Circular Economy

Taiwan Mobile is committed to responsible environmental stewardship throughout the lifecycle of our products and services. We recognize the importance of managing end-of-life electrical and electronic equipment (WEEE or e-waste) and have established comprehensive programs to address this critical area.

Currently, Taiwan Mobile implements the following three key programs to effectively manage e-waste:

1. Used/Waste Mobile Phone Recycling Program: This program facilitates the collection and responsible recycling of old and discarded mobile phones from our customers and internal operations. We ensure that these devices are processed in an environmentally sound manner, extracting valuable materials and preventing hazardous substances from entering the environment.
2. Certified Second-Hand Mobile Phone Recycling Program: Beyond general recycling, we operate a certified program for second-hand mobile phones. This initiative focuses on reconditioning and reselling eligible devices, extending their lifespan and reducing the demand for new product manufacturing. Devices that cannot be reconditioned are directed to our responsible recycling channels.
3. Set-Top Box (STB) Recycling Program: As a telecommunications provider, we manage a significant inventory of set-top boxes. Our dedicated STB recycling program ensures that these devices are collected from customers at the end of their service life and are either refurbished for reuse or responsibly recycled, adhering to the best environmental practices.

Through these concerted efforts, Taiwan Mobile actively contributes to the reduction of e-waste, fosters resource efficiency, and supports global sustainability goals.

1. Used/Waste Mobile Phone Recycling Program:
   (1) Place the recycling bin in a prominent location in the store and maintain it regularly to ensure normal use.
   (2) Store staff guide customers to recycle old mobile phones.
   (3) Implement recycling; notify the vendor for collection when the bin is 70% full
   (4) Offering a trade-in service, our retail staff actively promote device recycling by encouraging customers to return their old devices in exchange for discounts on new ones.
2. Certified Second-Hand Mobile Phone Recycling Program
   Old devices collected from retail stores are sorted, and those in near-new condition (90% new) are carefully selected. After data wiping, special inspections, and thorough cleaning, they are repackaged and sold to the next user, supporting the circular economy.
3. Set-Top Box Tracking and Management Mechanism
   To ensure full traceability and control over leased set-top boxes throughout their entire lifecycle, a comprehensive serial number-based and system-driven tracking mechanism is implemented, covering the rental, return, maintenance, and disposal phases. The process includes:
   (1) Serial Number Control
   • Every set-top box is assigned a unique serial number, which is registered upon warehousing.
   • Regardless of whether the device is installed at the customer’s location, returned to inventory, or sent for repair, its current status and location can be tracked through the serial number.
   • The system assigns a corresponding status code (e.g., In Use, Returned, Refurbishing, Disposed) to each serial number for complete process control.
   (2) Systematic Management of Rentals and Changes
   • Customer activities such as installation, device replacement, contract termination, or returns are all logged in the customer service/materials management system.
   • Movements of devices between the warehouse and customer premises are recorded through barcode scanning to avoid manual errors.
   • The system is updated in real time with device status, user information, and installation address to ensure data consistency.
   (3) RMA and Refurbishment Records
   • When a set-top box is returned to the manufacturer for RMA or sent to a designated refurbishment center, all logistics movements are recorded in the materials management system based on the serial number.
   • Repair details and component replacements are also logged, ensuring traceability of service quality and history.
   • Once refurbished, the unit's status is updated to "Refurbished – Available" and it is returned to warehouse inventory for redeployment.
   (4) Tracking and Retrieving Unreturned Devices
   • If a customer fails to return the set-top box after contract termination, the system will generate a periodic list of unreturned devices.
   • Customer service or asset management personnel will proactively contact the customer to retrieve the device, through calls, reminders, or third-party logistics.
   • Overdue policies are enforced, and in cases of non-return, the device may be written off or the customer charged a compensation fee according to contractual terms.

This tracking system effectively minimizes asset loss, improves operational efficiency, and supports audit, accounting, and service quality control.

Action plans to increase the amount of WEEE collected from takeback programs

1. Through POSM and the official website's campaign page, we communicate that Taiwan Mobile offers a device recycling service.
2. Offering additional discounts on new device prices through trade-in promotions to encourage consumers to recycle more of their old devices.
3. Incentives are also provided to retail staff for old device trade-ins, encouraging them to actively promote the trade-in service to customers.

Quantifiable targets to increase the amount of takeback WEEE reused/recycled

Through our “2035 Zetta connected 2.0” sustainable vision, we have established clear, quantifiable short- to long-term targets for increasing the amount of takeback WEEE that is reused and recycled, specifically focusing on used/waste mobile phones.

Our cumulative takeback targets for used/waste mobile phones, starting from 2020, are as follows:

• By 2026: 358,000 units
• By 2030: 666,000 units
• By 2035: 1,000,000 units

These ambitious targets underscore our dedication to responsible e-waste management and our contribution to a more sustainable future.

Ensure recipients of WEEE have e-waste management standards in place

TWM’s waste mobile phones are handled by the company: All Right Consultant & Development Co., Ltd., which has obtained the Environmental Protection Administration's processing organization regulation number and the Taoyuan City Government's waste disposal permit.

Awareness raising, training or educational programs on WEEE takeback/recycling provided to customers.
Complete Waste Disposal License of the Waste Processing Contractor (including electronic waste processing):
Taoyuan City Waste Processing Permit No. 0228-1, issued in 2023 (Document No. 112 Taoyuan City Waste-A Disposal Document 0228-1), valid until October 2028.

In addition to offering trade-in services at retail stores, staff also promote the program through verbal communication. The official website's trade-in campaign page features messages supporting carbon reduction and the circular economy, helping raise customer awareness about electronic waste recycling and reuse.

A dedicated campaign page with the theme of “Let's level up our carbon reduction together! Support the circular economy for a brighter future for our planet ” ,has been created on Taiwan Mobile's official Chinese website for the nationwide device trade-in program, promoting and encouraging consumers to support and participate in the circular economy by trading in old devices for new ones — a flexible, convenient, and cost-effective solution. For reference, please visit:
https://www.taiwanmobile.com/content/event/old-for-new/index.html

Takeback of waste from electrical and/or electronic equipment (WEEE or e-waste)

*Note The recycling rate only counts the mobile phone part, excluding accessories and batteries.

• Classification system to define sustainable or "green" products is based on specific and quantified benefits: In alignment with the Taiwan Taxonomy Guide for Green and Sustainable Finance Activities jointly issued by the Financial Supervisory Commission and other ministries, and benchmarking against the EU Taxonomy framework, Taiwan Mobile (TWM) has voluntarily mapped and assessed the applicability and technical screening compliance of its economic activities. Under this dual-reference evaluation, TWM has officially classified its Certified Pre-owned Phone program under "Other Low-Carbon and Circular Economy Technology Applications" within the "Supporting Economic Activities" framework.
• External verification of the sustainable products or services classification: TWM collaborated with the Resource Circulation Administration of the Ministry of Environment, National Taipei University of Technology, and multiple supply chain partners to establish Taiwan's first "Mobile Phone Recycling and Circular Services" Product Category Rules (PCR), creating a scientific foundation for quantifying the carbon footprint of mobile device recycling. Under this standard, TWM's "Taipei Ximending Store" became the first to pass the ISO 14067:2018 Product Carbon Footprint verification by TÜV NORD. This certification ensures that the environmental benefits and carbon reduction data of our "recovery, reconditioning, and redistribution" circular services are backed by high third-party transparency and credibility.
• Specific, time-bound and quantified target for increasing revenues from sustainable products and services, or number of sustainable products and services: TWM has established clear, time-bound, and quantified mid-to-long term sales targets for its Certified Pre-owned Phones: 2026 (Short-term): Sales target of 2,020 units, 2027 (Medium-term): Sales target of 2,040 units, 2028 (Long-term): Sales target of 2,122 units.
• Investments made (CAPEX, OPEX) to increase sustainable products or services portfolio: To continuously expand and sustain our Certified Pre-owned Phone Program, Taiwan Mobile (TWM) synergizes dedicated research, infrastructure upgrades, and robust financial support:
  • R&D Resources & Methodology Development: TWM invested research resources in a landmark 18-month joint project with the Ministry of Environment, National Taipei University of Technology, TÜV NORD, and supply chain partners. This initiative successfully developed Taiwan's first "Mobile Phone Recycling and Circular Services" Product Category Rules (PCR), establishing a scientific, life-cycle assessment (LCA) standard for the industry.
  • Infrastructure & Quality Maintenance Upgrades: To ensure recovered devices are maintained sustainably, TWM upgraded its retail and inspection infrastructure. We implemented a standardized multi-stage testing system across our myfone stores, integrating IMEI verification, in-store preliminary diagnostics, professional team re-testing, and final factory quality assurance.

To support these initiatives and drive market adoption, TWM allocated NTD 16,614,334 in 2025 to cover essential product testing, extended warranties, eco-friendly reconditioning, and promotional channel incentives.

• Internal training on sustainable design principles for functions developing products or services: For employees responsible for planning pre-owned phones and circular services, TWM conducted a specialized "Introduction and Application Training on the Mobile Phone Recycling and Circular Services Carbon Footprint PCR". Guided by experts from the National Taipei University of Technology and the Ministry of Environment, this training helped team members master carbon-reduction design principles across raw material acquisition, service, and disposal phases.
• Incentives for sales staff on sustainable products or services: TWM has established a tangible performance incentive mechanism directly linked to the promotion of sustainable products. In 2025, a total of NTD 13,957,687 was disbursed as store sales incentives. This scheme encourages sales staff to guide consumers to recycle old devices, opt for trade-ins, or purchase "TWM Certified Pre-owned Phones," thereby aligning employee compensation with the company's value-chain decarbonization performance.