About FET Report Cycle and Period

About FET
About
FET
Contents
Contents

This is the twelfth Sustainability Report published by Far EasTone (FET) Telecommunications
Co., Ltd. and its subsidiaries. FET publishes its Sustainability Report annually, disclosing
financial and nonfinancial information of FET in 2022 (January 1, 2022 to December 31,2022). The report includes management approach, major issues, performance, supply
chain, environmental and social information, and is made publicly available on the FET's
website.
Previous report publication date: June 2022
Current report publication date: July 2023
Next report estimated publication date: June 2024

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

The reporting period of the report is consistent with the consolidated financial statements.
For the sake of completeness and comparability of the report, some content will include
information before January 1, 2022, and after December 31, 2022, with relevant notes
provided in those sections to explain the details.
Reporting Boundary

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

The boundary of the report encompasses FET Telecom, the parent company; as wellas two key subsidiaries, New Century InfoComm Tech Co., Ltd. (NCIC) and ARCOA
Communications Co., Ltd.(ARCOA).The revenues of these three companies constitute
89.7% of FET's consolidated revenue. Financial data presenting the business performance
included in the report is derived from the CPA-audited consolidated financial report for
FET and its subsidiaries. For information on FET's individual and affiliated entities, as wellas investments, please refer to the 2022 Annual Report.
As an extraordinary general meeting of NCIC in 2010 agreed to entrust all of its
operations to its parent company, FET, all references to"FET Telecom"or"the company" inthis report refer to FET itself and NCIC. Where individual entities are not explicitly specified
in this report, FET should be taken to refer to all entities within the report boundaries,
namely FET, NCIC and ARCOA. The scope of information and data in this report includes
the financial and non-financial performance of these three companies. All subsidiaries
share office buildings with FET except for Nextlink Technology, the environmental datain this report constitute 100% of FET's consolidated revenue. Some of the financial
information sourced from consolidated information of FET and its subsidiaries will bemarked as consolidated accordingly. Any changes to the scope or calculation methods ofinformation and data are explained in corresponding chapters, and data from previous
years will have been recalculated accordingly.

Committee is responsible for the overall planning, communication, integration, andpreparation of the annual sustainability report. The content of the report is reviewed
by the heads of business units and finally approved by the company president before
finalization. The overall management and execution process of the report also undergointernal audit procedures at FET to ensure compliance with regulatory requirements andproper implementation.
Reporting Guidelines and Third-party Assurance
The format of this report follows the international reporting standards and frameworks:
The International Integrated Reporting(IR) Framework published by The Value Reporting
Foundation.
The GRI Sustainability Reporting Standards issued by the Global Reporting Initiative (GRI).
The Sustainability Accounting Standards Board (SASB) guidelines for thetelecommunications industry.
The Task Force on Climate-Related Financial Disclosures (TCFD) recommendations
published by the Financial Stability Board (FSB).
This report has been assured by the independent auditing firm, Green Mountain
Sustainability Consulting Co., Ltd. to confirm that the disclosure content aligns with the
GRI Standards and complies with the Taiwanese Assurance Standards on Non-Historical
Financial Information (TWSAE 3000) "Limited Assurance Engagements Other Than
Audits or Reviews of Historical Financial Information" (developed with reference to theinternational assurance standard ISAE 3000). The report also addresses the requirementsof the International Integrated Reporting Framework.
If you have any questions regarding the content of this report,
please contact the following:

Address : No. 468 Ruiguang Rd., Neihu District, Taipei City
Tel : +886-2-7723-5000 Corporate Communication & Social Responsibility
Division of President Office
Email : FETCSR@fareastone.com.tw
FET Stakeholders

FET CSR Website

FET CSR Survey

Report Management and Auditing
The report follows the " Rules Governing the Preparation and Filing of Sustainability
Reports by TWSE Listed Companies " issued by the Taiwan Stock Exchange and theinternally established "Sustainable Development Best Practice Principles" The FET ESG
2022

Far Eastone Sustainability Report01About FET
About
FET

01

About FET

02

Contents

03

Message from Management052022 ESG Highlights

Contents
Contents
Message from
Messagefrom Management
Management

Corporate
Governance

01

Smart
Sustainability

02

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

09

1.1 About FET

57

2.1 Sustainability Impact Assessment

13

1.2 Sustainable Governance60

2.2 Smart Applicationst29

1.3 Corporate Governance63

2.3 Smart Living

50

1.4 Most Considerate Services

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Environmental
Sustainability

03

Social Inclusion

04

Appendix

Appendix
Appendix126

ESG Data

100 4.2 Talent Development

138

GRI Standards index

110 4.3 Human Rights Management

143

SASB index

3.3 Environmental and Energy Management

111 4.4 Employee Care and Communication

144

TCFD Index

82

3.4 Sustainable Supply Chain

113 4.5 Employee Health and Workplace Safety

145

Appendix A

90

3.5 Base Station and Electromagnetic
Fields Management

116 4.6 Industry Infrastructure

147

Third-Party Assurance Statement

66

3.1 Climate Strategy

9273

3.2 Overview of FET's Environmental
Footprint

74

2022

4.1 Human Resource Management

118 4.7 Charity Care Projects
Far Eastone Sustainability Report02Message from Management

Douglas Hsu, Chairman

Chee Ching, President

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix"FET Connects You and Your World, Enriches Your Life and Protects Our Earth.” is FET's corporate vision. FET focuses on ESG (Environment, Society, Governance) and has planned threemajor sustainability strategies:"Driving the Environmentally friendly value chain", "Building a distance-free and inclusive Society", and "Embracing the future of smart sustainability".
FET is also actively transforming and upgrading its core ICT capabilities, deeply cultivating key technological areas such as smart cities, smart manufacturing, digital transformation, lowcarbon operations, consumer applications, and smart healthcare. By collaborating with seven key stakeholders, including customers and suppliers, FET aims to achieve a triple-win goal
for the company, society, and the environment. In 2022, our efforts in promoting ESG have been recognized by various domestic and international sustainability rating agencies. We haveachieved several accolades, including: Consistently ranking in the top 5% in the Taiwan Stock Exchange Corporate Governance Evaluation for eight consecutive years, demonstrating ourcommitment to good corporate governance. Being selected as a component stock of the Dow Jones Sustainability Indices (DJSI) for seven consecutive years, affirming our sustainability
performance. Being the only telecommunications company in Taiwan to be recognized as a global "Leadership" telecommunications industry player in the CDP Supplier Climate Change
Response Management Performance, placing in the top 8% globally for three consecutive years. Receiving the ESG Enterprise Sustainability Award Model Award from Common Wealth
Magazine for six consecutive years, showcasing our excellence in ESG practices. Being the only telecommunications company in the industry to receive the 2022 "Outstanding Sustainable
Resilience Award" from the British Standards Institution (BSI), highlighting our commitment to sustainability and resilience. Winning the 2022 Digital Transformation Revolution Awards for"Excellence in Operational Transformation - Model Award" and "ESG Special Award," recognizing our outstanding achievements in digital transformation. These exceptional achievements
represent FET's ambitious goals and tangible results in promoting sustainable development.
Furthermore, thanks to the collective efforts of all FET employees, the operational performance in 2022 was impressive. The annual growth rates for consolidated total revenue, consolidated
EBITDA (earnings before interest, taxes, depreciation, and amortization), and net income were 4.5%, 9.3%, and 22.1% year-on-year growths, respectively. This amounted to NT$89.15
billion, NT$30.79 billion, and NT$9.61 billion for the year. Both EBITDA and net income reached new highs in nearly five years. In 2022, FET's earnings per share (EPS) reached NT$2.95,
surpassing the financial forecast. The achievement rates for total revenue, EBITDA, and EPS financial estimates were 100.4%, 101.1%, and 104.2%, respectively. This indicates that FET'sfinancial performance outperformed expectations across these key metrics. In addition to striving for revenue growth and continuously creating maximum value for shareholders, FET iscommitted to fulfilling its corporate social responsibility. In 2022, FET issued Taiwan's first-ever " Corporate Sustainability Bonds" in the telecommunications industry, amounting to NT$2.7
billion. This bond issuance marked the largest single fundraising amount for social responsibility bonds in Taiwanese currency, demonstrating FET's determination to balance both "revenue
growth" and "sustainable development."

2022

Far Eastone Sustainability Report03About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

FET adheres to its core values of continuously providing innovative application services
and delivering excellent customer experiences. In recent years, the company has been
actively building its "FET 5G" network. FET’s Mobile Circle app has surpassed 5 million
downloads, and in 2022, the company achieved a 5G network coverage rate of 97%
across Taiwan. Building upon this niche, FET focuses on two main pillars: "Consumer
Digital Lifestyle" and "Enterprise Intelligent Transformation." The company continues todeepen its core capabilities and applications in 5G's "Big, AI, and IoT" (Big Data, Artificial
Intelligence, and Internet of Things), achieving a high annual growth rate of 18% in new
economy revenue. FET also collaborates with key enterprise partners to continuously
develop innovative smart technologies and solutions. For example, in partnership with
Ericsson, FET has launched the first 5G SA network slicing commercial case in Taiwan,
known as the "5G Smart Patrol Cars"." Additionally, in collaboration with the global
cybersecurity technology giant Allot, they have introduced the "FET SecureNet Service"
FET has also deepened its strategic alliance with Microsoft by joining forces in the Foursided Initiative. Furthermore, in 2022, FET successfully mentored 20 startups throughFET’s 5G Metaverse Accelerator" in the areas of ESG, Telemedicine, Smart Factory,
Smart Retail, Smart Finance and consumer applications where business potential totaled
up to exceed NT$100mn.
In the face of extreme weather conditions and global warming, FET is actively promoting"low-carbon operations" internally. After passing the review of the Science-Based Targets
initiative (SBTi) in 2019, FET set more ambitious science-based targets in 2022 and once
again obtained SBTi certification. It is the only telecommunications company in Taiwanthat has set its target to limit the short-term temperature increase within the scenario of
1.5 degrees Celsius. FET has also joined the global RE100 initiative, committing to reach
100% renewable energy source for the entire company by 2040 and achieve net-zeroemissions by 2048. This demonstrates FET's strong commitment to energy conservation,
carbon reduction, and reducing environmental impact. FET also exerts corporate influence,and through cloud technology, big data analysis, IoT and other applications, it is used insmart cities, smart parking, air quality monitoring, big data crowd analysis, etc., to help
government agencies solve traffic, air quality and other problems; and calls on suppliers
to participate in the "FET Circular Economy Workshop" and "Carbon Inventory Guidance
Meeting", becoming the first telecommunications industry player in Taiwan to join the
Ericsson Global Product Take-Back Program, and the reuse rate of old recycling basestations reaches 98%. FET takes practical actions to integrate environmental protection
into business considerations and fulfill corporate citizenship responsibilities.

providing services to an average of 5,300 people per month. FET has also pioneered
to provide Taiwan's first 5G Telemedicine service, which has expanded to 12 counties,
35 townships in remote areas, and 27 specialized clinics, serving nearly 30,000 people.
In addition, FET has taken the lead in initiating the Signals Boost up Project which has
been running for seven years. The project aims to bring internet resources to remoteand mountainous areas throughout Taiwan. In the past three years alone, FET has
independently installed nearly 900 non-shared base stations in rural areas, achievinga network coverage rate of 98% in these underserved regions. This effort has helped
to narrow the digital divide between urban and rural areas. FET has also collaborated
with the Taiwan Youth Climate Coalition (TWYCC) to promote climate education
projects. Building on FET ’ s previous initiative of assisting the Executive Yuan's A/
C in Every Classroom EMS (Energy Management Solution) Project, FET has designed
the "FET Climate Change and Energy Conservation Curriculum" to guide elementary
school students in practicing environmental protection in their daily lives. Through thiscollaboration, they aim to raise awareness and foster a sense of responsibility among
young students towards climate change and energy conservation.
Looking ahead to 2023, FET will continue to prioritize smart energy conservation forinternal operations and expand Home-grown solutions on Green ICT externally. FET
will focus on steady growth in the 5G mobile communications business, develop more
Green ICT solutions, and deepen strategic partnerships to accelerate corporate digitaltransformation and progress towards net-zero emissions. By doing so, FET aims tocontribute to a smarter and more sustainable living experience for society as a whole.
Furthermore, FET has obtained approval from the National Communications Commission(NCC) for the merger with Asia Pacific Telecom. Currently, they are actively cooperatingwith the regulatory authorities in the review process. They anticipate that this merger
will accelerate the healthy development of the telecommunications industry in Taiwan,
benefiting consumers and shareholders, while making a more significant and proactive
contribution to sustainable development.

In terms of social inclusion, FET focuses on three aspects: "Social Welfare," "Digital
Inclusion," and "Environmental Education," aiming to create an inclusive society withoutboundaries. For 16 years, we have been raising funds for disadvantaged children, raisinga total of 51 million NT dollars and assisting 15,923 underprivileged children. Additionally,
for three consecutive years, we have rallied 77 suppliers to form the "Sustainability
Vanguard Team" to contribute to hardware infrastructure development in remote areas,

2022

Far Eastone Sustainability Report04

Awards and Recognitions

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

Selected for the DJSI World
Index for four consecutive
years and Selected for the
DJSI Emerging Market Index
for seven consecutive years

Awarded with the "A gradeleadership level" as the top 8% globally by CDP Climate
Change Collaborative
Assessment supplier for threeconsecutive years based on its
performance

FET won Global Views
Monthly's CSR and ESG
Corporate Social Responsibility Awards for "ESG Integrated Performance - ExemplaryAward" for the fifth time

"Corporate Governance
Assessment" won the top 5%
for eight consecutive years

The only company to win the "Taiwan Service Industry Awards" 11
consecutive times

Won the "National Talent
Development Award" "Large
Enterprise Award" by the
Ministry of Labor and the"Gold Award" of the 1111
"Happy Enterprise"

General Manager Jing Qi won
the first place in the "Best CEO"in the Asian telecommunications industry from "Institutional Investor" for two consecutive
years, and the "CEO of the YearAward" from "IDC 2022 FutureEnterprise Awards"

First in the telecom industry,
FET and its subsidiaries jointly
won 19 awards in the"Excellent Customer Service
Award"TCSA: Chairman Douglas Hsu
won the "Corporate Lifetime
Achievement Award" andwas shortlisted for four
special awards, including"Taiwan's Top 100 Sustainability Model Award"

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report05

Awards and Recognitions

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

FET's remote 5G telemedicine platform won the "Operational Excellence
Transformation Award - Model Award" and "ESG Special Award" A of theHarvard Business Review Digital Transformation Award, and was the only
one in the telecommunications industry to obtain the"US HIPAA Information Security" B certification, and won the "Medical Policy Council""National Medical Quality Award" C and "National Innovation Award""Enterprise Innovation Award" DACBFirst in the telecom industry,
FET passed the "ISO 20400
Sustainable Procurement
Guidelines", and its sustainable supply chain performanceis the only company that has
won the "BSI Sustainability
Excellence Award"

Only telecom company to win
the Silver Award of BestManagement Innovation
Award twice at the Innovation Commerce Awards

FET receives "2022 Sports
Enterprise Certification" fromthe Sports Administration,
Ministry of Education

FET TPKC Cloud Computing
Center has won the Platinum
Award of Design category at
the third APIGBA Awards for
Excellent Smart Green
Buildings and System
Products"

D

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

The only company in theinformation and communication industry to simultaneously
win the "Benchmarking
Enterprise Award" and"Benchmarking Project Award"of the "Project Management
Award"

2022

The only telecom company tobe awarded the Most
Outstanding Company in
Taiwan in 2022 by Asia money

FET is the only company in
Taiwan that has been awarded the "Best Social Contribution Award" for the first timein Taiwan's "YouTube Annual
Advertising Awards"

Far Eastone Sustainability Report06Highlights of performance

About FET
About
FET

Environmental

Contents
Contents

Joins RE100, committing to 100% use ofrenewable energy by 2040

Message from
Messagefrom Management
Management

The only telecom company in Taiwan topass the SBTi 1.5°C scientific reduction target
review for net zero commitment

Highlights
2022 ESG Highlights

Social
98% LTE coverage in remote areas
ESG charity related projects have a cumulative
impact of 6.7 million people
Raised $51 million over 16 years to support
15,923 disadvantaged children

Solar Photovoltaic Capacity 2,736.97kWp

Corporate Governance
CH1 Corporate
Governance

Breakthrough in telecommunications equipment
reclaiming limit, with a reclamation rate of98.5%

For the third consecutive years, 77 suppliers haveformed a sustainable vanguard to provide
resources for rural areas, serving an averageof 5,300 people per month

Governance
The annual growth rates of consolidated EBITDA
and after-tax net income in 2022 were 9.3%
and 22.1%, respectively, reaching 30.79 billion
NTD and 9.61 billion NTD, a new high in thepast five years
Telecommunications service reaches 99.85%
of population density
First 5G availability in Asia, second in theWorld (Open Signal Certification)
4G access success rate 99.95%

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

AI precise location selection, maximum
network efficiency, and intelligent frequency
mixing and resting mode can save up to 46%
of electricity consumption

Social Inclusion
CH4 Social
Inclusion

Wireless network energy efficiency increased by45%

In the first year, more than 70% of employees
participated in the Employee Trust Shareholding Scheme

Issued the telecom industry's first "social
responsibility bond"
The first telecom company in Taiwan to obtainthe certification of ISO 20400 Sustainable
Procurement - Guidance
0 personal information leakage incidents

Appendix
Appendix

Taiwan's first US HIPAA information security
certified 5G telemedicine

2022

Far Eastone Sustainability Report07About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Corporate Governance
CHAPTER 1

1.1 About FET
1.2 Sustainable Governance
1.3 Corporate Governance
1.4 Most Considerate Services

2022

Far Eastone Sustainability Report081.1 About FET
1.1.1 Company Information
About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

FET Information

Major Operating Performance

Company Name

Far EasTone Telecommunications Co., Ltd.

Industry Category

Communications and Internet

Market value

Headquarter Location No. 468 Ruiguang Rd., Neihu District, Taipei City
Chairman

Douglas Hsu

Total assets

Stock Code

4904

1,706

CapitalNT$ 32.585 billion

NT$ 100 million

Proportion of Business892

NT$ 100 million

NT$ 100 million

Number ofvalid subscribers

46%

Social Inclusion
CH4 Social
Inclusion

4.5%

41,028Domestic fixed communications service

790

International communications service

592

Digital communications servic

4,056

Product sales and others

42,685

Total

89,151

671

586

23.7%
FET 2022 Annual Report statistics

307.92

ARPU of postpaid 2

Market share ofmobile service revenue 1

1.

EBITDA

NT$ 100 million

thousand persons

47.9%

Mobile service

Number of retail stores

7,145

0.7%

2022

2,147

(Unit: NT$ Million)

0.9%

Appendix
Appendix

Consolidated
total revenue

NT$

2.

Number of employees

5,737

ARPU: average revenue per user

Far Eastone Sustainability Report09Distribution of Economic Value

Unit: NT$ Thousand

FET is committed to sharing the fruits of its operations with all stakeholders. Apart from income tax payment, after deducting losses covered, legal reserve and special reserve, at least 50%of the balance is distributable as dividend.

About FET
About
FET

Payments to shareholders :Cash dividend

Government grants received :Government subsidy income 1

Payments to employees :Employee benefits

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance2019$12,289,402

2019$6,667,293

2019$169,9762020$10,674,577

2020$6,696,358

2020$121,8182021$10,668,650

2021$7,055,104

2021$3,186,238

2022$10,664,586

2022$7,184,548

2022$1,894,881

Smart Sustainability
CH2 Smart
Sustainability
Payments to suppliers :Procurement spending

Environmental Sustainability
CH3 Environmental
Sustainability

Payments
for income tax

Social investments :Charity activities 2

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix2019$34,173,864

2019$4,457,471

2019$11,8402020$36,370,000

2020$167,600

2020$15,3102021$39,090,449

2021$2,024,081

2021$4,4992022$37,660,604

2022$1,945,422

2022$2,116

1.

National Communications Commission: NT$ 1,851,569 thousand; Ministry of Communications: NT$21,489 thousand; Ministry of Digital Affairs: NT$13,039 thousand; Industrial Development Bureau of the
Ministry of Economic: NT$8,067 thousand; Ministry of Labor: NT$ 717 thousand.
2.
Spending on public welfare includes expenditure on charitable projects in that year, public fundraising, and cash donations. Duplicated items are deducted to avoid double calculation.

2022

Far Eastone Sustainability Report101.1.2 Business Mode
Capital Input and Output

About FET
About
FET

Operating Resources Foundation(By the end of 2021)

Message from
Messagefrom Management
Management
HardwareHighlights
2022 ESG Highlights
・ Total assets:$175.5 billion

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

103.9 billion

・ Total market value $214.7 billion
・ Total assets $170.6 billion
・ Consolidated revenue $89.2 billion
・ Earnings per share $2.95

Manufactured Capital
The investment and maintenance of ICT infrastructure todevelop related services national-wide. This includes ourstores, base stations, and data centers.

14 billion

・ 671 retail stores・ 35,607 base stations
・ Internet coverage nationwide(4G+5G): 99.85%
・ Internet coverage in rural areas: 98%

Human Capital
Including talent and innovative thinking, the passing on of
professional knowledge and experience, loyalty, and a soundhuman resource structure.

7.2 billion

・ Total number of employees 5,737
・ Employee turnover rate 14.88%
・ Training hours per person: 48 hours

Intellectual Capital
The experiences and technologies accumulated in ICT field,
major intelligence capital includes patents, licenses, R&D
capabilities, collaboration agreements, etc.

710 million

・ R&D invesment 516 million
・ 421 new patents and trademarks
・ Revenue of IoT/Digital Products and Services
Revenue 6.6 billion

Natural Capital
The use and conservation of energies and resources. Relevant
natural capital is mainly electricity consumption andassociated energy consumption as well as GHG emissions.

750 million

・ GHG emissions 656,050.16 tonnes
・ Electricity consumption: 636,180.78 MWh

500 million

・ 7,145 K Subscribers
・ Customer satisfaction score: 9.87
・ 350 suppliers have completed ESG risk assessments

Financial Capital
Helps maintain daily operations of the organization andprovides the key basis for products and services through theaccumulation of investment and business operations.

Contents
Contents

・ 735 stores

Annual Capital Output(By the end of 2022)

Annual Capital Input

・ 32,615 base stations

・ Internet coverage nationwide (4G) 99.8%
・ Internet coverage in rural areas Hardware
97.3%

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix
Software・ Total market value $210.5 billion
・ 705.7K subscribers
・ 6,099 employees

・ 469 patents and trademark rights

・ NPS customer net promoter score is
growing year by year2022

Social and Relationship Capital
The maintenance of long-term partnership with value chain
partners and other stakeholders including customer andpublic relations management via brand campaigns, publiccharity activities, and community constructions and services.

Far Eastone Sustainability Report11Corporate Vision

Strategic Management

Value Chain

Sustainable Development Strategy

1・Building a distance-free and inclusive
Society

About FET
About
FET

Supplier

3
2

Value Sharing

・Driving the Environmentally friendly value
chain

Contents
Contents

Product and Services

Office Building and Data Center

Logistics center
ConsumerBusiness Market

・Embracing the future of smart sustainability

FET Connects and Enriches Life

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
AppendixBusiness Strategy
・Fit: Effectiveness, Efficiency, speed

5・Transformation: Digitalization,
Agility, Innovation
・Growth: Diversified Services,
ValueAdded, New Revenue

Stores4Base stations

EnterpriseBusiness Market

遠傳

Emerging Risks
and Opportunities
・Climate Action Failure

76Personal users

Enterprise users

8

NGO and Public

New Economy
Business Market

・Extreme Weather Events

・Failure of Cybersecurity Measures

・Adverse Outcomes of Technological
Advances2022

Far Eastone Sustainability Report121.2 Sustainable Governance1.2.1 Sustainable Development Strategy
About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

FET has established its "Sustainable Development Best Practice Principles" to serve as the ultimate guiding principles for Sustainable Development conducts within FET. A "Sustainable
Development Committee was assembled to serve as the highest authority for matters concerning sustainable governance, strategy and planning. Within the Sustainable Development
Committee, the Chairman undertakes the role of chief commissioner, while the President assumes the role of executive officer and the CFO assumes the role of deputy executive officer.
The Executive Management Team (EMT) serves as the convener that coordinates task forces in various business groups, and issues instructions to representatives of various business groups.
The Sustainable Development Committee base the verification and management of sustainability issues on investigation of the material issues of the Company, annual performance reportof each business group, recommendations from external stakeholders and advice gained by consulting external experts. The Company has also appointed the Corporate Communications &Sustainability Responsibility Division as designated unit with the responsibility of enforcing Sustainable Development actions and measures within the organization.
The Sustainable Development Committee convenes meetings on a quarterly basis and report relevant policies, decisions and the performance to the Board of the Directors from time totime. Meetings are hosted by the President while members of the executive management serve as conveners for the relevant task force. Matters such as progress of annual action plans,
tracking of material issues and proposals are raised and discussed during Sustainable Development Committee meetings. The Sustainable Development Committee held a total of four
meetings in 2022. For details on 2022 KPI and performances, please refer to each"Sustainable Governance Performance ".
Sustainable Development Committee Structure

Board of Directors

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Chairperson- Chairman

Environmental Sustainability
CH3 Environmental
Sustainability

Executive Offer-President
Corporate Communications &Sustainability Responsibility Div.

Social Inclusion
CH4 Social
Inclusion

Convener (Executive Management Team)

Appendix
Appendix
Environmental

Supply Chain

2022

SocialEnvironmental

Employee Care

Environment and Energy
Management Committee

Occupational Safety &Health Office

GovernanceSocial Inclusive

Smart Innovation

GovernanceRisk Management
Committee

Far Eastone Sustainability Report13

Sustainable Vision and Strategy
FET has established the new vision of the"Sustainable Development Strategy Blueprint"in 2023. Covering the three major aspects of E-S-G, setting medium and long-term goals until 2030.
We hope to strengthen our response towards 13 out of the 17 United Nation's Sustainable Development Goals (UN SDGs) that are related to our core business in order to maximize theCompany's impact and contributions to the economy, environment and society, fulfilling FET's vision(FET Connects and Enriches Life)and becoming the most preferred partner in digital Life.

About FET
About
FET

Blueprint for ESG Straegy

Contents
Contents
Message from
Messagefrom Management
Management

Corporate Vision

FET Connects You and Your World, Enriches Your Life and Protects Our Earth

Core Application

Smart City• Smart Manufacturing • Digital Transformation • Low Carbon Operations •Consumer Applications• Smart Healthcare

Strategy

Environmental

SocialGovernanceDriving the Environmentallyfriendly value chain

Building a distance-free andinclusive Society

Embracing the future of smart sustainability+ Corporate Governance

Externally

Driving the low carbon
transformationof value chains

Making life more convenient, safer, warmer andmore sustainable through core information andcommunication technologies

Implementing forward-looking anddiverse smart innovation applications

Internally

Achieving company-wide net
zero emissions by 2048

Creating a diverse, equal andinclusive workplace

Nurturing corporate talents

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix
Impact2022

Far Eastone Sustainability Report14

Sustainable Governance Performance
FET develops and formulates the mid-to-long-term goals. This year the Company will continue to evaluate resources needed and amend the long-term goals and action plans accordingly.
Strategy

About FET
About
FET
Contents
Contents

Driving
the Environmentallyfriendlyvalue chain

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Impact
Net
Zero
by
2048

Indicators

2022 Goals

Performance

2023 Goals

2025 Goals

2030 Goals

Proportion of renewable energy
in total electricity consumption

New

0.49%

0.60%

5%

30%

Total greenhouse gas emissions(compared to the base year
2021)

Within
+4.6%

3.01%

Increase not exceeding
0.75% (Category 1+2)

Decrease notexceeding 7.26%(Category 1+2)

Decrease notexceeding 34.44%(Categories 1+2)

Annual electricity consumption
per square meter of office EUI(compared to the base year
2021)

-0.5%

-2.46%

Decrease by 4.63%

Decrease by 6.25%

Decrease by 10.17%

IDC data center power usage
effectiveness PUE (compared tothe base year 2021)-0.33%-3.68%

Decrease by 3.821

Decrease by 4.78%

Decrease by 7.14%

Electricity usage of directly
operated stores (compared tothe base year 2021)-3.01%

Decrease by
3.4%

Decrease by 2.31%

Decrease by 3.81%

Decrease by 8.83%

Base station 1GB service
usage electricity consumption(compared to the reference
year Y2021)

-5%

-31%

Decrease by 35%

Decrease by 47%

Decrease by 59%

Continuous replacement withenergy-saving equipment instoresNew

LED lights
in 29 stores,
232 inverter air
conditioners
with first-classefficiency

Proportion of LED
lighting in stores: 50%

100% of store lighting
replaced with energysaving LEDs. 50% of
aircon are inverter air
conditioners with firstclass efficiency

100% of stores use
LED energy-saving
lighting. Coveragerate of first-classefficiency inverter
air-conditioning
equipment ismaintained at 50%

Cumulative number of mobile
phones recycled (old + used)(base year 2018)

New

Cumulative
44,605

Cumulative 69,605

Cumulative 123,355

Cumulative 281,755

Percentage of digital form
usage in stores CCM

NewMore than
95%

95%

95%

95%

Percentage of users using
electronic bills CCM

New

82.40%

82%

82%

82%

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Corresponding
Material Topics
ClimateStrategy
Environmental
resource
management
andapplication

Far Eastone Sustainability Report15Strategy

About FET
About
FET

Driving
the Environmentallyfriendlyvalue chain

Contents
Contents

ImpactIndicators

2022 Goals

Performance

2023 Goals

2025 Goals

2030 Goals

30
companies

30 companies

30 companies

35 companies

35 companies

Annual addition of independent
on-site audits

45
companies

45 companies

48 companies

55 companies

55 companies

Annual high ESG-risk supplierperformance improvement ratio

90%

100%

90%

90%

90%

Proportion of signatories to the
Biodiversity Commitment of theTop 100 suppliers in the supply
chain

New

To be
implemented
in 2023

80%

90%

Continued focus toreduce supply chain
impact on biodiversity

New

Recycling rate is 25%
To be
implemented of the total weight ofretired equipment soldin 2023

Recycling rate is 50%of the total weightof decommissioned
equipment

Gradual increase ofrecycling rate

DrivingAnnual addition of on-site audit
low-carbon
by third-party unitstransformationof value chain

Corresponding
Material Topics
Supply Chain
Management
Electronic
Product Waste
Management
andApplication

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Circular economy recycling rate

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report16Strategy

ImpactBuilding a
distancefree andinclusive
Society

In support
of a moreconvenient,safer,
comfortable
and moresustainable
lifestyle

Indicators
Network coverage of remotevillages2022 Goals
98%

Performance98%

2023 Goals

2025 Goals

2030 Goals

4G 98.3%,
5G 40%

4G 99%,
5G 80%

4G 99%,
5G 95%

Increase by 2 times

Increase by 2.2
times

Increase by 2.4
times

20 events

20 events

20 events

Increase the number of subsidized
users of diverse tariff plans forvulnerable groups (such as parentchild plans, children's watches,
the elderly, and disabled/lowincome households)Based on thebenchmark of 82K in 2018

New

Stores promote local
collaboration, closing the digital
divide gap through organized
eventsNew

2 events

Obtain verification of information
security management

Continuous ISO 27001
international standard
verification for information
security management

passedContinuous ISO 27001 international standard verification for
information security management

Smart Sustainability
CH2 Smart
Sustainability

Personal data management
verification

Continuous BS 10012
Personal Information
Management international
standard verification

passedContinuous BS 10012 Personal Information Management
international standard verification

Environmental Sustainability
CH3 Environmental
Sustainability

Number of personal data leaks

0 incident

0 incident

0 incident

Social Inclusion
CH4 Social
Inclusion

Number of paid subscribers to FET
SecureNet Service

New

New goals
for 2023

Appendix
Appendix

Cumulative number of on-sitecare activities in storesNew

152 events

Number of people friDay Video
reaches on digital platforms
through public service projects

7K people

7.2K people

8K people

10K people

15K people

Expand the influence of "FETPublic Welfare Platform" (Mobile
Circle app homepage / Social
Media / SMS promotion)

New

128,557
peopleCumulative
1 million people
reachedCumulative
3 million people
reachedCumulative
10 million people
reachedCumulative number of people
reached by ESG activities (20162021: 5.52 million people)

Cumulative 6.25
million people

Cumulative
6.7 million
peopleCumulative 7.5
million people

Cumulative 11
million people

Cumulative 20
million people

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance2022

Increase by
1.57 times(cumulative
total 129K)

100K

130K

Corresponding
Material Topics
Information
security andprivacy protection
Network quality
and infrastructure
Digital inclusion
Social care andpublic welfare
engagement

300K

Cumulative total Cumulative total of
Cumulative totalof 350 events from of 700 events from 1500 events from2022 onwards
2022 onwards
2022 onwards

Far Eastone Sustainability Report17About FET
About
FET

Strategy

ImpactCreating
an Inclusive
Society
without
Boundaries

Diverse,inclusive,and friendly
workplaceContents
Contents

Indicators

2022 Goals

Performance

2023 Goals

2025 Goals

2030 Goals

Female supervisors
as a percentage of all
supervisors

Not less than30%

32.52%

31%

32%

33%

Percentage of female
senior executives (EMT)New

45.45%

1/3

1/3

1/3

Employee communication
coverage rate

100%

100%(4 times intotal)

100%

100%

100%

Scores of recommended
companies in employee
eNPS surveys

eNPS thatrecommend FETreaches 50 or
highereNPS score >50

eNPS score >60

eNPS score >70

Conduct a Human Rights
Due Diligence investigation
every two years, covering
employees, suppliers, andusers/community residents

New

Implemented in
2021, continued in
2022, and to be
performed in 2023

Conduct humanrights due diligence
investigation

Conduct humanrights due diligence
investigation

Conduct humanrights due diligence
investigation

Coverage of maternity careand health education

New

100%

95%

95%

95%

Satisfaction score of healthpromotional activities

New

4.8 points

4.5 points

4.6 points

4.7 points

Employee participationin health promotional
activities

New

4,621 people

4,800 people

5,000 people

5,200 people

Corresponding
Material Topics
Human rights
issuesWorkplacediversity andinclusion
Employee healthand safety

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

77points

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report18Strategy2022 Goals

Performance

2023 Goals

2025 Goals

2030 Goals

35 hours

48 hours

35 hours

35 hours

35 hours

New

59,259people60,000 people

70,000 people

75,000 people

New

100%

100%

100%

100%

New

4.58
(2022 2H)eNPS score > 4.3

eNPS score > 4.4

eNPS score > 4.5

Adopted atmanager level
and above

Adopted atmanager level
and above

Supervisors above
manager level

All Employee

All Employee

Number of smart streetlights/poles
installed

New

7,391 smart
streetlights

Number of smart meters deployedNew

13,861piecesNumber of charging piles installedNew

16 units

Cumulative number of people using
5G Remote Healthcare Service

New

Social Inclusion
CH4 Social
Inclusion

Cumulative number of remote video
consultation services

Appendix
Appendix

About FET
About
FET

Embracing
the futureof smart
sustainability

Contents
Contents

ImpactIndicators

Average hours of education andCultivating training per employee per year
entreNumber of trainees related to businesspreneurial operations and sustainability issues
talentTraining coverage rate for employees
currently employed for more than
one year (at least one course taken)
Satisfaction scores for the learningand development category in theemployee eNPS survey

Message from
Messagefrom Management
Management

Performance KPI aligns withsustainable indicators

Highlights
2022 ESG Highlights
Smartinnovative
applications

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability2022

Add 2,000 smart
connected lights

6 municipalities plan
to add 5,000 smart
streetlights/shared poles

6,407
people15,000 people

25,000 people

50,000 peopleNew

21,122
people20,000 people

40,000 people

100,000 people

Revenue from IoT services in a year

NT$1,080
million

1,041M

Percentage of ESG-related services in
IoT services

New

64%

Number of startups supported by
FET's 5G Metaverse Accelerator

New

20
companies

60 companies

80 companies

100 companies

Cumulative number of collaborative
indicator-based case studies
completedNew

12cases

26 cases

40 cases

80 casesCumulative number ofentrepreneurial consulting services
providedNew

250 sessions

400 sessions

600 sessions

1,100 sessions

Assist 6 municipalities
in achieving a reductionof more than 30%
in carbon emissions
Estimated 1 million smart
by 2030, acceleratemeters to be installed in Install 1.5 million smart
the electrification ofmeterscollaboration with Asiatransportation, and reduce
Pacific Telecom
carbon emissions in theAdd 40 DC electric
650 units to be installed
transportation sector
charging piles

Corresponding
Material Topics

Talentdevelopment
andmanagement

Socialinnovation
strategy andapplication
Environmental
innovation
strategy andapplication

Target annual IoT
Target annual IoT
services revenue: NT$920 services revenue: NT$1.5 Create low-carbon andbillionmillionsustainable smart/resilient
cities with technology
ESG-related services
70%
account for 70%

Far Eastone Sustainability Report191.2.2 Stakeholders Engagement
FET values its communication and engagement with various stakeholders highly. For the purpose of fully comprehending the essence of internal and external stakeholder management, wehave followed the principles of AA1000SES Stakeholder Engagement Standard to identify seven types of stakeholders crucial to our operations and ensure that we have dedicatedcommunication channels to respond to our stakeholders’ requests and expectations in our daily operations. In addition, we have established a stakeholder CSR Survey
and Dedicated
Communication Channel
on our website to receive more feedbacks.

About FET
About
FET

FET Stakeholder Management Procedure

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Step 1

Step 2

Identification of
stakeholders and issuesof concern

Identification of
stakeholders and issuesof concern

Step 3

Step 4

Step 5

Board of Directors

Public disclosure

The results of the discussion will
be regularly reported to theBoard of Directors. If the
responsible unit is unable to
make a decision on the relevant
issues, the Board of Directors
will directly make adecision.The Board of
Directors is responsible forreviewing communication
effectiveness.

Every year, the results ofstakeholder engagement
are released to the publicthrough sustainability
reports, official websites,
etc.

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Each ESG team is
responsible for collecting
relevant stakeholder
concerns.

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Each ESG team is
responsible for collecting
relevant stakeholder
concerns.

Sustainable Development Committee
Each responsible unit
regularly reports to the
Sustainable Development
Committee, which
consolidates the results ofthe discussions.

Far Eastone Sustainability Report

20

The communication mechanisms and key issues of stakeholders in 2022 are summarized as follows:
Stakeholders Importance to FET

Issues of concern

About FET
About
FET

Communication channel

Communication
frequency

Communication performance

Professional ethics, occupational safety& health education and training

Every year

Employee education and training were conducted in a total of 1,485 sessions,with an average training time of 47.5 hours per person

Company-wide town hall meetings

Every season

A total of 4 meetings held, including 1 employee assembly (presided by the
Chairman) and 3 town hall meetings (co-chaired by the general manager andthe highest executives of each business group), allowing attendees to ask
questions and interact in real-time through digital communication tools

Employee satisfaction survey

Twice a year

eNPS(employee Net Promoter Score) Employee satisfaction: Conduct an eNPS
(employee Net Promoter Score) survey twice a year, once in the first half andonce in the second half. Survey results for the second half of the year show
an eNPS score of 77 (recommended companies).

Employee suggestions/complaints
mailbox

Irregular

FET has received a total of 61 named responses in the Intranet "Colleague
Suggestions" mailbox, as well as 10 cases in the complaints mailbox

Performance evaluation and careerdevelopment interview

At least twice a
year

Percentage of employees receiving annual performance appraisals was 100%

Lantern Legend Meeting

Every season

In 2022, a total of 5 Magic Lamp conferences were held, including
discussions on the Company's profit situation, future expansion plans, officeenvironment improvement, and related labor-management relationship issues

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

Employees

Corporate Governance
CH1 Corporate
Governance

Employees areimportant partnersof FET. We ensure
their job security
and growth,establishing two-way
communication tomaintain harmonious
relations

Talent development
and management
Business
performance
Workplace diversity
and inclusion
Employee healthand safety

Smart Sustainability
CH2 Smart
Sustainability

Internal meetings of each businessgroup and department

Irregular

Each business group holds at least two meetings every year

Environmental Sustainability
CH3 Environmental
Sustainability

FET e-Express/FET Intranet/FET latest
news

Irregular

Through FET's intranet and newsletter, all employees are notified of updated
operational process documents, page redesign notices, employee productdiscounts, welfare policies, and other announcements

Social Inclusion
CH4 Social
Inclusion

Activities of Employee Welfare
Committee

At least 4 times a In 2022, a total of 9 meetings were held, including employee trips, hosting ofyear
Lunar New Year shopping street, and community management activities

Face-to-face, in-store communication

Store operatinghours

The main channels for customer
complaints are: official letter,coordination meetings, customer
service hotline, FETnet website, andFET Mobile Circle app.

24 hours

Customer satisfaction survey

Every year

Telephone service center

Every year

Marketing activities

Irregular

Business visits

Irregular

Appendix
Appendix

Customers

2022

As the main sourceof revenue, we
listen to the needsof each customer inorder to meet their
expectations

Brand image
management
Customerexperience andtransparent
communication
Network quality
and infrastructure
Information
security and privacy
protection

Overall satisfaction of store service: 9.87 out of 10.
Outsourced customer satisfaction survey, store service reached 90%.
Overall satisfaction of the telephone service center: 9.58; first-call resolution
rate: 9.53

Far Eastone Sustainability Report

21

Stakeholders Importance to FET

About FET
About
FET

Competent
authority

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

Suppliers/
Contractors/
Developers

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Shareholders/
Investors

Social Inclusion
CH4 Social
Inclusion
Appendix
AppendixMedia

Social welfare
groups/NGOs

2022

Comply with therelevant regulations
and inspectionsof the competentauthority

Maintain stablepartnerships with
suppliers/contractors
and conduct supply
chain impact
management.
Co-develop new
products andservices with
developers

Issues of concern

Communication channel

Communication
frequency

Corporate governance and integrity,
Network quality and infrastructure
Information security and privacy protection
Compliance with regulations, risk
management response, and emergency
response

Meeting and administrative inspection

Irregular

Official document

Irregular

Public hearing

Irregular

Supplier conference

Every year

On-site counseling and audit

Every year

Vendor project communication

Irregular

Supplier ESG Communication
Meeting

Irregular

Satisfaction survey

Every year

Sustainability Pioneer Team meeting

Every year

Shareholders' meeting

Every year

Corporate briefing

Every season

Supply chain management
Business performance
Corporate governance and integrity

Shareholders/investors are allcontributors to
the company's
capital. FET should
transparently
disclose theorganization's
operational status
to maintain investor
confidence

Business performance
Corporate governance and integrity
Information security and privacy protection

Media reports andevaluations of theCompany will affectits reputation and
image

Business performance
Network quality and infrastructure
Responses to government policies andregulations
Risk management and emergency response

Maintain partner
relationships, jointly
promote social
welfare projects,
and create social
valueSocial innovation strategy and application
Information security and privacy protection
Communication and research onelectromagnetic wave issues
Community care and public welfare
investment

Investor Relations section on theofficial website

Irregular

Publish press release/hold press
conference.

Irregular

Dedicated units

Irregular

ESG project collaboration

Irregular

Special group tariff discount program

Irregular

On-site care around the stores

Irregular

Communication performance

For details of communication performance, pleaserefer to Chapter 3.4 Sustainable Supply Chain of
this report

Hold 1 regular shareholders' meeting.
Hold 4 global corporate conference calls, allowing
investors to directly communicate with senior
executives.
Participate in domestic and international
teleconferences to communicate with investors.
12 monthly releases of revenue, profit, andoperational statistics on the official website.

For detailed information, please visit the FET
official website: Latest News

NT$2,431,481
Total investment in public welfare activities:
NT$3,583,088. Donations raised: NT$2,431,481.
A total of 1,608 volunteers participated in social
welfare activities, reaching 1,184,164 people.
For detailed information, please refer to Chapter
5.2 "Investment in Public Welfare Care" of thisreport.

Far Eastone Sustainability Report221.2.3 Management of Material Topics
Process for evaluating material topics

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

On an annual basis, FET conducts regular identification of material topics. Due to the impact of our business activities, industry type, value chain, and operational activities on stakeholders,
we pay attention to the telecommunications industry topics that are highlighted through stakeholder engagement, expert consultations, global risk reports, the United Nations Sustainable
Development Goals, TCFD, CDP, and SASB guidelines. We adhere to the materiality, completeness, and stakeholder inclusiveness factors required by the GRI 3 standards in the GRI 2021
version. Through stakeholder surveys and comprehensive assessments, we adjust our approach based on the analysis results. We report the identified significant topics that have a major
impact on stakeholders to the Board of Directors, which then reviews and approves the results.
According to the GRI 3 standards published in 2021, FET has finalized the identification steps for material topics. This first requires an understanding of the Company's context, identifying
actual and potential impacts, and evaluating the significant degree and possibility of positive and negative impacts on stakeholders. After determining the significance of the impact of the
topic on the Company, the priority order of reporting with the most significant impact will be arranged.
The inventory process of assessing the significance and likelihood of positive and negative impacts in the aforementioned process is consistent with the concept of evaluating the extent
of loss impact and probability in the risk management procedure. Therefore, FET identifies 9 material topics by using the GRI 3 guidelines and applying the double-materiality principle todetermine the impact on the Company and its stakeholders, as well as the extent of impact on the economy, environment, and society. The detailed assessment process is as follows:

Step 1. Understand the Company's background; gather and identify key issues.

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix(1) A summary of industry attributes: Inventory of FET's business items, business models,
product or service types, industry types, worker types, etc., and analyze all industry
attributes related to the Company.
(2) Identify sustainable issues: In addition to incorporating material positive and negative
events that have occurred in the past, FET follows the principle of double materiality.
Based on considerations of the economic, environmental, and social aspects, we
engage in stakeholder communication and feedback through shareholder proposals,
supplier conferences, employee opinions, customer feedback, media dialogues, andthe like. We also consider global norms and standards (such as GRI industry standards,
global risk reporting, UN SDGs, TCFD, CDP, and SASB), the impacts of our business
operations on stakeholders, industry norms and standards, and benchmarking against
peer companies. Through these references, we aim to comprehensively identify
sustainable topics relevant to FET and its stakeholders. A total of 27 sustainability
issues were identified during the reporting period.

2022

Step 2. Analyze and decide on material topics(1) Stakeholder feedback: We collect feedback from stakeholders such as senior
executives, the Corporate Sustainability Committee, experts, shareholders, suppliers,
employees, customers, media, and NGO organizations through questionnaires.
We evaluate and rank the impact of various sustainability topics on FET and its
stakeholders using two main indicators: "impact on FET and stakeholders" and"impact on the economy, environment, and society." FET collected a total of 1,198
questionnaires during the year, with 31 from internal sources and 1,167 externally.
(2) Assess the impact on the economy, environment, and society: Under the principleof double materiality, we set different calculation criteria based on the nature ofsustainability topics. Positive and negative topics include the probability of occurrence,the scale and scope of the impact, the severity, and human rights considerations.
Under the aforementioned standards, we evaluate the impact of various sustainability
topics on FET and stakeholders based on the results of the questionnaire survey.
(3) Ranking and decision on material topics: According to the latest version of the GRI 3
standards, material topics are screened based on questionnaire surveys and results.

Far Eastone Sustainability Report

23Step 3. Confirm and manage material topics

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

Step 4. Continuous review
The implementation of policies on major topics and the rate of achievement of targets
every year are regularly reviewed to optimize our internal management policies andqualitative and quantitative targets. We also compare the differences between theprevious and subsequent issues after identifying the major issues for the next period,
investigate the reasons for the differences, and report them in the report.

The Corporate Sustainability Development Committee then sets a threshold score formateriality, filters and then ranks the material topics for the period. The identification
results of material topics are discussed and resolved, resulting in a total of 9 material
topics being included.
The Corporate Sustainable Development Committee assesses the corresponding
international standards for material topics, reviews management policies and objectives for
major topics, and collects annual data to ensure that important sustainability information
is fully disclosed in the report so as to respond to issues that concern stakeholders. For
specific material issues, discussions and follow-ups are required among the Board of
Directors. The identification results of the material topics are reported to the Board. Afterapproval by the Board, the process is subject to external third-party verification.
Materially Matrix and Definition of Materiality in 2022

Corporate Governance
CH1 Corporate
GovernanceImpact on the economy, enviroment, and society
Low

High

Low

Smart Sustainability
CH2 Smart
Sustainability
G4-Business performance

E1-Environmental innovation strategy and application

Environmental Sustainability
CH3 Environmental
Sustainability

Appendix
Appendix

Impact on FETnet and stakeholders

Social Inclusion
CH4 Social
Inclusion

E5-Environmental resource
management andapplication

E4-Electronic productwaste management
and application

G1-Network quality
and infrastructure

G2-Brand image management

G3-Information security
and privacy protection

G7-Compliance withregulations andresponseHigh
SP1-Social innovation strategy and application
S7-Social care and publicwelfare engagement
S6-Communication and researchon electromagnetic wave issues

S1-Talent development
and management

S5-Customer experience and transparent communication
S3-Human rights issues

S2-Workplace diversity and inclusion
S4-Employee health and safety

Low

2022

E2-Climate strategy

G5-Corporate governance and integrity
G6-Risk management and emergency response

SP2-Digital inclusion
SP3-Supply chain management

Note.

"Impact on FET and stakeholders" refers to
the potential impact of each issue under the
double-materiality principle. "Impact on theeconomy, environment, and society" refers
to evaluation results of each issue considering
the probability of occurrence in terms of theeconomic, environmental and social aspects,
scale and scope of impact, severity, andhuman rights.

Far Eastone Sustainability Report24About FET
About
FET

Compared to the identification results of material topics in the previous period, the topics were changed in the year under review due to the adoption of new standards for identifying
material topics. During the year, due to the adoption of new criteria for identifying material issues, impact management was based on a remote and stakeholder perspective. The new topics
added include environmental, social, and supply chain issues (such as electronic waste management and application, social care and public welfare engagement, supply chain management,
and responsible procurement). The material topics that were not included in the previous year will be maintained in the existing management procedures, and will be optimized on a regularbasis in accordance with the actual operating conditions and international trends. In addition, considering the double-materiality principle, FET also takes financial impact into account when
considering major topics and discusses them with senior executives.
Impact event (risk/opportunity item)

Corresponding material topic

Contents
Contents

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Description (impact on finances)

Improve network service and reduce digital divide

G1 network quality andinfrastructureHigh

Improving network service quality will affect user experience and increase
telecommunications revenue

Information leakage, such as the leakage of customer
privacy

G3 Information security andprivacy protection

High

Severe penalties due to information leakage

Provide education and training as well as employee
career development planningHigh staff turnoverS1 Talent development andmanagement

Low

Implement employee education and training to promote career development,enhance the company's financial performance. High employee turnover will
increase the company's recruitment and training costs.

Engage in social care and public welfare promotional
activities

S7 Social care and public welfare
investment

Low

Strengthen the company's brand image to enhance operational performance

Integrating the core business of telecommunications,providing innovative services such as 5G healthcare,and promoting the well-being of the public.
Unable to gain insight into technological changes anddevelop innovative technologies

SP1 Social innovation strategy
and application

High

Digital innovation and application will bring new business opportunities to
FET, enhancing revenue and brand value. Failure to grasp new technologies
will result in missed opportunities for innovation and a decrease in company
revenue.

Promote digital inclusion and digital equity, reduce
urban-rural disparities, and foster social integration

SP2 Digital inclusion

MediumEliminating the digital divide is the social responsibility of telecommunications
operators. If not properly promoted, it will not only be corrected by the competentauthorities, but the company will also lose revenue.

Increase local and green procurement
Suppliers fail to meet ESG assessment standards

SP3 Supply chain management

Low

Local procurement can reduce supply chain risks, lower transportation costs, andreduce material waste.

Failure to implement effective energy management,
leading to an increase in energy consumption, andfalling short of meeting the set reduction standards
Increase in greenhouse gas emissions

E2 Climate strategy

MediumFailure to effectively manage energy use will result in increased operating costs,
decreased operational efficiency, and may also incur hefty penalties

Promote the recycling of discarded mobile phones,
properly handle industrial waste, and do a good job inenvironmental resource management and utilization

E3 Electronic waste management
and application

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

Financial
impact level

2022

Low

Failure to properly handle industrial waste will result in penalties

Far Eastone Sustainability Report25Integrate materiality analysis and overall risk management procedures

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Under the double-materiality principles assessment model, FET incorporates the management of significant sustainability topics into its risk management procedures. For material topics thathave a significant impact on FET's operations in the survey, risk management strategies and plans are formulated. According to the survey results, emerging risks are identified, including
those emanating from geopolitical sources and energy shortages. Based on the ISO 31000 risk management system principles, they become management policies and implementation
actions. Every year, the risk management mechanism for the year under review is also regularly reported to the Board of Directors. A report was submitted in the ninth board meetingof the seventh session, which took place on November 11, 2022. Please refer to the "Risk Management" section and page 55 of the Annual Report for a detailed risk assessment andmanagement strategy for important issues and related actions.
Impact management of material topics
Material topic management strategy

The Board of Directors of FET is the highest decision-making and supervisory unit for managing material topics. The Public Relations and Corporate Sustainability Department is assigned
to be responsible for managing major sustainability issues, including reviewing material topics management policies, proposing optimization and improvement suggestions. The Company
also establishes diverse communication channels for stakeholders, and regularly consolidates the suggestions of stakeholders to determine the type and impact of the suggestions, and thendraws up and reports on countermeasures or response policies to the Board of Directors. The Board of Directors and the Corporate Sustainability Committee hold at least one meeting eachyear to discuss the management of material topics and formulate the direction and strategic goals for sustainable development in the coming year.
Material topics that
Impacthave an impact onlevel
FET and stakeholders

Corresponding GRI topics

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Scope and boundaries of economic, environmental, and social impacts
Internal
Business partnership
Other interest groups
FET,
Suppliers/
SocialCorporate Consu- Competentincluding
Arcoa Contractors/
welfarecustomers
mers
authority
NCIC
Developersgroups/NGOs

Corresponding
chapter

Network quality andinfrastructure

203 Indirect economic impact

4.6 Industrial Infrastructure

Information security andprivacy protection

418 Customer privacy

1.3.3 Risk Management

Social innovation
strategy and application

N/A

2. Smart Sustainability

N/A

4.7.2 Digital Inclusion

204 Procurement practice308 Supplier environmental
assessment
414 Supplier social assessment

3.4 Sustainable Supply Chain

Digital inclusion

Supply chain
managementHigh
impact

3.1 Climate Strategy
Climate strategy

2022

201 Economic performance
302 Energy
305 Emission

3.2FET Environmental
Footprint Overview
3.3 Environmental andEnergy Management

Far Eastone Sustainability Report26About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

Scope and boundaries of economic, environmental, and social impacts
Internal
Business partnership
Other interest groups
FET,
Suppliers/
SocialCorporate Consu- Competentincluding
Arcoa Contractors/
welfarecustomers
mers
authority
NCIC
Developersgroups/NGOs

Material topics that
Impacthave an impact onlevel
FET and stakeholders

Corresponding GRI topics

Electronic Waste
Management andApplication

N/A

3.3.4 Environmental
Resource Management

202 Market position
401 Employment relationship
404 Training and education

4.1 Human Resources
Management
4.2 Human Resources
Development

Talent development
and managementHigh
impactCorresponding
chapter

Highlights
2022 ESG Highlights

Social care and publicwelfare engagement

N/A

4.7 Public Welfare Care
Project Investment

Corporate Governance
CH1 Corporate
GovernanceBrand image
management

N/A

1.4 The Most Attentive
Service

Smart Sustainability
CH2 Smart
Sustainability

Business performance

201 Economic performance

1.1.1 Company Overview

Environmental Sustainability
CH3 Environmental
Sustainability

Corporate governanceand integrity

205 Anti-corruption
206 Anti-competitive behavior
415 Public policy

1.3.2 Integrity
Management
1.3.4 External Participation

Social Inclusion
CH4 Social
Inclusion

Risk management andemergency responses

N/A

1.3.3 Risk Management

Appendix
AppendixCompliance withregulations andresponse

2-27 Compliance withregulations

1.3.2 Integrity
Management

Strategy andapplication ofenvironmental
resources

204 Procurement practice308 Supplier environmental
assessment
414 Supplier social assessment

3.3 Environmental andEnergy Management
3.4 Sustainable Supply
Chain

Environmental resource
management andapplication

303 Water and effluents
305 Emission
306 Waste

3.2 FET's Environmental
Footprint Overview

2022

GeneralimpactFar Eastone Sustainability Report27Corresponding GRI topics

Occupational diversity
and inclusion

Employee diversity and equal
opportunity
Non-discrimination
Freedom of association andcollective bargaining
Child labor
Forced or compulsory labor

4.1 Human Resources
Management
4.2 Talent Development
4.3 Human Rights
Management
4.4 Employee Care andCommunication

Human rights issues

Employee diversity and equal
opportunity
Non-discrimination
Freedom of association andcollective bargaining
Child labor
Forced or compulsory labor

4.1 Human Resources
Management
4.2 Talent Development
4.3 Human Rights
Management
4.4 Employee Care andCommunication

Employee health andsafetyOccupational safety and health

4.5 Employee Health andWorkplace Safety

Customer experienceand transparent
communication

Marketing and labeling

Communication
and research onelectromagnetic wave
issuesLocal community
Customer health and safety

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

GeneralimpactSmart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Scope and boundaries of economic, environmental, and social impacts
Internal
Business partnership
Other interest groups
FET,
Suppliers/
SocialCorporate Consu- Competentincluding
Arcoa Contractors/
welfarecustomers
mers
authority
NCIC
Developersgroups/NGOs

Material topics that
Impacthave an impact onlevel
FET and stakeholders

2022

Corresponding
chapter

1.4 The Most Attentive
Service

3.5 Base Stations andElectromagnetic Wave
Management

Far Eastone Sustainability Report28

1.3 Corporate Governance1.3.1 Corporate Governance Organization
About FET
About
FET

The Board sits atop the managerial level of the company, with responsibility for appointing and supervising the management team, monitoring operating performance, preventing conflictsof interests and ensuring compliance with laws, regulations, and the Articles of Incorporation of FET. FET has "Audit Committee," "Remuneration Committee," "CSR Committee" and"Risk Management Committee" in place to support management of the organization. FET has a clearly defined organizational structure with different business groups under the President's
management. The Chairman of the Board of Directors is isolated to establish a governance structure that is objective and independent from management. For detailed descriptions on the
responsibilities of existing departments, please refer to FET's 2022 annual report

Contents
Contents
Audit Committee

Shareholders’ Meeting

Message from
Messagefrom Management
Management
Remuneration Committee

Highlights
2022 ESG Highlights

Board

Corporate Governance
CH1 Corporate
GovernanceRisk Management Committee

Smart Sustainability
CH2 Smart
Sustainability

Internal Audit

ESG Committee

ChairmanVice Chairman

Environmental Sustainability
CH3 Environmental
Sustainability
President

Corporate Information
Security OfficeSocial Inclusion
CH4 Social
Inclusion

Occupational Safety& Health office

Corporate Communications &Social Responsibility Division

Appendix
Appendix

CBUTelecom
Business

2022

CBUDigital
SeervicesEnterprise&
Carrier BU

Channel& CareManagement

Network&
Technology

Information& Digital
Transformation
Technology

Finance& Facility
Services

Legal &
Procurement

President
Office &Human
Resources

Far Eastone Sustainability Report29Composition and Functionality of the Board of Directors

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

The term of the board of directors expires in 2021 for re-election, FET's 9th Board of Directors has 11 directors who serve a term of three years from July 22, 2021 until July 21, 2024. In
order to implement and strengthen the functions of the Board of Directors and to exert its supervisory function, FET regularly conducts the re-election of directors. The average tenureof the members of the Board of Directors is 13 years. The Board of Directors includes three independent directors6 and one female director, whose presence ensures independence
and brings diversity along with stakeholders' opinions to the Company's governance system. Board of Directors members are chosen through stringent selection procedures using thenomination system, in which shareholders are able to exercise rights to the fullest extent. Independent director candidates are required to comply with the independence criteria outlinedin "Regulations Governing Appointment of Independent Directors and Compliance Matters for Public Companies." The selection process takes into account not only candidates' personal
professional capacity, but also their ethical behaviors and leadership reputation.
In order to ensure the diversity of the Board, FET welcomes directors with extensive global vision, management experience or academic achievement to join its board. With greater diversity
in the Board of Directors, board members will be able to contribute objective opinions on different areas of expertise (such as telecommunications, finance, economics and corporate
governance) to the management, and guide the Company's strategies on economic, environmental and social issues, which leads to the best decisions for shareholders and the society. FET
also purchases liability insurance coverage to protect itself from liabilities, risks and financial losses that arise as a result of third party lawsuits led against directors for business decisions they
have made.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Title

name

Nationality

GenderMajor Education & Experience

Chairman

Douglas Hsu

R.O.C

Male

President of Far Eastern New Century
Corporation

Chairman of Far Eastern New Century Corporation; Chairman of Asia Cement Co. ,Ltd. ; Chairman of Far Eastern Department Stores Ltd. ; Chairman of Oriental Union
Chemical Corp. ; Chairman of U-Ming Marine Transport Corp. ; Chairman of New
Century InfoComm Tech Co. , Ltd. ; Vice Chairman of Far Eastern International Bank.

Vice Chairman

Peter Hsu

R.O.C

Male

Vice President of Ding & Ding Management
Consultants Co. Ltd.

Vice Chairman of Far Eastern New Century Corporation; Director of Asia Cement Co.
, Ltd. ; Director of U-Ming Marine Transport Corp.

Male

Vice Chairman of Far EasTone
Telecommunications Co. , Ltd. ; President of
Far EasTone Telecommunications Co. , Ltd. ; Sr.
Executive VP of Satelindo Telecom Indonesia.

None

Male

The 14th Academician of Academia Sinica,
Taiwan; KwohTing Li Professor in Economic
Development, Stanford University,U.S.A. , ViceChancellor (President) of The Chinese Universityof Hong Kong; Chairman of CIC International(Hong Kong) Co. , Limited.

Ralph and Claire Landau Professor of Economics, The Chinese University ofHong Kong; Independent Non-executive Director, CNOOC Limited in HongKong;Independent Nonexecutive Director, AIA Group Limited in Hong Kong;
Independent Non-executive Director, Semiconductor Manufacturing International
Corporation; Member of the Hong Kong Special Administrative Region Exchange
Fund Advisory Committee.

Male

Emeritus Professor, National Tsing Hua
University; Deputy Convener, National
Information & Communication Security
Taskforce, Executive Yuan; Minister, Ministry of
Science and Technology; President, Industrial
Technology Research Institute.

Independent Director, United Microelectronics Crop. ; Independent Director, Qisda
Corporation; Director, Iridium Medical Technology Co. , Ltd. ; Director, GeoThings
Inc. ; Director, Alpha Ring Asia Inc.

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Director

Appendix
Appendix
Independent
Director

Independent
Director

2022

Jan Nilsson

Lawrence
Juen-Yee
LAU

Jyuo-Min
Shyu

SwedenHong Kong(China)R.O.C

Current Position with Other Company

Far Eastone Sustainability Report30TitleAbout FET
About
FET

name

Nationality

GenderMajor Education & Experience

Current Position with Other Company

Distinguished Professor of Department of Electrical and Computer Engineeringand Vice President (University System of Taiwan), NYCU; Director of IoT Intelligent
Systems Research Center, NYCU.

Independent
Director

Ta-Sung Lee

R.O.C

Male

Provost, NYCU. ; Vice President for Researchand Development, NCTU. ; Chairman of
Telecom Technology Center. ; Vice President
for Student Affairs, NCTU. ; IEEE Signal
Processing Society Regional Director-at-Large.
; Commissioner of National Communications
Commission (NCC). ; Chairman of Departmentof Communication Engineering, NCTU.

Director

Champion
Lee

R.O.C

Male

President of Yuan Ding Co. , Ltd. ; Sr. EVP of
Far Eastern New Century Corporation

Director of Far Eastern New Century Corporation; Director of Asia Cement Co. , Ltd. ;Director of U-Ming Marine Transport Corp.

Male

Worked as a Strategy and Design Consultant in
the United States with clients ranging from hitech startups to Nestle, Denso Automotive, Kia
Motors, and Target. ; Captain’s commission
in the United States Marine Corps

Director of Far Eastern New Century Corporation; Chief Innovation Officer of Far
Eastern Group; Director and Executive Vice President of U-Ming Marine Transport
Corp

Vice President of the Chung-Hua Institution for Economic Research and Director of
the Third Research Institute; Independent Director, YEM CHIO CO. , LTD. ; Directorof the Asia Pacific Emerging Industry Management Co. , Ltd. ; Supervisor of ECSY
Network Co. , Ltd. ; Chairman of Smart Mobility

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

Director

Jeff Hsu

Director

JiannChyuan
Wang

R.O.C

Male

Advisor of the Ministry of Economic Affairs;
Committee of the Ministry of Economic Affairs;
The 9th Chairman of the Taiwan AsiaPacificIndustrial Analysis Professional Association.

Director

BonniePeng

R.O.C

FemaleChairperson of the 2nd term of National
Communication Commission; Professor,
Department of Journalism (Graduate program),
National Chengchi University, Taiwan

Adjunct Professor, College of Communication, National Chengchi University; Adjunct
Professor, School of Communication, Ming Chuang University

Director

Toon Lim

Singapore

Male

Chief Operating Officer, SingTel Group

Advisor, SingTel Group、Board Director, APT Satellite,HK

U.S.A.

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Note.

The proportion of executive director with employee's identification is 0%, independent directors are 27%, and female directors are 9% in FET. One independent director has a tenure of more than 9 years, two
independent directors has a tenure of less than 3 years. In addition, 6 directors are over 70 years old, 4 are between 60 and 69 years old, and 1 are under 60 years old.

2022

Far Eastone Sustainability Report31Diversity of Board Members
Basic requirements
and value

Professional knowledge and skills

GenderNationality

Professional
backgroundDouglas Hsu

Male

R.O.C

Business

Peter Hsu

Male

R.O.C

Business

Jan Nilsson

Male

SwedenTelecom

MaleHong Kong(China)Economic

Professor of
Economics

R.O.C

Technology

Professorof ElectricalEngineeringand Computer
Science
Professor of
Electrical andComputerEngineering

Name

About FET
About
FET
Contents
Contents

Lawrence

Message from
Messagefrom Management
Management

Juen-Yee LAU

Highlights
2022 ESG Highlights
Jyuo-Min Shyu

Male

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Ta-Sung Lee

Male

R.O.C

ElectricalEngineering /Telecom

Champion Lee

Male

R.O.C

FinanceJeff Hsu

Male

U.S.A

Business

Jiann Chyuan
Wang

Male

R.O.C

Economic

Bonnie Peng

FemaleR.O.C

TelecomToon Lim

Male

Singapore

Telecom

Appendix
Appendix
Note.

Professional
skillsIndustry
experience

Necessary knowledge, skill, and experience Note
Operational
judgement

Accounting
and financial
analysis

Business
Crisismanagement management

International
marketperspective

Leadership

DecisionmakingskillsInformation
skillsProfessor of
Journalism

is referred to possessing partial ability.

The Board of Directors convenes meetings at least once every quarter. Pre-board meetings are held one day before each Board of Directors meeting so that the executive management may
discuss with the Board members in advance about the proposals or resolutions that are to be raised during Board of Directors meeting. The scope of discussion covers diverse topics fromoperational strategy to business risks. All departments of the business units also compile key issues, major risks, and key performances quarterly and report to Chairman, such as major
investments, charity projects, and overall energy saving performances to ensure that the Board of Directors understand the company's overall operations.
Independent directors' opinions are fully taken into consideration in all Board of Directors discussions. Any disagreements or opinions from independent directors are reasoned and recorded
in meeting minutes and disclosed to investors as material information. The Board of Directors held a total of 5 meetings from 2022 to Q1 of 2023. Among them, 5 meetings discussed ESGrelated issues, such as amending partial provisions of the "Corporate Governance Best Practive Principles", remuneration of directors and employees, performance evaluation of the boardof directors (self-evaluation and third-party evaluations), operation of the risk management committee, intellectual property management, tax policy, interests A total of 21 cases of related
person communication, etc. Directors' attendance rate was 98% in terms of personal attendance, and 100% when including proxy attendance.

2022

Far Eastone Sustainability Report32Third Party Evaluation

Avoidance of Conflict of Interests by Directors

About FET
About
FET
Contents
Contents

None of the Board of Directors members held equity stake in any of FET's main suppliers.
To prevent conflict of interests at the highest governance Board of Directors, Article 11 of
the Board of Directors Conference Rules states that directors must uphold high level of selfdiscipline and disassociate themselves from board meeting agendas that present conflict
between the Company's interests and interests of the directors themselves or the corporate
entities they represent. Directors will have their votes voided if they are found to have failed
to avoid conflict of interest. All directors of FET adhere to the principle of self-discipline andcarry out interest avoidance. The outcomes of following the principle of self-discipline in
2022-2023 are illustrated as below:

Message from
Messagefrom Management
Management

Company

Highlights
2022 ESG Highlights

Century
InfoComm
Tech Co.,Ltd.

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Date of
Board
Meeting

ProposalContents

Status of the
Conflict ofInterest

Outcomes of Following
Interest Avoidance

May 4,
2022

The proposed
capital loan to theparent company,
Far EasTone,
will not exceed
NT$11 billion

Chairman
Douglas Hsu has
conflict of interest
since he also is
the chairman of
FET.

Except Chairman Douglas
Hsu has conflict of interest inwhich he cannot participate indiscussions and votes, all otherparticipated directors vote forapproval without objection.

Director Performance Evaluation
Self-Valuation

FET's Board of Directors passed "Rules and Procedures for the Board of Directors'
Performance Assessments"as a means to ensure ongoing improvement of board
performance. FET's performance evaluation procedures require "Self-Evaluation
Questionnaire for Board Members" to be completed by Board of Directors members
and "Evaluation Form for the Agenda Working Group" to be completed by the Financeand Facility Services (F&FS) Group. Outcome of the evaluation is reported to the Boardof Directors in the first quarter of the following year by the Finance and Facility Services
Group. The company's 2022 Improvement Plans are (1) the company has amended articles
of incorporation to increase the number of independent directors in 2022 to increase thenumber of independent director seats to four, starting from the 10th board of directors. (2)the company will carefully evaluate the possibility to set up nomination committee.
Director Performance Evaluation Procedures
Beginning of thefollowing year
F&FS reports outcome
Internal Audit notifies F&FS completes an
Review the design"Evaluation Form for the of overall assessment
board members toof self-assessment
Agenda Working Group" during the Q1 board
complete "Board
questionnaire andevaluation form regularly Member Selfassess- based on actual execution meeting of thefollowing year
ment Questionnaire" of the annual agenda
according to law
Yearly2022

Every year-end

FET's director performance evaluations are conducted at least once every three years byan independent professional institution or a team of experts and scholars from outside
the Company. The professional institution or team of experts / scholars chosen to perform
evaluation must satisfy the two following criteria:(1)An institution or management
consulting company that specializes in organizing Board of Directors training courses
and improving corporate governance. (2)An outside team consisting of experts andscholars specialized in Board of Directors matters or corporate governance affairs FET in
2021 commissioned risk consulting Taiwan Corporate Governance Association(TCGA)
to evaluate Board effectiveness and performance and received evaluation report on
December 9, 2021. The aforementioned results of external evaluations have reported
to the 4th meeting of the 9th term of Board of directors on February 25. The futureenhancement direction is mainly to study the increase in the number of independent
directors and to evaluate the establishment of a nomination committee.
Board Performance Evaluation Result Conclusions:
1. The Company has been ranked in the top 5% of the Corporate Governance Evaluation
among listed companies for seven consecutive years, and has been continuously selected
as a component of the DJSI-World. The Company has excellent performance in corporate
governance.
2. The Company took the initiative to upgrade the Risk Management Committee to afunctional committee at the board level in accordance with actual operational needs. Thisshows that the Company is committed to risk and crisis management.
3. The Company arranges a pre-board meeting where board members are invited tocommunicate with the management team. The Board members have good interaction withthe management team.
4. The Company set up the"2018-2025 Sustainable Development Strategy Roadmap"andproactively implement corporate responsibility for sustainability.
5. The Company has been regularly reviewing the succession status of senior managers. It's
able to cultivate a succession pipeline and reserve talents for sustainable development.
Recommendation:
1. The Company may consider increasing the number of independent directors (currently
has 3 independent directors) in the future to enhance the diversity of expertise of the
independent directors and improve the independence of the board of directors.
2. The Company may consider setting up an official nomination committee to set an example
for benchmark companies.
Improvement Plans:
1. The company has amended articles of incorporation to increase the number of independent
directors in 2022 to increase the number of independent director seats to four, startingfrom the 10th board of directors.
2. The company will carefully evaluate the possibility to set up nomination committee.

Board Performances
Evaluation Process and Report

Rules and Procedure for the Board of
Directors’Performance Assessments

Far Eastone Sustainability Report33About FET
About
FET

Directors Training

Audit Committee

All local directors of FET are required to undergo regular training and foreign directors
are also provided trainings in English by experts to ensure continual improvement ofknowledge in areas such as sustainable management and corporate governance. Training
courses completed in 2022 by local and foreign directors are listed in the following table,
and apart from training, the Company also updates directors on the latest corporate
governance-related regulations every six months.

FET assembled an "Audit Committee" to replace supervisors. The committee consists ofthree independent directors, and is intended to assist the Board of Directors in supervising
the quality and credibility of internal practices such as accounting, auditing, financial
reporting, and financial control, and contribute to the creation and enhancement ofrelevant corporate governance policies. The Audit Committee is empowered to conduct
any audit and investigation deemed suitable, and has direct contact with the Company's
internal auditors and financial statement auditors. The Audit Committee convenes
meetings on a quarterly basis with the audit manager and the accountant reporting
their operations and audit results of financial statements respectively. A total of 5
meetings were held in 2022 to Q1 of 2023. Minutes are compiled after the end of each
Audit Committee meeting with details of important discussions and resolutions, which
are subsequently notified to directors, the President and members of the Company's
executive management. Communications have been made to ensure they completely
understood the way of conducting, the result, and proposed recommendations.

Organizer

Contents
Contents

CourseTraining
Hours

Number ofParticipants

Taipei Foundation Of
Finance

Metaverse Development
Opportunities and Financial
Industry Case Sharing

2

1

Taiwan Stock Exchange
Corporation、Alliance
Advisors、Taiwan Corporate
Governance Association

International Twin Summit

2

1

Corporate Governance
CH1 Corporate
GovernanceTaiwan Corporate
Governance Association

Corporate Governance-Insider
Trading & 3.0 Sustainable
Development Roadmap

Smart Sustainability
CH2 Smart
Sustainability

Taiwan Corporate
Governance Association

Risks and Opportunities of
Sustainability

15

5

Taiwan Corporate
Governance Association

Strengthening digital resilienceand constructing strategies
for strengthening information
security governance of listedcompanies

3

1

Taiwan Corporate
Governance Association

Talking about the Legal
Responsibilities of Enterprise
Directors from the Perspectiveof Intellectual Property Rights
Management

3

1

Securities and Futures
Institute

Annual Insider Trading Prevention
Promotion Conference in 2022

3

1

Securities and Futures
Institute

The Challenges and Opportunities
of Sustainable Development
Roadmap and Introduction ofGreenhouse Gas Inventory

3

1

Taiwan Academy of
Banking and FinanceCorporate Governance

15

5

Taiwan Academy of
Banking and FinanceCorporate Governance

15

5

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Audit Committee Communication Policy
155Frequency

Participants

Responsibilities

QuarterlyInternal Audit
Officers,
Independent
Directors

Internal Audit office is under Board of Directors andimplements the audit process based on annual plans.
It presents the outcomes of internal audits and internal
control in the board meetings and has the power tohold meetings immediately if important irregular events
happened. In addition, audit officers will present themonthly reports to independent directors.

Certified Public
Accountant,
Independent
Directors

The Certified Public Accountant will present to
independent directors based on company's financial
status, local and oversea subsidiaries' financial and overall
operation status and internal audit status, and fullycommunicate about the status of whether major adjusting
entries and legislative amendments affect the accounting
status. The Certified Public Accountant also has the power
to hold meetings immediately if important irregular events
happened. Independent directors shall appoint Certified
Public Accountant to audit the financial reports andprovide the audit reports for discussion.

Annual

Risk Management Committee
FET restructured its risk management organization in 2018 and brought the Risk
Management Committee (RMC) to the board level. The roles and responsibilities include: 1.
reviewing risk management policies and structures, risk appetite or tolerance, 2. reviewing
management reports on major risk issues, 3. reporting the risk management situation
to the board of directors in due course. The committee meets at least twice a year andFar Eastone Sustainability Report34

may hold meetings at any time as needed. The members of the RMC are appointed by the board of directors. The number of members should not be less than three, and more than halfof them must be independent directors. The members in 2022 are Jyuo-Min Shyu, Lawrence Juen-Yee LAU , and Bonnie Peng. For details, please refer to the "Board member diversity skill
matrix". Two meetings were hold in 2022. RMC aims to implement enterprise risk management from a more comprehensive perspective that encompasses scopes including financial risk,
strategic and operational risk, information security risk, and environment and energy risk.

About FET
About
FET

Remuneration Committee

Message from
Messagefrom Management
Management

The purpose of the Remuneration Committee is to assist the Board of Directors in implementing and evaluating the Company's overall compensation and benefits policies, as well as the
remuneration of directors and executives 1 FET's Remuneration Committee consists of three members, two of whom are independent directors of the Company. The disclosure of their
independence is stated in the Annual Report. A total of three meetings were held in 2022 to Q1 2023. In addition to considering financial performance, FET's senior executives and all
employee salaries align with customer loyalty. The compensation needs to be submitted for approval by the Board of Directors. At the same time, ESG performance is incorporated into thesalary assessments of those in managerial-levels and above. Each year, ESG goals must be set based on the nature of the business, accounting for at least 5% of the overall performance
evaluation. Regarding the remuneration of directors and executives, the Remuneration Committee regularly reviews and evaluates it based on the actual operating conditions and changes
in the relevant laws, and submits it to the Board of Directors for discussion, so as to seek a balance between the sustainable operation of the Company and risk management.

Highlights
2022 ESG Highlights

Policies and procedures for payment of directors'
remuneration

Contents
Contents

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

The remuneration of directors can be divided into three
categories: compensation, remuneration from profit
distribution, and business execution expenses, which
are determined and handled by the Remuneration
Committee and the Board of Directors. In addition toconsidering the Company's operational performance,
the distribution of directors' remuneration also takes into
account the representative equity held by each director
and their dedication to the Company's affairs. The
business execution expenses are mainly for transportation
and are determined based on the standards of the hightech industry. The standards, structure, and system forthe distribution of remuneration will also be flexibly
adjusted according to future risk factors.
Ratio of directors' compensation to after-tax net income

CEO and Manager Compensation Policy and PracticeManagers may receive three different forms of compensation: salary, bonus and allowance, and employee remuneration.
Salaries are determined at levels that reflect employees' work performances, while taking into consideration several factors
including: the nature of job duty, the overall environment and the market rate. Bonuses and allowances consist mainly oftravel allowance, which employees are entitled to choose between fixed vehicle subsidy, vehicle rental or mileage-based
subsidy. Employee remuneration is allocated according to the bonus policy, which takes into account the Company's financial
and non-financial goals, employees' individual annual business performance indicators, ESG performance indicators, and theCompany's operating performance. Regarding the actual distribution ratio and amount of performance bonuses for CEO
and senior managers 2, the results were decided by the Remuneration Committee and the Board of Directors based on the
aforementioned operating indicators. The ratio of CEO compensation to the median of other employees is approximately
27.42: 1 in 2022. Please refer to the appendix for the CEO compensation performance indicators. Managers' compensation
standards, structures and systems are adjusted from time to time to accommodate the Company's actual performanceand changes in regulations. Compensations are set in a manner that discourages managers from taking risks beyond theCompany's tolerance. In order to prevent CEO and senior managers from pursuing profits through improper conduct, thecompany has a deferred bonus system, which will issue two-thirds of performance bonuses in March of the following year
and one-thirds of performance bonuses in July of the following year.
Ratio of managers' compensation to after-tax net income
1.90%

1.19%

1.21%
1.14%

1.17%

1.79%
1.72%
1.67%

2019

2022

2020

2021

2022

2019

2020

2021

2022

1.

Managers include the President,
executive vice presidents, senior vicepresidents, and vice presidents.
2.
The CEO and senior managers of FET
are local talents (nationality is Taiwan),and the senior managers are vicepresidents (or above).

Far Eastone Sustainability Report35Internal Audit System

FET has established its Internal Audit in accordance with the "Regulations Governing Establishment of Internal Control Systems by Public Companies" byFinancialSupervisory Commission (FSC). Internal Audit is under the supervision of the Board. Appointed by the Board, the audit manager determines the auditsite according tothe business scope and audit plan, and submits it to the Board for review.

About FET
About
FET
Contents
Contents

Shareholder Structure
As at December 31, 2022, Far Eastern New Century Enterprise and affiliated companies directly or indirectly held 38.33% shares of FET respectively. Since
Far Eastern New Century and subsidiaries have jointly acquired more than half of total seats on FET's Board of Directors, Far Eastern New Century is deemed
to exercise controlling influence over financial, operational and human resource policies in its parent company, and is therefore recognized as FET's ultimate
parent company. Below is a list of FET's shareholder structure as at July 20, 2022.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Note.

Investor Relations

Government
Institutions

Financial
Institutions

Other
Institutional
Shareholders

Individual
Shareholders

Foreign
Institutions andForeigners

Total

Number of Shareholder

6

35

235

35,404858

36,538

Number of Shares

117,328,411

658,453,512

1,538,761,098

126,906,049

817,051,740

3,258,500,810

Shareholders structure

3.60%

20.21%

47.22%

3.90%

25.07%

100%

Message from
Messagefrom Management
Management

Smart Sustainability
CH2 Smart
Sustainability

Internal Audit Organization
and Operation

According to the official's latter No. 0990002770 of Financial Supervisory Commission (FSC) on January 15, 2010, the telecommunications Enterprise was the prohibited investment industry. Therefore,
mainland China's people, legal persons, groups and other institutions are unable to invest in the company. The percentages of ownership of China investors is "0".

Top 10 Shareholders (As of July 20, 2022)

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Note.

Name of Shareholder

Shareholder Structure (%)

Yuan Ding Investment Co., Ltd

32.73

Shin Kong Life Insurance Co., Ltd

7.17

Cathay Life Insurance Co.,Ltd

6.66

NTT DOCOMO INC Note

4.71

Yuang Tung Investment Co., Ltd

3.08

Chunghwa Post Co., Ltd

2.76

An Ho Garment Co., Ltd.

1.25

Labor Pension Fund(New Scheme)

1.21

Taiwan Life Insurance Co., Ltd.

1.12

Kai Yuang Investment Corp

1.09

Top 10Shareholders
As of July 20,
2022

The company has sold all of its shares to Asia Cement Corporation on March 8, 2023.

2022

Far Eastone Sustainability Report36

Tax Policy and Management
Tax Policy

About FET
About
FET
Contents
Contents

Adhering to the core value of integrity, FET formulated tax policies
and management
measures, and paid taxes based on operation performance. We are committed topromoting corporate innovation and sustainable economic development to fulfill its
corporate social responsibility.
Commitment:

Tax Risk Management

Changes in tax laws and regulations will affect the effective tax rate and operating
performance of the company. In order to effectively manage tax risks, Far Eastern has
incorporated its tax policies into the Far Eastern Risk Management System. The processesof risk identification, measurement, monitoring and reporting are adjusted in response tochanges in the Company's operating environment and business and operational activities,
and are annually reported to the Audit Committee by the risk management organization.
Please refer to "1.3.3 Risk Management" in this report for more details of the remote risk
management system.
Tax Overview

Message from
Messagefrom Management
Management

Comply with tax laws, regulations, and local taxation standards to ensurehonest declarations.

Highlights
2022 ESG Highlights

Financial statements and tax information disclosed regularly in accordance with
relevant regulations and standards to enhance company transparency.

Corporate Governance
CH1 Corporate
Governance

We do not engage in tax planning for the purpose of tax avoidance.

Smart Sustainability
CH2 Smart
Sustainability

Related-party transactions shall comply with the transfer pricing regulations
issued by the Organization for Economic Cooperation and Development(OECD). Profits shall not be transferred intentionally to countries with low tax
rates.

Environmental Sustainability
CH3 Environmental
Sustainability

All major transactions and decisions of the company shall take into
consideration the effect of taxation.

Social Inclusion
CH4 Social
Inclusion

Maintain trusting communication with tax authorities and align with thegovernment to promote sustainable development policies.

Appendix
Appendix

Tax Governance

The Company's tax policy is approved by the board of directors, and the chief financial
officer is ultimately responsible for tax management, and the accounting office isauthorized to handle daily tax administration and management. Through regular trackingof changes in tax regulations, consulting services provided by outside professionalorganizations and communication experience with tax authorities, the accounting unit
strengthens the professional knowledge of tax personnel and fulfills the obligation to filehonestly and pay taxes.

2022

FET and its subsidiaries primarily operate in Taiwan. In addition to being exempt fromincome tax on dividends obtained from domestic investments and enjoying investment
tax credit, FET pays corporate income tax based on 20% statutory tax rate in Taiwan.
The effective tax rate for 2022 was 19.11%, and the cash tax rate was 16.21%, which islower than the average effective tax rate (25.30%) and average cash tax rate (23.14%)
for the "Telecommunication Services Industry" published by the SAM CSA Companion.
This was mainly due to the fact that Taiwan's revenue accounts for more than 95% of
FET's total revenue and is subject to Taiwan's statutory tax rate of 20%. The effective tax
rate in 2022 is lower than 20% statutory tax rate due to the recognition of investment
losses from capital reduction to write off losses and other adjustments under the tax law,
the tax effect was approximately $138.9 million. Excluding this tax impact, the effective
tax rate for 2022 was about 20.27%, which is in line with the statutory tax rate. The cash
tax rate is lower than 20% statutory tax rate, mainly because FET's subsidiary is exempt
from income tax in accordance with Article 4 of the Income Tax Act on the sale of land in
2021, resulting in a tax benefit of approximately NT$370 million.
Unit: NT$ Thousand

The Effective Tax

2020

2021

2022

Income before Income Tax

10,192,468

11,080,785

11,999,081

Amount of income tax

1,747,846

1,846,904

2,293,193

Amount of income tax paid

167,600

2,024,081

1,945,422

Effective tax rate

17.15%

16.67%

19.11%Cash tax rate

1.64%

18.27%

16.21%Far Eastone Sustainability Report371.3.2 Ethical Corporate Management

About FET
About
FET

FET has been disclosing relevant information through portal, annual reports, prospectus, and the Taiwan Market Observation Post System (M.O.P. S.) to ensure transparency of corporate
governance practices. This information is also communicated internally to all employees through orientation training and the intranet. Furthermore, the Company evaluates "Integrity" aspart of employees' performance appraisal. In terms of external governance, FET uses commercial documents, such as "The Code of Business Conduct Agreements" as part of the "Supplier
Information Form," to ensure stakeholders' compliance and respect for FET's ethical and trustworthy standards. Any donations by FET are subject to Board of Directors' approval, according
to "FET Board of Directors Conference Rules
Legal ComplianceContents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

FET complies with the authority's rules and laws on corporate governance, trustworthy management, environmental protection and labor rights, and has taken actions to enhance legal
education within the organization. FET regularly conducted staff trainings to apply legal compliance to all workers' tasks and responsibilities. In addition, FET also utilized the board meeting
cycle to promote "The Code of Business Conduct " and "The Code of Ethics " to the board of directors and management level four times a year. In 2022, FET organize "The Code ofBusiness Conduct and the Code of Ethics" training to 5,311 staff members with 100% completion rate and a total of 1,770 person-hour. In 2022, there were no violations of anti-bribery,anti-competitive policies and monetary losses.
The Code of Business Conduct and The Code of Ethics
Both FET and Arcoa have in place "Integrity Management Procedures and Guidelines", "Whistleblowing Management Measures for Violations of Integrity Management", and "Code of
Ethics". FET has established a comprehensive employee code of conduct system, covering aspects such as ethical integrity, data confidentiality, environmental safety and health, and antidiscrimination. FET implements integrity management through the "Code of Business Conduct" and "Code of Ethics", and regulates through human rights policies, anti-discrimination andanti-harassment policies. At the same time, FET promotes and arranges relevant training courses for new and all employees on topics such as anti-corruption, integrity management, anddata confidentiality. Aided by core competency courses and legal case studies, FET strongly promotes these values and monitors them through daily internal control mechanisms. In 2022,
there were no violations of the Code of Conduct, meaning that no occurrences of corruption, discrimination, information leaks, conflicts of interest, anti-competitive behavior, money
laundering, or such similar matters took place.

Environmental Sustainability
CH3 Environmental
Sustainability

Whistle-blowing Channels

Social Inclusion
CH4 Social
Inclusion

FET has set up mailboxes that internal and external personnel may use to express opinions or report violations against the Code of Business Conduct or the Code of Ethics FET employees
are entitled to express opinions or report misconducts according to the "Trustworthy Business Violation Reporting Policy" over the intranet. Upon receiving employees' claims, thehandling department will immediately follow up with inquiries or begin investigations if necessary. Arcoa also has an "Opinion Box" available for employees to express opinions or reportmisconducts. FET and Arcoa had no breaches against code of conduct/ethics in 2022. Other reporting channels include:

Appendix
Appendix
1. FET whistle-blower internal email: Whistle_blower@fareastone.com.tw
2. FET external email: Ombudsman@fareastone.com.tw
3. Arcoa whistle-blower internal email: connect@arcoa.com.tw
Arcoa external email: audit@arcoa.com.tw
4. The Far Eastern Group procurement management e-mail: http://www.ecome.com.tw/
A00BG/ABG_Connection.aspx

2022

Far Eastone Sustainability Report38Violation of laws and regulations
FET violated a total of 3 governance and economic regulations in 2022, an increase of 3 compared to 2021. The following is an explanation of the number of major violations, the nature of
the penalties, the violations, and the improvement measures for the current year:
Summary of breaches of external regulations in 2022
Contents of the dispute

About FET
About
FET

Category

No.

EntityDescription of violation

ArticleFETThe National Communications Commission
determined that in the Gangshan District ofKaohsiung City, a radio station obtained a license
without proper inspection and illegally usedpublic telecommunications network base stations
without authorization

Article 37,
Paragraph 9 of theTelecommunications
Management Act

FET

The National Communications Commission
received a petition from the public regarding asuspected unauthorized installation of a basestation in Taoyuan District, Taoyuan City. Afterinvestigation, it was found that the site in question
has not completed the registration process for thebase station.

Article 37,
Paragraph 9 of theTelecommunications
Management Act

FET

The National Communications Commission
received a complaint from the Hsinchu County
Government regarding the suspected illegal
installation of a base station in Zhubei City,
Hsinchu County. After investigation, it was foundthat the said location did not have a registeredbase station.

Article 37,
Paragraph 9 of theTelecommunications
Management Act

Contents
Contents
1

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Governanceandeconomy2

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

3Social Inclusion
CH4 Social
Inclusion
Note.

Appendix
AppendixFine (in NT$)

300,000

300,000

300,000

OthersanctionsImprovement measures

None

Continuously communicate with customers
and coordinate with the NCC to streamline
the license application process and reduce
the occurrence of fines due to the earlylaunch of makeshift stations

None

Continuously communicate with customers
and coordinate with the NCC to streamline
the license application process and reduce
the occurrence of fines due to the earlylaunch of makeshift stations

None

Continuously communicate with customers
and coordinate with the NCC to streamline
the license application process and reduce
the occurrence of fines due to the earlylaunch of makeshift stations

This table discloses fines of NT$300,000 or more.

2022 Summary of fines for violation of laws and regulations

2022

Fine payment status

Count

AmountPrior financial year's fines

00

New fines

3 items

NT$900,000

Fines paid

3 items

NT$900,000

Year-end accrued fines

00

Far Eastone Sustainability Report391.3.3 Risk Management
Risk Management System

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

FET’s Risk Management Committee is a functional committee at the board level, with its members appointed by the board and more than half of them being independent directors.
To implement corporate risk management, FET refers to the international standard "ISO 31000 Risk Management - Principles and Guidelines" and follows the P-D-C-A (Plan-Do-CheckAct) model to formulate the "Risk Management Policy", which is approved by the board on November 5, 2018, and serves as the guiding principle for all divisions. The policy covers
management objectives, organizational structure and responsibilities, and risk management procedures to effectively identify, measure, monitor, and control various risks, ensuring risks are
kept within acceptable levels. Furthermore, FET reviews with the board on February 15, 2023 and continuously enhances the operation of its risk management mechanisms in accordancewith "the Corporate Risk Management Best Practice Principles for TWSE/GTSM Listed Companies" announced by the Taiwan Stock Exchange.
FET categories and implements risk management in the following areas: Financial Risk, Strategic and Operational Risk, Information Security Risk, and Environment and Energy Risk. To
achieve comprehensive risk management, the company has established a multi-level risk management framework that includes: (1) all divisions; (2) the Executive Management Team (the“EMT”); (3) the Risk Management Committee (the “RMC”); and (4) the Board of Directors and Internal Audit, featuring the flexibility of risk management, supervision, as well as risk
response, to better control risks in a rapid-changing business environment while achieving the Company’s strategic goals. The responsibilities and corresponding authorities of each levelare outlined in the following chart:
Board of Directors

Corporate Governance
CH1 Corporate
GovernanceSupporting Office

Risk Management Committee

Smart Sustainability
CH2 Smart
Sustainability
Executive Management Team (EMT)

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Financial Risk

Strategic & Operational Risk

Information Security Risk

Environment & Energy Risk

Observe and evaluate how changes ininterest rate, exchange rate andinflation rate affect the Company’s
profit and loss and investment plans.

Determine overall strategic directions
and each division creates its own
strategies and goals to be in line withthe overall strategies

Consider legal compliance, personal
data protection, risk management andcrisis management to establish security
policies and frameworks

Cross-functionally identify and management
risks, and ensure the effectiveness of theenvironmental and energy management
systems Strategic & Operational Risk

Executive Management Meeting

Corporate Security Committee

Corporate Social Responsibility Committee

Environment and Energy Management Committee

Supervisory Unit Internal Audit

Environmental Sustainability
CH3 Environmental
Sustainability

All Divisions
note.

The roles and responsibilities of the risk management organization at various levels are detailed on p.67 of the 2022 annual report.

2022

Far Eastone Sustainability Report40

Risk Management Process and Operations
FET refers to the international standard "ISO 31000 Risk Management - Principles and Guidelines" toestablish the risk management process.

About FET
About
FET

01

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

02
Risk Identification

Risk Analysis

The business units should
continuously monitor internaland external environmental
changes and consider the
impact of stakeholders to
identify the risk sources andissues.

The identified risks are analyzed
based on their threats,
likelihood of occurrence, andimpact to determine their risk
levels. Evaluating the risks withconsidering factors such as
business nature, scale,complexity, and the opportunity cost of risk, to set thepriority for treatment.

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

The risk appetites by risk category are described as follows :Financial Risks : FET is cautious for financial exposure or loss. We
aim to have the right balance among prudent financial policies,
sufficient business investments, and various stakeholders’ interests, tooptimize a high level of return in pursuing strategic objectives.
Strategic and Operational Risks : FET is willing to accept
reasonable risks for innovative technology solutions to meet user
demands in the rapid-changing business environment. Whilst, FET
is committed to comply with relevant laws and provide high quality
services to our customers. We implement strict policies to minimize therisks on business continuity to maintain market competitiveness andesteemed reputation.
Information Security and Privacy Risks : FET has no appetite (zerotolerance) for unauthorized access to systems and confidential data.
We implement strong management and technical control measures tomitigate risks and keep information and communication infrastructuresand customer data secured.

Risk
Management
Process

Environmental Sustainability
CH3 Environmental
Sustainability

Environment and Energy Risks : FET minimizes environmental
hazards and energy supply risks through innovative technology andEnvironmental Sustainable Development. We enhance facility resilience
with backup planning and diverse renewable energy sources to reduce
operational risks.

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Monitoring and Review
The business units should
establish risk monitoringprocedures to continuously
observe and regularly present
risk monitoring reports forreview and improvement.

04

2022

As the highest risk management decision-making unit, the Board of
Directors is in charge of approving the company's risk management
policies and framework and supervising the effective operation of
the mechanism. The Risk Management Committee (the “RMC”)
reviews risk appetite, risk tolerance levels, and major risk management
reports, and reports on the risk management operation to the Board of
Directors at least once a year.

Risk Treatment
The business units should
prioritize the risks based on therisk assessment results andtake appropriate measures andcontrol actions to mitigate andeliminate the risks effectively.

03

All Divisions identifies risks annually based on significance criteria,
considering economic, environmental, and social governance issues,and potential significant impacts on customers, investors, and otherstakeholders. Risk assessment is conducted based on operational
impact and likelihood, and risk management plans are formulated withnecessary responses. For high-risk issues, regular reports are provided
to the EMT to strengthen control plans and are also submitted to the
RMC for review. The RMC has held two meetings on February 22 andAugust 2, and reported on risk management oversight to the Board of
Directors on November 11, 2022.

Far Eastone Sustainability Report41

In 2022, the Supporting Office coordinated the risk identification and assessment results of all Divisions, submitted them for approval by the EMT, and selected high-risk issues for review at
the EMT meetings and the RMC. The topics covered major threat analysis, risk response strategies, and implementation status, including the following:

About FET
About
FET
Contents
Contents

Risk Topics

Impact Analysis

Response Strategies and Countermeasures

Cyberattack
Risk
Management

FET constantly monitors and detects the trends in remote access, the widespread
adoption of 5G and IoT-related services, and client applications such as mobile
apps. These developments may lead to increased network traffics and pose risks of
DDoS attacks and service interruptions.

FET continued to closely monitor new types of attacks. In 2022, we optimized our
automated blocking mechanisms, strengthened DDoS detection, and enhanced
Defense-In-Depth (DID) mechanisms. These efforts aim to enable quicker responses tosudden surges in network traffic and diverse attack behaviors, ensuring early detectionand effective risk reduction.

Energy Supply
and Regulatory
Compliance
Risk
Management

Taiwan's energy relies on imports. Increasing use of renewable energy,
discontinuity in supply, abolishment of nuclear power generation policy,
inadequate grid resilience, and centralized power plants are factors that pose risksof energy shortages. According to the Ministry of Economic Affairs' future 5-year
electricity supply and demand report, the reserve capacity rate will be below thelegal standard in 2023-2024, making it the period with the highest risk of power
outages. Low-cost power generation options are gradually phasing out, leading toan annual increase in generation costs.
Energy transition and more stringent climate-related regulations are becoming
apparent. Shortage of green energy, guaranteed purchase obligations, andregulatory restrictions make it challenging for businesses to obtain sufficient
supply.

To address the highest risk of power shortages that may lead to power outages, FET
are implementing the following measures:
Regular generator testing
Maintaining reserves of backup fuel and signing emergency fuel transportation
contracts
Establishing a power management system for real-time monitoring of power andbattery healthIn addition, in response to the long-term energy trends, FET will continue to invest indiverse renewable energy sources to enhance our green energy capacity and reduce
potential operational impacts.

Government
Policy Change
Risk

The Ministry of Digital Affairs (referred to as MODA) has been established in 2022.
Relevant regulations (guidance and incentives) are being adjusted to lower theentry barriers for the industry, such as satellite and enterprise private networks,
which may impact existing operators, but it is within our control. The progress ofadapting regulations for the new economy is somewhat slower, but the direction is
towards deregulation.

FET continues to closely monitor the planning and content of regulatory adjustmentsby MODA and relevant government authorities. Through the operation of public
associations, we will express industry opinions and promote the development directionthat benefits the telecommunications and related industries' ecosystem.

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
AppendixSensitivity Analysis and Stress testing
FET performs sensitivity analysis and stress testing for financial and non-financial risks, including operational, information security, environment and energy risks. The responsible unit isin charge of identifying and analyzing the potential threats and vulnerabilities, performing necessary sensitivity analysis and/or stress test every year, implementing control measures, andcontinuously monitoring and improving to ensure the effectiveness of risk management.

Financial Risks
Risk Identification: FET's financial department regularly conducts risk identification every year and identifies two main financial risk factors, interest rate and exchange rate. Sensitivity
analysis and stress test are conducted on the potential impact of fluctuations in the two major factors on the company's operating profit. For detailed analysis, please refer to FET 2022 Q4
Consolidated Financial Statement (p.62~63) and internal management report of "Financial risk& Sensitivity Analysis/Stress Test".
The testing method is to use hypothetical extreme values of interest rates and exchange rates to conduct sensitivity analysis and stress testing on exposure positions, evaluate the impact on
the company's EPS based on the test results, and then adjust the hedging and financial risk management strategies to ensure the company's exposure is still within the controllable range.

2022

Far Eastone Sustainability Report42Non-Financial Risks
For Environmental and Energy risks, FET follows the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) to conduct a comprehensive inventory of thepotential impacts of climate changes and energy risks. FET carries out disaster prevention drills for the main generator room every six months, simulating scenarios include typhoon, flooding
and other natural disasters. Besides, FET also simulates the situations of possible power outages and power shortages, conduct loading stress testing on emergency generators in the main
server room (no-load testing is conducted twice a month / on-load testing is conducted every six months), sign contracts and conduct drills with external oil suppliers.

About FET
About
FET
Contents
Contents

For Information Security and Privacy risks, FET regularly conducts risk identification, analysis and assessment every year and formulates Business Continuity Plans (BCPs). Each responsible
unit simulates natural disasters, cyberattacks and other scenarios, and plans several times of business continuity drills and tests on network services, core information systems, etc., andcontinues to review and improve the countermeasure and protection mechanism, so as to ensure the continuous operation of critical services and the protection of confidential and privacy
information
Audit of Risk Management Process

Message from
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

FET continuously reviews and enhances the risk management mechanisms through external and internal audits. Externally,the company's internal control system is verified annually
by external accountants to ensure no significant deficiencies. Besides, we have implemented international standard validations in various areas, including ISO 27001 for information
security management, BS 10012 for personal information management, ISO 20000 for service management systems, ISO 50001 for energy management, ISO 14001 for environmental
management, and ISO 14064-1 for greenhouse gas inventories, etc. Each year, the responsible unit initiate risk identification, analysis, assessment, risk treatment, and corrective andpreventive actions. External third-party audits are conducted to ensure completeness and effectiveness, driving continuous improvement and optimization. Internally, the Internal Audit
Division serves as the supervisory unit, regularly reviewing the operations of risk management in the audit plan and reporting the results to the Board of Directors. Through the multilayered mechanisms designed and operated by all Divisions, the Executive Management Team, the Risk Management Committee, the Board of Directors, and the Internal Audit Division, FET
maintains the flexibility to control risks, supervise operations, and respond promptly, ensuring timely risk control, swift response, and effective management to achieve corporate strategic
objectives.
Emerging Risks
In response to domestic and international situations, FET continues to identify emerging risks in the environmental, social and governance aspects, assess the impact on operations, andformulate strategic measures to reduce the impact on the company. Annual emerging risks are as follows:
Key emerging
risks

Risk domains

Potential impact analysis

Adaptation and mitigation measures.

Geopoliticalaspects

According to the latest Global Risk Survey released by Oxford Economics on August 2, 2023, a survey ofmore than 100 international companies showed that the views of the international business community
on major threats to the global economy have undergone significant changes, including the Taiwan Strait,
North and South Korea, etc. Geopolitical tension is considered to be the top risk in the next five years.
FET is a critical infrastructure provider in charge of important facilities such as base stations, mobile
communication networks, and server rooms, in the face of unstable geopolitical conflicts, the potential
impact assessments are as follows.
Infrastructure attacks and cybersecurity threats: Geopolitical tensions may endanger the normal
operation of mobile communication networks; for example, in recent years, the possibility of national-levelcyberattacks triggered by technology has continued to exist, and the threat to critical infrastructure has
increased significantly. This situation may lead to interruption of telecommunications services and disruptionof business or personal communication links.
Supply chain disruptions: In the face of global geopolitical tensions, if the supply chain in some regions isinterrupted due to geopolitical factors, it may cause delays in the timely supply of critical components forcommunication infrastructure or key networking equipment, leading to service disruptions or downgrades.

Redundancy, Backup, and Recovery Plans:
Develop effective redundancy and backup
mechanisms, establish disaster recovery site
backup solutions, increase spare equipment
components, and conduct regular drills toensure the continuity of critical operations
and the ability to respond quickly and restore
normal service in emergency situations.
Enhance the resilience of Supply Chain:
Establish diversified sources for the supply
chain to reduce reliance on specific regions or
suppliers.

Appendix
AppendixGeopolitics

2022

Far Eastone Sustainability Report43Key emerging
risks

Risk domains

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EnergyShortage

Environmental
aspects

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
GovernancePotential impact analysis

Adaptation and mitigation measures.

Energy shortages may impact FET's operations in terms of both primary
power supply and water resources, which could result in the following
potential risks: (Electricity and water costs account for about 10% of FET
operating expenses)
Unstable power supply or water shortage: This may lead to disruptions
or decreased quality of communication services, potentially causing
customer-related compensations and other issues.
Increased operating costs: Due to the demands of government energy
transformation, the proportion of high-cost renewable energy continues
to increase, international fossil fuel prices continue to rise, renewableenergy supply is unstable due to weather or disasters, or energy shortages
caused by government energy transformation failures, etc., the company
may need to pay higher electricity bills in the future (it is estimated thatthe next three to five years may increase by 20% to 30%), or need toincrease operating costs for backup solution due to energy shortages.
Impaired service quality and satisfaction: Malfunctioning base stations
and equipment can result in poor call quality, slower or unstable network
speeds, impacting customer experience and satisfaction, and potentiallydamaging the company's reputation.

FET regularly assesses its energy usage, formulates comprehensive
long-term energy strategies, sets energy management objectives, andimplements multifaceted measures to address and control energy-related
challenges, including:
Carbon Reduction Targets: FET aims to reduce Scope 1+2 and Scope 3
greenhouse gas emissions by 42% compared to 2021 levels by 2030.
Technological Innovation and Digital Transformation: Optimizing energy
management control systems, adopting high-efficiency power conversion
equipment, and replacing outdated equipment to improve energy
efficiency and reduce energy costs and greenhouse gas emissions.
Backup Power Systems and Expansion of Water Storage Capacity:
Regularly assessing backup capacity, establishing emergency support
suppliers, and periodically replacing outdated backup equipment to meet
future energy demands.
Implementation of Energy Storage Systems: Strengthening the applicationof energy storage technology to effectively utilize intermittent energy
sources and provide temporary energy support during energy shortages,
ensuring stable energy supply.
Diversification of Energy Sources: Establishing a diversified energy supply
structure to reduce the risk of dependence on a single energy source.

According to the population statistics issued by the Ministry of the Interior,Taiwan, the birth rate has declined three years in a row. In 2020, there
were 165,249 births and 173,156 deaths; in 2021, there were 153,820
births and 183,732 deaths; and in 2022, there were 138,986 births and
207,230 deaths. The population is declining, serving as a warning sign of acrisis for businesses.
Based on the “Population Estimation Report (2018-2065)” publishedby the National Development Council, the proportion of the working-age
population (15-64 years old) is projected to fall below two-thirds, marking
the end of the demographic dividend. The impact of the emerging risk may
begin as early as 2028.
With the trends of population declining, Taiwan is expected to face ashortage of labor supply and a decrease in the working-age population. To
sustain operations, businesses will need to develop solutions for attracting
and retaining talents, such as education and training (Re-skill and Up-skill)for existing employees, and thereby mitigate the impact on the company's
competitiveness. In 2022, the total amount of FET’s employee training
was $19,666,000, with a training time of 255,313 person-hours. In
response to the potential risks posed by declining birth rates, FET intends toincrease the training budget or the number of personnel training hours toenhance employee skills.

Assist in career planning, and provide consultation and learning resources
for talents.
Improve career development and training, cultivate skills, acquire
professional certifications, and increase career competitiveness.
Cultivate leadership and management, establish a sound talent pool,
expand talent base to reduce the risks caused by talent shortages orgaps.
Promote industry-academic collaboration to reduce the gap between
education and practical application, and accumulate the company's
human capital.
Develop measures and systems to support employees' work-life balance,
create a humanized workplace to improve employee sense of belonging.
Build a career rotation system which employees and the organization can
improve overall employee quality and retention.
Introduce AI system and service to mitigate the impact of labor shortages

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix
Declining
Birthrate Risk

2022

SocialFar Eastone Sustainability Report44

Information Security and Privacy Risk Management

FET Corporate Security Organization

Information Security and Privacy Management Organization

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Highlights
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Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

To demonstrate FET’s commitment to information security and customer privacy, the company has
established a corporate security organization, consisting of the President and representatives from all
business units, totaling over 30 members. Besides, FET has set up a dedicated security department Corporate Information Security Office and the Chief Information Security Officer (CISO). The CISO is
assigned and directly report to the President. Through various committees within the corporate security
organization, FET promote and advocate for information security and personal data privacy affairs withineach business unit. FET also coordinate responsibilities and tasks related to security maintenance acrossbusiness units to ensure the comprehensive implementation and operation of information security
throughout the entire company.
NOTE.

President
Corporate Information
Security Office

The roles and responsibilities of each committee within the Corporate Security Organization are detailed on p.102 of
the 2022 annual report.

Corporate Security Committee

Operation Security Committee

Technology Security Sub-Committee

Information Security Control Mechanisms

In response to the digital transformation driven by emerging network technology generation (including 5G, big data, AI, IoT, cloud/virtual/containerization technology), the integration ofservices, architectures, technologies, and existing networks, and cross-domain/cross-industry innovative applications in collaboration with the third parties in various modes will bring newchallenges to information security and personal data privacy protection. Building upon the existing security management foundation, FET continues to strengthen technical, managerial,and personnel protection mechanisms in network construction, operation, and management. Resource allocation is adjusted as needed to ensure the implementation and enforcement of
information security, personal data protection, business continuity, and other security-related management practices.
To provide secure and optimal experience, FET has developed its own intelligent monitoring platform with built-in multi-dimensional visualization dashboards and customized threat
detection rules. This platform accurately identifies security risks and assists cybersecurity personnel in actively defending against potential threats before hackers can initiate any malicious
actions. FET has also established a dedicated cybersecurity defense team and operates a 24*7 Security Operations Center (SOC) staffed with professionals holding cybersecurity professional
certifications like CEH with more than 10 years of experience in the field. Various security assessments are conducted regularly, including vulnerability scanning, code review, andpenetration testing. Any identified weaknesses must be promptly remedied within specified timeframes and retested for validation.
FET's information security monitoring system encompasses four major control domains: Information and Technology Security, Personnel Security, Physical and Environmental Security, andCustomer Personal Data Protection. The key aspects of each control domain are outlined as follows:

Appendix
Appendix

01 Information and Technology Security

2022

02 Personnel Security

03 Physical and Environmental Security

・Regularly review and assess

・Declare employee security

・Establish a security zoning system

operational cybersecurity risks.
・Foster a company-wide information
security culture and capabilities.
・Documented policies and compliance measures for confirmationand validation.

responsibilities.
・Implement and manage the signingof "Non-Disclosure Agreement" orlegally binding documents.

and personnel identification
system.
・Enhance the protection systems,
services, and procedures forphysical assets and environmental
security.

04 Customer Personal Data Protection
・Establish regulations for thecollection, processing, utilization,and secure maintenance ofcustomer personal data.
・Plan awareness campaigns,
education and training programs,
audit procedures, and improvement
processes.

Far Eastone Sustainability Report45Personal Data Privacy Control Mechanism

FET follows the domestic laws and regulations, including the Personal Data Protection Act, the Enforcement Rules of the Personal Data Protection Act, and the NCC's regulations on
non-public agencies' personal data file security maintenance. Additionally, the company referred to the General Data Protection Regulation (GDPR) of the European Union to ensure theprotection of privacy information. FET adheres to fundamental principles such as Privacy by Design and Data Protection by Design to safeguard privacy information.

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Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

FET's Privacy Protection Policy applies to the entire operational process of FET, including suppliers and partners. All employees of FET are required to comply with the "Management
Regulations for Personal Data and Privacy Information Collection, Processing, and Utilization" set by the company. When collecting personal data and privacy information, it must adhere to
the approved collection purposes and scope, and inform the data subjects about the collection. If any employee is found to violate the relevant policies and regulations, FET will takenecessary disciplinary actions according to the code of conduct and may implement relevant legal measures as appropriate.

Data collection and preservation
FET collects customer personal information primarily through physical stores and telemarketing channels. During the data collection process, customers are informed about the collection of
personal and privacy information. Upon understanding the information provided in the collection notice, customers are required to provide necessary personal data for telecom services andrelated value-added services in the Mobile Broadband Service Application form, and they must consent to the contents of the collection notice. Regarding customer data retention, FET regularly
reviews the necessity of retaining personal data in compliance with legal regulations or contractual requirements. If the retention period has expired or the purpose of retention no longer exists,
FET will proactively determine or perform data destruction and deletion upon request of the data subject. The destruction and deletion process will be conducted in a manner that makes the data
irrecoverable or unidentifiable.
FET has successfully obtained the BS10012 Personal Information Security Certification for the 10th consecutive year. The certification covers various aspects, such as customer number application atretail stores, data collection from customers, billing processes, and data handling operations.

Data processing and utilization

Environmental Sustainability
CH3 Environmental
Sustainability

Regarding the handling and utilization of personal data and privacy information, FET strictly follows regulations within the scope defined by data collection and user consent. In 2022, 79.9% ofcustomers agreed to their data being used for secondary purposes. Unless informed and consented by the data subject or required by law, personal data and privacy information should not beprocessed or utilized by third-party organizations or individuals.

Social Inclusion
CH4 Social
Inclusion

In terms of maintaining information file security, FET has established guidelines based on the life cycle of user personal data and privacy information. The company rigorously implements identity
verification and access authorization, layered privacy protection, data minimization, and limited use of data for operational necessity. Data is also de-identified, and outputs are blurred (e.g., byranges, aggregated statistics), with disclosure restrictions (e.g., minimum number of individuals in grid cells) to enhance information security and reduce privacy risks.

Appendix
AppendixComplaint Channels and Legal Review Procedures
FET has a toll-free customer service hotline (0800-058-885) to handle customers' requests, complaints, and inquiries related to their personal data. Customers with privacy-related concerns can use
the customer complaint mechanism, and FET will promptly address and investigate the issues, with the involvement of the Security Office convening an emergency response team if necessary. Dueto telecommunications laws and other regulations, Taiwanese telecom operators must comply with government requests to access users' basic information and call detail records in accordancewith the law. FET has established a standard operating procedure for "Call Detail Records and Basic Information Retrieval," ensuring secure and encrypted responses to queries and maintaining
complete query records for inspection.
In 2022, FET received a total of 2 complaints related to personal data and privacy from regulatory authorities and customers. All cases were thoroughly investigated and resolved without any
violation of personal data and privacy laws or resulting financial losses. Additionally, the company received 195,404 letters from government agencies, and all of them were handled in accordancewith the prescribed procedures. To address concerns regarding unauthorized data leaks and improper use of personal data, FET actively promotes the importance of customer data protection
within its departments, enforces operational traceability control, and advocates for strengthened data verification procedures as part of its proactive response measures.

2022

Far Eastone Sustainability Report46

Awareness Training, Advocacy, and Cybersecurity Education

To cultivate a culture of cybersecurity and personal data protection awareness, FET regularly establishes a dedicated section on the intranet website for company-wide advocacy, aiming
to internalize the awareness of cybersecurity risks among all employees. Additionally, in order to provide a secure service environment for customers and continuously strengthen andcultivate the cybersecurity expertise of colleagues, FET conducts professional and competency training for cybersecurity personnel and information technology staffs. This is to ensure thatcybersecurity control measures are incorporated at every stage of the system development life cycle, enhancing overall security and resilience.

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Corporate Governance
CH1 Corporate
GovernanceIn 2022, FET organized more than 90 cybersecurity education and training sessions, with the participation of over 16,000 individuals and a total training duration exceeding 41,000 hours.
Through internal cybersecurity training courses, system prompts, information advocacy, and various events, the company continuously fulfills its educational advocacy role. Notably, theannual mandatory courses and tests, " Personal Data Protection Act (PDPA) case analysis " and "Information Security Protection Fundamentals," achieved a 100% passing rate.
Continuous Supervision and Management

To ensure the appropriateness and effectiveness of information security management and personal data protection mechanisms at all stages, FET continuously oversees and audits
its operations through the Internal Audit Division. Additionally, we remain vigilant of international trends and standards, conducting annual external third-party verifications to meetinternational standards, actively reviewing and refining our practices, and incorporating the PDCA cycle into our corporate culture and daily operations. Furthermore, we annually conductsocial engineering simulation drill to enhance staff awareness of cybersecurity, reducing human errors and strengthening proactive defense capabilities.
In 2022, the Internal Audit conducted audits of information security and personal data protection management mechanisms in the second and fourth quarters, and independent third-party
verification agencies completed ISO certifications related to information security and personal data protection in the second quarter (certificates remain valid). FET continues to review andoptimize processes, striving to deliver better services and enhanced security and protection for consumers.
FET's Information Security and Personal Data Management Certifications by 2022

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

ISO 27001

BS 10012

ISO 27017

Information
Security Management
Certification

Personal Information
Management
Certification

Cloud Service
Information Security
Certification

Passed 18 years
in a row

Passed 10 years
in a row

Passed 4 years
in a row

ISO 20000
IT Service
Management
Certification
Passed 14 years
in a row

2022

CSA STAR

ISO 27018

Certification

Cloud Personal
Information Protection
Certification

Passed 9 years
in a row

Passed 4 years
in a row

Cloud Security

Far Eastone Sustainability Report47

Emergency Response Management

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FET's operational risk management mechanism is integrated with the Executive Yuan's Incident Command System (ICS) framework, and it is divided into two levels based on the severityof the events. Different levels of management oversee the response to ensure alignment with national-level emergency response frameworks. In case of emergencies or major incidents,
the reporting unit informs the responsible supervisor and the incident response team leader according to the procedures. The team leader determines whether to activate the emergency
response procedures and coordinates with relevant units to address the situation. The response team also keeps overseeing the impact on internal and external stakeholders, communicating
as necessary to minimize risks and potential impacts on customers and the company.
Furthermore, every year, FET plans business continuity response training and drills to familiarize employees with emergency response procedures. In 2022, we conducted comprehensive
disaster drills for scenarios such as floods, earthquakes, and fires, involving multiple departments. These drills aimed to educate relevant personnel on emergency response knowledge andskills, assess the applicability of emergency response plans, and ensure that all units, facilities, and personnel can effectively and safely handle emergency situations. These efforts effectively
enhance the preparedness and response capabilities of our employees.
In response to emergencies and significant incidents, the Business Continuity Response Management Organization held two emergency response meetings in 2022. They discussed
immediate responses to service disruptions caused by abnormal power equipment, successfully mitigating risks and crises. Through real-time communication and coordination across thecompany, the impact on customers and operations was minimized, and no severe consequences resulted from the emergency events in 2022. Regarding the pandemic, FET continued toprioritize the safety and health of its employees and the uninterrupted operation of critical infrastructure. In addition, the company closely monitored the latest COVID-19 developments andadjusted response strategies, emergency contact networks, and contingency plans in accordance with government announcements to ensure the preparedness and responsiveness of ourbusiness units.

Corporate Governance
CH1 Corporate
GovernanceBusiness Continuity and Response Management Framework

Chief Commander

Smart Sustainability
CH2 Smart
Sustainability
Chief Commander

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Top decision makers

Liaison Officer

Responsible for contacting and negotiating with representatives of relevant
external units.

Safety Officer

Responsible for overseeing safety matters and developing safety guidelines forthe protection of staff.

Public Information
Officer

Deputy Commander

Responsibilities

Organizational Roles

Deputy Commander

Responsible for relaying relevant information to the media.
Confirm the establishment of the crisis event and decide the personnel
involved.
Presided over crisis response meetings and reviewed decisions.

Liaison Officer

Safety Officer

Public Information
Officer

Emergency Operation
Team

Team Leader: Confirm the establishment of a major incident, decide on the
personnel involved, chair the major incident response meeting, supervise theresponse, report and verify the crisis.
Team Member: Implement impact assessments, and response coordination.

Emergency
Operation Team

2022

Planning Team

Finance /Administration
Team

Logistics Team

Planning Team

Collect information, resource assessment, situation analysis, plan formulationand monitor the status of all resources.

Finance/Administration
Team

Controls the entire cost of disaster relief operations and disaster compensation.

Logistics Team

Provide all necessary resources (including equipment, services, supplies... Etc.).

Far Eastone Sustainability Report48

1.3.4 External Participation

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Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

FET continues to pay close attention to the latest sustainability developments and trends
in domestic and international industries. We actively participate in telecommunicationsindustry and ESG-related public associations and organizations to ensure that we
can effectively respond to important initiatives and actions both domestically andinternationally, as well as the latest developments in the industry.
Evaluation for joining a public association requires the approval of the highest executiveof each business group and is reported to the President on a monthly basis. In the face of
global sustainability issues, FET actively engages in climate advocacy and carbon reduction
actions. We support the Paris Climate Agreement and have set a goal of achieving
net zero emissions by 2048. Additionally, FET utilizes digital technology to help solve
urban carbon problems. FET's public policy participation and lobbying, as well as theparticipation of public associations align with the Paris Agreement. This principle applies
to all of our operational locations. Therefore, before joining an association or participatingin public policy and lobbying, in addition to ensuring that such participation can promotecommon development, one of the key points of the assessment is whether it can support
the Paris Climate Agreement. FET also lobbies for the Paris Climate Agreement andclimate-related actions. In the event of any inconsistency instance, FET will continue tocommunicate in order to jointly create a low-carbon environment.
2022 Amount Contributed for External Participation
Types of External Participation

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Taiwan Telecommunication Industry
Development Association (TTIDA)

Industry Development

4,015

GSMA（Groupe Speciale Mobile
Association）

Industry Development

1,845

Taiwan Network Information CenterIndustry Development882

Taiwan Communication Society

Industry Development

108

Taiwan Internet Association

Industry Development

75

Cloud Computing & loT Association in
TaiwanEmerging Technology
Development

100

Yearly amountcontributed

Chinese Institute of Transportation

Emerging Technology
Development

100

7,138

5G Smart Pole Standard Promotion
Alliance

Emerging Technology
Development

100

Center for Corporate Sustainability

Others (Sustainability
Initiative)

280

Taiwan Net Zero Emission Association

Others (Sustainability
Initiative)

150

Unit：NTD $ thousands

2021

2022

Lobbying, interest representation or similar

0

0

0

0

Local, regional or national political campaigns/
organizations/ candidates

0

0

0

0

Telecommunications industry related association
investment

8,543

8,527

9,062

10,47500

0

0

Description

Relevant to the traditional telecom and technology
Telecommunication
business of FET, trade and business related
Industryorganizations are also included in this type
Emerging
Technology
Development

The nature of the association is to explore new
business models, which can be used for the purposeof future business research and development

1,848

OthersNot belong to the above two types (e.g. sustainable
development, corporate governance, transportationand other related organizations)

1,489

2022

Unit：NTD $ thousands

Yearly amountcontributed

2020

Types of
Association

Furthermore, since 2023, FET has started to investigate the positions of the public
associations it has joined regarding the Paris Agreement. The following majororganizations were investigated first: the Taiwan Telecommunication Industry
Development Association, Groupe Speciale Mobile Association (GSMA), Taiwan
Communication Society, Cloud Computing and IoT Association in Taiwan, Chinese
Institute of Transportation, Taiwan Center for Corporate Sustainability (CCS), andTaiwan Net Zero Emissions Association, all publicly support the Paris Agreement. The
Taiwan Network Information Center, Taiwan Internet Association, and Taiwan 5G
Smart Pole Standard Promotion Alliance have not publicly stated their support for theParis Agreement. FET is currently in ongoing discussions and will gradually confirm thepositions of other public associations.

Nature of Association

2019

OthersAll membership fees FET paid in 2022 was NT$10,475,224, accounting for 1% of thetotal revenue. FET did not support any lobby group in 2022. Also, no political donation
was made in 2022. The following chart displays the associations in which FET occupied aposition, or associations that are important.

Name of Association

Note.

Only the significant organizations are listed above

Far Eastone Sustainability Report49

1.4 Most Considerate Services
1.4.1 Zero Distance Services
FET ensures the smooth operation of customer service mechanism through an iterative service management system. Regular service quality supervision and inspection and

About FET
About
FET

service quality meetings are convened to make sure that customers receive quality experience and services and that the brand value is enhanced. FET integrates warm caring
into customer services through a the "360° Store Service" concept and continues to launch thoughtful customer care services. Customized services are provided to meet diverse
customer needs, thereby implementing FET's thoughtful philosophy of "closing the distance" in practice.

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Caring Service

Message from
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Management
Highlights
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Corporate Governance
CH1 Corporate
GovernanceCrafting the best
and most efficient
store service
experience

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Building
comprehensive andcaring after-sales
service

Appendix
AppendixService Content

Store reservation service

Reserve online or through mobile devices to shorten waiting times.

100% promise 100% satisfaction

After 10 minutes of waiting time, customers are given NT$1 discount for every additional minute that they
have to wait to be served in store, and the discount will be used as deductions toward their next bills.

Self-service kiosks

Self-service kiosks are set up at certain stores throughout Taiwan, allowing customers to make credit card /electronic bill payments, recharge prepaid cards, and make bill inquiries.

Free 4G/5G road test

7-day free trial of 4G/5G SIM card / mobile phone.

Home delivery service for platinum members

FET Platinum VIP members can call customer service for repair, and FET will dispatch courier to pick up
products requiring repair / maintenance.

Mobile device insurance

Mobile device insurance can be obtained by paying monthly or annual fees. Repair and maintenance service
starting from monthly fee of NT$99.

Mobile phone trade-inTrade-in value appraisal, and buyback of customers' unused or obsolete cell phones are provided as credits forcustomers purchasing new phones and to be more environmentally-friendly.

The FET store service handbook has service guidelines that cover interactions and service reminders for customers with special needs, including the elderly, young children, physically or
mentally challenged, and those experiencing language or product difficulties, so that all consumers can experience the thoughtful customer care from FET. FET also encourages all stores
to launch community service projects based on their local needs to expand opportunities to communicate with and reach out to the public. For instance, our channel training department
collaborated with neighboring communities in Greater Taipei area to host neighborhood consumer courses, so that elderly citizens can learn about the uses and operations of smart
products without going to a FET store.
In addition, by planning and implementing innovative system and functions, FET's call center is gradually transforming from traditional to a digitized customer service center. By developing
FET Mobile Circle App and Customer Experience Management (CEM) system, we are committed to building a well-rounded digital service center and working toward customer service
4.0. Through continuing to strengthen self-service functions to increase the ratio of digitization, and using big data to analyze consumer's online behavior, customer service personnel canquickly confirm customer status and provide fitting responses to solve signal-related problems.

2022

Far Eastone Sustainability Report50Training for Store Staff

For providing a consistent and professional standard of service, FET has established a 2x3 system training course on 6 pillars, which is based on two aspects - knowledge and skills.
"Basic development" is first phase of training for new employees while "skill cultivation" and "diversity training" also provided as on-the-job training for existing employees.
To strengthen online/offline integration strategies to promote physical channels, the online digital learning system was reinforced and an e-library that comprises of 152 digital

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courses was continuously used in 2022, and cumulatively have 872 courses. Store staff can access the e-library on their smartphones to self-study from anytime, anywhere.
Currently, the courses have been accessed 29,146 times. "Microlearning" is a progressive movement in corporate education and training. In the third quarter of 2022, FET
established an online microlearning platform called "Microlearning Workshop" with a total of 16 course modules on the shelves. This allows store staff to utilize small amounts
of focused time for more diverse professional learning. By the fourth quarter of 2022, a total of 19,873 individuals completed the training.
In 2022, FET committed to strengthening the comprehensive training and growth of new recruits. The Company reorganized its learning schedule, allowing new recruits to feel
FET care and be able to integrate into the workplace more quickly. We held 62 classes for new recruits, including a fast-track practical class and a professional practical course,with a total of 963 training sessions and 1,194 hours of training. In addition, FET also organizes various training courses throughout Taiwan for the development of customer careand community management skills. These courses include business transformation, self-improvement of service capability, and sales enhancement, with the aim of strengthening
the market competitiveness of our store employees.

Corporate Governance
CH1 Corporate
Governance

Customer Service Staff Training

FET "2x3" system training course

Smart Sustainability
CH2 Smart
Sustainability

Product

Continuing the training program to identify personal strengths and weaknesses in 2021,
a series of courses on service, sales, and professional skills was established in 2022.

Sales

Environmental Sustainability
CH3 Environmental
Sustainability
New staffs

Social Inclusion
CH4 Social
Inclusion

Service

Base training

Information
security

Appendix
AppendixLabor
hygieneOperation
Knowledge

Abilitydevelopment2022

The teaching materials in the training section of the Customer Interaction Center (CIC)
platform can be accessed and viewed at any time. These include service, sales, andprofessional skills courses. The materials are integrated into the e-Learning system,
allowing users to choose and watch them at their convenience, ensuring that training
is not disrupted by sudden business demands. Additionally, the digital training tools
are produced in a modular format, allowing individuals to focus on strengthening their
specific areas of weakness. This saves time and effort while enhancing the effectivenessof the training.

SkillsOn-the-job staff

Diversified
training

Far Eastone Sustainability Report51

1.4.2 Most Considerate Communication
FET values communication with its customers and provides comprehensive training and standards for store personnel who directly interact with customers. Besides asking store staff to fulfill
responsibilities in communications before and after-sales, FET also developed online and offline integration services in response to the global digitization trends. Convenient, instant, andcomprehensive communications and service experiences are offered to customers through FET's Mobile Circle App and online customer support.

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

Product and Service Sales SOP
To ensure consumers' rights and interests in using mobile products, all promotions and sales of FET products and services conform to regulations from our competent authorities, namely
the National Communications Commission (NCC) and the Fair Trade Commission (FTC). All products and service sold by FET are legal products supplied by contracted TWSE/TPEx-listedcompanies. Consumers are also entitled to product warranties provided by the original manufacturers. All mobile communication devices sold by FET is in compliance with the NCC's
regulations on warning labels as well as Specific Absorption Rate (SAR) criteria and actual measurements, and information on EMR is also fully disclosed to consumers. In terms of after-saleservices, warranty services are provided for all mobile phones and peripheral products sold by FET. Consumers can also contact the warranty service providers or send the damaged products
to agents or distributors for repair.
Rate Plan Transparency and Service Procedure

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Rate plan transparency and communications can enhance consumer trust by effectively reducing customer complaints from insufficient awareness or misunderstanding of products orservices. The rate plans for new products and services must be submitted to the competent authority for approval or their reference in accordance with the "Standard Operating Procedure
for Reporting of Telecommunications Rate Plans to the Competent Authority". It is then published before coming into effect as required by law and full disclosure is provided in the media,
on the corporate website and at each business site.
To ensure that users fully understand all rights and obligations under the rate plan, FET store staff will explain the content of the rate plans in details when consumers apply for services.
Written information, such as the service application form, is also provided for the customer's reference. Customers with expiring contracts are notified via SMS and phone calls, andpromotional offers are included in their phone bills. When a customer qualifies for a contract renewal, a representative of FET will proactively suggest related promotions. Consumers canalso conveniently renew the contract on FET’s official website or through FET Mobile Circle App.
FET Sales and Contract Signing Procedure

Social Inclusion
CH4 Social
Inclusion
Information andthe relevant rights(7-day trial period,
contract start date,duration, contract expiry
rate, contract.) Confirm
customer intention Recitecontent of added service
content and related rights
Secure customer
agreement, conduct
online check thencomplete contract
signing or renewal

Appendix
Appendix2022

Confirm
customer
intention

Secure customer
agreement,
conduct online
check thencomplete contract
signing or renewal

Recite content
of added
servicecontent andrelated rights

Far Eastone Sustainability Report52Service Feedback and Improvement
Customer Satisfaction

About FET
About
FET

An internal service quality and process management mechanism that understands customer opinions and feedback, and ensures that various needs are met, through regular internaland external service satisfaction survey and comprehensive customer complaint management system. These systems help FET to continuously optimize customer management processes.
Concurrently, FET also includes customer satisfaction as one of the performance indicators for employee evaluation. By emphasizing on high service quality, we strive to provide unique user
experience and the best service perception for customers.

Customer Satisfaction Survey Types and Statements

Contents
Contents

FET Telecom Survey Items

Outsourcing survey: Facilitate comparisons with other telecoms companies
in order to drive continuous improvement.

Message from
Messagefrom Management
Management

Overall Satisfaction Survey

Internal survey: A thorough evaluation of customer satisfaction with FET’s
products and services

Highlights
2022 ESG Highlights

Arcoa Survey Items

Store Satisfaction

Satisfaction Survey on Call Center

Store Satisfaction

FET Telecom

Corporate Governance
CH1 Corporate
Governance

Overall Satisfaction Survey (External)

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

FET commissions external market survey companies to conduct mobile phone user satisfaction survey in April and October in each year. Approximately 1,200 FET subscribers are interviewed
in each survey. These surveys randomly target mobile phone users aged between 15 and 64 who have used the services of one of the five telecommunication companies in Taiwan,
including FET. These consumer surveys help FET understand how we position ourselves against our competitors in each service category. Prior to the surveys, We invite employees in themarketing, physical/digital channel, system support, contact center, and network departments to participate in the design and discussion of the questionnaire. Improvement plans are thendeveloped once the survey results are known so as to continually strengthen customer relations management. FET opted for the even more challenging customer net promoter score (NPS)in the second half of 2022, and the grade improved continuously. Other details on the satisfaction survey are as follow:
Customer Net Promoter Score 1

Appendix
Appendix

Key Satisfaction Score 2

2019

2020

2021

2022

-29

-27

-23

-20

1.

The Net Promoter Score (NPS) of customers is
calculated using an internationally accepted method.
Customers are asked to rate their willingness torecommend the company on a scale of 0-10. The NPS is
obtained by subtracting the percentage of respondents
who rated 0-6 from the percentage of respondents
who rated 9-10. FET adjusted the order of the customer
recommendation questions in the questionnaire in
2020, so the data is only disclosed for 2020 to 2022.

2022

2019

2020

2021

2022

Voice & Data network quality

71%

66%

70%

73%

Store Service

88%

90%

88%

90%

Contact center service

90%

88%

90%

89%

FETnet website

73%

71%

77%

78%

FET Mobile Circle App

76%

75%

79%

76%

2.

2,400 users aged 15-64 years old who have used FET services for more than three months (inclusive) were randomly selected for the interview. Scores
were from 0-5 points. And the score of overall satisfaction were five-point scale, which divided into"Excellent","Very Good","Good", "Fair", and"Poor". The definition of"Satisfied"is the ratio of"Excellent","Very Good", and “Good.

Far Eastone Sustainability Report53Satisfaction Survey on Call Center (Internal)

Satisfaction Survey on Call Center (Internal)

Inspection items include overall satisfaction of store personnel, theirproblem-solving ability, and speed of case handling. To continuously
enhance customer service, FET actively follows-up on customers who
provided negative feedback while also rewards high-performing staff.

The survey items include overall satisfaction of telephone service operators, services attitude, problem
resolution, and whether customers are willing to promote FET. In addition, as basis for subsequent
improvement, customers who provided negative feedback are also followed-up with via telephone to listen
to their causes of complaint.

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

Number of
Texting
Number of
Responded
Texting

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Satisfaction
Rate

2020

2021

2022

10,998,581

8,369,921

8,877,575

6,321,267

Valid call center satisfaction surveys on overall
inbound calls 1
Net promoter score (NPS) for call center satisfaction
survey845,870

Jan - Feb(out of 5possible
points)4.77 points

1,216,449

1,337,702

1,006,946

Overall satisfaction of call center satisfaction survey 2
First Contact Resolution 3

2019

2020

2021

2022

14.6%

15%

16%

16%

Aug- Dec 40%

48

55

56

9.4

9.55

9.58

9.3

9.47

9.53

Jan-Jul 4.75
Aug- Dec 9.12
Jan-Jul 91%
Aug- Dec 9.08

1

9.76

9.82

Mar - Dec
(out of 10 possible
points) 9.66 points

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

2019

9.87

The call center satisfaction KPI has been integrated into three times, in which "The number of call-outs of internal
telephone customer service satisfaction" and "Valid questionnaires of telephone customer service satisfaction survey"
have been combined into "Valid telephone customer service satisfaction surveys as percentage of overall inbound calls(%).
2
Starting from August 2019, the scoring system of call center satisfaction survey has been altered from a 5-point system
to a 10-point system, and the question "Based on your current experience of reaching out to the Call Center, will you
recommend your friends and relatives to use 29 services from FET?" (Net Promoter Scores; NPS) has been added.
3
Starting from August 2019, "overall satisfaction level" and "First Contact Resolution"have been adjusted to be an average
point system.

Arcoa

Social Inclusion
CH4 Social
Inclusion

Store Maintenance & Repair Satisfaction Survey

Appendix
Appendix

To provide quality and efficient after-sale maintenance and repair service and to achieve our goal of generating higher customer satisfaction than industry competitors, Arcoa conducts"telephone customer satisfaction survey for completed repair" within one week after completing the maintenance/repair for customers. To enhance overall satisfaction, weekly review isconducted and management is reinforced on items and areas where we lag behind. Customer satisfaction performance is tracked using the touchpoint Net Promoter Score (tNPS), with anachieved tNPS of 93% in 2022.

2022

2019

2020

2021

2022

24-Hours Engineer Reparability Rate

80%

92%

94.0%

94%

Over-5-days Reparability Rate

8.5%

2.8%

1.1%

2.4%

Touchpoint Net Promoter Score (tNPS)

-

69%

89%

92%

Far Eastone Sustainability Report54

Customer Complaint Mechanism

About FET
About
FET

To strengthen customer center management, and to instantly and appropriately handle customer complaints through systematic means, FET has introduced the ISO 18295 Customer
Contact Centers certification. FET provides six individually-managed grievance channels for customers, including official correspondence, arbitration meeting, customer service in bound, the
FETnet website, FET Mobile Circle App and online chat, to ensure that customers can freely provide feedback and opinions, and to ensure that all complaints will be solved properly. Material
customer complaints are forwarded to the customer relations management team by the customer service unit manager within 2 hours. At the same time, by establishing a dedicated crossdepartment customer complaint improvement team is formed to regularly review and track the timeliness, FET is dedicated to reducing the number of complaints, increasing customers'
satisfaction for complaint resolutions, and fulfilling our mission of Zero Distance Services. Below is an overview on FET's statistics on the number of grievance cases:

Grievance Channels Complaint Management Responsible Unit

Contents
Contents

Number
2019

Message from
Messagefrom Management
Management

Government
documents

Highlights
2022 ESG Highlights

FET has a complete internalcustomer complaints management
system for handling official
complaints from local governments
and consumer protection groups.

2020

2021

2022

1,696
1,443

1,285

1,246

Customer Relations
Management Team

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Arbitration
Meeting

Environmental Sustainability
CH3 Environmental
Sustainability

FET has a complete internalcustomer complaints management
system for handling official
complaints from local governments
and consumer protection groups.

83

Social Inclusion
CH4 Social
Inclusion

2019

Customer
Service Hotline

Appendix
Appendix

FETnetwebsite2022

Complaints are delivered in the formof messages. These are handled bydedicated staff at the call center.

Complaints are delivered in the formof messages. These are handled bydedicated staff at the call center.

Customer Complaints
Handling Team

Customer Service
Department

81

76

2020

74

2021

2022

16,001
15,082
12,856

2,624

1,892

11,935

1,877

2,553

Far Eastone Sustainability Report55

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Environmental Sustainability
CHAPTER 2

2.1 Sustainability Impact Assessment
2.2 Smart Applicationst
2.3 Smart Living

2022

Far Eastone Sustainability Report56

2.1 Sustainability Impact Assessment

About FET
About
FET

During its digital transformation process, FET utilizes innovative technology to address challenges in urban governance and industries, while also mitigating social issues. FET has identified"Social Innovation Strategy and Application" as one of the material topics. As we continue our digital transformation and upgrade, we leverage our core ICT capabilities in Big Data, AI, andIoT to develop essential technologies such as smart cities, smart manufacturing, digital transformation, low-carbon operations, consumer applications, and smart healthcare. FET actively
collaborates with seven major stakeholders, including customers and suppliers, to deliver benefits for the company, society, and the environment.

Contents
Contents

FET leverages its corporate influence to implement 5G, cloud technologies, big data analysis, and IoT in various areas such as telemedicine services, smart street lamps, smart cities, smart
parking, air quality monitoring, and big data traffic analysis. This enables FET to support government agencies in tackling transportation and air quality challenges.FET has made long-term
investments in 5G telemedicine services and smart street lamp installations, both of which have been acknowledged for their sustainable impact. These initiatives are also included in FET'ssustainable development key performance indicators (KPIs).

Message from
Messagefrom Management
Management

Over the past few years, FET has consistently conducted qualitative and quantitative assessments to evaluate the sustainable impact of its key products and services. These assessments haveincluded 5G telemedicine and smart street lamps, which account for 8% and 13% of the revenue generated from sustainable products and services, respectively.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Telemedicine
In 2020, FET successfully launched its own telemedicine platform,
which is the first 5G telemedicine service in Taiwan. This platform
showcases FET's successful integration of big data, AI, andIoT technologies, while also introducing a new profit modelfor the company.FET's telemedicine service tackles the issueof limited healthcare availability in rural regions, particularly
in Taitung where there is a scarcity of doctors in fields such as
ophthalmology, dermatology, and otolaryngology. Leveraging
5G technology for seamless and prompt transmission, FET offers
real-time consultations across multiple disciplines. Additionally,
we supported healthcare institutions in swiftly implementing
video consultation services during the pandemic, enabling themto adapt to the new healthcare landscape. Through mobile
healthcare, medical services transcend geographical limitations.
In 2022, our telemedicine service expanded to encompass 15
counties and cities in Taiwan, including 41 rural health centersand 21 hospitals. Additionally, we successfully established 27
specialist clinics.

2022

Far Eastone Sustainability Report

57

FET recognizes telemedicine has significant positive economic, environmental, and social impacts.
Social: Telemedicine reduces commute time for doctors and increases the efficiency of usage of medical resources.
Economic: Rural residents can visit local health centers and receive medical center-level care, reducing travel time, preventing productivity loss from seeking
medical treatment, and saving on transportation costs and healthcare expenses.
Environmental: Telemedicine reduces the need for transportation and the use of fossil fuels, thereby reducing GHG emissions and air pollutants.

About FET
About
FET

Impact Roadmap

Project

Contents
Contents
Message from
Messagefrom Management
Management

Telemedicine

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Results

Medical staff in rural areas
Physicians from rural areas receive
immediate support through teleconsultation
Medical staff from medical centers
Physicians from hospitals complete
treatment through remote diagnosis
Patients
Receive remote diagnosis from a specialist
at a public health center

Smart Sustainability
CH2 Smart
Sustainability

Benefits

Continue to receive expert guidance from the medical centers

Improve medical technology and standards

Increase the number of physicians who can communicate and discuss together

Relieve the psychological pressure of doctors in rural areas

Reduce the time it takes to travel to rural areas for medical treatment

Improve the efficiency of medical resources

Increase access to specialist
diagnosis and treatment aswell as medical resources

Early detection andtreatment, reducing theneed for follow-up visits

Reduce mortality rate and prolong life and health

Reduce unnecessary
long-distance transportation

Save time in medical treatment

Reduce productivity loss

Save on transportation costs

Reduce the cost of medical treatment

Reduction in carbon emissions

Mitigating climate change

Reduction in traffic emissions

Improve air quality

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Grasp the opportunities for diagnosis andtreatment to reduce medical costs

Impact Value Assessment

Appendix
Appendix

Benefits

Output Indicators

Value

Assessment Methods

Impact Indicators

Value

DoctorReduced travel time to rural
areas for consultations

NT$4,182 / hourly wage saved
per doctor

Improved the efficiency ofusage of medical resources

NT$4,140,331

Patient

Saved time on hospital visits

NT$1,178

Reduced productivity loss
and healthcare costs

NT$7,547,791

Reduced carbon emissions

NT$23.26 / person

Mitigated climate change

NT$149,085

Reduced social cost of fossil
fuel use

NT$24.11 / person

Based on the pilot study findings of telemedicine
in Taitung County as presented in the 2020
Sustainability Report, we have developed financial
proxy indicators for various stakeholders. These
indicators enable us to effectively assess theenvironmental and social costs, as well as the value
generated by our product/service.
In 2022, 990 doctors provided remote consultations
for rural areas, with a total of 6,407 patient
consultations.

Reduced air pollution

NT$154,461

Environment

2022

Far Eastone Sustainability Report58Smart Street Lamps

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

FET believes that the implementation of smart city solutions and core technologies can drive global low-carbon and green development. Since 2017, FET has invested in thedevelopment and testing of smart street lamps. The installation of these lamps not only enhances traffic safety, but also decreases energy consumption and carbon emissions
from street lighting. Additionally, they function as 5G base stations and provide value-added services. In 2019, FET facilitated the complete implementation of smart street lamps
in Taoyuan City, making it the first city in Taiwan to achieve this through the integration of 5G, IoT, big data, and AI. In 2021, FET became a member of the "5G Smart Pole
Standard Promotion Alliance" with the aim of promoting the establishment of smart pole standards and conducting service verifications in different cities. This initiative is expected
to contribute to the global progress of 5G smart poles. In 2022, a total of 80,541 smart street lamps were installed in Taoyuan City. These lamps not only save electricity andreduce carbon emissions, but also enhance public lighting, thereby reducing nighttime traffic accidents and improving public security. Additionally, we successfully collaborated
with 46 Taiwanese companies to develop smart pole applications and complete the verification of 5G smart poles near the Taipei City Government.
FET recognizes smart street lamps have significant positive economic and environmental impacts.
Economic: The money saved on electricity can be used for other municipal infrastructure projects, creating additional economic benefits.

Highlights
2022 ESG Highlights

Environmental: Smart street lamps can effectively reduce electricity demand, thereby reducing carbon emissions and air pollutants, which can mitigate climatechange and air pollution.

Corporate Governance
CH1 Corporate
GovernanceImpact Roadmap

Project

Smart Sustainability
CH2 Smart
Sustainability

Smart street
Lamps

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Environment

Results

Replace traditional
Street lamps withsmart street lamps

Replace traditional Street lamps
with smart street lamps

Smart adjustable lamps function

Economics
正面效益Benefits

Reduce carbon emissions

Mitigate climate change

Reduce energy consumption

Reduce emissions of air pollutants, improving air quality

Save electricity costs

Reduce cost/expense from owner, which could be used
toward other infrastructure, creating economic benefits

Impact Value Assessment
Benefits

Environment

Economy2022

Output Indicators

Value

Reduced carbon
emissions

NT$718 / lamp

Reduced energy
consumption

NT$14 / lamp

Saved on electricity
costs

NT$966 / lamp

Assessment Methods

Impact Indicators

Value

Based on the pilot study findings from Taoyuan City's
smart street lamp project, as presented in the 2019
Sustainability Report, we have developed financial proxy
indicators. These indicators allow us to effectively assess
the environmental and social costs and benefits associatedwith the product/service.
In 2022, we installed 80,541 smart street lamps.

Climate change mitigation
benefits

NT$63,399,415

Air pollution reduction benefits

NT$1,264,873

Potential additional economic
benefits

NT$85,249,097

Far Eastone Sustainability Report592.2 Smart Applications

About FET
About
FET
Contents
Contents

FET, guided by the spirit of using innovative technology to solve urban governance and industry pain points, combines core technologies such as "Big, AI, and IoT" (Big Data, Artificial
Intelligence, and Internet of Things), cloud computing, and cybersecurity. By leveraging 5G and innovative applications, it drives the transformation of smart cities and industries. FET rapidly
extends its experience in building smart cities to all counties and cities in Taiwan, aiming to drive industrial transformation and sustainable development. FET is also a strategic committee
member of Go Smart, through which it engages in exchanges with smart city applications worldwide. Additionally, it actively participates in the Smart City Expo held annually in March.
Projects/Products/Services
5G Telemedicine
Service

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

5G emergency
medical assistanceAppendix
Appendix2022

Abstract Description

Key Benefits

Telemedicine Consultation: During the pandemic, the remote diagnosis and treatment
platform assisted the outpatients of the medical institutions to see the doctor through video,
zero contact, reducing the risk of epidemic infection and the cost of medical treatment forthe public to seek medical treatment in the hospital, and protecting the right of the public
to seek medical treatment. The platform integrates the service processes of healthcare
institutions, supports virtual health insurance card functionality, and integrates payment
collection. Users only need to use a mobile app to complete online registration, payment,
and video consultation services. In addition to health insurance consultations, the platform
also offers diverse self-pay health advisory services, enabling healthcare institutions to provide
personalized and efficient digital healthcare services with a human touch.
Specialist Consultation: In 2022, the expansion of Remote diagnosis services will continue tobe deeply cultivated in Miaoli County and New Taipei City, extending the reach of telemedicine
applications from south to north. Various artificial intelligence-driven innovative healthcare
applications will be introduced in specialties such as ophthalmology, otolaryngology,
dermatology, cardiology, gastroenterology, neurology, thoracic medicine, and metabolic
disorders (diabetes management). The future goal is to extend the coverage to all 15 counties
and cities in Taiwan, encompassing 41 health centers and 21 hospitals.

Obtained US HIPAA International Certification in 2022
Received the '2022 National Innovation Award'
Received the '2022 Digital Transformation Excellence Award'
In 2022, a total of 27,529 consultations were conducted
through 5G telemedicine. This included 21,122 video
consultations and 6,407 remote consultations specifically forrural areas. These consultations covered 12 counties and cities
and involved 35 rural health centers. The estimated social
sustainability benefits of these consultations are as follows: a
reduction in medical costs waste by NT$4.14 million, areduction in patient productivity loss and healthcare costs by
NT$7.55 million, and a reduction of 81.56 metric tons ofcarbon emissions. For more information, please refer to
Section 2.1 Sustainability Impact Assessment.

The 5G emergency medical assistance solution aims to improve the quality of pre-hospitalemergency medical services: Through collaboration with the Taipei City Fire Department,the "5G Cross-Sea Emergency Medical Joint Defense" mechanism has been established to
optimize the golden rescue time. Using smart devices and onboard cameras as a first-person
perspective, emergency medical technicians equipped with bone conduction noise-cancelingearphones can leverage FET's self-developed " 5G Remote diagnosis platform" to instantly
transmit high-definition images and information from the ambulance. This enables real-time
remote collaboration with advanced paramedic teams, using 5G live video transmission to
identify critical patients and provide immediate rescue. This solution enhances the chances ofpatient survival, helps frontline paramedics strengthen emergency procedures, and improves
the success rate of emergency care.
Enhance the safety and medical quality of critically ill patients after arriving at the hospital:
We collaborated with the Emergency Department of Cheng Kung University Hospital tolaunch the "Special Trauma Patient Island-Hopping Strategy" for pre-hospital transportation.
The "Pre-hospital Ambulance 5G Intelligent Mobile Emergency Department MultidisciplinaryConsultation Platform" has been established to integrate emergency medical information in
real-time on the ambulance itself. Patients are transported to the nearest local hospital without
being transferred onto a stretcher for immediate emergency treatment. Afterward, they aretransferred to a medical center to receive optimal treatment, thereby reducing the time it takes
for critically ill patients to reach specialized emergency care hospitals.

In late October 2022, the first "5G Emergency Medical Joint
Defense Ambulance" was officially launched nationwide. This
innovative ambulance is equipped with advanced paramedic
teams (EMTP) providing remote guidance to frontline
paramedics (EMT). The collaboration aims to identify criticalcases and strengthen pre-hospital emergency care, thereby
enhancing the quality of emergency medical services before
patients arrive at the hospital.
By the end of December 2022, the 5G ambulance has
successfully facilitated 200 cases of remote guidance for
critical patient interventions. Moving forward, there are plans
to expand its utilization to regions where there is a shortageof emergency medical resources nationwide.

Far Eastone Sustainability Report60

Projects/Products/Services
Energy Management
System (EMS)

About FET
About
FET
能源管理系統 (EMS)

Contents
Contents

Abstract Description

Key Benefits

FET has developed smart Energy Management System (EMS). In addition to introducing it to all
FET stores in Taiwan, it also assists government and enterprise partners to achieve the goal ofsmart energy management and jointly create a low-carbon sustainable home.
The system is also applied to the "Air Conditioner in Every Classroom " project, becoming thelargest energy management system provider in the country. It actively expands its deployment
in various cities and counties. In addition to assisting Taipower in integrating Open ADR 2.0b,
it also introduced AI applications to reduce electricity consumption.

The " Air Conditioner in Every Classroom " project wascompleted in 2022, and it assisted in managing air
conditioning systems in 42,000 classrooms across nine cities
and counties throughout Taiwan.
It is estimated that the project will expand to approximately
2,500 additional classrooms in 2023, totaling around 44,500
classrooms that will receive energy management services. Thisis expected to result in a 4% reduction in air conditioning
energy consumption.

Smart meters can automatically transmit electricity usage data, eliminating the need for manual
meter reading processes. They can also help control peak electricity demand, contributing togrid balancing. In the event of a power outage, smart meters can instantly send notification
messages, improving the efficiency of fault detection and repair processes. In addition toassisting in the installation, FET also performs routine monitoring and management to ensurethat the connection quality and data transmission meet the expected targets.

In 2022, a total of six new deployment areas were added,
encompassing 450,000 households with smart meters.
It is projected that a total of 12 deployment areas will becompleted in 2023, encompassing approximately 697,000
households with smart meters.

FET and LITEON collaborated with Taoyuan City Government to promote the smart streetlamps
project. FET was responsible for the construction and subsequent maintenance and operationof streetlights in the North District of Taoyuan City, and assisted the municipal government
with streetlight deployment of the entire city using real-time remote monitoring andautomated error reporting system.
ET's smart streetlamps management solution combines LED lighting technology with its
proprietary design brand of streetlight controllers and 4G/NB-IoT communication technology.
It enables real-time collection of various data from streetlights and establishes a Virtual Private
Network (VPN) to enhance the security of IoT applications.
Combining AI platform and big data analysis of crowd flow, in Taipei City, carried out AI
smart streetlights verification, able to actively monitor energy consumption and adjust lighting
brightness.
Based on the experiences in smart streetlamps, FET joined “5G Smart Pole Standard Promotion
Alliance” in 2021, jointly promoting smart pole standard establishment and application service
verification in cities and sites and pursuing the blue ocean business opportunities of global 5G
smart poles.

The Taoyuan streetlamps project completed the installationof 80,541 lamps in 2022, resulting in a total annual energy
savings of 53,918,852.295 kilowatt-hours and a total carbon
reduction of 27,175,102 kilograms.
The "Taoyuan City Comprehensive Energy-saving streetlamps
Replacement and Maintenance Project" in 2022 was honoredwith two awards: the "Government Team Award - Excellence"and the "Innovation Award".
In 2022, we formed alliances with 46 Taiwanese manufacturers
and collaborated with the Taipei City Government at the backgate (Songzhi Road section) to successfully complete the field
verification of the 5G Smart Pole system.
The estimated economic value of the environmental, social,and economic sustainability benefits is NT$136.83 million. For
more information, please see Section 2.1 Sustainability Impact
Assessment.

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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Smart Electricity Meter

Smart Sustainability
CH2 Smart
Sustainability

智慧電表

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Smart streetlamps
and 5G Smart Poles

智慧路燈與 5G 智慧共杆

2022

Far Eastone Sustainability Report61

Projects/Products/Services
Smart Intersection

About FET
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FET
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Contents
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Management
Highlights
2022 ESG Highlights

Smart Charging Service

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Telecommunication
Big Data Innovation

Appendix
Appendix2022

Abstract Description

Key Benefits

FET has been dedicated to implementing smart intersection solutions.
Intersection traffic safety has always been a pressing issue forgovernment agencies. Traditional intersection has relied on warning
signs and traffic signals to address conflicts. With the advancement of
ICT technology, intersections are now moving towards smart solutions.
FET has implemented a solution in non-signalized intersections in
Taoyuan City that detects approaching vehicles and provides alerts. Thissolution effectively reduces vehicle speeds at intersections and enhancesintersection safety.
Kaohsiung Light Rail has implemented a solution for vehicle-to-vehicle
network collision warning at the site, through real-time detection ofentering vehicles at intersections, notifying the light rail driver throughthe vehicle-to-vehicle network, achieving real-time warning effects.

Starting from 2022, a total of 32 collision warning intersections have been gradually
established in Taoyuan. It is expected to reduce the driving speed of vehicles at nonsignalized intersections by 20% and decrease the accident rate by 80%.
In June 2022, intelligent intersection detection systems were implemented at theintersections of Kaixuan/Siwei Road and Kaixuan/Sanduo Road. These systems alert
the light rail drivers of vehicles entering the intersection. It is expected to reduce theoccurrence of light rail accidents at intersections by 80%.

FET has developed its own charging management platform, integrating
various charging stations and connecting multiple payment systems.
Since 2021, we have been deploying our self-operated charging services
in retail and wholesale venues of affiliated businesses. As of May 2023,
we have recorded over 6,000 charging sessions.
In 2022, FET provided comprehensive one-stop charging services forcommunities, catering to both newly constructed developments andexisting buildings' parking lots.
In 2023, FET will actively participate in relevant bidding projects forcharging stations initiated by the central and local governments, inalignment with the national development policies such as the Forwardlooking Infrastructure Development Program for the years 2023-2024.

In 2022, smart parking and charging stations were implemented at the KaohsiungPort Terminal and Transportation Center.
In the retail and wholesale sector, a total of approximately 76,000 kilowatt-hoursof electricity were consumed for charging in 2022, resulting in a reduction of
approximately 58 tons of carbon emissions.
[FET Self-operated Sites] Starting from 2021, the following sites have been gradually
established:

FET continues to utilize Signal Data to develop various datasets related
to FET users' Physical Footprint. After undergoing de-identification
processes, the data is used for analysis in areas such as geospatial
traffic and retail. Currently, various county and city governmenttransportation bureaus, tourism offices, the Ministry of Transportation
and Communications Information Office, the Ministry of Culture,
academic institutions, transportation engineering consultants, and otheragencies have achieved significant results in telecommunications big
data projects. They have developed innovative services such as origindestination distribution, network speed, travel routes, and hotspot
analysis.
Provide telecommunications data to observe crowd dynamics andmobility analysis, as academic units such as Academia Sinica, theNational Science and Technology Center for Disaster Reduction, andpublic health agencies conduct research on the impact and preventionof epidemics.

Since 2020, we have been continuously providing crowd analysis of administrative
agency attractions in Hsinchu, Taichung, Changhua, Tainan, Kaohsiung, and otherlocations through telecommunications data. During the epidemic period, data has
been utilized to assist in crowd control measures, and after the epidemic, it has beenused to evaluate the recovery of attraction visitation, providing decision-making
support.
Crowd analysis: In 2022, through data analysis, we conducted crowd analysis
of cultural and artistic venues, providing operational units of these venues withevaluations of venue performance and operational administrative recommendations.
Transportation data innovation services: In 2021-2022, four innovative data services
were launched on the Ministry of Transportation and Communications Data
Exchange Platform. These services integrate data from both public and private
sectors, aiming to enhance the platform's visibility and recognition.
Epidemic research: In 2022, we provided data analysis for the National HealthResearch Institutes to conduct epidemic research.
Transportation planning: In 2022, we provided telecommunications data and precise
questionnaires to assist consulting firms in conducting transportation planning for
the Yilan-Hualien-Taitung region.

A-Mart Nanya Store, ShuiNan Store
Sogo Zhongxiao Store, Fuhsing Store, Tianmu Store
Shin Kong Mitsukoshi Xinyi A13, Taichung Tiger City Mall, Banqiao New Station

Far Eastone Sustainability Report62

Projects/Products/Services
5G Network PILICollaboration Performanceand Co-creation Project

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Abstract Description

Key Benefits

FET's 5G Network, combined with aerial projection and real-time
special effects technology, made its debut on December 17, 2022,
by connecting PILI stars from the Taipei ATT eLife first-floor theme
exhibition area and the PILI Yunlin studio, creating a cross-location
collaboration with seamless interaction and zero time difference.
Additionally, players from Taipei and Kaohsiung's PILI flagship storesat Dream Mall can also engage in simultaneous VR game interactions,offering a pioneering experience of metaverse technology.
By reinterpreting traditional puppetry through the use of 5G networks,
it aims to create remote performances and VR interactions, providing
a brand-new entertainment experience for puppetry enthusiasts andpromoting traditional Taiwanese culture together.

On December 17, 2022, traditional Taiwanese art was first combined with 5G
technology to conduct cross-location performances and VR game interactions. It
marked a significant milestone in integrating Taiwan's traditional arts with advanced
digital technologies.
During the project period from 2021 to the end of 2022, a total of three crosslocation co-creation and collaboration events were held in Taipei, Yunlin, andKaohsiung. The project involved the integration of two sets of VR experience devices
and simultaneous participation of 40 audience smartphones, ensuring a seamlessand enjoyable viewing and gaming experience for all participants.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

2.3 Smart Living
With the advancement and integration of big data, artificial intelligence, and the Internet of Things (IoT) technologies, FET continues to launch innovative products and services, offering the
public a more diverse smart lifestyle. These offerings aim to meet various needs, enhance quality of life, and ensure mobile network security, enabling individuals to enjoy high-speed, lowlatency, and wide-ranging connections in their smart living services.
Projects/Products/Services
FET Mobile Circle App

Appendix
Appendix2022

Abstract Description
FET leads Taiwan's telecommunications industry by launching the exclusive "FET Mobile Circle" plan for its users. This plan expands the scope of benefits and rewards to cover convenience
stores, transportation, dining, and more, providing exclusive privileges to users. FET has
built the FET "Mobile Circle "app with two core principles: "Enhancing User Benefits" and"Carefully Selected User Offers." This app aims to provide customers with a one-stop mobile
lifestyle hub that caters to their needs in life, entertainment, and telecommunications. In
2022, FET further evolved by introducing a new type of lifestyle media. This platform provides
users with firsthand technology information and a wealth of diverse knowledge about life.
Additionally, FET launched an online public welfare platform, allowing users to extend theirlove and support through charitable activities.

Key Benefits
The download count of the FET Mobile Circle App has
surpassed 4 million.
The Mobile Circle App's public welfare platform has
raised approximately NT$1.45 million for social welfareorganizations, reaching a total of 128,557 individuals.

Far Eastone Sustainability Report63Projects/Products/Services
FET SecureNet Service

About FET
About
FET
Contents
Contents

Abstract Description

Key Benefits

Launched at the end of 2022, the FET SecureNet Service includes two services: ThreatProtection and Parental Control. Threat protection service is a remote mobile network, free todownload the app to enjoy protection. Anti-hacking protection service is designed for users
who are concerned about mobile internet security. It actively blocks dangerous websites suchas viruses, phishing attempts, and malicious programs, providing simple and secure protection.
The Parental Control service is specifically designed for parents with children and teenagers
at home. It offers dual features of internet time management and blocking of inappropriate
websites for children and adolescents, allowing parents to easily safeguard their children's
online safety.

Nearly 60,000 subscribers

In 2022, we continued to collaborate with the world's top three children's watch brands
to launch new products. Additionally, we introduced a phonetic input method with Zhuyinsymbols specifically tailored for the Taiwanese market, meeting the needs of Taiwanesechildren and establishing a unique market position.
We continue to release a range of licensed cartoon-themed accessories for children's watches
that are beloved by kids.

Annual sales volume increased by nearly 60% over theprevious year.

friDay Video: In 2022, we adopted a "partnership alliance" strategy to invest in originalhigh-quality Taiwanese dramas. We collaborated with Public Television Service (PTS) to
create "On Marriage," catering to the viewing demands of a wide audience. Additionally,
we have established "Mission Entertainment" with our partner, leveraging the expertise ofvarious parties to support the local film and television industry and produce high-quality anddiverse content. Simultaneously, we collaborated with system suppliers like LiTV to develop
a new version of television channels that can be independently programmed. We integrate
advertising mechanisms into the TV channels and free on-demand video content, transforming
into a hybrid over-the-top (OTT) platform that combines subscription video-on-demand (SVOD)
and advertising-based video-on-demand (AVOD) features.
Wealth management: We integrate and provide multiple services, including banking
accounts, online investments, financial products, data analytics, and lifestyle convenience
services, aiming to offer consumers a convenient user experience.
friDay Shopping: Through the synergy of FET and FET Group, we will provide hundreds ofthousands of products in the categories of home, 3C and fashion, catering to the diverse
needs of consumers. In 2022, we combined AI applications with exclusive development
technologies to launch the "ReTurn" online shopping service. With this innovative businessmodel, consumers can easily discover personalized discounted products recommended by AI
with just a few taps, revolutionizing traditional online shopping habits.

friDay shopping revenues grew by 11%

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Highlights
2022 ESG Highlights

360 children's smart
positioning watch

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
friDay brandSocial Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report64About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Environmental Sustainability
CHAPTER 3

3.1 Climate Strategy
3.2 Overview of FET's Environmental Footprint
3.3 Environmental and Energy Management
3.4 Sustainable Supply Chain
3.5 Base Station and Electromagnetic Fields Management

2022

Far Eastone Sustainability Report653.1 Climate Strategy

About FET
About
FET
Contents
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

In response to the potential effects of climate change on our operations, FET adheres to the Recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). We
implement a comprehensive approach to managing climate risks, focusing on corporate governance, strategy, risk management, indicators and targets. We continuously identify risks andopportunities related to climate impacts throughout our value chain. We evaluate the financial impact and scale of each risk factor under various scenarios, reviewing and implementing
response measures accordingly. Additionally, we establish measurement indicators and objective management to ensure the progress and effectiveness of our action plan.
Governance
The Risk Management Committee, situated at the board level, serves as the foremost governing
body for risk management within FET. Annually, the Committee engages in regular discussions
with the Board of Directors regarding the management of various critical corporate risks, including
those associated with climate change. Operating beneath the Risk Management Committee is the"Environment and Energy Management Committee," which assumes responsibility for promoting
and implementing climate change-related policies. The specific structure and functions of the
Risk Management Committee are outlined in Section 1.2.3 on Operational Risk Management,
while the organizational framework and operational performance of the Environment and Energy
Management Committee are detailed in Section 3.3, Environmental and Energy Management.

Board of Directors

Strategy

Environment and Energy

FET consistently engages in discussions regarding climate issues, aligns with the objectives of
the Paris Climate Agreement, and references global climate and industry trends to carry out
internal and external surveys. These surveys aim to identify potential risks and opportunities to ourbusiness operations arising from short-, medium-, and long-term climate change, both in terms oftransition and physical risks. We also propose countermeasures for the identified risks, and in the
future, FET will further enhance its integration with financial information.

Risk Management Committee

・Risk Supervision

・Risk Assessment

・Risk and Opportunity Management
・RE100 Participation, SBTi Climate Strategy Execution

Relevant Departments

・Greenhouse Gas Inventory

・Environmental Management (electricity, water,
waste management, etc.)
・Execute concretely to achieve goals

・Promotion of environment-related action plans

Process of Risk Identification

Appendix
Appendix

2022

Step1

Step2

Step3

Step4

Create the Climate Change Risk List

Identify and Prioritize

Confirm Key Climate Change Risks

Develop Countermeasures

Based on the TCFD's recommended risk list,
relevant international research reports, andanalysis of industry characteristics and benchmarks, we have created a Climate Change Risk
list. This list includes transition risks such aspolicy and regulation, technology, law, market,
and business reputation. Additionally, it
encompasses physical risks, including extreme
and long-term climate risks.

Conduct a three-dimensional
analysis for each risk,
considering potential impact,
potential vulnerability, andlikelihood of occurrence. Use
this analysis to create the
Climate Change Risk Matrix.

Review the prioritization results, verify
the key climate change risk factors, andanalyze the impact pathway of eachfactor under different scenarios.

In response to climate risks,
relevant departments conduct
further assessments toevaluate potential financial
impacts and develop strategies
to cope with them.

Far Eastone Sustainability Report66

Climate Change Risk Matrix

Risk Type and Risk Level
This figure represents the product of the "likelihood of occurrence" and"impact" variables in the risk matrix, resulting in the risk level value. The
enhanced outcomes demonstrate that FET has successfully mitigated existing
regulatory, technology, market, and long-term physical risks. Furthermore,
FET will continue to enhance its approach to emerging regulatory risks andextreme physical risks in the future.

Risk assessment results:

7 19 24

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Management

After implementing responsive measures

2

8

9

13 22 231

4

5

6 18 20

Impact

1

2

6 21

21

3 10 11

3

7

9 10

12 14 15

11 12 13 14

16 17

15 16 19 24

4

5 18

8 20

Existing Regulatory Risk

Market Risk

Emerging Regulatory Risk

Reputation Risk

Technology Risk

Extreme Physical Risk

Legal Risk

Long-term Physical Risk

22 23
Risk level
before Imrovement

24

1

2

3

Likelihood

Remaining Risk
after Imrovement

16

10

Social Inclusion
CH4 Social
Inclusion

917

Environmental Sustainability
CH3 Environmental
Sustainability

8

18

7

19

Smart Sustainability
CH2 Smart
Sustainability

6

Likelihood21

Corporate Governance
CH1 Corporate
Governance

The event number changing from red
to green indicates a change in risk level.

5

17

4

22

Highlights
2022 ESG Highlights

23

20

About FET
About
FET

ImpactCurrent situation

15

Risk TypeBreakdown

Risk
Level

Impact Time
Frame note

14

Risk Type13

Risk Event

12

No.

11

Appendix
Appendix

Value Chain Affected

1

Increased pricing on GHG emissions results in higher operating costs

Transition

Policy and Regulatory(Emerging Regulatory)

6

Short, Medium, Long Upstream, the Company, Downstream

2

Enhanced emissions reporting obligations result in increased costs from fines andsentences and / or lower demand for products and services

Transition

Policy and Regulatory(Emerging Regulatory)

6

Short, Medium, Long Upstream, the Company, Downstream

3

Increased operating costs due to requirements and inspection of existing products
and services

Transition

Policy and Regulatory(Emerging Regulatory)

2

Short, Medium, Long Upstream, the Company, Downstream

4

Failure of government to reduce emissions (insufficient green electricity)

Transition

Policy and Regulatory(Emerging Regulatory)

9

Short, Medium, Long

2022

Upstream, the Company

Far Eastone Sustainability Report

67

No.

About FET
About
FET
Contents
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Risk Event

Risk Type

Risk TypeBreakdown

Risk
Level

Impact Time
Frame note

Value Chain Affected

5Higher cost of power generation / higher electricity prices

Transition

Policy and Regulatory(Emerging Regulatory)

9

Short, Medium

Upstream, the Company, Downstream

6

Progress of corporate green energy development lags behindTransition

Technology

6

Short, Medium, Long

the Company

7

Failure of the Company's energy conservation measures leads to multiple
consequences (operating costs, compliance costs, emission reduction targets)

Transition

Technology

2

Short, Medium, Long

the Company, Downstream

8

Failure of the Company's development of green energy leads to multiple
consequences (operating costs, compliance costs, emission reduction targets)

Transition

Technology

4

Short, Medium, Long

the Company, Downstream

9

The Company's SBTi project fails to effectively promote GHG emission reduction
strategies in the value chain, resulting in multiple consequences (operating costs,
compliance costs, emission reduction targets, share price)Transition

Technology

2

Short, Medium, Long Upstream, the Company, Downstream

10

Risk of litigation leading to increased costs of fines and sentences and/or reduced
demand for products and services

Transition

Legal

2

Medium, Long

Upstream, the Company, Downstream

11

Substitution of existing products and services with low-carbon goods leads to adecrease in demand for products and services

Transition

Market2

Medium, Long

Upstream, the Company, Downstream

12

Changes in customer behavior lead to lower demand for products and services

Transition

Market2

Medium, Long

the Company, Downstream

13

Rising costs of raw materials and supply chain lead to increased operating costs

Transition

Market2

Short, Medium, Long Upstream, the Company, Downstream

14

5G development stalled due to supply chain impacts, and impacting revenue 入Transition

Market2

Short, Medium, Long Upstream, the Company, Downstream

15

Shifts in consumer preferences lead to a decrease in demand for products/services

Transition

Market2

Medium, Long

the Company, Downstream

16

Increasing attention and negative feedback from stakeholders (vendors) lead to adecrease in available capital

Transition

Reputation2

Medium, Long

Upstream, the Company

17

Industry stigmatization that affects workforce management and planning (e.g.
employee recruitment and retention)

Transition

Reputation1

Medium, Long

the Company

18

Increased severity of extreme weather events such as typhoons and floods leads to
production capacity reduction or disruption

PhysicalExtreme Physical9

Short, Medium, Long Upstream, the Company, Downstream

19

Increased severity of extreme weather events such as typhoons and floods results insupply chain disruptions, causing new projects to not be completed on schedule andresulting in loss of revenue

PhysicalExtreme Physical2

Short, Medium, Long Upstream, the Company, Downstream

20

Insufficient power supply backup leads to power rationing / power cuts

PhysicalLong-term Physical4

Short, Medium, Long Upstream, the Company, Downstream

21

Increase and expansion of power consumption becomes difficult

PhysicalLong-term Physical6

Short, Medium, Long Upstream, the Company, Downstream

22

Changes in rainfall (water) patterns and extreme changes in weather patterns lead tohigher infrastructure costs (e.g. facility performance and protection)

PhysicalLong-term Physical4

Short, Medium, Long Upstream, the Company, Downstream

23

Rising average temperatures lead to higher infrastructure costs (e.g. facility
performance and protection)

PhysicalLong-term Physical4

Short, Medium, Long Upstream, the Company, Downstream

24

Property and asset damage and disruption of production capacity due to sea level rise

PhysicalLong-term Physical2

Short, Medium, Long Upstream, the Company, Downstream

Supplementary Note: Impact timeframe - short term (1-3 years), medium term (3-5 years), long term (more than 5 years)

2022

Far Eastone Sustainability Report

68

Risk Identification Countermeasures
The table below describes the impact period, response measures, and adaptation plans in light of the potential impact of key climate change transition risks, such as the failure ofgovernment emission reduction and higher power generation costs resulting in higher electricity prices. Additionally, the table addresses physical risks, including the increased frequency ofstrong typhoons and extreme rainfall. It is important to note that the relevant response measures cover 100% of both existing and new operating sites.

About FET
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Risk Type

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Transition
Risk

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Risk

Failure ofgovernment
to reduce
emissions,leading tohigher power
generation
costs/higher
electricity
pricesPotential Impact

Technology

PolicyBaseStation/
Data
Center/Store/
OfficeFailure to achieve national GHG
reduction and renewable energy use
targets, resulting in the imposition offines on FET or the need to buy carbon
credits from other enterprises, impacting
the image of the Company
FET adjusts its business model and isforced to forgo services with high levelsof carbon emissions that will impact
business revenue
National renewable energy policy
leads to an increase in electricity prices
or unstable power supply, causing
disruption to FET's operations or services

Roll out new business in renewable energy, develop
renewable energy use goals and schedules, increase
renewable energy installation capacity annually (including
increasing the purchase of renewable energy certificatesand increasing self-owned certificate production
capacity), and plan to build solar energy base stations

Renewable energy next to newly constructed data
centers should be included as part of evaluations
Evaluate the impact and current implementation of
key regulations, while conducting quarterly reviews ofpossible legal changes and planning countermeasures
Purchase related liability insurance and adopt otherdisaster prevention measures to strengthen continuous
management of operations

Tower collapses and equipment isdamaged by strong winds and flooding
Operating costs increase due to power
shortage
Compensation costs to customers
increase due to operational interruption

Long-term climate scenarios for adaptation plan reference Note
Rural area: Scale of wind reaches 15 or above
Located in low-lying or poorly draining urban and rural areas: Flooding between 0.5-3 meters

Strong winds and flooding lead to lossof assets such as equipment in the data
center
Supply routes disrupted due to flooding
Drought and water shortage lead toinsufficient supply of cooling waterLong-term climate scenarios for adaptation plan reference Note
Metropolitan area: Scale of wind reach 15 or above, low-lying or poorly draining areas leading to flooding between
0.5-3 meters

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Base
StationSocial Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Physical
Risk

Increasedfrequencyof strongtyphoons
and extreme
rainfall
Data
Center

Note.

Countermeasures

Asset

Strengthen structure of existing tower equipment,
implement disaster-resistant construction on new basestations; 24 base stations obtained certifications fromstructural engineers for scale 15 wind resistance in 2022
Prepare backup power
Replace and install air injector fans

Maintain water consumption for at least 38 hours withwater tower or reservoir
Establish emergency response mechanism of airconditioning and air-cooling for basic daily operations
Store amount of backup fuel for more than 10 hours of
power generation

Transfer some risks with product insurance
Assess the wind resistance level of base stations andpursue improvements by zone
Important base stations have wind resistance warranties
and structure certifications secured

Transfer some risks with product insurance
Review and improve risk prevention for core data
centers
Investigate flooding potential and improve weaknesses/
year for core data centersUpdate site selection guidelines for low-carbon clouddata centers and include continuous and reliable water
source as an important consideration for site selection

Adaptation measures are applicable to all (100%) existing and newly constructed base stations and data centers, both currently in use and planned for the next 50 years. These measures are designed to align with theuse of base stations in conjunction with core data centers. Furthermore, they are reinforced in a timely manner per the principle of extending the service life to address potential impacts from long-term climate scenarios.

2022

Far Eastone Sustainability Report69Scenario Simulation Analysis
In order to assess the potential effects of climate-related risks on business strategies and decisions, FET has conducted a financial impact analysis for climate scenarios. This analysis
specifically examines the physical risk of more frequent severe typhoons and heavy rainfall, as well as the transition risk associated with government failure to reduce emissions and theresulting increase in power generation costs and electricity prices.
Scenario Analysis: Transition Risk

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Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Financial Impact Assessment

Corporate Governance
CH1 Corporate
GovernanceAppendix
Appendix2022

Risk: Government failure to reduce emissions
Below 2 degrees Celsius
The scenario used by FET is IEA B2DS 1. In this scenario, total people
affected in Taiwan is about 1.1721 million, and the affected area is
1,331.05 square kilometers.
FET's goal is to reduce greenhouse gas emissions by more than 42% in
2030 compared to 2021, which means that the total annual greenhousegas emissions must be reduced by 4.67% compared to the previous
year. If it is not reduced as expected, it will not meet the current
Taiwanese total control target. For this reason, FET assesses the potential
impact with fines or payment of carbon trading costs up to NT$1,500
per metric ton; in addition, considering the uncertainty of Taiwan’s
carbon fee policy, FET also assesses related financial impact at a cost of
US$10 2 per metric ton.
FET has also taken active measures and was reviewed and approved by
the Science Based Targets Initiative (SBTi) in April 2023. It is also the only
telecommunications company in Taiwan that aims to conform with thewarming scenario of 1.5 degrees Celsius by the end of the century.

Risk: Higher cost of power generation/higher electricity
pricesBelow 2 degrees Celsius
In the IEA B2DS scenario, FET will face a significant
increase in electricity price-related costs, which will havethe following impacts:
Budget constraints: If electricity prices rise, FET may
need to consider higher electricity costs when making
financial budgets and plans. This may lead to areallocation of resources, such as reducing investments
in other areas, or finding energy-saving solutions.
Uncertainty factors: The increase in cost will bringboth risks and opportunities. The costs will increase
within the industry, but it will also attract moreindustry players and new technologies to stay in thisfield. FET may need to adapt to the new operating
environment, re-evaluate its financial strategy, andrespond to possible market fluctuations.

Above 2 degrees Celsius
In the IEA STEPS 3 scenario, the government will follow the existing
policies and related countermeasures, but will not add relevant
regulations; this scenario expects that the temperature will increase 2.6°C
Celsius by 2100, and will continue to increase.
FET has determined that there are two situations in this scenario: "mostgovernments fail to reduce emissions" and "only a few governments failto reduce emissions (including the Taiwan government)":
1.Most governments fail to reduce emissions: In this situation, due
to the deterioration of the environmental climate, sea and airtransportation, raw material mining, and supply chain transportation
will be comprehensively affected and indirectly bear the upstream raw
materials and energy costs. The risk of environmental uncertainty has
increased, insurance costs have increased significantly, and budgets
have been constrained by rising costs.
2.A few governments fail to reduce emissions (including Taiwan): Thissituation will put our government authorities under pressure fromexternal governments, monitoring of public opinion will rise, and moreregulatory measures will be implemented, moving from leniency tostrictness. At this time, the cost of compliance will rise sharply, and FET
will also be subject to stricter public opinion supervision, which will
require FET to pay additional carbon emission fees or participate in the
carbon trading market, which will greatly increase operating costs.

Above 2 degrees Celsius
In the IEA STEPS scenario, the government’s existing
policies and measures to respond to climate change
will still be followed, and no relevant regulations will be
added; this scenario expects that the temperature will
increase 2.6°C Celsius by 2100, and will continue toincrease. The estimated impacts on FET are as follows:
Scope 2 of FET itself accounts for 98%. Therefore,
even if Taipower continues to follow the existing
regulations, the cost of electricity will still rise, andTaipower’s operating costs will increase, which will
be reflected in the electricity price, thereby increasing
FET's operating costs
This scenario lacks an external environmental driving
force, so much evidence and many hypotheticalscenarios need to be put forward to convince theBoard of Directors, employees, and stakeholders of
all parties to prove the necessity of carbon reduction
in multiple areas, including costs and impacts.
FET continues to use the existing greenhouse gas
reduction goal and compiles the relevant carbon costs
as before, and this goal can be achieved without
active measures.

Scenario Analysis: Physical Risk
Risk: Increased frequency of strong typhoons and extreme rainfall
FET has made a quantitative assessment of the financial impact
caused by extreme weather. The assessment found that "lossof equipment and assets due to strong winds" was the main
potential loss (accounting for 93.63% of the total loss amount),followed by "loss of equipment and assets due to flooding"(accounting for 4.09% of the total loss amount).
93.63% loss of equipment and assets due to strong winds
4.09% loss of equipment and assets due to flooding
1.28% increase in compensation costs for customers due tooperational interruption
Power shortages leading to operational disruptions or increased
1.00% operational costs
Below 2 degrees Celsius
RIn the RCP 2.6 4 scenario, if the warming is close to 2°C, there
will be an increase of 1.2 grade four typhoons 5 and 1.2 grade
five typhoons 6 every year in the future; that is, 7.96 strong
typhoons would hit Taiwan between 2020 and 2030. The area
affected by these strong typhoons is expected to be 1,131.19
square kilometers, with 905,700 people affected. The source ofrisk suffered by FET is strong wind, and 93.63% of losses comefrom this. Among the losses caused by strong wind, the loss ofthe base station is the largest, accounting for 86.62% of thetotal loss.
Above 2 degrees Celsius
RIn the RCP 8.5 7 scenario, the 24-hour rainfall reaches 650 cm,
the flooding depth is 0.5 to 3 meters, the average typhoon windspeed increases by 8%, the affected area in Taiwan increases to
1,398.11 square kilometers, and the number of people affected
increases to 1.2056 million.
At present, the loss of equipment caused by flooding is about
4.09%. Since most base stations and data center equipment
are located on the top floor of or inside buildings, they are lessaffected by flooding.
For strong winds that directly damage base station equipment(such as antennas or power supply equipment) and data center
equipment (such as generators, air cooled water chillers or
cooling water towers), since the main source of risk is strong
wind, FET has transferred the financial risk caused by thetyphoon through insurance to reduce losses.
Far Eastone Sustainability Report70Scenario
Analysis

Transition Risk

Physical Risk

Below 2 degrees Celsius

Below 2 degrees Celsius
Below 2 degrees Celsius
In this scenario, the development of low-carbon
According to the RCP 2.6 scenario, FET needs to improve the
The main situation faced in this scenario is the booming
technology is expected to thrive. Consequently,
following items:
demand for low-carbon and energy-saving products.
we have concerns about potential disruptive
This will significantly increase FET's own demand for lowStrengthen business resilience: FET can incorporate extreme weather
innovation in the industry, which may hinder FET's
carbon technology and create greater incentives for the
events into its business strategy, increase countermeasures, andability to keep up with the trend. Investing in thisdevelopment of related technologies, leading to increased
strengthen business resilience to cope with the impact of strong
field will likely result in higher operating costs forinvestment in this field.
typhoons and extreme rainfall.
FET, as well as the need to diversify its low-carbon
Environmental
risk management: FET can further strengthen the
Above 2 degrees Celsius
energy-saving product offerings.
management of extreme climate risks, including risk assessment andFET has completed the risk assessment, which identified
monitoring. This can help FET better understand the likelihood andAbove 2 degrees Celsius"loss of equipment and assets caused by strong winds"
impact of extreme weather events and formulate corresponding"Delayinthedevelopmentofrelatedtechnology
Businessas the primary potential loss factor, followed by "loss ofcountermeasures to mitigate potential financial and operational
products"
will
be
the
dilemma
faced
in
this
equipment and assets caused by flooding." Consequently, if
Strategyrisks.
scenario;This
scenario
will
significantly
decrease
the temperature increases by more than 2 degrees Celsius in
Application
thedemandforlow-carbon
technologies
inthethe future, the following consequences will arise:
Above 2 degrees Celsius
external environment, diminish the incentives for
A. Public image and reputation: If the government's
Carbonneutral and net zero goals: FET can set carbon neutral andthe development of related technologies, and also
effectiveness in reducing emissions is poor, the public will lower companies' investment in this field, thereby
net zero goals, take corresponding measures to reduce carbon
become more concerned about climate change-related
emissions in its own supply chain, and indirectly improve the stable
increasing unit costs. When companies invest in
matters, leading to increased scrutiny and criticism ofoperation and financing effect of the supply chain.
the development of this field, they must confront
FET's corporate reputation. Consequently, this will impact various disadvantages, including heightened
Cooperation and partnerships: To address the issue of high carbon
public trust and the company's reputation.
emissions, FET can proactively pursue collaboration with enterprises,
technology costs and extended payback periods.
B. Relevant enterprises will be affected: If the solar energy
governments, and non-governmental organizations across
Under such circumstances, FET may only maintainfeed-in tariff policy is coming to an end, it will impact
industries. This will not only facilitate the exchange of knowledge
its original budget, and its actions in related fields
the solar energy industry and affect the business of FET's will gradually become negative.
but also enhance technical cooperation and innovation to effectively
subsidiary "Prime Eco Power".
tackle the challenges presented by climate change.

About FET
About
FET
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Message from
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
1

IEA B2DS is the scenario where global warming is below 2 degrees Celsius in transition risk
According to "Carbon pricing options for Taiwan" by the LSE Grantham Research Institute on Climate
Change and the Environment, an important British research institute on climate change, and Vivid
Economics, it is suggested that the starting rate of carbon fees can be US$10 per ton
3
IEA STEPS is the scenario where global warming reaches 2.6 degrees Celsius in transition risk
4
RCP 2.6 is the warming mitigation scenario in the physical risk. This scenario assumes that the radiation per
square meter will increase by 2.6W/m2 in 2100, that is, the warming range in Taiwan may remain 1.17
2Social Inclusion
CH4 Social
Inclusion
Appendix
Appendixdegrees Celsius higher than the temperature before the industrial revolution
A grade four typhoon has a wind speed of 58 m/s or more and wind gusts of scale 17 or more
6
A grade five typhoon has a wind speed of 70 m/s or more and wind gusts of scale 17 or more
7
RCP 8.5 scenario is the scenario of maintaining the status quo in the physical risk; this scenario
assumes that the radiation will continue to increase to more than 8.5 W/m2, and the carbon dioxide
concentration will be greater than 1,370 ppm, that is, the warming range in Taiwan may remain 3.49
degrees Celsius higher than the temperature before the industrial revolution
5

Risk Management
The FET Risk Management Committee implements risk management across various areas of the Company, including finance, strategy, operations, information security, and environmental
and energy risks. This is achieved through the operation of different levels of organizations and responsibilities. FET has developed a"Risk Management Policy" based on the "ISO 31000
Risk Management Guidelines,"which has been approved by the Board of Directors. This policy serves as the guiding principles for all business groups in their implementation of risk
management. The risk assessment focuses primarily on the Company itself. Each business group conducts annual and regular risk assessments, formulates risk management strategies andplans, and considers the economic, environmental, and social aspects of corporate governance issues that have significant impacts on customers, investors, and other stakeholders. The
results and performance of sustainability promotion in the current year are reported to the Board of Directors on a regular basis. The seventh report of the ninth session of the Board of
Directors has been submitted. For more information on the organizational framework and operations of the Risk Management Committee, please refer to section 1.3.3Risk Management.
For more information on the organizational framework and operational performance of the Environment and Energy Management Committee, please refer to section 3.3.1Environment
and Energy Management Committee.

2022

Far Eastone Sustainability Report71Targets and Indicators
Energy use is the primary concern for the telecommunications industry when it comes to addressing climate change. FET has developed indicators, including greenhouse gas emissions,energy consumption, and water resources, to assess the effectiveness of our management practices. We not only establish medium- and long-term targets for each response measure
mentioned above, but also conduct annual reviews to track our progress. Furthermore, we make ongoing adjustments based on external environmental trends, aiming to minimize theimpact of climate change through target management.

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FET has established a science-based reduction target in line with the global goal of limiting warming to below 1.5 degrees Celsius. The company aims to achieve net zero emissions by 2048.
Additionally, FET has officially announced its participation in the international renewable energy initiative RE100. The objective is to fully transition to renewable energy sources in offices,stores, and major data centers by 2030, and achieve 100% renewable energy usage company-wide by 2040. FET will progressively increase the capacity of renewable energy installations
to facilitate this energy transition. The company has also implemented management indicators and targets for energy consumption in the aforementioned energy-intensive areas, and isactively promoting energy-saving programs, as outlined in section 3.2 Environment and Energy Management.
Risk Type (reference)

Risk

Long-term Target

2022 Performance

Transition Risk

Failure of government to
reduce emissions, higher
power generation costs/higher
electricity prices

42% reduction in GHG emissions in 2030 compared to the base year
2021
Electricity consumption of 1GB traffic of the base station in 2030
reduces by 59% compared to the base year 2021
8.83% reduction in average electricity consumption per directly
operated store in 2030 compared to the base year 2021
IDC room power usage efficiency (PUE) reduces by 7.14% in 2030
compared to the base year 2021
Office electricity consumption per square meter per year (energy use
intensity, EUI) reduces by 10.17% in 2030 compared to the base year
2021
The share of renewable energy in the overall electricity consumption in
2030 increases by 30% compared to the base year 2021

3.01% increase in GHG emissions in 2022 compared to the baseyear 2021
2022 base station electricity consumption of 1GB reduced by
31.02% compared to the base year 2021
In 2022, the Power Usage Effectiveness (PUE) of the IDC data
center decreased by 3.68% compared to the baseline year 2021
3.4% reduction in average electricity consumption per directly
operated store in 2022 compared to the base year 2021
Office electricity consumption per square meter per year (EUI)
reduced by 2.46% in 2022 compared to the base year 2021
The share of renewable energy in the overall electricity
consumption accounted for 0.5% in 2022

Physical Risk

Increased frequency of strong
typhoons and extreme rainfall

Maintain storage of at least 38 hours of water throughout the year
Maintain at least 10 hours of generator backup oil throughout the year

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Targets achieved

Greenhouse Gas Emissions

Appendix
Appendix

Since 2015, FET has implemented the ISO 14064-1 Greenhouse Gas Inventory and established medium- and long-term goals for managing greenhouse gas emissions. By 2030, FET aims
to reduce total greenhouse gas emissions in Scope I and II, as well as Scope III, by 42% compared to 2021 levels. For more details on greenhouse gas emissions, please refer to section 3.2,
"Overview of FET's Environmental Footprint."
ISO 14064-1

GHG Protocol

GHG Emissions

Percentage

Category 1

Direct GHG emissions and removal

Scope 1

Direct GHG emissions and removal

4,667.63

0.71%

Category 2

Indirect GHG emissions from purchased energy

Scope 2

Indirect GHG emissions from purchased energy

286,818.20

43.72%

Category 3

Indirect GHG emissions from transportation

6,641.61

1.01%

Category 4

Indirect GHG emissions from products used

287,843.09

43.88%

Category 5

Indirect GHG emissions related to the use of products

70,079.63

10.68%

Category 6

GHG Emissions from other sources

0

0%

2022

Scope 3

Indirect GHG emissions

1

FET adopted ISO 140641: 2018 for its 2019 GHG
inventories. The table now
includes six categories fortypes of GHG emissions,replacing the previous
Scopes 1-3.
2
The Scope 3 part has beenverified by a third party.

Far Eastone Sustainability Report72

3.2 Overview of FET's Environmental Footprint
The main environmental impacts of telecom services are primarily due to energy consumption and the resulting greenhouse gas (GHG) emissions. The following provides an overview of
FET's environmental footprint in 2022, including overall energy consumption, distribution of energy use, GHG emissions, total waste generation, and water consumption. In 2022, theinventory scope was expanded, and the inventory locations remained consistent with those listed in the consolidated financial report.

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Energy Consumption
0.49% 0.5%

Contents
Contents

1% 2%

17.83%

0.71%

82.15%

23%

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Management

43.72%

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Energy Use
Distribution

Greenhouse
Gas Emissions

Total Waste

98.91%

74%

55.57%

71.6%

unit: GJ 1 / MWhunit: kWh

unit: Tons/year

unit: Metric Tons

Fossil fuels(Direct energy consumption)

13,833.86 GJ / 3,842.74 MWh

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Electricity(Indirect energy consumption)

Renewable energy consumption 2

Solar energy(Indirect energy consumption)

11,462.29 GJ / 3,183.24 MWh

1.

Office buildings
6,496,121

Direct GHG emissions

704.954(Scope 1) 4,667.63

Data centers
144,223,482

Indirect GHG emissions(Scope 2) 286,818.20

Produced Amount
Storage AmountBase stations
473,885,038

Other indirect GHG
emissions(Scope 3) 364,564.33

Stores
11,577,139

The heating value is calculated by using the latest energy product unit heating value tableannounced on the website of the Bureau of Energy, Ministry of Economic Affairs. Energy
consumption is calculated by multiplying energy usage by unit heating value and converting togigajoules (GJ).

2022

100%

Hazardous Waste

2,290,776.08 GJ / 636,181.78 MWh

Appendix
Appendix

Water
Consumption

EnergyConsumption

Purchased non-renewable energy source

Environmental Sustainability
CH3 Environmental
Sustainability

28.4%

All area

704.9540Non-hazardous Waste

279.020
Transfer Amount
103.530
Direct Disposal Amount 175.490

Total Amountunit: kL

983.974

Total Water Withdrawal
242,341
Total Water Discharge 3
242,341
Areas with
Water Resource Pressure

Total Water Withdrawal0
Total Water Discharge
02.

The GJ consumption of renewable energy disclosed is estimated power generated for theconstruction of solar power generation.
3.
The source of water withdrawal and the end point of discharge are classified as third-party water,
and the water quality index is fresh water.

Far Eastone Sustainability Report73Environmental Footprint Trends Over the Past Four Years
FET is dedicated to promoting environmental sustainability, and advocates for various reduction measures for energy issues, GHG emissions, waste and water management in each year.
Please see the Appendix for Environmental Aspect Data for the past four years.

Greenhouse Gas Emissions 2

Energy Consumption

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Total Energy Consumption

Total GHG emissions (ton CO2e/year)

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MWh

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Energy Intensity(GJ/number of valid customers)

Scope 1GJ 12,232,495.11

Corporate Governance
CH1 Corporate
Governance2,316,072.23

93.83

1,985,047.62

983.97

271,900

269,438

91.82

412,874.12

257,963761.03767.36242,34182%

364,564.33

1,880,747.12

623.59Smart Sustainability
CH2 Smart
Sustainability

Water Consumption(kL/year) 4

Percentage ofRecycling Generic Waste 3

437,722.69
421,967.36

Water Consumption

Total Hazardous andNon-hazardous Waste (metric tons)

102.25
94.79

0.28

0.27

Scope 3

GHG emission intensity(kg CO2e/ number of valid customers)

0.32

0.32

Highlights
2022 ESG Highlights

Scope 2

Total Waste

68.95%

71.56%

61.93%

273,251.07
286,818.20

Environmental Sustainability
CH3 Environmental
Sustainability
522,311.81

551,277.49

619,997.23

643,207.76

244,332.43 245,621.92

10,652.13

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Appendix
Appendix

2019

2020

2021

2022

6,067.89

4,859.12

2019

2020

4,667.63

2021

2022

2019

2020

2021

2022

2019

2020

2021

2022

1.

Giga-Joule (GJ) = 0.277778 MWh
FET has adopted ISO 14064-1:2018 as the standard for GHG emissions inventory since 2019. Prior to 2018, the company had adopted the previous version, ISO 14064-1:2006. However, it is important to notethat the new version has different scopes, and as a result, the GHG emissions from FET's rental data centers were not included in the inventory.
3.
In 2022, the replacement of base station lead-acid batteries led to an increase in the quantity of hazardous waste, while general waste continued to decrease.
4.
Data from 2019 to 2022 have been adjusted according to the scope of this annual report.
2.

3.3 Environmental and Energy Management
FET is committed to improving energy efficiency by implementing the Energy Management System (ISO 50001) and Environmental Management System (ISO 14001) certification. We havealso implemented the GHG Inventories (ISO 14064-1) to effectively manage the environmental impacts of energy consumption. To guide our efforts, we have established the "FETEnvironment and Energy Policy " and "Statement of GHG Management Policy." Our goal is to conserve energy and improve efficiency in all stages of telecom services, while actively
contributing to climate change mitigation and adaptation.

2022

Far Eastone Sustainability Report74About FET
About
FET
Contents
Contents

3.3.1 Environment and Energy Management Committee

3.3.2 Environmental Management System

The FET "Environment and Energy Management Committee" operates under the "RiskManagement Committee" and provides annual reports to the Board of Directors on
significant environmental and energy matters. The committee is led by the Chief Financial
Officer (CFO) and consists of department heads from various departments. Quarterly
meetings are held to address energy and environment-related goals and performance. FET
has also implemented measures for Environment and Energy Management, encompassing
energy and environmental management, greenhouse gas reduction, and climate change
response.

FET has already implemented ISO 14001 Environmental Management, ISO 50001 Energy
Management, and ISO 14064-1 Greenhouse Gases, and also seeks external assurance.
The coverage and results of each environmental management system are as follows.
The primary objectives of ISO 14001 include reducing waste by 2%, decreasing water
consumption by 1%, implementing ISO 46001 Water Efficiency Management Systems,
establishing a carbon management platform, fulfilling the FET Biodiversity and ZeroDeforestation Commitment and Operational Methods, achieving an 80% questionnaire
response rate for the Supply Chain ESG Sustainability Risk Self-Assessment of the top
500 suppliers, and attaining an 83% utilization rate of electronic bills. Additionally, theISO 50001 goal is to conserve 7.87 million kWh of electricity, invest in or construct solar
power plants, and participate in the RE100 initiative.

Structure of Environment and Energy Management Committee

Message from
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Board

Risk Management CommitteHighlights
2022 ESG Highlights
Environment and Energy
Management Comite

Corporate Governance
CH1 Corporate
Governance

Chairman-Executive Vice Presidentof Finance & Facility Service Group

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
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Inclusion

Vice Chairman-Senior Directorof Finance & Facility Service

Commissioner
Corporate Sustainability Responsibility

Executive Secretary
Finance & Facility Service

CSR Goal Matchingand External Communication

Audit Team
Finance & Facility Service

Appendix
Appendix
Legal &
Procurement

Facility Efficiency
Control/Green
Procurement

Green
Supply Chain

2022

Information& Digital
Transformation
Technology
Low Carbon
Product

Low Carbon
Product

Finance& Facility
Service
Offices/
Large server
rooms

Network &Technology

BTS Stations/
Small serverrooms/Master
Stations

Enterprise& Carrier BU

IDC
server rooms

Operating Equipment

Channel &CareManagement
Store

1.
2.

Certification

Category (site of introduction)

Coverage Rate

ISO 50001 Energy
Management
System 1

Taipei: 4 points (offices / data centers / stores)
New Taipei: 2 points (offices / data centers)
Taichung: 2 points (offices / data centers)
Tainan: 1 point (offices / data centers)
Kaohsiung: 2 points (offices / data centers)

100%(telecommunication
services revenue)

ISO 14001
Environmental
Management System

Taipei: 4 points (offices / data centers / stores)
New Taipei: 2 points (offices / data centers)
Taichung: 2 points (offices / data centers)
Tainan: 1 point (offices / data centers)
Kaohsiung: 2 points (offices / data centers)

100%(telecommunication
services revenue)

ISO 14064-1
Greenhouse Gases 2

FET and its 24 subsidiaries as listed in theConsolidated Financial Statements

100%

The Energy Management System has adopted the ISO 50001:2018 version.
The GHG inventory has adopted the ISO 14064-1:2018 version, and the scope included FET, New
Century Infocomm Tech Co., Ltd., Kgex.com Co., Ltd., Information Security Service Digital United,
Yuan Shi Digital Technology Co., Ltd., PrimeEco Power, FET Property Insurance Agency Co., Ltd.,
Yuan Cing Co., Ltd., Nextlink Technology Co., Ltd., Microfusion Technology, Mission Entertainment,
Digital United Information Technologies Inc, Nextlink (HK) Technolog Co., Limited, Microfusion(HK) Technology Co., Limited, FEIS, New Diligent Co. Ltd., New Diligent Hong Kong Co. Limited,
Sino Lead Enterprise Limited, Digital United (Cayman) Ltd., Far Eastern New Diligent Company Ltd.,
Ideaworks Entertainment Co., Ltd., Nextlink (Shanghai) Technology Co., Ltd., ARCOA EnterpriseCo., Ltd., Data Express Digital Technology Co., Ltd., Home Master Technology Ltd., etc.

Far Eastone Sustainability Report75

3.3.3 FET Overall Energy Management and Conservation
In order to facilitate the transition to renewable energy, FET establishes yearly objectives and encourages energy-saving initiatives for key departments with high energy consumption. These
departments include base stations, data centers, stores, offices, and logistics.
2022 Targets

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FET

2022 Progress

Achievement

2023 Targets (vs. base year 2021)

Base stations

Decrease 5% power consumption per 1 GB of traffic volume(million kcal consumed/GB) at base stations per year

Annual reduction of 31%

Achieved

Reduction of 35 %Data centers

Annual reduction of 0.33% of PUE

Annual reduction of 3.68%

Achieved

Reduction of 3.82%

StoresAnnual reduction of 3.01% million kcal per store

Annual reduction of 3.40%

Achieved

Reduction of 2.31%

Offices

Annual reduction of 0.5% in EUI 1

Annual reduction of 2.46%

Achieved

Reduction of 4.63%

Contents
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Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

1.

Energy Use
Intensity(EUI): power
consumption
in kWh/total
floor area of thebuilding (Unit;
kWh/m2*year)

Base stations
In 2022, energy consumption at base stations accounted for approximately 75% of the total power consumption, making it the primary source of energy usage across FET's operating sites
and facilities. The rise in overall energy usage of base stations primarily resulted from the ongoing expansion of 4G and 5G base stations, aimed at delivering superior mobile communication
services to customers. FET has proactively developed and executed energy-saving initiatives. In the construction of 5G base stations, we have implemented an AI simulation mechanism toenhance the accuracy of inputting 5G equipment, thereby optimizing equipment energy efficiency. Additionally, we have introduced a dormant management mechanism for traffic system
calculation in both 4G and 5G base stations. This mechanism enables each base station to adjust the traffic volume within its service area through internal calculations, facilitating rapid
and automated resource allocation. As a result, the energy consumption of each unit's resources can be maximized. Furthermore, we will continue to utilize the latest cross-frequency andmixed-mode equipment technology. This will allow a single device to provide more than two energy-saving benefits, effectively managing the energy consumption of our base stations. In
2022, a total of 23,052 base stations implemented energy-saving initiatives, with an investment exceeding NT$110 million. This resulted in an estimated reduction of 8,943 tons of carbon
emissions, equivalent to the carbon sequestration of 23 Daan Parks. Additionally, it is estimated that these efforts led to cost savings of NT$61.49 million.
Base Stations Energy Saving Measures and Results

Environmental Sustainability
CH3 Environmental
Sustainability
Short Term (Ongoing)

Appendix
Appendix

Continue to use the 5G AI station selection evaluation mechanism tomanage the energy consumption efficiency of the new station construction
Continue to use the dormancy management mechanism of 4G and 5G basestation traffic system calculation
Continuous replacement of low-efficiency power conversion equipment
Continue to replace high power consumption air conditioning withventilation systems to improve the circulation of base station heat dissipation
Continuous adjustment of 4G spectrum optimization parameters
Increase the solar capacity of base stations

Long Term

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Energy Saving Measures

Initiate successive 3G equipment exit execution
Introduction of high performance, low power consumption mixed-mode
equipment for base stations
Continue to introduce new energy-saving technologies through upgrades
Introduce green power or energy storage equipment using the fieldenvironment of specific base stations
Manage the scheduling and use of station equipment and spectrum
resources using AI technology

2022

Results and Effectiveness in 2022

Energy Consumption of Base Stations
Annual Power Use (MWh)Expenditure

1GB kWh 3$111,393,000 NT

Energy saving benefits

0.223

17,570,141 kWh

473,885

455,154384,887358,711

0.171

2019

2020

0.176
0.121

Carbon emission reductions 2

8,943 tons CO2e2.

The 2021 electricity carbon emission
coefficient = 0.509 kg CO2e/kWh, was usedthroughout this Chapter to calculate this year's
carbon reductions

3.

2021

2022

Base station energy indicator is defined as the power consumption(kWh) from customer Internet use per gigabyte (GB). Energy
indicator = power consumption (kWh) / communication volume (GB)Far Eastone Sustainability Report76About FET
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Data centers
In 2022, the average PUE in data centers reached 1.657, a decrease of 3.68% compared with the previous year. In 2022, the data center of our information centers implemented external
air energy-saving technology to decrease energy consumption. By utilizing low-temperature external air and carefully adjusting and blending it, we were able to cool the servers, resulting ina reduction of over 50% in electricity usage for air conditioning during the autumn and winter seasons. This significant decrease in energy consumption also led to a substantial reduction incarbon emissions from our data centers, resulting in a continued decline in PUE. Furthermore, FET is actively expanding its server virtualization capabilities to accommodate ongoing businessgrowth. This expansion aligns with our objectives of cost reduction, enhanced efficiency, streamlined management, and environmental sustainability. In 2022, FET implemented additional
carbon reduction initiatives, investing NT$12,804,790 in energy-saving programs for data centers and NT$11.34 million in server virtualization. With the addition of 492 new servers thisyear, the Company now operates 6,160 virtual technology servers, resulting in energy savings of 1,060,000 kWh, equivalent to approximately 538 tons of carbon reduction. The number ofphysical servers purchased was reduced to 18 units, resulting in an estimated total reduction of over NT$2.73 million in electricity bills. In 2022, FET made further advancements in energy
efficiency and the utilization of renewable energy. The company acquired a 1.9 MW solar power plant, resulting in an increase of renewable energy usage to 3.3%. Additionally, FET will
adhere to the national energy policy, evaluate the implementation of alternative technologies, and strive to further enhance the proportion of renewable energy utilization.
Data Center Energy Saving Measures and Results
Energy Saving Measures

Highlights
2022 ESG Highlights

Energy Saving Results and Effectiveness in 2022

Energy Consumption of Data Centers

Annual Power Use (MWh)Corporate Governance
CH1 Corporate
Governance

Efficiency enhancement of cooling systems in data centers
Optimization and replacement of air conditioner units
Use of LED lighting
Use high-efficiency power equipment
Promotion of energy management control system
Optimization of lighting control systems
Server virtualization
Optimization of air-conditioning box
Installation of cooling water tower frequency control system
Installation of power regeneration system for freight elevator

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Expenditure$12,804,790 NT

1.758

1.721

135,717

141,828

144,2231.657

1,014,5091 kWh
Carbon emission reductions note

516 tons CO2e
2019

Note.

1.764
139,153

Energy saving benefits

PUE

2020

2021

2022

For the calculations of this year's carbon reductions, the electricity carbon emission coefficient in 2021, or 0.509 kg CO2e/ kWh, was used throughout this Chapter.

2022

Far Eastone Sustainability Report77About FET
About
FET
Contents
Contents

Stores
FET is actively enhancing the eco-friendliness of our stores by adopting the Energy Label as the benchmark for equipment during store renovations and contracting projects. Furthermore,
we are gradually implementing energy-saving measures at our stores, such as utilizing inverter air conditioning units and energy-efficient lighting. All energy-saving eco-friendly stores
have implemented energy-saving equipment and replaced traditional posters with digital, interactive multimedia equipment in order to minimize resource consumption. In 2022, a totalof 23 stores were transformed into energy-efficient, environmentally-friendly establishments, resulting in a reduction of energy consumption by 12.24% and an annual power savingof approximately 1.38 million kWh. Arcoa has also embraced the concept of environmentally friendly stores and is actively replacing outdated air conditioner units with inverter models.
Additionally, the company is transitioning to LED energy-saving lighting equipment.
Stores Energy Saving Measures and Results
Energy Saving Measures

Message from
Messagefrom Management
Management

FET Telecom

Environmental Sustainability
CH3 Environmental
Sustainability

Continue to reform stores and expand the ratio of green
storesSet Energy Label equipment as standard when opening
new stores and contracting work
In 2022, lighting equipment in 29 stores was replacedand energy-saving devices such as LED lighting, inverter
air conditioners, and LED emergency exit lights wereadoptedReplace traditional posters with digital, interactive
multimedia equipment
In 2022, a total of 232 old air conditioner units have been
replaced with energy-efficient inverter air conditioners

Social Inclusion
CH4 Social
Inclusion

Arcoa

Appendix
Appendix

Replace old air conditioners in stores to improve
operating efficiency
Stores continue to replace LED lights, and the activation
time of store sign lights is adjusted and controlled

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Energy Saving Results and Effectiveness in 2022

Expenditure$856 million NT

Energy saving benefits

Average monthly power consumption of regular chain stores
Total power consumption of regular chain stores
Average monthly power consumption of regular chain stores Note
12,351,777
3,044

11,906,389
3,091
11,260,663

1,378,865 kWh

2,970
2,869

Carbon emission reductions note

9,881,798

701.84 tons CO2e

Unit: kWh2019

Expenditure$28,650 NT

Energy saving benefits

2020

2021

2022

Total power consumption of chain stores and maintenance stations
Average power consumption of chain stores and maintenance stations
1,904
666,248

702,481
1,673

655,358

55,490 kWh
1,560

Carbon emission reductions note

599,868

1,428

28.24 tons CO2e

Unit: kWh
2019

Note.

2020

2021

2022

Average power consumption = total power consumption of regular chain stores / number of regular chain stores.

2022

Far Eastone Sustainability Report78Offices
FET continues to reduce power consumption from offices through energy-saving and carbon reduction measures, renewing equipment and optimizing operational management. In 2022,
the EUI reached 109.48 (kWh/m2/year), 2.5% lower than last year. FET also continued to select Green Mark-certified products to enhance the efficiency and green benefits of informationequipment.

About FET
About
FET

Statistics of Leased Equipment

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

2019

2020

2021

2022

Personal computers

99.07%

99.42%

99.78%

99.83%

Laptop computers

93.04%

97.08%

89.25%

91.97%LCD monitors

92.56%

88.46%

96.21%

90.17%

Offices Energy Saving Measures and Results
Energy Saving Measures

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Energy Saving Results and Effectiveness in 2022

119.83

FET Telecom
Optimization and replacement of
air conditioner units
Selection of smart microwave
sensor lights
Use high-efficiency power
equipment
Additional purchase of adsorption
dehumidification equipment
Promotion of energy
management control system

Office Energy Consumption (EUI)

Improvement of ice machine
operating efficiency
Optimization of lighting control
systems
Replacement of freight elevator
control and installation of kinetic
energy recovery system
Activation of leased equipment
Optimization of EC fans forcooling water towers

Expenditure $2,049,353 NT

116.27112.29109.482021

2022

Energy saving benefits 106,698 kWh

Carbon emission reductions 54 tons CO2e
2019

2020

Appendix
Appendix
Arcoa
Optimization and replacement of air conditioner units
Use of LED lighting
Regularly checking unnecessary energy sources are turned off
Warnings and tracking system for abnormal monthly power
consumption
Promotions of energy-saving awareness119.23

Expenditure $23,700 NT

115.95110.73

Energy saving benefits 24,792 kWh
103.4

Carbon emission reductions 12.62 tons CO2e
2019

2022

2020

2021

2022

Far Eastone Sustainability Report79About FET
About
FET

Green Logistics and Packaging
FET promotes environmentally-friendly logistics and utilizes data analytics to optimize logistics routes based on the varying opening hours of each store. This approach reduces transportation
costs, minimizes environmental pollution related to products, and decreases the number of cardboard boxes used for logistics. In 2022, we achieved significant benefits, including a
reduction of 52,800 kilometers in distribution mileage, which is equivalent to a carbon reduction of 11.8 metric tons. Arcoa has been consistently updating energy-saving equipment andoptimizing logistics routes at its logistics centers. As part of these efforts, the company has replaced one-time use paper boxes with logistic boxes since 2020. This initiative has resulted in a
reduction of approximately 64,718 cartons consumed in 2022.
Green Logistics and Packaging Measures and Results

Contents
Contents

Energy Saving Measures

Message from
Messagefrom Management
Management

Energy Saving Results andEffectiveness in 2022

FET Telecom
Continue to optimize logistics routes throughbig data analysis and in line with different store
opening hours
Require all deliveries to turn off engine whenparked to reduce fuel consumption
Promote green product packaging to reduce
environmental impacts
Apply marketable merchandise 1 orders combined
process
Use green packaging for all marketablemerchandise
Centralize shipment for auxiliary merchandise 2
from stores every monthHighlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Carbon emission reductions

11.8 tons CO2e

Arcoa
Opt for energy-saving lighting, reviewing lighting
circuit, and adjusting power consumption
processes in logistic centers
Plan to replace the circuits and equipment ofelectricity system in logistic centers to improveenergy efficiency and reduce losses
Replace one-time used paper boxes with logistics
boxes through stores shipment
Total 574,759 kWh of solar power generation in
2022

Appendix
Appendix1.
2.

Carbon emission reductions

39.48 tons CO2e

Marketable merchandise are cell phones and accessories purchased by customers.
Auxiliary merchandise are flyers, point-of-sale materials (POSM), and SIM cards.

2022

Far Eastone Sustainability Report803.3.4 Environmental Resources Management
By recovering and reselling used mobile devices and promoting paperless services, FET has been reducing resource consumption from consumers' use of our products and services.
Paperless Services

About FET
About
FET
Contents
Contents

FET is actively promoting digitalization projects, including the digitization of electricity bills and forms. We have developed systematic, modular, and streamlined paperless management
systems, enabling the practical implementation of paperless telecommunications services. The digital billing system and FET's Mobile Circle App offer users a clear and user-friendly way toaccess billing and payment information, enabling them to easily understand their account details. In 2022, a total of 3.89 million users utilized digital bills, with 700,000 being new users,
resulting in a usage rate of 82.4%. This led to a significant reduction in paper usage, saving a total of 116.7 million pieces of paper, which is equivalent to reducing the carbon footprint by
933.6 metric tons. 1 Our target for 2023 is to further increase the usage rate of digital bills to 83.7%.
1.

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

According to the Carbon Footprint Information Platform of the Environmental Protection Administration of the Executive Yuan, the carbon footprint of one pack of 500 sheets A4 paper is calculated as 4kg CO2e.

Mobile Phone Recycling and Resale
Electronic waste remains a concern for the general public and requires attention from both telecommunications service providers and consumers. To facilitate consumer recycling of mobile
communication products and promote resource conservation, FET has entered into a "Memorandum of Understanding on Cooperative Recycling of Waste Mobile Communication Products"
with the Environmental Protection Administration (EPA). As part of this initiative, FET has established cell phone recycling points at various stores throughout Taiwan, where consumers
can recycle their waste cell phones, PDAs, GPS devices, and charging devices free of charge. Additionally, FET has introduced an old cell phone exchange program, allowing individuals toredeem their used cell phones for shopping credit, thereby incentivizing the recycling of old devices. In 2022, FET successfully recycled a total of 4,583.74 kg of cell phones and 390.03 kgof accessories. These waste products are then transferred to qualified operators for reuse. In 2022, FET made efforts to establish a secondary market for reselling display products, targeting
specific customer groups. During this period, FET successfully reused 65 cell phones, resulting in a reduction of approximately 0.7 tons of carbon emissions 2. Additionally, FET also resold 4tablets and 37 pieces of accessories to thrift shops.
Handling of recycled cell phones

Environmental Sustainability
CH3 Environmental
Sustainability

Environmental Benefits of Resale
22,580Weight of recycled cell phones 3 (metric tons)
16,595

Recycled cell phones (pcs)
Reused: donated or sold after refurbishment

2022

5,720

2,992

1,430

3

2

0.7

4.58

Energy saving

0.64

benefits

Recycled: disassembled parts or materials that have been re-entered into the

Appendix
Appendix

2021

0.39

Recycled accessories: batteries/chargers/cables (metric tons)

Social Inclusion
CH4 Social
Inclusion

2020

kWh

3.37

manufacturing process (not limited to the cell phone manufacturing process)Landfilled: as waste
538

0.11
0.11

2018

1,347
2019

0.17

3,545

0.29
0.72

Carbon emission

0.27

reductions
2020

2021

2022

Handling of recycled cell phones
76%
17,186 (3.49metric tons)

2022

tons CO2e

2.

17%

7%

5,394 (1.09metric tons)

According to the announcement of the Environmental Protection Administrationof the Executive Yuan, the recycling of one mobile phone can save about 22 kWh.
The electricity emission factor is 0.509 kg CO2e / kWh in 2019.
3.
Calculated on an average of 203 grams per piece.

Far Eastone Sustainability Report813.4 Sustainable Supply Chain
3.4.1 Sustainable Supply Chain Performance
About FET
About
FET
Contents
Contents

FET has proactively addressed the global trend of sustainable management in the supply chain and established its sustainable work goal for 2022 in 2021 (refer to page 42 of the 2021
FET Sustainability Report for more information). Through collaboration with colleagues in procurement and other departments, the procurement department has successfully achieved fivesignificant outcomes. The details are as follows.

ISO 20400 Sustainable Procurement
Guidelines Versification

01

Message from
Messagefrom Management
Management

Completed Supply Chain Carbon Emission Estimation

FET is the first telecommunications company in
Taiwan to obtain third-party verification of ISO
20400 Sustainable Procurement Guidelines.
FET is committed to implementing sustainablesupply chain management in accordance withthese guidelines.

05

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Reformulated theSupply Chain Sustainable Management Policy

02

Social Inclusion
CH4 Social
Inclusion

In response to the Institute ofSupply Management's (ISM) focus
on sustainable management andglobal trends, FET has revised its
Supply Chain Sustainable
Management Policy. The policy
has been personally signed by theGeneral Manager.

Sustainable
Supply Chain
Performance

Appendix
Appendix

Launched Supply Chain Carbon Footprint Verification

04
2

Organized Circular Economy Workshops

03
1

2022

In 2022, FET organized the "Circular Economy
Workshop" as part of its implementation of
the circular economy concept. The workshop
focused on the four categories 1 of products
purchased by FET, and invited colleagues from
FET as well as upstream and downstream
manufacturers to participate in the discussion.
The collaboration for circular economy recyclingof network equipment was successfully
concluded in the fourth quarter of 2022.

We will adopt the accounting principlesof the GHG protocol and utilize EEIO
tools to estimate carbon emissions in
our supply chain. This estimation will
be based on purchases made from our
top 100 suppliers in 2021, which
account for approximately 94% of our
total annual purchases.

FET conducted a startup briefing to introduce carbon
footprint verification, focusing on Apple Inc. and the
top 40 suppliers, which are estimated to contribute to
94% of the total carbon emissions in the supply chain.
The implementation of supply chain carbon footprint
verification is scheduled for 2023. Initially, suppliers
involved in system integration and engineering
construction underwent carbon footprint verification 2.

Result:System Integration

Engineering Construction

Procurement of Goods 85%
Other Energy Activities 5%
Fugitive Emissions 1%
Purchased Electricity 6%
Employee Attendance 2%
Employee Travel 1%

Mobile Combustion Source47%
Fugitive Emissions 6%
Purchased Electricity 21%
Employee Attendance 2%
Goods Transportation 3%
Waste Management 1%
Other Energy Activities 20%

The four categories are network equipment, facilities management equipment, information equipment, and mobile devices.

Far Eastone Sustainability Report823.4.2 FET Supply Chain Management Policy

About FET
About
FET

In 2022, FET became the first telecommunications industry player in Taiwan to obtain third-party verification of ISO 20400 "Sustainable Procurement Guidelines." FET has since
implemented sustainable supply chain management in accordance with these guidelines. FET has developed four strategic directions and aligned its goals accordingly. In order to adhere to
the global trend of sustainable management and in accordance with the sustainable guiding principles of the Institute of Supply Management (ISM), FET has updated the "FET Supply Chain
Sustainable Management Policy " to further extend its impact to critical suppliers and other primary suppliers. To enhance the sustainable management of our procurement supply chain,
FET has set annual assessment targets for our colleagues. These targets are tied to our incentive system. In 2022, we invited external consultants to provide 7 internal sustainable education
training courses for our colleagues. These courses covered topics such as circular economy, ISO 20400, ISO 14064-1, SBTi supply chain carbon footprint verification, TCFD, and biodiversity.
The total training hours amounted to 221.5 hours, allowing us to strengthen the sustainable empowerment of our internal procurement personnel.

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Course Name

Year

Date

Course
Hours

Number ofParticipants

Total Training
Hours

ISO 20400 Introduction and Stakeholder
Identification Training

2021

2021/12/29

2

5

10

SBTi Science-Based Carbon Reduction
Scope 3 Supply Chain Carbon Inventory

2022

2022/5/24

3

3

9

Sustainable Manager Training

2022

10-day course

80

1

80

TCFD Training

2022

2022/7/25

1.5

1

1.5

FET Circular Economy Workshop

2022

2022/8/5

9436

Annual Supplier Conference

2022

2022/10/31

15

3

45

Telecommunications Industry Biodiversity
Workshop2023

2023/3/22

5

8

40

Four Policies for Sustainable Supply Chain Management

Social Inclusion
CH4 Social
Inclusion

Formulated in accordance with the 11 guiding "Principles of Sustainability and Social Responsibility" established by theInstitute for Supply Management (ISM). These principles encompass anti-corruption, diversity and inclusion, environment,
ethics and business conduct, financial integrity, global citizenship, health and safety, human rights, labor rights, supply
chain sustainability, and transparency.

Appendix
Appendix

According to the ISO20400 Sustainable Procurement Guideline, further enhance supply chain management in order toenhance supply chain market performance indicators such as quality, cost, delivery, and service performance (QCDS) as
well as ESG performance. Additionally, collaboration with suppliers should be prioritized to establish a robust andhigh-quality supply chain.
Actively address climate change and global net zero issues by guiding and assisting our supply chain in implementing tasks to
reduce and neutralize carbon inventory; collaborate with suppliers to collectively work towards achieving the net zero goal.

Collaborate with the supply chain to leverage our core capabilities, address Taiwan's sustainable risks, meet stakeholders'
expectations, and fulfill our corporate citizenship responsibilities.

2022

ISO 20400 certification

Supply Chain TypeFET defines suppliers who have had transactions for two
consecutive years as its effective suppliers. In 2022, there werea total of 696 effective suppliers. Specifically, the procurement
costs for handsets and ICT account for approximately 91.57%
of all FET procurements. Among these, the largest number ofsuppliers are in the ICT category, making up 67.7% of all FET
suppliers. FET has implemented a "Prefer Vendor" mechanism
for its ICT-related business and has established key performanceindicators (KPIs) for the use of preferred vendors. This has
resulted in an increase in the number of collaborations withhigh-quality vendors and a reduction in operational risks. In
2022, the procurement amount from preferred vendors reached76%, surpassing the KPI target of 73% (compared to a KPI of
72% in 2021).

Far Eastone Sustainability Report83Procurement Expenditure
Percentage

Distribution of the
Number of Suppliers

Handsets

58.86%

1.70%

Information and Communications Technology (ICT)32.71%

67.70%

Suppliers

About FET
About
FET
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Message from
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Management

Construction

7.02%

14.50%

Sales and Marketing(Media/Non-Media)

0.94%

10.20%

General Administration

0.47%

5.90%

Total

100%

100%

Local and Green Procurement

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

In addition to promoting local economic development by encouraging foreigncompanies to establish offices in Taiwan, FET is also dedicated to supporting the
local industry. In 2022, FET's purchases from local companies in Taiwan accounted
for 99.71% of the total purchase expenditure, after deducting orders from overseas
companies and foreign brands. To further support FET's "Environmental and Social
Friendly Program" and promote a sustainable supply chain, FET encourages all
suppliers and their respective supply chains to adhere to the green procurement
regulations when making procurement decisions. When considering procurement
bids, the Procurement Department also consults the Energy Saving Team for anassessment of energy efficiency. Additionally, energy-saving specifications areincluded as an open bid item. A monitoring mechanism is also established for allorders. In 2022, the total purchase amount of FET decreased by 3.7% compared to2021. However, FET's green procurement amount was 6.4% higher than in 2021,
demonstrating a commitment to sustainable procurement.
FET Green Procurement
2019
2020
2021
2022
Note.

FET has implemented its "Supply Chain Management Policy" as the foundation for suppliermanagement. Additionally, the introduction of the"Supplier Code of Conduct" ensures that
economic, social, and governance requirements are encompassed in supplier standards. Suppliers
are obligated to sign the "FET Supply Chain ESG Sustainable Operation Self Declaration" and the"Integrity Management Agreement," which include punitive penalties. Furthermore, starting from2023, FET has incorporated suppliers' ESG performance into the supplier selection criteria,
accounting for 10%.
All active suppliers are required to annually complete the online signing of the "Integrity
Management Agreement" in order to enhance management. Failure to sign will result in theinability to utilize system functions for order reception and payment requests. Active suppliers must
renew their contracts every 365 days to ensure their ongoing commitment to integrity management.
New suppliers must complete the "ESG Quantitative Evaluation Form," and the FET Credit
Management Office will assess their third-party credit reports. Since 2021, we have implemented anine-level credit evaluation system. Suppliers with a credit evaluation between levels 8 and 9 will not
be eligible to become FET suppliers. All FET procurement contracts explicitly state that vendors must
adhere to relevant regional, environmental, and labor safety and health laws and regulations.
Construction suppliers must sign the "Contractors Occupational Safety and Health and Environment
Commitment," the "Declaration on Announcement of Contractors Worksite Environmental
Hazards," and carefully review the "Occupational Safety and Health Management Implementation
Points for Contractors." Additionally, suppliers must fulfill relevant management and hazard
prevention responsibilities in accordance with the "Regulations for Occupational Safety and HealthOrganization Management and Self-Check" to ensure the safety and health of workers and prevent
occupational hazards. In addition to regularly assessing suppliers to ensure their compliance with theaforementioned regulations, FET also suspends the accounts of suppliers who have not conducted
any transactions with the company for three years or more. This is done to ensure that the
information regarding suppliers' creditworthiness and corporate social responsibility remains current.
FET Supply Chain ESG Sustainable Operation Self Declaration

307,070,034
328,138,665
479,882,267
510,703,672

The statistical period for green procurement amounts is from September to August of
the following year. In 2022, this period was from September 1, 2021, to August 31, 2022.

2022

3.4.3 Sustainable Supply Chain Management Standards

FET mandates that all suppliers must sign the Integrity Management Agreement and the ESG
Self Declaration within a specified timeframe. In 2022, the signing rate for new suppliers reached100% (a total of 216), with a 100% signing rate for first-tier critical suppliers as well (a totalof 72). Out of the top 200 suppliers, 197 have signed the Corporate Social Responsibility Self
Declaration, resulting in a response rate of 98.5%. This exceeds the annual target of 95% andaccounts for 96.6% of the total annual procurement amount.
Type of Supplier

Total Numberof Suppliers

Total Numberof Signings

Signage% of Annual
Ratio
Procurement Amount

Active Suppliers

1,065

837

78.59%

98.81%First-tier Critical Suppliers

72

72

100%

89.33%Far Eastone Sustainability Report843.4.4 Sustainable Management Mechanisms and Processes

Registration Threshold Management

To enhance supplier management and intensify management efforts, FET has implemented
16 action plans across three areas: threshold management, general management, andcompliance management.
gem

ent

e m e nt

nag
ld

ho

t

Environmental Sustainability
CH3 Environmental
SustainabilityenSmart Sustainability
CH2 Smart
SustainabilityemCorporate Governance
CH1 Corporate
Governance

281 suppliers have not been traded with for three years
and have been put in forced suspension.
Evaluated 294 new suppliers, 33 failed quantitativeevaluations and have been put in forced suspension.
Among the suppliers that were forcibly suspended due
to failure to participate in the risk assessment, 15 havesince completed restoration.
Of suppliers that had been suspended due to high risk
and had not improved, 100% of them have since madeimprovements.
Among the suppliers that failed the annual performanceassessment, 3 of them have improved and 2 of them
have been suspended.

ce M anag

Highlights
2022 ESG Highlights

To ensure that suppliers follow the latest threshold
management and general management mechanisms,
timely consultation for improvement or suspension

2022 Supply Chain
Management
Strength andPerformanceMap li a nCompliance Management

R

C
om

Contents
Contents
Message from
Messagefrom Management
Management

eg

ul

a

rM

an
a

About FET
About
FET

Focus on selecting suitable partners based on ESG criteria.

R e g istr aTti o nhresSocial Inclusion
CH4 Social
Inclusion

New suppliers need to pass the 9-level credit evaluation of the credit department;
levels 8 and 9 will not be qualified.
Suppliers need to re-sign the Integrity Management Agreement every 365 days.
100% of the new suppliers signed the ESG Self Declaration (216 in total).
98.5% of the top 200 suppliers (96.6% of procurement amount) signed the ESG
Self Declaration (197 in total).
ESG quantitative evaluation of new suppliers, 294 suppliers were evaluated, 87% ofthem passed, and 3 suppliers that failed have made improvements.

Regular Management
Regular evaluation, performance appraisal, on-site audit,
training and investigation for cooperative suppliers.

Provided 3 supplier education training sessions: a total of 954 suppliers participatedSatisfaction Survey: 172 questionnaires were returned, and the satisfaction rate wasover 90%.
Annual Performance Assessment: 228 vendors in 12 categories were assessed andthe results were included in the ESG score with 30% weight.
ESG risk assessment was launched for bidding vendors for cases over NT$3 million,
with a total of 298 cases completed.
Third-party on-site audits of 30 suppliers, FET's independent on-site audits of 45
suppliers.
ESG Risk Assessment: 350 (93.7% of procurement amount), of which 14 found tobe high-risk have all made improvements.

Compliance Management

Appendix
Appendix

Registration Threshold Management

Regular Management

Regular Management

Regular Management

1 Supplier Screening

2 Risk Assessment, Audit and Improvement

3 Supplier Communication

4 Satisfaction Survey

Supplier screening is divided
into five categories: informationand communication, handsets,
construction, generaladministration, and sales andmarketing.
Use quantitative and qualitative
standards to identify first- andsecond-tier critical suppliers.

Annual routine supplier assessment is conducted on suppliers whose procurementtransactions with FET are valued at top 95%.
Conduct ESG on-site audits for all first-tier critical suppliers, including FET's
independent on-site audits and third-party audits.
When any deficiency is found during the assessment or audit process, the supplier isrequired to make necessary improvements within a fixed period, and guidance will be
provided when necessary.
Conduct supplier ESG screening for all RFP bids stipulated in the SOP. Those who failto meet the standards must make improvements, and those who do not improve are
not allowed to participate in the bids.

Annual Supplier General Meeting tocommunicate important issues and recognize
outstanding ESG performance suppliers.
Form "Sustainability Pioneer Team",collaborate with suppliers to execute ESG
projects.
Gradually complete circular economy
operations with life cycle assessment (LCA) for
each category of purchased commodities.

Conduct suppliersatisfaction surveys as
the basis for supply chain
management optimization.

2022

Far Eastone Sustainability Report85Step 1: Supplier Screening Criteria

About FET
About
FET
Contents
Contents

In 2022, FET's total procurement expenditure amounted to NT$37.66
billion, representing 33.8% of the overall expenditure. The number ofactive suppliers reached 1065. The top 100 suppliers accounted for
93.7% of FET's annual procurement amount. FET has categorized supplierprocurement into five distinct categories: information and communication,
handsets, construction, general administration, and sales and marketing.
FET has identified a total of 72 primary critical suppliers based on bothquantitative and qualitative criteria. Additionally, 40 secondary criticalsuppliers have been selected through questionnaire surveys to further
enhance supplier management.

Message from
Messagefrom Management
Management

FET Critical Supplier Screening Criteria

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
GovernanceFirst-tierCriticalSuppliers

Quantitative
Screening
Criteria

Smart Sustainability
CH2 Smart
Sustainability

ICT, construction, and sales and marketing: Twoconsecutive years of transactions totaling morethan NT$50 million.
Handsets: Total amount exceeds NT$100 million
in two years.
General administration: Total amount exceeds
NT$20 million in two years. (The original threshold
was NT$50 million, and the threshold was
lowered in order to expand the management levelof general administration suppliers.)

Appendix
Appendix

Step 2 Risk Assessment, Audit and Improvement
Supplier Sustainability Risk Assessment

In 2022, FET conducted an ESG risk assessment for all new suppliers,
evaluating a total of 294 suppliers. Out of these, 37 suppliers weredisqualified for failing to meet the 60-point threshold. Among thedisqualified suppliers, 4 have successfully made the necessary improvements
by the end of March 2023. The remaining 33 suppliers who have not
improved have been suspended and are unable to conduct transactions with
FET until they complete the required improvements.

2022

Analysis Results of Supplier Sustainability Review
In 2022, the scope of the review
was expanded, with nearly 50
suppliers undergoing evaluation.
Some suppliers participated in
the assessment for the first time,
resulting in a marginal decreasein the overall average scores forthe year 2022.

2.53

2.71

2.46

1.71 1.72

Score

1.66

2.68

2.49

High-Risk Vendor Analysis Results

2020

2.27

2.41

2021

2.35

Environment

2021

1.55 1.55 1.49

GovernanceSocietyOver the past two years, emerging risks have continuously occurred,
Number of Risk Assessment
coupled with significant changes in the economic and trade environment, which could pose challenges to companies with immature
corporate governance and supply chain management. Through analysis,
300
300
it has been found that most high-risk vendors are still in the traditional
QCDS (Quality, Cost, Delivery, and Service) management stage, leading
11
to higher vulnerability in their 'Sustainable Supply Chain Management'.
3.67%
9
In recent years, there has been a higher level of attention on social
3.33%
issues, with a particular emphasis on human rights and labor concerns
compared to previous years. As a result, some vendors that may have1
met improvement thresholds in the past are now being re-evaluated00
0
due to increased scrutiny on these issues.

2020

2022

2.48

SocialQualitative
Screening
Criteria

Whether the directly related products provided are
exclusive, with limited qualifications, bound with
important equipment, and the cost of replacing
the brand is too high.

Secondtier
CriticalSuppliers

The ESG assessment period was from 8/1/2021 to 7/31/2022.

Labor rights

Distribute questionnaires to first-tier criticalsuppliers and screen their upstream suppliers
according to qualitative standards.

Note.

Environmental

Social Inclusion
CH4 Social
Inclusion

Screening
MethodFET has implemented the ESG risk assessment and selection system for vendors participating in bidding
processes Note. The system is now fully operational for significant bidding cases exceeding NT$3 million, in
accordance with the SOP specifications. In 2022, a total of 298 cases were completed, representing 62.14%of the annual procurement amount (excluding the exclusive U.S. Apple procurement amount).

Supplier Mgmt

Irreplaceability, high replacement cost, limited
qualifications, exclusive supply, equipment binding

In 2022, a total of 14 high-risk vendors were identified. The main risks were related to confidentiality
agreements, intellectual property protection, and labor rights. These risks included 1 vendor in the sales andmarketing category, 3 vendors in the handset category, and 10 vendors in the information and communication
integration category. FET has developed improvement plans for high-risk vendors and has requested thatthey make necessary improvements. As of January 2023, all suppliers have submitted their improvements,
which have been verified by FET and third-party consultants to have achieved the expected progress. The
improvement rate stands at 100%.FET will also ensure that all suppliers with high-risk profiles undergo areview in 2023 to verify significant improvements.

Governance

Environmental Sustainability
CH3 Environmental
Sustainability

Qualitative
Screening
Criteria

To enhance evaluation and identification efforts, FET has developed a sustainability self-assessment
questionnaire in collaboration with Deloitte Taiwan, a third-party consultant. The questionnaire covers five
key management aspects: sustainable governance, supplier management, environmental management,labor rights, and social impact. Over the years, the number of evaluation index items has increased, reaching
28 indicators in 2022. Each indicator consists of 3-6 sub-questions, resulting in a total of 108 questions for
supplier sustainability risk assessment. Additionally, suppliers are required to submit supporting documents,
which are reviewed by the third-party consultants to verify data credibility. In 2022, a total of 350 assessments
were conducted, representing 93.7% of the annual procurement amount from the evaluated suppliers.

Rate of Change
350

4%
9
5
0

2022

Far Eastone Sustainability Report86Supplier ESG On-site Audit
On-site Audit
63

About FET
About
FET

69

74

75

78

40

Note.

Contents
Contents
2018

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

2019

2020

2021

2022

2022

FET primarily conducts on-site audits for its main suppliers at the first-tier level. However, the number of on-site audits for important suppliers or second-tier criticalsuppliers will be increased annually to expand the scope of ESG audits in the supply chain. The statistics are the total number of unduplicated cases between FET's
own audits and third-party audits.

Supplier Annual Performance Assessment Results

FET conducts annual routine supplier assessments and audits. The 2022
assessment of supply chain performance followed the same 12 major suppliercategories as in 2021. However, the number of suppliers evaluated increased to228, while the total procurement amount remained at 95%. The ESG weighting
is also included in the evaluation, and the previous weighting of 25% is increased
to 30% to reinforce the importance of ESG. Suppliers that score 5% lower
than the previous year and below 70 points on the annual assessment will beidentified as needing priority guidance. They must implement an improvement
plan and undergo a second assessment. One unqualified supplier has beensuspended and listed as non-tradable. The assessment results were published at
the external procurement system website and supplier general meeting.

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Since 2016, FET has conducted an annual on-site ESG audit, primarily focusing on first-tier critical suppliers. Additionally, important suppliers or
second-tier critical suppliers are included in the audit based on the specific requirements of each year. This approach aims to broaden the scope of
ESG verification within the supply chain and ensure that suppliers are effectively implementing their commitments to sustainable development intheir day-to-day activities. The inspection methods include independent audits by FET and third-party expert audits. In response to the impact of
COVID-19, a total of 75 audits were completed in 2022. 30 third-party audits were completed, and 45 independent audits were completed by FET.
Regarding FET's independent audits, the same criteria as the annual risk assessment were employed to enhance the assessment's consistency. Overthe years, the audited suppliers' ESG sustainability scores have shown a gradual improvement through on-site audits. In 2021, the average score
was 65.1, while in 2022, it increased to 69.1. These results demonstrate FET's successful implementation of sustainable supply chain management.

Company
Supplier Assessment
ResultArcoa assesses suppliers on quality, cost, delivery, and service on an annual basis. The assessment
list is chosen based on criteria such as transaction amount, transaction frequency, and importance inthe previous year. The representative of the assessment unit will evaluate the overall performance ofthe suppliers during the evaluation period using the scoring items. Arcoa will increase procurement
volume with suppliers who have excellent scores and develop long-term partnerships. In light of poor
supplier performance, improvement plans are proposed and should be implemented accordingly.
Unqualified vendors will be eliminated. In 2022, Arcoa successfully assessed 55 suppliers using
our online supplier assessment system. These assessments accounted for 87% of Arcoa's total
procurement expenditure, and we achieved a 100% survey recovery rate. The evaluation results for2022 are as follows: There were no C-level suppliers that needed improvement, but there was one
supplier that was deemed unqualified at the D-level.

FET Telecom

Arcoa

Number of suppliers in

Measures adopted

Number of
suppliers in 2022

Measures adopted

2019

2020

2021

2022

Outstanding suppliers(90-100 points)

4

12

8

5

Awarded by FET President at the Supplier General Meeting

4

Increase procurement volume and develop longterm partnership

Qualified suppliers(70-89 points)

159

164

187

218

Resume normal procurement transactions

50

Resume normal procurement transactions

Suppliers in need of
improvement (60-69 points)

5

6

4

3

The need for improvement has been communicated andimprovement plan has been drafted; second assessment
has been planned

0

Improvements will be required for deficiencies,
and a secondary assessment will be given within
six months

Unqualified suppliers(59 points or less)

1

2

1

2

Supplier has been suspended due to inability to meet
quality, delivery schedule, and service standards during
project execution period1Disqualified, and Arcoa will seek for potential
substitute

Total

169

184

200

228

2022

55

Far Eastone Sustainability Report87Step 3: Supplier Communication
Annual Supplier General Meeting

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

The CEO, Ms. Chee Ching, chaired
the 2022 Supplier General Meeting.
In order to address the COVID-19
p an d emi c an d mi n i mi ze i n -p erso ninteractions, a combination of aphysical award ceremony and an
online conference was implemented.
A total of 24 representatives from 15
suppliers attended the awards ceremony,with an additional 137 participantsjoining online. In addition to providing
integrity management training and promoting occupational safety and health, wehave also announced the results of the 2022 supplier risk assessment conducted bythird-party consultants. Our expert consultants have further recommended sustainabletransformation and shared insights on international net-zero and carbon emission trends.
During the event, CEO Ms. Chee Ching presented awards to 15 suppliers. These awards
included 5 "CSR Sustainability Assessment - Excellent Manufacturer Sustainability ModelAward," 3 "CSR Sustainability Assessment - Sustainable Improvement Award," 5 "Annual
Performance Assessment - Excellent Supplier Award," and 3 "Annual Performance
Assessment - Achievement Improvement Award."
Sustainability Pioneer TeamIn 2020 and 2021, there was an ongoingemphasis on rural education. Beginning in
2022, FET has launched a project named"Careful Food, Sending Warmth andSpreading Love" to provide assistance tounderprivileged ethnic groups in Hualien,
eastern Taiwan. FET has collaborated
with 22 supply chain manufacturers todevelop refrigeration equipment for foodbanks. This equipment will facilitate thetransportation of fresh supplies from
Taipei to Hualien Station for freezing, benefiting the indigenous communities, churches,
schools, associations, and other institutions in the Hualien-Taitung region. The Hualien
Food Bank can store and freeze the agricultural products and homemade food fromthe indigenous communities in eastern Taiwan. These items can then be shipped to
Taipei for consignment, providing support to indigenous farmers. This public welfare
activity was carried out in accordance with the United Nations SDGs "No Poverty", "Zero2022

Hunger", "Good Health and Well-Being", and "Industry, Innovation and Infrastructure".
In collaboration with the Sustainability Pioneer Team, FET will persist in utilizing the 17
Sustainable Development Goals (SDGs) as a guiding principle to support Taiwan's rural
areas and marginalized communities.
Circular Economy Cooperation Program

FET collaborates with Ericsson, a prominent supplier, on a circular economy initiative for
network equipment. In 2022, we successfully executed the inaugural circular economy
contract for radio frequency network equipment in Taiwan. This contract involved therecycling of base station equipment and lead-acid batteries, as well as the cleaning,dismantling, and categorization of outdated base stations into electronic materials. As aresult, we achieved an impressive recycling rate of 98%, surpassing the European Union
Waste Electrical and Electronic Equipment Directive's recommended recycling standard of
80%. This exemplifies our commitment to implementing circular economy practices.
Supplier Education and Training

To improve sustainability awareness and knowledge among our partners in the supply
chain, FET utilizes the Supply Chain e-Learning Platform to provide supplier training. In
2022, we conducted two e-Learning sessions for our supply chain. These sessions included
supplier sustainable ESG e-Learning, which had a total of 223 participants completingthe course, and ISO 20400 Sustainable Procurement-Guidance online training, which
had a total of 594 participants completing the course. In the ISO 20400 education andtraining, we communicated with our supply chain partners regarding the management
actions implemented by FET's sustainable supply chain. These actions include integrity
management, ESG risk assessment, supply chain carbon footprint verification, andmore. We have adopted a progressive management approach, encompassing threshold
management, general management, and compliance management. We expect our supply
chain partners to remain committed to sustainable operations.
Number of suppliers receiving CSR training

954
875

e-Learning Platform
Supplier General Meeting

673

Total

431
435

817

690
555
452

220
215

242

185
103Note

2018
Note.

2019

2020

2021

137

2022

Reduced attendance density in 2020 due to COVID-19.

Far Eastone Sustainability Report88Step4：Satisfaction Survey

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

FET Telecom

Arcoa

FET conducts an annual anonymous satisfaction survey for suppliers. In 2022, we continued to send satisfaction surveys
to 300 major manufacturers. A total of 172 valid questionnaires were collected. Over 95.3% of respondents expressedsatisfaction with the supplier screening policy and processes, while over 97.6% were satisfied with the fairness in supplierselection. Additionally, more than 94.6% reported being satisfied with their overall transaction experience with FET. This
questionnaire also addressed the issue of a sustainable environment in the supply chain. The primary focus of the supply
chain was on energy conservation and carbon reduction, as well as the development of methods related to environmental
energy conservation. The greenhouse gas inventory was also included in these efforts. In 2023, the Procurement Department
will conduct greenhouse gas inventory audits for approximately 40 key suppliers. With the support of FET, we aim toestablish a sustainable and robust supply chain based on five key pillars.

Arcoa's procurement satisfaction surveys utilize an
open-ended response method. This allows for thecollection of interactions between Arcoa's procuring
units and suppliers or purchasing tasks. The purposeof this collection is to promptly identify any problems
and make immediate improvements. Opinions andfeedback were collected on 107 procurement cases
involving 58 suppliers in 2022, and no significant
negative impacts were identified.

3.4.5 Future Outlook
In 2023, the FET Procurement Department will focus on enhancing sustainable management practices and accomplishing the following tasks:

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Carbon Footprint Verification
towards Net ZeroSupplier Sustainability Risk Assessment

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Five majoraxes

Appendix
Appendix
SME Sustainable
Development AssistanceCompleting circular economy operations
with Life Cycle Assessment (LCA)

2022

1

Supply chain on-site carbon footprint verification, estimated 40 suppliers

2

Continue to deepen circular economy actions (information/facilities and equipment)

3

Assisting the Company in the development of renewable energy sources

4

Conduct ISO 20400 for supply chain market resilience analysis and coaching for improvements facilities suppliers

5

Auxiliary development of the Supply Chain Carbon Footprint Verification Platform

6

FET Supply Chain SME Sustainable Development Seminar

Biodiversity

7

FET Supply Chain Biodiversity Workshop
FET has established clear biodiversity targets for 2023 and has invited the Biodiversity Research Center of
Academia Sinica to host the first seminar on biodiversity in the telecommunications sector in Taiwan. The
purpose of this seminar is to examine the effects of FET's base station construction and supply chain
operations on biodiversity. In addition to the guidance of 7 experts and scholars from the Academia
Sinica, over 30 colleagues from FET and more than 300 physical and online suppliers came together todiscuss the protection of Taiwan's biodiversity. They will commence cooperation on Taiwan's biodiversity
conservation plan in 2023. In addition, FET has set a goal of 80% of the top 100 suppliers signing the"Biodiversity Commitment" by 2023.

Far Eastone Sustainability Report893.5 Base Station and Electromagnetic Fields Management
Base Station Management Regulations

About FET
About
FET
Contents
Contents

In addition to complying with regulations set by the competent authority for base station and antenna installation, FET also aims to minimize the number of antennas required by utilizing
shared structures, stations, and antennas. This approach reduces resource consumption and minimizes visual impact on the public. We also actively enhance the landscape around thebase station antennas, so that the antenna can be integrated into the landscape of the regional environment. In 2022, 60% of FET's base stations were shared stations 1, 21% were shared
structures 2, and 19% were independent stations. In 2022, the total amount of fines related to the installation of base stations was NT$0.9 million, a total of 3 cases, an increase of 1 fromthe previous year, and the amount of fines increased by NT$0.9 million. Violations were mostly attributable to the urgency of customer coverage requirements, resulting in stations being
activated while still in the process of applying for an operational license. FET has already continued to strengthen communications with customers and negotiations with NCC to shorten thelicense application process, thus reducing the number of stations being activated before approval and related fines.
1.

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

2.

Shared location refers to the practice of multiple mobile service operators establishing base stations in a single building, location, or construction site.
Shared construction refers to the practice of multiple mobile service operators utilizing a common infrastructure, such as antennas, baseband equipment, or radio frequency equipment, to establish their respective
base stations.

Tracking Electromagnetic Radiation Issues and Services

FET remains an active participant in the Base Station Work Group, which was established by the Taiwan Telecommunications Industry Development Association (TTIDA). This group includes
members from the NCC and other telecom operators. FET is committed to promoting and educating the public about the concept of base station electromagnetic waves. To address
public concerns regarding the health and safety of these waves, FET offers electromagnetic wave home measurement services. In 2022, FET successfully resolved 223 cases of base station
protests and conducted over 82 public advocacy and educational sessions on electromagnetic waves (including 2 sessions organized by TTIDA). Additionally, FET provided electromagnetic
field measurement services, with associated expenses totaling NT$402,600. All test results complied with the Equivalent Isotopically Radiated Power (EIRP) and electric wave power density
standards specified by the NCC in the mobile broadband base station verification technical regulations. FET continues to utilize 5G station construction to consolidate 4G antennas or
introduce multi-band antennas, thereby reducing the number of antennas used in base stations and alleviating public concerns about electromagnetic wave emissions. In areas with highsensitivity, FET deploys new small-size antennas or high-performance antennas, combined with beautification projects, to overcome the limitations of antenna engineering space andminimize visual impact on the public. In 2022, a total of 964 base station antenna integration projects were implemented, with a total cost of about NT$29.5 million.
2022 Main Types of Questions Received
by the Electromagnetic Fields Advice Service

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Main types ofquestions received

Number of Measuring Services forBase Stations Accepted over the Years

Number of Media Coverage on
Base Station Issues over the Years

Percentage

Main problem

Measurement type

2019

2020

2021

2022

News type

2019

2020

2021

2022

Health concerns

55%Standard values ofelectromagnetic fields andtheir likelihood of healthimpacts

FET TTIDA
measurement cases

66

58

51

48

Positive news

57

49

45

54

Legality

14%

Base station legal standards(legality or building process
and related laws)

FET's own
measurement cases

12

9

7

11

Negative news

21

17

12

15

2022

Far Eastone Sustainability Report90About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
AppendixSocial Inclusion
CHAPTER 4

4.1 Human Resource Management

4.6 Industry Infrastructure

4.2 Talent Development

4.7 Charity Care Projects

4.3 Human Rights Management
4.4 Employee Care and Communication
4.5 Employee Health and Workplace Safety2022

Far Eastone Sustainability Report914.1 Human Resource Management
4.1.1 Employee Structure Overview
About FET
About
FET
Contents
Contents

In regards to the workforce composition at FET, the male employees slightly outnumber the female employees, with males comprising 50.05% and females comprising 49.95%. Among thesenior management positions (assistant managers, managers, and above), females make up 34% of the total.。97.92% of FET's workforce consists of domestic citizens who hold indefinite
contracts. In anticipation of the forthcoming 5G era, FET remains committed to recruiting fresh technical talent and making necessary adjustments to our HR structure. As of 2022, ourtotal employee count stood at 5,737 individuals, representing a slight decrease of 3.32% compared to the previous year. Additionally, we employed 130 non-employee workers who wereinvolved in project engineering, administrative, and logistics-related tasks, marking a slight decrease of 2.99% from the previous year. The Company's employee count is determined by the
total number of employees at year-end.
Number of Employees by Type of Contract in 2022 Note

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Indefinite
Contract

Appendix
Appendix

FET Telecom

Arcoa

Male

2,661

132

Female2,591

234

Others

0

0

5,252

366

Number of Employeeswith Indefinite Contract

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Number of Employees by Type of Employment in 2022

Differentiated by Type of Contract

FET Telecom

Arcoa

Male

2,722

132

Female2,618

235

Others00

Number of Full Time Employees

5,340

367

Male

19

0

Female110Full Time Employees

Part-Time Employees

Male

80

0

Others00

Female38

1

Number of Part-Time Employees

30

0Others

0

0

Male

0

0

Female00Number of Employeeswith Temporary Contract118

1

Others

0

0

Total

5,370

367

Number of Employees without Guaranteed
Hours

0

0

Total

5,370

367

TemporaryContract

Definitions: Indefinite Contract: Employment contract with non-fixed term (indefinite contract).
Temporary Contract: Employment contract with fixed term (fixed-term contract).

Employees without
Guaranteed Hours Note

Definitions: Full-time employees: Employees who work the number of hours required by local regulations
to be considered full-time.
Part-time employees: Part-time employees whose weekly working hours fall below theminimum threshold set by local regulations for full-time employees.
Employees without guaranteed hours: Employees with variable working hours.
Note.
All employees work in Taiwan.

2022

Far Eastone Sustainability Report92Average Employee Age and Seniority
Male

FemaleMale

Average Age

Total

FemaleAverage Seniority (years)

Total

About FET
About
FET
Contents
Contents
Message from
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Management
Highlights
2022 ESG Highlights

FET Telecom

42.18

39.90

41.06

FET Telecom

11.48

11.57

11.52

Arcoa

41

38

39

Arcoa

7.3

8.2

7.9

Indicators of Diversity
FET is committed to fostering a diverse, inclusive, and gender-equal workplace. We provide equal opportunities for recruitment and career advancement for all genders, with the aim ofhaving female supervisors make up at least 30% of our total supervisor workforce .Compensation, bonuses, and promotions for employees are solely based on individual competencies andperformance, and are not influenced by factors such as nationality, ethnicity, age, gender, marital status, sexual orientation, physical or mental conditions, beliefs, or political affiliation. FET
has additionally implemented a Sexual Harassment Complaints Committee and a complaint procedure, which incorporates employee complaint mailboxes. Throughout 2022, neither FET
nor Arcoa received any reports of sexual harassment.

Corporate Governance
CH1 Corporate
GovernanceAge and Gender of Employees by Levels of Positions (FET Telecom)
Total

Male

FemaleSmart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

General
EmployeePrimary
Supervisor

Mid-Level
Supervisor

SeniorExecutive

All Employees

2022

4,878

140

306

46

5,370

49.38%

71.43%

66.67%

60.87%

51.04%

50.62%

28.57%

33.33%

39.13%

48.96%

Age

Age Ratio

Under 30 years old

13.61%

30-50 years old

73.41%

Over 50 years old

12.98%

Under 30 years old

0.00%

30-50 years old

57.14%

Over 50 years old

42.86%

Under 30 years old

0.00%

30-50 years old

46.73%

Over 50 years old

53.27%

Under 30 years old

0.00%

Age and Gender of Employees by Levels of Positions (Arcoa)
Total
General
EmployeePrimary
Supervisor

Mid-Level
Supervisor

SeniorExecutive

308

55

4

32.47%

50.91%

100.00%67.53%

49.09%-

Percentage

Under 30 years old

18.83%

30-50 years old

74.35%

Over 50 years old

6.82%

Under 30 years old-

30-50 years old

70.91%

Over 50 years old

29.09%

Under 30 years old-

30-50 years old

25.00%

Over 50 years old

75.00%

Under 30 years old-

30-50 years old-

Over 50 years old

89.13%

Over 50 years old-

Under 30 years old

12.37%

Under 30 years old

15.80%

30-50 years old

70.93%

30-50 years old

73.30%

Over 50 years old

16.70%

Over 50 years old

10.90%

35.97%-

Age

10.87%

367-

Female30-50 years old

All Employees

-

Male

64.03%Far Eastone Sustainability Report93Other Indicators for Employee Diversity (FET Telecom)

About FET
About
FET
Ethnicity / Nationality

族群

Total

Ratio

Management Level Total

Ratio

Foreign Employee

8

0.15%

0

0.00%

Local Employee – Indigenous

33

0.61%

0

0.00%

Local Employee – Chinese

5,329

99.24%

492

100.00%

Disabled Employee Note

38

0.71%

1

0.02%

Contents
Contents
Message from
Messagefrom Management
Management
Physical and Mental
Condition

Highlights
2022 ESG Highlights
Note.

Corporate Governance
CH1 Corporate
GovernanceThe current count of employees with physical and mental disabilities stands at 38. As per regulations, individuals with severe and higher disabilities are considered as two employees each. Consequently, theweighted count amounts to 56, in full compliance with the regulations.

Other Indicators for Employee Diversity (FET Telecom)

Percentage of Total Employees

Women in the overall workforce

48.96%

Women in STEM-related positions

28.42%

Woman in junior management positions

33.16%

Women in management (assistant manager, manager, and director level) positions

32.34%

Women in revenue-generating functions (assistant manager, manager, and director level)

45.37%

Women in senior management (vice president level) positions

33.33%

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report944.1.2 Employee Salary and Welfare

About FET
About
FET
Contents
Contents

FET firmly believes that offering employees equitable and competitive compensation packages and welfare
benefits is crucial for talent retention in the materials and energy sectors. In regards to the compensation system,
the initial salary is equal for both male and female employees across all levels. All positions, including nonemployee workers, receive wages that exceed the government-mandated minimum wage, while ensuring abalanced average salary between male and female employees in all roles. FET also offers its employees annual
bonuses, performance bonuses, sales bonuses, and special incentives as a means of recognizing outstanding
performance and fostering a culture of high achievement within the company.
Note.

FET Telecom

15.61%

Arcoa

13.3%
0

Basic salary effective January 1, 2022 was NT $25,250.

5

10

15

20

Non-management 1 Employees’Salaries - FET Telecom

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Basic-level employees paid above the legal minimum wage Note

1

Item

Unit

2021

2022

Annual Difference

Number of non-management full time
employees Note

Total

5,133

4,995

-2.69%

Total salary of non-management fulltime employees

NT$ Thousand

4,940,108

4,969,167

0.59%

Average salary of non-management fulltime employees

NT$ Thousand

962

995

3.43%

Median salary of non-management fulltime employees

NT$ Thousand

837

872

4.18%

Number of non-management full-time employees can be calculated by subtracting the number of employees in management positions and the number of employees working part-time hours from the total
number of employees employed for more than six months in the current year. Additionally, a weighted average of the number of days served should be conducted.

Non-management 2 Employees Salaries - Arcoa

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2.

Item

Unit

2021

2022

Annual Difference

Number of non-management full time
employees Note

Total

315

308

-2.22%

Total salary of non-management fulltime employees

NT$ Thousand

200,569

209,172

4.29%

Average salary of non-management fulltime employees

NT$ Thousand

637

679

6.66%

Median salary of non-management fulltime employees

NT$ Thousand

605

632

4.61%

Non-management refer to those who are not disclosed in the annual report as supervisors

2022

Far Eastone Sustainability Report95Average Salary by General Employees and Management
FET Telecom

Arcoa
Male

FemaleMale

FemaleBasic Salary：：

About FET
About
FET

Basic SalaryContents
Contents

General Employee

1

：

0.83

General Employee

1

：

0.85

Assistant Manager
or above

1

：

0.94

Assistant Manager
or above

1

：

0.86

Vice President
or above

1

：

1.07

Vice President
or above-：-

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

FET Telecom

Smart Sustainability
CH2 Smart
Sustainability

Arcoa
Male

FemaleBasic Salary and Bonus

Male

FemaleBasic Salary and Bonus：：

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

General Employee

1

：

0.84

General Employee

1

：

0.94

Assistant Manager
or above

1

：

0.94

Assistant Manager
or above

1

：

0.83

Vice President
or above

1

：

1.07

Vice President
or above-：-

Far Eastone Sustainability Report96Employee Welfare
In terms of welfare policy, aside from the mandatory statutory benefits, all employees are offered health check-up programs and cancer prevention screenings that surpass the legal
requirements. To foster a harmonious work environment that promotes work-life balance, the Company has implemented a range of diverse benefits. These include employee groupinsurance, which extends coverage to employees' children, as well as pension plans, mobile phone subsidies, and other welfare programs. Additionally, an Employee Welfare Committee
has been established to encourage social activities and organize employee outings.

About FET
About
FET
Contents
Contents

Item

Paid sick leave and paid
leave for volunteer services

Description

Employees are entitled to five days of paid sick leave annually, surpassing statutory requirements. Additionally, FET offers two days of paid volunteer leave per
year, aiming to promote employee engagement in public welfare initiatives.

Message from
Messagefrom Management
Management
Employee canteen

Employee canteens are accessible, allowing employees to conveniently order and pay for meals online.

Employee Stock
Ownership Trust

FET provides subsidies to its employees for the purchase of company shares, enabling colleagues to participate in the company's business performance andencouraging savings and investment. Currently, approximately 70% of colleagues have enrolled in the Employee Stock Ownership Trust.

Flexible work hours

There are four flexible working time slots available, allowing colleagues to choose the one that best suits their needs between 08:00 and 09:30.If members of awork team require a different start time, they may internally discuss the issue and submit a request for a modification to their work schedule.

Work from home

Employees have the opportunity to request remote work from home, up to a maximum of two days per week, based on job requirements and departmental
business needs. Applications for an extended duration may be submitted in cases of special or urgent requirements.

Maternity / Paternity leave
better than legal minimum

FET offers 60 days of maternity leave, as well as eight days of maternity checkup leave and eight days of paternity checkup and paternity leave, exceeding legal
requirements. Maternity leave pay is provided and does not contribute to sick leave entitlement.

Childbirth compensation

Parental leave is provided in compliance with legal requirements. Additionally, the Company offers a monthly subsidy of NT$2,000 for the "Mother-to-be
Nutritional Allowance" starting from the third month of pregnancy. In 2022, a total of 138 individuals applied for this benefit, amounting to a total disbursementof NT$1,994,000. In order to extend congratulations to colleagues on the birth of their child, male and female employees are eligible to apply for a childbirthsubsidy. The subsidy amount is NT$5,000 for the first child and NT$10,000 for the second child or twins. In 2022, a total of 149 applications were received,
resulting in a disbursement of NT$975,400.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report

97

Item

About FET
About
FET

Childcare program

Description
FET collaborates with local kindergartens and nurseries to offer after-school programs and childcare services for employees. This allows colleagues to conveniently
arrange these services and benefit from discounted fees. Additionally, a parent-child club is available, offering various activities such as art appreciation, parentchild DIY courses, and health promotion activities. Regular health seminars on breastfeeding and infant and baby health are provided to support female employeeswith babies. Furthermore, our offices are equipped with excellent breastfeeding rooms, which have received multiple certifications and awards from regional healthinstitutions.
The "Christmas Parent Visitation Day" has been held multiple times. The President has personally attended each event and enjoyed spending time with theemployees .Activities such as baby theater, magic shows, storytelling, fancy balloons, and parent-child racing will also be organized during the Parent Visitation Day.

Contents
Contents

Exercise and healthfacilities

FET places significant emphasis on maintaining a healthy work-life balance for its employees. We
provide an exceptional leisure and sports environment, complete with various sports and fitness
facilities such as flywheel, indoor golf, electric racing games, VR games, yoga area, electric massage
chair area, and a table tennis room. These amenities offer our colleagues a space to relax andengage in physical activities. Additionally, we organize health competitions, including weightloss competitions, step counting competitions, and calorie burning competitions, to promote a
healthy lifestyle. Through a range of online sports and health promotion activities, FET encourages
employees to prioritize their well-being and foster a workplace culture defined by the LOHAS
philosophy (Lifestyles of Health and Sustainability).

Employee healthcheckups

The Company offers comprehensive health checkups that go beyond regulatory obligations. Older employees are provided with carotid ultrasound and cardiac
ultrasound to evaluate the risk of stroke, coronary artery stenosis, and heart valve abnormalities. Additionally, fundus photography is available to detect macularlesions and diseases like fundus vasculature and glaucoma.

Health+ App bloodpressure measuring
deviceFET has developed its own Health+ App, equipped with devices available at all office locations. This enables employees to conveniently measure their blood pressure
at any given time and subsequently upload the recorded data onto the Health+ App for the purpose of self-monitoring and management.

AEDs at workplaces

All offices (stores) are equipped with Automated External Defibrillators (AEDs) and have trained first-aid personnel to ensure preparedness for emergencies. Regulareducation and training are provided to colleagues to enable immediate emergency response in case of any unforeseen events.

Workplace stressmanagement

To support the mental well-being of our employees, contracted professional organizations provide counseling services for family, marital, stress, and interpersonal
issues. This initiative aims to promote physical and mental equilibrium, as well as ensure work safety, quality, and productivity. Each employee is eligible for six
complimentary psychological counseling sessions annually. Furthermore, our company intranet offers spiritual quotes and provides support to employees during
stressful situations through articles, stories, film reviews, and book recommendations. FET alleviates workplace stress for employees through the organization ofhealth promotion courses. These courses include topics such as "Mindfulness Stress Reduction Lectures," "What is Emotional Blackmail," "Is Being Easily Nervous
Serious? - Addressing Anxiety Disorders:," and "Psychologist's Insights on Relaxation - Introduction to Zentangle for Beginners."

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Outstandinbreastfeeding room

2022

Each office is equipped with an outstanding breastfeeding room that has received certification and accolades from the regional health unit. Additionally, we
conduct regular seminars to provide support to our female employees regarding breastfeeding and baby health information.

Far Eastone Sustainability Report982022 Parental Leave(Unit: number of people)

FET Telecom

Arcoa
Male

FemaleMale

Female

Total

Total

About FET
About
FET
Number of employees
qualified for parental leave (A)

202

235

437

Number of employees
qualified for parental leave (A)

3

6

9

Actual number ofapplicants for parental leave (B)

37

186

223

Actual number ofapplicants for parental leave (B)

0

6

6

Application rate (B/A)

18.32%

79.15%

51.03%

Application rate (B/A)

0%

100%

66.67%

Number of employees to bereinstated in the previous year(C)

13

57

70

Number of employees to bereinstated in the previous year(C)

0

10

10

Applications to return to work (D)

11

42

53

Applications to return to work (D)

0

6

6

Return to work rate (D/C)

84.62%

73.68%

75.71%

Return to work rate (D/C)

-

60%

60%

Number of employees
reinstated in the previous year (E)

6

42

48

Number of employees
reinstated in the previous year (E)

0

5

5

Number of employees returning towork for one year in the previous year (F)

6

30

36

Number of employees returning towork for one year in the previous year (F)

0

4

4

Retention rate (F/E)

100.00%71.43%

75.00%

Retention rate (F/E)

-

80%

80%

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

FET has implemented a retirement scheme in accordance with the "Labor Standards Act" for all its formally employed staff. Under this scheme, employees who decide to continue with the oldpension scheme or choose the new scheme while maintaining their seniority from the old scheme will have 2% of their monthly salary allocated to the pension reserve. The Worker Retirement Reserve
Supervisory Committee manages this reserve, which is deposited in the Bank of Taiwan under the committee's name. The new Labor Pension Act has been implemented since July 1, 2005. Under thisact, employees who choose to participate in the new scheme will have 6% of their monthly salary allocated by FET to the Labor Insurance Bureau on a monthly basis.
The full allocation of the pension allowance is implemented to ensure that the pension reserve adequately covers the retirement expenses of eligible employees.

Pension Statistic - FET Telecom

2022

Unit: NT$ Thousand
2021

2022

Pension Liabilities

533,046

399,377

Pension Expenses

253,954254,269

Far Eastone Sustainability Report994.2 Talent Development
4.2.1 Recruiting and Retaining Talent
About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
GovernanceAs the era of 5G dawns, FET is proactively enhancing its talent pool to adapt to the evolving telecommunications industry. We are actively recruiting professionals with expertise intelecommunications, digital media, information security, cloud computing, artificial intelligence (AI), and the Internet of Things (IoT). This strategic approach allows us to continuously
accumulate human resources in the field of innovation, ensuring our ability to respond to industry revolutions. To further attract promising talents to the ICT industry, FET has initiatedefforts to engage with universities and colleges that offer relevant disciplines. Through various collaboration models, we aim to leverage campus resources and cultivate skilled professionals
across diverse fields. In addition to leveraging the Group's resources to foster industry-academia collaboration initiatives with Yuan Ze University and Asia Eastern University of Science andTechnology, FET has also proactively broadened its cooperation with additional colleges and universities for industry-academia internships. Furthermore, in 2022, FET has strengthened its
collaboration with Tamkang University and Takming University of Science and Technology. These efforts aim to provide valuable opportunities for student internships and industry-academia
cooperation projects in the materials and energy sectors. Interns who demonstrate exceptional performance will be given the chance to transition into full-time roles upon completion of
their internship or graduation from their respective educational institution. In 2022, a total of 37 internships were offered, with three of them transitioning into full-time positions.
New Hires in 2022
We possess a robust recruitment system that prioritizes the growth of both our employees and the company. Additionally, we value and support the career transition decisions made by
our employees. In 2022, FET hired a total of 652 new employees, with 382 males and 270 females, primarily under the age of 30. Additionally, 799 employees resigned, including three
retirees, with 412 males and 387 females. Reasons for resignation included family care, relocation, and career changes. To safeguard employee rights and enhance our recruitment system,
supervisors from the respective departments conducted exit interviews with all departing employees. The purpose was to ascertain the reasons behind their resignations, which will serve as
valuable references for future enhancements in our human resource management practices. If the Company undergoes substantial operational changes, such as adjustments to operationalorganization or manpower demand, force majeure events, or the identification of unsuitable employees, we will provide advance notice to employees in accordance with the notice period
specified in the Labor Standards Act. Additionally, we will ensure timely payment of salaries and severance pay.

Smart Sustainability
CH2 Smart
Sustainability
Worked for more than three months but
less than one year: ten days in advance

Environmental Sustainability
CH3 Environmental
Sustainability

Worked for more than one year but
less than three years: 20 days in advance

Worked for more than
three years:30 days in advance

Percentage of New Hires in 2022

Social Inclusion
CH4 Social
Inclusion

FET Telecom
Male

Appendix
Appendix

Female

Other

Age

Total

Under 30

171

160

0

30-35

190

105

0

Over 5121

50Subtotal

382

270

0

Percentage of New Hires (%)

13.95%

10.27%

0.00%

652

2022

12.14%Far Eastone Sustainability Report100ArcoaMale

FemaleOther

AgeAbout FET
About
FET

Total

Under 30

7

18

0

30-35

25

33

0

Over 51220Subtotal

34

53

0

Percentage of New Hires(%)

25.76%

22.55%

0.00%

Contents
Contents
Message from
Messagefrom Management
Management87

23.71%

Highlights
2022 ESG Highlights
Resignations and Percentages in 2022

Corporate Governance
CH1 Corporate
Governance

FET Telecom

Arcoa

Male

Female

Other

Male

Age

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Note.
Note.

Other

FemaleAge

Under 30

161

163

0

Under 30

10

20

0

30-35

228

213

0

30-35

26

40

0

Over 5123

110Over 511

40Subtotal

412

387

0

Subtotal

37

64

0

Percentage of
Resignations (%)

15.03%

14.72%

0.00%

Percentage of
Resignations (%)

28.03%

27.23%

0.00%

Total

799

Total

101

Percentage of
Resignations Total(%)

14.88%

Percentage of
Resignations Total(%)

27.52%All new/resigned employees are based in Taiwan.
New hire/resignation ratio = New hire/resignation (Male, Female) Employees ÷ Total (Male, Female) Employees

2022

Far Eastone Sustainability Report101Internal Hire Rate
Male

FemaleTotal

FET Telecom

6%

5%

11%

Arcoa

0.93%

1.87%

2.80%

About FET
About
FET
Contents
Contents
FET Performance Management System

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

FET offers a comprehensive performance evaluation mechanism that encompasses various dimensions and aspects of each department. This includes goal setting, a two-fold evaluationof work performance and behavior performance, immediate feedback and review, and a multi-faceted feedback system, among others. At the start of each year, the company establishes
annual performance targets for all employees and personal on-the-job learning growth goals. These targets and goals are reviewed and approved by the supervisor before being
implemented. When establishing objectives, it is crucial to implement a goal-setting approach that is consistent and interconnected throughout the organization. This ensures that goals set
by supervisors can be linked and developed hierarchically down to individual employees. Additionally, it is important to provide the option for goals that go above and beyond the original
targets. This allows supervisors and colleagues to adapt flexibly to new goals and tasks that may arise during the execution process. Supervisors should also be able to provide immediate
feedback to colleagues through various means such as meetings and one-on-one conversations. Performance evaluations should be conducted in a flexible and efficient manner as required.
In addition to providing immediate feedback, FET implements formal performance appraisals twice a year, in the middle and at the end of the year. These appraisals will assess both work
performance and behavior performance. Colleagues will begin by conducting self-evaluations on their individual goals and overall performance. Subsequently, their direct supervisors will
provide feedback. The appraisal process will be completed through the performance calibration process within each department. In 2022, all eligible colleagues successfully completed their
Annual Performance Assessment, achieving a 100% completion rate.

Environmental Sustainability
CH3 Environmental
Sustainability

FET offers various feedback mechanisms tailored to different job roles. For supervisory positions, FET facilitates a communication channel for subordinates to provide feedback to theirsupervisors. Human Resources administers anonymous questionnaires to all employees, enabling them to express their personal opinions and sentiments regarding the leadership andmanagement practices of their immediate supervisors. This allows employees to provide feedback to their superiors anonymously.

Social Inclusion
CH4 Social
Inclusion

The Company is dedicated to offering supervisors (feedback recipients) with feedback that is derived from the employees' feedback. This feedback aims to provide a more objective
understanding of how the feedback recipients are executing their management responsibilities. In 2022, a total of 482 FET supervisors at all levels actively engaged in receiving feedback
from their subordinates. Supervisors can utilize the "Get Feedback" feature in the performance management system to solicit input from project leaders, supervisors from other departments
who have collaborated with the employees, or other colleagues. This allows for a comprehensive range of perspectives and opinions regarding the performance of their colleagues.

Appendix
Appendix

Quarterly mystery visitor visits are conducted for front-line store staff, encompassing both FET's direct and franchised stores. Each store will receive at least two secret visits annually. Thisapproach allows for a comprehensive assessment of overall service satisfaction, enabling enhanced follow-up improvement and training to continuously elevate the quality of service
provided by the stores. Alongside the individual performance system for store staff, a group performance evaluation system is also in place to foster mutual cooperation among teammembers and collectively achieve work objectives. Furthermore, group performance outcomes will be tied to individual performance bonuses.
External independent entities have been engaged to conduct a comprehensive survey on the satisfaction of our call center customer service representatives. This survey aims to gather
feedback from customers in order to assess the performance of our colleagues and identify areas for improvement in their education and training. The ultimate goal is to enhance thequality and satisfaction of our telephone customer service.

2022

Far Eastone Sustainability Report1024.2.2 Growth and Development
FET encompasses the necessary components for the Company's current and future training and development endeavors. This isachieved through internal diagnostics of the organization, analysis of market trends, and understanding customer needs. These
efforts align with FET's 3-year digital transformation strategy and talent development direction. Since 2019, our development goal has
been focused on cultivating "Big, AI, and IoT (Big Data, Artificial Intelligence, and Internet of Things) talent”. Annually, we conduct
thorough reviews of the course content to ensure its comprehensiveness and suitability, making adjustments as needed. This ensures astrong alignment between the Company's strategy and operational objectives.

FET Telecom

About FET
About
FET
Contents
Contents

Expertise

Leadership
Three Major Courses
on Industry
Trends and Industrial
Technology

Message from
Messagefrom Management
Management

Since 2020, we have implemented internal lecturer training and courses, established internal reading clubs and technical salons, andfostered a culture of organizational learning. Furthermore, recognizing the growing demand for personalized and digital learning
methods, we have introduced a comprehensive learning resource platform. This empowers our colleagues to independently tailor theirlearning courses to meet their individual needs. In 2021, a total of 15 colleagues were chosen to partake in the extensive four-monthtraining programs offered by the AI School. These programs included the AI School Manager Class and the Technology Leader Class.
Both classes were successfully completed in 2022, achieving a 100% completion rate. The primary objective of these courses was tointroduce cutting-edge external knowledge and foster the development of internal talent within our organization.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Data

In 2022, FET employees received an average of 47.5 training hours, with a total cost of NT$19,666K and an average cost of NT$3,662
per person. To address the challenges posed by digital transformation and the pandemic, the learning content developed and invested
in during this period was strategically focused, adopting a more digital learning model and offering a wider range of learning resources.
These efforts have laid a solid foundation for the digital transformation of our training initiatives.

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

In 2022, our company strategically planned three types of courses - leadership, data, and expertise - based on the key themes of work
efficiency, industry trends, and industry technologies. Additionally, we have enhanced our management and professional skill courses.

Arcoa

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Digital Skill

Innovation
The Core
Objectivesof Talent
Development

Arcoa considers "leveraging digital technology and innovative thinking to become a valued business partner in sales, logistics,
and after-sales service" as the central objective for talent development. The company aims to establish a highly skilled team that
embodies "digital skill," "innovation," and "collaboration."Arcoa implemented its annual operational strategy plan for eachbusiness group by conducting functional interviews and gap analysis with each department. As part of this process, the company
specifically devised five major talent development strategies and six major training categories. In 2022, a total of 87 internal andexternal training sessions were conducted, with an average duration of 19.7 hours per staff member. The total cost incurred forthese training sessions amounted to NT$236,500.

Collaboration

2022

Far Eastone Sustainability Report103Talent Development Strategy

FET Telecom

About FET
About
FET

Main Aspects

TargetContents
Contents

Experience improvement and New Hire Journey optimization
Re-examine the needs and weakness of incoming employees, optimize the existing newcomer registration process, training
courses and buddy system, and help accelerate newcomers' familiarization with the organization and culture.

Message from
Messagefrom Management
Management

The overall average satisfaction rate of newcomers on New Hire Journey was 4.46, an increase of 4% compared to the previous
year. This optimization project will continue in 2023, continuing to review and re-design the Journey to meet the needs of
newcomers at the time of entry.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

2022 Highlights

Management andProfessional Talent
Cultivation

Cultivate the management
and professional talentneeded in the era of digitaltransformation

Personalized Learning: Enhance self-learning and digital transformation growth
In light of the personalized learning trend and the pandemic's effects, all colleagues are being equipped with individualized
learning plans. These plans encompass personal soft skills, industry trend awareness, and professional technical expertise.
Throughout the year, the total number of course participants amounted to 4,476, with an average satisfaction rate of 4.45.
Furthermore, we implemented a range of diversified learning tools in our organization, specifically tailored to the materials andenergy sectors. These tools include a digital library for reading, Podcast micro-learning for listening, and reading clubs for grouplearning. Additionally, we consistently published monthly learning and development reports to facilitate resource coordination,
time management, self-improvement, and the cultivation of a learning-focused organizational culture.
Continuously promotion of managerial training
To support the advancement of professional staff into managerial roles and ensure their competence, transition preparation
courses have been developed. These courses encompass essential knowledge and skills for supervisors, including internal audit
and control concepts, authorization, counseling, and decision-making at the management level. Additionally, the effectivenessof these courses will be evaluated annually through performance assessments and feedback. As of 2022, six cohorts of newly
promoted or new managers have undergone training, with a total of 140 managers completing the program. The averagesatisfaction rate stands at 4.8.

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Two seminars and sharing sessions were conducted to promote and appreciate the diversity and unique perspectives of female
managers in the workplace. A total of 41 managers actively participated in these events, aiming to foster a more inclusive,
equitable, and diverse environment within the company.

2022

Far Eastone Sustainability Report104

Main Aspects

TargetKnowledge creation: In-house lecturers as the driving force for training
1. Since 2021, FET has developed 47 internal instructors and conducted 136 courses. These courses cover various topics such aspresentation skills, communication and coordination, and industry trends in big data/AI/IoT, VBA, RPA, and Tableau industrial
technology. In 2022, the internal instructors further provided training to 2,514 participants through the "Individual Training Plan."
The courses received highly positive feedback with an average satisfaction rating of 4.7 points.

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

2022 Highlights

Becoming Diverse
Learning Partners

Construct physical and online
learning channels throughinternal experts to transform
into a learning organization

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix
Encouraging
Innovation and
Skill Inventory2022

Promoting digitaltransformation andinnovation based on the
Big data/AI/IoT”

2. To ensure the smooth operation of our stores, address customer issues, and deliver exceptional sales and service amidst theongoing pandemic, our assistance is crucial in achieving the Company's sales expansion objectives. In 2022, supervisors andfunctional demand stakeholders collaborated to discuss and evaluate the behavioral indicators and functional capabilities
necessary for store colleagues. Internal instructors served as lecturers for the "Franchise Outbound Sales Training Program."
A total of 14 sessions were conducted, with 430 participants successfully completing the training. The course satisfaction rate
reached 97%. This initiative not only enhanced the functional capabilities of colleagues but also resulted in 3,880 outbound sales
opportunities, with a completion rate of 91.8%. As a result, the organization successfully expanded its business sales channels.
Knowledge dispersion: internal/external education and training
Building on the ongoing digital transformation efforts of the past three years, the training program for 2022 focused on three
key areas: enhancing work performance, staying abreast of industry trends, and mastering industry technologies.
A total of 102 sessions comprising 66 physical and online courses were conducted by both internal and external instructors.
These sessions attracted 7,530 participants, resulting in an average satisfaction rate of 4.63.
Knowledge sharing: Encouraging the forming of study groups to create the culture of reading and sharing
Continue to encourage colleagues to cultivate the practice of sharing novel knowledge and technologies. Over the past two
years, our colleagues have taken the initiative to form study groups, resulting in the establishment of a total of 24 groups. The
website showcasing the outcomes of these study groups is accessible to all colleagues within the company.

Skill inventory: Construction and analysis of professional function data
Conduct functional database construction to establish the foundational model for the subsequent professional function
inventory and system. Additionally, utilize the system to facilitate the construction and management of professional licenses,
aiding in personnel skill development and digital transformation.
Data is king: Continuing to offer data and software skills courses
To promote digital transformation, we have conducted a total of 50 training courses, both internally and externally, aimed
at enhancing data analysis skills, knowledge of data analysis and machine learning, and understanding of cloud computing
concepts. These courses have been completed by a total of 1,285 individuals. The topics covered in the courses include Tableau
Desktop, data analysis, RPA, Splunk, and others. Through practical and hands-on learning, these courses have assisted colleagues
in applying their knowledge in practical settings, thereby improving their digital knowledge and skills.
Creativity and innovation: Encouraging breakthroughs to create more differences
In 2022, our company successfully organized ten courses on creative innovation, problem analysis, and solution strategies for ourcolleagues in the materials and energy sectors. These courses aimed to enhance work efficiency by equipping participants with
innovative design thinking methods. We are pleased to report that a total of 197 individuals successfully completed the training,furthering their skills in creative innovation and marketing.

Far Eastone Sustainability Report105ArcoaAbout FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

Main Aspects

2022 Highlights

Executive Management
and Digital Thinking Talent
Training

Build a highly intelligent team that embodies "digital power," "innovation," and "collaboration." Additionally, continue the series of courses aimed at cultivating
primary and mid-level management talent in recent years to further develop the leadership skills of key talents in the future.

Smart Logistics Talent
Academy Training Program

To align with the FEDC business model, we have established a comprehensive training system for logistics professionals. This system includes an inventoryof various logistics skills and aims to cultivate the necessary skills for managers and colleagues at all levels. These preparations are essential for the successful
implementation of our new smart logistics blueprint.

Sales Channel Talent
Training

Establish a culture of teamwork and mutual support among all colleagues in the store, fostering an environment of high performance for the store channel team.
Additionally, enhance the understanding of job responsibilities for each store employee, with a focus on improving customer relationship management skills.
Furthermore, develop the operational and managerial competencies of deputy store managers to effectively fulfill their duties and responsibilities.

High Quality Maintenance
Service Training

Enhance the quality of maintenance services, foster colleagues' telephone etiquette and coping abilities, and foster a positive work environment to enhance theteam's overall adaptability and cohesion.

Internal Instructor Group
Training

To enhance the organization's knowledge capacity and promote the expertise of internal instructors, professional courses have been developed to extract relevant
knowledge, including the professional skills of various departments. Additionally, retraining seminars are conducted to further support knowledge inheritance andshape the image of internal instructors.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report106Employee Training in 2022 by Type of Training
FET Telecom

About FET
About
FET
Contents
Contents

Type of training

Description

Number of classes

Participants in the training

Training hours (person-hours)

Compliance & risk

Courses about standards and rules, such as internal
audits, a zero-violence workplace, integrity, ethicalcorporate management, and compliance.

123

23,45017,895

Management

Management competency training essential for
managers.

2

977

2,455

Specific
employees /managers training

Training or talent development projects for newhires, new managers, and internal lecturers.

18

1,285

2,028

Vocational
competency

Courses related to work efficiency, industry
trends, industry technologies, and professional
competencies required for digital transformation.

1,090

133,774

199,907

Informationand technology
security

Information communication security, social security,
personal data protection, etc.

54

25,15525,491

Personal
developmenttraining

External training and in-service training.

198

374

7,537

1,485

185,015

255,313

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Total

2022

Far Eastone Sustainability Report107ArcoaType of training

Description

Number of classes

Participants in the
training

Training hours(person-hours)

About FET
About
FET

Manager and backbone
reserve management talent

Developing teams with a positive management style to foster a constructive cycle ofcommunication going both ways.

3

125

148

Contents
Contents

General training
for all staff

Developing a fundamental understanding of each department through basic professionalcourses for each department of the Company, and using internal lectures to pass on thisknowledge effectively.

30

2,910

2,868

Digital application and IT
professional training

Introducing digital application and IT professional skills in various fields, cultivating digitaltalents in each department, and preparing for the Company's digital optimization.

3

12

60

Highlights
2022 ESG Highlights

Logistics operation
collaboration training

To facilitate seamless collaboration following the integration of the two warehouses'
operations, enhance the core competencies of workflow reengineering and project
management among key personnel through external training.

7

14

93

Corporate Governance
CH1 Corporate
GovernanceDirect sales channel
management training

To enhance job responsibility awareness and foster optimal performance, develop
specialized training programs for store managers, assistant store managers, and store
personnel focusing on their respective roles and responsibilities within the company.

43

1,800

3,988

Smart Sustainability
CH2 Smart
Sustainability

Professional training inmaintenance service

Strengthen the basic practice of maintenance, as well as the ability to promote
maintenance services, and develop the diverse skills of maintenance service engineers to
expand the new service territory.

1

58

58

87

4,919

7,215

Message from
Messagefrom Management
Management

Total

Environmental Sustainability
CH3 Environmental
Sustainability

Training hours is the actual number of hours attended by full-time (including former) staff members who have participated in the training courses.

2022 Total Employee Training Cost and Hours of Training

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

1.
2.

Unit

FET Telecom

Unit

Arcoa

Total employee training costsNT$

19,666,000

Total employee training costs

NT$

236,500

Total employee training hours

Hours

255,313

Total employee training hours

Hours

7214.5

Total number of employees

Number of people

5,370

Total number of employees

Number of people

367

Average training costs per employee 1NT$3,662.2

Average training costs per employee Note1

NT$

644

Average training hours per employee 2

Hours

47.5

Average training hours per employee Note2

Hours

19.7

Average employee training cost per employee = Total employee training costs/total number of employees
Average employee training hours per employee = Total employee training hours/total number of employees

2022

Far Eastone Sustainability Report108Total Number of Employees Trained, Hours of Training, and Gender Distribution in 2022
Arcoa

FET Telecom

Gender

About FET
About
FET
Contents
Contents

Female

Male

Total

GenderJob Grade

Total

Averagehours oftraining

Total

Averagehours oftraining

Total

Averagehours oftraining

General
Employee

2,469

52

2,409

45

4,878

49

Primary
Supervisor

40

46

100

40

140

Mid-Level
Supervisor

102

34

204

35

SeniorExecutive

18

17

28

Total

2,629

51

2,741

Message from
Messagefrom Management
Management

Female

Male

Total

Job Grade

Total

Averagehours oftraining

Total

Averagehours oftraining

Total

Averagehours oftraining

General
Employee

212

23.3

102

10.4

314

19.1

41

Primary
Supervisor

16

40.4

17

21.9

33

30.9

306

35

Mid-Level
Supervisor

7

15.9

11

12.5

18

13.8

10

46

13

SeniorExecutive

0

0

2

3

2

3

44

5,370

47.5

Total

235

24.1

132

11.8

367

19.7

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Note.

Training hours: the actual number of hours attended by full-time (including former) staff members
who have participated in the training courses.

Note.

The number of people does not include employees with temporary contract and employees who
failed in the courses.

2022

Far Eastone Sustainability Report1094.3 Human Rights Management
Human Rights Policy

About FET
About
FET
Contents
Contents

FET has implemented the "Human Rights Commitment and Policy" to safeguard the fundamental human rights of its employees. The Company adheres to pertinent labor regulations
and laws, and fully supports and complies with international human rights agreements such as the "Universal Declaration of Human Rights (UDHR)", the "United Nations Global Compact(UNGC)", the "United Nations Guiding Principles on Business and Human Rights", and the "Declaration of Fundamental Principles and Rights at Work" by the International Labor
Organization (ILO). This commitment extends to FET, its subsidiaries, suppliers, and business partners. FET has also implemented the “FET Supplier Corporate Social Responsibility
Guidelines,” which require partner vendors to adhere to the same standards and fundamental principles of human rights commitment. FET also assesses significant human rights concerns,
evaluates management effectiveness, and implements plans to enhance progress through a biennial "human rights due diligence investigation." This investigation is publicly disclosed toraise awareness of human rights among stakeholders, including employees, partners, suppliers, and customers. The most recent investigation occurred in the first half of 2023,
encompassing all aspects of the value chains, such as employees, suppliers, customers, and community residents.

Message from
Messagefrom Management
Management

Human rights due diligence investigation process

Highlights
2022 ESG Highlights

Identifying human rights risks

Ranking human rights risks

Managing mitigating measures

Reviewing and modifying policies

Publicly disclosing information

Develop a checklist for identifying
risks based on UN and otherinternational agreements, aswell as trends in human rights
risks within domestic and foreignindustries.

Include all stakeholders in thematerials and energy sectors'
FET value chain and identify risk
issues based on their likelihoodand severity.

Investigate and address the
response and preventionof high-risk issues, andsubmit the findings to therelevant departments for thedevelopment of mitigating
measures and minimizing
impacts.

Revise human rights policies
according to the magnitude ofeffects and execute measures tomitigate and adapt to high-risk
human rights concerns, thereby
minimizing impacts.

Publicly disclose the resultsof due diligence and conduct
reassessments every two years.

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Human Rights Due Diligence Results

Appendix
Appendix

Based on the investigation findings, the primary high-risk human rights concern for FET employees encompass personal freedom, safety, privacy protection, and rights pertaining to family life. Suppliers
face challenges related to safeguarding work and labor conditions, health rights, and preventing forced labor. Customers are concerned with the protection of user privacy, personal freedom andsafety. Lastly, community residents prioritize personal freedom and safety, and autonomy. Appropriate management measures have been implemented to mitigate the impact of these issues. For
comprehensive details on the complete identification methods, results, and plans for mitigating and enhancing human rights, kindly consult the FET human rights due diligence investigation report.

2022

Far Eastone Sustainability Report1104.4 Employee Care and Communication
In order to foster a culture of transparent and open communication, FET has implemented a range of communication channels to facilitate positive engagement with employees andproactively safeguard their rights and interests. The following section outlines the primary communication channels and their corresponding performance:

About FET
About
FET

FET Telecom
Communication Channels

2022 Communication Content

Lantern Legend Meeting(Capital/Labor Meeting)Lantern Legend Meetings are conducted on a quarterly basis. In 2022, a total of five meetings were convened. These meetings encompass discussions on the Company's
profitability overview, future expansion strategies, enhancements to the office environment, and pertinent employment relations matters. The rights and interests of all
FET employees are protected by collective bargaining. All FET employees accept the protection of collective bargaining and use this as the mechanism for communicating
and protecting the rights and interests of employees. Labor representatives are either nominated by employees or selected by various groups.

Employee Welfare
Committee

The committee will convene on a quarterly basis and may hold additional meetings as needed. In 2022, a total of nine meetings were held to discuss various
benefits plans for our company. These plans included the company trip, New Year's shopping festival, club management, and vendor discounts. All benefits are
regularly communicated on the company's intranet website, accessible to all employees. A mailbox is also provided for two-way communication.

Town Hall Meeting

Four Town Hall Meetings were held in 2022, consisting of one employee meeting and three all-staff communication meetings. The President chaired an employee
meeting to discuss the accomplishments of the past year and the current state of the competitive market. The meeting emphasized the importance of collaboration
among employees in tackling future challenges and expressed gratitude for the valuable contributions of senior colleagues through public recognition. The
President and senior executives from all departments co-chaired the communication meetings, where they shared management performance and new strategicplans. FET addressed employee concerns, and participating employees were able to raise management-related issues for discussion using digital communication
tools. The President and senior executives promptly provided answers to these issues, promoting effective two-way communication.

Supervisor Communication
Meeting

FET periodically conducts communication meetings with supervisors. The President and HR Director discuss the company's operational performance, strategic plans
for the upcoming year, and HR matters, including performance management, goal setting, and organizational changes. Supervisors attending the meeting will havethe opportunity to ask questions in real-time, with the President and HR Director providing immediate responses.

Communication Meetings
Between Departments andSubsidiaries

The President actively engages in employee communication meetings conducted by every department and subsidiary. In 2022 alone, the President has attended
over 20 such meetings, providing colleagues from each department and subsidiary with a valuable opportunity for direct interaction with the President.

Internal Newsletter

Every Friday, FET distributes its internal newsletter to highlight the events of the week. The newsletter covers significant occurrences, departmental introductions,project highlights, and employee concerns, among other topics. Its purpose is to embody the brand ethos of FET and foster closer relationships among colleagues.

Survey of Employee Opinions

FET upholds the fundamental principle of compassion and actively engages with its employees. In 2022, the eNPS (employee net promoter score) survey was
conducted twice, resulting in a total of 5,236 questionnaires distributed during H2. Out of these, 4,436 individuals responded, yielding a completion rate of 85%. In
addition to the employee net promoter score survey, the management team has also developed a satisfaction survey consisting of 27 multiple-choice questions andeight open-ended questions. These 27 questions have been categorized into four aspects: Purpose, Job satisfaction, Happiness, and Stress. The objective is to gaina deeper understanding of our colleagues' working conditions and offer support where needed. A total of 2,356 pieces of eNPS survey feedback were received in
2022, all of which have been addressed. The improvement items were categorized into six areas, encompassing performance evaluation, promotion management
and system, departmental communication, education and training, working environment, and hardware and software equipment.

Contents
Contents
Message
Message fromfrom Management
Management
2022 ESG Highlights
Highlights
CH1 Corporate
Corporate Governance
Governance
CH2 Smart
Smart Sustainability
Sustainability
CH3 Environmental
Environmental Sustainability
Sustainability
CH4 Social
Social Inclusion
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report111

FET Intranet

Communication Channels

2022 Communication Content

About FET
About
FET
Contents
Contents
FET Intranet

Message from
Messagefrom Management
Management

In addition to publishing the most recent news, FET also shares updates through its e-Newsletter and Intranet, providing employees with information aboutcompany activities. Furthermore, FET has established two channels for employee feedback: "Employee Suggestions" and "Employee Grievances Mailbox".
These channels ensure that employee responses are treated with utmost confidentiality and are managed by dedicated units. They serve as effective
communication platforms for employees to express their opinions.
In 2022, the "Employee Suggestions" channel received a total of 61 responses, primarily addressing administrative facilities, product suggestions,
remuneration benefits, and safety and health concerns. These matters have been promptly addressed and publicly documented on the Company's website.
The "Employee Grievances Mailbox" received ten cases in 2022. Dedicated project teams were established to investigate these cases and effectively engage
with the employees involved, in accordance with corporate regulations and procedures. All cases have been successfully resolved as of December 31, 2022.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Arcoa

Smart Sustainability
CH2 Smart
Sustainability

Communication Channels

2022 Communication Content

Annual Employee Conference

At the start of the year, our attention was directed towards motivation and expectations, as we shared new strategic guidelines for 2022 and recognizedexceptional employees. In the middle of the year, our focus shifted to communication and active listening. Throughout 2022, the President and supervisors
conducted six interactive face-to-face meetings with colleagues from each department, aiming to gain a comprehensive understanding of employee needs
and challenges, and propose subsequent improvement measures. As the year drew to a close, our emphasis turned to responsiveness and collaboration, as wecelebrated the achievements of 2022 and fostered a sense of unity and camaraderie among all employees.

Employee Welfare Association

Four quarterly meetings will be held in 2022, primarily focusing on enhancing benefits and fostering organizational cohesion. In 2022, a website platform wasplanned to be developed for employee travel subsidy projects in collaboration with travel agencies. This initiative aims to offer colleagues an alternative option
to utilize their travel subsidies amidst the ongoing pandemic. Additionally, in line with the cultivation of a sports-oriented corporate culture, the organization
has also planned the execution and recognition of bowling competitions.

Arcoa E-Newsletter

Published quarterly, a total of four times in 2022. The primary focus of this report is on the company's activities, updates from the parent company andsubsidiaries, sharing of training courses, experience sharing, and activity columns. These initiatives aim to enhance organizational learning and knowledge
sharing within the materials and energy sectors.

"I Want to Complain”
MailboxIf efforts to engage with relevant authorities and managers have not yielded tangible outcomes, employees may submit their concerns to the complaint
mailbox for assistance. No complaints were received in 2022, and there were no instances of labor and human rights laws and regulations violations.

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report1124.5 Employee Health and Workplace Safety
FET Telecom

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

FET has established the "Labor Health and Safety Committee" (LHS Committee) and a specialized unit for occupational health and safety. These initiatives aim to enhance the work environment andguarantee the well-being of our employees. The LHS Committee is structured in accordance with applicable laws and regulations, consisting of 18 members. This includes nine labor representatives,
who constitute 50% of the committee's membership. The Committee convenes on a quarterly basis to present an occupational health and safety management plan and an automatic inspection plan.
Additionally, it engages in discussions, investigations, and analyses of pertinent occupational hazards, and evaluates matters pertaining to the enhancement of occupational health and safety. The
objective is to effectively communicate and manage hazard prevention measures. The occupational health and safety unit also actively promotes awareness of hazard prevention among employees andcontractors. In 2022, a total of 164 rounds of diverse occupational health and safety training were conducted, with 12,424 participants. Meanwhile, the Company has also launched the "Health and
Safety" website to effectively communicate information on hazard prevention and enhance employees' awareness of preventive measures. In 2022, the Company was honored with the prestigious "GoldAward" by the Industrial Safety and Health Association of the R.O.C. for its outstanding performance in maintaining a safe working environment with zero occupational accidents.
FET "Occupational Health and Safety Policies" are authorized by the Board of Directors and approved by the President.
Compliance with Laws and Related Requirements
Ensure compliance with applicable laws, regulations, and international standards or norms regarding occupational health and safety. Regularly assess the level ofcompliance to fulfill the obligations of occupational health and safety laws and satisfy stakeholders, thereby preventing occupational accidents.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
GovernanceFull Participation and Implementation
Workers and labor representatives are invited to participate in the Labor Health and Safety Committee. The purpose of this committee is to collaboratively develop
occupational health and safety policies, actively engage in relevant occupational health and safety operations, and effectively implement risk management strategies toensure full participation and achieve our goals.

Smart Sustainability
CH2 Smart
Sustainability

Continuous Improvement of System Performance
We are committed to continuously enhancing the performance of our occupational health and safety management system, as well as fostering a culture of occupational health to support our objective of sustainable corporate operations.

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Providing a Safe Working Environment
Implement hazard identification and risk assessment, establish project implementation priorities, action plans, and quantitative targets, and regularly monitor relevant
indicators. Implement effective management practices to consistently promote and maintain a safe and healthy working environment.

Appendix
Appendix

Risk Management and Health Promotion
Enhance employee risk management, mitigate work-related accidents and illnesses, implement health promotion initiatives, promote the principles of occupational
medicine, and heighten employee consciousness regarding occupational safety and health.

FET has implemented an ISO 45001-compliant management system that encompasses the entire operation of the Company, including all employees, contracted workers, and those under the Company's
supervision. FET diligently adheres to laws and regulations to prevent occupational accidents. The company conducts thorough hazard identification and risk assessments, prioritizes improvement
projects, and implements action measures. Additionally, FET enhances employee risk control measures to prevent work-related injuries and illnesses. The company also conducts health promotion
activities to consistently foster and sustain a safe and healthy working environment.

2022

Far Eastone Sustainability Report

113Building a Healthy Workplace Environment
FET actively fosters a sports culture among its employees, upholds its corporate social responsibility to care for its workforce, and strives to create a "happy and healthy workplace." In recognitionof these efforts, FET was awarded the "Sports Enterprise Certificate" by the Sports Administration of the Ministry of Education in 2022, with a validity period extending until 2025. The Neihu Office,Banqiao Office, Taichung Office, and Kaohsiung Office have once again been awarded the "Healthy Workplace Certification" and "Health Activation Label" by the Health Promotion Administrationof the Ministry of Health and Welfare. Details of the fitness initiatives are outlined below:

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

Name of Activity
Weight Loss Competition

Launched in 2018, the competition has been held for four consecutive years. In 2022, a total of 420 participants successfully completed the challenge,
resulting in a cumulative weight loss of 949 kilograms. FET awarded prizes worth a total of NT$150,000 to the winners. To date, the total number ofparticipants in this event stands at 2,870 individuals, with a combined weight loss of 5,237 kilograms.

FET Long-term Health Club Activities

A total of 32 clubs have been established at FET, 23 of which are sports-oriented. FET provides an annual subsidy of up to NT$80,000 for club activities. In
2022, a total of 446 club activities were conducted, with a cumulative participation of 5,109 individuals.

App Step Counting Competition

FET prioritizes the well-being of its employees and promotes the cultivation of regular exercise routines. This not only helps to alleviate physical andmental stress but also enhances immunity. In 2022, we organized a step counting competition, which garnered a remarkable response with 1,157
participants. Collectively, they took an impressive 278,930,646 steps, equivalent to approximately 139,465 kilometers or 122 laps around Taiwan.

Online Fitness Classes

In response to the COVID-19 pandemic, FET took measures to enhance employee awareness of pandemic prevention. Additionally, the company provided
online courses on physical and mental health, including topics such as online sports, nutrition, and psychology. Throughout 2022, a total of 42 courses
were conducted, with a participation count of 3,464 employees.

Organize Fitness Activities

In line with the Ministry of Labor's "Workplace Health Week" initiative, the Sports Administration assigned the "Technology Fitness Project Office" tooversee physical fitness activities in 2022. A total of 90 employees from the Neihu office participated in these activities, which included assessments ofbody composition (height, weight, waist-to-hip ratio), muscle strength and endurance, flexibility, and cardiorespiratory endurance. These assessments
provided participants with insights into their own physical conditions and emphasized the significance of maintaining fitness.

Epidemic Prevention LOHAS Exercise

In order to address the COVID-19 pandemic prevention measures, instructional videos on nutrition and exercise were published on the "Health and Safety
Webpage" to enhance colleagues' understanding of sports nutrition and boost their self-immunity. These videos garnered a total of 1,800 views in 2022.

Blood Drive Event

As a result of the COVID-19 pandemic, blood banks in Taiwan experienced shortages. In response, blood drives were organized, resulting in a total
donation of 79,250 cc of blood in 2022.

Office Area Massage RoomFET has engaged the services of 16 massage therapists who are visually impaired. These therapists offer complimentary massage sessions to ouremployees, aiming to alleviate work-related stress and relieve muscle tension. Over the course of one year, approximately 11,727 individuals havebenefited from these massage therapies.

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

Scope of activity

Appendix
Appendix
Safeguarding Occupational Safety

FET is committed to creating a stress-free work environment for all employees and stakeholders. In 2018, we introduced the "ISO 45001 Occupational Health and Safety Management System."
The following year, the British Standards Institute (BSI), an external independent audit unit, conducted on-site audits to assess our implementation of ISO 45001 standards. FET successfully met
various audit criteria and received the international ISO 45001:2018 and the CNS 15506:2011 (TOSHMS) Taiwan Occupational Safety and Health Management System certificates, which are valid
until January 24, 2025. In 2022, BSI verified that our audit objectives were accomplished, confirming the continuous and effective implementation of the ISO 45001 management system. The
system has also successfully passed the renewal assessment. The majority of FET employees are based in office and retail settings, resulting in a relatively low level of occupational risk. In order touphold workplace safety, inspections were conducted on various work environments and construction sites, encompassing offices, data centers, base stations, and stores. A comprehensive totalof 243 workspaces were inspected, with a diligent tracking of areas requiring improvement. As a result, the improvement rate achieved a commendable 100%. As base stations and associatedcommunication infrastructure projects are outsourced to contractors, FET has established regulations pertaining to occupational safety and health for these contractors. When contractors areengaged for communication facility projects or maintenance, the agreement includes labor safety requirements. Additionally, relevant training is provided to prevent any harm resulting from
improper construction and to ensure the well-being and safety of workers. No safety-related accidents were reported by contractors in 2022.

2022

Far Eastone Sustainability Report

114

FET Telecom 2022 Occupational Safety and Health Performance

About FET
About
FET
Contents
Contents

2021

2022

Number of fatalities as a result of work-related injuries

00Rate of fatalities as a result of work-related injuries 100

Number of high-consequence work-related injuries

0

0

0

0

Number of recordable work-related injuries

1

2

Rate of recordable work-related injuries 3

0.018

0.037

Working hours

11,023,488

10,776,936

Rate of high-consequence work-related injuries 2(excluding fatalities)

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance1.

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Rate of fatalities as a result of work-related injuries = Number of fatalities as a result of work-related injuries / Working hours x 200,000
Rate of high-consequence work-related injuries (excluding fatalities) = Number of high-consequence work-related injuries (excluding fatalities) / Working hours x 200,000
3.
Rate of recordable work-related injuries = Number of recordable work-related injuries (including fatalities as a result of work-related injuries) / Working hours x 200,000
2.

Arcoa
Arcoa has established a Labor Health and Safety Committee and a specialized unit for health and safety.
The LHS Committee at Arcoa consists of 11 members, selected in compliance with applicable laws
and regulations. This includes four representatives from the labor sector, accounting for 36% of thecommittee's composition. The primary responsibility of the LHS Committee is to enforce and guarantee asecure working environment for employees, as well as address other issues pertaining to environmental
health enhancements. The LHS Committee convenes on a quarterly basis to propose and review Arcoa's
occupational health and safety management plans, as well as its automatic inspection plan. Additionally, it
oversees the implementation of various annual occupational health and safety plans by the Occupational
Safety Office. Arcoa has successfully installed Automated External Defibrillator (AED) devices at seven key
operational sites and obtained the necessary certification for AED Placement. Arcoa's occupational healthand safety unit successfully conducted 35 diverse training sessions focused on occupational health andsafety. These sessions attracted a total of 1,255 participants, ensuring a comprehensive dissemination ofknowledge and best practices within the company. Arcoa conducts regular fire drills at its major operatingsites to enhance employees' crisis response capabilities and mitigate the risk of fire to personnel and assets.
Furthermore, in order to guarantee the safety of our logistics center, we consistently provide training andenhance the certification qualifications of our factory administration staff, machinery operators, first-aid
personnel, AED management, and OHS management staff. We offer on-the-job training and establish an
automated inspection mechanism.

2022

Training Courses

Number of Sessions

Total Number of
Employees

Employee stress-relief
course6148

Employee care andassistance course

5109

AED and CPR emergency
rescue training

5

143

Occupational health andsafety training

19

855

Far Eastone Sustainability Report1154.6 Industry Infrastructure
4.6.1 Communication Infrastructure and Quality
About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

In order to consistently improve customer satisfaction, FET is actively investing in the construction and maintenance of telecommunications infrastructure and facilities. Through monitoring
and analyzing network performance and resource usage of base stations, we can identify high traffic usage based on factors such as time period and number of connected users. Byutilizing carrier aggregation technology, we can expand the radio frequency bandwidth to alleviate congestion. These communication infrastructure investments contribute to maintaining astable network speed, which has been recognized and accredited by international speed tests. In order to enhance 5G coverage, FET has undertaken functional experiments and validation
testing for the 5G standalone architecture (SA) and 5G core network (5GC) since 2021. As of 2022, a total of 11,200 NR 3.5G base stations have been constructed in Taiwan, resulting in
a 97% expansion of 5G service coverage. In 2022, FET successfully maintained a stable network and upheld net neutrality principles by ensuring consistent download speeds regardless ofcontent. The company experienced no significant service disruptions or financial losses. The system average interruption frequency stood at 0.4%, while the customer average interruption
duration was 0.0222 hours. Overall, the network availability reached 99.92%, marking a 0.04% improvement compared to the previous year. In the event of a service interruption, we assess
the impact on affected customers and determine whether to activate the Business Continuity Plan (BCP) and initiate emergency response. This assessment involves collaboration between
decision makers, the network department, customer service, public relations, and finance departments to evaluate the risk of the incident and potential losses.
Project

Content

Social/Environmental/Business Benefit KPIs

5G

By the end of 2022, a total of 11,200 NR 3.5G base stations were built
in Taiwan

The coverage rate of 5G services was expanded to nearly 97%, and the average download speedof users was 316.32Mbps
According to the latest "5G Global Mobile Network Experience Report" and "Taiwan Mobile
Network Experience Report" released by OpenSignal in September and December 2022, the "5G
Availability Rate" (the time users spend connected to 5G) was ranked second in the world andthe best in Taiwan 3

4G

Expanded the bandwidth of 4G base stations in areas with dense crowds
and high usage rate
Expanded the capacity of data switch equipment in four core switch rooms
and added 240G processing capacity to meet the mobile data needs ofusers
Built 792 base stations including 700/1800/2100/2600 frequencies in 2022
to increase network speed through quad-band carrier aggregation (CA)Voicecommunication
services

performed practical tests to analyze wireless signal strength and signal-tonoise ratio; examined antenna feeder cables, adjusted antenna coverage,
and adjusted and optimized wireless parameters to improve reception
quality in areas with poor signal coverage

Maintained a stable 0.16% dropped call rate (DCR) across FET's nationwide voice service

Poorcommunication
and remote
areas

Implemented network and speed maintenance measures such as buildingbase stations and infrastructure and adjusting regional spectrum
Used the self-developed Customer Experience Management (CEM) systemfor data analysis to improve the quality of network services
Adjusted spectrum resources for remote areas to enhance 4G and 5G
signal coverage and communication quality

Completed 4G construction in more than 740 outlying islands and remote villages
In May 2022, the National Communications Commission (NCC) approved the spectrum exchange
between FET and Asia Pacific Telecom. FET utilized the 15MHz bandwidth and low-frequency
properties of the 700MHz spectrum to enhance and optimize it. As a result, the average indoor
network speed increased by 22% and the average outdoor network speed increased by 10%.
Additionally, network usage during peak hours decreased by 15%, leading to an improved
network experience for users. This positive outcome has been well-received by users
Achieved more than 98% 4G signal coverage in remote area

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
AppendixAchieved an user average download speed of 82.2Mbps with a remarkable 125% increase 4
The 4G successful connection rate reached a stable performance level of more than 99.95% in
all areas
The 4G signal covers 368 townships in Taiwan, with a population coverage rate of 99.8%

1.

System average interruption frequency = Number of service interruption users / Total number of users

3.

2.

Customer average interruption duration = Total service outage time / Number of affected users

4.

2022

Data from OpenSignal Taiwan Mobile Network Experience Report
Data from Speedtest award Q3—Q4 2022

Far Eastone Sustainability Report1164.6.2 Investment in Construction in Remote Areas

About FET
About
FET

FET is committed to fully complying with NCC's "Telecommunications Universal Service Regulations" and remains dedicated to promoting telecommunications services. Our focus is on
improving data access speeds in remote areas to match those found in metropolitan areas. In order to enhance the quality and coverage of communication services in remote regions, aswell as to ensure the stability of these services during times of disaster, FET continues to apply for subsidies to construct base stations for public service agencies in high-risk disaster areasand in public buildings that have been vacated in rural areas across Taiwan. Since 2014, the construction of 4G infrastructure has been successfully accomplished in over 740 remote islands
and villages, with a projected 4G signal coverage of over 98% by 2023.
In addition, FET also continues to work toward enhancing communications quality in remote areas through participating in the following programs:

Contents
Contents

FET Enhances "Signals Boost Up Project" for Mountainous Areas:
Communication signals in mountainous regions are often disrupted byterrain obstacles, adverse weather conditions, and various other factors.
Effective communication and accurate location information are crucial
for successful mountain rescue operations.
Since 2015, FET has independently executed the signals enhancement
project for mountainous regions, aiming to optimize the communication
quality of Taiwan's 100 Mountains and popular hiking trails. As part ofthis initiative, FET has installed approximately 900 communication
noticeboards. Apart from offering communication services for mountainclimbers, the project enables hikers to utilize their mobile phones toreport their location in case of emergencies, facilitating effective
assistance. Moreover, it supports the government's rescue operations inmountainous areas.
In May 2022, FET collaborated with the Tourism and Travel Department of the New Taipei City Government
to conduct network signal measurement and optimization for the "Smile Trails." These trails are a well-liked
parent-child hiking route located near the New Taipei Metro stations, connecting Shulin, Yingge, Sanxia,
Tucheng, Zhonghe, Xindian, Shiding, Shenkeng, Xizhi, and Pingxi. In total, there are eight hiking trails, andalong the way, a total of 87 communication noticeboards were installed.

Message from
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix"Open Mountain and Forest Policy" by the Executive Yuan: FET has
actively collaborated with NCC's guidance and coordinated withmanagement agencies like the Forestry Bureau and the National
Park Management Office. As a result, FET has successfully
established mobile communication base stations at strategic
locations, including popular hiking trails and mountain cabins, toenhance signal coverage. Apart from offering communication
services and information inquiries for hikers in mountainous andforested areas, FET has also prioritized emergency rescue communication to expedite search and rescue operations.
By the conclusion of 2022, enhancements have been made tomobile communication signals in various mountain cabins and trails,
namely Shuiyang Forest, Qika Lodge, Mount Lilong Trail, Mount
Daito, Jialuo Lake of the Taijia Vertical Trail, Ruisui Forest Trail,
Smangus, and Liding Mountain.

Investment in Construction in Remote Areas
KPI

2018

2019

2020

2021

2022

Amount of investment in infrastructure construction in remoteareas (unit: NT$ Thousand) Note

31,00048,00066,000168,200

232,000

LTE signal coverage in remote areas

96%

96.5%

96.7%

97.3%

98%

Strengthening the communication infrastructure of disasterprevention and relief operations (unit: station)

16

34

14

13

26

Expanding the infrastructure of remote broadband access bases(unit: station)

12

14

6

45

54

Amount invested in the expansion of telecommunication
services (unit: NT$ Thousand) Note

132,304

186,000

66,35931,60034,600

Note.

Correcting 2021 Corporate Sustainability Report data

2022

Far Eastone Sustainability Report1174.7 Charity Care Projects
FET's public charity input strategy encompasses three key aspects: environmental education, digital inclusion, and social engagement. Through these initiatives, we align with the United
Nations Sustainable Development Goals (UN SDGs) and strive to achieve the following visions: eradicating poverty (SDG 1), promoting good health and well-being (SDG 3), ensuring quality
education (SDG 4), reducing inequalities (SDG 10), and taking action on climate change (SDG 13). In addition, upholding the spirit of protecting everyone's right of basic telecommunications
services, FET also provides diversified rate plans based on the needs of low-income and special groups.

About FET
About
FET

Special Consumer Group

Program Name

Contents
Contents

Foreign Visitors (Taoyuan Airport
Exclusive)

Tourist Prepaid Card for
Foreign Visitors

Message from
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Management

People with Physical and Mental
Disabilities

Highlights
2022 ESG Highlights

Program Content
Provide internet access charged by day, 4G unlimited data, starting from NT$300.

Genial Plan

We provide cost-effective plans for disabled individuals that are more affordable than market rates. Alongside the499 mobile number only and the 599 4G full-speed internet access with mobile phone plans, we also offer 299 mobile
number only plans or plans tied with mobile phone light internet usage. These plans provide unlimited usage for the
initial six months and are accessible to all users.

Seniors over the age of 60

Evergreen Plan

For individuals aged 60 and above who prioritize phone calls over internet usage, FET offers the value-added monthly
rental plan priced at $149/199. This plan includes limited internet access and provides 20 minutes of on-net and 20
minutes of off-net calls free of charge every month.

Foreign Workers

IF Prepaid Card

Corporate Governance
CH1 Corporate
Governance

New immigrant workers in Taiwan can apply for free SIM card and a 16-day unlimited Internet services.
Unlimited access 30-day Internet service starting at NT$499.

Smart Sustainability
CH2 Smart
Sustainability
Total Values from Annual Charity Care Projects

Environmental Sustainability
CH3 Environmental
Sustainability
35,000,000

2019

2020

2021

2022

Direct investment into publiccharity projects

5,393,246

5,710,537

2,531,955

674,657

14,417,265

18,584,404

912,282

2,101,329

30,000,000
25,000,000

4.016,250

9,607,917

1,621,184

674,657

3,527,805

2,908,431

7,392,436

2,101,329

Note.

2020

3,563,937

Total
公益專案直接投入金額

1,621,184

2019

4,566,000

912,282

Other personnel and administrative
expenses

1,254,331
2,531,955

7,392,436

5,710,537

0

4,566,000

5,000,000

Value of in-kind donations
1,254,331

10,000,000

5,393,246

15,000,000

Amount translated from employee
volunteer services
21,051,121

20,000,000

14,417,265

Appendix
Appendix

8,636,463

18,584,404

Type of Resource Input

35,215,182

Social Inclusion
CH4 Social
Inclusion(unit: NT$)3,563,937

2021
2022
21,051,121
35,215,182
8,636,463
員工志願投入工時之金額換算
實物捐贈之價值換算

Type of Public Charity Project Input
Total Investment (NT$)

Environmental
Educatio
SocialEngagement

2,908,431

712,041

9,607,917

Environmental
Educatio

940,078

1,489,860
Digital Inclusion

4,016,250

Number of People Reached Note

1,381,187

SocialEngagement

222,167

Digital Inclusion 18,448

Number of people reached” includes the number of volunteers and media contacts (including interactive contacts).

2022

Far Eastone Sustainability Report118

4.7.1 Environmental Education
Since 2015, FET has been actively promoting public awareness of environmental issues through the implementation of environmental education programs centered around the "Cherish
the Earth, Spread Love Far" initiative. The company places great emphasis on three key actions: fostering a green culture within FET, promoting environmental education, and encouraging
consumer responsibility towards the environment. These actions align with the United Nations' Sustainable Development Goals (SDGs), particularly SDG 4 (Quality Education) and SDG 13(Climate Action).

About FET
About
FET
Contents
Contents

Project

Content

FET Sustainable Zero
Leftovers Campaign

To promote carbon reduction awareness among employees and the public, FET organized several
initiatives. These included the zero leftovers challenge, a vegetarian week in the staff canteen, and acollaboration with the Society of Wilderness to host a seminar titled "Climate Change on the Dining
Table" in conjunction with World Food Day (October 16). Additionally, we arranged an immersive
farming experience event in Yilan, aimed at encouraging both employees and the public to minimize
food waste in their daily lives and make a positive contribution to carbon reduction efforts.

Message from
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

FET Climate Change andEnergy Saving and Carbon
Reduction Courses

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Earth Hour

Appendix
Appendix

Second-hand Makeup
Collection Campaign

2022

In response to the global trend towards achieving net-zeroemissions, FET Smart Energy Management System (EMS) has
made an investment in the "air-conditioning for all classes"
project. FET is dedicated to promoting environmental educationand has partnered with the Taiwan Youth Climate Coalition(TWYCC) to launch the "FET Climate Change and Energy Saving
and Carbon Reduction Courses". TWYCC volunteers havebeen involved in designing the course structure and serving as
instructors, while FET has provided information on EMS energysaving technology. After several rounds of discussion, both parties have successfully developed teachingmaterials. In order to engage students in an interactive and captivating manner, the volunteers visited
Zhongzheng Elementary School in Xindian District, New Taipei City, and Shenkeng Elementary School in
Shenkeng District, New Taipei City, to deliver lessons on climate change and daily carbon reduction.
In 2022, FET participated in the inaugural "Earth Hour" event
organized by the World Wildlife Fund (WWF). Collaboratingwith over 400 government agencies and enterprises in Taiwan,
FET joined the initiative by switching off lights for one hour on
March 26 at 8:30 p.m. This included seven office buildings and
290 FET stores located in Taipei, Taichung, and Kaohsiung.
A total of 35,000 lights were turned off during this collective
effort. President Chee Ching also recorded a video, urging the
public to support the "Earth Hour" campaign.

We collaborated with the SheAspire Association, committed to assisting underprivileged women,in collecting gently used cosmetics and skincare items for mothers facing unique circumstances andfinancial hardships, who have been unable to indulge in makeup since getting married. This initiative not
only extends the lifespan of these products but also empowers disadvantaged women to reclaim theirbeauty, fostering resilience and determination to progress in life.

Social/Environmental/Business Benefit KPIs
Number of employee participants: 117
Zero Leftovers Challenge Participants from theFET Facebook Page: 376 people
Social media engagement: 10,021 times

Campus promotions: 10 sessions
Teachers and students reached: 350

Turned off the lights in the office areas of 7
office buildings and 290 FET stores
Total of 1,543 employees participated
4,798 people were reached

A total of 1,404 cosmetics were collected.
An estimated 281 colleagues participated(counting 5 donations per colleague)
Expected to help 140 women

Far Eastone Sustainability Report1194.7.2 Digital Inclusion
In recent years, Taiwan has experienced a growing urban-rural divide, resulting in limited educational opportunities for children living in remote areas. As we enter the digital age, thesignificance of lifelong learning in digital technology has become increasingly apparent. To promote educational equity and quality, FET leverages its core business capabilities to address
UN Sustainable Development Goals (SDGs) 4 and 10, namely Quality Education and Reduced Inequalities. By doing so, we aim to enhance the overall educational standards for children in
Taiwan and contribute to the reduction of social disparities.

About FET
About
FET

Project Category

Contents
Contents
Message from
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

General scienceeducation andknowledge sharing

Smart Sustainability
CH2 Smart
Sustainability

Content

The International Green and Smart Mobility
Forum-To construct intelligent infrastructure
and advance towards sustainable developmentwith a net zero approach.
Leveraging the power of information andcommunication technology (ICT), particularly the
integration of artificial intelligence (AI) and theInternet of Things (IoT), we can drive the adoptionof eco-friendly transportation and foster thecreation of smart cities. To ensure the successful
implementation of the net zero policy, esteemed
professionals from both industry and academia
have been invited to contribute their expertise.

Digital Technology Education"Elementary School Learning Activities - Innovative Digital Camp" Online Public Welfare Teaching
Service: We maintained our partnership with National Taiwan Normal University and Asia Eastern
University of Science and Technology to implement a teaching program for elementary schools.
Through online classes, students engaged in hands-on activities to explore the realms of 5G, AI, IoT,
and Big Data. A total of nine sessions were conducted across various locations, including Taipei, New
Taipei, Taoyuan, Hsinchu, Taichung, Changhua, Yunlin, Chiayi, Kaohsiung, Pingtung, and Hualien,with each session spanning two days.

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
AppendixSocial/Environmental/Business Benefit KPIs

A total of 587 people participatedReached a total of 212 elementary school
teachers, external lecturers, teaching assistants,
students, and parents

Two AI digital courses were provided for schools and companies, with the theme of AI/IoT for smart
homes.
"B5G, 6G and Low-Earth Orbit Satellite" lecture: Popularize 5G-related knowledge in colleges anduniversities.

2022

Far Eastone Sustainability Report1204.7.2 Digital Inclusion

About FET
About
FET

In recent years, Taiwan has experienced a growing urban-rural divide, resulting in limited educational opportunities for children living in remote areas. As we enter the digital age, thesignificance of lifelong learning in digital technology has become increasingly apparent. To promote educational equity and quality, FET leverages its core business capabilities to address
UN Sustainable Development Goals (SDGs) 4 and 10, namely Quality Education and Reduced Inequalities. By doing so, we aim to enhance the overall educational standards for children in
Taiwan and contribute to the reduction of social disparities.
Project Category

Content

Social/Environmental/Business Benefit KPIs

Contents
Contents
friDay Video Charity Project
The friDay Video Charity Project collaborated with the Hematology Society to raise awareness about
leukemia through films, enhance publicity and exposure, and encourage the public to be vigilant and seek
early treatment.

Message from
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Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Rural digital
education anddigital public welfare
investment

Teach for Taiwan Sponsored Communication Services & Distance Learning Internet Support Program
FET has been sponsoring Teach for Taiwan's communication services and at-home learning program. Thisinitiative aims to address the educational needs in remote areas. FET has provided 20 numbers at discounted
rates, indirectly benefiting over 6,000 rural schoolchildren since 2015.

Smart Sustainability
CH2 Smart
Sustainability
Publishing Charity General Science Textbooks
In 2022, we actively engaged in the Ministry of Education's "Rural Digital Application Promotion Project"and "Technology Assisted Independent Learning Project".

Environmental Sustainability
CH3 Environmental
Sustainability

We have compiled the public welfare book titled "AI Farming, Safe Farming" as a means to educate
elementary and middle school students, individuals residing in rural areas, and the general public about therole of technology in addressing food safety concerns. This book specifically highlights the experiences oftechnological farmers. Furthermore, we have donated copies of this book to digital opportunity centers, aswell as rural junior high schools and elementary schools.

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Digital inclusive
public service

2022

Mobile voice charity donation
FET continues to offer mobile phone e-donation methods to foundations and associations, aiming to raise
additional funds for social welfare groups in the materials and energy sectors.

Reached 7,200 potential customers

Supported communication fees of 22 TFT logistics
administrators
Over 50 rural families have online resources forongoing learning during the pandemic
5,727 people benefited from the sponsorship

965 books were donated to 110 rural area digitallearning centers and 42 elementary and junior highschools

A total of 692 donors donated via mobile phone
A total of NT$351,700 was raised

Far Eastone Sustainability Report1214.7.3 Social Engagement
FET extends its commitment to social issues and stakeholders, such as rural health care, local care, children and teens protection, and art and culture equality, through the integrationof online and offline platforms. This aligns with the United Nations Sustainable Development Goals of eradicating poverty (SDG 1), promoting good health and well-being (SDG 3), andreducing inequalities (SDG 10).

About FET
About
FET

Project Category

Content

Social/Environmental Benefits KPIs

Contents
Contents
Message from
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Healthcare

Telemedicine Project
FET offers a cloud-based telemedicine platform thatutilizes 5G low-latency transmission. This platform enables
real-time multi-party consultations across different
disciplines, addressing medical inequality in rural areas.
Additionally, in response to the pandemic, FET assists
medical institutions in swiftly providing video outpatient
services. This helps them adapt to the new normal in
medical and healthcare models following the pandemic.
In 2022, the company expanded the telemedicine
applications to include ambulances, developed "5G
emergency rescue" medical innovation applications, andenhanced the effectiveness of first aid and the survival
rate of cases.

Assisted 27,529 people (including video
outpatient service: 21,122, remoteconsultation in rural areas: 6,407)
A total of 39,351 people were reached

Text Message Care
FET has collaborated with the Suicide Prevention Center at Far Eastern Hospital to deliver compassionate SMS
messages during significant holidays. These messages serve as a timely source of support and serve as reminders forindividuals to seek medical attention.

Provided care for 692 individuals at risk ofsuicide and sent a total of 1,266 supportive
SMS messages

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report122Project Category

About FET
About
FET

Content

Social/Environmental Benefits KPIs

Elderly Living Alone Care Program
In Pingtung County, FET offers TCL adult watches free of charge to low-income and single-living elders as part ofour initiative to care for the elderly living alone. This program has garnered significant support from compassionate
individuals in the county, fostering a widespread sense of love and community.

5,280 seniors were reached

Construction of Food Bank Freezers
For three consecutive years, FET has urged suppliers to join the "Sustainability Pioneer Team" initiative. In 2022, agroup of 15 suppliers were invited to collaborate with the Alliance of Taiwan Food Banks in constructing frozen
storage facilities at the Hualien Food Bank site. The aim is to provide greater assistance to indigenous communities,
churches, schools, associations, and other social organizations in Hualien. This action is expected to benefit
approximately 6,000 individuals, including 30 rural elementary and junior high schools and indigenous communities.

A total of 19 FET employees and suppliers
Approximately 1,338 beneficiaries in
DecemberHearing-impaired co-creation project andbaby theater promotion
FET leverages its core information andcommunication technology to support
promotion across various channels, including
SMS and the "FET ’ s Mobile Circle app".
Additionally, the company has allocatedspace on the first floor of its headquarters
as a performance venue, encouraging both
FET customers and employees to engage inhigh-quality art and cultural activities such as"Dance in Silence" and "Baby Sound Wave".
This initiative aims to promote equality in therealm of art and culture.

Audience of "Dance in Silence": 718
Audience of "Baby Sound Wave": 241

Arcoa "Coating" Magician
Arcoa fulfills its corporate social responsibilities by leveraging its knowledge of professional coating techniques toassist disadvantaged and unemployed teenagers through The Mustard Seed Mission. This initiative aims to help
these individuals learn valuable skills, uncover their potential, and develop self-confidence.

Two training sessions were held
51 participants were reached

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

Social inclusion

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report123Project Category

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

Protecting children
and teens

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Content

Social/Environmental Benefits KPIs

FET Public Welfare Platform
Under the initiatives of "Collecting Love, Spreading Love," "Donation with
Love," "Giving with Love," and "Shopping with Love," our company has
been actively providing appropriate resource donations to various publicwelfare organizations. These efforts aim to connect suppliers, consumers,
employees, and other stakeholders in assisting social welfare groups. In
2022, the "Collecting Love, Spreading Love" Project successfully supported
the Chung Yi Social Welfare Foundation in raising medical funds for
unsupported children and teenagers. Through this project, a total of
NT$1.15 million was raised, benefiting 1,971 individuals.

A total of 2,428 people donated
A total of 1,971 beneficiaries
A total amount of NT$1,448,681 raised
A total of 128,557 people reached

Taitung Ruiyuan Elementary School Archery Team Sports Sponsorship
Project
FET has sponsored the archery team of Ruiyuan Elementary School in Luye
Township, Taitung County. The sponsorship includes providing consumableequipment such as bow bodies, bow arms, professional sports clothing,and sighting equipment. This support enables the students to compete
in archery competitions without any concerns and showcase their skills,
ultimately leading to outstanding achievements.

Archery team members supported: 16 (15students & 1 coach)"Teach for Taiwan" Project
Pen Pal Project: FET employees are encouraged to collaborate with a ruralelementary school in Hualien for a pen pal project. This initiative involves
volunteering to become pen pals with elementary school children. Throughthe exchange of letters, the children will have the opportunity to enhancetheir writing skills and broaden their horizons beyond their hometown.
Career Sharing Day: FET volunteers visited a rural elementary school in
Hualien to organize a Career Sharing Day. The purpose of this event
was to share their personal growth and career development experienceswith the students through engaging activities. The aim was to inspire thestudents and broaden their horizons regarding future career possibilities.

Number of students participated: 37
Number of employees participated: 19
7 months of letter correspondence
Social media engagement: 4,071

2022 "Yes, I Can. Youth Employment Cultivation" project
Arcoa and the Mustard Seed Mission collaborated to organize the "Arcoa Coating Magician" training course, led by
two highly skilled coating instructors from Arcoa. The course consisted of two sessions held in Tainan and Kaohsiung,each spanning four days of intensive professional coating technology training. Arcoa supplied all the necessary coating
materials for each student, facilitated practical exercises, and supported disadvantaged and unemployed youths inacquiring valuable skills, uncovering their potential, and fostering self-confidence. This initiative reflects our commitment
to fulfilling our corporate social responsibility.

A total of 6 volunteers including lecturers
participated during the training period
A total of 20 students participated in thetwo sessions

Far Eastone Sustainability Report124About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Appendix
ESG Data

Appendix A

GRI Standards index

Third-Party Assurance Statement

SASB index
TCFD Index
2022

Far Eastone Sustainability Report125

ESG Data
Environmental Aspect Data
GHG emissions (Unit: ton CO2e)
ISO 14064-1

About FET
About
FET
Contents
Contents

Direct GHG
Category 1 emissions andremovals

GHG Protocol
Scope1 Direct GHG emissions and removals

Indirect GHG
Indirect GHG emissions from imported
Category 2 emissions from Scope1
energyimported energy

Message from
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Management

Upstreamtransportation
Category 4
anddistribution

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
GovernanceCategory 6

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

BusinesstravelEmissions%

4,667.630

0.71%

286,818.203 43.72%

868.086

449.025

Social Inclusion
CH4 Social
Inclusion
Appendix
AppendixCategory 4

products usedby organization

Category 7

EmployeecommutingElectricity usage x emission factor

0.13%

0.07%

Scope: All
According to a travel expense reimbursement system, information on the means oftransportation (including taxi, HSR, car, airplane, and rail) and mileage traveled by
employees for business trips are obtained.
The greenhouse gas emissions from business trips are calculated based on this data andthe corresponding carbon coefficients.

0.61%

Scope: All
All employees' means of commuting and mileage are estimated based on the Ministry ofTransportation and Communications' (MOTC) survey on the daily use of transportation by
the public.
The greenhouse gas emissions from staff commuting are calculated based on this data andthe corresponding carbon emission coefficients.

0.20%

Scope: All
FET evaluates the carbon footprint of the product's downstream transportation andwarehousing, including the distance and mode of transportation of the goods to thecustomer's end.
The greenhouse gas emissions from downstream transportation and storage activities arecalculated based on this data.

Downstream
transportation
Category 9
anddistribution

1,310.400

Purchased
Category 1 goods andservices

Scope: All
187,114.047 28.52% The economic value of all purchased goods and services for the year is multiplied by thecorresponding secondary (e.g., industry average) emission factor (e.g., average emissions
per unit monetary value of goods) to derive the resulting carbon dioxide emissions.

Category 2 Capital goods

2022

4,014.099

Activity data x emission factor x GWP value

Scope: Products transported from the central warehouse to company-owned stores.
FET conducted a detailed analysis of upstream transportation and warehousing, includingtransportation distances, modes of transportation, and shipping weights of products
received from suppliers. Emission calculations were made based on transportation
distances and shipping weights for each supply-chain segment.

Indirect GHG
Category 3 emissions fromtransportation
Indirect
Scope3GHG
emissions

Emissions calculation method and exclusion

50,680.536

7.73%

Scope: All
The economic value of all purchased capital assets for the year is multiplied by thecorresponding secondary (e.g., industry average) emission factor (e.g., average emissions
per unit monetary value of the asset) to derive the resulting carbon dioxide emissions.

Far Eastone Sustainability Report126

GHG emissions (Unit: ton CO2e)
ISO 14064-1

GHG Protocol
Fuel-andenergy-related
Category
activities (not3
included in
Scopes 1 or 2)

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Management

Waste
Category
generated in
5
operations

Category 4products used byorganization

Emissions

7.62%

73.7600.01%

Scope: AllET categorizes all waste generated from its operational/business premises.
For each category of waste, FET records the amount of waste generated, the disposal method, thetransportation distance, and the associated emission factors, which are used to calculate the greenhouse gas
emissions generated from operations.

Scope: All
FET records and calculates refrigerant leakage amounts from all leased assets at its operational/business0.0004%premises, including leased company vehicles and office water dispensers.
The greenhouse gas emissions from leased assets are calculated based on this data.

49,972.296

Category Upstream
8
leased assets

2.447

Corporate Governance
CH1 Corporate
GovernanceCategory Processing of
10
sold products-

Smart Sustainability
CH2 Smart
Sustainability

Category Use of sold11
products

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
AppendixCategory 5Indirect GHG
emissionsassociatedwith the use of
products from theorganization

Category 6- Others

2022

End-of-life
Category
treatment of
12
sold products

Category Downstream
13
leased assets

Emissions calculation method and exclusion
Scope: All
FET assesses the carbon footprint arising from upstream fuel and energy supply activities, including the
procurement of electricity, gasoline, and diesel.
The greenhouse gas emissions from upstream fuel and energy activities are calculated based on this data.

Highlights
2022 ESG Highlights

Scope3Indirect
GHG
emissions%

47,085.539

19.372

16,055.343

0%

Not applicable.

7.18%

Scope: All
FET refers to external research reports to understand the energy consumption and utilization of a productduring its use phase.
The greenhouse gas emissions from product usage are calculated based on this data and emission factors.

0.003%

Scope: All
FET refers to external research reports and the Environmental Protection Agency's waste statistics tounderstand how products are disposed of at the end of their life, including recycling and reuse, incineration,and landfill.
The greenhouse gas emissions from the final processing of product disposal are calculated based on this dataand emission factors.

2.45%

Scope: All
FET records the usage of assets leased from other parties, such as server room lighting and air conditioning.
The greenhouse gas emissions from other-party leased assets are calculated based on this data, emission
factors, and leasing time.

Category
Franchises
14

6,919.378

1.05%

Scope: All
FET estimates the greenhouse gas emissions of franchised stores by multiplying the average singlestore greenhouse gas emissions of Category 1 and Category 2 directly operated stores by the number offranchised stores.

Category
Investments
15

0

0%

Not applicable. All FET's consolidated subsidiaries have completed greenhouse gas inventories, and the related
emission values have been consolidated into Category 1 direct emissions and Category 2 indirect power
emissions.

00%

Far Eastone Sustainability Report127

GHG emissions in Recent 4 years

2019

2020

2021

2022

GHG emissions 1
Direct GHG emissions(Scope 1)

GHG emissions(ton CO2e / Year)

6,067.89

4,859.12

10,652.13

4,667.63

Indirect GHG emissions(Scope 2)

GHG emissions(ton CO2e / Year)244,332.43

245,621.92

273,251.07

286,818.20

GHG emissions (ton CO2e /Year)

250,400.32

250,481.04

283,903.20

291,485.83

Emission intensity (kg CO2e /number of subscribers)

35.30

35.43

40.23

40.80

GHG emissions(ton CO2e / Year)

421.967.36

412,874.12

437,722.69

364,564.33

Gasoline（ekL/year）

444.36414.35381.73373.85MWh

4,031.18

3,758.96

3,463.00

3,391.55

Diesel（kL/year）

47.75

37.27

55.01

46.18

MWh

466.54364.08537.45451.19Indirect energy consumption

MWh517,523.52

546,462.37

615,001.45

636,181.78

Total consumption
non-renewable energy

MWh522,021.23

550,585.40

619,001.90

640,024.52

Total consumption - renewableenergyMWh290.58692.09995.333,183.24

MWh522,311.81

551,277.49

619,997.23

643,207.76

intensity (kWh / number ofsubscribers)

73.64

77.98

87.85

90.02

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Management

GHG emissions in CO2eHighlights
2022 ESG Highlights
external GHG emission(Scope 3)

Corporate Governance
CH1 Corporate
Governance

Energy consumption

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Direct energy consumption

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Total energy consumption

1.

The scope of ISO 14064-1 inventory covers FET, NCIC and KGEx. This table also covers all Arcoa data. The following energy consumption table is the same.

2022

Far Eastone Sustainability Report128

Waste in Recent 4 years 2

2019

2020

2021

2022

Non-hazardous Waste
Total waste generated

Tons

356.78338.54329.81279.02

Waste disposed – Incineration 3

Tons

230.84235.11215.28175.49Waste disposed – Landfill

Tons

0

0

0

0

Generic waste 4

Tons

260.23421.29434.62704.95

Recycled waste(Recycled percentage)

Tons (%)

260.23（100%)

421.29（100%）434.62（100%）

704.95（100%)Million cubic
meters

0.27190.26940.25800.2423

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Message from
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Management

Hazardous Waste

Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Water 5

Smart Sustainability
CH2 Smart
Sustainability
Water consumption

Environmental Sustainability
CH3 Environmental
Sustainability
2.

Waste: sum of waste from office building of FET Telecom and NCIC, Arcoa’s headquarter at NeiHu, and all stores. Arcoa uses estimated data.
All incineration plants in Taiwan are Energy Generation of Waste-to-Energy Plant.
4.
The replacement of aging base station lead-acid batteries resulted in an increase in hazardous waste generation, while general waste continued to decrease in 2022
5.
Water consumption: sum of water consumption of FET Telecom, NCIC, and Arcoa’s office building, Arcoa uses estimated data.
3.

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Revenue and emission reduction benefits from FET's low-carbon products
Type

Products/Services

Percentage of Annual Total
Revenue

Estimated Annual Emission Reduction(tCO2e)Low carbon product(s)Low Carbon IDC

1.04%

7,119

Avoided emissions for third-parties

1.Taoyuan Smart NB-IoT Streetlights Project
2.FET 5G telemedicine
3.Prepaid eChannel
4.E-commerce
5.Energy Management Service

4.90%

31,413.1

2022

Far Eastone Sustainability Report129Social Aspect Data
Human Resources Overview (Number of people)

2019

2020

2021

2022

Full-time Employees 1

6,183

6,026

5,836

5,618

Male

2,991

2,898

2,867

2,793

Female

3,192

3,128

2,969

2,825

Part-time Employees 2

0

0

0

0

Male

0

0

0

0

Female0000Temporary Workers

57

73

98

119

Male

39

47

65

80

Female

18

26

33

39

Employment of Disabled People

60 (1.03%)

43 (0.7%)

49 (0.8%)40 (0.7%)

Percentage of females in management level

32%

32%

33%

34%

Total employee turnover rate

19.81%

16.35%

16.06%

16.10%

About FET
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FET
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Message from
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

1.
2.

Full time (permanent) Employees: employee meets the requirement of working hours and working practices and the definition of "full-time employee" in FET's operation area.
Part-time Employees: the working hours and practices are less than full time employee defined by the operating region : FET only operates in Taiwan,

Appendix
Appendix

Employee training cost

2019

2020

2021

2022

FET Telecom

Arcoa

FET Telecom

Arcoa

FET Telecom

Arcoa

FET Telecom

Arcoa

Total employee training costs (NT$)

24,971,847

1,577,661

19,696,832

2,243,011

14,475,000

495,500

19,666,000

236,500

Total employee training hours

437,501.19

7,756

357,135.51

7,540

199,065

4,971

255,3137,214.5

Total number of employee (people)

5,841

399

5,623

405

5,463

375

5,370

367

Average employee training costs (NT$)

4,275.27

3,954

3,413.075,538

2,600.00

1,321

3,662.2

644

Average employee training hours

74.9

19.4

62.72

18.6

36.4

13.3

47.5

19.7

2022

Far Eastone Sustainability Report130Employee Development Programs
Human Resources Overview(Number of people)

Program Objectives:
Program Objectives:
Enhance the company's annual satisfaction scores in the "Learning and Development" category. Aligning with FET's franchise store annual strategic priorities, assist in expanding sales
distribution channels.
Strengthen internal trainers' abilities and cultivate necessary knowledge and skills amongcolleagues.
Aid in maintaining efficient store operations and executing store operation plans/initiatives.
Reduce the company's annual training costs
Proactively engage to resolve customer issues and provide optimal sales and service tocustomers.
Foster a culture of knowledge sharing and a learning-oriented organization.
Train store clerks in professional sales competencies, thereby enhancing their commitment
Target Audience: All FET employees.
to the company.
Program Content: Taking on the capabilities required by FET's "Big Data, AI, IoT" strategy,
TargetAudience: Franchise store managers or experienced clerks.
after integrating internal and external instructor resources to plan courses, discussions will befacilitated with managers and colleagues to formulate the "Annual Personal Training Plan."
Program Content: In 2022, the inaugural "Franchise Store External Sales Training
This plan will primarily be delivered by internal instructors, offering them abundant teaching
Program" was introduced. This program offered telephone sales training courses foropportunities and experiences. Through knowledge extraction, it will foster an organizational
franchise store colleagues. Not only does this help maintain effective store operations amid
atmosphere of knowledge sharing and mutual learning while concurrently reducing training costs the pandemic's impact, but it also contributes to executing store operation plans/initiatives,
associated with hiring external instructors. This approach aims to achieve the goals of sustainable resolving customer issues, and providing excellent sales and service to customers. Thisbusiness operations and employee satisfaction.
assistance contributes to the company's expansion of sales business objectives.

Description of program
objective/ businessbenefits

Enhance employee satisfaction.

Foster a learning-oriented organization.

Cultivate internal talents.

Attract external talents to join.

Reduce annual training costs.

Enhance business sales closing
opportunities.

Quantitative impact
of business benefits(monetary or nonmonetary)

Employees satisfaction with company training has improved, supporting career development
opportunities for employees and also attracting external talent to join.The satisfaction rating forY22 training courses is 4.63 out of 5, showing an improvement of 0.13 points compared to Y21.
The Y22 employee satisfaction in the "Learning and Development" aspect is 4.58 out of 5,
indicating an increase of 0.06 points compared to Y21. Internal instructor teaching effectivenesshas improved, achieving the goal of cultivating internal talent.
Number of Course Sessions: In Y22, a total of 84 course sessions were conducted, an increase of
32 sessions compared to Y21 (+62%).
Number of Participants: In Y22, a total of 2,514 participants were taught by 1,493 instructors,
marking an increase of 1,826 participants taught by 650 instructors compared to Y21 (+265% /+77%).
Internal Instructor Teaching Satisfaction: In Y22, the satisfaction rating for internal instructor-led
courses is 4.7 out of 5, showing an improvement of 0.1 points compared to Y21.
Cultivated internal talents to serve as instructors, achieving the goal of reducing annual training
costs for the company. In Y22, internal instructors collectively delivered 295 hours of teaching.
Compared to hiring external instructors, this has led to a cost reduction of approximately$3,500,000 in training expenses. Shaping a culture of knowledge sharing and a learning-orientedorganization. A total of 102 course sessions were conducted for the "Big Data, AI, IoT " strategy,out of which 84 were taught by internal instructors, accounting for 82% of the total sessions. Thishighlights that through the internal instructor system, a culture of sharing and mutual learning has
been established, aiding the company in talent cultivation.

Successfully expanded organizational business sales channels. The Y22 external allocation
completion rate reached 91.8% (target: 90%), surpassing the set goal by +1.8%. This
achievement fulfills the objective of expanding telephone sales channels. Achieved the goalof enhancing business sales closing opportunities. In Y22, the total number of external
allocation transactions was 3,880, with an average closing rate of 2.2%. In addition toincreasing business sales closing opportunities, this has also generated contract value
benefits for the company, amounting to at least $69,723,600.
Successfully trained employees' professional competencies.
Number of Course Sessions: A total of 14 course sessions were conducted, achieving a
100% course offering target. Number of Participants: A total of 430 participants completed
the training, meeting the 100% course participation target. The anticipated outcome is forthese trained individuals to expand their acquired knowledge and skills, thereby enhancing
the effectiveness of their learning.
Satisfaction: The satisfaction rating is 97 out of 100, reaching the course effectiveness target.
Successfully proactively understanding customer issues and resolving them.
The total number of external allocation completions reached 169,173, which also signifies
the successful engagement with customers, understanding their needs and feedback,thereby enhancing customer satisfaction.

48.4%（2,541÷ 5252）

8.2%（430÷ 5252）

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Message from
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Management
Highlights
2022 ESG Highlights

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Program 2 - Franchise Store External Sales Training Program

Name & Description of
the program

About FET
About
FET

Corporate Governance
CH1 Corporate
Governance

Program 1 - ITP(Individual Training Plan)

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

FTEs participating in
the program(%)

2022

Expand organizational business sales
channels.

Train colleagues' professional competencies.
Proactively understand and resolve customer
issues.

Far Eastone Sustainability Report131Human Capital Return on Investment

Year

About FET
About
FET
Contents
Contents

2022a) Total Revenue

89,151,365,000b) Total Operating Expenses Currency:

15,006,751,000c) Total employee- related expenses (salaries + benefits) Currency:

7,184,548,000

Resulting HC ROI (a- (b-c)) / c

11.32

Total Employees

5,737

Message from
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Management
Highlights
2022 ESG Highlights

CEO performance metrics
CEO performance metrics

Corporate Governance
CH1 Corporate
Governance

Financial metrics

Operating income EBITDA
New economic revenue growth
Net profit after tax ROE

Consolidated total revenue NT$89.15 billion
Consolidated EBITDA NT$30.79 billion
Net profit after tax NT$9.61 billion
New economy revenue growth is 18%
ROE is 14.97
EPS is NT$ 2.95
EPS financial target achievement rate is 104.2%

Relative financial
metrics & non-financial
metrics

Customer net promoter score
Achievement of sustainable
development goals

NPS for general customers and corporate clients increased by 3 and 11 points.
The sustainable development goals reached 100%. (Please refer 1.2.1
Sustainable Governance Performance)

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix2022 Performance2022

Proportion of Variable Pay Distributed

Considering the performance results, FET
distributed 30.01% of variable pay.

Considering the performance results, FET
distributed 7.68% of variable pay.

Far Eastone Sustainability Report132

Climate-Related Management Incentives

Climate-Related Management Incentives

Type of incentive

Chief Executive Officer (CEO)About FET
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FET
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Message from
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Management
Highlights
2022 ESG Highlights

Ratio of revenues from new businesses on overall revenues 20%
Renewable energy capacity 25,000KWp (2,500X from base year in 2016)"Driving the environmentally friendly value chain" Goals is associated with climate change

5%

Monetary

Monitoring climate change risks and opportunities
Focuses on mitigating the Company’s impact on the environment, including GHG emission
reduction and energy efficiency enhancement
Aims to seize opportunities brought by climate change concerning products and services toincrease green procurement
Conduct supply chain management

10%

Monetary

Facility Services Department: PUE = 1.5 or below in newly built IDC/Annual office power
consumption EUI : 98.5 or below
Network and Technology Department: the power consumption for every 1GB data flow will be
0.173 kWh (a 58.7% decrease compared to the base year of 2016)
Procurement Department: Implement supplier ESG management to enhance suppliers’
sustainable performance/Complete onsite audit for all identified tier-one critical suppliers

20%

Business Unit Managers
Network and Technology
Facility Services
Procurement

Corporate Governance
CH1 Corporate
Governance

KPI Proportion

Monetary

Other Named Executives Officers
Executive Vice President and Executive
Director of the Environment and Energy
Committees

Incentivized KPIs (Y2025 Goals)

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Creating Social Value

2019

2020

2021

2022

Amount invested in of construction in remote areas (NT$ Million)

48

66

168

232

Social Inclusion
CH4 Social
Inclusion

Amount invested in social public welfare

Appendix
Appendix

Amount invested in public welfare (NT$ Thousand)

7,363

6,151

4,153

3,583

Amount raised (NT$ Thousand)

4,476

2,075

3,219

2,431

Total amount invested in social public welfare (NT$ Thousand)

11,840

8,226

7,372

6,014

Number of social public welfare volunteers

Note.

Number of volunteers involved (Number of people)

3,311

6,846

3,742

1,608

Total committed hours Note

38,078150,000

1,421

3,141

Volunteer contributions are recorded and totaled based on the time spent for each activity, which varies depending on the nature of the activity.

2022

Far Eastone Sustainability Report133Economic and Governance Data
Financial information in Recent 4 years (Unit: NT$1000)

About FET
About
FET
Contents
Contents
Message from
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Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2019

2020

2021

2022

2023/01/01-2023/03/31 note1

Current Assets

27,257,217

25,152,457

26,174,565

26,182,722

26,166,143

Properties, Plants and Equipment

36,257,748

38,205,535

40,142,014

40,328,499

39,173,514

Intangible assets

50,534,517

89,389,771

83,848,280

78,605,757

77,144,434

Other Assets

20,113,454

20,681,557

25,378,722

25,521,721

25,875,946

Total Assets

134,162,936

173,429,320

175,543,581

170,638,699

168,360,037

Current Liabilities (Before Distribution)

22,132,215

22,079,547

33,398,206

28,940,943

35,113,852

Current Liabilities (After Distribution)

32,806,792

32,748,197

44,062,792

note 2

note 2

Non-current Liabilities

41,424,301

83,102,564

76,044,595

77,509,580

66,074,828

Total Liabilities (Before Distribution)

63,556,516

105,182,111

109,442,801

106,450,523

101,188,680

Total Liabilities (After Distribution)

74,231,093

115,850,761

120,107,387

note 2

note 2Equity Attributable to Owners of FarEasTone (Before Distribution)

69,763,955

67,313,694

65,135,716

63,267,457

66,181,746

Equity Attributable to Owners of FarEasTone (After Distribution)

59,173,827

56,723,566

54,545,589

note 2

note 2

Capital Stocks

32,585,008

32,585,008

32,585,008

32,585,008

32,585,008

Capital Surplus (Before Distribution)

5,820,041

5,701,421

2,389,840

26,365

14,320Capital Surplus (After Distribution)

5,686,442

2,390,784

14,393

note 2

note 2Retained Earnings (Before Distribution)

31,355,697

29,127,148

30,995,246

32,429,860

35,183,668

Retained Earnings (After Distribution)

20,899,168

21,847,657

22,780,566

note 2

note 2Other Equity

3,209(99,883)(834,378)(1,773,776)(1,601,250)

Non-controlling Interest (Before Distribution)

842,465

933,515

965,064

920,719

989,611

Non-controlling Interest（After Distribution）

758,016

854,993890,605

note 2

note 2

Total Shareholders' Equity（Before Distribution）

70,606,420

68,247,209

66,100,780

64,188,176

67,171,357

Total Shareholders' Equity（After Distribution）

59,931,843

57,578,559

55,436,194

note 2

note 2

Operating Revenues

83,865,872

79,500,965

85,320,008

89,151,365

22,305,352

2022

Far Eastone Sustainability Report134

Financial information in Recent 4 years (Unit: NT$1000)

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2019

2020

2021

2022

2023/01/01-2023/03/31 note1

Gross Profit

26,756,524

25,933,863

25,438,004

27,056,839

6,959,023

Operating Income

11,925,478

11,037,699

10,361,121

12,633,523

3,398,255

Non-Operating Income and Expenses(913,959)(845,231)

719,664(634,442)

1,741

Income before Tax

11,011,519

10,192,468

11,080,785

11,999,081

3,399,996

Net Income from Operating Business

8,807,743

8,444,622

9,233,881

9,705,888

2,777,797

Net Income (Loss)

8,807,743

8,444,622

9,233,881

9,705,888

2,777,797

Other Comprehensive Income Loss (Net of income tax )(14,847)(135,736)(710,716)(836,480)

172,588

Total Comprehensive Income

8,792,896

8,308,886

8,523,165

8,869,408

2,950,385

Net Income Attributable to Owners of FarEasTone

8,734,984

8,354,128

9,123,795

9,607,895

2,753,808

Net Income Attributable to Non-Controlling Interest

72,75990,494110,086

97,99323,989Comprehensive Income Attributable to Owners of FarEasTone

8,720,589

8,218,606

8,413,094

8,764,038

2,926,334

Comprehensive Income Attributable to Non-Controlling Interest

72,30790,280110,071

105,370

24,051

Earnings Per Share

2.68

2.56

2.8

2.95

0.85

Debt to Asset Ratio

47.37

60.65

62.35

62.38

60.10

Long-term Funds to Properties, Plants and Equipment Ratio

308.98396.15354.11351.36340.14Current Ratio (%)

123.16113.92

78.37

90.47

74.52

Quick Ratio (%)

106.01

96.07

65.51

76.69

61.30

Times Interest Earned (times)

22.44

15.68

17.36

19.76

19.15

Accounts Receivable Turnover (times)

9.58

8.97

9.08

8.49

8.42

Average Collection Days

38.1

40.69

40.19

42.99

43.34

Inventory Turnover (times)

8.31

7.76

9.04

9.34

9.25

Accounts Payable Turnover (times)

12

9.37

9.11

9.20

9.36

Inventory Turnover Days

43.92

47.03

40.37

39.07

39.45

Properties, Plant and Equipment Turnover (times)

2.15

2.14

2.18

2.22

2.24

2022

Far Eastone Sustainability Report135Financial information in Recent 4 years (Unit: NT$1000)

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

1.
2.

Environmental Sustainability
CH3 Environmental
Sustainability

2019

2020

2021

2022

2023/01/01-2023/03/31 note1

Total Assets Turnover (times)

0.64

0.52

0.49

0.52

0.53

Return on Assets (%)

7.06

5.85

5.6

5.90

6.91

Return on Equity (%)

12.18

12.16

13.75

14.90

16.92

Income before Tax to Capital ratio (%)

33.79

31.28

34.01

36.82

41.74

Net Income Ratio (%)

10.5

10.62

10.82

10.89

12.45

Earnings per share (NT$)

2.68

2.56

2.8

2.95

0.85

Cash Flow Ratio (%)

97.02

117.96105.74

93.57

19.35

Cash Flow Equivalent Ratio (%)

94.17

75.33

84.18

90.90

90.46

Cash Reinvestment Ratio (%)

4.71

6.44

10.53

6.89

2.94

Operating Leverage

2.62

2.69

2.9

2.56

2.46

Financial Leverage

1.05

1.07

1.07

1.05

1.06

The financial statements for the first quarter of 2023 have been reviewed by CPA.
The distribution of the 2022 earnings has not been approved by the Shareholders' Meeting

Alignment with Sustainability Taxonomies
1. Framework of Sustainability Taxonomies

Social Inclusion
CH4 Social
Inclusion

FET utilizes “Taiwan Sustainable Taxonomy" as the mapping criteria for sustainable economic activities.
2. Aggregate Mapping

Appendix
Appendix

Capital Expenditure (Cash Capex without
spectrum spending)

Revenue
Aggregate of Eligibility & Alignment

Operational Expenditure (COGS + Opex
- D&A)

Amount ($M)%

Amount ($M)%

Amount ($M)%

Total Figure$89,151.4

100.00%$9,947.9

100.00%$58,943.3

100.00%Total of which is Taxonomy-Eligible$963.41.08%$779.87.84%$1,013.6

1.72%

Total of which is Taxonomy-Aligned$963.41.08%$636.26.40%$971.2

1.65%

Total of which is not Taxonomy Eligible$88,188.0

98.92%$9,168.1

92.16%$57,929.7

98.28%

2022

Far Eastone Sustainability Report1363. Activity-Level Breakdown of Mapping
Revenue
Eligible activities

Alignment with Items from Taiwan Sustainable Taxonomy

FET offers energy management platform applications and operates solar power plants as a service

1. Construction of renewable energy from Forward-Looking Economic Activities (FLEAs)

FET offers comprehensive low-carbon sustainable solutions in alignment with the government's"air conditioning in every classroom" policy, leveraging FET's self-developed "Energy Management
System". FET implements the system on campuses to create environmentally friendly and lowcarbon school environments.

10. Professional services related to energy conservation of buildings, such as technical consultations
for improving the energy efficiency of buildings (energy consulting, energy simulation, assistancewith building energy-related contracts), building performance assessments, energy management
services, and Energy Service Companies (ESCOs) from Forward-Looking Economic Activities (FLEAs)

FET delivers a smart green light management system to enhance the efficiency of street lighting.

4. Energy-efficient equipment manufacturing and applications of energy efficient technologies
from Forward-Looking Economic Activities (FLEAs)

Highlights
2022 ESG Highlights

FET assists Taiwan Power Company (TaiPower) in establishing a smart meter data management
system with communication modules, and enabling remote electricity data retrieval. This project
helps Taipower to promote time-based pricing to balance peak usage and stabilize the power grid.

4. Energy-efficient equipment manufacturing and applications of energy efficient technologies
from Forward-Looking Economic Activities (FLEAs)

Corporate Governance
CH1 Corporate
Governance

FET combines networked charging stations and platform systems to offer comprehensive electricvehicle charging services with real-time information to vehicle owners and facility managers for
effective management.

5. Application of low carbon transportation technologies from Forward-Looking Economic
Activities (FLEAs)

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Capital Expenditure & Operational Expenditure
Eligible activities

Alignment

FET establishes and acquires solar power installations, and offers energy management platform
services.

1. Construction of renewable energy from Forward-Looking Economic Activities (FLEAs)

Green smart data center construction incorporates Free Cooling natural intake cooling systems toenhance power efficiency, and reduce data center energy consumption.

4. Energy-efficient equipment manufacturing and applications of energy efficient technologies
from Forward-Looking Economic Activities (FLEAs)

FET constructs Solar-powered base station in remote mountainous areas, and spearheads the"Hualien Tribal Base Station" project. This innovative initiative combines wind and solar power
generation and employs microwave variable-frequency technology to further reduce power usage
by 66%, safeguarding communication quality in mountainous regions and promoting green
energy sustainability.

1. Construction of renewable energy from Forward-Looking Economic Activities (FLEAs)

Utilizing AI-driven power-saving technology, FET decreases energy consumption of base stations
for carbon reduction

4. Energy-efficient equipment manufacturing and applications of energy efficient technologies
from Forward-Looking Economic Activities (FLEAs)

Replacing outdated base station equipment with newer models featuring excellent power-saving
technology achieves a 50% energy saving benefit on base stations.

4. Energy-efficient equipment manufacturing and applications of energy efficient technologies
from Forward-Looking Economic Activities (FLEAs)

Upgrading old mobile and fixed voice systems with high-efficiency equipment and promoting
VoLTE for voice calls contributes to energy reduction, and facilitating the eventual shutdown of 3G
networks.

4. Energy-efficient equipment manufacturing and applications of energy efficient technologies
from Forward-Looking Economic Activities (FLEAs)

Base stations and stores adopt energy-efficient variable-frequency air conditioning and LED
lighting, resulting in energy and carbon savings.

4. Energy-efficient equipment manufacturing and applications of energy efficient technologies
from Forward-Looking Economic Activities (FLEAs)

2022

Far Eastone Sustainability Report137

GRI Standards index
Statement of use: FET Telecom has reported in accordance with the GRI Standards for the period 2022/01/01 to 2022/12/31
GRI 1 used: Foundation 2021
Applicable GRI Sector Standard(s): Not applicable

About FET
About
FET

General Disclosures
GRI Standards

Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Disclosure

Corresponding ChapterPage

2-1 Organizational Details

1.1.1 About FET

09

2-2 Entities included in the organization's sustainability reporting

About This Report

01

2-3 Reporting period, frequency and contact point

About This Report

01

2-4 Restatements of information

The reorganization of information in 2022 has been revealed ineach chapter-

2-5 External assurance

About This Report01

2-6 Activities, value chain and other business relationships

1.4.2 Most Considerate Communication52

2-7 Employees

3.4 Sustainable Supply Chain

82

2-8

4.1.1 Employee Structure Overview

92

2-9 Governance structure and composition

4.1.1 Employee Structure Overview

92

2-10 Nominating and selecting the highest governance body

1.3.1 Corporate Governance Organization29

2-11 Chair of the highest governance body

1.3.1 Corporate Governance Organization

29

2-12

1.3.1 Corporate Governance Organization29

2-13 Delegation of responsibility for managing impacts

1.2.3 Management of Material Topics

23

2-14 Highest governance body’s role in sustainability reporting

1.3.1 Corporate Governance Organization

29

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

GRI 2：2021
General Disclosures

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report138

GRI Standards

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability

GRI 2：2021
General Disclosures

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

GRI 3：2021
Material Topic
Disclosure2022

Disclosure

Corresponding ChapterPage

2-15 Conflicts of interest

1.2.3 Management of Material Topics

23

2-16 Communicating critical concerns

1.3.1 Corporate Governance Organization29

2-17 Collective knowledge of highest governance body

1.3.1 Corporate Governance Organization29

2-18 Evaluating the highest governance body’s performance

1.2.3 Management of Material Topics

23

2-19 Remuneration policies

1.3.1 Corporate Governance Organization29

2-20 Process for determining remuneration

1.3.1 Corporate Governance Organization

29

2-21 Annual total compensation ratio

4.1.2 Employee Salary and Welfare

95

2-22 Statement on sustainable development strategy

Massage from the Chairman and the President

03

2-23 Policy commitments

1.3.2 Ethical Corporate Management38

2-24 Embedding policy commitments

1.3.2 Ethical Corporate Management38

2-25 Processes to remediate negative impacts

1.2.3 Management of Material Topics

23

2-26 Mechanisms for seeking advice and raising concerns

1.3.2 Ethical Corporate Management38

2-27 Compliance with laws and regulations

1.3.2 Ethical Corporate Management38

2-28 Membership associations

1.3.4 External Participation49

2-29 Approach to stakeholder engagement

1.2.2 Stakeholders Engagement20

2-30 Collective bargaining agreements

FET has no labor union, this disclosure is not applicable.

-

3-1 Process to determine material topics

1.2.3 Management of Material Topics

23

3-2 List of material topics

1.2.3 Management of Material Topics

23

Far Eastone Sustainability Report139Specific Topic
Material

Disclosure
GRI 3：2021
Material Topic Disclosure

Corresponding Chapter

Page

Chapter

3-3 Management of material topics

1.2.3 Management of Material Topics

23

201-1 Direct economic value generated and distributed

1.1.1 Company Information

09

201-2 Financial implications and other risks and opportunities due toclimate change

3.1 Climate Strategy

66

GRI 202：2016Market Presence

202-1 Ratios of standard entry level wage by gender compared to
local minimum wage

4.1.2 Employee Salary and Welfare95

GRI 3：2021
Material Topic Disclosure

3-3 Management of material topics

1.2.3 Management of Material Topics

23

Highlights
2022 ESG Highlights

GRI 203：2016
Indirect Economic Impacts

203-1 Infrastructure investments and services supported

4.6 Industry Infrastructure

116

Corporate Governance
CH1 Corporate
Governance

GRI 204：2016
Procurement Practices

204-1 Proportion of spending on local suppliers

3.4.2 FET Supply Chain Management Policy

83

Smart Sustainability
CH2 Smart
Sustainability

GRI 3：2021
Material Topic Disclosure

3-3 Management of material topics

1.2.3 Management of Material Topics

23

302-1 Energy consumption within the organization

3.2 Overview of FET’s Environmental Footprint73

302-3 Energy intensity

3.2 Overview of FET’s Environmental Footprint73

302-4 Reduction of energy consumption

3.3.3 FET Overall Energy Management andConservation

76

302-5 Reductions in energy requirements of products and services

3.3.4 Environmental Resources Management

81

GRI 303：2018
Water

303-3 Water withdrawal

3.2 Overview of FET's Environmental Footprint73

GRI 3：2021
Material Topic Disclosure

3-3 Management of material topics

1.2.3 Management of Material Topics

23

305-1 Direct (Scope 1) GHG emissions

3.1 Climate Strategy

66

305-2 Energy indirect (Scope 2) GHG emissions

3.1 Climate Strategy

66305-3 Other indirect (Scope 3) GHG emissions

3.1 Climate Strategy

66

305-4 GHG emissions intensity

3.2 Overview of FET’s Environmental Footprint73

305-5 Reduction of GHG emissions

3.1 Climate Strategy

66

About FET
About
FET

GRI 201：2016
Economic PerformanceContents
Contents
Message from
Messagefrom Management
Management

Environmental Sustainability
CH3 Environmental
Sustainability

GRI 302：2016
EnergySocial Inclusion
CH4 Social
Inclusion
Appendix
Appendix

GRI 305：2016
Emissions

2022

Far Eastone Sustainability Report140Material

Disclosure

GRI 306：2020
Effluents and Waste

About FETAbout
FET
GRI 3：2021
Material Topic Disclosure

Contents
Contents

GRI 308：2016
Supplier Environmental Assessment

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

GRI 401：2016
Employment

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
GRI 403：2018
Occupational Health and Safety

Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion

GRI 3：2021
Material Topic Disclosure

Appendix
Appendix

GRI 404：2016
Training and Education

GRI 405：2016
Diversity and Equal Opportunity

2022

Corresponding Chapter

Page

Chapter

306-3 Waste generated

3.2 Overview of FET’s Environmental Footprint

73

306-4 Waste diverted from disposal

3.2 Overview of FET’s Environmental Footprint

73

306-5 Waste directed to disposal

3.2 Overview of FET’s Environmental Footprint73

3-3 Management of material topics

1.2.3 Management of Material Topics

23

308-1 New suppliers that were screened using environmental criteria

3.4 Sustainable Supply Chain

82

308-2 Negative environmental impacts in the supply chain andactions taken

3.4 Sustainable Supply Chain82

401-1 New employee hires and employee turnover

4.1.1 Employee Structure Overview

92401-2 Benefits provided to full-time employees that are not provided
to temporary or part-time employees

4.1.2 Employee Salary and Welfare

95

401-3 Parental leave

4.1.2 Employee Salary and Welfare

95403-1 Occupational health and safety management system

4.5 Employee Health and Workplace Safety113403-3 Occupational health services

4.5 Employee Health and Workplace Safety

113403-5 Worker training on occupational health and safety

4.5 Employee Health and Workplace Safety

113403-6 Promotion of worker health

4.5 Employee Health and Workplace Safety

113403-9 Work-related injuries

4.5 Employee Health and Workplace Safety

113403-10 Work-related ill health

4.5 Employee Health and Workplace Safety

113

3-3 Management of material topics

1.2.3 Management of Material Topics

23404-1 Average hours of training per year per employee

4.2.2 Growth and Development

103404-2 Programs for upgrading employee skills and transition
assistance programs

4.2.2 Growth and Development

103404-3 Percentage of employees receiving regular performance andcareer development reviews

4.2.2 Growth and Development

103405-1 Diversity of governance bodies and employees

1.3.1 Corporate Governance Organization

2992405-2 Ratio of basic salary and remuneration of women to men

4.1.1 Employee Structure Overview

95

Far Eastone Sustainability Report141Material

Disclosure

Corresponding Chapter

Page

Chapter

GRI 3：2021
Material Topic Disclosure

3-3 Management of material topics

4.1.2 Employee Salary and Welfare

23

About FET
About
FET

GRI 413：2016
LOCAL COMMUNITIES

413-1 Operations with local community engagement, impact
assessments, and development programs

1.2.3 Management of Material Topics

118

Contents
Contents

GRI 3：2021
Material Topic Disclosure

3-3 Management of material topics

4.7 Charity Care Projects

23

Message from
Messagefrom Management
Management

GRI 414：2016
Supplier Social Assessment

414-1 New suppliers that were screened using social criteria

1.2.3 Management of Material Topics

82

414-2 Negative social impacts in the supply chain and actions taken

3.4 Sustainable Supply Chain

82

417-1 Requirements for product and service information andlabeling

3.4 Sustainable Supply Chain

52

417-2 Incidents of non-compliance concerning product and service
information and labeling1.4.2 Most Considerate Communication

52

417-3 Incidents of non-compliance concerning marketing
communications

1.4.2 Most Considerate Communication

52

GRI 3：2021
Material Topic Disclosure

3-3 Management of material topics

1.2.3 Management of Material Topics

23

GRI 418：2016
CUSTOMER PRIVACY

418-1 Substantiated complaints concerning breaches of customer
privacy and losses of customer data

1.3.3 Risk Management40

GRI 3：2021
Material Topic Disclosure

3-3 Management of material topics

1.2.3 Management of Material Topics

23

Custom Topic

Digital Innovation Strategy and Application

2.2 Smart Application

60

Highlights
2022 ESG Highlights
GRI 417：2016MARKETING AND
LABELING

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report142

SASB index
Statement of use: FET Telecom has reported ESG information for the period from January 1st to December 31st, 2022, in accordance with SASB guidelines. SASB Industry Categories:
SASB
Metrics
Topic2022 Accounting Metric
Note
ChapterPage
Code

About FET
About
FET

Accounting

TC-TL130a.1

Environmental(1) Total energy consumed, (2) percentage grid
Footprint ofelectricity, (3) percentage renewable
Operations

Contents
Contents

Accounting

TC-TL220a.1

Accounting

TC-TL220a.2

Accounting

TC-TL220a.3

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix(1) Total energy consumed：2,316,072.22 GJ, (2) percentage gridelectricity :98.91%, (3) percentage renewable:0.49%

3.2 Overview of FET's
Environmental Footprint

73

Description of policies and practices relating tobehavioral advertising and customer privacy

Please refer to” 1.3.3 Risk Management”.

1.3.3Risk Management

40

Number of customers whose information is used
for secondary purposes

79.9%

1.3.3 Risk Management

40

Total amount of monetary losses as a result ofNo such incidents in 2022
legal proceedings associated with customer Privacy

1.3.3 Risk Management

40

TC-TLAccounting
220a.4(1) Number of law enforcement requests forcustomer information, (2) number of customers
whose information was requested, (3) percentage
resulting in disclosure

The Number of government requests for customer information is 195,404
in 2022, all requests were duly replied.

1.3.3 Risk Management

40

TC-TL230a.1(1) Number of data breaches, (2) percentage
involving personally identifiable information (PII),(3) number of customers affected

No such incidents in 2022.

1.3.3 Risk Management40

Description of approach to identifying andaddressing data security risks, including use ofthird-party cybersecurity standards

Please refer to"1.3.3 Risk Management".

1.3.3 Risk Management40(1) In 2022, FET recycled a total of 22,580cell phones, (2) 76% reused,(3)17% recycled, (4) 7% Landfilled

3.3.4 Environmental
Resources Management81

No such incidents in 2022.

1.3.2 Ethical Corporate
Management38

FFT provides consistent download speeds for all types of content, with a
5G download speed of 316.32Mbps and an average download speed of
82.2Mbps for 4G users.

4.6.1 Communication
Infrastructure and Quality

116

Accounting

Data Privacy

Data Security
TC-TLAccounting
230a.2
Accounting

TC-TL440a.1

1) Materials recovered through take back
Product
programs, percentage of recovered materials that
End-of life
Management were (2) reused, (3) recycled, and (4)Landfilled

Accounting

TC-TL520a.1

Total amount of monetary losses as a result oflegal proceedings associated with anticompetitive
behavior regulations

Accounting

TC-TL520a.2

Competitive Average actual sustained download speed of (1)Behavior & owned and commercially-associated content andOpen Internet (2) non-associated content

Accounting

TC-TL520a.3

Description of risks and opportunities associatedwith net neutrality, paid peering, zero rating, andrelated practices

The management of paid interconnection support is carried out inaccordance with the Telecommunications Regulatory Act, and we continue to pay attention to issues related to net neutrality and zero rating.

-Accounting

TC-TL550a.1(1) System average interruption frequency and (2)customer average interruption duration(1)System average interruption frequency 0.004 and (2) customer averageinterruption duration：0.0222 hours

4.6.1 Communication
Infrastructure and Quality

116

In case of service interruption, we decide whether to active the BusinessContinuity Plan(BCP) and initiate emergency response depending on the
4.6.1 Communication
status of the affected customers by integrating the company’s decision
Infrastructure and Quality
makers, network department, customer service, public relations andfinance departments to assess the risk of the incident and potential losses.

116

Activity

2022

Managing
Systemic Risks
TC-TLDiscussion of systems to provide unimpeded
form
550a.2
service during service interruptions

Far Eastone Sustainability Report143

TCFD Index
Code

Recommended Disclosures

2022 Disclosures

Page

TCFD 1(a)Describe the board* s oversight of climate-relatedrisks and opportunities,

FET has formulated the Risk Management Policy based on ISO 31000 Risk Management- Guidelines,
which has been approved by the Board of Directors to be the guiding principles and basis for all businessgroups.

71

Contents
Contents

TCFD 1(b)Describe management' s role in assessing andmanaging climate-related risks and opportunities.
Strategy

FET’s Board-level “Risk Management Committee” has an “Environment and Energy Management
Committee”, which is chaired by the CFO. Members include the heads of different departments, andquarterly meetings are convened to discuss energy and environment-related targets and performance.

75

Message from
Messagefrom Management
Management

TCFD 2(a)Describe the climate-related risks and opportunities
the organization has identified over the short,medium, and long term

FET had identified and prioritized climate-related risks. Please refer to “3.1 Climate Strategy.”

69

Highlights
2022 ESG Highlights

TCFD 2(b)Describe the impact of climate-related risks andopportunities on the organizations businesses,
strategy, and financial planning

FET has implemented financial impact analysis for climate scenarios, focusing on the physical risk of"increased frequency of severe typhoons" and the transition risk of "increased pricing of GHG emissions".
Please refer to “3.1 Climate Strategy”.

70

TCFD 2(c)Describe the resilience of the organization's
strategy, taking into consideration different
climate-related scenarios, including a 2°C or lower
scenario.

RCP2.6 and RCP8.5 scenario analysis for physical risk “increased frequency of severe typhoons”. IEA
2DS and IEA B2DS scenario analysis for transition risk” Failure of government to reduce emissions “and“Higher power generation costs” Please refer to “3.1 Climate Strategy”.

70

TCFD 3(a)Describe the organizations processes for
identifying and assessing climate-related risks.

Please refer to “3.1 Climate Strategy”.

66

TCFD 3(b)Describe the organization" s processes for
managing climate related risks.

Please refer to “3.1 Climate Strategy”.

TCFD 3(c)Describe how processes for identifying, assessing,and managing climate-related risks are integrated
into the organization’s overall risk management.

The members of the Risk Management Committee are appointed by the board of directors, and morethan half of them are independent directors. Committee aims to enforce management of financial
risks, strategic and business risks, information security risks, and environmental and energy risks within
the organization from a more comprehensive perspective and scope and through collaboration among
different levels to implement enterprise risk management. Please refer to “1.3.3 Risk Management”.

40

TCFD 4(a)Disclose the metrics used by the organization
to assess climate-related risks and opportunities
in line with its strategy and risk management
process.

GHS emissions, annual office power consumption EU per ping, IDC average power efficiency PUE,
average power consumption from FET directly operated stores, base station power consumption per 1GBtransmission, total renewable energy generated. Please refer to "1.2.1 Sustainable Vision and Strategy".

15

TCFD 4(b)Disclose Scope 1, Scope 2 and, if appropriate,
Scope 3 greenhouse gas (GHG) emissions and therelated risks.

Scope 1: 4,667.63 ton CO2e, scope 2: 286,818.20 ton CO2e, scope 3: 364,564.33 ton C02e. Please refer
to Appendix ESG Data.

72

TCFD 4(c)Describe the targets used by the organization to
manage climate-related risks and opportunities
and performance against targets.

GHG emissions, annual office power consumption EUl per ping, IDC average power efficiency PUE,
average power consumption from FET directly operated stores, base station power consumption per 1GBtransmission, total renewable energy generated. Please refer to "1.2.1 Sustainable Vision and Strategy".

15

About FET
About
FET

Governance

Strategy

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

RiskManagement

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Metrics andTargets

2022

Far Eastone Sustainability Report144

Appendix A
Summary of Assurance Subject Matters
ESG

About FET
About
FET
Contents
Contents

Governance related
indicator

Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance

Subject Matters

Selected standards (the Criteria)

Page

The format of this report follows the international reporting standards and frameworks:
The International Integrated Reporting(IR) Framework published by The Value Reporting
Foundation.
The GRI Sustainability Reporting Standards issued by the Global Reporting Initiative (GRI).
The Sustainability Accounting Standards Board (SASB) guidelines for the telecommunicationsindustry.

The structure of this report is based on the International IR Framework foruse, guiding principles, and content elements. It also adheres to the nine
requirements of GRI 1: Foundation 2021, disclosure requirements of GRI
2: General Disclosures 2021, and materiality assessment process of GRI 3:
Material Topics 2021. Additionally, the report complies with the requirementsof the Telecommunication Services industry standards published by SASB.

1Energy consumption is reported based on GRI 302-1: Energy consumption
within the organization, and SASB TC-TL-130a.1 reporting requirements.
For fossil fuels, the data is based on third-party verified Greenhouse Gas
Inventory;
For electricity, the data is obtained from external supplier payment invoices,which calculate the total electricity consumption, and the allocation logic or
certificate of electricity expenses for each site's property owner;
For renewable energy, the data is based on the solar photovoltaic capacity
factor announced by external suppliers for each county and city, multipliedby the solar photovoltaic installation, and further multiplied by 365 days.
For heating value, the data is based on the energy product unit heating value
table issued by Bureau of Energy, Ministry of Economic Affairs, R.O.C..

73

The weight and percentage of mobile device recycling and resale are basedon the reporting requirements of Taiwan Stock Exchange Corporation Rules
Governing the Preparation and Filing of Sustainability Reports, SASB TC-TL440a.1.
According to the record of AROCA and the third party, each mobile phonecounted by 203 grams, converting into metric tons. Recycled accessories
counted by kilograms, converting into metric tons.

81

Complaints of personal information and privacy received from authorities
and customers are based on GRI 418 and Telecommunication consumer
mediation center monthly report of November 2022.
Based on SASB TC-TL- 220a.3 there is on monetary losses as a result oflegal proceedings associated with costumer privacy, according to FMS andNational Communications Commission platform.

46

TopicsEnvironmental
relatedindicator

Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Energy Consumption (unit: GJ 1 /MWh)
Purchased non-renewable energy source:
Fossil fuels (Direct energy consumption) 13,833.86 GJ / 3,842.74 MWh
Electricity (Indirect energy consumption) 2,290,776.08 GJ / 636,181,78 MWh
Renewable energy consumption 2:
Solar energy (Indirect energy consumption) 11,462.29 GJ / 3,183.24 MWh
1.

The heating value is calculated by using the latest energy product unit heating value tableannounced on the website of the Bureau of Energy, Ministry of Economic Affairs. Energy
consumption is calculated by multiplying energy usage by unit heating value and converting togigajoules (GJ).
2.
The GJ consumption of renewable energy disclosed is estimated power generated for theconstruction of solar power generation

Mobile Phone Recycling and Resale

Handling of recycled cell phones

Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

Environmental
relatedindicator

Reused: donated or sold afterrefurbishment
Recycled: disassembled parts or materials
that have been re-entered into the
manufacturing process (not limited tothe cell phone manufacturing process)WeightTotal quantity
Percentage
(pcs)
(%)
(metric tons)
17,186

5,394

Landfilled: as waste
2.

Socialrelatedindicator

2022

3.49

1.09

76

17
7

Calculated on an average of 203 grams per piece.

FET received a total of 2 complaints related to personal data and privacy from regulatory
authorities and customers. All cases were thoroughly investigated and resolved without any
violation of personal data and privacy laws or resulting financial losses.

Far Eastone Sustainability Report145Socialrelatedindicator

The system average interruption frequency stood at 0.4%, while the customer averageinterruption duration was 0.0222 hours[1] System average interruption frequency = Number of service interruption users / Total
number of users[2] Customer average interruption duration = Total service outage time / Number of affectedusers

The System average interruption frequency and customer averageinterruption duration are based on internal statistic system.
The total number of users is based on the statistics of December 2022
announced by National Communications Commission.

116

Socialrelatedindicator

Achieved an user average download speed of 82.2Mbps

The user average download speed is based on SASB TC-TL-520a.2 reporting
requirements and relies on the Speedtest Awards 2022 report, which
provides evaluations and results of Taiwan's telecommunications companies.

116

Number of employees trained, hours of training, and gender distribution
in 2022 is based on GRI 404-1: Average hours of training per year per
employee reporting requirements.
For the number of employees, the data is obtained from the year-end onduty staff statistics compiled by the internal human resources management
group.
The average training hours are calculated based on the total training hoursof employees categorized by gender and job grade, as recorded in theinternal education and training system, and divided by the number of onduty employees at the year-end.

109

Number of employees trained, hours of training, and gender distribution
in 2022 is based on GRI 404-1: Average hours of training per year per
employee reporting requirements.
For the number of employees, the data is obtained from the year-end onduty staff statistics compiled by the internal human resources management
group within ARCOA Communication Co., Ltd.
The average training hours are calculated based on the total training hours of
employees categorized by gender and job grade, as recorded in the internal
education and training system within ARCOA Communication Co., Ltd., anddivided by the number of on-duty employees at the year-end.

109

About FET
About
FET
Contents
Contents

Total Number of Employees Trained, Hours of Training, and Gender Distribution in 2022

GenderMessage from
Messagefrom Management
Management
Highlights
2022 ESG Highlights

Socialrelatedindicator

Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability

Female

Male

Total

Job Grade

Total

Ave-rage
hours oftrain-ing

Total

Ave-rage
hours oftrain-ing

Total

Ave-rage
hours oftrain-ing

General Employee

2,469

52

2,409

45

4,878

49

Primary Supervisor

40

46

100

40

140

41

Mid-Level
Supervisor

102

34

204

35

306

35

Senior Executive

18

17

28

10

46

13

Total

2,629

51

2,741

44

5,370

47.5

Total Number of Employees Trained, Hours of Training, and Gender Distribution in 2022

GenderSocial Inclusion
CH4 Social
Inclusion
Appendix
AppendixSocialrelatedindicator

Female

Male

Total

Job Grade

Total

Ave-rage
hours oftrain-ing

Total

Ave-rage
hours oftrain-ing

Total

Ave-rage
hours oftrain-ing

General Employee

212

23.3

102

10.4

314

19.1

Primary Supervisor

16

40.4

17

21.9

33

30.9

Mid-Level
Supervisor

7

15.9

11

12.5

18

13.8

Senior Executive

0

0

2

3

2

3

Total

235

24.1

132

11.8

367

19.7

note.

Training hours: the actual number of hours attended by full-time (including former) staff members who have participated in the training courses.
The number of people does not include employees with temporary contract and employees who failed in the courses.

note.

2022

Far Eastone Sustainability Report146Third-Party Assurance Statement

About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report147About FET
About
FET
Contents
Contents
Message from
Messagefrom Management
Management
Highlights
2022 ESG Highlights
Corporate Governance
CH1 Corporate
Governance
Smart Sustainability
CH2 Smart
Sustainability
Environmental Sustainability
CH3 Environmental
Sustainability
Social Inclusion
CH4 Social
Inclusion
Appendix
Appendix

2022

Far Eastone Sustainability Report148