Net Zero Emissions Strategy
Three Pillars of FET's Medium and Long-term Carbon Reduction Strategies
Phased net-zero emissions goals:
- Commitment to Achieve Net Zero in 2022
- FET formally joins RE100
- Pass SBT 1.5°C Review:
- Updated Short-term Targets : Commits to reduce absolute scope 1 and 2 GHG emissions 43.6% by 2030 from a 2021 base year and reduce absolute scope 3 GHG emissions 42% within the same timeframe.
- Set Long-term Targets : Commits to reduce absolute scope 1 and 2 GHG emissions 90% by 2048 from a 2021 base year and reduce absolute scope 3 GHG emissions 90% within the same timeframe.
- Overall Net-Zero Target : Commits to reach net-zero greenhouse gas emissions across the value chain by 2048.
- 100% use of renewable energy in all IDC offices and stores in Taiwan
- Achieve Short-term Targets
- The entire company expects to achieve 100% use of renewable energy
- Achieve Net Zero Emissions
Net Zero Emission Reduction Plan
| Scope 1 | Scope 2 |
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| Scope 3 | Remaining Emissions |
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Three Pillars of FET's Medium and Long-term Carbon Reduction Strategies
FET’s Internal Carbon Pricing Mechanism
1. Background and Purpose
To strengthen corporate sustainability and climate accountability, and to drive the achievement of our science-based emission reduction targets, Far EasTone Telecommunications has implemented an internal carbon pricing mechanism as a core strategy for advancing low-carbon transformation and fulfilling ESG commitments.
FET has pledged to align with the Science Based Targets initiative (SBTi) and adopt a decarbonization pathway consistent with the 1.5°C scenario. The company is committed to achieving net-zero greenhouse gas emissions across its entire value chain by 2048, with the following interim milestones:
- By 2030: Achieve 100% renewable energy usage across all IDC facilities, offices, and retail stores in Taiwan; reduce Scope 1 and Scope 2 emissions by 43.6%, and Scope 3 emissions by 42%, compared to the 2021 baseline.
- By 2040: Transition to 100% renewable energy usage company-wide.
- By 2048: Achieve net-zero emissions across all operations.
To deepen organizational engagement, FET has also integrated carbon performance into employee reward mechanisms, encouraging all employees to proactively adopt low-carbon practices in their daily work. Through collective action, we aim to accelerate progress toward net-zero and demonstrate our unwavering commitment to a sustainable future.
2. Pricing Model and GHG Scope Covered
Pricing Model and Reference Basis
FET adopts an "internal carbon fee" model, with a pricing benchmark set at NT$2,400 (USD$75) per metric ton of carbon dioxide equivalent (tCO₂e). This price reflects considerations such as the cost of renewable electricity procurement, solar project development, and energy-saving investments, and aligns with international carbon market trends. The rate of USD$75/tCO₂e corresponds with the lower bound of carbon pricing recommended by the IMF for high-income countries, as cited in the November 2021 World Economic Forum report.
This internal carbon fee will be subject to periodic review and adjustment in accordance with the company’s evolving net-zero roadmap, ensuring the mechanism remains forward-looking and effective.
GHG Scope Covered & Application
In principle, this mechanism applies to all routine business decision-making processes related to the company’s Scope 2 emissions (electricity consumption) and selected Scope 3 emissions, such as commuting, business travel, and waste management.
3. Objectives and Operational Mechanism
Target Setting
FET sets annual carbon reduction targets and monitors performance on a quarterly basis to ensure alignment with its ESG and net-zero commitments. By internalizing the concept of carbon pricing, the company strengthens employee engagement and promotes organization-wide participation in climate action.
Operational Mechanism
The mechanism operates across four key dimensions:
- Energy Conservation and Efficiency Improvements: Actions such as reducing unnecessary electricity usage and optimizing air conditioning settings.
- Low-Carbon Choices: Prioritizing online meetings, encouraging employees to commute using low-carbon transportation methods, and increasing resource recycling rates to reduce waste.
- Proactive Proposals: Through company-wide training, employees are encouraged to identify and propose energy-saving and carbon-reduction opportunities within their operational activities and value chains, such as process digitalization.
- Regular Monitoring: Carbon reduction targets are set for each emission-generating unit and tracked regularly. Units that fail to meet their targets will receive guidance and be provided with feasible improvement recommendations for carbon reduction.