Greenhouse Gas Emissions & Net Zero Commitment

Since 2012, when TWM adopted the ISO14064-1 standard, GHG inventories have undergone third-party verification annually to ensure data quality. The main source of emissions is electricity (98%); the remaining sources include use of company vehicles, generators, refrigerants, fire extinguishers and septic tanks.

Net Zero & GHG reduction targets

Taiwan Mobile has set a pioneering example in the Asian telecommunications sector by officially securing international validation through the Science-Based Targets initiative (SBTi). With a commitment to “limit global warming to 1.5°C”, Taiwan Mobile has established the important goal of achieving Net Zero emissions by 2050.

Furthermore, Taiwan Mobile completed target setting as early as 2019, Taiwan Mobile became the first telecommunications company in Taiwan to be certified for SBT WB2°C (well below 2°C) and pledged to achieve net-zero emissions by 2022. In August 2023, Taiwan Mobile continued to uphold international standards and further strengthened its own requirements, successfully passing the more rigorous SBTi 2050 Net-zero review.

Under the context of “limiting global warming to within 1.5°C”, Taiwan Mobile has established its short-term goals for 2030, which include a gradual phase-out of fossil fuel vehicles, improved energy efficiency, and active adoption of renewable energy sources. As a result, there has been a significant 42% decrease in greenhouse gas emissions for Scope 1 and 2 compared to the baseline year; 25% decrease in greenhouse gas emissions for Scope 3 compared to the baseline year.

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Target	Overall Net-Zero	Near-Term			Long-Term
	Target Year	Base year	Target Year	% Reduction	Base year	Target Year	% Reduction
Scope1 Scope2	2050	2022	2030	42	2022	2040	90
Scope3		2020	2030	25	2020	2050	90

By 2040, Taiwan Mobile aims to achieve a 90% reduction in carbon emissions. In the long term, if necessary, it plans to neutralize the remaining carbon emissions through methods such as carbon offsetting and carbon capture and storage, with the expectation of achieving net-zero carbon emissions by 2050.

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Greenhouse gas inventory (Scope 1)

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Direct GHG (Scope 1)	Unit	FY 2021	FY 2022	FY 2023	FY 2024	target for FY 2024
Total direct GHG emissions (Scope 1)	metric tonnes CO2 equivalents	6,177.80	5,331.63	6,098.48	5,591.67	4,771.81
Data coverage (as % of denominator)	percentage of:Revenue	100	100	100	100

Greenhouse gas inventory (Scope 2)

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IGHG (Scope 2)	Unit	FY 2021	FY 2022	FY 2023	FY 2024	target for FY 2024
Location- based	metric tonnes of CO2 equivalents	269,124.54	282,140.61	285,603.70	341,228.67	252,515.85
Data coverage (as % of denominator)	percentage of: Revenue	100	100	100	100
Market-based	metric tonnes of CO2 equivalents	269,124.54	282,096.83	285,523.51	341,175.81	255,543.54
Data coverage (as % of denominator)	percentage of: Revenue	100	100	100	100

GHG inventory (scope 3)

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IGHG (Scope 3)	Unit	FY 2021	FY 2022	FY 2023	FY 2024	target for FY 2024
Total indirect GHG emissions (Scope 3)	metric tonnes of CO2 equivalents	350,484.78	313,385.34	341,603.49	356,189.49	404,070.20

Scope 3 Category	Emissions in the reporting year (Metric tons CO2e)
1. Purchased Goods and Services	186,304.10
2. Capital Goods	73,068.16
3. Fuel-and-energy-related- activities (not included in Scope 1 or 2)	67,664.77
4. Upstream transportation and distribution	911.73
5. Waste generated in operations	1,066.60
6. Business travel	438.00
7. Employee commuting	2,414.78
8. Upstream leased assets	1,539.74
9. Downstream transportation and distribution	655.82
10. Processing of sold products	TWM belongs to the telecommunication services industry, just sells the telecommunication services, operates as the intermediate for mobile and portable devices sales; in other words, TWM does not handle or manufacture the sold products.
11. Use of sold products	12,153.67
12. End of life treatment of sold products	1,035.95
13. Downstream leased assets	5,070.67
14. Franchises	3,865.50
15. Investments	Based on the operation control approach, all of TWM’s subsidiaries’ GHG emissions have already been included in the TWM's scope 1, and scope 2 and TWM has no other investment targets.
Other upstream	0
Other downstream	0

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Internal Carbon Pricing

Taiwan Mobile has implemented an Internal Carbon Price (ICP) of USD 50 per ton of CO2 (or NTD 1,500), which was established in 2019. This ICP is integrated into capital investment decisions to help us understand the potential carbon costs of energy equipment procurement, thereby accelerating low-carbon investments.

Practical Applications:

1. Renewable Energy Procurement: While the initial investment cost for renewable energy is relatively high, incorporating the ICP into our financial calculations results in a shorter payback period.
2. Energy-Efficient Equipment Procurement: Similarly, for more energy-efficient equipment, which often has a higher upfront investment, the inclusion of the ICP significantly shortens its payback period.

This approach effectively promotes Taiwan Mobile's commitment to expanding its procurement of renewable energy and more energy-efficient equipment, thereby helping us achieve our climate-related goals.

Objectives to implement a carbon price	■ Conduct cost-benefit analysis ■ Drive low-carbon investment ■ Incentivize consideration of climate-related issues in decision making ■ Setting and/or achieving of climate-related policies and targets	■ Publicly available
GHG Scopes covered	■ Scope 1 ■ Scope 2	■ Publicly available
Type of internal carbon price	■ Shadow price	■ Publicly available
Price (per metric tonne CO2e)	Currency: 1,500TWD - New Taiwan Dollar	■ Publicly available
Application	■ Some business decision- making process	■ Publicly available