KPIs for Supplier Assessment and Development

• Completed desktop ESG assessments for 407 suppliers and conducted on-site assessment for 40 suppliers
• Maintained a 100% signing rate for the " Declaration of Integrity in Business Conduct " and the " Safety, Health and Environmental Protection Guarantee for Contractors"

Taiwan Mobile has a mechanism for regularly reviewing purchasing practices towards suppliers are continuously reviewed to ensure alignment with the Supplier Code of Conduct and to avoid potential conflicts with ESG requirements . We references international initiatives and global rating standard such as the SDGs, OECD, RBA, DJSI, and MSCI to continuously refine its supplier assessment system. A third-party consultant is commissioned to design the ESG self-assessment questionnaire. Through the evaluation process, suppliers are identified as low, medium, or high risk. Regular assessments and guidance are provided for high-risk suppliers to improve their performance, allowing suppliers to become long-term sustainable partners of Taiwan Mobile.

To enhance the management of supply chain risks, Taiwan Mobile conducts continuous and strict supplier sustainability risk assessments through an ESG self-questionnaire. This questionnaire references international initiatives and rating standards such as CDP, DJSI, and the United Nations Declaration of Human Rights, while considering specific risks associated with country, industry, and product. This is done to ensure the operational robustness and compliance of the supply chain.

• Country-specific risk: Assess the risk of supplier compliance with national regulations through regulatory requirements, including but not limited to government mandates regarding the prohibition of products from specific regions.

• Sector-specific risk: Identify the risks faced by the supplier's industry through ESG risk assessments, such as human rights risks in specific industries.

• Commodity-specific risk: Identify upstream and downstream risks in the product value chain through product value chain analysis, such as controversial materials.

These considerations were integrated into the ESG questionnaire. The 2025 ESG questionnaire covered 22 sustainability-related topics, with risk assessment dimensions shown in the table below:

Taiwan Mobile continuously conducts the "New Supplier ESG Performance Self-Assessment Form" to understand the status of suppliers' ESG implementation. All new suppliers working with Taiwan Mobile are required to complete the ESG Performance Self-Assessment Form. For major tenders, there are sustainability performance threshold requirements, and the ESG questionnaires of bidding suppliers must be reviewed by the second-party consultant. Only those who pass the threshold can participate in the bidding. Additionally, the ESG score is included in the supplier selection evaluation criteria, with a weighting of 5~10%. Also, the suppliers with better ESG performance are preferred in supplier selection and contract awarding.

Furthermore, all new cooperating suppliers must comply with Taiwan Mobile's "Supplier Code of Conduct" and sign the "Integrity Management Statement." Violators will have their cooperation terminated. In 2025 , the signing rate of the Supplier Code of Conduct reached 100%. Engineering contractors must read the "Contractor Safety, Health, and Environmental Management Standard Operating Procedures" and sign the " Safety, Health and Environmental Protection Guarantee for Contractors" The commitment signing rate for 2025 was 100%.

Taiwan Mobile has designed a three-year cycle (The latest cycle is from 2023 to 2025), setting KPI targets for desk assessment and on-site assessment. Taiwan Mobile aims to maintain the desk assessment ratio of tier-1 suppliers at over 80%. The cumulative on-site assessment ratio for tier-1 significant suppliers was 100% as of 2025.. The improvement tracking for high-risk suppliers is maintained at 100%.

*NoteTaiwan Mobile originally targeted achieving 100% carbon inventories for its Phase 1 key suppliers during 2023–2025. As of March 2026, the actual completion rate reached 96.5%. The remaining suppliers have not yet completed their carbon inventories primarily because their carbon inventory systems and supporting data collection processes are still under development. Taiwan Mobile continues to strengthen suppliers' carbon inventory capabilities through supplier engagement, training programs, and technical support.

Taiwan Mobile requires its suppliers to self-assess their ESG performance and conducts desk and on-site assessments to evaluate the authenticity and implementation status of the self-assessment results. Further risk identification is carried out to produce supplier ESG assessment reports and improvement recommendations. Suppliers are required to take steps to mitigate risks in high-risk areas.

Taiwan Mobile requires suppliers to self-assess their ESG performance, followed by both document and on-site assessments to evaluate the accuracy and implementation of these assessments. This is followed by document review and on-site assessments conducted by a team of second-party consultants. During these assessments, suppliers are also required to provide certificates from certified third-party bodies like ISO or other recognized energy labels to ensure alignment with international standard. Further risk identification processes are implemented, resulting in ESG assessment reports and improvement recommendations for suppliers. For high-risk issues, suppliers are required to make improvements.

However, if the suppliers continuously mark as high-risk in specific issue, the suppliers will be suspended or terminated. For details of the termination timeline please refer to the Supplier Operation and Management Guidelines (https://twmepmall.taiwanmobile.com/esp/index )
1st year: request improvement plans or send out the warning letter if the supplier does not respond with a relevant improvement plan.
2nd year: if continuously marked as high-risk in specific issue, suspend from tendering for 6 months.
3rd year: if continuously marked as high-risk in specific issue, suspend from tendering for a year.
4th year: if continuously marked as high-risk in specific issue, terminate cooperation.

Suppliers are required to truthfully report their sustainability management status and provide supporting evidence, followed by a document review by a third-party organization. This year, we completed 402 questionnaire desk assessment (excluding non tier-1 suppliers), urging suppliers to enhance their sustainability performance. We also conducted regular assessments of non tier-1 significant suppliers, reviewing a total of 6 in 2024. According to the review results, all suppliers were found to have no violations related to freedom of association or collective bargaining rights.

In 2025, Taiwan Mobile conducted the annual procurement analysis, reviewing procurement amounts, setting significant thresholds, and reviewing high-risk suppliers identified from the previous year. The Company selected 40 suppliers, including significant and high-risk suppliers, for on-site assessments.

Taiwan Mobile plans to continue conducting on-site assessments of significant suppliers in 2026, aiming to deepen connections with suppliers and advance sustainable practices through these inspections.

Taiwan Mobile monitors sustainability risks within its supply chain through regular ESG risk assessments, enabling early identification of potential risks and implementation of relevant risk controls. For high-risk suppliers, the company formulates corrective action plan, and high-risk suppliers are required to submit improvement plans within 30 to 45 days, and conducts on-site assessments in the following year to verify progress.

In 2023, cybersecurity risks were identified as the primary supply chain risk, prompting Taiwan Mobile to require suppliers to strengthen their cybersecurity management systems. In 2024, occupational health and safety management was the key supply chain risk, with ongoing improvement efforts required from suppliers. All high-risk suppliers identified in 2023 (zero cases) underwent 100% re-evaluation rate in 2024. In 2025, TWM conducted sustainability risk assessments for a total of 407 suppliers, identifying 0 high-risk suppliers in governance, 1 high-risk supplier in society, and 0 high-risk suppliers in the environment. TWM expects to complete 100% of follow-up reviews in 2026.

*NoteNo significant suppliers were identified as having actual or potential significant negative impacts in the 2025 assessment.

*NoteSuppliers with long-term engagement plans, including those invited to establish SBTi-aligned targets and high-risk suppliers requiring improvement. This includes suppliers participating in carbon reduction workshops, the green electricity group purchasing program, and high-risk suppliers identified in 2025.