qualcomm "The 5G Economy" showsthat 5G technology will result in an output of US$ 134
billion to the companies in Taiwan in 2035.

5G

Risk Avoidance and Opportunity Seizure• Launching "Taiwan 5G Industry Development Alliance - CHT leading team" to jointly promote 5G development, establish
robust 5G operations, research and development, manufacturing, and enhance our 5G sales force.
• Participate in the Asia Silicon Valley Development Plan of the National Development Council to assist in promoting the domestically produced equipment in global market.

56

Risk Avoidance and Opportunity Seizure• In connection with 5G+AIoT innovative technology, the five focused areas, i.e. Smart Building, Smart Transportation, Smart
Security, Smart Energy, and Smart Medicine, are developed together with the industry to build smart IoT solutions and services that are more convenient and safer for the government and enterprises.

• As a managed security service provider (MSSP), we dedicated to the provision of a wide range of cybersecurity solutions.
With the strategy of extensive alliance ,become the leader in the cybersecurity industrial chain integration.

Opportunity Factor• Following the ease-up of the global pandemic and gradual recovery of production demand in the supply chain, the output
value of IoT in Taiwan has exceeded NT$2 trillion in 2022.

• The FSC promulgated "Financial Cyber Security Action Plan" to drive thedemands for cybersecurity protection, monitoring, and joint defense in thefinancial sector.

• The Executive Yuan announced the Cybersecurity Industry Development
Action Plan. The gross output of the industry is expected to exceed NT$ 78
billion dollars by 2025.

Countermeasures

Potential Business Opportunity

AIoT

Opportunity Factor• 5G+AIoT continues to march towards the corporate target of NT$10 billion revenue by 2025.

Opportunity Factor

Climate Change(low carbon
products andservices)

Countermeasures

Potential Business Opportunity• The World Economic Forum (WEF) predicted that of the potential risks in thenext decade, four out of the top five risks are environmental issues, especiallythe "extreme weather."• Businesses around the globe are investing in low carbon emission infrastructure, including green energy, electric automobiles, and smart cities to reducereliance on electricity.
• The bonds issued by green enterprises worldwide in 2021 were up to $416.5
billions' worth, accounting for 3.51% of the corporate bonds issued globallyand rising.

Risk Avoidance and Opportunity Seizure• Green Product and Service Program — we provide energy-saving technology and services.

• We reduce carbon footprints through innovative green services, cloud products, and other technologies.

• We are building a cloud service platform that enables clients to access real time data regarding their energy usage and equipment status so that failures can be predicted and prevented.

• The sustainable development bond was issued. The fund raised shall be directed to green buildings and comprehensive VoIP
for telephone networks , so as to realize the carbon reduction for all via technology.

57

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

Emerging Risks 55

Climate Change Risks and Opportunities

SUSTAINABILITY RISKSAND OPPORTUNITIESEmerging Opportunities 56

THE CREATIONOF SUSTAINABLE VALUE

Climate Change Risks and Opportunities 58

PUBLIC POLICYPARTICIPATION

Cybersecurity Risks 65

Chunghwa Telecom builds a systematic and organized corporate governance structure to ensure that climate change related
challenges are incorporated into the Company's annual strategy in real time and that relevant projects are implemented.

The Supervisory Responsibility of the Board of Directors

The Role of Management

Task Force on Climate-related Financial Disclosures (TCFD)

TargetSetting:

Strategic
Planning:

Solutions:Target setting for the net-zeroemissions, GHG reductions, andclimate resilience improvement of
CHT.

Strengthening the carbon managementcompetencies of the Company and its
supply chain with mitigation and adaptation at the core, along with improvementof climate resilience of the telecom infrastructure and communication equipment, to ensure business continuity.

Proposal of innovative solutions to reduce GHG emissions from itself and theindustrial chain; planning and executionof "Action Plans for Adaptation to Climate
Change in the next 20 Years for Chunghwa Telecom Communication Networks"
to deploy climate change adaptation actions.

The climate change-related risks and opportunities are managed through the dual mechanisms of Sustainable Development
Committee and Risk Management Committee. In addition, with the existing internal control and risk management mechanisms
combined, the links between the climate change topics and the Board of Directors' responsibility in the oversight thereof isstrengthened through the report to the Board of Directors quarterly.

Chunghwa Telecom is the first telecom company in Taiwan to sign on as supporter of the Task Force on Climate-related Financial
Disclosures (TCFD) initiative. The Task Force on Climate-related Financial Disclosures (hereinafter as "TCFD") has been introduced in2019 to conduct analyses of climate risks and opportunities so as to promote works of climate change mitigation and adaptation for
an ongoing reduction of operational risks for the Company and drive the low-carbon transformation in the industrial chain. In 2023,
CHT was certified to the highest grade of TCFD Conformity Check for 3 consecutive years.

* For Chunghwa Telecom TCFD report, please refer to:

For Climate-related Information of TWSE and TPEx Listed Companies, please refer to p.167 of our 2022 ESG report.

58

The "Environmental Group" is set up under the CHT Sustainable Development Committee. Pursuant to the ESG vision and carbon
management strategies laid out by the Board of Directors and the Sustainable Development Committee, in line with the needs ofinternational institutional investors, rating agencies, and key stakeholders, it plans, enforces, and manages execution of various
climate change and carbon management action plans. The relevant mechanisms include:

59

CORPORATEOVERVIEWCHT Climate Change Strategies

Mitigation

SUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

Emerging Risks 55

Emerging Opportunities 56

Risks / Opportunities

Adaptation

Attainment of net-zero emissions is theforemost mission, along with facilitation
to partners, upstream and downstream,
to collectively realize the target of 1.5°C
set in the Paris Agreement.

SUSTAINABILITY RISKSAND OPPORTUNITIES

Improvement of the climate resilience forthe infrastructure and communicationequipment of the Company is the foremost mission to ensure business continuity for the Company.

To analyze the future impacts of climate change on the Company, we employed the TCFD structure, setting a baseline scenario anda 1.5°C scenario to identify and analyze the short-, medium-, and long-term climate risks and opportunities in the business scope of
the Company, the upstream and the downstream, and the entire life cycle of assets. IEA STEPS (baseline scenario) and IEA NZE (1.5°C
scenario) are employed as the climate scenarios for climate mitigation strategies (transition risks). IPCC RCP 8.5 (baseline scenario)
and IPCC RCP 2.6 (1.5°C scenario) are employed as the climate scenarios for climate adaptation strategies (physical risks).

Transition risk

Climate Change Scenarios for "Mitigation and Adaptation"
IEA STEPs• In this scenario, the government sets a net-zeroemission target for 2050, with the base year of 2005. The
carbon reduction target: 10% reduction in 2025, 24% ±1% reduction in 2030, net-zero emissions in 2050, andother policies unchanged.
• The parameters we use are the reduced input costs for
Scope 1 and 2 and assume the financial impact of a
scenario where the achievement of net-zero emissions
is mandatory in the future.

IEA NZE• In this scenario, the government targets for net-zeroemissions by 2050. With the assumption that the
government amends the law and sets the base year as
2020, the carbon reduction target moves up to a 21%
reduction in 2025, a 42% reduction in 2030, and net-zeroemissions in 2050, along with the policies strengthened.
• The parameters we use are the reduced input costs for
Scope 1 and 2 and assume the financial impact of a
scenario where the achievement of net-zero emissions
is mandatory in the future.

Adaptation

CategoryTime• In this scenario, according to the analysis of the"Taiwan Climate Change Projection Information
and Adaptation Knowledge Platform (TCCIP)" of
the Ministry of Science and Technology for extreme
weather events (e.g. typhoons and heavy rains),
the number of typhoons that will invade Taiwan
in the future will decrease, but the percentage ofstrong typhoons will increase, the precipitation
intensity will rise, and the frequency and intensityof torrential rain shall remain on the rise.
• The parameter we use is operating costs, withthe assumption that typhoon is to render loss ofequipment, which will incur costs in repairment.
• In this scenario, countries do not take any
measures, leading to ever-rising temperatures,
exacerbating extreme weather events.
• The parameter we use is operating costs, withthe assumption that typhoon is to render loss ofequipment, which will incur costs in repairment.

We classified risks related to the industry as transition risks and physical risks and established the list of topics of risks andopportunities according to TCFD Directions. The risks fall into categories of policy and legal, technology, market, reputation oftransition risks; acute and chronic of physical risks. Meanwhile, the opportunities are divided into resource efficiency, energy source,
products/services, market, and resilience. Hence, we performed the identification and assessment process with the climate changerisks and opportunities. The process is performed on a yearly basis in principle, covering us and the upstream/downstream as well as
100% the existing and new operating sites and communication equipment around Taiwan.

Opportunity

Issueslongterm✓✓✓• Increased costs for GHG emissions due to thenational policy of Net Zero Emissions• Necessity in the investment in renewable energy
owing to national renewable energy policy• Increased operating costs arising from addition ofother sustainability-related laws and regulations

Technology

✓

✓

✓

• Failure in new technology investment (e.g. atechnology developed not meeting the low-carbon
benefits, rendering failure of the new technology
invested)• Missed involvement in the low-carbon R&D
trend for failure of investment in the low-carbon
transformation technologies

Market✓✓✓• Changes in customer behaviors (e.g. elevatedconsumer awareness for climate change or shift inproduct/service demands)✓✓• Impact to reputation from litigation risks• Impact to reputation due to carbon reduction
performance of suppliers not as expected

Acute

IPCC RCP 8.5

Cybersecurity Risks 65

Mediumterm

Reputation

Physical risk

PUBLIC POLICYPARTICIPATION

shortterm

IPCC RCP 2.6

Climate Risks & Opportunities Assessment

60

Climate Change Risks and Opportunities 58

Policy and Legal

Notes: 1. STEPs: Stated Policies Scenario; 2. NZE: Net Zero Emissions; 3. RCP: Representative Concentration Pathway

Mitigation

THE CREATIONOF SUSTAINABLE VALUE✓

Chronic✓• Damage to facility/equipment due to increased severityof extreme weather events like typhoon or flood• Product supply disruption/delay arising from
impacts to supplier operation and production due
to extreme weather events✓✓• Increased energy consumption due to rising
average temperature• Damage to assets and impact on supplier operationand production arising from long-term changes inclimate environment (e.g. precipitation patterns,
temperature, or sea level)

Resource
efficiency

✓

✓

✓

Sourcesof energy• Decreased operating costs due to use of operationalmodels of higher efficiency

✓

✓

✓

• Reduced GHG emissions by adopting low-carbon
energy sources

Products/
services✓✓✓• Increased income thanks to development and/or addition of low-carbon products and services(adoption of energy conservation measures in the
supply chain included)

Market✓✓✓• Motivated industrial transformation thanks topopularization of emerging technologies like 5G,
IoT, and big data

Resilience

✓

✓

✓

• Reduced impact from physical risks thanks tostrengthened asset resilience

Note: The short-term is 2021-2025; the mid-term is 2026-2030; and the long-term is 2031-2050.

61

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

Emerging Risks 55

SUSTAINABILITY RISKSAND OPPORTUNITIESEmerging Opportunities 56

THE CREATIONOF SUSTAINABLE VALUE

Climate Change Risks and Opportunities 58

PUBLIC POLICYPARTICIPATION

Cybersecurity Risks 65

Material Climate
Risks & Opportunities

RISKS
Risk Impact Summary:• According to the assessment results of climate change risks and opportunities,
among the transition risks, policy and legal risk has the highest weight, making it thematerial risk. In addition, subject to the Climate Change Response Act, companies in
Taiwan are to achieve net-zero emissions by 2050.

Policy andLegal Risks

Risk Responses:• The carbon reduction strategies are (1) improve energy efficiency and (2) use renewable energy. The carbon reduction plansinclude but are not limited to: improve the energy efficiency of IDC equipment, replace aged equipment and repair/optimize
existing equipment and facilities, install and procure renewable energy project sites, procure pure renewable energy, renewableenergy certificates, energy storage equipment development, and other projects and plans.

• In the IEA STEPs scenario, the estimated additional expenditures in 2025, 2030, 2040,• According to the results of the carbon inventory, the Scope 1 and 2 GHG emissions in 2022 are 714,098 t-CO2e, with a carbon

Risk Impact Summary:• According to the assessment results of climate change risks and opportunities, among
the physical risks, the acute risk has the highest weight, making it the material risk.

• Formulate short-, medium-, and long-term climate change adaptation plans, and prepare budgets each year in line with theand 2050 are NT$650 million, NT$3.945 billion, NT$8.393 billion, and NT$2.045 billion, respectively. In the IEA NZE scenario, the estimated additional expenditures in
2025, 2030, 2040, and 2050 are NT$1.447 billion, NT$7.891 billion, NT$6.398 billion,
and NT$3.050 billion, respectively.

reduction of 9.6% compared with the base year (2020). In the future, we shall continue to carry out comprehensive energy conservation and carbon reduction works on technology and personnel behavior to manage the possible impacts from such risk.

RISKS• According to IPCC's estimates and Taiwan's TCCIP information, landslides caused byAcute Risks

precipitation at the intensity of typhoon may damage to assets of operating sites,
IDCs, and base station assets of Chunghwa Telecom. Based on the assessment results, in the RCP 8.5 and RCP 2.6 climate scenarios, the potential financial impact of astrong typhoon on Chunghwa Telecom will amount to a minimum of NT$149 million
per year.

Risk Responses:

work progresses of the climate change adaptation plans.

• The climate change adaptation plans involve works either in the short, medium, or long term, including:
1. Flood/Disaster Prevention Action Plan for IDC Telecom Equipment and Building Facilities
2. Adaptation Action Plan for Line Facilities in Response to Climate Change
3. Adaptation Action plan for Telecom Base Station Networks in Response to Climate Change

OPPORTUNITIESOpportunity Impact Summary:• According to the international organization, Statista, the income from the IDC mar-ket is projected to reach $342.1 billion in 2023, with the market scale to be $410.4
billion in 2027.

Sourcesof energy
62• In view of the fact that all countries and key international customers have set

Opportunity Responses:• Assuming that the Compound Annual Growth Rate (CAGR) of revenue is 4.66%, in• Actively deploy renewable energy, including installation and procurement of renewable energy project sites, pure renew-

net-zero targets, in the IEA STEPs and IEA NZE climate scenarios, we can realize thegrowth of IDC business through the target of 100% IDCs on renewable energy by2030.
the duration of 2023 and 2027, we expect the revenue from IDCs will increase by
NT$1.5 billion by 2027.

• After estimation of the demand for renewable energy from IDCs and calculation of theactual costs in renewable energy procurement, it is projected that the net profit willgrow by approximately NT$1.2 billion by 2027.

• By improving energy efficiency and reducing power consumption from the source, projects include but are not limited

to: improve the energy efficiency of IDC equipment, replace aged equipment and repair/optimize existing equipment andfacilities, etc.

able energy procurement, renewable energy certificates, energy storage equipment development, and other projects togradually elevate the percentage of renewable energy use.

63

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

Emerging Risks 55

Greenhouse Gas Emissions Management

SUSTAINABILITY RISKSAND OPPORTUNITIESEmerging Opportunities 56

THE CREATIONOF SUSTAINABLE VALUE

Climate Change Risks and Opportunities 58

Cybersecurity Risks

PUBLIC POLICYPARTICIPATION

Cybersecurity Risks 65

Driven by the Industry 4.0 development and emerging network applied technologies (e.g. 5G application, softwareization,
virtualization/cloudification, and IoT), cybersecurity threats have evolved into multi-faceted mixed attacks that increase
challenges for enterprises in cybersecurity management.
We continue to study and analyze measures for risk protection, align ourselves with international cybersecurity standards, andestablish the joint defense mechanisms with governments and international cybersecurity organizations, effectively enhancing
the overall cybersecurity defense and response capabilities of the Company. Furthermore, we are actively developing key
information technology and strengthening supply chain security, which offer secured, reliable digital environment to ourcustomers.

Unit: t-CO2e

2020

22,192.93

Direct emissions (Category 1)

2021

768,128.07

Indirect emissions (Category 2)

Total emissions (Category 1+ Category 2)
Percentage of category in revenue

17,887.47

19,185.32

716,979.26

694,912.72

790,321.00

734,866.73

714,098.04

100%

100%

100%

3.8

Emission Intensity (t-CO2e/NT$ in million)

2022

3.5

3.3

Notes: 1. Indirect emissions (Category 2) are measured on a location-based method.
2. Category 1 emissions increased by about 7.26% in 2022 compared to 2021 levels mainly due to refrigerant replacement.
3. The decrease of total emission in 2022 shows that the switch from PSTN to SVG, the power consumption optimization which does notaffect the network operation, the replacement of old access and high energy consumption base equipment, and reduction of IDC PUE.
4. The telecom industry we belong to has no emissions of ozone-depleting substances or other major gases.

Scope 3 Inventory and Verification

Upstream
Category

3

Upstream transportationand distribution
646.60Downstream transportationand distribution
901.86

Business travel
1,174.65

Employee commuting
10,203.88

Category

Emissions (t-CO2e)

Downstream

4

Purchased goods and services

Category

Capital goods

460,657.59

752,416.69
344,733.39

Fuel- and energy-related activities
124,456.91

Waste generated in operations
943.59

Upstream leased assets
13,045.93

Total

1,828,060.88

5

Use of sold products
End-of-life treatmentof sold products
1,403.50

Downstream leased assets
115,519.72

Investments
1,956.57

Note: The Scope 3 inventory was expanded in 2022. The carbon emissions generated by products on consignment at the stores (including
CPE, mobile phones, tablets, etc.) belonging to Scope 3 categories include (1.) purchased goods and services, (4.) upstream transportationand distribution, (9.) downstream transportation and distribution, (11.) use of sold products, and (12.) end-of-life treatment of soldproducts, totaled 305,676.97 metric tons.

64

Corresponding Strategies

Aiming to achieve the cybersecurity vision of "establishing the most valuable, secure, reliable, and trustworthy telecom service
provider that meets international standards," we implement "Cybersecurity Policy" and "Privacy Policy" right from the start.
Pursuant to the spirit of ISO 27001 Information Security Management System, we achieve the goal of "zero tolerance" for bothmajor cybersecurity breach and privacy incidents.

In addition, to ensure the security of "ICT systems" and "critical infrastructure," with reference to the NIST Cybersecurity Framework(CSF) and in pursuance of the standards and regulations, domestically and internationally, we established "Cybersecurity andPrivacy Protection Risk Management Framework" to put in place specific and effective measures for cybersecurity and privacy
protection so as to prevent any potential cybersecurity risk.
Our performance of cybersecurity and privacy risk management has been incorporated into the regularly tracking by the Risk
Management Committee for management. Any material risk issue will be submitted to the Audit Committee or directly reported
to the Board of Directors. There was no business impact or penalty arising from cybersecurity or privacy breach as of 2022.
"Cybersecurity Insurance - Data Protection Insurance" has been purchased to protect the rights of customers and investors.

65

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

Opportunities and Actions

MATERIAL TOPICS
AND IMPACTS

Emerging Risks 55

With the goal of "Attention & Implementation of Cybersecurity by All," we have incorporated "Information Security" in the KPIs
for employees. Also, we regularly conduct internal/external audits and have passed inspections by competent authorities. At
present, all of the IT infrastructures of Chunghwa Telecom are 100% certified to international cybersecurity standards (ISO 27001 /ISO 27011 / ISO 27017 / ISO 27018 / BS 10012 / CSA STAR Certifications).

For more information of the specific measures for cybersecurity and privacy protection, including Diversity and Defense-in-Depth
for cybersecurity protection and management, intelligent security operation center, and cybersecurity threat detection andwarning, critical infrastructure and ICT system Business continuity management, real-time incident report and rapid response
mechanism, third-party vulnerability analysis and cybersecurity health diagnosis.

* For more information of cybersecurity and privacy policy, please refer to:

Cybersecurity Management Strategy and Structure

1

To ensure an effective operation of cybersecurity management, "Cybersecurity andPrivacy Protection Management Committee" has been
established at Chunghwa Telecom. A SEVP represents as
the Chief Information Security Officer (CISO), dedicatedto the supervision of mattersconcerning the Company's
internal cybersecurity.

2

Meetings of "Cybersecurity Working Group" and "Privacy Protection Working Group" are held regularly to review appropriatenessof the policy directions; oversee and assessment the complianceand effectiveness of management measures; and report to theBoard of Directors.

SUSTAINABILITY RISKSAND OPPORTUNITIESEmerging Opportunities 56

PUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUE

Climate Change Risks and Opportunities 58

Cybersecurity Risks 65

Creation of the Most Valuable, Secure, and Reliable Digital
Environment• In the face of the increasing cybersecurity threat arising from geopolitics, Chunghwa Telecom actively responds to thegovernment's policy of "information security is national security," allocating huge resources and cultivate cybersecurity
talents and strengthening the cybersecurity resilience of critical infrastructure.
• Construct a smart cybersecurity monitoring platform, which successfully blocks approximately 20 million external
attacks on a monthly basis, and work with C-ISAC, the national cybersecurity organization, for joint defense. In 2022, weshared 1,921 intelligences to lower the overall risk to hacking for the country and customers.
• Organize "Cybersecurity and Personal Data Protection" education and training and 2 email social engineering drills eachyear, along with requirement for all employees and contractors to 100% complete the training.
• Lay out the cybersecurity function map, design advanced training courses for different levels of managers and work
areas, systematically strengthen employees' ICT security awareness, and comply with relevant regulations.
• In 2022, the advanced "Security Program Development Expert Cultivation Program" was initiated to incentivize
employees to participate in the external security code competition and secure top three in the competition; the new,interactive application security training platform was also introduced to help developers think and write security codeswith a security mindset in order to reduce security vulnerabilities, which is expected to train 200 experts in secure
program development by 2023.

4

3

66

Under the Cybersecurity and Privacy
Protection Management Committee, the"Cybersecurity and Privacy Protection
Executive Committee" and dedicatedunits are instituted in all Business Groups(Laboratories), supervised by the Deputy
Cybersecurity Supervisors of BusinessGroups (Laboratories), to carry out andexercise various works for cybersecurity
and privacy protection.

A department dedicated to ICT security management was approved to be set up toassess with the laws and regulations and technical development for new businesses,
and coordinate matters concerning the companywide cybersecurity policies
and regulations, risk control and management, cybersecurity surveillance andmanagement, education and promotion, efficacy assessment, as well as compliancechecks. The works of cybersecurity management are improved ceaselessly inline with the standards, laws, and regulations at home and abroad to reduce thecorporate cybersecurity risks, offer a safe and reliable digital environment tocustomers.

67

CORPORATEOVERVIEW

5

SUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

The Creation of
Sustainable ValueSUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

THE DIGITAL ECONOMY MOTIVATOR

PUBLIC POLICYPARTICIPATION72

THE CREATIVE INDUSTRY PILOT		 78THE HAPPINESS VALUE PROTECTOR		 82THE GREEN CORPORATION PIONEER		116

THE SOCIAL VALUE GUIDE		136

In addition to the pursuit of operational value and the growth of profit forthe benefit of our stakeholders, we also allocate substantial resources
for the creation of sustainable value. The approach to this is five-fold:capital investment, strategy formulation, action plan, regular follow-up andperformance reviews. We take all the necessary steps to ensure that each
investment input has a proper sustainability result.

CHT is the first telecom company to institute sustainable supply chain

CHT is the only telecom company in Taiwan to have a labor union.

management:•Working with the Sustainable Alliance for Low-carbon Economy (SALcE) to audit andissue sustainability labels.
•The first in the telecom industry to join the Carbon Disclosure Project (CDP) in aneffort to establish a sustainable supply chain.

68

IoT

CHT develops an IoT (Internet of Things) platform that integrates five major

ESG

CHT integrates the ESG strategies with the business plan fully, piloting smart

5I

services— information security, big data, cloud computing, artificial
intelligence (AI), and augmented reality (AR).

living and facilitating sustainable development with the service philosophies of"green low-carbon, digital transformation, integrity and transparency."

CHT proposed"5I SDGs" —iHelping, iSharing, iLearning, iTechnology, iProtecting—Taiwan's first sustainable initiative that corresponds with the UN's Sustainable
Development Goals (SDGs).

CHT is the first telecom operator to launch 5G services.

1

NO.

CHT is the first mobile network operator to receive ISO 45001 certification.

69

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

Impact on Value Creation• To ensure eligibility for licensing (e.g., the 5G
bands)• Provides sufficient financial resources tosupport value creation

Financial• Effective execution of commercial activities• Generation and allocation of other forms ofcapital, such as distribution of shareholder
equity, investments, and capital expenditure

Impact on Value Creation• Telecom knowledge and skills acquiredby employees• Human capital represents one of our ma-

Humanjor operational costs• Contribution to the government in
the form of tax revenue• Supports the development of network infrastructure• Improves the quality of telecom
services

Resource Allocated to
Sustain Value Creation• Introduction to compensation andincentive schemes to attract andretain talent• Encourage high value-adding services and innovations
programs• Licensing, laboratory and R&D expenses,
and the acquisition and development ofindustry technologies• Investment to maintain the brand70

Resource Allocated to
Sustain Value Creation• Talent training and development

Impact on Value Creation

Intellectual

MATERIAL TOPICS
AND IMPACTS

Resource Allocated to
Sustain Value Creation

SUSTAINABILITY RISKSAND OPPORTUNITIESImpact on Value Creation

THE CREATIONOF SUSTAINABLE VALUE

Resource Allocated to
Sustain Value Creation• Allocate financial capital to devel-• Ongoing new construction, main-

Center (IDC) and the installationof wireless facilities and development of software and applications• Procurement control and the acquisi-

op and maintain facilities• Operation of the Internet Datatenance, and operation of network
equipmenttion of more cost/energy efficient network equipment• Consolidation of idle space and therecycling and disposal of obsolete
equipment

Impact on Value Creation• Regular contact with the relevant

authorities to ensure the conformance and legitimacy of the operations and competition• Positive feedback from consumers

and the general public helps build
credibility of the Chunghwa Telecom brand, and minimizes financial outlay

Impact on Value Creation• Engage with stakeholders actively tomake them better understand of theCompany operations• Engage in social activities to exert influence through core activities to minimize the digital divide• Purchase products that are environ-• Investment in the R&D of new• The use of energy-saving process-• Use carbon management to minimize

technologies and the setting of
new protocols

es and solutions can effectively
reduce the consumption of natural
capitalSocialResource Allocated to
Sustain Value Creation• Natural capital such as infrastructure, raw materials, and energy
sources are needed to allocate andtake advantage of human capital

Production

Resource Allocated to
Sustain Value Creation• Ongoing investment in R&D, construction, and services, and maintain service quality and customer
satisfaction

PUBLIC POLICYPARTICIPATION

mental and friendly to reduce consumption of natural resources andraise energy efficiency

energy consumption and apply renewable energy solutions to a greater
extent• Focus on the development of renew-

able energy sources, by proprietaryand commissioned Photovoltaic systems

Natural71

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

The Digital
Economy Motivator

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

Strategy

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

SMARTI• We have enhanced the core business, andactively develop and research new products.
Upholding"Core-based,
Emerging-business-oriented, Customer-centric, Constitution Transformation, and Extensive Alliance,"
we ensure development of ESG and sustainability, becoming the leader in smart living andthe agent of digital economy empowerment.

Management

The SDGs CHT contributes toin this section• ICT technologies combine with the characteristics of 5G with high speed, low delay andlarge connectivity, the new ecological chainof 5G industry will be jointly built through thealliance of industrial innovation technologies
at home and abroad.

Action• CHT is the first telecom operator to launch 5G
services.

• We are the first telecom operator that obtained
dual certifications in "the regulatory standards
for the testing of 5G NR" from the NCC.
• We have developed an IoT application platformusing our own innovative technology.

• Cross-border development: AI, IoT, AR/VR/MR,
video streaming and self-driving cars.
• Certificate of Conformity for Privacy Policy
issued by SGS

ICT Products and Services

Chunghwa Telecom has been developing ICT services across borders and smart applications that integrate with networks
in the cloud. Seasoned with rich industrial service experiences and the alliance at home and abroad for the industry's
innovative technologies, CHT built an emerging ecological chain of 5G industries. Together with global cloud service
providers AWS, Azure and Google to offer world-class professional cloud services, CHT successfully facilitates enterprises
in building cloud environments for corporate operation with higher degrees of safety, efficiency, and flexibility.

72

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Response

5G consumer applications p.75-77

TargetShort-term:• We have initiated an "customer-centric" organizational structure to build the next-generation
cloudbased intelligent networks and present
innovative products and applications via extensive alliances with an aim to become the Leader
in Smart Living and Agent of Digital Economy
Empowerment.
Mid- and Long-term:• Penetration rate of 5G users reaches 30 %• Over 16,000 5G base stations• Fostering 3 emerging businesses worth tensof billions of NTD

Indicator

GRI 2,578 patents accumulated

CHT NT$3.77 billion of investment in R&D
CHT 1,157 R&D employees

5G gave rise to the development of smart application service industry. Constructing the 5G
ecological chain together with domestic and international companies to build 13 vertical markets
across 7 categories, endeavoring to offer competitive solutions through a better integration of the
hardware strengths in the industry and the software energy of telecom services.

* For more 5G Vertical Applications:73

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Smart port with inspection innovation to put personnel at ease:the first 5G smart port unmanned vehicle integrated application test site in Taiwan• Through the integration of group resources and the partnership with the port company to build the Port of Keelung
into a domestic smart port. With drones, unmanned vessels, and underwater maritime robots introduced, combinedwith the 5G private network, AI smart analytics, and the smart UTM monitoring platform, the well-rounded solutions
are available to improve the efficiency of seaport inspection.
• The innovative application won the "Smart Places Project of the Year" (the only winner in Taiwan) of 2022 Asia
Communication Awards and the "2023 Smart City Innovative Applications Awards."

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

5G Consumer Applications

Medicine

Collaboration with Taichung Veterans General Hospital for Free Clinic via Telemedicine

Chunghwa Telecom joined hands with Taichung
Veterans General Hospital to apply the 5G private
network to free clinic via telemedicine. The highresolution images are sent to the high-speed
intelligent audio-visual collaboration platform of theTaichung Veterans General Hospital. As an auxiliary
tool of telemedical consultation for rural areas, itenables real-time connection to the medical team at
the hospital for treatment consultation, benefiting thepeople with relatively scarce medical resources andbridging the access to medical services in rural areas.

Entertainment

Lantern Festival Rave! Chunghwa Telecom Debuts the 4D Omnidirectional AR Service in Taiwan

The Main Lantern of the 2022 Taiwan Lantern Festival, "Blessings in the Brilliant Flight of the Phoenix" was lit up in at Weiwuying,
Kaohsiung City. Leveraging the characteristic of ultra-fast network speed of 5G technology, Chunghwa Telecom debuted the 4D
omnidirectional AR services in Taiwan. 20 high-speed cameras were set up for motion capturing. With the real-time video stitching
technology, a 4D environment of special effect was born to capture the marvelous moments of consumers standing out from 2D.
Smart manufacturing to promote digital transformation of industries:
the first 5G private network demonstration site for the PCB industry in Taiwan• The private network of Chunghwa Telecom is combined with smart manufacturing application to provide the innovative
service model of "rent-to-own" to accelerate the 5G private network services in the electronics manufacturing industry as
well as elevating the competitiveness of the domestic O-RAN equipment via the trial in the domestic manufacturing arena.

The New Future of 5G MR Multimedia Entertainment Industry

We worked with Sanlih Entertainment Television on the "5G MR Interactive Concert Integration and Development" project,presenting the concert live offline and online with virtuality and reality intertwined via signals of 5G technology. The 5G technology
was fused with the concert at Legacy. The space was connected, and technology was introduced, to give birth to the innovative formof music performance, teleporting us to a new realm of metaverse in 5G mixed reality.

• The 5G private network applications are introduced into the PCB industry to remedy the pain point of unstablenetwork connectivity, effectively provide a stable network environment, and solve the costs of frequent adjustment toproduction lines and challenges in hardware connection owing to process requirements.

74

75

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Transportation

Elderly Care for a Happy Living in Pingtung

Through the smart technology "Pingtung Well-being D+ Card," the anti-lost positioning services, emergency rescue, and IoT
independent health management services for the elderly are available at the first demonstration community of anti-lost services
in Taiwan established at Sishih Village, Zhutian Township, Pingtung County. The application was recognized by the 2020 Smart
City Outstanding Contribution Award - Smart Health as well as the "First Place, Elderly-Friendly Group," Annual Corporate Social
Responsibility & ESG Award by Global Views Monthly.

Smart Vehicle Road Cloud Service

The ICT technology is leveraged for application of innovative 5G services to smart transportation, transforming the base stations of
Chunghwa Telecom into the Internet of Vehicles (IoV) and vehicle detectors, so as to provide priority signal services for emergency
vehicles. In addition, the CVP big data of telecom services is employed to detect flow of turning vehicles and travel time atintersections. Hence, the signal system is optimized, with the travel speed of road users during peak hours elevated. The application
was recognized by the "Service Innovation Award in the Evaluation of 5G Smart Transportation Subsidy Program of the Ministry ofTransportation and Communications."

Education

5G Technology to Unveil a New Look for the Cultural Exhibition Sector

Chunghwa Telecom worked with the Gold Museum to present the "5G XR Experience for Guided Tour" service. With technologicalinnovation and interactive showcase as well as through the two major experiences of "Venture into the Mine VR Experience" and"Immersive Projection – The Golden Days," the virtual guided tour service to the mine is created. With that, the true story of the
discovery of a rich gold mine is transformed into an adventurous experience of fantasy.

Housing

The First Smart Green Building for Employee Dormitory at Chunghwa Telecom

Chunghwa Telecom spent nearly NT$300 million to build the employee dormitory with dual label certifications in "Green
Building" and "Smart Building." Also, the highlight services like AI smart home, facial recognition, smart parking lot,
IoT sensing, MOD multimedia services, and Intelligent Operation Center (IOC), intuitive building management via BIM,
safety and disaster prevention, and home healthcare were introduced to foster the new generation of high-quality living
environment, integrated with five elements of green, intelligence, health, innovation, and circularity.

Digital Empowerment for SMEs

The small and medium-sized enterprises and microenterprises were supported during the pandemic to survive,
innovate, and thrive. With " CBMP" and "integration ofmultiple media platforms," Chunghwa Telecom improved
the digital competences of SMEs, created their own brands,
and promoted digital tools, empowering the owners withcompetences in smart application and digital economy.
The mobile payment application of "touch-free payment& paperless transaction" was promoted in Yunlin County
to build a smart business environment. Hence, thecompetence of sustainable operation is elevated in the
post-pandemic "digital transformation."

76

77

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

The Creative
Industry Pilot

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Apart from ongoing strengthening of the core telecom business, Chunghwa Telcom also actively invests in innovative ICT R&D tocreate new momentum for revenue growth. With the dedicated innovation and R&D institution, Chunghwa Telecom Laboratories,
we uphold the values of "innovation, accountability, customer-oriented, and integrity." Setting eyes on the developmentof advanced network communication technologies and innovative ICT applications, we transform needs of customers into
convenient and useful services, endeavoring to live up to the value of "customer-centric" to foster the vision.

* Chunghwa Telecom Laboratories

Overview of Chunghwa Telecom Laboratories in 2022

• 1,157 employees (nearly 6% of total) with 89% being R&D personnel.
• The funding for R&D totaled NT$3.77 billion, which was 1.74% of the consolidated operating revenue.
• The laboratories secured 181 new product/ technical patents (173 domestic and 8 overseas) to a total of 2,758 (2,495 domestic and 263 overseas). 914 of the patents are currently in force (822 domestic and 92 overseas).

• Publication of 69 papers on journals (11 internationally and 58 domestically) and 51 papers on conferences (37 internationally and 14 domestically).

The Telecom Laboratories Human Resources Structure

The SDGs CHT contributes toin this section

Number (Ratio)

male

femaleDoctor82 (7.09%)
11 (0.95%)

Master811 (70.10%)
212 (18.32%)

Bachelor

12 (1.04%)
10 (0.86%)

Others2 (0.17%)17 (1.47%)

Innovation + Creativity to Create Sustainable Output Values

We constantly encourage creativity and innovation and adopt strategies of concurrent advancement internally and externally. In
response to the digital convergence and the cultural and creative trend, CHT presents Digital Innovation and Application Series
themed with digital living. We uncover top-notch innovative talents through the competitions while allow creativity to be realized
so as to elevate Taiwan's soft power in innovation.

5G Technology for Azure Sustainability

CHT worked with the unmanned vessel, Marine Vacuum Cleaner, developed by Azure Alliance. With the outstanding 5G
communication capability in speed and low latency, we control remotely and clean efficiently the marine debris.
Thanks to the introduction of 5G technology, Marine Vacuum Cleaner can thus remove marine debris rapidly, serving as
the last line of defense for the environment before waste at the port flowing to open waters, which is also in line with thesustainable development goal in "I Protecting" of Chunghwa Telecom.

Innovative R&D Results in 2022

Taiwan External trade development council (TAITRA)

78

2 gold, 1 silver, and 5 bronze medals secured at the 2022 Taiwan Innotech Expo

Biodiversity: Promotion and Education

In response to the concept of biodiversity, during the New Year's Eve at Taipei 101, in the brand spirit animation of "Foresee
Brilliant Sustainability," the three sustainable navigators, Co-Living Bear, Co-Benefit Whale, and Co-Prosperity Bird were
employed to convey the spirit of sustainability and biodiversity of co-living with nature, co-benefit in connection, and urbanrural co-prosperity. The notion of sustainability was realized into products, services, and living applications to promote andeducate the general public on sustainability.

79

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

FunPark Creative Storytelling Digital Picture Book Contest

Organized for 10 consecutive years, the one-and-only "FunPark Creative Storytelling Digital Picture Book Contest" aimed atdigital content creation for preschool and elementary school students in Taiwan inspires imagination from children for themto boldly showcase their creativity and further use digital tools to create picture books unique to their own.
The "FunPark Little Storyteller" category was added in 2022. Story-telling enabled conversion of text reading into oral
expression skill, cultivating rich imagination and creative thinking in students.

* FunPark Creative Storytelling Digital Picture Book Contest Official Website:

Sustainability Bond to Invest in the Sustainable Industries

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

5G Innovative Application Competition"Chunghwa Telecom 5G Innovative
Application Competition" was organizedcontinuously to inspire teams to develop
more cross-field, new-generation 5G
application ideas.
In 2022, more than 700 participants in
183 teams of students and companies
registered. The entries submitted
mainly fell into categories of smart
inspection, smart manufacturing,smart transportation, and smart video
streaming applications. These entries
not only showcased quality technology
a n d i n n o va t i o n e n e r g y, b u t a l s opresented a high degree of completionas a whole, fully demonstrating thesoft power of Taiwanese talents intechnology.

Biodiversity: Plan of Sports and Tree Planting

The 3-year plan of "Winning Matches, Planting Trees" combines sports with environmental protection. In addition to
supporting the development of outstanding athletes of the country, we also contribute to biodiversity. We cooperate with
the Forestry Bureau. For every victory of the sustainable development ambassador, TAI Tzu Ying, in a badminton game athome or abroad, Chunghwa Telecom shall donate 100 trees. It is estimated that 15,000 trees will be planted for Earth in thethree years to come to put biodiversity protection into practice to safeguard Earth.

The sustainability bond aiming to allocate funds in projects with environmental and social benefits is issued. The green
investment plan categories encompass climate change adaptation (green building construction); energy efficiency
improvement and energy conservation (PSTN system IP equipment replacement). The social benefit investment plan
categories include basic service needs (installation of 5G base stations in rural areas); affordable living infrastructure(broadband construction in rural areas and offshore islands); socioeconomic development and rights protection (EYE Social
Innovative Call Center).

80

81

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

The Happiness
Value Protector

The SDGs CHT contributes toin this section

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

Strategy

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

SMARTI• Promotion of recruitment of talents in various

areas via diversified recruitment channels in thespirit of "one more ounce"• Assurance of rights at work and freedom of association for all employees with the commitment of"employee at ease" to improve the labor-management communication and dialogue mechanisms

Management• Execution of the three-level mechanism of assessment, audit, and coaching for call center customer
service quality• Signing of Employment Contract by all employees

for rigorous compliance with the laws and regulations like the Labor Standards Act and regularorganization of labor-management meetings• Implement the principle of "no layoff and no pay cut"

Action• Promotion of the personal information manager
and auditor certification system• Provision of various, well-rounded, and quality
service channels, online and offline• On-site observation by external consultancy firm
under commission• Dedicated training units and OHS management
units established• Transparent and diverse employee communication and grievance channels• Certificate of Conformity for Corporate Code of
Conduct (CoC) issued by SGS• Diverse benefit packages in place and retention ofyoung talents

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Response• Electromagnetic radiation testing service• The only Taiwanese telecom carrier with an establishedunion• The first telecom carrier in Taiwan to receive ISO 45001
certificate

TargetShort-term:• "Creation of Talent Pool" for smooth succession of
emerging technology talents and core talents• Making personalized high-quality products and services available to all our customers

Mid-term:• 2025: 30% of variable compensation for senior

managers tied with ESG/sustainable development
performance• 2030: Emerging technology workforce reachs 50%

Indicator

CHT One-time special bonus of NT $15,000 for all employees

GRI The base salary at CHT as 1 time of that in Taiwan;
the average salary at CHT as 3 folds of that in Taiwan

GRI Training Hours Per Capita: 57.65 hours
GRI "Collective Agreement" employee coverage of
99.6%

GRI No violation of laws concerns personal informationor product labeling

Ensuring Employees' Happiness
A Competitive Compensation System

82

Chunghwa Telecom has an independent Compensation Committee to oversee the salary determination process. We offer
competitive compensations to talents with potential. Through a transparent remuneration policy, employees are rewarded
in line with the operational performance of the Company. The Company offers equal compensation for all entry-level
employees of the same grade. Those who possess relevant skills and work experience may have compensation evaluatedbased on educational background, career experience, expertise, and professional qualifications. Under no circumstances willcompensation ever be determined by gender or racial differences.

The additional remuneration regulations for the remuneration of senior managers are in place, which directly
links the ESG performance of senior management to variable compensation. In 2022, the linkage ratio is set
at 10%, and the coefficient of linkage factor will be raised year by year to strengthen the linkage between ESG
performance and variable compensation, aiming for the goal of 30% in 2025.

83

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Protecting the Rights of Workers

Chunghwa Telecom treats employees as their most important business partners. To ensure the best protection for the work rightsof the employees, Chunghwa Telecom signs an "Employment Contract" with each employee and undertakes to notify them of any
changes in terms of employment in compliance with the Labor Standards Act. Furthermore, CHT uses several different channels,
including seminars and labor-management meetings, to maintain harmony and a mutually beneficial working relationship with
employees.
Personnel at the Highest Governance Body
(Board of Directors)

Itemmonthly basis in line with the compensation
standard of the Ministry of Transportation andCommunications and with approval by the
Board of Directors.

Fixed Salaryand Variable
Compensation• Variable

compensation: include
bonuses, performance bonuses,
corporate bonuses, etc.

annualspecial• Fixed salary: the monthly salary is paid

on a monthly basis in line with the employee salary table.

• Variable compensation: include annual
bonuses, performance bonuses, special
corporate bonuses, employee compensations, etc.

Separation Payment

The retirement pay is made in line with the retirement pay standard in the "Employees' Pension, Consolation Pay, and Severance Pay Guidelines."

Remuneration
Clawback
Mechanism

In the event of a material risk incident that brings impact to the corporate goodwill or major failure ininternal control, Article 12 of the Standards Governing the Administrative Rewards and Discipline of
Chunghwa Telecom Personnel stipulates that in the event of any malpractice carried out by any employee, CEO included, the reward(s) approved for such employee is to be revoked upon disciplinary
actions as the collected prize amount shall be clawed back in accordance with pertaining regulations.

Retire Benefits

The benefits are offered in line with the existing standards, with no significant different between senior and general employees.

The highest compensation personnel

The Happiness Value Protector 82

Benefits Expense of Full-timeNon-supervisory Employees
Item

Full-time
Employees

Average SalaryMedian Salary

Senior Management• Fixed salary: the monthly salary is paid on a

SUSTAINABILITY RISKSAND OPPORTUNITIES

Unit

PersonNT$
ThousandNT$
Thousand2021

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

2022

YoY

20,322

19,886

-2.1%

1,507

1,548

+2.7%

1,478

1,510

+2.2%

Human Resources Structure at CHTThe Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Notes: 1. The number of full-time employees is calculated on a"yearly average" basis. The total number of employeesof the year (including the ones on leave without pay,
separated, and retired) is subtracted by the number ofmanagers before calculating the yearly average numberof employees of the year based on the months of pay tothe employees in service in a year, instead of based on
the number of employees at the end of a year.
2. The definition of non-supervisory employees excludes
Managers. For the definition of managers, please refer
to p.42-45 of the Annual Report.

In 2022, CHT has more than 20 thousand employees with an average age of more than 50 years old. The total number of retirees
is over 1,500 (accounting for 7.83% of the total workforce). There will be more than 5 thousand employees retiring over the next 5
years, and 50% of the employees will be eligible for retirement over the next 10 years. Current senior management is included inthis retirement tide. In this regard, we proactively initiated diverse talent employment strategy. Aside from recruitment of entrylevel personnel, we also explore elite manpower from elsewhere via external talent acquisition as well as actively carry out talentcultivation and function inheritance actions to enhance our human capital.

All employees, excluding the highest compensation personnel

Total annual compensation
Increase / Decrease Ratio

2.3

Median annual compensation
Increase / Decrease Ratio

Increase / Decrease Ratio

0.46

2022 Base
Salary in
TaiwanNT$ 25,250

84

Base Salary

NT$ 33,730

5.0

Total
annualcompensation

2022

2021

6.45 6.62

Totalannualcompensation

20,067

Average Salaryin the Telecom
Industry

NT$ 75,544

Average Salary
NT$ 71,576

6,004 persons

persons

Permanent Employees 19,999 persons

14,016 persons

5,983 persons

Non-Guaranteed Hours Employees 13 persons

6 persons

7 personsPart-Time Employees 13 persons

6 persons

7 personsTemporary Employees 55 persons

Full-Time Employees 20,054 persons
Notes: 1. Average Salary in the Telecom Industry:
According to the "Monthly Wage andProductivity Report, December 2022"
published by the Directorate Generalof Budget, Accounting, and Statistics.
2. Base Salary of CHT: The average salarylevel in December 2022.

14,063 persons

Total Employees

41 persons

14,057 persons

14 persons

5,997 persons

Notes: 1. The fixed-term contract personnel are "temporary employees," mainly for special projects and industrial-academic collaborative
projects, while the non-fixed contract personnel are "full-time employees."
2. The non-guaranteed hours employees work in the business groups, mainly for the analyses of the Southeast Asian market andsmart solutions.
3. The total number of employees (temporary and non-guaranteed hours employees included).
4. The manpower data are calculated in "head count" and "at the end of the reporting period."85

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

Non-fixed-term Contract Employees

Total
19,999persons=

MATERIAL TOPICS
AND IMPACTS

14,016 persons / 70%

persons / %persons / %7,061 / 35

2,572 / 13

1,146 / 6

Under 30 years old
30~50 years old

5,983 persons / 30%

The Creative Industry Pilot 78

304 / 25,809/ 29

Over 50 years old

3,107 / 15

Notes: 1. The welfare system at the Company mainly applies to the "non-fixed-term contract employees."
2. The employees on leave without pay are excluded from the non-fixed-term contract employees (full-time employees).

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

2022 Employee Turnover

1,575 persons / 7.9 % of all employees< 30 Years Old

29 / 6 persons (2.53% / 1.97%)

30-50 Years Old

103 / 30 persons (1.46 % / 1.17 %)Workers who are Not employees

Under 30 Years Old
30-50 Years Old
Over 50 Years Old
Ratio

Base Salary Ratio
Average Salary Ratio

0
1
31
0.16%
1.10
1.01

Intermediate
Executive

Executive

0
0
8
0.04%

0
0
28
0.14%

1
1

1
0.98

0
1
4
0.025%

Notes: 1. For all grades, basic salary is defined as the fixed salary (monthly).

0
214
1,321
8%

1
1

1.02
1.03

0
69
388
2%
1
1

Entry-level
Employee
1,146
6,846
4,429
62%
0.95
0.94

304
2,502
2,707
28%
1
1

2. For all grades, average salary includes fixed salaries and variable portions (including the monthly salary, year-end bonus, bonus, etc.).
3. Levels of all grades: Basic 0-10; Executive 11-16; Intermediate Executive 17; Senior Executive 18-22.
4. Senior managers (VP or above) are 100% nationals of R.O.C.

333 persons

8.4%

5.6%

77.9%

Age

male

Worker's contractual relationship with CHT

Agency workers; employees to suppliers

The most common types of workers

Type of work

30-50 Years Old> 50 Years Old

34.8%

64.8%

0.4%

36%

978 persons
10%• The types of work are mainly Service and Construction, in which Service includes security,
cleaning, customer service, store services, IDC line maintenance, cybersecurity, as well as
system development and maintenance.

• Construction includes civil engineering, utility and air-conditioning engineering, equipment
engineering, mobile communication engineering, engineering project, etc.

Note: The persons included in the statistics are full-time manpower with 40 work hours per week at the significant suppliers with annualtransaction amount totaled NT$50 million or more.

Human Resource Structure of Honghwa International Subsidiary in 2022

Honghwa

All employees arenationals of R.O.C.

male

Non-fixed Term
547

377

30-50 Years Old

2,447

2,589

Total

3,036

Disabled Employees (weighted)

31/32Over 50 Years Old

femaleIndigenous Employees

4226

femaleFixed Term
0

0

0

13

3,074

1

14

27/33

0

0

108

29

1

0

1

0

Gender Equality and Diversity

6 persons
0.07%

Professional service workers

Under 30 Years Old% of Each Category of Employees< 30 Years Old
526 persons

86

22%

1,166 / 241 persons (20.07 % / 7.76 %)14,247 persons

1,510 persons / 7.6% of total employees

1,177 persons

female> 50 Years Old

Number of workers who are not employees

2022 New Recruitments

Gendermale

Notes: 1. Turnover rate (resigned+retired) =Number of turnover employees/Number of people at the end
2. In 2022, there are 173 employees resigned (0.87% of all employees), and 1,402 employees retired (7.01% of all employees).
3. The turnover rate in 2019-2021 are, 5.76 %, 7.77%, and 8.97% (Number of turnover employees/ [(Number of people at the
beginning + number of people at the end)/2])

Number of Persons by Job Grade and Gender Pay Ratio

Senior Executive
and Higher

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION% of
Each Categoryof Employees

Note: New recruits rate = Number of new employees/Number of people at the end

Resignationof New Recruits

28 persons
1.9% of all new employees

Chunghwa Telecom is committed to implement gender equality and diversity policy, valuing equal pay and impartiality in promotion
opportunities, protecting employees from discrimination, harassment, or unfair treatment due to race, gender, religious belief, age,political inclination, or any condition thereof protected by the pertaining laws and regulations.
In 2022, female staff accounted for 29.92% of the total, and 21.51% of the managers (director level and above) were women. To
conform to the essence of the Gender Equality in the Employment Act, the Company has outlined its sexual harassment prevention
policy and established a "Complain Investigation Committee" that specializes in the handling of employee complaints about workrelated discrimination and improper behavior. The investigation committee has 5 members, 3 of whom are female. Our effective
control has resulted in no incident of discrimination being reported and substantiated through investigation in 2022.

87

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

The Digital Economy Motivator 72

The Creative Industry Pilot 78

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Valuing Gender Equality

1. Our performances in workforce diversity and gender equality have been recognizedby the Gold Award in "Technology R&D" of 2022 Happy Enterprise Awards of 1111
Job Bank and included in the "The World's Top Female-Friendly Companies 2022"
by Forbes as the first among the surveyed companies from Taiwan.

2. Chunghwa Telecom takes measures of two aspects to elevate the importanceof female at work and create a work environment of diversity and inclusivity,
including:• Recruitment: In the process of training for manager recruitment interview,
topics of gender equality are introduced.

• Training: Apart from emphasis on the concept of gender equality, the improvement of leadership function and willingness to promotion are employed to raise
the percentage of female managers gradually. Across the manager training programs like three-grade trainings and talent development programs in 2022, thefemale employees receiving transfer training were maintained at 30% or above.

3. The Women's Power Star Program shall be launched in 2023 in an attempt tofurther implement the ideas of inclusion, equality, and tolerance to create a talentretaining environment.

Emphasis on Underrepresented Populations

We attach great importance to the rights of the underrepresented groups. In recruiting entry-level personnel, the relevant bonus
regulations are in place for the indigenous, individuals with disabilities, and individuals with citizenship registered in remote areas.
We also improve the environment and welfare measures at work to put the concepts of diversity and inclusivity into practice.

• Employees with disabilities: Greatly exceeding the statutory requirement, the number of such employees employed in 2022
is at 3.39 times of the statutory standard (186 persons to be employed required by law; 631 persons employed actually).

• Indigenous employees: A total of 57 indigenous employees were employed in 2022. We respect their cultures and customs
and offer indigenous ceremonial leave in compliance with the laws. There was no violation of the right to work or humanrights.

• LGBTQIA+ employees: Such employees are treated equally in the existing welfare mechanism, regardless of gender identity

thereof. In January 2023, through the special promotion "Talk about Gender Diversity from the Golden Bell Awards," theemployees were able to appreciate and respect diverse gender groups.

Disabled(after moderateand severe weighting)

88

383
+
248
631

Indigenous

37
+
20
57

male

femaleThe Only Telecom Carrier in Taiwan with a Union

Chunghwa Telecom is the only telecom carrier in Taiwan with a union established. We have signed a collective bargaining agreementwith them which covers an extensive range of issues from redundancy, reward, discipline, promotion to health and safety. Thisinitiative not only complies with local laws and international human rights conventions, but is also a show of our commitment to theprotection of employee interests. A labor director is appointed to sit on the Board of Directors for a worker's representative, throughwhom workers can more freely express opinions.
In addition to the union established by Chunghwa Telecom, employees have also assembled 14 other unions under the organization.
Until December 2022, 99.62% of employees were union members. For the employees not covered by the collective agreement, wefollow the consistent labor terms and labor contract regulations per the corporate policy, regardless of the collective agreement
coverage.

Note: The non-fixed-term and fixed-term employees covered by the collective agreement is 99.62%, while the non-fixed-term employees
covered thereby is 99.95%.

Open Communication and Grievance Channels

We have open communication channels in place to ensure that employees needs or suggestions are heard. Any violation or
misconduct in the workplace can be reported to the relevant department using the channels provided. There were 74 complaints
in 2022, including behavior as disrespect of the CHT system, principles, administrative management, and violation of the employee
code of conduct or other misconduct, which were investigated and responded appropriately. There were no human rights relatedcases in 2022.

The whistleblower's identity will be rigorously kept in confidence. The whistleblower will not be subject to unfavorable treatment
such as discharge, demotion or transfer, or salary reduction. An official protection system for anonymous whistleblowers with legal
protection is in place. We hold regular labor-management meetings to ensure labor's rights. There are 9 representatives from eachside, employer and employees. The chair is held by each side in turn. The Chairman and President of Chunghwa Telecom engage
irregularly with the Chairman of the Union, Directors, and Supervisors in meetings, in person and by telephone.
The Chairman of the Chunghwa Telecom Workers Union is entitled to participate in disciplinary review meetings, performanceappraisals, and business report meetings to ensure that workers are kept up to date on Company news. In 2022, the Company held 6
nationwide labor-management meetings during which employees and the employer were able to reach consensus on many issues.
Meetings for the discussion of matters can be convened, or if any change to work conditions is necessary.

The Employee Grievance Channels
CHT intranet portal* http://eip.cht.com.tw

Accountable department Organization and Talent
Development Department, Head Office(Room 503, No. 21-3, Section 1, Xinyi Road, Taipei City 100)

Hotline: 0800-080998
Fax: (02)2357-0007
Email: chthr@cht.com.tw

89

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Focusing on Employee Training and Development

Our fundamental business focus is "core competitiveness, professionalism, efficiency, and touched service", and we seek todevelop innovative talent through a combination of internal and external training.
We have a comprehensive training system to assist employee development in all dimensions. The system starts with theincorporation of "needs analysis" and "in-depth planning" and is followed by performance assessment and review after the
program ends. This systematic approach enhances professional skill and work efficiency, and helps the Company improve its
coordination of human resources. Also, it is connected with the operational benefits of the Company.

Talent Cultivation and Empowerment Program

The CHT Talent Cultivation and Empowerment Program aims to achieve Attraction of new recruits, Growth of employees,
Leadership of managers, Opportunities for talents, and Winning in relay, a.k.a. AGLOW as the cultivation basis.
Different professional courses are designed for employees of various positions from new recruits to current employees. Relevant
trainings are tailored to managers of different levels. Also, accelerated training and development are available for employees withpotential for them to be management candidates.

5G X ABC Employee Digital Empowerment Program

In 2022, we promote "5G X ABC employee Digital Empowerment Program": AI & AR/VR、 Big data & Block chain, Cloud& Cyber Security. By cultivating employees' creativity, assisting in their career development, and the 5G X ABC smart
application, we accelerate the improvement of employees in professionalism and digital competence, in order to meet theneeds of talents for industrial digitalization and intelligent transformation.
The relevant measures include:

1. Global Public Cloud Certification Trainings:• Trainings and certification consultation for AWS, Azure, and GCP organized in 2022 with 57 certificates of global
public cloud services obtained

2. 5G x ABC Professional Program (NT$127 million invested in total as of 2022)• Establishment of industrial ecosphere and innovative applications, with 50 participants passing the certification of
the emerging technology innovation business model and application programs for certification• 2,395 individuals trained in the courses of the 5G Technology Study series for the talent pool necessary for the 5G
development• 12 topical lectures organized, such as "Development Trends of 6G Mobile Wireless Communications" and "Development Trends of Renewable Energy and Wearable Applications," with a total of 901 participants

3. 5G Testing & Training Venues Installed (NT$10 million invested in total as of 2022)• 41 sessions of 5G training courses or seminars organized with activities like training courses and campus visits

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATIONDiverse Learning Channels

To meet the needs of the organization, and the personal interest and even the personality traits of employees, the Telecom Training
Institute provides a diversity of learning channels. These help employees develop new in-depth professional ability. Employees
can attend training at the Telecommunication Training Institute during regular hours, in the evening or on holidays. The institutecan also dispatch tutors to relevant business units for organized training sessions. The institute offers 8 learning channels: classteaching, distance education, digital learning, mobilization digital learning, direct-broadcast courses, external programs, on-sitetutoring, and the digital library.

Dedicated Training Units

Chunghwa Telecom has founded the Telecom Training Institute that specializes in training technical as well as managerial talent. A
Talent Development Team has also been established, with the President as convener, to conduct regular reviews of the planning andoutcome of training. This is important to ensure that the training outcome is closely aligned with the operational policy to achievea "seamless combination of training and practice". It was awarded with "Certificate of Talent Quality-management System (TTQS) –Gold" by the Workforce Development Agency, Ministry of Labor in 2022.

* Chunghwa Telecom Telecommunication Training InstituteSelf-directed Learning with Continuing Education Online

In addition to in-person training, Chunghwa Telecom Training Institute offers ample and diverse online learning resources
for employees to deepen their expertise and improve their management functions, facilitating the growth and careerdevelopment of employees:• Chunghwa Telecom eLearning: Diverse learning modes were available, including in-person courses, full e-learn-

ing courses, and hybrid courses of in-person and e-learning, offering an innovative and learner-centric diversified
e-learning platform. There were 580 new courses available in 2022, with 653,154 employees accessing e-learningand an average satisfaction of 5.68 out of 6 points.

• External online platform – Hahow for Business: The external learning platform Hahow for Business was introduced

in 2022 for employees to deepen their expertise and develop a secondary expertise. In 2022, a total of 2,094 employees participated, registered for 8,869 courses, and completed 4,536 courses, with an average learning time of
4.9 hours per person.

• Manager training with online resources combined: A total of 7 digital learning materials have been procured since2020 for specific management classes or all managers to access for learning, so as to strengthen and improve themanagerial functions and management quality.

• Chunghwa Telecom Learning Community Portal: The curriculum design and course delivery are executed via communities of learning areas/programs to boost the learning effectiveness.

combined for 1,316 participants

90

91

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Cybersecurity Cultivation, Network Security Resiliency,
and National Security Protection

1. Aiming to realize the cybersecurity vision of "establishing the most valuable, secure, reliable, and trustworthy telecom service
provider that meets international standards," Chunghwa Telecom has been designated as a critical infrastructure protection(CIP) exercise unit by the Executive Yuan for 8 consecutive years and recognized as an Outstanding Entity in the National CIP
Exercise for 3 consecutive years.

2. With NT$246 million allocated for the "Cybersecurity and CI Development Program," aside from the cybersecurity and CI professional course series, we developed the cybersecurity learning map and designed the general and professional certification
mechanisms in line with the level of professionalism to actively cultivate cybersecurity talents.

3. The cybersecurity and personal data protection courses were promoted company-wide with 28,912 participants (100% employees and suppliers included) in 2022. The cultivation result highlights:(1) Cybersecurity management courses and certificates: Such as Internal Management Specialist, internal auditor
certificate, and ISO 27001 internal auditor training.
(2) Technical course on cybersecurity: An experiential learning environment "Cybersecurity Hands-on Practice Classroom"
was constructed to simulate the real cyber attack and defense environment, so as to boost the cybersecurity attackand defense capabilities of IT talents, with 260 sessions organized for 20,861 participants in 2022.

(3) Professional course on the national critical infrastructure protection: Implemented the national critical infrastructure(CI) security protection in compliance with the government, and planned and conducted CI-related education andtraining, with 4 sessions organized for 2,523 participants in 2022.

(4) Security code training course: To improve software developers of internal employees, external contractors, andbidders on the ability of security coding, a total of 26 courses were held for 561 participants in 2022.

New Employee Orientation

To provide new recruits with a general understanding of company vision, values and culture and help them adapt to the
new criterions and work environment, the "New Recruit Counseling Guidelines for Chunghwa Telecom and Subordinate
Institutions" was introduced as well as a counselor system and e-Learning audio courses to accelerate the new employees
blended into new work.

Recruitment and Development of the New-Generation Talents

Formulating the golden trinity of Chunghwa Telecom, "Innovation First, Technology First, Talent First", we endeavored todevelop emerging businesses in 5G, IoT, AI, and cybersecurity through the following strategies to actively build a workplace
where young people can excel.

• Recruiting professional talent in ICT, AIoT, 5G application, technology innovation, and other new business opportunities.

• The nurturing of the next-generation talent: The Company introduces new talent-training programs on a yearly basis.
It provides employees with professional and diverse training options, and certifies the development of skill.

• Emerging businesses: In response to innovative information and communication technologies and cross-disciplinary
knowledge integration, we are actively cultivating forward-looking technology service integration professionals.

• Next-Generation Growth Camp: With courses combined with campus experience and challenge activities, participants

could quickly learn about how the 5G technology drives the digital transformational across various vertical markets
and the 5G development strategies of the Company. In 2022, 7 sessions were organized, cultivating 1,059 individuals.

92

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Nurturing of Professional Talents

Chunghwa Telecom is dedicated to providing employees with a diverse learning environment, and combine career development
and learning experience through job rotations, project assignments and overseas assignments. In 2022, Chunghwa Telecom training
expenses exceeded NT$460 million and employee training sessions totaled 1,152 thousand hours. We encourage employees tocommit themselves to long-term learning. We provide a subsidy of up to $30,000 per semester for further studies and an additional
320 hours of offical leave per semester for doctoral students. Subsidies were given to 200 employees in 2022 and the Company
compensation amounted to NT$3.229 million. The subsidy for advanced studies, academic degrees, or certificates is 100% applied
to all employees.
2020

2021

2022

Total Training Expense (NT$ thousand)

493,000

451,380

460,843

Training Per Capita (NT$)

23,55522,29423,043

Total Training Hours

1,045,267

1,148,601

1,152,937

50

57

57

Training Hours Per Capita

Employee Happiness at Work and Engagement Survey

To improve the happiness at work and engagement of employees, we conduct relevant surveys on a regular basis. In addition toprobing into employees' job satisfaction and needs, we propose relevant improvement measures on the basis of the feedbacks to
improve the work environment and sense of happiness of employees.

In 2022, the average employee happiness was 87.32 points, and the engagement was 92.38% (in terms of TOP LEVEL%). The focused
direction of improvement is managerial leadership as well as diversity and tolerance. Relevant mechanisms include organizing
manager communication meetings, offering leadership improvement courses and expert lectures for managers, conducting
diversity employee experience surveys, and planning for programs and measures related to gender equality and diversity. Based on
the survey results, we provide specific responses as well as ongoing communication and improvement in response to the feedbacks
from employees and offer a better work environment and benefits for employees, so as to boost employees' trust and sense ofidentity with the Company and to strengthen our corporate competitiveness and sustainable development capacity.

Fair Evaluation

Chunghwa Telecom now applies "Employees Performance Evaluation Guidelines" which are used in the appraisal of employee
performance to develop the corporate culture where employees, customers, shareholders, and the Company will all be winners.
Supervision will be provided for underperforming employees who will be guided until the appropriate improvement has been madeand they are back on track.
CHT conducts performance appraisal at two levels: general staffs and senior managers. Performance appraisal involves a series offace-to-face discussions between employees and line managers at the beginning of a year to set personal goals, and at years end toevaluate the degree of employee contribution to the Company.

In addition to linking employees' salary bonus to their annual performance, CHT has established a reward of senior employees,
which is payable on a one-year deferred basis and apply to all employees, provided that the employee has a certain standard ofcontinuous service and recent performance appraisal results.

93

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Health and Safety Management

Introduction of ISO 45001 Occupational Health and Safety Management

Chunghwa Telecom was the first telecom service provider in Taiwan to adopt the OHSAS 18001 Occupational Health and
Safety Management System. The employee safety and health management is exercised via "institutional" and "systematic"mechanisms. In 2022, all of our 27 institutions completed the third-party verification to ISO 45001. We shall better our objectives inworkplace safety and health management, "ongoing improvement in safety and health facilities; establishment of a safe, healthy,
comfortable, and friendly working environment; reduction of work-related accidents".

In addition to identifying hazards and assessing the risks associated with telecom operations, the Company has also applied
restrictions and enhanced risk control for high-risk tasks, while taking effective precautions to reduce occupational hazards. In
addition to complying with safety and health regulations, the Company has also been active in the improvement of the current
work environment and takes regular action regarding safety and health facilities and measures.

We actively participate in activities related to healthy workplace. Until 2022, 25 branch institutions (4 were added in 2022) were
presented with the awards of "Heathy Workplace Certification – Health Promotion Label", "Excellent Healthy Workplace," among
others. We support exercises for all and have invested software/hardware resources to promote the trend of exercise at workplace.
In 2022, we were further recognized by Taiwan iSports from the Sports Administration, Ministry of Education.

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Full-Time Physicians and Nurses to Improve Employee's Health Management

To better provide immediate medical assistance and attend to worker health, we engaged 28 full-time nurses and contracted
21 physicians in 2023 for this specific purpose. Also, we set up health service centers at ten locations, offering health services,
consultation, and care.

The contracted doctors help with the on-site inspection at the offices, offer advice in line with human factors engineering for
employees using computers at work, and adjust the heights of computers and chairs. The procurement of office equipment,
besides in conformity to "the materials technical specifications" of the Company, is in compliance with national standards. Also,
we conduct monitoring and keep records of the temperature, humidity, illuminance, noises, indoor air quality (CO2) in the working
environments for our employees to ensure the comfortability and safety of working environments. All the monitoring results in
2022 were in line with the regulations.
Besides full-time physicians, there are 25 sets of workplace health management physiological (blood pressure) measurement
system are deployed in our facilities. Combined with our "Enterprise Healthcare System (EHS) and Personal Health Record," ouremployees can monitor the changes in their blood pressure anytime.

Health Promotions for
Senior Employees

The average of our employees' age is over 50.
The health checkups for the elderly in 2022
promoted autonomous health management
actions from inside out. Apart from physicalexercise, the support system among friends wasestablished through the activities.

• Health checkups: including hearing test,

cervical spine X-ray, macular degenerationof the eyes, coronary artery narrowing andincomplete heart valve closure to ensure asound working of human body.

• Personal health risk assessment andmanagement: Carry out health care andmanagement for high risks, and hazard control, work environment improvement, or
work adjustment and functional training when personnel are found to be unsuitable for specific jobs.

*For more details of GRI 403 and ISO 45001 Occupational Health and Safety Management of Chunghwa Telecom, please refer to
The Dedicated Occupational Health and Safety Management Unit & Broadened Labor Participation

Dedicated occupational health and safety management units are instituted at Chunghwa Telecom and the subordinate institutions
thereof in compliance with the laws. The units are responsible for formulation of occupational health and safety management
plans, promotion of matters such as identification, assessment, and management of hazards in working environment andoperations, implementation of autonomous inspections and environment monitoring of machinery and equipment and before
operation, as well as ongoing improvement to the health and safety facilities to foster a working environment that is safe, healthy,
comfortable, and friendly.
The "Labor Safety and Health Committee" has been established at all CHT institutions with labor representatives accounting for
one third or above of the seats. The committee convenes quarterly to deliberate, coordinate, and advise on matters pertaining tohealth and safety. There is also Labor Safety and Health Department, which is responsible for the planning and implementation oflabor safety and health matters.

The head office's Labor Safety and Health Committee has 12 members, 4 members are from the labor union, accounting for33.34%. 4 meetings were held in 2022 and 17 proposals were presented by the labor representatives, 9 were related to therefinement of safety and health management, and 8 were related to employee benefits. All of the above are solved.

94• Health promotion lectures: CHT established "H channel" health series video-based program, providing employeeswith knowledge and skills for epidemic prevention and healthcare A total of 24,145 employees accessed the program in 2022.

Reducing Occupational Hazards

We actively reduce and minimize occupational hazards via aspects of system, execution, and training.

• System: The incident reporting and handling procedures for occupational hazards and dangers reporting have been stipu-

lated, and hazard identification and risk assessment are enforced. The Chunghwa Telecom Work Accident Guidelines contain detailed procedures for assessing occupational illness. Employees suspected of having become ill as a result of theiroccupation are assisted with an application for verification at the local municipal/county/city authority, in accordance with
the Protecting Workers from Occupational Accidents Act.

• Execution: Source management is implemented, and construction risks are carefully managed. All high-risk operations are

subject to approval by the ICT. Workers are also required to take site pictures with handheld devices and upload them to themonitoring system so that precautionary measures can be identified and taken to prevent such accidents as falls, oxygen
deprivation, etc.

• Training: Necessary occupational health and safety education/training is provided to all workers for work and disasterprevention. we organized 218 training sessions in 2022 and there were 28,569 enrollments.

95

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

The Digital Economy Motivator 72

The Creative Industry Pilot 78

The "eSafe Wizard" AppSUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Health Promotion Activities

The OHS mobile management tool developed on our own, the eSafe Wizard App allows employees and contractors to report
safety violations and apply for operation permits. The App also allows us to remotely perform spot checks on safety compliance,
moving the entire management process onto the cloud. It is completely paperless, instantaneous, and highly effective.

• Through the eSafe Wizard App, the completion rate of permit applications for operations of hot work, work aloft,

Providing a safe and healthy workplace is a basic requirement to our employees. On average, employees spend over a third of
their day in workplace. Hence, apart from a wide range of benefits, including health checkup, keynote speeches, and promotional
activities, we also commit ourselves in the promotion of sports in workplace and for national sport. In 2022, we spent NT$70,911
thousand on employee health care.

scaffolding, power or fire protection interrupted hit 100%, and hazard notification reached 100%.

• The feature of "on-site inspection and automatic check" was newly developed in 2022, for inspection to various
types of construction sites and timely correction of any non-conformity in venue or equipment. Also, the management and audit to multiple sites are executed via centralized control and management to achieve the purpose of
manpower conservation.

• By the end of 2022, it has been promoted and applied to the Network Technology Group, Mobile Service Northern
Branch, Mobile Service Central Branch, and Mobile Service Southern Branch. From 2023 on, it will be gradually extended to other institutions.

Table of Work-related Injuries and Illnesses of Employees and Non-employees in 2022
CHT

Main types of work-related injuries
Number of hours worked (hr)Number of recordable work-related injuries (persons)
Injury Rate(IR)

Recordable work-related injuries rate

Number of fatalities as a result of work-related injury

Fatalities as a result of work-related injury rate

Number of high-consequence work-related injuries(number of fatalities excluded)High-consequence work-related injuries rate (numberof fatalities excluded)

Occupational
Disease Rate(ODR)

Main types of work-related ill health

Number of recordable work-related ill health

Number of fatalities as a result of work-related ill health

Fatalities as a result of work-related ill health rate

On-siteContractors

Traffic accidents,
fall, tumble

Traffic accidents,
fall, tumble

36

10

39,998,000

11,884,000

0.90

0.84

0

0

0

1

0

0.08

None

None

0

0

0

0

0

0

0

0

Notes: 1. Number of hours worked: 8 hr*number of people *number of working days. (calculated on the basis of 250 working days in 2022.)
2. Fatalities as a result of work-related injury rate = (Number of fatalities as a result of work-related injury / Number of hours worked) ×
1,000,000.
3. High-consequence work-related injuries rate (disabled for more than 6 months) = (Number of high-consequence work-related injuries/ Number of hours worked) × 1,000,000.
4. Recordable work-related injuries rate =(Number of recordable work-related injuries / Number of hours worked) × 1,000,000.(Source:
Accident counts reported in line with "Chunghwa Telecom Work Accident Guidelines" with the employees of Chunghwa Telecom as
basis for the number of injuries.)
5. Statistics do not include commuting accidents.
6. Definition of On-site Contractors: individuals or organizations that work on the operation sites of Chunghwa Telecom. Statistics werecompiled based on the data of HongHwa International Corp.(The number of people with HongHwa International Corp. is the sum of
actual monthly persons on-site in 2022.)
7. 1 count of serious work-related injury (fatalities excluded) of an on-site contractor: a motorcycle traffic accident at work for Honghua
International Corp., resulting in a leave for more than 6 months (based on the investigation result, follow-up measures such as roadsafety and defensive driving training and strengthening traffic safety promotion were adopted, along with inclusion in the annual
performance appraisal). The statistics does not cover commuting accidents.

96

97

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

Employee Health Service• Provide employees health consultation via online or phone appointment. Physicians visited the plants 34 times a month. Sessions werefor 3 hours and each patient was allocated 30 minutes.

Health Examination of
Employees and Dependents• The Company offers much better carethan required by law and employees are
given the choice of various health checkup packages. A total of 18,578 employees had checkups in 2022.

• Healthcare personnel use the Employee Health Management System

for the analysis and evaluation of health records. Where necessary,
extra consultations can be arranged between the physicians and theemployees for proper guidance and healthcare.

• Family members are also entitled tocheckups at the same rate, and a total of
2,575 persons participated in 2022.

Free Influenza Vaccination• Free influenza vaccination is available for all em-

ployees who fit the requirements for vaccination
at public expense. Registration can be done online and 1,634 employees were vaccinated.

Employee Assistance Program (EAP)CHT was one of the largest corporations in Taiwan to start promoting the Employee Assistance Program (EAP) since 2007.

• The EAP carries out 5 consultation sessions each year, inwhich outside experts are contracted to help employees
resolve their legal, medical, family, workplace, and stressproblems.

• Case managers made 3 visits and completed 450 service
sessions in 2022.

PUBLIC POLICYPARTICIPATION

Thirty-minute medical
consultation with a physician(30 minutes / per person)

3,411

Consultation with a nurse

41,807

On-site visits by physicians

415

Employee Cafeteria• Our employee cafeteria offers a diverse range of nutritionally balanced meals to choose from.

• All food suppliers are subjected to rigorous review toensure the safety of food served to our employees.

• SGS, a professional audit entity, is commissioned fortests of ractopamine, animal drugs, preservatives, andsulfur dioxide.

Healthy Workplace• The noise level, lighting, temperature,humidity and air quality of our offices istested regularly, and the offices are alsocleaned and maintained on a regularbasis.

Telecommuting• All offices feature ergonomic chairs,• Call forwarding, instant messaging, and video conferencing.

natural ventilation, indoor plants andother elements of a healthy work environment provided.

• OA Online Administrative Operation: using HiGate for tel-ecommuting or mobilized administrative services on cellphones.

• Shared offices have been set up in the six special municipal-

ities since 2022, for employees that commute to work fromafar to work nearby instead and take care of their families.

Flexible Working Hours

Flexible start and finish times for employees toachieve a balance between work and family:• Telecommunication Laboratories, Chunghwa
Telecom implement of working hours from07:30~9:30 to 16:00~18:00.

• Headquarter and Information Technology

98Group implement of working hours from07:30~9:30 to 16:30~18:30.

Employee Health Promotion• A total of 12,839 employees participated in 164 healthseminars. 2,140 employees attended 34 educational trips.
Health examinations were given to 886 employees in 10
sessions and 18,165 employees participated in 237 largescale events (e.g. President Cup Basketball Championship,
Taoyuan Longtan Sightseeing Grand Pond Hiking, Tamsui
Fisherman's Wharf Hiking) and club activities(e.g. laborclubs like aerobic dance, yoga, Tai Chi, etc.)• The Company published two health-related articles eachmonth about the concept of disease prevention.

Balancing Work and Life

• Chunghwa Telecom has 29 hostels that provide travel accommodation, encouraging employees to achieve a balance between
work and life.

COVID-19 Epidemic prevention leave• Official leave for epidemic prevention: 201 personnel,
5,687 hours in total.

• Official leave for vaccination: 13,714 personnel, 68,844
hours in total.

• "Epidemic prevention childcare leave" for taking careof children at age 12 or under without pay or impact toattendance: 52 personnel, 2,482 hours in total.

99

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Building a Happy Business

Employees are the foundation for the growth and competitiveness of Chunghwa Telecom. We offer a commitment to ouremployees refrain from making layoffs and salary reductions. As Taiwan is about to see a super-aged society, Chunghwa Telecom
actively responds to the national childbirth policy and retains young talents. Offering diversified childbirth and welfare measuresthat are superior to statutory standards, we encourage employees to "be willing to marry, dare to give birth, and happy to raise" so
as to live up to a happy enterprise for sustainable development.
The achievements of Chunghwa Telecom's long-standing commitment to employee care have won accolades by the public. In
2022, it received the Gold Award in the Technology R&D category of "2022 Happy Enterprise" from 1111 Job Bank! Furthermore, it
was included in the list of "The World's Top Female-Friendly Companies 2022" of Forbes, in which Chunghwa Telecom ranked firstamong the surveyed companies from Taiwan!

Childcare-Friendly Workplace

Starting from 2022, Chunghwa Telecom implements childcare-friendly welfare measures as follows for employees to care for theirchildren and families without worries:• Any employee with the need to care for child at age 3 or under may apply for 1 work hour reduced per workday with full pay
and without impact to attendance or performance appraisal. Where both husband and wife are employees of Chunghwa
Telecom, both of them are eligible to the application. A total of 1,115 employees applied, creating 86,683 hours to be withand care for their children.

• A total of 16 workplace childcare support centers were set up at 9 locations across six special municipalities for the children
and grandchildren of employees aged 2 to 6 years old to access education and care services, so that employees can workat ease with their families well taken care of.

• In 2023, the benefits are planned to be raised further. In addition to the raise in the monthly childcare allowance for employee with child aged 0-6, there is maternity allowance of NT$20,000 per childbirth available as well.

100

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Leaves Better than the Statutory Requirements
Item

CHT

Labor Standards Act• Employment years 7:21 days
• Employment years 10:28 days
• Employment years 15:30 days

• Employment years 7:15 days
• Employment years 10:16 days
• Employment years 15:21 days

Better than the statutory requirement
for certain kin

Paid leave available for certain kin

Personal Leave

5 days of personal leave with pay

No payFamily Care Leave

7 days for personal leave and familycare leave combined

No paySick Leave

Full salary

Half salary

Menstrual Leave

Full salary

Half salaryMaternity Leave

42 days regular leave, rest day, andnational holiday not included

8 weeks regular leave, rest day, andnational holiday included

Pregnancy Checkup Leave

10 days

7 daysMiscarrage Leave

Full salaryNo payPregnancy Checkup Accompanimentand Paternity Leaves

10 days

7 daysAnnual Leave

Funeral101

CORPORATEOVERVIEWItem

The Digital Economy Motivator 72

Activities and Description

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Number ofParticipant /Beneficiaries

Contribution /Supplement

Parental Leave
Allowance

We offer a 6-month parental leave allowance in compliance with the Employment Insurance Act. CHT alsooffers additional monthly allowances totaling half thesum assured under the Labor Insurance Scheme.

109
persons

NT$ 12,809
ThousandChildcare
Allowance

Employees with children aged 0 - 6 years old will automatically receive childcare allowance of NT $ 6,000 per
year.

3,597
persons

NT$ 17,508
ThousandSportsActivity

Regional activities include 3 road running events, 87
hiking activities, 52 ball sports activities and 272 otheractivities (e.g. stair-climbing, health exercise, strolling,and health promotion lectures).

35,054
persons

NT$ 9,648,135
ThousandApplicable to all employees, all employees are free tojoin

17,079persons

NT$ 484,493
Thousand

Dependent
Education
Subsidy

Twice a year (two semesters).

17,528persons

NT$ 74,622
ThousandWedding
Subsidy

A wedding subsidy is available for employees who are
to be lawfully married.

ESOT

奠

SUSTAINABILITY VALUESTRATEGY

270
persons

The Happiness Value Protector 82

Childbirth
Subsidy

Employees or their spouses are eligible for a childbirthsubsidy.

416
persons

NT$ 104
Thousand

FuneralSubsidy

A funeral subsidy is available in the event of the deathof a parent, foster parent, step-parent, the spouse or achild of an employee.

721
persons

NT$ 361
ThousandWork Hour
Reduction forChildcare

Application for 1 work hour reduced per workday with
pay available for any employee with the need to carefor child at age 3 or under.

1,115
persons

NT$ 20,803
ThousandRecreation
andSports Space

Includes an integrated stadium, swimming pool, tennis,
badminton, basketball, and table tennis courts, multifunctional event space, karaoke room, and employee
dormitories.

Total 15,608 pings

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Better Maternity Benefits than the Legal Requisites

We have been implementing an unpaid childcare
leave system since 2006 to help employees
juggle their attention between work and family.
The employees who have taken childcare leaveare entitled to receive a six months parental
leave allowance from the authority under the
Employment Insurance Act. While six months
expiry, the Company will further pay an additionalchildcare subsidy of half assurance sum ofLabor Insurance Scheme according to its policy.
In 2022, 109 employees applied for unpaid
childcare leave; 109 employees applied for childcare leave allowances. NT$12,809,031 was paidout as childcare leave allowances. In 2022, theepidemic prevention childcare leave was provided
additionally in response to the pandemic.
Year

2022

Male

FemaleTotal

The Number Qualified for UPL for Raising Children 2022 (A)

1,449

504

1,953

30

79

109

2.07%

15.67%

5.58%

Number of Expected Reinstatement 2022 (C)

17

62

79

Number of Applications for Reinstatement 2022 (D)

21

71

92

123.53%114.52%116.46%

Number of Reinstatement 2021 (E)

13

73

86

One Year Retention after Reinstatement 2021 (F)

13

71

84

100%

97.26%

97.67%

Application Rate for UPL (B/A)

Reinstatement 2022 (D/C)

2021

Unit: persons

Item

Number of Applications for UPL 2022 (B)NT$ 675
ThousandNote: The benefits are provided to the non-fixed term employees of Chunghwa Telecom, but not for those of subsidiaries.

102

SUSTAINABILITY RISKSAND OPPORTUNITIESRetention Rate 2021 (F/E)

Notes: 1. The number of employees entitled to apply for a parental leave of absence in 2022 (A): calculated as the number of employees
who have the three-year-old or below children (according to the database with the dependents profile.)
2. The number of expected reinstatements 2022 (C): The number of employees who applied from 2020 to 2022 and should bereinstated in 2022.
3. The number of actual reinstatements 2022 (D): The number of employees who applied from 2020 to 2022 and were reinstated in
2022.
4. Reinstatement rate: (actual number of reinstated employees that year/number of employees who should have been reinstatedthat year) × 100%
5. Retention rate: (the number who continued working after reinstatement/reinstated number for the previous year) × 100%. The
number of persons who continued to work for one year after reinstatement in the previous year includes those who remained in
employment without pay again.

103

CORPORATEOVERVIEW

Retirement Benefits

SUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Employee requests for retirement are processed in accordance with the Chunghwa Telecom Employee Retirement Pension and
Separation Guidelines, the Labor Standards Act, and the Labor Pensions Act.

• The Labor Standards Act: The Company makes monthly pension contributions of up to 15% of an employees' monthly

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Human Rights Material Risk Issues

salary to the pension fund. This fund is held under the auspices of the Labor Pension Supervisory Committee. The current
balance of the pension fund account is 36.3 billion.

• The Labor Pension Act: The Company makes monthly contributions of no less than 6% of an employee's monthly salary.
These contributions are deposited in the employees' pension account held by the Bureau of Labor Insurance of the Ministryof Labor, in accordance with the Contribution Rate Sheet approved by the Executive Yuan.

Note: Monthly pension contributions were made in accordance with the Monthly Contribution Wages Classification Scheme published by
the Ministry of Labor, subject to biannual adjustments.

Lifelong Learning and Training Programs

To help our employees to adapt and create quality lives after retirement, Chunghwa Telecom Training Institute was commissioned
to organize "Care Program for Retirees' Sweet, Happy Lives". A total of 9 sessions were organized with 529 person-times involved in
2022. Also, we continued to contribute to "Chunghwa Telecom Retirees Association" with an amount of NT$4.5 million to support
them to organize relevant activities. We also donated NT$1.5 million for travel activities and NT$300,000 for the meal expenses ofall volunteers across branches during the Lunar New Year.

To help facilitate the transfer of knowledge and experience, we have stipulated "Consultant Recruitment Guidelines" to hire paid
consultants and honorary consultants. Managers at a position of Senior Executive Vice President or above, or the head of Level-1
institutions, may be hired by Chunghwa Telecom as paid consultants after retirement. Paid consultants shall serve a term of no
more than one year and assume honorary consultants upon the day after one-year period has expired.

Human Rights Value Protection

Local Human Rights

Customer Human Rights

To f u l f i l l t h e co n ce pt o f a n t i - fo rce d l a b o r a n d
appropriate working environment, we required thebidders to sign a Declaration of Minerals as ConflictFree during procurement. We evaluated the suppliers
to determine if raw materials derived from humanrights high-risk areas like the Democratic Republic of
the Congo to avoid harm to the basic human rights oflocal residents while we are providing ICT products
and services. We depend on demand and require thesuppliers to provide certification of material resources,
third-party verification, or accepted auditing to confirm
no related violations. We also required that all suppliers
complied with the Restriction of Hazardous Substances
Directive (RoHS) to prevent hazardous substancesfrom the source endangering local employees, theenvironment or customers.

To I m p l e m e n t a p p r o p r i a t e s a f e g u a r d s f o r
customers' personal information and to focus on
information security management in operations,
we actively prevent damage from the products orservices to stakeholders, the measured values suchas that of environmental electromagnetic wave
should be in line with the "recommended nonionizing radiation exposure limits for the generalpublic in non-occupational environments" releasedby the International Commission on Non-Ionizing
Radiation Protection (ICNIRP). Citizens may apply
for the free base station electromagnetic wave
measuring service to reduce the concerns in healthand safety of the people in communities.

Employment Human Rights

Information Equality

We proactively monitor and protect human rights for all stakeholders. We respond to the UN Declaration of Human Rights and theILO Convention on the elimination of all forms of discrimination and the prohibition of forced and child labor. We also respondto the UN International Covenant on Civil and Political Rights and the International Covenant on Economic, Social, and Cultural
Rights, dedicating to promote human rights awareness and assure respect and fair treatment to all stakeholders.
On the issue of information equality, we ensure a free flow of
information globally, transparency in global roaming charges andcompetition, support to the telecom development in developing
countries, provision of convenient access to telecom services forindividuals with disabilities, and protection of people's freedom ofspeech on telecom networks.

In addition, we regularly conduct human rights due diligence internallyin accordance with the UN "Guiding Principles on Business and Human
Rights" to ensure that all human rights issues in the operating value
chain can be assessed. As for partners, due diligence is conducted on
the companies invested each year, and our "Code of Conduct," "EthicalCorporate Management Best Practice Principles," and other relevant
policies are extended to subsidiaries and invested companies to jointly
implement the concepts of human rights and business ethics, so as toeffectively manage various risks and maintain them to the minimum
level via actions.
The issues with the human rights recognizedinternationally that are covered by
Chunghwa Telecom Human Right Policy

Anti-discrimination, gender equality, freedom of association, collective
bargaining, child labor, human trafficking, illegal slavery, forced labor, etc.

Types of stakeholders
covered by the policy concerns

Employees, consumers, customers, local communities, female, children,
individuals with disabilities, and indigenous peoples*Chunghwa Telecom Human Right Policy

104

We implement the Occupational Health and Safety
Management System (ISO 45001) and continue toimprove the working environment and act in regards
to safety and health facilities and measures to actively
ensure employee protection.

Sometimes customer service personnel encounter
irrational requests and even personal abuse from
customers in the provision of our ser vices. We
established an SOP for employee response and acted ata critical level in certain circumstances. Legal assistancecan be authorized to aid in the event of serious offenses
and to prevent illegal practices. CHT adopted the ISO
10002 quality management system in 2011 and have acertified and flawless customer service procedure andmanagement mechanism in place. We regularly offer
pertinent training courses in customer relations, themanagement of emotional stress, and occupational
hazard prevention. While building up professional
capability, we positively avoid pressure to mental
and physical health problems on customer service
personnel.

CHT is creating a free and open information sharing
environment without technological boundaries thatcan be shared with everyone. Such a system inherits culture, extends education, promotes industry,
and upgrading art with a connection to the universeof the Internet. Digital technology can be beneficial
to everyone irrespective of age, social standing,wealth, geographical location, or education.

We base our approach on the characteristics ofthe ICT industry and the spirit of "where the value
is where the responsibility lies" in our work withthe communities in Taiwan. Our main objective
is to minimize the digital divide and create digital
opportunities, CHT watches the trends of this digital
divide and offer solutions that facilitate social
innovation and digital inclusion. We spare no effort
in corporate volunteer, participate in community
services, and proactively assist communities in thecreation of digital opportunities.

105

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

2022 Value Chain Human Rights Evaluation Results
Subjects of theValue Chain

Location /Amount• Labor-manage-

Evaluation Percentage
Percentage at Risk

2

• Collective agree• Workers' Union
meeting• Annual humanrights event inspection• Annual ESG imple-

15

CriticalTier 1
CriticalTier 2

2.6%

mentation inspection

1,915

187

23

• Occupational

100%

2.7%

100%

labor laws and regulations.

0.2%• Diverse compliant

channels (including discriminationand harassment)

All consumers• Personal informa-tion and privacy
protection inspection• Minority groupservice mechanism

106

Some institutes were in violation ofregulations. Suggestions for improvement have been provided and will be
tracked and managed continuously.

• Some suppliers had violated thehealth and safety
audit• Satisfaction survey

labor unions and signing of Collective Bargaining Agreement.

The Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Safeguarding Consumer Rights and Interests
Digital Transformation of Diverse Virtual and Physical Channel Services

Chunghwa Telecom values consumers opinion. In addition to conveying technical features of the products and services we offer;
we look at the matter from the point of view of the consumer. We provide consumers with the most comprehensive, high quality
and efficient services putting a wide and diverse range of service channels at their disposal. By the end of 2022, we had 447 direct
physical channel service stores, and 244 franchised stores, a total of 691 service outlets that provide convenient services for all
consumers in cities, or even in remote areas in Taiwan.

Ethical Marketing and Information Transparency and FriendlinessWe provide a handbook about products and services for consumers that details product characteristics and applications, consider
the negative aspect of overuse, and has friendly reminders provided while marketing. In addition, Chunghwa Telecom has set up
the "Channel Sale Items Management Guideline" and "Channel Sales Items Management Implementation Procedures" to makethe display of sales items and operation management consistent throughout all the service and business locations. This ensuresa positive service environment for consumers. These are vital for maintaining a superior and professional image as well as theservice quality at Chunghwa Telecom. No violations of health and safety and product labeling was reported in 2022.

Green Services with Environmental Protection and Innovation Combined

tory

audit

• Labor rights were protected via

environment in 2022.

• ESG survey inven• ESG second party

the social regulations and OHS,
which were corrected immediately in line with regulations.

• There was no risk involving labormentation inspection

Subsidiaries

Tier 1100%• Annual ESG imple-

18

Re-investment
Companies• Certain institutions violated

ment

28

CHT owned
institutes at 1 to 2
lower levels

The Public

Description /Boosting Mechanism

ment meeting1

Upstream andDownstream
Suppliers

Evaluation
Mechanism

SUSTAINABILITY RISKSAND OPPORTUNITIES• Continue to follow-up of suppli-

0%

Customer service Kiosks

These serve as the "Database" for business and engineering-related information. When new
information is received, it will be verified according to an SOP. Afterward, an FAQ will be further
drafted and uploaded to the customer information station for use by the Chunghwa Telecom
customer service personnel (at service outlets and call centers) and the Internet counter.
Consumer Hotline

Provides complete information on the features of products and services, and related
special offers.

ers with identified risk to see if
improvements have been madethrough Supplier Conference andother channels.

• No discrimination or harassment,
100%

Telecom combinative stores were established in Zhongli, Miaoli and Hsinchu, including cafe, 3C and an experimental display. The
green stores capabilities were also developed and energy-saving household appliances such as electric scooter, TV, refrigerators,
and air purifiers, promoting green business development and offering customers the one stop shopping and whole new store
service experience.

or any invasion of CHT customer
privacy or misuse of personal
information in 2022.

• Continue to promote the 5I SDGs
Initiative to ensure information
equality among the groups.

Refined Customer Service

Chunghwa Telecom provides services which are refined, thoughtful and professional to build warm atmosphere around customer
relations. We use big data analysis to learn the true needs of customers so that we can offer thoughtful and customized services
and products.

To maintain a decent and stable service quality, Chunghwa Telecom customer service hotline has been certified to various
international standards over the years, including ISO 10002, BS 10012, and ISO 27001. Dedicated to the "customer-centric"
experience optimization effort, it employed big data analysis to probe into key elements of customers' concern and truly listened
to customer needs for an ongoing process optimization and system functionality improvement. In recent years, in response
to customers' needs for digital services, it bettered itself in the development of smart customer service. With the innovative
collaborative model of humans and robot combined, it gave birth service that are more sophisticated, thoughtful, professional,
and convenient, which not only elevated the efficiency of customer service operation but also fostered optimized experiences andvalues for customers.

107

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Customer Service
Excellence Awards (CSEA)Best Service

Innovation Enterprise
The Further Upgradeof Customer Service Hotline
Innovation Application

With the intelligent human-robot collaborative model
for customer service rich in both warmth and speed, wework ceaselessly to create a better service experience forcustomers.

Best Customer Service

Contracting EnterpriseSUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

The Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Promoting "customer-centric" transformative strategies

The services online and offline are integrated to carry out multiple customer experience optimization projects:

1. In response to the trend customer App usage, the "CHT App (Customer Service) upgrade" project was initiated to offer diversified, digitalized service channels. The application amount raised by 1.6 times, with 2.1 times of growth in number of reports
accepted. App downloads increased by 833,000 and usage increased by 5.11 million, effectively reducing the number of paper
applications and mailings for transfer payments.

2. To realize a smart governance and accelerate the digital transformation, the "omni-business online customer service," with
AI and human text-based services combined, offers online customer 24/7 online services for all businesses. The amount ofservice offered rose by 43% in 2022.
3. To implement digital equality and care for cellphone users without Internet-access, the SMS-based customer service is available for the customers to send "800" to "800" via the free SMS service. With no installation or login required, the customers
can access 19 common services. 531,000 customers accessed the service in 2022.

4. Through the mechanism of "business opportunity forwarded by customer service to stores," customer interests are intrigued
online and directed for business conclusion offline. 44,000 business opportunities were forwarded in 2022. The customer
loyalty and stickiness were improved effectively as a result.

Chunghwa Telecom Customer Service Mechanism Overview

1922 Hotline to Demonstrate
the Ample Energy of Customer Service
The "customer service contracting project team" wasestablished to assist the government in promoting not-forprofit social aids as well as 14 projects of public welfare
service hotlines, including the 1922 Hotline for epidemic
prevention, contributing to the country as a force of stability
for people's minds during the epidemic.

THE CREATIONOF SUSTAINABLE VALUE

Customer Service
Location / Scale

Multi- Channel
Customer Services

The Company has 15 customer service centers, and the number of customer service personnel averages 2,200.

• Webchat• Social media, "Chunghwa Telecom Dr. Q Fan Page"• Web customer service center• Mobile App• SMS

To emphasize the "customer-first" service philosophy and offer optimal customer service experience,
The "5-Heart Heart-warming Service Awareness Workshop" was organized for 3 sessions in the northern, central, and southern Taiwan in 2022 to train 63 participants. After the seminar, the seed lecturers
were arranged to conduct promotion sessions for all customer service personnel to inspire their service
passion as well as improve their service philosophy and communication techniques. In 2022, 18,572
employees received 58 thousand hours of training combined.
Training Result

Year

Total Participants

Total Training Hours

Average Training Hours

2021

17,91754,441

3.0

2022
2020

18,572
9,853

58,26844,3683.1
4.5

Notes: Due to the pandemic impact since 2020, TTI reduced offline education programs and adopted online
programs with shorter hour per session instead. Hence, the trained participants (person-times) increased
while the total training hours decreased.

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109

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

The Accelerated Expansion of AI Smart Customer Service in the
Pandemic Facilitated Customers' Transition and the Advent of
Instant Reply Experience

1. Facing the complex process and massive information, coupled with the difficulty in talent recruitment due to a low birthrate,
the service quality of the call center is confronted with severe challenges. In this regard, we responded by expanding the introduction of the "AI Smart Customer Service" solution with mechanisms as follows:• The self-developed AI robot tailored to local culture in Taiwan provides various smart services. A team of trainers

were assembled for an ongoing improvement of the customer service robot. The Automation Anywhere RPA robot
was introduced to handle the large number of second-line routine works.

• The new operational model with an innovative "human-robot collaboration" meets the needs in both customer

speed (robot) and warmth (human customer service), demonstrating the well-rounded service advantages online
and offline.

2. Further improvement in the service quality of AI smart customer service: we planned to launch the "Smart Customer Service
Quality Improvement Plan" in 2023 to upgrade AI trainers into customer experience managers to refine our service quality.

The Happiness Value Protector 82

To inspire passion and professionalism among customer service officers, we reward customer service personnel who receive praisefrom customers and accept these credits as part of their performance appraisal as an excellent service quality.

KPIs for Customer Service Hotline

Air counter lines have certified for the ISO 10002:2004 Customer Complaint Management System, making the first telecom
company in Taiwan to obtain this certification. The Company views customer complaints as opportunities to make ongoing
improvements. The resolution of customer complaints and dissatisfaction is rule-based, and they must be settled within 3 working
days. This approach ensures the continuous improvement of service quality.

In addition to the customer service hotline, consumers may also use the corporate website or Representative Line authorized by
the President (02) 2344-6789 to raise complaints directly to the assistance of the senior executive. The satisfaction survey in 2022
rendered 4.75 points as a result, exceeding the target of 4.7 points.

The Green Corporation Pioneer 116

2020

2021

2022

Customer Service Response within 20 Seconds

69.0 %

57.2%

63.1%

Service Satisfaction (5-point scale)

4.75

4.75

4.75

We conduct a broad variety of satisfaction surveys to identify the issues of most concern to consumers and their expectations.
We use these findings to guide future improvements. After each survey, the opinions and suggestions are conveyed promptly to
product or business personnel (including Risk Management and the Public Relations Departments) using the consumer feedback
system. Furthermore, consumers opinions are brought to the attention of the senior manager of the product and customer service
departments for discussion at monthly meetings to ensure that the consumers expectations receive proper consideration.

Regarding the IPA (Importance-Performance Analysis) items belonging to the fourth quadrant (high importance and low
performance) after a review of the results of the annual satisfaction survey, we will request that the relevant functional units
conduct further analysis and propose measures for concrete improvement every year. There will also be a follow-up in the next
quarter to keep track of the progress of any corrective action found necessary.

Designate an external market survey company
to conduct consumer satisfaction survey
Survey Result (10-point scale)

Large Enterprise

General Customer

9.09
8.98
7.91

Rigorous Privacy Protection Management Mechanism

Chunghwa Telecom values "Customer Privacy Protection", follows the nation's regulations and stipulates application "Privacy
Protection Policy" encompasses all groups, branch offices, subsidiaries, and suppliers of the Company, with rigorous privacy
security management and protection measures.
Prior to any business promotion, risk assessment will be conducted to examine and ensure data access in compliance with theregulatory requirements and to check if data protection mechanisms are in place to ensure data protection mechanism integrity
and avoid risks in data processing. Regarding the collection, processing, use, and protection of personal data and privacy involvedin the operation, aside from compliance with government's relevant laws and regulations, personal data and privacy is used within
the defined scope of regulatory requirements and will not be disclosed to a third-party via exchange, lease, or otherwise at will, in
an effort to protect the data security and privacy rights of customers. Meanwhile, in response to the potential privacy concerns andrisks associated with the AI technology, we make sure that proper management measures are in place in the use of AI technology
with reference to the "AI Technology R&D Guidelines."

Data governance organizations and responsibilities• Data Governance Committee (Level-1 Organization): The final deci-sion-making body for issues of data governance with President as theConvener• Data Development Department (Level-2 Organization): Stipulationand promotion of corporate data governance regulations and systems; tracking of implementation results• Data Governance Team (Level-3 Organization): Data governance im-

Correction & Prevention E-Platform

For circumstances where customers have poor impressions with the service attitude or professional knowledge during theexperience process, we employ the "Correction & Prevention E-platform." Through mechanisms of work assignment by thesystem and audio file listening by staff, the coaching correction measures in the manner of coaching are swiftly adopted forthe services yet to be perfect to assist customer service personnel to improve within a specified time frame, followed by the
random check of 3-6 records (or audio files) of similar types of customer service to track and verify the result of coachingcorrection.

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Customer Satisfaction Survey

Note: Owing to the pandemic, we diverted our customer service hotline workforce to support the Taiwan CDC Toll-free Hotline 1922 service.
The 20-sec answer rate was low as a result, but the overall customer service hotline answer rate was still up to 92%.

110

THE CREATIONOF SUSTAINABLE VALUE

Small and Medium EnterpriseCommendation for Best Customer Service Personnel

KPI

SUSTAINABILITY RISKSAND OPPORTUNITIES

plementer to ensure implementation of the data governance systemthroughout Chunghwa Telecom

Specific Data Management Mechanisms

In alignment with the major areas of Data Management Knowledge (DMBOK) of Data Management Association (DAMA) , constructing
date governance framework and management system. As such, it warrants an effective data governance at the Company and thesubordinate entities to achieve consistency, availability, security, and compliance in data asset management.

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CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Privacy Protection Risk Management• Group-wide risk management: risk and impact assessment are conducted in line with the regulations, formulate privacy

risk handling targets and measures, and regularly review and evaluate achievement of indicators. Our performance of cybersecurity and privacy risk management has been incorporated into the monthly tracking by the Risk Management Committee for management. Any material risk issue will be submitted to the Audit Committee or directly reported to the Boardof Directors.

• Performance measurement and disciplinary: Our Privacy Policy upholds"zero tolerance" as the overarching principle. Per-

formance in cybersecurity and personal information protection is included in the appraisal of all employees. Any loss due
to negligence or any conduct of improper inquiry, acquisition, use, or deliberate leak of customer's personal data is subject
to demerit or termination of labor contract at worst.

• External audit: We ceaselessly strengthen the privacy protection procedures, ensure implementation of privacy protec-

tion security measures throughout the operation processes, organize trainings pertaining to privacy protection, elevatethe overall privacy protection competency of the Company, and examine and evaluate effectiveness in privacy protection
measures via regular tests and exercises. Externally, our Privacy Policy has obtained the third-party conformity verification.
Also, we conduct internal/external audits and certifications each year (e.g. ISO 27001 / ISO 27011 / ISO 27017 / ISO 27018 /BS 10012 / CSA STAR Certification with ongoing validity) so as to offer consumers a better cybersecurity and privacy dataprotection.

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Requests for customer information received from governmentor law enforcement agencies• We are liable to protect customer's secrecy of correspondence and priva-

cy from illegal infringement in accordance with the laws. Only when government agency or law enforcement agency presents Chunghwa Telecom a letter in line with the laws to request access or inquire informationof customers to protect public security, fight crimes, or maintain social
order can we provide customer information thereto. In compliance withthe requirements, dedicated departments and rigorous review procedures for access are in place. Relevant information can only be provided
in accordance with the laws upon criteria met, which will not be available otherwise.

• In 2022, 1,374,084 requests were made by the government or law en-forcement agencies for inquiries of our user information. The ratio ofprovision was 55.60% (763,991 requests) and that of rejection 44.4%(610,093 requests), most of which were primarily due to inconformity to
the relevant laws and regulations or source data error.

Personal Data and Privacy Protection Consultation and Grievance Channels

A variety of means are available for customers to exercise their rights. In addition, customers with questions or concerns regarding
personal data or privacy may send feedbacks or appeals via various channels, which will be explained by dedicated staff in a
professional manner.

Personal Data and Privacy Protection Grievance Escalation Channels

Should anyone find their personal data and privacy use issues unresolved within 30 days, they are welcome to reach us via theescalation channels as follow:• Address: No. 21-3, Section 1, Xinyi Road, Zhongzheng District, Taipei City 100, Taiwan (R.O.C.)• Recipient: Chief Information Security Officer, Chunghwa Telecom Co., Ltd.
• Phone: (02)2344-6789

Customer privacy rights protection• Types and Content of Data Collected: When customers access services of Chunghwa Telecom, we collect their personal/pri-vate data, including account, browsed webpages or multimedia contents/mobile Apps, out of the regulatory requirement
for identity verification or the needs for service provision.

• Data Retention Period: Upon termination of contractual relationship between customers and us, we will maintain and use

customer's personal information within the scope and duration required or permitted by the laws and regulations andretain (non-personal) data generated therefrom in a form that does not identify the customer.

• Policy for Disclosure to Third Parties: Personal data and privacy will not be disclosed to a third party by means of exchange,
lease, or otherwise at will, unless consented by the customers or specified otherwise by laws and regulations.

• Data Use and Protection: To elevate customer experiences and maintain customer relationship, we use customers' data for

analyses to provide optimized, customized services and discount information perfect for our customers, whereas customers may request stop to such use at any given time.

• We have formulated personal data protection policy and relevant regulations regarding the use of personal data to preventfrom any unauthorized access, disclosure, use, or tampering of personal data to protect the privacy, data security, andrights of customers. The percentage of secondary use of customer data at Chunghwa Telecom in 2022 is 86.07%.

Exercise of customer rights

To protect the rights of customers, a variety of channels (including websites, Apps, stores, and customer hotline) are available
at Chunghwa Telecom for customers to access and learn about the types of personal information collected and the methods forcollection, processing, use, or disclosure of such to a third party as well as the rights customers may exercise. The rights available forcustomers to exercise are: opt-out, opt-in, access to data held by the Company, request to edit data, request for deletion.

112

There were 10 complaints over "alleged information breach cases" filed via the customer hotline in 2022, of which 7 was notified
by the National Communications Commission (NCC) and 3 submitted via the customer service hotline (same amount of cases
compared with those in 2021, accounting for 0.00001 % of the customer hotline service provided of the year). All the cases were
investigated and verified that there had not been any fact of personal data and privacy breach.

*For more information on the cybersecurity and personal data and privacy protection of Chunghwa Telecom, please visit our website
1Gbps Network Speed across All Townships, 100 Mbps across All Villages

We are constantly expanding our mobile network and have the most 4G cell towers and the coverage in Taiwan. The quality of the
network has been recognized both domestically and internationally. To ensure the equal sharing of information, in addition to a
positive strengthening of mobile Internet quality in populous metropolitan areas, we have paid more attention to signal coveragein remote areas, achieving 100% total 4G coverage in all towns.

To better implement the digital rights, we proactively respond to the policy target of"2 Gbps network coverage hit 90% by 2025"
in the Digital Government Program 2.0 of Taiwan (2021-2025) (DIGI+ Program) of the Executive Yuan, upgrading the fiber optic
network coverage and network equipment. Hence, all people may have equal development opportunities. Forward-looking
projects of 1 Gbps network service for townships, 100 Mbps network service to villages (boroughs), and submarine cables foroffshore islands have been completed in 2022.

Expand Wireless Hotspots

We have also supported the government initiative for the promotion of free wireless Internet services nationally. Through areasonable 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
included working with local county and city governments to provide Wi-Fi hotspots and enable Internet access at festive gatherings
and international sports events, and installed hotspots for New Year's Eve festivity, the Lantern Festival and for other significant
activities. The Company participated in 16 festive occasions, built 65 hotspots in total.

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CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

The Alleviation of Public Concern about Electromagnetic Waves

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

The Social Value Guide 136

PUBLIC POLICYPARTICIPATION

Disaster Report and Upgraded Safety

According to a report by the World Health Organization (WHO) and related scientific research, exposure to base stations and Wi-Fi
signals does not affect human health. NCC also declared that all the powers of the electromagnetic waves from the domestic basestations are within the threshold of international standards and thus cause no harm to human body. Therefore, the Environmental
Protection Administration of the Executive Yuan do not list base station as a source of environmental pollution.

In efforts to minimize the impact of disasters by prompt messaging, the Chunghwa Telecom self-developed "Emergency
Response SMS System" apply to Directorate General of Highways'"Traffic Conditions Alert System," and Atomic Energy Council's
periodic"Nuclear Safety Drills," and the National Fire Agency's disaster prevention exercises, sent out more than 20,000 SMS alerts
in 2022, successfully played its part in disaster prevention information notification.

The measurement of the electromagnetic radiation in the environment conforms to the standard of the International Commission
on Non-Ionizing Radiation Protection (ICNIRP), which must be lower than 0.45 μW/cm 2 at 900MHz and less than 0.9μW/cm2 at
1,800MHz. Any resident who has concerns regarding base stations near their home can request a free complimentary measurementof the strength of the nearby electromagnetic waves by calling 0800-580010.

Telecom Services and Promotions

For this issue, Chunghwa Telecom ensures strict compliance with the authority's safety standards when constructing telecom
infrastructure. The Specific Absorption Rate (SAR) of all mobile communication products we purchased have complied with therestrictions of the National Communications Commission (NCC), complying with the regulations.

Advocate the Accurate Understanding of Electromagnetic Waves• Chunghwa Telecom has been working closely with the Taiwan Telecom Industry Development Association to convey
to the public the correct information about electromagnetic waves, by organizing conferences and issuing promotional materials.

• The Company joined NCC and 14 county/city governments nationwide in hosting 25 seminars on the topic of electro-

A Public Warning System (PWS) has been established to support the national policy of emergency message dissemination about
typhoons, earthquakes, thunderstorms, large-scale power outage, landslides, roadblocks, reservoir discharge or an outbreak of
disease, fast and correctly to specific regions simultaneously, assisting government agencies and the general public improving
their disaster prevention awareness and capabilities. The PWS issued over 2,600 times of emergency warnings across Taiwan in
2022, effectively assisting the government in policy delivery and disaster notification.

Fraud Prevention

In 2007, Chunghwa Telecom assisted the government in establishing the 165 Anti-Fraud Consultation Hotline to support the police
and authorities in the defiance against fraud.

Resources
Committed

magnetic waves and 103 free complimentary electromagnetic wave measurements have been completed to date.

• Local government bodies were issued some promotional material and pamphlets about electromagnetic radiation,
which were distributed to the public during various activities to promote proper understanding.

5G 4G

Types of CHT Base Stations Installed

1.18% 98.82%

22.21% 77.79%

3G

14.93% 85.07%

Independent Base Station
Shared Base Station

1. All these are established on the existing buildings.
2. The 5G services kicked off on July 1, 2020.

Enhanced Disaster Response and Communication Coverage

Chunghwa Telecom continues to install repeaters, backup wireless routers, and backup power supplies to increase reliabletransmission capacity in remote areas. By increasing the capacity of backup batteries to more than 72 hours, the Company ensuresthat residents in remote locations can stay connected even when main power has been disrupted by a natural disaster.

Occurrence of DisasterIf communication is severely disrupted in the unfortunate event of a natural disaster, we take contingency measures, that depends
on the actual circumstances, to maintain communication between the disaster locations and the outside world. These can include
microwave radio, satellite transmission, portable base stations, etc.

114

Criminal Investigation Bureau in a concerted front-line duty effort from Monday to Friday.

• "Disconnection Service Fraud Prevention System" offers information on some suspected tele-phone gimmicks used for cheating customers and a timely settlement of the problem. An averageof 2 customer service person participated in the program each month.

Prevention of Fraud
on Network / Mobile
Devices• A two-way, SMS-based authentication system was introduced for small payments.
• Anti-fraud SMS messages were sent in compliance with the police department.

Progress
Description in 2022

• The hotline received 130,663 calls, and 7,879 cases of fraud were referred to the authorities.
• The Company assisted the Criminal Investigation Bureau, National Policy Agency in disconnecting 723 phone numbers, and successfully stopped 2,829 scams.

Reducing Negative Impact of the Internet

We continue to minimize negative material circulating on the Internet through diverse action plans, and endeavor to provide
consumers with a healthy, trouble-free network environment.
Anti-Virus andAnti-Hacker

A HiNet mailbox gives customers access to a free webmail service. A simple setup allows users to decide
if questionable e-mail will be automatically deleted in the future. We continue to monitor the formulation of the "Regulations for Commercial Electronic Spam Mail", in which add the management obligations to the Internet Service Provider (ISP).

Adult Content

Provides K12 Mailbox Forced Isolation, the HiNet Adult Content Gatekeeper, and the Mobile Adult Content Security Guard, keeps children and teenagers out of harmful websites.

Usage Time Control

The HiNet Online Time Management Service and mobile phone"3G Talk without Worries" programs,
giving parents effective control of the mobile phone and Internet use.

MOD Parental Lock

The Parental Lock can be set at protected or parental guidance. Settings are in effect immediately once thepassword has been entered. The parental lock can be used to protect children from harmful or bad content.

Responses Measure

We conduct annual emergency drills for a wide number of different events, from the coordination of network resources andequipment to emergency repairs. Our base stations have been deployed in a diversified manner and are covered by robust backup
plans so that failure of circuitry, power or equipment at any base station will not disrupt the operation of other nearby base stations.

• An average of 8 customer service personnel joined the service every month to work with the115

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

The Green
Corporation Pioneer
The SDGs CHT contributes toin this section

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

Strategy

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

SMARTI

Facilitation of greenness in the ICT industry (Greenof ICT) and overall greenness of society through ICT(Green by ICT)Management• "Chunghwa Telecom Company, Ltd. Supplier Code of
Conduct" stipulated• "Chunghwa Telecom Co., Ltd. Procurement Grievance Procedures" stipulated• "Chunghwa Telecom Energy Saving Policy for a Sustainable Environment" stipulated• Collect the suppliers information on climate change
and carbon emission at least once a year

Response• Continuously held CHT ESG Supplier Conference / Sustainable Environmental Visit, education and trainings• Targets low-carbon industries and promotes solar
powerTargetShort-term (2023)

1. Complete procurement of 69 million kWh or more renewable energy

2. Promote FSC-certified store bags
Mid- and Long-Term (2030)

1. 50% cut in carbon emissions compared to 2020 levels
2. 100% IDCs using renewable energy

3. 100 % significant suppliers "CHT sustainability partner
certified"
4. Carbon reduction in the supply chain by 22.5%
5. 100% electrification of service vehicles

Action• Efficient energy and resource management using
EARTH• The launch of the 5G initiative in pursuit of profit,
environmental sustainability, and social responsibility• Become the first telecom service provider in Taiwan to implement:

5G Green Enterprise

Although telecom is regarded as a low-polluting industry, Chunghwa Telecom remains active in promoting various actionsof environmental sustainability. It promotes the actions of 5G Green Enterprise with the aim for "sustainable net zero,"committed to reducing the energy and resources used in the operations as well as the wastes and carbon emissions.

116

1. Collaboration with the Sustainable Alliance for
Low-carbon Economy (SALcE) to issue the Sustainable Partnership Certificate
2. The membership of "CDP Supply Chain Program
obtained

Indicator

CHT Nearly 50 suppliers receiving ESG education andtrainings

CHT Implement the "Suppliers ESG Second Party Audit" on 40 suppliers

CHT 24,029 Taiwan Renewable Energy Certificates(T-REC) acquired

GRI Scope 1 & 2 GHG emissions of 714,098 t-CO2e

SASB 4,658.8 kWp of installed capacity of PV systems
generated for self-consumption

SASB 10.536 metric tons of cellphones recycled with areuse rate of 90.19%

3. TCFD Conformity Statement obtained

4. BS 8001 Conformity Statement obtained

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CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

1G Green Operation• A self-developed EARTH system for 100% control of environmental information• Certifications of ISO 14001, ISO 50001, and ISO 14064-1• The sole telecom company that has obtained BS 8001 Circular Economy ver-SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

To fulfill our green commitment, Chunghwa Telecom has adopted a "Green Enterprise, Sustainability and Innovation Strategy"
with the introduction of 5G (Green): Green Operation, Green Energy, Green Stores, Green Supply Chain, and Green Procurement,
seeking the triple benefits of economic profits, environmental sustainability, and social responsibility with sustainable practices
and actions.

ification in the industry of Taiwan• Certification to the highest grade of TCFD Conformity Check for 3 consecutive years

Note: The certification of ISO 14001 is valid till 2023/12/24, and that of ISO 50001 till
2023/12/2.

2G Green Energy• Self-constructed photovoltaic systems reached a total capacity of 4,658.8
kWp• Self-built green base stations (solar powered), including two base stations inCiaotou, Kaohsiung and Yuanli, Miaoli (with an installed capacity of 9 kWp)

• Self-built green base station (wind powered with a total installed capacity of

12 KW), tested by an international qualified institution and certified to IEC
61400-2 small wind turbines$

3G Green Stores• Transformed 447 service centers into Green Stores• Paperless for various services, saving up to 2.23 million sheets of paper andreducing carbon footprints in services• Products with green marks/labels introduced, and the application collection

services for energy-saving subsidy conducted in cooperation with county
and city governments• FSC-certified Shopping bags in conformity to the environmental requirements• Syntrend Store in Taipei obtained EPA's Service Carbon Label (2020/3/31~2025/3/3)

4G Green Supply Chain• The first telecom company to promote supply chain sustainability management• Formally incorporated the ISO 20400 Sustainable Procurement Standard• The first telecom company to participated in the CDP Supply Chain Project toexpand the efficiency of carbon management

5G Green Procurement• Reached a total of NT$17,605 million in green procurement in 2022
• Reached 28.67% of total procurement as green procurement in 2022

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Short-Term

GreenEnterpriseGreen
Sustainability
Green
Innovation

Mid-Term

Long-Term

Reduce power usage
effectiveness (PUE) of new
IDCs to less than 1.6

Maintain at least 5% of thegreen purchase

Make more than 50% ofpurchases from the green
supply chain

Construct more than 4,658
kWp of photovoltaic systems

Construct more than 10,376
kWp of photovoltaic systems

Construct more than 13,600
kWp of photovoltaic systems

Cumulative 562 units of
C-RANsAchieve 1% annual revenue
growth of green products/
services

Grow green products/
services to account for 20%
of total revenue

Carbon reduction targets and pathway of Chunghwa Telecom

We joined the Taiwan Alliance for Net Zero Emission in 2021, proposed and has been publicly committed to a 50% carbon reduction
by 2030 and Net Zero by 2050, put forward our commitment to net-zero emissions by 2050 to the SBTi, and submitted the carbon
reduction targets for review by SBTi: a 50% carbon reduction in 2030 compared with 2020 levels, with the carbon reduction
pathway:

Reduction Target
2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2050

1.7%

3.7%

6.5%

10.1%

14.5%

20%

26%

33%

41%

50%

100%

• To meet the emission reduction requirements of SBT for the ICT sector, we implement emission reduction plans for"datacenters, mobile networks and fixed-line networks, and office buildings" respectively. The emission reduction plans are to
be planned with reference to the methodologies recommended by international organizations and our government and inline with the situation at present, in order to propose emission reduction plans of the years that follow as the supporting
information for the SBT submitted.

• By saving electricity and replacing high-energy equipment, Scope 1 and 2 carbon emissions in 2022 (714k metric tons ofCO2e) were reduced by 9.6% comparing to the base year levels in 2020.

• Declare RE100 in 2040 and SBT net zero in 2050.

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CORPORATEOVERVIEW

1G Green Operation

SUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

With the vision of "Green Enterprise", we have made environmental issues an incorporated
part of business operation and management. In addition to improving energy efficiency,
we also leverage our core function of information communication and actively develop
environmentally friendly products and services to inspire a new generation of low-carbon
industries.

Environment ARtificer THeurgy (EARTH)

We developed the Environment ARtificer THeurgy (EARTH) system to manage resources
and protect the environment more efficiently as well as to reduce spending on energy
consumption. EARTH system features include:

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Ecotourism

We regularly organize eco-tours, andintegrate environmental education,
hoping to provide eco-tours that areboth educational and entertaining for our
employees, so that they understand theconnection between the environment
and personal environmental protection.
Through responsible tourism practices,
employees have learned to respectnature and protect the rights of local
residents. We held 414 tours in 2022,
costing a total of NT$9,648 thousandwith 35,054 participants.

• Energy Saving and Innovation:

Energy savings and innovation initiatives have been uploaded and implemented in all
departments to encourage employees to learn from each other.

• Performance Evaluation:

Environmental Management Expenses

Performance evaluation is conducted systematically to encourage employees to contribute toenvironmental sustainability actions.

• Power Management:

Request centralized payment of electricity bill; there are more than 66,898 electricity accounts
and 3,807,145 units of electricity payment data under management.

• Water Management:

Request centralized payment of water bill; there are more than 1,359 water accounts and 142,977
units of water payment data under management.

• Water resources statistics:

97,247,177 liters of 6 types of water recycling data managed on the system, reducing 20,130 kg of
CO2 emissions.

• Fuel Management:

Fuel use data for hybrid and ordinary vehicles were analyzed to improve energy efficiency andreduce carbon emission.

• Corporate Tree Planting:Document type, number, management department and location of trees. There are over 251
varieties of tree and 67,602 tree data saved in the EARTH database.

• Lighting statistics:

The data of 143,359 entries of 20 types of lighting devices managed on the system at present.

• Recycling statistics:

19,332,038 entries of 22 types of resource recycling data managed on the system at present.

Green Environmental Hostels

Chunghwa Telecom has 18 hostels certified as Green Hotels across the country. Aside from quality hospitality services for thebusiness trips, accommodation, and leisure of the employees with Chunghwa Telecom and its subsidiaries, the hostels do notprovide disposable, or consumable, supplies and towels in active response to environmental protection. Various energy-saving
measures, such as solar water heaters, air-conditioning with heat pump systems, and replacement with LED lights, are in place topractice actions of environmental sustainability.

120

%

2020

2021

2022

Environmental management expense(NT$ thousand)

329,126

330,550

348,375

Accounted percentage of turnover (%)

0.16

0.16

0.16

Energy-saving/Emission-reducing Actions
C-RAN architecture BBU integration
Phase-out of 2G gateway switch

Sleep Mode for 4G service

5,931 integrations executed, saving approximately 320,000 kWh of energy,
reducing carbon emission of 163 t-CO2e annually
9 projects executed, saving approximately 1,080,000 kWh of energy,
reducing carbon emission of 550 t-CO2e annually
Engaged for approximately 5.03 million cell-hours in total, on the basis of
no impact to customer communications, saving approximately 290,000
kWh of energy, reducing carbon emission of 148 t-CO2e annually

Externalization of base station RRU with theuse of natural ventilation or exhaust fans

141 projects executed, saving approximately 840,000 kWh of energy,
reducing carbon emission of 428 t-CO2e annually

Other measures like communicationequipment, electricity, and air-conditioning
equipment replacement, integration, anddynamic regulation

Approximately 44.09 million kWh of electricity saved with 22,441 t-CO2e ofcarbon reduced per year

SVG construction to phase out
the conventional PSTN numbers

2.9 million aged power-consuming PSTN equipment replaced, saving 13.2
million kWh of electricity and reducing carbon emissions by 6,719 t-CO2e
per year

121

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

2G Green Energy

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Total renewable energy consumption (B)% of renewable energy consumption [A/(A+B)]

Chunghwa Telecom places great emphasis on the energy efficiency of our data centers,
and is currently implementing energy conservation measures for telecom facility
centers (including IDCs). The efficient application of our proprietary iEN smart energy
management system and Power Operation Supervisory System (POSS) for IDCs are
our scientific approach to reducing energy, carbon emission and protection of theenvironment through dynamic energy management via the Internet.

Year

GeneralConsumption(B)

Business
Consumption– Meter Rate
Lighting Service(C)

Business
Consumption– Flat Rate
Lighting Service
(D)

2007

135,180

9,420

125,151

609

6,871

126,8482022

136,525

Unit: 10,000 kWh

2020

2021

2022

10.5

11.1

2,405.0

157,5810.01 %

147,926
0.01 %

141,8101.67 %The Banqiao IDC of Chunghwa Telecom is the first world-class data center in Taiwan that is certified as TIA-942 Rated
3 and Rated 4. With the most rigorous standards and regulations ranging from architecture to electricity, machinery,
telecommunication, and information security of IDC in place, and is a model of green IDC. In order to effectively reduce therisk of IDC maintenance and enhance customer trust, we have successfully obtained the Uptime Institute M&O certification,
which is the first professional server room in Taiwan to obtain M&O certification.

7,469

4,440

121,999

123,280

Consumption
Consumptionof Meter Rateof Flat Rate
Lighting without Lighting without
Customer
Customer
Number (E)Number (F)
0

5,883

15,559

8,029

537

8,163

374

0

0

569

239

Notes: 1. B: office buildings and employee dormitories
2. C: base stations, depot, and public telephone, which are not CHT-owned property
3. D: base stations, depot, and public telephone, which are not CHT-owned property
4. E: Consumption of Meter Rate Lighting without Customer Number
5. F: Consumption of Flat Rate Lighting without Customer Number
6. A=B+C+D+E+F; the general consumption comes from CHT office buildings; the business consumption includes the Flat Rate andMeter Rate Lighting.
7. The Flat Rate is calculated based on the electricity fee. The electricity fee is converted into kWh based on the average electricity
tariff per kWh, NT$2.8458/kWh, from the"2022 Average Electricity Tariff per kWh submitted to the Electricity Tariff Review
Committee" announced by Taipower.
8. This table presents the power consumption with customer numbers and the fluctuated power consumption of equipment
without customer number, which have been included in the GHG inventory data.

122

The Social Value Guide 136

Unit: 10,000 kWh

Total Electricity
Consumption(A)

142,825

PUBLIC POLICYPARTICIPATIONThe Most Eco-friendly Data Center in the Greater China –Banqiao IDC

Power Consumption Analysis

2021

The Green Corporation Pioneer 116

Total non-renewable energy consumption (A)Energy Savings for Data Centers

150,910

The Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUE

Renewable Energy

Chunghwa Telecom has been positively supporting the government policy andapplying its extensive background knowledge in the construction of renewable energy.
By the end of 2022, the Company had 55 solar power stations around Taiwan witha total capacity of 4,658 kWp, estimated to be able to generate approximately 5.964
million kWh and reduce 3,036 t-CO2e of emissions per year.

2020

SUSTAINABILITY RISKSAND OPPORTUNITIES

Taipei IDC

Energy conservation optimization measures: Replace aged electricity and air-conditioning equipment in phases, build coldand hot aisles separately in the IDC, as well as adopt high-efficiency UPS and magnetic bearing water chiller, aiming toachieve a PUE of 1.6 or lower.

Taoyuan Low-PUE Demo IDC

The IDC was designed with the specification of a PUE of 1.5 or lower.

123

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Water Resource Management

The water use at Chunghwa Telecom is mainly for the purposes of domestic and cooling air conditioning. Aiming for anannual reduction of 1% (against the base year 2020), we executed water resources management for all sites via the "water bill
management" feature on the EARTH system. The system offers features of inquiry, analysis, and anomaly information. Also,
the water use can be reviewed regularly based on the data analysis report to raise the management efficiency. In addition, thecentralized payment of water bills is available on the system to help reduce the printing of water bills, which comes with the dual
benefits of cost-saving and carbon reduction. The reduction target for 2022 was achieved.
With the IoT technology, a "smart water meter monitoring platform" was established. The municipal water intake of buildings andthe daily water use on each floor are comprehensively monitored remotely. Also, abnormal water use is managed in a real-time
fashion to maximize the use of water resources. In addition, we actively promote various water conservation measures to improve
the water use efficiency through the following actions, including:

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Waste Management

Chunghwa Telecom understands the importance of resources reduction, recycling and reuse and has combined related reductionplans into the EARTH system. This is used to manage the use of resources and control energy efficiency, as well as to conduct
systematic management of recyclables and waste treatment. We contracted a professional waste treatment company to transport
our daily waste to landfills or incinerators for disposal. Recyclable waste is handled by a contracted cleaning company that is
responsible for classification, treatment and proper disposal.

With the amount of waste in 2020 as the baseline, we aim for an annual reduction of 2% for the domestic waste, and 100%
treatment by qualified service providers certified by the Environmental Protection Administration (EPA) for recycling, landfill, or
incineration of the industrial waste. The reduction target for 2022 was achieved.

• Install sink faucet sprayers to reduce waste• Install dual flush toilets to reduce waste

EPA• Use collected rainwater for watering office plants• Encourage the installation of water reclamation equipment in newbuildings, so that physically separated and treated sewage water canbe reused for non-potable purposes after it has reached a certain
quality standard• Water resources recycling: Underground raft foundation rainwater reclamation sys-

tem installed to collect clean rainwater from the rooftops and grounds of IDCs, alongwith installation of condensate water reclamation equipment to the air-conditioning
system for offices, so as to reclaim rainwater, shower water, air-conditioning condensate water, etc. for tree watering and washing on campus• Water resources management system: The smart water management system developed by our own

to automatically send the information of smart water meters and flow devices of different monitoring
stations back to the platform, enabling an effectively monitoring of the water use on offices and IDC
buildings and assisting in formulation of the optimal short-, medium-, and long-term water management plans to achieve the goals of sustainable water conservation and carbon reduction

Tap Water
AC Water

Reclaimed Water

2020

679,629

1,617,960
2,777

2021

598,435

1,571,508
1,534

Unit: tonnes

2022

566,165

1,609,038
7,453

Notes: 1. The reason for the increase in air-conditioning water use in 2022: the increase in IDC business, with only a slight increase in the124

overall water use of 2.388% in comparison with the business growth, nevertheless.
2. The reason for the increase in reclaimed water on offices and IDCs: the business growth of IDCs and the increase in water
reclaimed from the cooling water towers and air conditioners on IDCs.

Unit: tonnes

Item

2020

2021

2022

Total waste generated(general waste + industrial waste)

7,344.8563

8,869.9306

7,133.0176

Waste recycled/reused

3,846.6950

5,455.5190

5,220.0486

Waste landfilled

0

0

0

Waste incinerated with energy recovery

26.15

40.57

48.9

Incinerated without energy recovery

3,458.0913

3,328.9616

1,864.069

Waste otherwise disposed

13.92

44.88

0

Waste with unknown disposal method

0

0

0

Data Coverage (%)

100%

100%

100%

Notes: 1. The majority of the industrial waste of Chunghwa Telecom was waste wires and cables. Thanks to the reduced amount of

declared waste for treatment in 2022, the total amount decreased as a result.
2. Other means of disposal: Batteries containing cadmium are TCLP waste that requires treatment in line with the EPA Taiwan
regulations, which was to be treated overseas since there was no qualified service provider domestically. The waste was treatedcompleted in 2021, so the data in 2022 is 0.

125

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

The Digital Economy Motivator 72

The Creative Industry Pilot 78

Industrial Waste

Scrapped lead-acid batteries are recyclable industrial waste regulated by the EPA. With the objective of reducing pollutants andwastes, we adopt open bidding for recycling and demand the service providers to be legal service provider for treatment to ensure
the compliance in the recycling process. A total of 17,692 lead-acid batteries with a total weight of 940,039 kg were scrapped andsold for NT$14,840,153 in 2022. In fulfilling our responsibility for environmental protection, we also increased Company revenue.
The public and private waste clearance and disposal companies recognized by environmental institutions are designated to handle
the treatment of other industrial waste such as cement poles, fiber optic cables, woods, and batteries containing cadmium.
Category

Unit

Woods

Batteries containing cadmium
Disposal Fee

2020
787

Cement poles

Fiber optic cables

Total amount

tonnes

NT$ thousand

2021

2022

600

316

803

237
26

41

14

45

9,555

20,642SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

$

0

7,788

Note: Batteries containing cadmium were treated completed in 2021.

The Green Corporation Pioneer 116

Reduce:ReduceRecycleReuse

Establish a green operation and consumption model toproperly manage and reduce consumption of energy andresources, along with enhanced education and promotion
for employees, suppliers, and customers.

1
2

Reuse

Reuse:

Increase circularity and improve resource cycling
technology for resource regeneration and recycling.

Repair:Promote eco-friendly design and extension of service
life of products and offer circular products that are more
durable, easy to repair, and recyclable.

Refuse:RepairPromote green procurement, reject products with nogreen concept, and purchase products with green labels
or with an equivalent efficiency thereof.

Recycle:Facilitate an industrial chain symbiosis and develop
forward-looking energy technologies to elevate energy/
resource efficiency and promote recycling.

126

The Social Value Guide 136

3G Green Stores

Chunghwa Telecom is a highly-localized telecom company, a generous contributor
to community development, and one of the most important partners to othertelecom companys around the world. As technologies progressed and improved,
we began some operations that were outside the conventional telecom boundaries,
corporate sustainability concepts were introduced into products and services
research, development, applications, and into the Company management strategies.

In addition to developing products friendly to the environment, we have beenpromoting Green Stores and were the first telecom company in Taiwan to fully turnservice centers into Green Stores. In 2022, green revenue was NT$ 289.58 million,
which was 14.17% of the commercial products revenue.

Paperless Receipt Service

The "paperless receipt service" is comprehensively promoted. In 2022, the percentage of paperless receipts exceeded 72%,
reducing the consumption of 612 million sheets of paper, which is equivalent to reducing the felling of 55,600 trees, or reducing
11,000 metric tons of carbon emissions. Hence, it not only met customer needs, but also contributed to the mitigation of global
warming.

BS 8001 Circular Economy

In response to the UN SDG 12: Responsible consumption and production and the circular economy promotion in Taiwan's 5+2
Industrial Innovation Plan, we drive the transition to a circular economy. With BS 8001 Circular Economy guidelines introduced
in 2021, we became the first telecom operator in Taiwan that obtained the BS 8001 Conformity Statement. We proposed fivecommitments with the 5R Principle higher than the statutory requirements at home and abroad:

PUBLIC POLICYPARTICIPATIONGreen Revenue

637

49

THE CREATIONOF SUSTAINABLE VALUE

2020

2021

2022

Customer applying for e-bills (10 thousand sheets)

1,968

1,994

2,039

Ratio of customers applying for e-bills

71%

71%

72%

Quantity of paper saved (per 1,000 sheets)

590,400

598,200

611,603

Number of trees saved

53,67354,38255,600

Reduction of carbon emission volume (metric ton)

10,627

10,76811,009

1. The data of paper saved and reduction of carbon emission is by e-bills (including SMS) and combined bills.
2. Each e-bill reducing the use of envelopes and paper are 2.5 sheets of A4 paper. Total amount of paper saved: number customers
applying for e-bill×2.5×12 (month).
3. 1 sheet of A4 paper generates 18 grams of CO2 ; Carbon emission reduced: number of paper saved (1,000 sheets) ×18 grams.
4. The number of trees saved: each ton of paper pulp produced=20 trees; one ton of paper pulp=220 thousand sheets of A4 paper.
Therefore, the number of trees saved = number of papers saved÷220 thousand×20.

The Sole Telecom Company in Taiwan with Carbon Label for
Services

1. In 2020, "CHT Syntrend Store" became the first telecom company in Taiwan with Carbon Label for services (Carbon Footprint
Label No. 2014832001), certifying 400g of CO2 generated per consumer served over the counter.

2. "Paperless customer receipt and application (EMAIL)," "paperless QR-CODE number taking," "electronification for accounting
services application," and "electronification for application in external distribution channels" promoted at the stores, saving
2.23 million sheets of paper and reducing carbon footprints in customer services.
3. Replacement with "LED energy-saving lights" and "air conditioners in line with the energy-saving and environmental standards" in the stores in phases to reduce carbon emissions.

127

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

4G Green Supply ChainSUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

bility Index (DJSI)• Execution of an annual greenhouse gas inventory and acquisition of ISO 14064-1 verification andcertifications

ble Supply Chain Initiative": Implementing a series of supply
chain ESG action plans; connecting and mobilizing supplierpartners to specifically respond to the UN SDGs.

Environmental
Information
Disclosures• We were the first in the industry to join the "CDP Supply Chain

Project": We invited nearly a hundred suppliers to participate
in an international platform to submit carbon management information and improve their ability in managing carbon emissions with scientific and quantification mechanisms.

Improve Energy
Use Efficiency

5G Green Procurement

Uphold the philosophy of green procurement, we promote andgive priority to the purchase of green products that are either
environmental-certified (less polluting, recyclable, resourcesaving or green building material) or self-declared to be of lessenvironmental impact throughout the product lifecycle (fromraw material to disposal). The Company also actively participatesin green procurement programs and activities to inspire green
purchases amongst others in the industry and the public.
We planned to achieve the target of green procurement amountaccounting for more than 50% of the overall procurement in 2035.
For that, in 2018, upholding the spirit of "ISO 20400 Sustainable
Procurement – Guidance," we strengthened and practiced green
procurement mechanism via the PDCA actions of the ISO system.

Unit: NT$ million

Accounted percentage of total
procurement

18.55%

14,99422.37%

2022

17,605

Implement
Green Energy

tive and disclosed relevant information in line with the TCFD Framework

Carbon Footprint Label No. 2014832001
per person served
http://www.epa.gov.tw• Green building materials adopted for newly-established IDCs or hostels• Set up rainwater, underground, and condensed cooling water recycling systems for the reuse of water
resources• Replaced lamps in the public areas and internal office buildings with environmentally friendly LED
bulbs• Constructed 4,658.8 kWp of photovoltaic systems by the end of 2022
• Acquired 24,029 Taiwan Renewable Energy Certificate• Replaced old vehicles with environmentally friendly ones, and used electric vehicles in trials• Sponsored the construction of the YouBike station at the corner of Xinyi Road and Hangzhou SouthRoad• Promoted clean homes, energy-saving offices, car-free days, and paperless Office Document AutoAutonomous
Environmental
Protection

mation System (ODAS)• The Taiwan Energy Conservation Patrol: focus on increasing energy efficiency within small andmedium enterprises and vulnerable social institutions• Set waste reduction and recycling targets• One and only in the industry of Taiwan: Syntrend store acquired the EPA's Carbon Label for Services• Promoted e-bill with a marketing section, featuring eco-friendliness, energy-saving, and emission

400

28.67%

Notes: 1. To achieve statistical consistency, the products with Gold rating in the Electronic
Product Environmental Assessment Tool (EPEAT) have been included in the green
procurement amount since 2020.
2. For more information about Green Supply Chain and Green Procurement, pleaserefer to p.130-135.

128

Views Magazine, and Taiwan Corporate Sustainability Award)• Signed on as a supporter of the Task Force on Climate-related Financial Disclosures (TCFD) initia-

2030

bility Partner Rating System": assigning 4 tiers, Gold, Silver,
Bronze, and Participatory, to the suppliers based on their sustainability actions via the "second party audit" system executed regularly each year, laying a solid foundation for the ESG
development programs (e.g. education/training and suppliersupportive actions) that follow.

2021• Responded to the annual Carbon Disclosure Project (CDP) questionnaire• Responded to related national rating questionnaires (including Common Wealth Magazine, Global• Merged and exploited data center spaces• Adoption of efficient, energy-saving equipment to improve the PUE performance of IDCs
• PUE values of IDCs reduced year by year from 1.67 in the base year of 2020 with an aim for 1.50 by• We were the first telecom company that enforces "Sustaina-

15,525The Social Value Guide 136• Published ESG reports and disclosed environmental data to respond to the Dow Jones Sustaina-• We were the first telecom company to propose the "Sustaina-

Total green procurement

The Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATION

2022 Environmental Performance

Having been practicing various sustainable supply chain actions
since 2008, Chunghwa Telecom leads the ICT industry for asustainable, low-carbon transition. We accomplished threepioneering achievements:

2020

THE CREATIONOF SUSTAINABLE VALUE

reduction• Electronic invoicing: invoice data were prepared for permanent cloud storage to save material,human resources, and receive preferential tax treatment as an incentive and exemption from fines
by the government

Value-Added
Products andServices• iEN smart energy-saving services and promotion of energy-saving products• Cellphone recycling bins installed at the Service Centers: 10.536 metric tons of cellphones recycledwith a reuse rate of 90.19% in 2022

• Green Stores: transform 447 service centers nationwide into Green Stores• Collaboration with the Sustainable Alliance for Low-carbon Economy (SALcE) to issue the Sustainable Partnership (products, services, and organizations) Certificate

129

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

Sustainable Supply Chain

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

1stFirst telecom operator in
Taiwan to join "CDP Supply
Chain Program"

The Happiness Value Protector 82

The Green Corporation Pioneer 116

Supply Chain ESG Management Strategy

Every year Chunghwa Telecom purchases the software,
hardware and services necessary for operations frominternational and domestic suppliers. This includes
networking and data equipment, cables, marketing, design
and waste disposal services. Our enormous purchasing
power gives us a profound influence over the supply
chain,hence the responsibility to guide our suppliers in thefulfillment of their ESG. This is achieved by implementing
conduct that complies with the international supply
chain ESG standards to guide the ICT industry towards
sustainability.

2017

THE CREATIONOF SUSTAINABLE VALUESUSTAINABILITY RISKSAND OPPORTUNITIESStrategy

Integrate ESG Principles toChunghwa telecom supplierassessment

Ensure ESG conduct of
the suppliers complies
with "Chunghwa Telecom
Company, Ltd. Supplier Codeof Conduct"

2018First ICT company upholding
the spirit of ISO 20400
Sustainable Procurement –Guidance

2019"Sustainability Partner
Rating System" launched

From earlier on we have encouraged suppliers to disclose their carbon emissions and reduce them gradually. We plan toincorporate low-carbon emissions into our tender regulations: only groups with carbon emissions under a certain level canparticipate in our tendering process. Through sustainable planning, supplier evaluation and a green supply chain constructed ona hierarchical management system, we hope to achieve the following goals of sustainability: environmental protection, effective
operations and management, robust labor rights, as well as safety and health.

CHT's Sustainable Supply Chain Initiative –Sustainable Partner Certification

Chunghwa Telecom upholds its company motto and its mission as a Digital Economy Motivator and a Creative Industry
Pilot, with the "Sustainability Partner Rating System" launched in 2019, there have been 45 sustainable suppliers certified
with Gold-tier Certificates cumulatively.
On the basis of category and significance of suppliers, and pursuant to the results of second party audit by SGS, the"Sustainability Partner Rating System" classifies the suppliers into 4 tiers, Gold, Silver, Bronze, and Participatory, while
those who fail to be certified are mentored with the mechanism of improvement within a specified timeframe.

Rated suppliers shall receive a mark that corresponds to their rating, and an excellent mark will be seen as a favorable termwhen submitting a tender. We hope to compile a "Chunghwa Telecom Sustainable Supply Chain" list through evaluation,
training, audit and certification; we'd also like to lead our suppliers toward a sustainable future, improve the sustainabilityof telecom companies, business, and society as a whole, as well as keep abreast with the international trends of low-carbon
economy.

Continue communication
activities to promote supplierclimate change adaptation
measures and emissions data
management

The Social Value Guide 136

Management Target

2022 Results

Complete 100% of "tier 1 suppliers" ESG current statusassessment

100% of suppliers completed the
ESG survey questionnaire

Complete 100% of "significant tier 1 suppliers" ESG onsite visits and audits in 2025

ESG on-site visits and audit rate
reached 81%• Complete 100% of "critical tier 1 suppliers" carbon• 100% completion of carbon

management knowledge education in 2022

• Collect information on climate change and carbon
emission from suppliers at least once a year.

• Suppliers who respond to Chunghwa Telecom's CDP
Supply Chain Project questionnaire reaches 70%

management knowledge education and trainings for the"significant tier 1 suppliers"• The suppliers' response rate

to the questionnaire was 56%

The Chunghwa Telecom suppliers fall into three categories: construction work, property and service. Apart from professional
network communication equipment to be procured internationally and that the amount of which was higher for the 5G
deployment in 2021, we procured locally as much as possible to facilitate the local economic development. The domestic
procurement percentage was 97% in 2022, increased by 8% compared to the previous year.

Suppliers Analysis
Item

Number of
Suppliers

Accounted
Percentage
of Turnover

Critical tier 1 suppliers

192

82%

Tier 1 Suppliers

Critical non-tier 1 suppliers

1,915
23

99%
-

Notes: 1. Tier 1 suppliers are those that provide products or services
directly to Chunghwa Telecom with an annual procurementof ≧ NT$100 thousand.
2. Significant tier 1 suppliers are those that provide products
or ser vices directly to Chunghwa Telecom with an annual
procurement of ≧ NT$50 million.
3. Significant non-tier 1 suppliers are those that provide criticalproducts and services to CHT tier 1 suppliers, but are not
CHT tier 1 suppliers.

ESG Capacity Promotion of Suppliers

In 2022, aside from the existing Annual ESG Supplier Conference and environmental education visits, we organized ESG educationand training for suppliers, which were held online instead due to the concern of COVID-19, inviting 50 suppliers. Apart from the ESG
lecturers internally, we also invited professional ESG consultants to offer a 4-hour ESG program. With the education and training,
we expected to communicate to the suppliers our commitment to the sustainable supply chain management and Sustainable
Partner Certification system, so as to collectively bridge the supply chains of telecom industry to the international trend ofsustainability, which also come with the benefits in the ESG area.

ESG On-site Audits

To promote awareness of ESG management in supply chain partners, SGS-Taiwan has been granted to tier 1 supplier on-site
audits since 2010 in accordance with "Chunghwa Telecom Company, Ltd. Supplier Code of Conduct." The number of suppliers to
be audited was raised to 40 suppliers per year starting from 2022. We commit ourselves to 100% completion of ESG second-party
audit for our key tier 1 suppliers by 2025. To make sure all our supply chain partners will be in compliance with ESG management
requirements, our goal is to complete the sustainability rating of 140 suppliers and issue the certification mark by 2027.
CHT Management Indicator

Ratio of Tier-1 Supplier ESG Audited per Year

130

PUBLIC POLICYPARTICIPATION

Method• Supplier ESG Desk Assessment• Occupational health and safety on-site audits /engineering and cable audits• Second-party audit by the SGS-Taiwan• Significant non-tier 1 suppliers audits

Ratio

100%

131

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Overview of the Supply Chain ESG Management Results
Item

Description

2022

2021
Outcome2022
Goal

Completion of Online
Supplier ESG Survey

Suppliers with a procurement amount of NT$5 million or
above is liable to fill out the Supplier ESG Survey that covers
items of corporate ethics, labor rights, environmental management, and occupational safety and health.

95%

80%

95%

Procurement staff thatreceived ESG-related
training

It is to ensure all CHT procurement staff understand and execute faithfully the "Chunghwa Telecom Company, Ltd. Supplier Code of Conduct."

100%

100%

100%

Supplier contracts
containing ESG-related
terms

Suppliers are explicitly required to abide by the "Chunghwa
Telecom Company, Ltd. Supplier Code of Conduct" in theirprocurement contracts.

"ESG self-assessment
form for suppliers"
included in the
documentation necessary
in the tendering process

Tendering documentation stipulates that all bidders to fill out
ESG self-assessment form for suppliers; additional elaboration on improvement is required in the event of breach of laws
or regulations by suppliers.

Suppliers without
violations against laws*

Supplier ESG secondparty audit

Audits on civilengineering/ cable
contractors

On-site safety and healthinspections

132

Through second-party audit, key suppliers are ensured freefrom environmental and human right risks such as forced labor.

The Happiness Value Protector 82

100%

100%

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

The Green Corporation Pioneer 116

The first Taiwan telecom carrier to participate
in the CDP Supply Chain Project
Connecting Low-Carbon Supply Chain

After The Paris Agreement took effect, we entered an age of low-carbon economy.
Chunghwa Telecom is a carrier in the information and communicationsindustry, and this is a crucial issue of great urgency. We need to understandand respond to the impact of climate change and plan appropriate response
strategies and actions at once.

In 2017, CHT first joined the "Carbon Disclosure Project (CDP) Supply Chain
Project." We are promoting an understanding of climate change among our
suppliers and will make every effort to increase their efficiency in carbon
management. CHT is going to put an encouragement mechanism in place thatwill help suppliers with the research and development of products and services
that have less impact on climate and environment. Our three goals for the
supply chain carbon management are:1

Increase supplierawareness and knowledgeof climate change

100%

2

Collect greenhouse gas
emission information

3

Communicate andencourage(changes in the
behavior of suppliers)

Abstract of the Results of Chunghwa Telecom's 2022 "CDP Supply Chain Project"
100%

100%

100%

The ESG Management implementation status is captured via
online questionnaires.

Note: In reviewing the ESG questionnaires responded by the
suppliers, the responsible unit would also inquire if there had been
any economic, environmental, or social violation, while a persistent
failure in improvement of any incident, which resulted in fines
totaled NT$1 million or above, was deemed as a violation.

THE CREATIONOF SUSTAINABLE VALUESUSTAINABILITY RISKSAND OPPORTUNITIES

100%

96%

100%

56% of suppliers responded
to Chunghwa Telecom's
questionnaire

Chunghwa Telecom's supply
chain reduced carbon emissions
around 9,580 thousand t-CO2e

74% of supplies incorporated climatechange into long-term businessstrategic planning on average

54% of suppliers have takenenergy-saving and carbon
reduction measures

56% of suppliers have set
emission reduction goals

72% of suppliers have establishedprocedures for evaluating climaterelated risks

The Achievements of CHT's 2022 Supplier Energy Conservation Project
Types of Projects

100%

100%

100%

A total of 133 audits were carried out on 78 contractors. As of the end of 2022, 36 suppliers
were found with incidents of violation and the fines amounted to NT$631 thousand.

The occupational safety and health personnel at the branches under the Consumer BusinessGroup and the Network Technology Group conduct at least three on-site safety and healthinspections per week. Upon discovery of non-conformities, relevant departments will be
notified for corrective action tracking. A total of 8,393 inspections were conducted on 577
contractors in 2022.

Changes in Corporate Policies and Behaviors
Energy Efficiency in Buildings

The amount of
Carbon Emission Reduced(t-CO2e)

Estimated Amount of Money
Saved Each Year
(NT$ 100 Million)

41,072

283,566,590

3,117

15,494,698

Energy Efficiency in Manufacturing Processes

6,477,803

26,473,392,029

Self-produced Low-carbon Energy

23,998198,372,815

Low-carbon Energy Consumption

Waste Reduction and Material Recycling
Others

Notes: 1. Source of data: CDP

Total

2,654,682

171

380,359

9,581,202

2,597,218,897-

394,727,770

29,962,772,799

2. The amount of money saved each year was provided to CDP in terms of USD, which is converted at the exchange rate of 30.29.

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CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

The Digital Economy Motivator 72

The Creative Industry Pilot 78

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

Improvement of Suppliers' Sustainable Actions"Chunghwa Telecom Company, Ltd. Supplier Code of Conduct" clearly outlines the Company's expectations in terms of "business,
ethics, labor, environment safety and health." The guidelines apply to all suppliers that provide products or services to Chunghwa
Telecom or its subsidiaries or joint ventures, and extend to other participants of the supply chain to which the supplier is directly
or indirectly related. We hope that suppliers will commit to our values and take more proactive steps towards maintaining asustainable business ecosphere.

CHT shares resources with suppliers to help them develop R&D capabilities and future technologies. We also devote ourselvesto the creation of a friendly and innovative environment. We engage suppliers in R&D projects, reward their contributions, andmake arrangements for the transfer of acquired technology and licenses fairly. Regarding hardware, we continue to support thedevelopment of telecom facilities and testing environments; in terms of software, we utilize open platforms to share our benefits
with suppliers.

The Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Type

Description

Rewards
top-performing
suppliers

To reward top-performing suppliers, Chunghwa Telecom offers qualified suppliers the privilege of tender bond waiver when submitting tenders, as well as a reduction of the performance bond to 5% of thevalue of the contract won. This was an attempt to exert influence as an industry leader and bring more
attention to corporate social sustainability.

Training ofprofessional skills

Our Telecom Training Institute has been providing suppliers with relevant training and certification
courses to satisfy their requirements. Some of the popular courses include: cabling contractor certification, telecom line construction quality assurance certification, and fiber optic contractor training. In
2022, the institute organized 21 classes and trained 414 workers; 235 of whom had obtained certification.

*Video:2022

THE CREATIONOF SUSTAINABLE VALUE

Supply Chain Sustainable Low-Carbon Management•Collective commitment to the goal of Net Zero by 2050 with 35 significant suppliers•Ongoing organization of Sustainable Partner Certification – Sustainable Products andServices Rating, with 45 Gold-rated suppliers thus far

2016

Organized the first "Sustainable
Environmental Visit"

Formally announced the CDP Supply Chain Project membership and became thefirst domestic telecom carrier to participate on the international platform

Established the "Chunghwa Telecom Co., Ltd. Procurement Grievance Procedures"to give suppliers the means to raise complaints regarding Chunghwa Telecompurchasing activities in an open and transparent purchasing environment

2008

Published "Supplier's Environmentand Human Right Guidelines" which
asked suppliers to follow labor andenvironment regulations

134

2009

Formulated "Basic Status Survey on
CSR for Suppliers" and formally started"supply chain CSR management" with
CSR committee approval

2020• BS 8001 Circular Economy• Organization of the first ESG

conformity check passed• Ongoing organization of Sustainable
Partner Certification – Sustainable
Products and Services Rating, with
24 Gold-rated suppliers thus far

education and training event for
suppliers• Certifications of Excellence in

Sustainable Supply Chain and of
Sustainable Partner by SALcE

2019

Officially launched the sustainable
partner certification – sustainableproducts and services rating system
as well as recognized and awarded
outstanding suppliers Gold-tierCertificates" during CSR SupplierConference

2018

2017

2015

2021

2014

Commissioned SGS-Taiwan, a thirdparty inspection institution, to launchthe"Suppliers CSR second party audit

2010

Invited critical suppliers to reply tothe "Basic Status Survey on CSR for
Suppliers" and held meetings to learn
about supplier CSR compliance• Incorporation of the ISO 20400 Sustainable Procurement Standard as reference,and implement the framework of sustainable procurement• Collaborated with the Sustainable Alliance for Low-carbon Economy (SALE) to classify sustainable products and service
and incorporated "Sustainable Partner" assessment mechanism, which consists of four tiers: Gold, Silver, Bronze andParticipation. We were the first telecom company in Taiwan to implement Sustainable Partner Certification2013• Became the first telecom service provider to implement the "Supply Chain CSR Audit and Assistance"• Stipulated the "Chunghwa Telecom's Operating Guidelines for Qualifying Material Suppliers" to manage theimplementation of supplier CSR and ethical business practice2011• Announced the "Code of Corporate Social Responsibility for Suppliersof Chunghwa Telecom Co Ltd"

• Started holding "CSR Supplier Social Event Supplier CSR Interchange

Meeting" annually and the publication of the analysis results of supplier
CSR compliance2012

Required that suppliers with purchaseamounts of more than NT$ 5 million
have to complete the "Supply CSR
Status Questionnaire"

135

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

The Social Value
Guide

The SDGs CHT contributes toin this section

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

StrategyManagement

Response• Corporate volunteer action• "5G Plastic Free Day" campaign

136

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

SMARTI• The LBG assessment of investment in the community• Social Return on Investment (SROI) calculation• 5I SDGs digital inclusion initiative• Telecom universal service• Digital Good Neighbors• "Read with You"On the basis of complete digital inclusion strategy and bridging our years of experience in social inclusion, we promoted
the 5I SDGs initiative. The "5I" in the initiative, apart from being a homonym to the phrase "I Love" in Chinese, the "I"
also suggests to "achieve the SDGs via ICT" that effectively connects the SDGs with the objectives of the DIGI+ locally. By
expanding partnerships in collaboration with NPO/NGO, supporting the sharing of knowledge and technology resources,
creating a connection between the underprivileged and other diverse groups in this digital era, and realizing a win-win
situation for digital human rights and an innovative economy, technology allows us to link to the good cycle.

The Green Corporation Pioneer 116

Minimize the digital divide and create digital
opportunities

ActionChunghwa Telecom "5I SDGs" Initiative

THE CREATIONOF SUSTAINABLE VALUE

TargetShort-term:• Ongoing commitment to the universal telecom service• Situation assessment to adjust offices of "Good Digital Neighbors" as appropriate• "Winning Matches, Planting Trees" three-year afforestation projectMid- and Long-term:• Social investment will reach 0.5% of revenues by 2025

• Afforestation & tree-planting adoption across Taiwan:
150,000 trees in 8 years• Support in hotspot deployment for huge national
festivities, sports events, or other events• The Chunghwa Telecom Foundation funds NT$30

million every year to support Good Digital Neighbors
in project promotion

Indicator

GRI Social investment: NT$839,678 thousand

GRI Telecom subsidy for underprivileged groups:
NT$156,268 thousand

CHT Digital Good Neighbors: 89 locations
CHT SROI of "Read with You": NT$7.97

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, widen the scope of digital inclusion andensure 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

137

CORPORATEOVERVIEW

5I SDGs Action Results in 2022

SUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

I Technology

Corporate Volunteer
Core Competence

Utilize digital technology to promote digital equality

Action Plan

•Smart Academy

Corporate Volunteer

UN SDGs

Visually-impaired Service Team

Core Competence

Assist the visually-impaired in bridging todigital technology and services

Action Plan

•Beacon caseCore Competence

Bridging the rural-urban gap and flip education in rural areas

Action Plan

Read with You:
1 Cultivate Big Learning Buddies: 5,610 people

2 Benefited Little Learning Buddies: 3,622 people
3 Internet learning hours: 107,467 hours

UN SDGs•Digital Empowerment Incubation Program
for the Children and Adolescent Care in Lanyu•CoLab ProjectI Helping

5I SDGs Action Results in 2022
Corporate Volunteer

2030 Goals•Benefits over 600,000 visually impaired
people in Taiwan•Helping in lives and entertainment of over
200 thousand visually impaired

I Sharing• Corporate Volunteer Training: 251 people

UN SDGs•Blind aid courses

5I SDGs Action Results in 2022

The Social Value Guide 136

2030 Goals•Read with You• 40 visually-impaired individuals were benefited.
Corporate Volunteer

PUBLIC POLICYPARTICIPATION

I Learning

Love in Learning Team•GDN Little Directors

5I SDGs Action Results in 2022

The Green Corporation Pioneer 116• Little Learning Buddies: 233 people• Big Learning Buddies: 378 people• Totur hours: over 5,289 hrs

2030 Goals•Cultivate 2,000 technology education
volunteers•Technology education services for over
5 million

The Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUE

5I SDGs Action Results in 2022

• 52 sessions of Smart Academy were opened, benefiting 830 participants.
• 75 little directors were cultivated by GDN Little Directors e-course.
Technology Education TeamSUSTAINABILITY RISKSAND OPPORTUNITIESAction Plan

Community Service Team

Taiwan telecom digital collection guided tour

Promote local services as a friendly
significant neighbor•Over 50,000 Corporate Volunteer Services

Core Competence2030 Goals•Over 3 million communities stakeholders
being helped

UN SDGs

I Protecting• A total of 11,051 volunteers participated in the corporate volunteer training, Plastic
Free Festival, and the nationwide beach/mountain cleanup activities, and cleared
21.9 metric tons of waste.
Corporate Volunteer

Green Service Team

Core Competence

Save energy and reduce carbon emission
to treasure Earth with green actions

Action Plan

2030 Goals•Help reduce energy and carbon emissionsof communities over 1 million t-CO2e•Promote plastic free environmental education

UN SDGs•Eliminating marine debris•5G Plastic Free Corporate Volunteer
Sustainable Actions

138

139

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

5I SDGs Action Resultsin 2022

I Helping"I Helping" for the visually-impaired tosee the beauty of museum:
National Palace Museum

The corporate volunteers led more than 40 visually-impaired
individuals from the northern Taiwan to visit the National Palace Museum (NPM). The exclusive app "Integrated Solution of
In-depth Museum Tour for the Visually Impaired" developedin cooperation with Tamkang University was put into
good use, enabling the visually impaired to“see”
the wonderful beauty of the NPM beyond vision,
so as to elevate the technological experienceand cultural equality.

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

I Protecting

5G Plastic Free Corporate Volunteer Sustainability Action Tetralogy

Online activities: Plastic Free 88 for a Lovely Life, 5G
Plastic Free NFT Offering, 5G Plastic Free NFT official website, and 5G Plastic Free official website, etc., reaching up to
1,899,937 people.
Offline activities: Corporate volunteer training, Plastic
Free Festival, the nationwide beach/mountain cleanup activities with 21.9 metric tons of waste
removed by 11,051 participants.

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

I Learning

FJU "Read with You" Community
Network Tutoring Program

In 2022, we successfully connect 233 school children with 378 university
students, with 5,289 online learning hours.

Colab ProjectIn partnership with the Chengzhi Education Foundation, we provided quality networks for schools in KIST. Starting with the 495 students and teachers from 4 juniorhigh schools at Pinglin of New Taipei City, Emei of Hsinchu, Zhanghu of Yunlin, andSanmin of Hualien, through the mechanism of co-planning and co-delivery, we
created learning environments of better quality for the students in the rural areas.

Digital Empowerment Incubation Program
for the Children and Adolescent Care in Lanyu

In partnership with Microsoft Taiwan and World Vision Taiwan, two e-learning centers were established in Lanyu to provide digital empowerment
programs for the local teenagers and residents. With over 1,500
beneficiaries, the program elevated the digital competence andbridge the digital divide for the residents in Lanyu, where
resources were relatively limited.

I Sharing

Corporate Volunteer Training

The ideas of environmental education were promoted throughthe "5G Plastic Free Corporate Volunteer Training" to the 128 participants in Taichung and 123 participants in Kaohsiung, totaled
251 participants, with 6 hours per person, totaled 1,506 hours.

Promotion of Telecom Technology
Education via The Guided Tourby Corporate Volunteers at The NSTM:

140

Together with the National Science and Technology Museum(NSTM), we presented the permanent exhibition "Telecom@Taiwan," displaying more than 900 telecom relics. Also, the stories
were presented in the form of multimedia videos, combinedwith interactive games and guided tours by the telecom
corporate volunteers, offering visitors an in-depth
understanding of the meaning and contents
of telecommunications technology.

I Technology
Smart Academy

CHT encouraged the elderly and local citizens topartake in social activities, 52 sessions were opened in
the rural areas in Taipei, Taoyuan, Miaoli, Taichung,
Changhua, Kaohsiung, and Taitung, such as Ankeng, Sanzhi, and Pitou, promoting e-learning
activities jointly by the corporate volunteers and local citizens combined.

141

CORPORATEOVERVIEW

5I SDGs Corporate Volunteering Hours in 2022

SUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

Category

Hours

Smart Academy

75

NSTM – volunteering in ordinary days

280

CHT Nationwide Beach Cleanup Activity

11,200"I Helping" for the visually-impaired to see thebeauty of museum: National Palace Museum
Total

The Creative Industry Pilot 78

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

1,179

Taipei Marathon

5G Plastic Free Family Day

MATERIAL TOPICS
AND IMPACTS

792

329
13,855

I Technology + I Sharing –the Stronghold for the National Critical Infrastructure Protection

Chunghwa Telecom constantly evolves in "National CIP Designated Exercise for Critical Infrastructure" for 8 years in a row.
CHT was awarded the collective honor of "Outstanding Entity". President Kuo recognized by the assessors for his response
and command, was presented with the honor of "Best Commander". Chunghwa Telecom demonstrated the resiliency indisaster prevention and capacity for disaster response to the fullest, completing the response exercise that was the largest
in the types of disaster covered, the broadest in the units connected, and the most massive in the manpower mobilized over
the years.

We shall continue to better the protections for various critical infrastructure, work closely with the public and private sectors
to form joint defenses to ensure the business continuity of enterprises and the smooth communication and management of
the country.

I Protecting ＋ I Sharing –5G Plastic Free at Speed; 5G Plastic Free for Carefree

Tapping into its core technologies, resources, and competences, Chunghwa Telecom took the lead in the telecom industry,
proposing the "5G Plastic Free Day Initiative." It promoted the "Beach Cleanup and Sand Fixation" corporate volunteer
action across the country. Through the sustainability education in the manner of education in entertainment, combinedwith innovative 5G technological applications, the Company called on all people in Taiwan to jointly march on the path to asustainable mobile life that is "5G plastic free for carefree."
5G Plastic Free Corporate Volunteer Sustainability Action Tetralogy
Chapter 1: Plastic Free 88 for a Lovely Life, and 5G Plastic Free
Chapter 2: Corporate Volunteer Sustainable Action Training

Chapter 3: Plastic Free Festival

Chapter 4: Concerted National Beach Cleanup

I Technology + I Sharing: Zero Gap for Love –A Telecom Technology Tour for Students from Rural Areas

Over a hundred students and teachers from six schools in Kaohsiung City, including Shang-Ping Elementary School in
Shanlin District, Muh-Jah Elementary School in Neimen District, Ximen Elementary School in Neimen District, Gushan
Elementary School in Dashu District, Fu-An Elementary School in Meinong District, and Long-Shan Elementary School in
Meinong District, paid a visit to the "Telecom@Taiwan" exhibition and experienced the "5G Mobile Guided Tour" and various
fun technologies, so that students and teachers could better appreciate the telecom history in Taiwan via the immersive
experience powered by 5G technology. As a result, what it bridged was not only the gap between urban and rural areas, butalso the gap for love.

Contributions• Online activities: 3 Meals per day, Plastic Challenge, 5G Plastic Free NFT offering, and Plastic Free 88 for a Lovely Life,
with 5.28 million people reached• Offline activities: 3 Plastic Free Festivals organized in 2 years with 8,210 participants; 2 volunteer trainings with 295
volunteers in the seed volunteer training• 5,000 people in the nationwide beach cleanup effort to clean up 42.3 metric tons of wastes• Future prospect: Scale-up for the 5G Plastic Free campaign from domestic to overseas, projected to reach over 10
million people online and 20,000 participants offline

142

143

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Gender Equality• We value right to work and gender equality; the pay to female employees, management level or not, is equal to that of a male
employee.

• Directions for Chunghwa Telecom Sexual Harassment Prevention and Grievance Management has been stipulated to put the Act
of Gender Equality in Employment into practice.

• Appeal Review Committee has been established to handle appeals concerning discrimination against employees and other in-

No Poverty• To bridge the gap of communication and information quality between the rural and urban areas, we go into the mountains andoffshore islands to construct 4G cell sites.

• In response to the objectives of Digital Nation & Innovative Economy Development Program and Forward-looking Infrastructure
Development Program - Digital Infrastructure, actions are taken as the testimony to CHT's capacity in social inclusiveness.

• Over NT$400 million is allocated to construction and maintenance of universal telecommunication service to realize 4G in every
town and village and 100% coverage in towns and villages.

• With actions to ensure that all, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic
services.

Zero Hunger• CHT develops AI agricultural analysis model. The data is uploaded to a smart agriculture cloud platform via NB-IoT technology,
with which farmers can arrange their farming schedule accordingly.
• Through NB-IoT technology, technology is introduced to agriculture. Risks of agricultural disaster are reduced via forecast of
the future tendency of data changes, which facilitate the improvement of yield and quality of produce and achieve the goal of asmart quality agriculture.

Health and Well-being• The first telecom service provider that introduced OHSAS 18001 and TOSHMS as well as obtained certification of ISO 45001 –Occupational Health and Safety and safety management systems.

• Regular annual employee health checkups, hiring professional doctors and health managers to provide health advice, andbuilding a full range of employee care measures.
• The Mobile management tool eSafe Wizard app for occupational safety and health, introduces cloud, paperless, real time, andeffectiveness into the safety and health management.

Quality Education• Read with You Network tutoring program has been promoted joint forces with Fu Jen Catholic University since 2009, assisting

disadvantaged students in primary and middle school students in the rural areas in their schoolwork, which facilitate school
children in the rural areas in overcoming rural-urban gap and flipping their lives.

• CHT Digital Good Neighbor program sets up digital centers in 89 towns and villages across the country to promote digital applications.

• CHT's ICT expertise is leveraged to assist local organizations in rural areas or in need to establish a stable network environment
and ensure the rights to digital technology in local community.

144

appropriate conducts. There are 5 members on the committee, including 3 female members, which is over a half of the seats.

Clean Water and Sanitation

・ The water resource management nationwide is included in the EARTH system of CHT's own device to analyze and control the
consumption of water resource via big data.

Affordable and Clean Energy

・ Renewable energy has been actively developed to bridge ourselves to green energy. As of the end of 2022, CHT has installed
solar PV systems throughout Taiwan with a total capacity of 4,658.8kWp.

・ With the commitment in the green energy industry, we assisted with the two construction projects of solar power plants for a

subsidiary of Taiwan Cement and Taipower respectively, in which the solar power plant commissioned by the subsidiary of Taiwan Cement was the largest solar power plant construction project commissioned by the private sector.

・ Working with Vitec Energy Taiwan Co., Ltd., we completed two solar power plants in Yilan County. With an installed capacity of
3,000 kW in total, it is estimated to generate energy up to 3 million kWh per year, reducing approximately 1,600 metric tons ofCO2e annually.

Decent Work and Economic Growth・ The only telecom company with a labor union established and a collective bargaining agreement with it. A labor director is appointed to sit on the Board of Directors to voice the needs of employees to the top level.

・ Complete education, reasonable remuneration, and a dignified environment allow our employees to commit themselves atwork and reduce turnover rate.

・ EYE Social Innovative Call Center was established, training the visually impaired individuals into call center personnel and offering work opportunities.

Industry, Innovation and Infrastructure

・ We continue to construct the Fiber to the Home (FTTH) networks, with a coverage of 91.52% achieved in 2022, and 51.11%
achieved for the 2Gbps ultra-fast broadband network coverage, in line with the policy.

・ Upholding the spirit of digital equality, we are actively deploying mobile network in rural areas and improving network infrastructure and communication coverage in the rural areas, which is above 99.95%.

145

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Reduced Inequalities

・ We proactively protect human rights issue, stipulating our Human Right Policy with the scope of application extended to thevalue chain to specifically prohibit any form of discrimination.
・ We assure the transparency in global roaming charges and competition, support of Telecoms in developing nations, telecom
services for persons with disabilities and the freedom of speech over telecom networks.

Sustainable City and Communities

・ Using IoT, 5G, big data analysis, and AI, we assist Taiwan in constructing smart sustainable cities via smart solutions.
・ Utilization of Intelligent Operation Center (IOC).
・ Local governments can integrate individual systems of different departments, collect and analyze municipal information, andconstruct sustainable, safe, health cities with the IOC platform.

Responsible Consumption and Production

・ The first edition of CSR/ESG report was released in 2007 and has been disclosing the non-financial information of the corporationfor 16 years consecutively.

・ A green procurement strategy is fully implemented with over NT$17,605 million of green procurement amount and accountingfor 28.67% in the total procurement amount in 2022.
・ We took the initiative of supplier CSR management actions in 2008, which made us the first telecom company that promotes ESG
management for supply chain in Taiwan.
・ From Principles to Assessment, questionnaire survey, annual ESG Supplier Conference, sustainability education, and on-site
audits of suppliers in cooperation with the SGS, we improve the sustainability capacity of our supplier partners step by step.
・ Apart from introduction to ISO 20400 sustainable procurement guidance, sustainable rating label was implemented, maximizing
the influence of procurement to create new green business opportunities.

Climate Action

・ The dedicated Environmental Sustainability Task Force has been established under the Sustainable Development Committee,

tasked with stipulation of environmental sustainable development goals and incorporation of issues of carbon management in
the operation plan.

・ In 2008, we introduced ISO 14064-1 greenhouse gases management system to inventory the carbon emissions and obtain the
SGS certification each year.

・ Connect to the supply chains to promote sustainable, low-carbon supply chain practices and develop green products andservices.

・ Since 2016, approximately 50 supplier partners are led to environmental education venue to engage carbon management
training to elevate their environmental protection awareness every year.

・ We joined the CDP in 2018, and we are the first telecom company in Taiwan that signed and responded to the initiative of Task

Force on Climate-Related Financial Disclosures (TCFD). Since 2020, CHT is the first telecommunication carrier that has beencertified to the highest grade of TCFD Conformity Check for 3 consecutive years.

・ The "CHT Energy Efficiency Environmental Service" was established. We help enterprises to obtain professional knowledge and

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Life below Water

・ We leveraged the emerging 5G technology, and worked with the unmanned vessel, Marine Vacuum Cleaner, developed by
Azure Alliance to clean the plastic debris in the ocean.

Life on Land

• We worked with Dr. Jane Goodall in 2006 and formed an alliance to participate and care for environmental education and conser-

vation issues and sponsored the Jane Goodall Institute in planning, producing, and publishing the "Roots & Shoots Environmental
Education Newsletter for Children."• "Sustainable Environmental Education" initiative, firstly created in 2016, we take 50 supplier partners to the environmental education venue in 2022.

Peace, Justice and Strong Institutions• We have stipulated Ethical Corporate Management Best Practice Principles, Code of Ethics, and Procedures for Ethical Management and Guidelines for Conduct to lay out the required ethics and responsibilities.

• Guidelines for Personnel Evaluation and Standards Governing the Administrative Rewards and Discipline of Chunghwa Telecom
Personnel have been stipulated for personnel evaluation; rewards and disciplines are to be given in a timely manner.

• Safe and rigorous whistleblowing mechanism is established; the employee grievance hotline is made available in the Employee
Section on the EIP.

• Certification of Conformity to Code of Conduct by an external third party is conducted annully since 2020.

Partnership for the Goals• We connect organizations, global and local, with the corporate resources and core competences to serve specific stakeholders,
stakeholders in the rural areas, and disadvantaged stakeholders, so as to create a digitally inclusive society.

• Since 1988, we have been working with the Center of Resources for Visual Impairment of Tamkang University and dedicating ourselves to aiding the visually-impaired with telecom technologies and development of a voice-based assistance app for the convenience of their lives.

• Since 2009, we have been promoting Read with You network tutoring for over a decade joint force with Fu Jen Catholic University,
replacing roads with networks to offer schoolchildren in rural areas a hand on their schoolwork.

• Since 2015, working with the NTU Hackathon and establishing the network environment in the venue for the participants to retrieve data to produce innovative solutions.

• To help the community industries in economic autonomy, the Foundation has been working with the partners of Good Digital
Neighbors to conduct an integrated marketing and promotion of their hometown produces and giftboxes; combined with the purchasing power of our colleagues, we supported the community-based industries and spread their ideas of sustainability.

the right ways to save energy, free of charge, with our professional skills.

146

147

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

360 Degree of Digital Inclusion Actions

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Social Investment Management

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. Chunghwa Telecom devotes accessibility
to telecom services in long-term support of a government initiative to protect fundamental rights to communications.

Chunghwa Telecom refers to the community investment evaluation mechanism of the LBG (London Benchmark Group), to
conduct evaluations on the possible community benefits and business benefits before an investment made. The quantificationof the contribution of social investment allows us to make reasonable resources allocation while avoiding repetition. It helps thedecision-making and promotion of charities as well as future sponsorship.

Chunghwa Telecom Digital Inclusion Strategy and Results

Social Investment Statistics for 2022

Chunghwa Telecom
Foundation
Digital Good Neighbors

The annual investmentof Telecom universal
service is approximately
5.1 hundred million

Preferential subsidies
for the disadvantaged
groupsPreferential subsidies
Equipment supports for
major events

Minimize the Digital Divide
The Digital Good Neighbors were located in 89 places• Telephone services for more than 260,000 householdes in 87 "remote areas"
and 9 "areas considered as remote areas"• Data communication service for more than 140,000 households• Data connection service for more than 600 high schools, primary schools, andpublic libraries• Approximately 30,000 public telephones installed across 22 counties/cities• Care for 84,221 households of the disadvantaged groups, with subsidies
amounting to NT$156,268 thousand• Broadband circuit, MOD platform promotion, mobile base station vehicles,
SMS, Wi-Fi AP, temporary data circuit• The coverage rate of the 12Mbps popularization broadband service is over
91.59%Create Digital Opportunities

Chunghwa Telecom
Foundation Click Taiwan

The 13th "Click Taiwan" Program promoted the service programs in a remote mannerin response to the pandemic (including community management, online teachingfor the elderly, community video production, collaborative production of community
chronicles by students and communities, etc.) Meanwhile, the in-person flash mob
visits to local communities were organized to bridge the divide between the urban
and rural areas via the online-merge-offline (OMO) model, as young volunteers drove
common good in both urban and rural areas.

The CHT Digital
Innovative Application
SeriesThe CHT Digital Innovative Application Series has been running for 15 years topromote digital development in Taiwan.

PC education Network
tutoring

iPhone usage training courses for the visually impaired were regularly held in supportof the visually impaired assistance plan.

Assistance application
development /Employment

148• App for the Visually Impaired has been viewed over 3.35 million times since2013.

• We established the EYE Social Innovative Call Center where the visually impaired can become paid service personnel and earn their own living.

Cash Donations

Product or Service Donations

Unit: NT$ thousand
211,261
92,073

Universal Telecom Services

510,758

Corporate Volunteer Services

3,320Management Expenditures
Total

22,266

839,678

Hours ofCorporate
Volunteer
Services

48,797 hours
Percentage
of Revenue

0.039%

Minimizing the Digital Divide

Chunghwa Telecom Foundation was founded in 2006. Starting from implementing ESG and through long-term cultivation of ourcore competence to communities, tribes, urban fringe, and areas with relatively lack of resources, the Foundation is a resource
platform for connecting and arranging the good material, and further share to needed locations. It has become the strength that
supports and assists the advancement of these local areas.

Chunghwa Telecom Foundation Cultivates and Works with Communities for the Common Good

Chunghwa Telecom and Chunghwa Telecom Foundation have joined hands cultivating communities for 17 years, establishingdigital good neighbors across Taiwan to bridge the rural-urban gaps in resources, serve as the platform to connect resources, offer
resources such as community digital learning, youth volunteering, sports/ cultural/art activities, and local industries promotion,
as well as discover moving stories and local industries unique to local communities. Today, the partnering bases have been set up
across all corners of Taiwan Island and offshore islands, covering ethnic groups of Minnan, Hakka, indigenous peoples, and the
new immigrants. With the unity and connection of good neighbors, we expect a variety of residents different in ethnicity and ages
can all gain opportunities and energy from them while bridging the gap between cities and towns/villages in resources.

Promotion of Basketball Sport and Sportsmanship |Chunghwa Telecom Women's Basketball Team Gives Back to Communities

Established in 1974, Chunghwa
Telecom Women's Basketball
Team (CHT WBT) has been involved in "Love & Care Charity
Tournament Series" for 11 consecutive years since 2011, hoping
to convey the refreshing, healthy
image of CHT WBT and the ESG
philosophy of Chunghwa Telecom
via the Series. "3-on-3 Basketball
Charity Cup" and "CHT WBT Homecoming" were organized in Penghu and Tainan in 2022. Throughthe experience sharing of the starplayers on CHT WBT, we continued
to pass on the energy of positivity,
encouraging children to bravely
pursue their dreams on the path ofbasketball.

149

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

Transformation of Placemaking and Community Industries |2022 Click Taiwan Innovation Design Action

CHT Foundation saw the manpower and resource shortage locally and that the local industries were limited in terms ofdevelopment. In 2020, we promote the project of "Click Taiwan Innovative Design Action." The foundation built the local support
networks, connected teams of college students and teachers with design backgrounds and interdisciplinary experts in theindustries, and assisted in the optimization and upgrade of local industries in the spirit of co-creation. Also, the foundation invested
budgets and resources to advance the industrial development.

• The Guogang Community at the Nuannuan District of Keelung, Happiness Food Social Enterprise in Pingtung, and the Xin

Laiyi Tribe in Pingtung were assisted to flip the industrial landscapes collectively. In addition, at the end of the year, the"Result Presentation after Three Years of Click Taiwan" was organized to share with the public the tracks of efforts co-created with the local partners over the years.

• In the past 3 years, it went to 9 communities in Taitung, Pingtung, Hualien, and Keelung to collectively create design works

like co-creation of New Year's gifts, local travel guides, logo and IP designs, recycling of marine debris, space renovation,etc., offering opportunities for the workers in the local industries to elevate themselves and cultivating local talents together with the communities.

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Guogang Community in Nuannuan, Keelung & Department ofIndustrial Design, National Yunlin University of Science andTechnology• The Guogang community in Nuannuan, Keelung, enjoys an ample energy for community building. The Department

of Industrial Design, Yunlin University of Science and Technology employed the community's imagery of "Blue Magpie Wall" to design the key visual of the brand CIS in combination with the signature dishes of the local elders toopen up the road to community industry.

• For the new appearance of the community to reach more audiences and groups, the team post articles on Facebook

Page from the perspective of young people, so that the signature dishes of aunties could convey more warmth ofhome as well.

Happiness Food Social Enterprise in Pingtung &Department of Industrial Design,
National Kaohsiung University of Science and Technology• Through the agri-food education, Happiness Food Social Enterprise in Pingtung encourages the children in rural ar-eas to acquire the spirit of self-reliance in farming and raises the funds for the after-school tutoring for the children.

• The team of the Department of Industrial Design, Kaohsiung University of Science and Technology, fused the spiritof "palms down" into the produce box, visualized the promotional materials, and designed the LINE stickers, to help
the social enterprise create their brand highlights, so that consumers can better appreciate the brand concept.

Xin Laiyi Tribe in Pingtung & Department of Industrial Design,
Yunlin University of Science and Technology• Through the indigenous produce, the Xin Laiyi Tribe in Pingtung preserves the traditional culture of the tribe, promotes the culture of the Paiwan tribe, and bridges the gap between the tribe and different groups.

• The team of the Department of Industrial Design, Yunlin University of Science and Technology, employed the iconic"pinuljacengan" as the element to pack grains, utensils, recipes, and cultural stories into gift boxes, so that consumers or travelers can pack the entire tribal table to go.

• In addition, to prevent birds from pecking a huge amount of crops, the expertise of the Department of Industrial

Design was fused to design a bird-proof device in echo with the philosophy of sharing with the land in symbiosis of
the indigenous people.

Unit: NT$ dollars

2022 Social Contribution of Chunghwa Telecom Foundation

Youth
Empowerment

1,887,212

DigitalEmpowerment

3,653,318

Local
Empowerment

4,203,206

Note: The table presents the actual allocation of the funds.

150

Story
Marketing

4,025,928

CHT Women's
Basketball Team24,279,824

151

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

SUSTAINABILITY RISKSAND OPPORTUNITIESThe Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUEThe Green Corporation Pioneer 116

PUBLIC POLICYPARTICIPATIONThe Social Value Guide 136

Preferential Subsidies for the Disadvantaged Groups

Chunghwa Telecom has long been subsidizing telecom services for the socially disadvantaged, and assuring their access to basic
communications. The following are the main preferential plan and amount in 2022.
Preferential
Plan
Caring Series
Rate Plan(Mobile)• Double communication hours from the original rate plan for thevisually impaired, hearing impaired and speech impaired.

• 300 free SMS intra-network and 100 free SMS extra-network for the

hearing and speech impaired. The intra-network image telephone
rate is the same for 3G customers.

Preferential
Amount(NT$ thousand)

Beneficiaries(persons)

135

83

Broadband
Preferential
Plan forLow-income
Households

50% off on 16M/3M, 35M/6M, 60M/20M, 100M/40M, ADSL 2M/64K & ADSL
5M/384K (removed after Feb. 17) monthly rate.

36,6937,428(households)

4G Mobile Data
Plan for the
Disabled

Disabled persons are entitled to an NT$100 discounts for limited
399/436/499 plan, NT$200 discounts on monthly subscriptions whensubscribing to the 4G 599 plan and above plus Wi-Fi hotspots for freeduring the term of the contract.

65,36243,005

HeartwarmingPlan(depends on
the plan)

Broadband
Preferential
Plan for the
Disabled

152

Preferential Content

We offer exclusive discounts for cellphone purchase and SIM-only plans.
Besides the cellphone purchase discount, there are NT$100-200 discountfor the monthly subscription, free CHT Wi-Fi service, free extra data or
unlimited data, add-ons, and extra talk time, and more.

25,771• 5% off on HiNet 16M/3M, 35M/6M, 60M/20M and 100M/40M month-ly rate, 30% off for the announced rate of HiNet non-fixed monthlyplan.

• 15% off on ADSL 5M /384K monthly rate. 5% off for other speed

rates. Monthly rate for non-fixed Internet plan with fixed price discount NT$149.

18,443

20,1219,935(accounts)

Preferential
Plan

MOD Caring
Plan and
Project for
the Socially
Unfortunate

Healthy Net
Plan

Preferential Content• Platform charges: A 50% discount (NT$45/month) from the work
completion date.

• Subscribers of the projects are entitled to 30% discount, and thenormal rate after the discount period expires.

Note: The above plans all apply to the socially unfortunate and the caring
project has no time limitation, the project for the socially unfortunate
provides discounts for the first 24 months after the work completion date.

Healthy Net Plan HiNet Adult Content Gatekeeper protects children fromharmful websites such as pornography, violence, suicide, weapons,
gambling, and drugs. The service in the first year is rendered to lowincome households for free.

Preferential
Amount (NT$thousand)Beneficiaries(persons)• Caring Plan:

6,441 (2,382 accounts)• Low-income Plan:

3,319 (1,163 accounts)• Total: 9,760(3,545 accounts)

104

104

• Installed 110 cm from the floor in public areas for the convenience of the disabled.
Welfare Public • The keyboard was designed with embossing on the 5 key for the visually impaired, and a voice adjustTelephone

Message Relay
Service for
the Hearing
and Speech
Impairedment function (from 3db to 6db) was provided exclusively for people with hearing aids.

• A slot for inserting is designed on the side of an IC card for the convenience of the visually impaired.

All telephone messages will be translated and faxed to the service hotline 0800-080885 (Help Me in Chinese
homonym). The service personnel will then relay the message in voice and return the message to the hearing
and speech impaired caller (up to 80 words for the relay and up to 30 words for reply). Those who are nothearing and speech impaired may also call the hotline (0800-080880) for the relay of messages via fax to thehearing and speech impaired. The service hours are 08:00 to 21:00 daily.

153

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

The Digital Economy Motivator 72

MATERIAL TOPICS
AND IMPACTS

The Creative Industry Pilot 78

The Creation of Digital Opportunities

By utilizing our expertise in telecom technology, we will ensure that everyone shares the advantage of technology despite financial
or social standing, or geographical location. In this way we hope to quickly achieve the objective of minimizing the digital divideand creating digital opportunity. In addition to previously described action plans and subsidy, different from those of otherenterprises, we also contributed resources to developing related products and services to meet the needs of the disabled andallow them to realize their right of access to the digital technology and convenient lives.

aCommunity Network Tutoring—"Read with You"
Chunghwa Telecom has supported education and shown
its concern for rural villages ever since 2009, in theaftermath of Typhoon Morakot. We extended our service
to the permanent settlements and newly developed
communities in the disaster zones. Using visual Internet
technology, replacing roads with networks, we delivered
educational resources in the form of private tutorship inrural villages for the unfortunate.

We hope to give the children of the next generation alearning environment which is safe, dignified, and hopeful.

Goal

Characteristic

for Taiwan Rural Area Education at Fu Jen Catholic University.
the rural villages and disaster zones.

• Customized exclusive class supplements to care for the spiritual growth of schoolchildren throughTaiwan Hope Association for Children and Juvenile (the Yingge Branch and Shulin Branch), Double A PlusLove Center in New Taipei City, Taoyuan Dayuan Catholic Church, Chiayi Fu Jen High School, Childcare
Center in Tefuye, Chiayi County, Kaohsiung Daai Library, ihope Association of Tainan Assembly of God,
Pingtung Feng-Lin Church、Taitung Kaulahan Association, Taitung Citong Library, Hualien Yuli Library,Matzu High School.
the school children in rural villages. They also took care of their need for personal communicationand interaction.

• More than ten-years efforts by e-Tutor, it has helped several dozen students gain admission to na-

tional and private universities, including the National Yang Ming University and Taipei Medical University. Assistance to remote villages has really reduced the divide between the cities and counties,
radically improved the opportunities available to the children and changed their lives.

Little Learning Buddies who have been Tutored

233 persons

Big Learning Buddies as Tutors

378 persons

Tutorial Hours

5,289 hours

Note: The persons and training hours for the mid- and long-term targets for volunteers were adjusted thanks to the early attainment of the
program's targets.

154

The Social Value Guide 136

We believe humanity to be the foundation of technology innovation.
In 2013, we launched a Personal Assistance App that was specificallydesigned for the visually impaired. The App incorporates image,voice, reading, and lifestyle functions to assist both visually impaired
and elders to face some of their difficulties. We also successfully
developed "i4Blind" App in 2016 that makes a great assistant to thevisually impaired and the elderly in life. In 2022, the number of logins
hit 110 thousand with over 490 thousand viewings accumulatively.

c

EYE Social Innovative Call Center—Innovative Technology for Hope

Chunghwa Telecom has engaged in long-term cooperation with the Resource Center for the Visually Impaired at Tamkang
University. EYE Social Innovative Call Center was set up in 2011. These joint efforts led to the unveiling of the first Total Solution in
Taiwan. It includes research, development, and improvement of a computer-assisted telephone system, and its corresponding skill
development, training, supervision for the needs of the visually impaired talents to offer the phone-services.

• In 2020, we produced approximately 5,500 valid questionnaires with a yield rate over 96% on a monthly basis. In average,

the 1999 Citizen Hotline of Taipei City processed about 8,000 calls monthly with 10 external entities visiting the call center
annually, which made it a model for the other call centers.

• In 2022, 64,550 valid questionnaires were collected• University students helped the cause with one-on-one tutoring to take care of the school children in

PUBLIC POLICYPARTICIPATION

Assistance Application Development

Online education with one-on-one individual tutoring by university students helps pupils of junior highschools and primary schools in the rural villages to enhance their learning and provides equal learning
opportunities.

• University students improve the children's learning outcomes with one-on-one individual tutoring ofMajor Result

The Green Corporation Pioneer 116• With a yield rate over 96% in 2021, we produced approxi-

companionship, interaction and communication.

Participantb

The Happiness Value Protector 82

THE CREATIONOF SUSTAINABLE VALUE

By 2030, we hope to:• Assist 5,000 students in the remote areas with network tutoring.
• Accumulate more than 8,000 volunteers to participate in network tutoring.
• Accumulate more than 150,000 training hours for tutoring volunteers training.

• To realize the spirit of stakeholder engagement, we have cooperated with the Center of Care Services
MethodSUSTAINABILITY RISKSAND OPPORTUNITIES

mately 66,000 valid questionnaires in average, the 1999
Citizen Hotline of Taipei City processed about 12,000
calls monthly with 10 external entities visiting the callcenter annually, which made it a model f or the othercall centers.

throughout the year with a yield rate of over 95%.
The IPCC customer service platform was upgraded to
the IPTS counterpart, and the visually impaired callcenter operators went through the upgrade seamlessly and smoothly for services; the broadband landline
repair inquiry and broadband network repair inquiry
services were added to the call services; 1 individual with severe spinal injuries hired as the operation,
maintenance, and management personnel for thevisually-impaired-friendly apps (Voice-based Personal Assistance App, i4Blind App, and i2See App), alongwith approximately 100 Braille e-books hitting the
shelves monthly, and about 300 news articles daily.

* Videod

Automated Voice System for Donations
The automated voice system for donations
developed by Chunghwa Telecom Laboratories
has proved to be helpful for charities, social
welfare, cultural, educational, and environmental
protection institutions. It gives donors a moreconvenient means of donation. A donor simply
needs to pick up their cell phones, dial the shortcode, and follow the voice prompts to contributecare to those in need.

155

CORPORATEOVERVIEW6

SUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

Public Policy
Participation

SUSTAINABILITY RISKSAND OPPORTUNITIESPUBLIC POLICYPARTICIPATIONTHE CREATIONOF SUSTAINABLE VALUESUPPORT TO CULTURAL DEVELOPMENT		

159

I

n 2022, Chunghwa Telecom donated more than NT$ 27,890,341 in
the participation of public policy items including joining national andinternational associations, supporting government popularization services
and constructions and developing its prospective industries.

156

157

CORPORATEOVERVIEWSUSTAINABILITY VALUESTRATEGY

MATERIAL TOPICS
AND IMPACTS

SUSTAINABILITY RISKSAND OPPORTUNITIESTHE CREATIONOF SUSTAINABLE VALUE

Support to Cultural Development 156

We have joined almost 100 associations and groups to upgrade its technology and stimulate the development of the industry
through exchange and cooperation within the industry or across different industries. The table below are the representative
associations Chunghwa Telecom participates in.
Description

Taiwan Electricaland Electronic
Manufacturers'
Association(TEEMA)As one of the largest trade associations, it serves as a bridge between thegovernment and the industry as well as between the industries at home
and abroad.

MemberICT Industry Alliance(hosted by
TEEMA)As an organ under TEEMA with a focus on the ICT industry, it is a vital
platform for the domestic ICT industry players.

Participate
in related
Important
Projects

3,000

Pacific Telecommunications
Council, PTC

PTC is renowned telecom organization in the world. We have been thefounding member since 1978, with our President as the representative of
the Company at PTC.

Member441

Cross-Strait CEO
SummitStarting from caring about the development of the communicationsindustry of Taiwan, the summit facilitates the consensus of the industry
on the industrial development via its activities, extensively discusses
issues of industrial cooperation in depth, and promotes cooperation incompetition to advance the mutual benefit and co-prosperity of economy
across the Taiwan strait.

Member300

Taiwan Telecommunication
Engineering
Industry
Association

The association assembles the industry, government agencies, andacademia, serving as a platform for the communication and discussion
among the industry, government, and academia in the field. Throughthe various engineering seminars held by the association, it responds togovernment policies.

Member280

Taiwan BusinessCouncil for
Sustainable
Development,
BCSD-Taiwan

As part of the global alliance, the World Business Council for Sustainable
Development (WBCSD), it converges the power of the business
community to achieve the goal of sustainable development of enterprises
and implement various sustainable development solutions.

Director

120

Intelligent
Transportation
Society of Taiwan

To communicate with the domestic members in the industry and stayabreast with the market and business opportunities in the related fields
such as ITS intelligent transportation at home and abroad.

Member200

Taiwan Telecommunication
Industry
Development
Association,
TTIDA

158

Contribution /Qualification Membership Fee(NT$ thousand)Name of
Association

We care about the telecom industry in Taiwan and partake in Taiwan
Telecommunication Industry Development Association, TTIDA, throughthe platform of which we jointly facilitate the overall development of theindustry.

Name of
Association

PUBLIC POLICYPARTICIPATION

Description• To participate in the Telecommunications & Media Committee andContribution /Qualification Membership Fee(NT$ thousand)interact with industry members to stay abreast with the dynamics andbusiness opportunities.

4,500
AmCham Taipei• To increase the advice channels and substantive effects of the Company on telecommunications policies, put forward suggestions on government policy issues, and assist in future development.

• To understand the direction and new policies of the government by

Member120

Member15

participating in the seminars where officials from the central government are invited to elaborate on the governance, so as to aid thebusiness layout of the Company.

GSMA

We interact and exchange with the members on mobile phone system
experiences and learn about the latest development directions andtechnologies of the mobile phone systems in the world by participatingin the association's roaming platform, conferences, and international
exchange activities.

Support to Cultural Development

Chunghwa Telecom provides professional technical support such as 5G private network,
mobile edge computing, and AR/VR application technologies, making it easier for people
to enjoy digital culture and entertainment. Meanwhile, we also assist in the projects ofdomestic cultural development applications, collaborate with cultural institutions, jointly
develop digital cultural contents, and further promote the development of Taiwan's culturaland creative industries. In 2022, we allocated resources worth more than NT$80 million
cumulatively. The projects it supported include:

1. Turn Left, Turn Right. Love, or Regret at the National Theater and Concert Hall; U-Theatre Kailash Pilgrimage with performances in two different theaters simultaneously

2. Smart guided tour experience to the historic relics of the Chikan Tower in Tainan
3. "5G Digital Graffiti" of Kaohsiung City Government

4. 5G kinetic e-sports container at the Penglai Pier in Kaohsiung
Director100

5. WebAR experience at Crystal Memories of Salt of NDC

6. Interactive VR experience at Gold Museum, New Taipei City
7. Immersive 5G interactive experience at Lanyang Museum

8. WebAR guided tour application for the Indigenous People Department, Taitung County Government, Christmas event in Nantou City, and Sha Yang Ye Robot Wonderland

159

Index: GRI 2-9 Governance Structure
and Composition
Name

GenderCommittee
Participated

Number of other Significant Positions
and Commitments Held /Nature of Commitment• Chairman & CEO, Chunghwa Telecom Co., Ltd.
• Chairman, Corporate Strategy Committee• Chairman, Sustainable Development Committee• Chairman, Chunghwa Telecom Foundation

V-

Executive
IndeDirector pendence

Competencies Relevant to the Impacts of the Organization
Chairman & CEO Shui-Yi Kuo serves as the Chairman of the Sustainable Development Committee and the Chairman of
Chunghwa Telecom Foundation concurrently.
The "Sustainable Development Committee" was established to set up the company's sustainable development strategy
and promote various sustainability/ESG action plans, driving the ICT industry's sustainable low-carbon transformation,
creating a better living environment for future generations, and making more contributions to the sustainable
development of the industry and society.
With the practice of corporate social responsibility as the point of departure, Chunghwa Telecom Foundation has
been working to implement its core concepts in communities, tribes, urban fringe, and regions with relatively scarce
resources; bridge the digital divide between cities and rural communities and advance digital knowledge; support local
community industries and restore local economy; develop and document community cultures and tell local stories.

Stakeholder
Representation

Shui-Yi Kuo

Male

Corporate
Strategy
Committee

Hsiang-Ling Hu

Male

-

Political Deputy Minister, MOTC--

Ching-Hwi Lee

Female-Deputy Minister, MOC--

Shin-Yi Chang

Male• Director, Department of Accounting, MOTC
• Supervisor, Taiwan International Ports Corp.

V

-

-

V

Sin-Horng Chen

Male

• Chair Professor, Department of Electrical Engineering,
National Yang Ming Chiao Tung University• Independent Director, Chinesegamer International Corp.

-

-

V

Female-• Chairperson & Professor, Department of Political Science,
Soochow University, Taiwan• Supervisor, Central News Agency• Director, Transparency International Chinese Taipei, underTransparency International--

FemaleCompensation
Committee, Audit
Committee-

V

Chung-Chin Lu

Male

Audit Committee,
Corporate Strategy
Committee• Professor, Electrical Engineering Department, National
Tsing Hua University• Director, National Science & Technology Center for
Disaster Reduction-

V

Yi-Chin Tu

Male

Audit Committee,
Corporate Strategy
Committee• Chairman of Taiwan AI Labs & Foundation• Director, Taiwan Creative Content Agency

-

V

Male

Audit Committee
Compensation
Committee,
Corporate Strategy
Committee• Chairman, Audit Committee• Professor, Department of Accounting, College of Management, National Taiwan University• Independent Director, Taiwan Fertilizer Co., Ltd.

-V

Chia-Chung Chen

Male

Audit Committee
Compensation• Independent Director, Dimerco Data System Corporation• Director, Mega Financial Holding Co., Ltd.
Committee,
Corporate Strategy • Director, Mega International Commercial Bank Co., Ltd.
Committee-V

Shih-Hung Tseng

Male

Corporate Strategy
Committee--

Hsiu-Chuan Tsai

Yu-Fen Lin

Su-ming Lin

Corporate
Strategy
Committee

Notes: 1. There are no under-represented group.

160• Chairman, Compensation Committee• Managing Partner, Lex & Honor Attorneys-at-Law• Independent Director, SINBON Electronics Co., Ltd.
• Independent Director, Bank SinoPac Co., Ltd.

2. Tenure: 2022/5~2025/5.

Director Hsiu-Chuan Tsai specializes in government governance, anti-corruption, and transparent governance,
government and policy marketing, etc. She is currently serving as a director to Transparency international Chinese
Taipei (TICT). The crucial mission of TICT is to promote transparency in the government and integrity in the society in
Taiwan, thereby fulfilling its purpose of improving the quality of democracy and the national competitiveness in Taiwan.
With her expertise and work experience, Director Tsai has provided advice to the Board of Directors multiple times on
anti-corruption and organizational development.

V

V

V

The independent director Chung-Chin Lu concurrently serves as the director of the National Science and Technology
Center for Disaster Reduction. His expertise is sufficient to assist in providing relevant consultation on disaster reduction
efforts, accelerating the research, development, and implementation of disaster reduction technology as well as
strengthening disaster reduction policies and measures.

The independent director Yi-Chin Tu is the founder of Taiwan AI Labs. Formerly the Chief R&D Officer at Asia Pacificregion of Microsoft, the head of the senior programming group of the National Human Genome Research Institute(NHGRI) at the U.S. National Institutes of Health (NIH), and the founder of PTT Bulletin Board System, Tu possesses
expertise and industry experience in line with the competences we need to drive emerging businesses.

-

-

-

The independent director Chia-Chung Chen is equipped with the professional competence and experiencesin risk management as recognized by MSCI.

-

V

161

GRI Standard Index
Statement of Use
GRI 1 Used

The reporting organization, Chunghwa Telecom Co., Ltd. has reported the content for the period
from January 1, 2022 to December 31, 2022 in accordance with GRI standard.
GRI 1: Foundation 2021

GRI Standards

Disclosure Items

GRI 2: General Disclosure 2021

The organization and its reporting practices
2-1

Organizational details

1

2-3

Reporting period, frequency and contact point

1

2-2
2-4
2-5

Entities included in the organization's
sustainability reporting
Restatements of information
External assurance

Activities and workers
2-6

2-7
2-8

Governance
2-9

2-10

Activities, value chain and other business
relationships

Employees

Workers who are not employees

Governance structure and composition

Nomination and selection of the highest
governance body1
None

168-170

15

85-87
87

18
18

Chair of the highest governance body18

Role of the highest governance body in overseeing
the management of impacts

29

2-13

Delegation of responsibility for managing impacts

29

2-14

Role of the highest governance body insustainability reporting

29

2-15

Conflicts of interest

21

2-16

Communication of critical concerns

18

2-17

Collective knowledge of the highest governance
body

29

2-11
2-12

2-18

Evaluation of the performance of the highest
governance body

22

Remuneration policies

82-84

2-20

Process to determine remuneration

82-84

2-21

Annual total compensation ratio

2-19

162

Page /
Comment

84

Requirement

Omission
ReasonExplanation

GRI Standards

Disclosure Items

Page /
Comment

2-22

Statement on sustainable development strategy

4-5

2-23

Policy commitments

24-25

2-24

Embedding policy commitments

24-25

2-25

Processes to remediate negative impacts

26

2-26

Mechanisms for seeking advice and raisingconcerns

25

2-27

Compliance with laws and regulations

27

2-28

Membership associations

156

Requirement

Omission
ReasonExplanation

Stakeholder engagement
2-29

Approach to stakeholder engagement

2-30

Collective bargaining agreements

48-51
89

GRI 3: Material Topics 2021
3-1

Process to determine material topics

40-41

3-2

List of material topics

42-45

3-3

Management of material topics

46-47

GRI 202: Market Presence 2016
202-1

Ratios of standard entry level wage by gendercompared to local minimum wage

86

202-2

Proportion of senior management hired from thelocal community86

GRI 204: Procurement Practices 2016
204-1

Proportion of spending on local suppliers131

GRI 205: Anti-corruption 2016
205-1

Operations assessed for risks related to corruption

205-2

Communication and training about anticorruption policies and procedures

205-3

Confirmed incidents of corruption and actions
taken

26
24-25
26

163

GRI Standards

Disclosure Items

Page /
Comment

GRI 305: Emissions 2016
305-1

Direct (Scope 1) GHG emissions

64

305-2

Energy indirect (Scope 2) GHG emissions

64

305-3

Other indirect (Scope 3) GHG emissions

64

305-4

GHG emissions intensity

305-5

Reduction of GHG emissions

64

305-6

Emissions of ozone-depleting substances (ODS)

64

305-7

Nitrogen oxides (NOx) sulfur oxides (SOX), and othersignificant air emissions

64

Requirement

Omission
ReasonExplanation

SUSTAINABILITY ACCOUNTING STANDARDS BOARD DISCLOSURE

For the content and page numbers, please visit the official website of Chunghwa Telecom: Sustainability/ESG: SASB Report
Table 1. Sustainability Disclosure Topics & Accounting Metrics
SASB Topic

SASB CodeEnvironmental
Footprint of
Operations

TC-TL-130a.1

1. Total energy consumed
2. Percentage grid electricity
3. Percentage renewable

TC-TL-220a.1

Description of policies and practices relating to behavioral advertising andcustomer privacy

4

TC-TL-220a.2

Number of customers whose information is used for secondary purposes

5

TC-TL-220a.3

Total amount of monetary losses as a result of legal proceedings associatedwith customer privacy

5

TC-TL-220a.4

1. Number of law enforcement requests for customer information
2. Number of customers whose information was requested
3. Percentage resulting in disclosure

5

TC-TL-230a.1

1. Number of data breaches
2. Percentage involving personally identifiable information (PII)
3. Number of customers affected

7

TC-TL-230a.2

Description of approach to identifying and addressing data security risks,
including use of third-party cybersecurity standards

7

TC-TL-440a.1

1. Materials recovered through take back programs, percentage of recovered materials that were
2. Reused
3. Recycled
4. Landfilled

9

TC-TL-520a.1

Total amount of monetary losses as a result of legal proceedings associated with anti-competitive behavior regulations

10

TC-TL-520a.2

Average actual sustained download speed of
1. Owned and commercially-associated content
2. Non-associated content

10

TC-TL-520a.3

Description of risks and opportunities associated with net neutrality, paid
peering, zero rating, and related practices

11

TC-TL-550a.1

1. System average interruption frequency and2. Customer average interruption duration

12

TC-TL-550a.2

Discussion of systems to provide unimpeded service during service interruptions

1264, 119, 121

Data Privacy

GRI 308: Supplier Environmental Assessment 2016308-1

New suppliers that were screened using environmental
criteria

131

308-2

Negative environmental impacts in the supply chain andactions taken

131

Data Security

GRI 405: Diversity and Equal Opportunity 2016405-1

Diversity of governance bodies and employees

405-2

Ratio of basic salary and remuneration of women to men

18, 85-86
86

Product
End-of-life
Management

GRI 407: Freedom of Association and Collective Bargaining 2016

(Not material topic, disclosure as required by government policy)

407-1

Operations and suppliers in which the right to freedom of
association and collective bargaining may be at risk

None

GRI 416: Customer Health and Safety 2016
416-1

Assessment of the health and safety impacts of productand service categories

107-109, 114

416-2

Incidents of non-compliance concerning the health andsafety impacts of products and services

None

GRI 418: Customer Privacy 2016
418-1

164

Substantiated complaints concerning breaches ofcustomer privacy and losses of customer data

None

Competitive
Behavior &Open Internet

Managing
Systemic Risks
from
Technology
Disruptions

Accounting Metric

Page
3

165

Table 2. Activity Metrics
SASB Code

Activity Metric

Page

TC-TL-000.A

Number of wireless subscribers

13

TC-TL-000.B

Number of wireline subscribers

13

TC-TL-000.C

Number of broadband subscribers

13

TC-TL-000.D

Network traffic

13

Taiwan Stock Exchange Corporation Rules Governing the Preparation
and Filing of Sustainability Reports by TWSE Listed Companies

No.

Disclosure Items

Execution

1

Description of the oversight and governance by the Board of Directors and the
management on climate-related risks and performance58

2

Description of how the identified climate risks and opportunities affect thebusinesses, strategies, and finances of the Company (in the short, medium, andlong term)

61

3

Description of the financial impact arising from extreme weather events andtransitional actions

61

4

Description of how the climate risk identification, assessment, and management
processes are integrated into the overall risk management system

58-59

5

Description of the used scenarios, parameters, assumptions, analysis factors, andmain financial impacts if scenario analysis is used to analyze or assess the resilienceagainst climate change risks

60

6

Description of the content as well as the metrics and targets used to identify andmanage physical risks and transition risks for any transition plan to respond or
manage climate-related risks

62-63

Sustainability Disclosure Metrics – Communication Network Industry
No.

Disclosure Items

1

Total energy consumed, percentage of purchased
electricity, and rate of renewable energy use

5,191,758 GJ/ 94.67%/ 1.67%

2

Total water withdrawal and total water consumption

2,175,203M3/ 2,167,750M3

3Weight of hazardous waste generated and percentage
recycled

940t, 100%

4

Description of categories of and the number of people
and rate subject to occupational accidents

Traffic accidents, fall, tumble/ 36 cases/ 0.9%

Disclosure of life cycle management of products:
including the weight of end-of-life products and e-waste
and the percentage recycled

10.536t/ 90.19%

6

Description of the risk management associated with theuse of key materials

Critical materials including scrapped lead-acidbatteries, cement poles, fiber optic cables, woods,
and batteries containing cadmium in Telecom IDCs
are entrusted to a private waste disposal organization
approved by the environmental protection authority
for treatment, and therefore, there is no actual or
potential significant environmental/social risk.

7

Total amount of monetary losses as a result of legal
proceedings associated with the act of anti-competitive
behaviors

None

8

Production of major products by product category

Please refer to p.15 of the ESG Report

5

166

MetricDisclosure of Climate-related Information
for TWSE/TPEx-Listed Companies

Description of the basis for pricing if an internal carbon price is used
78

Note: The price of internal carbon pricing is set based on international viewpoints, suchas the additional expenditure on renewable energy required to achieve the carbon
reduction target, the European Union's CBAM price, and the World Bank's proposed
carbon price, etc. After a comprehensive evaluation, the price is set at NT$1,600/ton ofcarbon.

Description of the activities covered, scope of greenhouse gas emissions,timeframes planned, annual progress and so on if climate-related targets areset; description of the sources and quantity of carbon credits or the quantity of
renewable energy certificates (RECs) for offset if carbon offset or RECs are employedto achieve relevant targets

29

117-119

GHG inventory and assurance

9

Notes:
1. Basic information: Companies with capitalization of $10 billion or more
2. At least one disclosure should be made in accordance with the requirements of thesustainable development path of listed companies: Inventory of parent company
3. Assurance agency: TÜV SÜD

64

167

Assurance Statement

ASSURANCE STATEMENTSGS TAIWAN LTD.’S REPORT ON SUSTAINABILITY ACTIVITIES IN THE
CHUNGHWA TELECOM CO., LTD.’s ESG REPORT FOR 2022
NATURE AND SCOPE OF THE ASSURANCE/VERIFICATIONSGS Taiwan Ltd. (hereinafter referred to as SGS) was commissioned by CHUNGHWA TELECOM CO., LTD.
(hereinafter referred to as CHT) to conduct an independent assurance of the ESG Report for 2022 (hereinafterreferred to as the ESG Report). The scope of assurance is based on the SGS Sustainability Report Assurance
methodology and AA1000 Assurance Standardv3 Type 2 High level to assess whether the text and data inaccompanying tables contained in the report and complies with the GRI Universal Standard (2021) and AA1000
Accountability Principles (2018) and Sustainability Accounting Standards Board (SASB) during on-site verificationin the period between 20th April 2023 to 1st June 2023 in CHT headquarter. The boundary of this report includes
CHT Taiwan operational and service sites' specific performance data included the sampled text, and data inaccompanying tables, contained in the report presented. SGS reserves the right to update the assurance
statement from time to time depending on the level of report content discrepancy of the published version fromthe agreed standards requirements.
INTENDED USERS OF THIS ASSURANCE STATEMENT
This Assurance Statement is provided with the intention of informing all CHT’s Stakeholders.
RESPONSIBILITIESThe information in the CHT’s ESG Report of 2022 and its presentation are the responsibility of the directors or
governing body (as applicable) and management of CHT. SGS has not been involved in the preparation of anyof the material included in the ESG Report.
Our responsibility is to express an opinion on the report content within the scope of verification with the intention
to inform all CHT’s stakeholders.
ASSURANCE STANDARDS, TYPE AND LEVEL OF ASSURANCEThe SGS ESG & Sustainability Report Assurance protocols used to conduct assurance are based uponinternationally recognized assurance guidance and standards including the principles of reporting processcontained within the Global Reporting Initiative Sustainability Reporting Standards (GRI Standards) GRI 1:
Foundation 2021 for report quality, GRI 2 General Disclosure 2021 for organisation’s reporting practices and otherorganizational detail, GRI 3 2021 for organisation’s process of determining material topics, its list of material topics
and how to manages each topic, and the guidance on levels of assurance contained within the AA1000 series ofstandards and/or ISAE3000.
The assurance of this report has been conducted according to the following Assurance Standards:

Assurance
Standard
Options

Level of AssuranceA

SGS ESG & SRA Assurance Protocols (based on GRI Principles and guidance inAA1000)B

AA1000ASv3 Type 2 High
(AA1000AP Evaluation plus evaluation of Specified Performance Information)

SCOPE OF ASSURANCE AND REPORTING CRITERIA
The scope of the assurance included evaluation of quality, accuracy and reliability of specified performance
information as detailed below and evaluation of adherence to the following reporting criteria:

Reporting Criteria Options
1

GRI Universal Standard (2021) (In Accordance with)

2

AA1000 Accountability Principles (2018)3

SASB(TELECOMMUNICATION SERVICES INDUSTRY STANDARD, VERSION 2018-10)

4<IR> Framework (Chinese version 2015)






evaluation of content veracity of the sustainability performance information in relation to the determinedmaterial topics at a high level of scrutiny for CHT and moderate level of scrutiny for subsidiaries, joint
ventures, and applicable aspect boundaries outside of the organization covered by this report;
AA1000 Assurance Standard v3 Type 2 evaluation of the report content and supporting management
systems against the AA1000 Accountability Principles (2018); andevaluation of the report against the requirements of Global Reporting Initiative Universal Standard 2021
(GRI 2, GRI 3, 200, 300 and 400 series) claimed in the GRI content index as material and in accordancewith.
evaluation of the report against the SASB Disclosures and Metrics included in the
TELECOMMUNICATION SERVICES INDUSTRY STANDARD, VERSION 2018-10 and conductedalongside an evaluation of accuracy assurance at moderate level of scrutiny.
evaluation of the report against the IIRC International <IR> Framework (Chinese version 2015)
requirements for content elements.

ASSURANCE METHODOLOGY
The assurance comprised a combination of pre-assurance research, interviews with relevant employees,
superintendents, ESG committee members and the senior management in Taiwan; documentation and record
review and validation with external bodies and/or stakeholders where relevant.
LIMITATIONS AND MITIGATION
Financial data drawn directly from independently audited financial accounts, and Task Force on Climate-related
Financial Disclosures (TCFD) related disclosures has not been checked back to source as part of this assurance
process.
STATEMENT OF INDEPENDENCE AND COMPETENCEThe SGS Group of companies is the world leader in inspection, testing and verification, operating in more than
140 countries and providing services including management systems and service certification; quality,
environmental, social and ethical auditing and training; environmental, social and sustainability report assurance.
SGS affirm our independence from CHT, being free from bias and conflicts of interest with the organisation, its
subsidiaries and stakeholders.
The assurance team was assembled based on their knowledge, experience and qualifications for this assignment,
and comprised auditors registered with ISO 26000, ISO 20121, ISO 50001, SA8000, RBA, QMS, EMS, SMS,
GPMS, CFP, WFP, GHG Verification and GHG Validation Lead Auditors and experience on the SRA Assurance
service provisions.
VERIFICATION/ ASSURANCE OPINION
On the basis of the methodology described and the verification work performed, we are satisfied that the specified
performance information included in the scope of assurance is accurate, reliable, has been fairly stated and has
been prepared, in all material respects, in accordance with the reporting criteria.
We believe that the organisation has chosen an appropriate level of assurance for this stage in their reporting.
AA1000 ACCOUNTABILITY PRINCIPLES (2018) CONCLUSIONS, FINDINGS AND RECOMMENDATIONS
Inclusivity
CHT has demonstrated a good commitment to stakeholder inclusivity and stakeholder engagement. A variety ofengagement efforts such as survey and communication to employees, customers, investors, suppliers,
sustainability experts, and other stakeholders are implemented to underpin the organization's understanding ofstakeholder concerns. For future reporting, CHT may proactively consider having more direct two-ways
involvement of stakeholders during future engagement.

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Materiality
CHT has established effective processes for determining issues that are material to the business. Formal review
has identified stakeholders and these issues that are material to each group and the report addresses these at
an appropriate level to reflect their importance and priority to these stakeholders.
ResponsivenessThe report includes coverage given to stakeholder engagement and channels for stakeholder feedback.
ImpactCHT has demonstrated a process on identify and fairly represented impacts that encompass a range ofenvironmental, social and governance topics from wide range of sources, such as activities, policies, programs,
decisions and products and services, as well as any related performance. Measurement and evaluation of its
impacts related to material topic were in place at target setting with combination of qualitative and quantitative
measurements.
GLOBAL REPORTING INITIATIVE REPORTING STANDARDS CONCLUSIONS, FINDINGS AND
RECOMMENDATIONS
The report, CHT’s ESG Report of 2022, is adequately in accordance with the GRI Universal Standards 2021andcomplies with the requirements set out in section 3 of GRI 1 Foundation 2021, where the significant impacts on
the economy, environment, and people, including impacts on their human rights are assessed and disclosed
following the guidance defined in GRI 3: Material Topic 2021, and the relevant 200/300/400 series Topic Standard
related to Material Topic have been disclosed. For future reporting, it is recommended to have more descriptions
on how the organization has applied due diligence as a method for the identification and the evaluation of its
impacts on the economy, environment, and people, including impacts on their human rights as well as the role ofthe highest governance body in overseeing these processes. In addition, an effective data management
optimization is expected to be set in place which is for CHT to enhance the disclosure information reliability andits data quality.
SASB CONCLUSIONS, FINDINGS AND RECOMMENDATIONSCHT has referenced with SASB’s Standard, TECHNOLOGY & COMMUNICATIONS SECTORTELECOMMUNICATION SERVICES INDUSTRY STANDARD, VERSION 2018-10 to disclose information ofmaterial topics that are vital for enterprise value creation. The reporting boundary is the same as CHT’s ESG
report. CHT used SASB accounting and activity metrics to assess and manage the topic-related risks andopportunities, where relevant quantitative information was assessed for its accuracy and completeness to support
the comparability of the data reported. CHT has determined which disclosure topics and associated metrics arefinancially material to its business and has illustrated appropriately in the content index. By using both GRI and
SASB standards together, the efficiency of communication and the identification of material issues aresubstantially increased during the whole reporting preparation process. Besides, it is best practice to implementa gap analysis and comparison of reported issues and benchmark within or across sectors in next reporting.

Signed:For and on behalf of SGS Taiwan Ltd.

Stephen Pao
Knowledge Deputy General Manager
Taipei, Taiwan
27 June, 2023
WWW.SGS.COM

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