Climate Change Data

Environmental Metrics

ESG Focus Areas

• Corporate Governance
• Employee and Social Care
• Environmental Protection
• Supply Chain Management
• Product and Service

Environmental Achievements

• Reduced CO2 emissions by 15.513 metric tons through energy-saving lighting initiatives.
• Recycled 330.9 metric tons of cardboard and 8,285,520 bottles in 2022.
• Reduced plastic container usage by 92.22% (33,682 kg) through substitution and reduction of single-use containers.

Social Achievements

• Donated over 11 tons of food to food banks, aiding nearly 5,000 families.
• Raised NT$145,899 for Ukraine relief efforts.
• Raised NT$783,000 for the Modern Women's Foundation to support victims of domestic violence.
• Established over 800 Simple Mart stores as 'safe help stations' for domestic violence victims.
• Awarded a silver medal in the chain supermarket section of the 2022 Best Service in Taiwan.

Governance Achievements

• Established a Corporate Sustainable Development Committee.
• Implemented a robust risk management system covering eight major risk categories.
• Maintained high compliance rates in product testing and supplier audits.

Climate Goals & Targets

Environmental Challenges

• Labor shortages
• Supply chain disruptions due to the pandemic and extreme weather.
• Inflationary pressures affecting consumer spending.
• Egg supply issues impacting bulk egg sales.

Mitigation Strategies

• Implemented employee benefits and franchise programs to address labor shortages.
• Developed alternative sourcing strategies and improved logistics efficiency.
• Introduced private label products and independently imported goods to mitigate inflation.
• Developed contingency plans for supply chain disruptions.

Supply Chain Management

Supplier Audits: 54 out of 55 OEM suppliers audited (98.2%)

Responsible Procurement

• Supplier management policies and inspections
• Prioritization of local suppliers (93.8% of products, 94% of procurement budget)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather

Transition Risks

• Regulatory changes

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards

Certifications: ISO 9001, ISO 22000

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• Private label products with focus on natural and additive-free ingredients
• Sustainable packaging initiatives

Awards & Recognition

• Silver medal in 2022 Best Service in Taiwan
• Taipei City Government Enterprise Elite Award (2022)
• Acclaim from the Council of Indigenous Peoples (2021)
• Gold medal in 2021 Happy Enterprise List
• Bronze medal in 2020 Best Service in Taiwan
• Award for Providing Employment to the Physically Challenged (2020)
• Taipei City Government Elite Award (2020)
• 3rd place in the Social Innovation Product and Service Procurement Award (2020)

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Implemented a non-return policy for many years to reduce carbon emissions generated by the return of products to the logistics center.

Social Achievements

• Optimized compensation and benefit structure to ensure competitive advantage in recruiting and retaining talent.
• Devote to employee competency building and education and training to strengthen talent development chain and enhance employee satisfaction.
• Adjusted the franchise system to provide more flexible franchise options and to work together with franchisees to encourage them to create higher performance.

Governance Achievements

• Established an Audit Committee.
• Elected three independent directors.
• Completely redesigned corporate website and added relevant disclosures on the operation of the Board of Directors.

Climate Goals & Targets

Environmental Challenges

• Tight labor market.
• Consumer prices are expected to continue to rise.
• intense competition in the retail market.

Mitigation Strategies

• Continue to open new stores and expand its economic scale to reduce purchasing costs.
• Continue merchandise adjustment policy and expand its self-imported and PB products to build up a competitive barrier.
• Optimize compensation and benefit structure.
• Invest in the optimization of information systems.
• Invest in the improvement of the logistics center processes and the expansion of service capacity.
• Adopt a variety of automated equipment in the logistics center to enhance the quality of logistics services and reduce the impact of labor shortages.
• Increase the proportion of franchisees.

Supply Chain Management

Supplier Audits: 72/year (100% coverage)

Responsible Procurement

• Self-importation, private brand development, supplier integrity statement

Climate-Related Risks & Opportunities

Physical Risks

• Rapid climate change, tropical cyclones, floods

Transition Risks

• Increase in operating costs, greenhouse gas emissions

Opportunities

• Green procurement, green cycle in all business operations

Reporting Standards

Frameworks Used: IFRS

Certifications: Null

Third-party Assurance: KPMG

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Private brand products, self-imported products

Awards & Recognition

• Not disclosed