Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Environmental Protection
• Social Participation

Environmental Achievements

• Acquisition of ISO 14064-1
• IDC Cloud data center awarded ISO 50001 certification
• Reduction of electricity consumption by 2% compared to 2012
• Reduction of water consumption by 2.48% compared to 2012
• Reduction of paper consumption by 12.35% compared to 2012
• Resource recycling rate increased by 13% compared to 2012
• Savings of 462,994 sheets of paper due to paperless forms
• Reduction of paper bills by 6 million copies due to e-billing and savings of 4 million sheets of printed paper due to paperless operations in myfone stores

Social Achievements

• Honored with the Taiwan CSR Excellence Award and the Model Award in the Social Inclusion Category in November 2013
• M+ real-time communication APP gave 2,669 elementary schools and 739 junior high schools the opportunity to register free official accounts
• M+ real-time communication APP allowed 133 village and borough chiefs to provide services for local citizens via smartphones
• A total of 19 volunteer activities were organized in 2013 and volunteer service hours amounted to 3,249.
• Provided videoconferencing services and educational training for 13 NPOs at 78 locations, resulting in transportation cost savings of 5.21 million NTD and a reduction in carbon emissions of over 90 tons.

Governance Achievements

• Honored with the model award for best governance in Asia for the seventh consecutive time
• Implementation of the “Rules of Moral Conduct” and “Ethical Corporate Management Best Practice Principles”
• No instances of interested party relationships and recusal from discussion and voting were recorded in 2013.

Climate Goals & Targets

Environmental Challenges

• Rising costs related to efforts to boost the penetration rate of smartphones, enhance network capacities, and expand direct outlet channels
• Potential impact of climate change and environmental laws and regulations pertaining to GHG controls
• Potential risks such as storms, floods, or power cuts impacting data centers or base stations
• Procurement corruption case

Mitigation Strategies

• Strict control of costs and expenses
• Implementation of an integrated energy management and monitoring IT system
• Adoption of ISO 50001 energy management system standard
• Online early planning system with contingency plans to reduce potential losses generated by disasters
• Construction of highly disaster-resistant base stations
• Termination of business relations with the supplier involved in the corruption case
• Adjustment of duties and responsibilities of personnel in charge of related operations and procurement
• Implementation of preventive measures such as business integrity statements, open bidding processes, job rotation, and enhanced monitoring

Supply Chain Management

Responsible Procurement

• Green procurement
• Supplier CSR Rules (including labor rights, health and safety, environment, and ethical norms)
• CSR self-assessment questionnaires

Climate-Related Risks & Opportunities

Physical Risks

• Storms, floods, power cuts

Transition Risks

• GHG emission reductions and energy taxes

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 14064-1, ISO 50001, ISO 27001, ISO 27011, ISO 10002

Third-party Assurance: KPMG

Sustainable Products & Innovation

• IDC Cloud Data Center
• e-billing services
• myBook online bookstore
• myPlay1 mobile online game services
• M+ real-time communication APP
• mySports health management app

Awards & Recognition

• DJSI constituent stock for emerging markets (2012, 2013)
• Corporate Governance Asia Recognition Awards (7 consecutive years)
• Icon on Corporate Governance award
• A++ rating for highest information transparency (8 consecutive years)
• Top award in the education promotion section of the Global Views Monthly CSR Awards (6 times)
• Corporate Citizenship Awards (7 consecutive years)
• 2013 Taiwan Corporate Sustainability Report Awards-Excellence in Telecom Sector
• Model Award in the Social Inclusion Category
• ISO 14064-1 and ISO 50001 certifications
• SGS Qualicert International Service Quality Certification
• SGS ISO 10002:2004 International Standard Certification

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Social Engagement
• Environmental Sustainability

Environmental Achievements

• Energy intensity decreased by 60% compared with 2016
• Total waste reduced by 14.25% compared to 2017
• Total tap water consumption decreased by 7.44% compared with 2017
• Cloud IDC's renewable energy consumption reached 100%

Social Achievements

• Launched a fundraiser to provide brand-new tablet PCs to disadvantaged students, cumulatively valued at over NT$10 million
• Provided 35,000 free Internet accounts to disadvantaged students
• Over 65,000 people benefited from the TWM digital education resources
• Cumulative sponsorships and donations toward social welfare reached NT$940 million

Governance Achievements

• Independent Directors exceeding half of all directors
• Corporate governance assessment scores remain in the top 5% for seven consecutive years
• Electronic voting rights accounted for 95.76% of the attendance

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19 pandemic
• High energy consumption associated with 5G
• Intensified competition in the telecommunications industry
• Climate change risks (increased frequency and severity of typhoons/hurricanes, increased costs of greenhouse gas emissions, increased demand and regulations relating sustainability, and increased cost of transformation to low-carbon technology)

Mitigation Strategies

• Implemented flexible working hours and work from home policies
• Proposed "joint frequency, grid connection, and co-building 5G"
• Developed alternative sourcing strategies
• Introduced Science-based Targets (SBT) to reduce Scope 1 and Scope 2 emissions by 30%, and Scope 3 emissions by 15% by 2030
• Introduced the Task Force on Climate-related Financial Disclosures (TCFD) framework

Supply Chain Management

Supplier Audits: 346 suppliers' ESG self-assessment questionnaires reviewed, 40 on-site audits conducted

Responsible Procurement

• Guidelines on Corporate Social Responsibility for Suppliers
• Code of Information Security Management
• Regulations on Safety, Health and Environmental Protection
• Confidentiality and Protection of Intellectual Property Rights

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and severity of typhoons/hurricanes
• Increased frequency and severity of rainstorms
• Increase in average temperature
• Changes in rainfall patterns

Transition Risks

• Increased demand and regulations related to sustainability
• Increase in the cost of greenhouse gas emissions
• Increased costs for low-carbon technology transformation
• Changes in customer behavior
• Shift in customer preferences
• Technology upgrades or innovations that do not support low-carbon transformation

Opportunities

• Development of energy-efficient products and services
• Growth in renewable energy market

Reporting Standards

Frameworks Used: GRI Sustainability Reporting Standards, IIRC Integrated Reporting framework, TCFD

Certifications: ISO 14001, ISO 45001, ISO/IEC 27001, BS 10012, ISO/IEC 29100

Third-party Assurance: KPMG (Limited Assurance)

UN Sustainable Development Goals

• All 17 UN SDGs

Zetta Connected 2030 strategy aligns with all 17 UN SDGs.

Sustainable Products & Innovation

• myAngel Digitized Care Service
• Smart street lights
• Online audio and video services
• Online e-books
• Green Power for Charity project

Awards & Recognition

• CDP Leadership (A) rating
• S&P Global Gold Class Sustainability Award
• ISS-ESG Prime grade
• Commonwealth Corporate Citizen Award (13 consecutive years)
• Taiwan Corporate Sustainability Awards (10 prizes)

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reached 4.5% renewable energy usage by the end of 2022, with renewable energy contributing 68.9% of total energy consumption for cloud IDC.
• Reduced electricity consumption by 1.69% compared to 2016.
• Reduced total non-recyclable waste by 44.8% compared to 2017.

Social Achievements

• Established a board-level “ESG Steering Committee” in May 2022.
• Linked executive compensation to ESG performance.

Governance Achievements

• Established a dedicated department for renewable energy source in 2022.
• Established the Risk Management Committee in 2015.

Climate Goals & Targets

Environmental Challenges

• Cap & Trade regulations
• Carbon tax
• Compulsory declaration regulations
• Product efficiency regulations and standards
• Renewable energy regulations
• Physical risks from extreme weather events (flooding, landslides, debris flow)

Mitigation Strategies

• Outsourcing of renewable energy
• Investing in green power directly transmitted to TWM
• Internal and external labor costs for checking and declaration
• Consulting for product efficiency regulations
• Installation of renewable energy
• Establishing emergency response procedures
• Strengthening slope stabilization measures
• Raising building foundations, enhancing drainage
• Relocating high-risk premises
• Incorporating disaster risk-related supporting measures and liquidated damages into supplier contracts

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Landslides
• Debris flow

Transition Risks

• Cap & Trade
• Carbon tax
• Compulsory declaration
• Product efficiency regulations and standards
• Renewable energy regulations
• Market risk of decreasing market share of low carbon products

Opportunities

• Development of capital sources
• Energy-saving buildings
• Adjustments and solutions
• Participation in renewable energy programs
• Production process improvements

Reporting Standards

Frameworks Used: TCFD

Certifications: ISO 14064-1, ISO 50001, ISO 14001

Sustainable Products & Innovation

• Green products and services for low carbon economy