Climate Change Data

Environmental Metrics

ESG Focus Areas

• Economic Responsibility
• Social Responsibility
• Environmental Responsibility

Environmental Achievements

• Initiated Green Action Plan to conserve energy and reduce waste.
• Implemented new techniques to manage resource consumption, improve resource efficiency and decrease environmental impact.
• Worked closely with business partners to build a greener industry chain.
• Reduced power consumption per business unit (target: 40% decrease by 2010 compared to 2005).

Social Achievements

• Continued to help implement the Village Connected Project, expanding mobile telecommunications coverage to remote areas.
• Provided agricultural information services and rural information network to rural customers.
• Maintained first-rate network quality, contributing to protecting people’s lives during disasters.
• Built the world’s highest base station on Mount Everest.
• Provided financial assistance for cataract surgery for the elderly and supported AIDS orphans.
• Implemented programs to reduce spam and promote a positive mobile phone messaging culture.
• Supported philanthropic efforts focused on education.
• Improved customer satisfaction rate.

Governance Achievements

• Established an independent legal department and improved legal risk management.
• Promoted the core value of “Responsibility Makes Perfection.”
• Established a CSR management system.
• Developed an anti-corruption system and conducted relevant staff trainings.

Climate Goals & Targets

Environmental Challenges

• Rapid expansion of business posed challenges to management systems and risk control.
• Customer concerns about transparent pricing and fraudulent activities.
• Spam and unwanted messages.
• Environmental impact of electronic waste.
• Electromagnetic fields (EMF) concerns.

Mitigation Strategies

• Implemented innovative management structures and methods.
• Revised customer contracts, improved billing accuracy, added alerts, and minimized fraudulent activities.
• Implemented spam prevention programs, tightened technical controls, and penalized service providers.
• Improved waste management practices, particularly battery recycling.
• Integrated strict EMF testing and requirements into procurement processes, consulted with local communities, and optimized network layout.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• “Golden Value Chain Program” to manage business partners transparently.
• “Comprehensive Supplier Skills Assessment Form” including labor conditions.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Energy efficiency improvements

Reporting Standards

Frameworks Used: UN Global Compact, GRI G3 Sustainability Reporting Guidelines, GRI Telecommunications Sector Supplement

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Energy-efficient network equipment; renewable energy based power sources for base stations; informatics solutions to reduce energy consumption in other industries.

Awards & Recognition

• 2007 World Summit on the Information Society Special Recognition Award
• 2007 Rural Informatization Application Golden Award
• The Fourth Chinese Environmental Excellence Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Rural Development
• Digital Divide
• Employee Well-being
• Customer Satisfaction
• Community Investment
• Supply Chain Sustainability
• Information Security
• Healthy Communication Culture

Environmental Achievements

• Reduced energy use per unit of telecommunications traffic by 14% compared to 2008 levels, saving 1.8 billion kWh of electricity.
• Constructed 6,372 base stations powered by renewable energy.
• Reduced average power consumption and installation space of equipment by over 20% every 2 years.
• Recycled 5.31 million mobile phones and accessories through the Green Boxes campaign.
• Reduced SIM card base consumption by about 50% and card base pollution by about 54% through mini-SIM cards.

Social Achievements

• Helped our parent company support the Chinese government in increasing telecommunications coverage in administrative villages to 99.8%.
• Launched the China Mobile Charity Foundation.
• Improved employee satisfaction rate with corporate culture by 2.81 points to 84.91 compared to 2008.
• Provided training for 11,000 primary and secondary school principals.
• Established 175 China Mobile Libraries and 175 multi-media classrooms.
• Supported 9,791 children orphaned by AIDS and other disadvantaged children through the Warm China 12•1 program.

Governance Achievements

• Established CSR Management Policies.
• Implemented the “5 Bans in Customer Service” regulation to ensure customer information security.
• Improved information security management system, reducing customer complaints related to information security.

Climate Goals & Targets

Environmental Challenges

• Increased popularization of telecommunication services and market maturity.
• Intensification of competition.
• Restructuring of the sector and market conditions.
• Public concern about EMF from base stations.
• Spam messages and unhealthy content.
• Challenges in providing affordable and accessible services in rural areas.

Mitigation Strategies

• Continuous technical advancements and innovative business models.
• Regular engagement with key stakeholders to develop solutions.
• EMF environmental impact assessments and communication with communities.
• Comprehensive approach to managing spam, including self-regulation and cooperation with government.
• Promoting specially-priced packages and expanding rural sales channels.
• Implementing energy-saving technologies and clean energies.

Supply Chain Management

Supplier Audits: 53 key suppliers signed a strategic memorandum of understanding on green initiatives.

Responsible Procurement

• Green standards in supply chain for product design, production processes, and raw materials.
• Energy conservation rating standard for telecommunications equipment.
• B2B platforms for commercial transactions and e-Procurement.

Climate-Related Risks & Opportunities

Opportunities

• Development of energy-efficient products and services.
• Opportunities for low-carbon solutions in various industries.

Reporting Standards

Frameworks Used: UN Global Compact, GRI G3, GRI Telecommunications Sector Supplement, Guidelines for China Corporate Social Responsibility Reporting (CASS-CSR 1.0)

Sustainable Products & Innovation

• Energy-efficient base stations and air conditioning systems
• Green SIM cards
• Green packaging

Awards & Recognition

• Dow Jones Sustainability Indexes
• First Class Award for Management Innovation
• China Packaging Star silver medal
• WorldStar Packaging Design Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Social Development
• Governance
• Digital Divide
• Customer Satisfaction
• Employee Well-being

Environmental Achievements

• Electricity consumption per unit of telecommunications traffic decreased by 14.8% compared to 2009, representing a 50% drop from 2005.
• Constructed more than 7,700 wind and solar power base stations.
• Recycled 6.74 million pieces of unwanted mobile phones, batteries and other accessories.

Social Achievements

• Launched Mobile Market, a platform for industry chain collaboration and innovative business models, with 1.1 million registered developers and 35 million registered customers.
• Provided emergency communications support during numerous disasters, restoring communications quickly and offering various relief services.
• Implemented the “Consumer Transparency” service program to improve customer understanding of billing and value-added services.
• Launched the “Mobile Health” initiative, providing various health-related services and applications.
• Advanced the Village Connected Project, expanding mobile network coverage to 89,000 remote villages.
• Developed various information-based applications for modern agriculture, improving efficiency and productivity.
• Implemented the “Warm China 12.1 Charity Fund” program, providing assistance to over 12,000 children orphaned by AIDS.
• Launched the Mobile Market Million Youth Entrepreneurship Action, supporting over 1.1 million young people.

Governance Achievements

• Established the China Mobile Sustainability Index System for comprehensive assessment of sustainable development capacity.
• Launched the CSR risk management system, establishing systems in 20 provincial subsidiaries.
• Improved information security management, establishing a nationwide accountability system and implementing stricter measures to protect customer privacy.
• Enhanced stakeholder engagement through various methods, including surveys, reports, and workshops.

Climate Goals & Targets

Environmental Challenges

• Energy consumption in network operations.
• Supply chain disruptions due to natural disasters.
• Customer complaints regarding billing accuracy.
• Managing spam and unhealthy content.
• Narrowing the urban-rural digital divide.
• Addressing climate change impacts.
• Ensuring food safety.
• Promoting employment.

Mitigation Strategies

• Implemented the “Green Action Plan” focusing on energy conservation and emissions reduction.
• Developed alternative sourcing strategies and improved emergency response capabilities.
• Improved billing systems and implemented the “Consumer Transparency” program.
• Established spam monitoring and management systems and implemented stricter measures to control unhealthy content.
• Advanced the Village Connected Project and developed rural information services.
• Developed low-carbon information applications and promoted energy-efficient technologies.
• Developed “animal traceability” and “food traceability” applications.
• Launched the Mobile Market Million Youth Entrepreneurship Action.

Supply Chain Management

Supplier Audits: 157 major suppliers surveyed

Responsible Procurement

• Green Action Plan strategic cooperation memos with 53 suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: UN Global Compact, GRI G3 Sustainability Reporting Guidelines, GRI Telecommunications Sector Supplement, Guidelines for China Corporate Social Responsibility Reporting (CASS-CSR 1.0)

Sustainable Products & Innovation

• Mobile reading services
• Green SIM cards
• Energy-efficient network equipment
• Mobile health applications
• Rural information services

Awards & Recognition

• Dow Jones Sustainability Indexes (DJSI) for the third consecutive year
• Hang Seng Corporate Sustainability Index Series
• Green Low-Carbon Enterprise Pioneer Award
• Energy Conservation and Emissions Reduction Model Enterprise
• China's Top Ten Energy Conservation Contribution Enterprise
• Outstanding Contribution Enterprise in Promoting Energy Conservation and Emissions Reduction with ICT
• Gold Award on Sustainable Development (Green Packaging)
• First-class prize at the Seventh Management Innovation Evaluation of the National Communications Industry

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Responsible Supply Chains
• Customer Service Improvement
• Employee Development
• Community Engagement
• Environmental Protection
• Innovation
• Narrowing the Digital Divide

Environmental Achievements

• Energy consumption per unit of telecommunications traffic decreased by 14.6% compared to last year.
• Cumulative investment on Green Action Plan reached 570 million yuan.
• Achieved 100% recycling rate of approximately 130 million Ah of batteries.

Social Achievements

• Launched the “Warm China 12.1 Charity Fund” to support children orphaned by AIDS or living in extreme poverty.
• Implemented the “China Mobile Heart Caring Campaign” to provide free congenital heart disease screening and surgeries for impoverished children.
• Expanded the Employee Assistance Programme (EAP) to over 200,000 employees.
• Provided over 50 million person-times of employment information through the “Rural Job Search” application.

Governance Achievements

• Included in the Dow Jones Sustainability World Index for the fifth consecutive year.
• Strengthened risk management and internal controls, intensified efforts in optimising anti-corruption mechanisms.
• Implemented the “3+1” policy decision-making mechanism.

Climate Goals & Targets

Environmental Challenges

• Slowing macroeconomic growth, saturated telecommunications market, fierce competition, emergence of new services.
• Combating corruption and promoting clean governance.
• Addressing customer concerns regarding billing accuracy, information security, and service convenience.
• Managing the environmental impact of network operations.

Mitigation Strategies

• Committed investment in transformation and innovation for mobile internet, improved management efficiency, risk control, and anti-corruption measures.
• Launched initiatives to improve billing accuracy, strengthen information security, and enhance service processes.
• Implemented a Green Action Plan focusing on energy conservation and emissions reduction.
• Strengthened stakeholder engagement through multiple channels.

Supply Chain Management

Supplier Audits: 174 suppliers assessed in Henan, 167 passed.

Responsible Procurement

• Two-tiered centralised procurement system.
• Annual procurement catalogues.
• Electronic procurement platform.
• Supplier portal for reporting procurement-related problems.
• Mandatory Integrity and Honesty Promise with suppliers.
• Incorporation of SA8000 and ISO 14000 standards into supplier rating criteria.

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI (G3.1), UNGC Ten Principles, ISO 26000, HKEx Guideline for Environmental, Social and Governance Reporting, CASS-CSR 2.0

Certifications: Null

Third-party Assurance: PricewaterhouseCoopers Zhong Tian CPAs Limited Company

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Easy Home Access
• Internet of Things air conditioner
• Sense of Security Card
• Mobile UnionPay Dragon Card

Awards & Recognition

• Inclusion in Dow Jones Sustainability World Index for the fifth consecutive year.
• Inclusion in Hang Seng Sustainability Index for the third consecutive year.
• Inclusion in Fortune magazine’s 2012 World’s Most Admired Companies List.
• Sustainability Excellence Award from the Chamber of Hong Kong Listed Companies.
• China Charity Award’s “Corporation with the Most Love-filled Donations” award.

Environmental Metrics

ESG Focus Areas

• A Healthier and More Stable China Mobile
• More Satisfied Stakeholders
• An Information-Enhanced Future

Environmental Achievements

• Reduced comprehensive energy consumption per unit of telecommunication traffic by 38% over 2012
• 100% recycled 86.98 million Ahs discarded lead acid batteries through professional channels
• Reduced electricity consumption by 52 million kWh each year (equivalent to a reduction of CO2 emission by 39,000 tonnes) through alternative energy base stations

Social Achievements

• Launched the “Most Admirable Mobilers” campaign to recognize employees
• Provided free screening for 5,241 children and sponsored 748 children for congenital heart disease surgery through the “Heart Caring Campaign”
• Improved customer satisfaction rate to 77.75%, 0.25 ppt higher than the beginning of the year

Governance Achievements

• Improved anti-corruption systems, launched internal audits and inspections, and increased employee awareness of business ethics
• No major incident of leaking customer information

Climate Goals & Targets

Environmental Challenges

• Growth of traditional services such as text message, multimedia message, and voice has stagnated or even fallen. Profit declined in Q3 2013 for the first time in history due to these challenges and increasing investments in 4G infrastructure.
• Poor Mobile Internet experience led to a slight decline in end-to-end network quality satisfaction rate.
• Unauthorised service subscription and charges

Mitigation Strategies

• Embraced the new era with strategic restructuring and innovative reforms. Obtained 4G operating license and launched new service brand “and!”.
• Conducted more analyses on consumer network usage behaviours and data traffic patterns, and optimised our capacity to forecast and allocate network resources, and replaced network oriented management with the optimisation of customer experience and network value.
• Took specific measures to protect customer right to know and improved service process to ensure complete consumption transparency, including contract signing, service subscription, usage, and billing.

Supply Chain Management

Supplier Audits: 7,037 suppliers; 455 first-level suppliers (100% assessed); 6,829 second-level suppliers; 86 suppliers with problems found during audits; 2 suppliers solved problems; 0 suppliers discontinued cooperation due to quality problems.

Responsible Procurement

• Mandatory Integrity Commitment with all suppliers
• Workplace Integrity Code of Conduct for headquarters buyers
• Compliance training for suppliers
• Procurement compliance inspections and supply chain management inspections

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, United Nations Global Compact Ten Principles, ISO 26000, Chinese CSR Report Preparation Guide (CASS-CSR 3.0)

Third-party Assurance: PricewaterhouseCoopers Zhong Tian CPAs Limited Company

Sustainable Products & Innovation

• Integrated Alternative Energy Base Station
• Green cable reel

Awards & Recognition

• 2013 UN Global Compact China Best Practice
• Golden Bee 2013 Excellent CSR Report Leading Enterprise Award
• 2013 Public Transparent Enterprise Model Award
• 2013 Green Data Centre Award (Modular Warehouse IDC Project)

Environmental Metrics

ESG Focus Areas

• Responsible Business
• Inclusive Growth
• Sustainable Values

Environmental Achievements

• 13.7% decrease in overall energy consumption per unit of information flow compared with 2013
• 391,000 base stations equipped with remote power monitoring system
• 13,000 alternative energy base stations constructed, with over 9,200 using solar energy (equivalent to annual power saving of 56 million kWh)
• e-bills saved nearly 190 million sheets of A4-sized paper each month, and green package reduced timber use by over 100,000 cubic metres
• Average annual PUE (Power Use Efficiency) fell to the range of 1.25~1.35 for data centers, far below the national average 1.73

Social Achievements

• Launched the “China Mobile Information Platform for Left-behind Children Care”, providing remote education and family communication
• Launched the “and-Life” medical application, enabling online appointment booking and result access
• Launched the “Yellow Wristband” program, distributing over 200,000 wristbands with positioning chips to prevent elderly people from getting lost
• China Mobile’s Employment Support Programme for the physically challenged provided customer service hotline positions and training
• “Blue Dream” Education Aid Plan trained 11,539 principals and donated 200 libraries and 190 multimedia classrooms

Governance Achievements

• Formulated and issued China Mobile Management Approach for Risk Assessment on Major Projects
• Completed a company-wide internal control system highly integrated with business operations
• Organised over 3,000 anti-corruption training sessions with participation of more than 460,000 person-times
• Implemented the Month of Anti-Corruption Education programme

Climate Goals & Targets

Environmental Challenges

• Decline of traditional telecommunication businesses
• Severe competition from industry peers and the Internet
• Concerns about EMF from base stations
• Customer concerns about billing accuracy and unauthorized service subscriptions
• Information security threats such as telecom fraud, malware, and online pornographic information

Mitigation Strategies

• Accelerated transformation and development, sped up the construction of smart pipeline, and innovated on mobile Internet services
• Strengthened three key drivers, accelerated the adjustment of strategic focuses, and promoted innovation-driven development
• Developed the Electromagnetic Fields Management Methods and Assessment Approaches, conducted awareness-raising activities, and provided EMF information booklets
• Built a two-tier billing data management system, provided real-time data usage reminders, and implemented the Refund First policy
• Developed the disguised base station real-time alarm system, improved spam message control platform, and implemented Network Cleaning campaign

Supply Chain Management

Supplier Audits: 1,502 assessments on first-level suppliers

Responsible Procurement

• 19 supplier certification templates with ESG requirements
• ISO 14001 and SA8000 certifications required for certain product categories

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Sustainability Reporting Guidelines, United Nations Global Compact Ten Principles, ISO 26000, Guideline for Environmental, Social and Governance Reporting issued by The Stock Exchange of Hong Kong Limited, Chinese Corporate Social Responsibility (CSR) Report Preparation Guide – Telecommunication Service Sector (CASS-CSR 3.0)

Certifications: ISO 14001 (Zhejiang, Shanghai, Guangdong Companies)

Third-party Assurance: Deloitte Touche Tohmatsu Certified Public Accountants LLP

Sustainable Products & Innovation

• e-bills
• Green package
• Alternative energy base stations
• Energy-efficient data centers
• Yellow Wristbands
• and-Life medical application
• Kindergarten Information Service
• Vehicle Guardian
• and-Wallet (NFC)

Awards & Recognition

• Listed in the Dow Jones Sustainability Indices for the seventh consecutive year
• Listed in the Hang Seng Corporate Sustainability Index Series for the fifth consecutive year
• Ranked 28th in the Global 2000 Leading Companies by Forbes
• Ranked 25th in the Financial Times (FT) Global 500
• China Mobile brand named one of the BRANDZ™ Top 100 Most Powerful Brands
• Ranked 2nd in China 300 CSR Development Index
• Received the 2014 Public Transparent Enterprise Model Award
• 2014 Golden Bee CSR Reports Award – Evergreen Award
• 2014 UN Global Compact China Best Practice
• Sustainability Leadership Enterprise Model by CDP (China)

Environmental Metrics

ESG Focus Areas

• Connectivity
• Economic Responsibility
• Social Responsibility
• Environmental Responsibility

Environmental Achievements

• Reduced overall energy consumption per unit of information flow by 17.5% compared to 2014
• Green packaging methods applied by over 60% of suppliers in 30 provinces (excluding Xizang)
• Recycled approximately 1.4 million used mobile phones through the Used Phone Trade-in Programme

Social Achievements

• Provided 40.68 million yuan in targeted aid and poverty relief support
• Implemented the China Mobile “Blue Dream” Education Aid Plan, training 80,981 principals and building 2,310 libraries and 1,260 multimedia classrooms
• Launched new projects in Guangxi and Ningxia for the China Mobile Heart Caring Campaign, sponsoring surgeries for 2,744 children

Governance Achievements

• Established an Embedded Integrity Risk Prevention and Control Mechanism
• Formulated the China Mobile Discipline Inspection Group Work Rules (Trial)
• Internally dealt with 96 cases of violations, punished 140 employees, and imposed organizational sanctions 219 times

Climate Goals & Targets

Environmental Challenges

• Uneven distribution of information infrastructure in China
• Concerns about faster data consumption with 4G
• Spam messages and telecommunications fraud
• Public misunderstanding of EMF from base stations
• Insufficient employee incentives and talent retention

Mitigation Strategies

• Expanding network coverage, opening new sales channels, and building infrastructure in remote areas
• Implementing a policy of “double refund for billing errors” and sending alert messages to customers
• Coordinating with provincial companies to implement a “White List+ Scientific Block” strategy and formulating industry standards for fraud prevention
• Using EMF Awareness Raising and Experience Tour Buses to communicate with the public
• Optimizing employee compensation system, building an H-shape career development path, and implementing EAP

Supply Chain Management

Supplier Audits: 2,252 assessments on first-level suppliers

Responsible Procurement

• Strict qualification pre-assessments and after-assessments
• Fair and transparent procurement process
• Using SA8000 and ISO 14000 certificates as evaluation criteria

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4, UN Global Compact Ten Principles, ISO 26000, HKEx ESG Reporting Guide, CASS-CSR 3.0, GB/T 36001-2015

Third-party Assurance: Ernst & Young Huaming LLP

Sustainable Products & Innovation

• Green ICT solutions (e.g., Blue-sky Guardian, Garbage Sorting Integration Management System)

Awards & Recognition

• Listed in DJSI for eight consecutive years
• Listed in Hang Seng Corporate Sustainability Index Series for six consecutive years
• China Philanthropy Award for six consecutive years
• Sustainability Leadership Enterprise Model by CDP (China) for two consecutive years
• Ranked 1st in China 300 CSR Development Index (2015)

Environmental Metrics

ESG Focus Areas

• Building Digital Infrastructure
• Leading Innovative Digital Ecosystem
• Empowering Construction of a Smart Society
• Ensuring Trusted Digital Consumption
• Supporting Poverty Alleviation and Public Welfare
• Promoting Coordinated Regional Development
• Growing Together with Employees
• Developing Innovative Green Solutions
• Promoting Low Carbon, Circular Development

Environmental Achievements

• Reduced overall energy consumption per unit of information flow by 43% compared with the previous year
• Reduced annual power consumption by 2.21 billion kWhs, equivalent to the reduction of 1.415 million tonnes of GHG emissions
• Increased green packaging rate of newly procured main equipment to 69%
• Refurbished 387,600 optical modems and 180,000 set-top boxes, saving RMB62.16 million

Social Achievements

• Provided training for over 127,000 rural primary and secondary school principals from central and western China
• Provided free surgical treatment for nearly 6,000 children from low-income families diagnosed with congenital heart disease
• Launched the “Mandarin for Poverty Alleviation” app, used by 148,300 users
• Improved 4G coverage in pilot urban villages to 98%, benefiting over 600,000 users
• Provided training to its employees for 1.825 million person-times

Governance Achievements

• Established a compliance management system
• Received a total of 1,730 whistleblowing cases, handled 393 corruption cases, and took disciplinary actions for 516 person-times in 2019
• Implemented the “Sunshine Action” for the protection of customer rights and interests
• Completed the tasks of submission of carbon emission report, third-party verification, carbon trading and compliance

Climate Goals & Targets

Environmental Challenges

• Rapid user growth leading to sudden expansion of network scale
• Risk of government criticism or fine for unfulfilled carbon trading obligations
• Risk of counterparty default due to increase in carbon price
• Damages to infrastructure and fixed assets due to extreme weather conditions
• Greater power consumption of equipment room due to global warming

Mitigation Strategies

• Analyzing the impact of network scale on energy consumption and greenhouse gas emissions
• Conducting regular assessments on fulfillment risk and including a contingency mechanism
• Regularly monitoring carbon price fluctuation and evaluating the cost of fulfillment
• Building 46 super base stations that can function under disaster conditions
• Regularly evaluating and monitoring the operation hours of A/C units and adopting energy-saving technology

Supply Chain Management

Supplier Audits: 2,268 assessments on first-level suppliers

Responsible Procurement

• Issuing equipment energy conservation grading standards to suppliers
• Strictly inspecting the energy consumption and efficiency parameters of the equipment
• Requiring the verification of the SA 8000, OHSAS 18001 and ISO 14000 certificates

Climate-Related Risks & Opportunities

Physical Risks

• Damages to infrastructure and fixed assets due to extreme weather conditions

Transition Risks

• The requirements of laws and regulations regarding energy conservation and emission reduction, and carbon trading market become stricter

Opportunities

• Exploring the means and ways to apply 5G technology for environmental protection

Reporting Standards

Frameworks Used: GRI Standards, HKEx Environmental, Social and Governance Reporting Guide, UN SDGs, UNGC Ten Principles, ISO 26000

Third-party Assurance: Ernst & Young Hua Ming LLP

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 2: Zero Hunger
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

See page 66 for details

Sustainable Products & Innovation

• 5G Smart Hub “Pioneer No.1”
• 5G cellphone “Pioneer X1”

Awards & Recognition

• CDP (Carbon Disclosure Project) Global Leadership Level Company on climate change
• Won the Gold Award in “The Asset ESG Corporate Awards 2019”
• Awarded the accolades of “Sustainability and Social Responsibility Reporting Awards”
• Awarded the accolades of “Asia’s Most Honored Companies”
• Awarded the accolades of the Best of Asia – “Icon on Corporate Governance”
• The Company’s Using AI Technology to Manage Cyberspace Spams and Protecting Users’ Legal Rights and Interests won the “WSIS Prizes 2019 Champion” award

Environmental Metrics

ESG Focus Areas

• Inclusive Development
• Green Development
• Smart Development

Environmental Achievements

• Saved 2.51 TWh of electricity; overall energy consumption per unit of telecommunications business declined by 18% compared with last year.
• Green packaging rate of newly procured main equipment reached 78%
• Timber resources saved 164,000 m³

Social Achievements

• Network+ poverty alleviation model helped 1.08 million people rise above the poverty line.
• Blue Dream project trained more than 128,000 rural primary and secondary school principals.
• Heart Caring Program sponsored surgeries for 6,574 children in poverty with congenital heart disease.

Governance Achievements

• Established a three-tiered risk management structure.
• Implemented the “Compliance Escort Plan”.
• No major customer information leakage occurred in 2020.

Climate Goals & Targets

Environmental Challenges

• Regulatory risks related to carbon emission quotas.
• Technological risks related to increased energy consumption from 5G.
• Market risks related to increased energy consumption from the expansion of network scale.

Mitigation Strategies

• Drafting internal management regulations and plans.
• Setting a timetable to phase out energy-intensive equipment.
• Devising annual energy consumption plans.

Supply Chain Management

Supplier Audits: 2,156 assessments of tier 1 centralized procurement suppliers

Responsible Procurement

• Suppliers Cooperation Guidelines
• Green Supply Chain Research Plan
• Implementation Rules for Assessing Tier 1 Centralized Procurement Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events may cause damage to computer rooms and batteries.

Transition Risks

• Regulatory changes related to carbon trading.
• Market shifts related to increased energy consumption.

Opportunities

• Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards (2016), UN Sustainable Development Goals, UN Global Compact Ten Principles, HKEx Environmental, Social and Governance Reporting Guide, ISO 26000:2010

Third-party Assurance: Ernst & Young Hua Ming LLP

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 13: Climate Action

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• 5G energy-saving technologies
• Rainwater-type fresh air conditioners

Awards & Recognition

• Asia’s Honored Companies
• BrandZ™ Top 100 Most Valuable Global Brands
• Sustainability and Social Responsibility Reporting Award
• Best Investor Relations Company
• Best CSR
• Best Corporate Communications awards
• Outstanding Institution for Poverty Alleviation
• Outstanding Figure for Poverty Alleviation
• Top 10 Employers in China
• Top 10 Most Favored Employers among College Students
• Leadership level status for addressing climate change impacts by CDP Global
• Excellent Grassroots Organization for Poverty Alleviation
• Best Asian Wholesale Carrier
• HR Asia Best Companies to Work for Asia 2020 Awards
• HR Asia Most Caring Companies
• CC-Global Awards 2020 Best ‘Cloud’ Innovative Operator
• Best 5G Network
• Sing Tao Service Awards for Telecommunications Service in the Greater Bay Area
• Excellent Employer Award 2020
• Volunteer Service Commendation Certificate (Group) – Silver Award

Environmental Metrics

ESG Focus Areas

• Digital-Intelligent Innovation
• Inclusive Growth
• Green and Low-Carbon Operations

Environmental Achievements

• Saved over 4.3 TWh of electricity in total through energy saving measures.
• Over 80% of newly procured major equipment in 2021 used green packaging, saving 262,000 cubic meters of timber resources.
• Listed for the fourth time in the climate change “A List” of CDP (Carbon Disclosure Project).

Social Achievements

• Launched the “Heartwarming Service” customer service brand.
• Upgraded the “Network+” poverty alleviation model into the “Network+” rural revitalization model and rolled out the 14th FYP Digital-Intelligent Rural Revitalization Plan.
• China Mobile’s philanthropy platform was approved by the Ministry of Civil Affairs as one of the third batch of online fundraising information platforms.
• The Parent Company won the highest government award for charity in China, the 11th China Charity Award.

Governance Achievements

• Established a sound three-level CSR management system comprising decision-making, organization and implementation.
• Formed a four-module, closed-loop workflow consisting of strategy, implementation, performance and communication management.
• Prepared and released sustainability reports on a regular basis.

Climate Goals & Targets

Environmental Challenges

• COVID-19 epidemic
• Disruption of industrial supply chains
• Need for business transformation
• Extreme natural disasters

Mitigation Strategies

• Employed an array of information technologies such as 5G, big data and artificial intelligence (AI) to enable digital-intelligent prevention and control of COVID-19.
• Rapidly restored mobile signals in designated areas and maintained connectivity for public affected by disasters using our Wing Loong large UAV-based Aerial Base Station (ABS) and other innovative core technologies.
• Strengthened our capabilities in safeguarding emergency communications.

Supply Chain Management

Supplier Audits: 1,784 on-site supplier verifications conducted (2020: 1,107)

Responsible Procurement

• Incorporated green and energy conservation requirements into product procurement evaluation criteria.
• Added ISO 9001, ISO 14001, and other requirements related to the environment, society and business ethics to our supplier review and evaluation criteria.
• Required all suppliers to sign an integrity pledge online.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing equipment damage
• Rising temperature increasing power consumption for air-conditioning

Transition Risks

• New regulatory risks (e.g., carbon trading requirements)

Reporting Standards

Frameworks Used: GRI Standards: core option, HKEX ESG Reporting Guide, UN SDGs, UNGC Ten Principles, TCFD Recommendations, CASS-CSR

Third-party Assurance: SGS

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 13: Climate Action

See page 67 for details on how initiatives contribute to these goals.

Sustainable Products & Innovation

• MIGU Reading, ViLin, Cloud Life, And-Education and “and-Caiyun”

Awards & Recognition

• Titanium Award in the “ESG Corporate Awards 2021”
• “Honored Companies” award in the 2021 “All-Asia Executive Team”
• “Asia’s Icon on ESG” award
• “Best Investor Relations Company”, “Best CSR”, “Best Corporate Communications” awards

Environmental Metrics

ESG Focus Areas

• Digital Intelligence Innovation
• Inclusive Growth
• Green Development
• Advanced Governance

Environmental Achievements

• Saved 6.43 billion kWh of electricity throughout the year.
• Energy-saving technology evaluation included in more than 90% of the equipment purchased.
• Reduced carbon emissions by 21% per unit of data traffic (YoY).

Social Achievements

• Strove to narrow the digital divide faced by special groups such as people with disabilities, seniors, and those with cultural differences, benefiting more than 37.167 million people.
• Implemented the “Seven Assistance Measures”, helping 1,442 paired-up counties, townships, and villages consolidate and expand the achievements of poverty alleviation.
• Implemented the “Seven Rural Digital-Intelligence Projects” and advanced the digital village drive in more than 350,000 remote rural villages.
• Launched the “Heartwarming Service Elderly Guardian Plan” and upgraded “Filial Piety Card/Package” to offer more services to seniors.

Governance Achievements

• The Parent Company has been rated Grade A in the business performance appraisal for the heads of central state-owned enterprises for 18 consecutive years and six terms.
• Further embedded ESG considerations in all aspects of corporate governance and built a new pattern of development in which economic value and social value could reinforce each other.

Climate Goals & Targets

Environmental Challenges

• New regulatory risks related to carbon trading.
• Technological risks associated with increasing energy usage from 5G infrastructure.
• Severe natural factors causing damage to infrastructure and affecting network quality.
• Long-term natural factors such as rising temperatures increasing air-conditioning costs.

Mitigation Strategies

• Quarterly accounting of carbon emissions and assessment of financial impact of compliance costs.
• Investments in R&D for more efficient and energy-saving technologies.
• Assessment of potential impact of natural disasters and planning for post-disaster reconstruction.
• Regular assessment and monitoring of air conditioner service time in server rooms.

Supply Chain Management

Supplier Audits: 1,510 information verifications on Tier 1 suppliers; 1,271 on-site supplier verifications.

Responsible Procurement

• Inclusion of green energy-saving technologies in procurement scoring.
• Incorporation of SA 8000, OHSAS 18001, and ISO 14000 certifications into supplier qualification review.
• Online integrity commitment from suppliers.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage to infrastructure.
• Rising temperatures increasing air-conditioning costs.

Transition Risks

• New regulatory risks related to carbon trading.
• Technological risks associated with increasing energy usage from 5G infrastructure.

Reporting Standards

Frameworks Used: GRI Standards, HKEX ESG Reporting Guide, UN SDGs, TCFD

Third-party Assurance: SGS-CSTC Standards Technical Services Co. Ltd.

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 9 (Industry, innovation, and infrastructure)
• Goal 11 (Sustainable cities and communities)
• Goal 13 (Climate action)
• Goal 17 (Partnerships for the goals)

Initiatives contributing to these goals are detailed throughout the report.

Sustainable Products & Innovation

• Green data center technology suite.

Awards & Recognition

• Gold medal in the “ESG Corporate Awards 2022”
• Rated as “AAA” by Wind in the “Wind ESG Rating 2022”
• Recognized as a global leader in climate action by CDP for seven consecutive years
• Received the “Listed Enterprises of the Year 2022”, “ESG Leading Enterprise Award”, and “Best Innovation Award” at the fourth annual “ESG Leading Enterprise Awards”

Environmental Metrics

ESG Focus Areas

• Economic
• Social
• Environmental
• Governance

Environmental Achievements

• Reduced the average power utilization efficiency (PUE) of large and super-large data centers to below 1.32
• Achieved clean energy capabilities such as wind and solar power reaching 210 million peak watts
• Reduced greenhouse gas emissions by 310 million tonnes
• Improved the energy efficiency of new 5G base stations by 9% compared to last year
• Built 86,000 minimalist stations

Social Achievements

• Constructed over 390,000 digital villages and 155,900 intelligent communities
• Built an efficient and collaborative new type of emergency communication support system
• Implemented the “Talent Strengthens Enterprise” project
• Carried out “Five Small” program, “Happiness 1+1” and employee assistance programs

Governance Achievements

• Conducted high-proportion shareholder dividends
• Standardized the operation of the board of directors
• Established a sustainability committee under the board of directors
• Implemented a new round of State-Owned Enterprise reform

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events
• Rapid growth in energy consumption and rapid increase in energy costs from 5G base stations
• Extreme weather events causing damage to infrastructure and interfering with network quality
• Lack of quantified greenhouse gas emission standards in the enterprise supply chain
• Inaccurate real-name registrations for SIM cards

Mitigation Strategies

• Developed alternative sourcing strategies
• Developed and used more energy-saving and lower energy-consuming technologies
• Formulated a post-disaster reconstruction plan
• Introduced a product carbon footprint accounting standard and created a quantified output capability for greenhouse gas emissions in the supply chain
• Introduced a secondary verification process for high-risk cards

Supply Chain Management

Supplier Audits: Factory inspections for tier 1 centralized procurement products in 6,697 batches, arrival inspections in 8,809 batches, and flight inspections in 25 batches

Responsible Procurement

• Green energy-saving technology test results are incorporated into the purchase score
• All suppliers participating in procurement are required to sign an online integrity commitment
• Social Accountability (SA8000), Occupational Health and Safety Assessment Series (OHSAS18001) and Environmental Management System (ISO14000) certification are identified as the supplier qualification review benchmarks

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events causing damage to infrastructure and interfering with network quality

Transition Risks

• The Company’s headquarters and Beijing Mobile subsidiary, with China Tie Tong’s headquarters and its Beijing subsidiary have been included in the Beijing Carbon Emission Trading System (ETS) pilot

Opportunities

• Information and communications technology (ICT) solutions can effectively aggregate resources and increase the efficiency of resource and energy use
• Improved energy efficiency from the promotion of the Carbon Peaking and Carbon Neutrality goal

Reporting Standards

Frameworks Used: Guidelines for Self-Regulation of Listed Companies No.1 - Standardized Operation, Shanghai Stock Exchange (SSE), Environmental, Social and Governance (ESG) Reporting Guide, Hong Kong Stock Exchange (HKEX), 2030 Agenda for Sustainable Development, United Nations, GRI Standards, Global Sustainability Standards Board (GSSB), Ten Principles of the United Nations Global Compact, ISO Guidance on social responsibility (ISO 26000), Recommendations by the Financial Stability Board (FSB) Task Force on Climate-Related Financial Disclosures (TCFD), Reference index system of ESG special report of listed companies holding by central enterprises, State-owned Assets Supervision and Administration Commission of the State Council (SASAC)

Third-party Assurance: SGS-CSTC Standards Technical Services Co. Ltd.

Awards & Recognition

• Ranked first in the “China ESG Listed Companies Pioneer 100 List” and “China ESG Listed Companies Technology Innovation Pioneer 30 List” released by the China Media Group
• Awarded the accolade of “Most Outstanding Company in Hong Kong - Telecommunication Services Sector” in the “Asia’s Outstanding Companies Poll 2023” held by Asiamoney
• Awarded the accolade of “Most Honored Companies” in the “2023 All Asia Executive Team Poll” held by Institutional Investor
• Received the gold award for “China’s Best Large Listed Company” and “China’s Best Telecommunications Company” in the “Best Managed Companies in Asia 2023” selection organized by FinanceAsia
• Won the Gold award in “The Asset ESG Corporate Awards 2023” held by financial magazine The Asset
• Awarded “Listed Enterprises of the Year 2023” and “Most Valuable Investment Listed Enterprise” in The 8th Listed Enterprises of the Year 2023 organized by Bloomberg Businessweek/Chinese Edition
• Selected for the Wind “Top 100 Best Practices of Chinese Listed Companies in ESG for the Year 2023” list, achieving the highest Wind ESG rating of AAA level for two consecutive years
• Awarded the “ESG Leading Enterprise Award” in the category for companies with a market value of over 20 billion Hong Kong dollars in the 5th “ESG Leading Enterprises Awards” jointly organized by Bloomberg Businessweek/Chinese Edition and Deloitte
• Won the “First China Reform Cup · ESG Golden Bull Award Top 20 in Rural Revitalization” by China Securities Journal