Material Issues

• Financial impact (comprehensive assessment of the impact on the impact subject)

• Impact degree (comprehensive assessment of scale, scope, disastrousness)
• Possibility of occurrence (comprehensive assessment of probability, speed or frequency of occurrence)
• Degree of stakeholder attention (evaluate the degree of influence of external stakeholders on the decision-making of this issue)

Excessive greenhouse gas (GHG) emissions contribute to global warming, exacerbating climate change and increasing the frequency of extreme weather events. Approximately 98% of Taiwan Mobile's GHG emissions stem from electricity consumption, which is essential for maintaining continuous network operations across our widespread base station infrastructure.

Extreme weather therefore represents a significant physical climate risk to our business, potentially causing infrastructure damage, unstable power and water supplies, and service disruptions. These impacts may generate unplanned maintenance and recovery costs and negatively affect operational continuity and customer experience.

Given this exposure, Taiwan Mobile monitors climate-related risks and their financial impacts through key indicators and proactively implements management measures to reduce potential operational disruptions.

Amid declining birth rates and an aging population, competition for talent in AI, cloud computing, cybersecurity, data, and other emerging technologies has intensified, increasing challenges in talent acquisition and retention. Shortages of critical technical talent may increase recruitment and replacement costs, delay network deployment and maintenance and AI and emerging technology projects, and affect operational efficiency and productivity. Failure to attract, develop, and retain critical talent may also constrain Taiwan Mobile's Telco+Tech transformation and new business growth.

To manage these impacts, Taiwan Mobile conducts annual training needs assessments and provides professional training, Individual Development Plans (IDPs), diverse learning channels, and cross-disciplinary learning opportunities. Employees are also encouraged to develop digital and AI capabilities to improve work efficiency and meet evolving business and technology needs.

Privacy protection is increasingly important as digital services and AI applications expand. Taiwan Mobile views data privacy not only as a compliance requirement but also as an opportunity to strengthen customer trust and competitiveness.

Taiwan Mobile leverages its telecommunications data, AI and cybersecurity capabilities to develop anti-fraud services, including OP Scam Buster - Enterprise Edition and Personal Edition. These services identify fraudulent calls, messages, websites and social media accounts to help customers reduce fraud and security risks. The Personal Edition also adopts a privacy-first design without requiring users to upload contacts or call records.

By transforming privacy and cybersecurity capabilities into customer-facing services, Taiwan Mobile strengthens customer trust, differentiates its services, creates new business opportunities and enhances its competitiveness in digital services.

To address climate-related risks and advance toward net zero by 2050, Taiwan Mobile adopts an integrated mitigation and adaptation strategy. The Environmental Working Group drives environmental strategies, while climate risks are incorporated into Enterprise Risk Management (ERM).

On mitigation, Taiwan Mobile follows SBTi-aligned targets to reduce Scope 1 and 2 emissions by 42% and Scope 3 emissions by 25% by 2030, and achieve net zero by 2050. The Company also advances RE100, energy efficiency and AI-enabled energy optimization.

On adaptation, Taiwan Mobile assesses physical risks under multiple climate scenarios and strengthens assets exposed to flooding and landslides through measures including elevated equipment, enhanced drainage and slope stabilization. These actions support a low-carbon, climate-resilient business model and service continuity.

We conduct annual training needs assessments and provide employees with diverse learning channels, Individual Development Plans (IDPs), and cross-disciplinary learning opportunities, with training and development progress tracked quarterly.

To strengthen employees' future-ready capabilities, the "Supermen Program" develops AI application skills through training and practical application, enhancing digital capabilities and work efficiency while supporting career development and future workforce transformation. In 2025, employee participation reached 100%, with a 72.2% workplace application rate.

We also conduct annual employee opinion surveys, monthly cross-level communication sessions and company-wide meetings. Based on employee feedback, improvement plans are developed and their implementation and effectiveness are regularly tracked.

To address increasing digital fraud and related privacy risks, Taiwan Mobile uses telecommunications data, AI models and big-data analytics to detect fraud before customers are exposed to potential harm

TWM developed OP Scam Buster – Enterprise Edition to identify fraudulent websites, apps and social media accounts for early detection and response. OP Scam Buster – Personal Edition provides caller identification, automatic blocking of high-risk numbers, and message risk detection for suspicious links and keywords. The app does not require users to upload contacts or call records, reducing unnecessary collection of personal data.

In 2025, the Enterprise Edition detected over 500 million suspicious domains, while the Personal Edition exceeded 290,000 registered users. These services turn TWM's AI, telecommunications data and cybersecurity capabilities into anti-fraud solutions, reducing customer risks while expanding business opportunities in digital security.

Taiwan Mobile has set a decarbonization pathway aligned with SBTi, RE100, TCFD, and TNFD. Our near- and long-term targets cover direct and indirect emissions, with regular tracking and public disclosure.

The Environmental Working Group oversees environmental and climate strategies, coordinating cross-functional actions and reporting to the ESG Steering Committee. Climate-related risks are also incorporated into the Enterprise Risk Management (ERM) process to support climate resilience and operational continuity.

Targets and Metrics:

• Net-zero GHG emissions across Scope 1, 2, and 3 by 2050.
• Scope 1 & 2: reduce 42% by 2030 and 66% by 2035 (base year: 2024).
• Scope 3: reduce 25% by 2030 (base year: 2024).
• RE100 roadmap: 35% renewable electricity by 2030, 60% by 2035, and 100% by 2040.

To retain talent and mitigate the risks associated with an aging population and declining birth rate, Taiwan Mobile continuously monitors employee engagement and turnover trends, and implements talent development initiatives with quantifiable targets and metrics.

Targets and Metrics by 2035: Average training hours per employee: Achieve at least 50 hours annually through diverse and flexible learning channels.Employee recognition score: Reach 74% of employees feeling their dedication is acknowledged.Satisfaction with employee support programs: Achieve an internal score of 95 out of 100 on multidimensional employee assistance offerings (e.g., physical, psychological, and career support services). "Supermen Program"100%Employee Training Participation Rate, 80%Practical Application Rate.

TWM integrates privacy controls into operations through ISO-certified systems and governance. The Cyber Security and Data Privacy Protection Committee, led by the CISO with independent director participation, oversees strategies and reports to the Board. KPIs track protection, prevention, and awareness

Long-term Targets (2035):

• Zero data breaches.
• Zero cyber attacks via social engineering.
• 650,000 cumulative users for OP Scam Buster – Personal Edition.

Annual Indicators:

• Zero breaches involving customer data.
• Maintain ISO/IEC 27001 and 27701 via biannual audits.
• 100% blocking of unauthorized outbound transmission of sensitive data, with 181 cases detected and blocked in 2025.
• 100% completion of privacy/security training for employees and contractors.
• Fully staffed Data Protection team, overseen by the CISO with Board reporting.

These targets support compliance and innovation, building trust while making privacy a competitive differentiator.

The Environmental Working Group holds biannual meetings to track environmental performance, identify areas for improvement, and coordinate company-wide action. In 2025, progress on climate-related targets was as follows:

• Scope 1 & 2 emissions decreased by 16.3% compared with the 2024 baseline, exceeding the 2025 reduction target of 7.0%.
• Scope 3 emissions decreased by 9.1% compared with the 2024 baseline, exceeding the 2025 reduction target of 4.2%.
• Renewable electricity accounted for 18.6% of total electricity consumption in 2025, exceeding the 2025 target of 14%.

In 2025, Taiwan Mobile's progress against its talent development and retention targets and metrics was as follows:

• Average training hours per employee reached 66.4 hours, surpassing the long-term target through the continued expansion of diverse and flexible learning channels.
• Employee recognition score reached 84%, indicating a high level of perceived acknowledgment for employee contributions.
• Satisfaction with employee support programs achieved an internal score of 94 out of 100, reflecting the effectiveness of the company’s multi-dimensional assistance offeringsacross physical, psychological, andcareer-related dimensions.
• The “Supermen Program,” launched in 2025, originally aimed for 30% of participants to apply their learning in daily work by the end of the year; however, By year-end, the program achiev ed a cumulative completion rate of 99.5%, with 85.5% of participants successfully applying their learning to their daily work.

In 2025, Taiwan Mobile continued to strengthen its privacy protection practices and achieved the following outcomes:

• Zero confirmed personal data breach incidents involving customer information, maintaining a clean record of data security.
• Successfully maintained ISO/IEC 27001 and 27701 certifications, passing both internal and external audits conducted semiannually.
• Achieved a 100% blocking rate for unauthorized outbound transmission of sensitive data, with 181 attempted cases automatically intercepted by the data loss prevention (DLP) system.
• Reached a 100% completion rate for annual privacy and cybersecurity training, covering all employees and third-party contractors.
• Maintained a fully staffed Data Protection team, operating under CISO-led oversight with regular reporting to the Board and active engagement from the Cyber Security and Data Privacy Protection Committee.

Taiwan Mobile is committed to net-zero emissions by 2050 and promotes energy efficiency, green products, and services to drive the telecom industry's low-carbon transition. These efforts provide consumers with environmentally friendly, high-quality services.

TWM's climate adaptation strategies—such as disaster-resilient base stations and 100% resilient coverage for core server rooms—ensure service continuity during extreme events, safeguarding communication needs. Across the value chain, TWM engages suppliers in GHG inventories and low-carbon initiatives, extending environmental influence and encouraging sustainable practices.

Yet global warming and stronger typhoons continue to pose physical risks. Outdoor telecom infrastructure remains vulnerable to damage, potentially causing service disruptions that harm consumer experience and TWM's competitiveness.

As digital services such as mobile payments, cloud computing, and AI expand, data privacy has become a major concern. With people relying on digital infrastructure, expectations for protection and transparency are rising, especially in telecom.

Taiwan Mobile leverages strong privacy governance and cybersecurity to offer OP Scam Buster – Personal, OP Scam Buster – Enterprise, and the Number Masking Service; these reduce fraud risks, build user confidence, help avoid　financial/emotional harm, and support resilience against cyber threats.

Yet a single breach could erode trust, cause reputational and regulatory harm, and threaten TWM's license to operate. Managing sensitive data, TWM faces risks from social engineering, phishing, and other attacks. To address them, TWM runs a Personal Information Protection Management System (PIPMS), maintains ISO/IEC 27001 and 27701 certifications, and operates a 24/7 monitoring center to prevent violations and ensure secure services.

• Scope 1+2 290,149.22 tCO2e、Scope 3 323,661.42 tCO2e
• Total Scope 1+2+3 emissions 613,810.64

• 0 breach, 21.8M beneficiaries, 9.93M calls, 34.6K alerts