Supply Chain Management Framework and Supplier ESG Program

• Completed desktop carbon assessments for 142 suppliers and on-site carbon assessment for 10 suppliers

• Compared with the 2022 baseline year, the target is to achieve a 23% reduction in supply chain carbon emissions by 2035

Taiwan Mobile remains committed to fulfilling its corporate social responsibility and strengthening collaboration with suppliers to advance toward a sustainable net-zero future. Since revising its Supplier Sustainability Code of Conduct in 2023, Taiwan Mobile has further strengthened its requirements regarding human rights, labor rights, environmental protection, and business ethics, while incorporating its expectations for supply chain partners into the Code.

In 2025, building on this foundation, Taiwan Mobile continues to implement the ISO 20400 Sustainable Procurement Framework, expanding the scope of on-site carbon assessments and enhancing supplier training to improve ESG performance in all perspectives across its supply chain. At the same time, Taiwan Mobile has strengthened its supply chain sustainability risk early identification and management mechanisms to ensure suppliers proactively align its sustainability strategies with Taiwan Mobile, working together to build a more resilient and sustainable supply chain.

In line with this commitment, Taiwan Mobile also applies the principle that suppliers with better ESG performance are preferred in supplier selection and contract awarding. In 2025, three multi-year procurement contracts included clauses specifying that if suppliers achieve carbon reduction targets, Taiwan Mobile will prioritize contract renewal. This approach further encourages suppliers to continuously enhance their ESG performance and move forward together on the path to sustainability.

Since establishing its sustainable supply chain management framework, Taiwan Mobile has continuously refined its supply chain management approach. In 2023, Taiwan Mobile introduced the ISO 20400 Sustainable Procurement Framework and integrated sustainable procurement and supply chain management into its existing Procurement Management Regulations, which were approved by the General Manager. Accordingly, the procurement policies, management systems, and related processes systematically incorporate environmental, social, and governance (ESG) considerations. Supplier screening is conducted based on these three ESG dimensions for new suppliers, existing suppliers, and major procurement projects. Taiwan Mobile also continues to conduct audits to ensure suppliers comply with the Supplier Sustainability Code of Conduct. The seven key management areas covered under the Regulations are as follows:

• Quality management: Confirm that products and equipment meet the requirements for sustainability through the technical appraisal mechanism, and grasp the actual sustainability implementation status of each supplier through the supplier's performance, and make optimization and improvements based on the status.
• Service management: Suppliers are required to commit to complete service, delivery, and quality.
• Risk management: Suppliers must sign the "Declaration of Integrity in Business Conduct" and cannot violate fair competition, environmental protection, copyrights, and labor laws and regulations. We will use the annual ESG review to confirm the implementation status of business conduct integrity and conduct risk assessments to identify ESG risks of suppliers. This will be part of the supplier selection process.
• Opportunities identification: Identify suppliers who have consistently performed well in the industry according to ESG dimensions, identify the possible opportunities of each supplier for future cooperation for effective management and cooperation.
• Sustainability implementation: Organize regular education and training for procurement employees and suppliers to enhance awareness of sustainability for both roles.
• Low-carbon transportation: Incorporate transportation costs and carbon emissions from traffic into the planning of supply transportation routes and improve the sustainability of the current logistics flow.
• Continuation of green procurement: Taiwan Mobile has adopted to the ISO 20400 Sustainable Procurement Guidelines for procurement management in 2023 and set procurement processes and supply chain management procedures based on sustainability guidelines. Taiwan Mobile has also set relevant guidelines specific to each procurement project to reduce the environmental and social impacts generated by procurement activities.

Since 2018, Taiwan Mobile has been conducting greenhouse gas (GHG) inventories with its suppliers and continuously enhancing data quality each year. Using 2020 as the baseline year, Taiwan Mobile completed the 2023 GHG inventory for 128 Tier-1 suppliers in 2024, along with on-site GHG assessments for 10 suppliers.

Taiwan Mobile continues to identify key engagement suppliers based on the top 90% of emissions and procurement expenditure.. The 2025 inventory results highlighted engineering contractors, IT service providers, and equipment suppliers as the main emission hotspots in the supply chain.

Taiwan Mobile offers many internal ESG-related courses, such as TCFD, CDP, SBTi Carbon Reduction Pathways, Circular Economy, ESG Disclosure, etc., and requires relevant buyers and internal stakeholders to participate, with a requirement of 50 hours of courses annually. Additionally, to effectively advance ESG initiatives, Taiwan Mobile's Board of Directors incorporated ESG performance into its self-assessment framework starting in 2017. Furthermore, 100% of the variable compensation for senior management is linked to ESG performance and related goals to effectively advance ESG initiatives.

In 2025, Taiwan Mobile continued to host Decarbonization workshops, Mangrove Restoration Programs and ESG discussion sessions with suppliers. In addition to inviting suppliers to participate, responsible buyers were also required to attend in order to provide guidance and exchange views with suppliers.