- About Us
- Investor Relations
- ESG
- Product & Service
- Customer Service
Customer Service
- Visiting Taiwan
Taiwan Mobile identifies and assesses material sustainability issues which relates to the environment, governance and social impacts on the organization’s business operation and its internal and external stakeholders.
Based on the three-step identification process, 24 sustainability issues have been summarized in 2023. We conduct and review our materiality analysis at least annually to ensure our material issues align with the global and local trends.
The results of the materiality analysis have been incorporated into the company's Enterprise Risk Management (ERM) process as a key reference. The Risk Management Committee is subsequently responsible for monitoring and strictly controlling risk management-related issues to ensure continuous improvement. In 2023, 21 risks were identified, with 6 of these being included in TWM's Top 6 material issues for the year. These include network quality and coverage, customer experience, technological innovation, green applications and operations, climate change mitigation and adaptation, and talent development and retention.
The materiality analysis process is included annually in the sustainability report's assurance scope and has obtained an Independent Limited Assurance Report to ensure the completeness and accuracy of the process.
Consider Taiwan Mobile's operations, business relationships, sustainable ESG goals, eight major stakeholders, and international sustainability information sources. Thesesources include SASB (Sustainability Accounting Standards Board) themes, GRI (Global Reporting Initiative) sustainability reporting standards,DJSI (Dow Jones Sustainability Indices) sustainability ratings, and industry-specific sustainability themes and trends.
The opinions of the three major channels in Step 2 are integrated and analyzed through a matrix based on the principle of dual significance to produce a positive/negative matrix of Taiwan Mobile's material Issues.
| Axis | Factors Considered | Assessment Method |
|---|---|---|
| Axis x | Financial materiality |
|
| Axis y | Impact materiality |
|
Plus, the process of materiality analysis incorporated the concept of double materiality in each (Environment), S(social), G(Governance) different facings. To evaluating the impact of the external environment on TWM (such as market competitiveness, operations, cash flow, capital acquisition, legal liability, long-term shareholder value, etc.), it also considers the external impact of TWM's operating activities (The degree of impact on the environment and people, which in turn affects reputation and partnerships). The results showed on the Material Issue Matrix.
The material Issues of Taiwan Mobile 2023 were decided on 24 key sustainability issues by the ESG Working Group members (11 members) and further compiled the opinions of internal and external stakeholders, including: Sustainable Development Subcommittee members (11 members), stakeholder representatives ( 23) and public (696th), based on the principle of dual materiality, evaluating each topic's "impact on TWM's own operations and finances" and "impact on society and the environment", and ranking the positive and negative dual materiality matrix; the first six key themes are as follows in order: network quality and coverage, technological innovation and application, talent development and retention, climate change mitigation and adaptation, green applications and operations, and customer experience.
| Material Issue 1 | Material Issue 2 | Material Issue 3 | |
|---|---|---|---|
| Material Risk or Opportunity impacting company’s business | Climate Change Mitigation and Adaptation | Talent development and retention | Technological Innovation Application |
| Business Case material to company’s business | Excessive GHG emissions led to global warming, causing climate change and increasing the frequency of extreme rainfall. Taiwan, being in a subtropical area, often experiences extreme rainfall. For TWM, 97% of GHG emissions come from electricity consumption. To provide the best experience for our customers to enjoy telecommunications services from anywhere, we have built base stations in various locations, including low-lying areas and regions frequently experiencing extreme rainfall. Therefore, extreme rainfall is the most serious physical risk for TWM. The resulting damage includes telecom infrastructure, unstable power and water supply, leading to operational interruptions and additional costs. TWM uses extreme rainfall as a measure of hazard, flooding, landslides, and mudslides as measures of vulnerability, and each operation site as a measure of exposure. We estimate the financial impact of these physical risks and implement management measures to mitigate operational disruptions. | Taiwan Mobile firmly believes that talent is the key to sustaining core competitiveness and
represents the company's most valuable intangible asset. However, amid global trends of declining
birth rates and an aging population, recruiting has become increasingly challenging. Consequently,
talent retention and the development of additional employee competencies have become crucial to
mitigating the risks of a workforce shortage. Creating an environment where exceptional employees are willing to stay will significantly reduce the costs associated with recruiting and training new hires. Conversely, if companies do not actively engage in talent development and retention, they will face even greater losses. To elaborate, career development has become one of the key factors influencing an employee's decision to stay with a company. Without providing comprehensive development or training programs, the risk of talent attrition may increase. |
Trends show that innovation continues to create new business opportunities. To maintain our
leadership in the industry, TWM focuses on 5G, Big Data, AI, and IoT. These technologies are
becoming more diverse, personalized, faster, and stronger, bringing new requirements and threats.
Continuous innovation introduces new industry players, intensifying competition. Our company strategically leverages 5G, IoT, and AI to connect people, objects, and virtual spaces, envisioning a future life beyond imagination. By fostering a more comfortable and beautiful ecological system, we enhance technology, achieve positive customer experience and brings revenue. This innovative approach drives sustainable growth, reduces environmental impact, and positions us at the forefront of industry advancements, ensuring long-term competitiveness and financial success. |
| Business Impact | Cost | Risk | Revenue |
| Business strategies | To achieve net-zero emissions goal, TWM adopt energy-saving equipment and various environmental
management:
b. Increase base stations in areas prone to natural disaster and ensure that they will be equipped with electricity generators. c. Increase the number of high weather resistance power module, battery, and mobile relief vehicle. d. Telecommunications equipment are insured to reduce loss during extreme climate events. e. Apply water storage tank which can supply water continuously for 48 hours. f. Improved extreme weather event SOP to increase resilience. |
TWM implementing the following strategies:
|
TWM leverages the strengths of Kbro, momo, and AppWorks to develop business talent, enhance value
chain integration, and expand its scope as a Telco+Tech company. By integrating IoT and AI
services with energy-efficient IDC, TWM minimizes environmental impact while advancing smart
applications for industries and daily life, fostering a sustainable positive cycle. TWM sets business innovation KPIs and has established an Innovation Committee to oversee execution. Major innovation areas include:
|
| Target /Metric | The Environmental Management Working Group formulates environmental target and strategies to
promote various environmentally policies within the company. 97% of TWM’s carbon emission come
from electricity consumption, so TWM mainly focus on adopting energy-saving equipment and
increasing the usage of renewable energy. Meetings are held every six months to track performance, establish improvement areas, and regularly monitor progress. Among these TWM set three goals is a targets by 2035 including:
|
Based on development needs, TWM has set the following targets to achieve by 2035:
|
TWM has five long-term goals for users and members of innovative products and services,
aiming to reach 59.06 million users:
|
| Target Year | 2035 | 2035 | 2035 |
| Progress | The Environmental Management Working Group formulates environmental target and strategies to
promote various environmentally policies within the company. Meetings are held every six months to
track performance, establish improvement areas, and regularly monitor progress. In 2023, Three targets performance :
|
The target will be review annually.
|
TWM continuously integrating synergies to launch products and services, the progress under the 5
long-term goals are as follows:
|
| Executive Compensation | Climate-related KPIs are incorporated into the senior management's ESG performance indicators.
Including above KPIs: The energy intensity, the usage of renewable energy and resilient
infrastructure for server rooms. The compensations of senior manager adjustments are linked to ESG performance, including performance related to climate change, with a linkage ratio of 30% |
The employee training hours and employee engagement targets are incorporated into the senior
management's ESG performance indicators. The compensations of senior manager adjustments are linked to ESG performance, including performance related to talent development and retention, with a linkage ratio of 30%. |
The Technological
Innovation Application targets are incorporated into the senior management's ESG performance
indicators. Including the above KPIs: Smart innovation and application, enhance Smart life and home. The compensations of senior manager adjustments are linked to ESG performance, including performance related to technological Innovation Application, with a linkage ratio of 30%. |
| Impact 1 | Impact 2 | |
|---|---|---|
| Material Issue for External Stakeholders | Climate Change Mitigation and Adaptation | Technology Innovation and application |
| Cause of the external impact and the coverage of the business activity that has been considered in the assessment. |
Products and services, which is cover over 50% of the business actitvity. | Products and services, which is cover over 50% of the business actitvity. |
| External stakeholder(s)/impact area(s) evaluation | Environment & Consumers/end -users. Both combined in positive and negative impacts. |
Society & Consumers/end -users. Both combined in positive and negative impacts. |
| Topic relevance on external stakeholders | Taiwan Mobile has made concrete commitments to achieving net zero emissions by 2050, and
actively adopts energy-efficient equipment, develops green products and services to promote the
low-carbon transformation of the telecommunications industry. This enables consumers and clients
to access services that are both low-carbon and of high quality. The positive impact is that TWM provides a variety of low-carbon online products or services. These electronic products and services will not only enhance TWM's position as an environmentally friendly telecommunications company, but will also increase revenue, and the introduction of all products and services means that opportunities to avoid greenhouse gas emissions. The negative impact is that the phenomenon of global warming has resulted in extreme climate events, causing intensified windstorms and increasing damage to outdoor base stations, increasing the risk of not being able to provide stable service, leading to a poor network and service experience for consumers, which could impact TWM's market competitiveness. |
Positive impact: Integrate the advantages of group companies such as cableTV, e-commerce, and AppWorks innovations. Construct a sustainable ultra-5G ecosystem with five major aspects. Continue to cultivate new business talents and value chain integration capabilities, expand business scope and depth, and transform into a technology company. Develop services on society, “Digital inclusion”, Bilingual online, Tablet for everyone, Coding fun, Digital learning center and Digital Wings. Negative impact: The continuous innovation of technology has brought players from new categories into the market and that coupled with existing players catching up has made market competition fierce. To provide the better service for customers. Keep innovating products and services on GeForce Now, M+ enterprise telephone exchange and cloud telephone exchange, Internet of Things/Internet of Vehicles, smart streetlights and diversified telecom bill collection and payment (DCB) services. |
| Output Metric | 633,306 tCO2e | 24,490,456 people |
| Impact Valuation | Environmental value lost/ gained, assessed by True Value | Access by True Value to product/service with positive impact provided |
| Impact Metric | 975,789,516 NTD | 1,514,760,024 NTD |
