Climate Change Data

President Chain Store Corporation

Climate Impact & Sustainability Data (2016, 2017, 2019, 2021, 2022, 2023)

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:155,494 tCO2e/year (Scope 1 and 2 combined)
Scope 1 Emissions:59,419 tCO2e/year
Scope 2 Emissions:96,075 tCO2e/year

ESG Focus Areas

  • Food safety
  • CSR
  • Ethical corporate management

Environmental Achievements

  • Reduced carbon emissions by at least 2% compared to the previous year (approximately 3780 tons of CO2e)
  • Awarded “Energy Saving Model” by the Ministry of Economy Affairs for reaching excellent result on implementation of 1% energy saving in 2015
  • Received many approvals, such as Occupational Health and Safety Management System (OHSAS 18001), Environmental Management System (ISO14001), Taiwan Occupational Health and Safety Management System (TOSHMS)

Social Achievements

  • Awarded “Named a Top 20 International Brand in Taiwan”, one of the top 5% of all TWSE/GTSM listed companies from the 3rd Corporate Governance Evaluation
  • Awarded “2016 traditional manufacturing and realty industry Awards of TCSA”,“2016 Supply Chain Management Awards of TCSA”, “ 2016 Corporate Citizenship Awards” by CommonWealth Magazine
  • Invested NT$36.39 million in labor safety and health
  • Signed up collective agreement
  • Donated NT$43.44 million to “0206 Earthquake” and “Food Safety Fund”

Governance Achievements

  • Established an exclusively dedicated unit “ethical management initiative team” supervised by the Board to be in charge of corporate ethical management and report to the board on a regular basis
  • Established “UPEC Ethical Corporate Management Best Practice Principles” and “UPEC Procedures and Guidelines of Conduct for Ethical Management”
  • Purchased D&O insurance for its directors (including independent directors) and supervisors

Climate Goals & Targets

Medium-term Goals:
  • Drop down to 80% of the 2005 emissions by 2020
Short-term Goals:
  • Reduce carbon emissions by at least 2% compared to the previous year

Environmental Challenges

  • Numerous operation challenges
  • Food safety remained the top concerned issue in Taiwan
  • Global economy in 2016 performed weakly
  • Challenges of a globalized economy and the strategic need to make a foray into the Pan-Asian and international market
  • Food safety management, laws and government policies adherence, shortage in labor supply, strategic planning adjustments from major manufacturers
  • Volatile global grain prices and devaluated NT dollar make harder to control raw material cost
  • Market saturation and overcapacity
  • Affected by the limited market scope, low entry barrier, high consumers' price sensitivity, vast private label products, more eat-outs and lesser oil uses, home edible oil market becomes highly competitive
  • Risks and costs of operations increase due to the price fluctuation of international commodities and the high standard food safety laws
  • The booming development of Ready-to-eat food in CVS erodes the instant noodle market
  • Long-term shortage of raw milk limits the sales growth of fresh milk
  • International raw material price keeps climbing and compresses gross margin
  • The trend of media diversity is becoming more and more obvious, resulting in the need to invest more budgets to assure the brand communication result
  • The public is very concerned about food safety issues
  • It's not easy to invest or renew fix assets due to the slow dumpling markets
  • Price of hogs is susceptible to the epidemic diseases and international trading, cost are hard to maintain
  • Products tended to be homogeneous that created a fierce price competition and increased concern on the safety and quality of processed meat products reduced consumption
  • Since products of similar concept i.e. red yeast rice supplement has NT$1 billion market, or of similar function i.e. Nattokinase supplement has NT$0.4 billion market, we need to invest more marketing resources to differentiate Metamin Health 3D's specialty and efficacy in order to escape from the competition from low-price supplements
  • The convenience store market is saturated, while discount supermarkets have sprung up, blurring the line between the two, resulting in increasingly fierce competition
  • Rising raw material prices and utility costs result in higher operating costs
  • Increasing inflation results in a decrease in real income, so consumers will remain cautious with their purchases
Mitigation Strategies
  • Building a “Food Safety Building” that cost NT$1 billion and began to operate in 2017
  • Stabilized profitable model and risk control mechanism
  • Neither compromises nor tolerances to any issues relating to food safety are allowed
  • Established different subsidiaries according to their respective industry position, characteristics and relevance
  • Strengthen core capabilities and find out key success factors, in order to maintain market competitiveness
  • Increase our profit through efficient raw material control, and minimize loan risks by monitoring clients' credit lines and account receivables
  • Improve our sales network, value-added products, product portfolio, and raw material differentiation to raise our margin
  • Explore opportunities from consumer insight as well as import unique products abroad to help expand the economic scale in niche market
  • Improve our supply chain management, intensifying our R&D to create innovative and unique products, and stepping into Ready-to-eat market
  • Expand our sources of raw milk by raising productivity of cows, eliminating possibilities of cow diseases, and introducing new cows and milk farmers
  • Redesign bottle and label to inhibit the systematic cost increases
  • Deliver product differentiation and segmentation, and innovative marketing communications to substitute price promotions
  • Seek for the best media combination to maximize the benefit, and aligned with trade marketing activities simultaneously to pursue the integrated marketing communication efficiency and effectiveness
  • Set up the industry's highest food security control system that can detect every process from raw material to the production
  • Actively engage in exploring microwavable products and upgrade product quality, and restructure our production to increase production volume
  • Strengthen our channel merchandising at supermarket chains and convenient stores to slow down the impact of price setting
  • Adopt clean and certified raw materials into our production and offer consumers a broader variety of healthy, delicious and easy prepared premium products in small-sized pack
  • Develop more apt products for food service operations
  • Invest more marketing resources to differentiate Metamin Health 3D's specialty and efficacy in order to escape from the competition from low-price supplements
  • Launch differentiated products and services to meet consumers' needs and further build our competitive advantages
  • Optimize the operation of our product portfolio, marketing strategy, channel management and increase pricing power
  • Control the inventory volume of raw material to lower the effect of the material price fluctuation on the company's operation
  • Use forward foreign exchange contracts to manage their foreign exchange risk arising from future commercial transactions and recognized assets and liabilities

Supply Chain Management

Supplier Audits: 229/year

Responsible Procurement
  • Raw materials must be approved by the evaluation team
  • All suppliers must be registered in the government's “Food Merchant Registration System”
  • All suppliers of raw and packaging materials that come in direct contact with food are required to implement the ISO 22000 or FSSC 22000 food safety management system
  • Business contracts with suppliers will include CSR provisions

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI GRI Version 4.0

Certifications: ISO 14001, OHSAS 18001, TOSHMS, ISO 22000, FSSC 22000, ISO 9001:2008/CNS 12681, ISO/IEC 27001

Third-party Assurance: PwC Taiwan

Sustainable Products & Innovation

  • Wheat Fragrance Tetra Aseptic Paper Package series certified by the FSC
  • Non-Fried Noodles
  • Meat Retort Pouch (Imperial Meals)
  • Chilled Tea
  • Single Cell Extraction Tea Series (Chai Li Won)
  • Gastro-intestinal regulated drinks (AB Yogurt Drink)
  • 72°C low temperature sterilized full nutrient milk (Rie Shue)

Awards & Recognition

  • Silver Award in Traditional Manufacturing Industry and Supply Chain Management by Taiwan Institute for Sustainable Energy (TAISE)
  • Named a Top 20 International Brand in Taiwan
  • 2016 traditional manufacturing and realty industry Awards of TCSA
  • 2016 Supply Chain Management Awards of TCSA
  • 2016 Corporate Citizenship Awards by CommonWealth Magazine
  • Energy Saving Model by the Ministry of Economy Affairs
  • E-sport industry certificate by MOE
  • 2016 Most admired company in Taiwan Awards by CommonWealth Magazine
  • Supply Chain Management Awards by TCSA
  • Taiwan Top 50 Taiwan Corporate Sustainability Report Award

Reporting Period: 2017

Environmental Metrics

Total Carbon Emissions:56,544 tCO2e/year (Scope 1) and 95,894 tCO2e/year (Scope 2)
Scope 1 Emissions:56,544 tCO2e/year
Scope 2 Emissions:95,894 tCO2e/year

ESG Focus Areas

  • Food safety
  • Environmental protection
  • Corporate social responsibility
  • Ethical corporate management

Environmental Achievements

  • Reduced carbon emissions by at least 2% compared to the previous year (approximately 3780 tons of CO2e)
  • Xinshih General Plant was awarded “Energy Saving Standard Award” by the Ministry of Economy Affairs.

Social Achievements

  • Launched various communication channels for employee complaints and suggestions.
  • Invested NT$48.10 million in labor safety and health.
  • Signed collective agreement with labor union.

Governance Achievements

  • Established an exclusively dedicated unit “ethical management initiative team” supervised by the Board to be in charge of corporate ethical management.
  • Amended the company's “Rules of Procedures for Board Meeting”, “Audit Committee Charter”, and “Rules Governing the Scope of Powers of Independent Directors” to comply with the latest regulations.
  • Established “UPEC Ethical Corporate Management Best Practice Principles” and “UPEC Procedures and Guidelines of Conduct for Ethical Management”.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Achieve 30% renewable energy by 2030
Short-term Goals:
  • Reduce water consumption by 10% by 2025

Environmental Challenges

  • Volatile global grain prices and devaluated NT dollar affecting raw material costs.
  • Market saturation and overcapacity in flour market.
  • Fierce competition in home edible oil market due to limited market scope, low entry barrier, and increasing health issues.
  • Booming development of Ready-to-eat food in CVS eroding the instant noodle market.
  • Long-term shortage of raw milk limiting the growth potentials of fresh milk.
  • Increasing material prices and stern competitions in soy sauce market.
  • Price of hogs susceptible to epidemic diseases and international trading, making cost hard to maintain.
  • Public concern about food safety issues.
Mitigation Strategies
  • Efficient raw material control and minimizing loan risks by monitoring clients' credit lines and account receivables.
  • Improve sales network, value-added products, product portfolio, and raw material differentiation to raise margin.
  • Focus on market trend of key raw materials, source safety and product freshness management, and gain into consumer insight, for optimal product items and operating efficiency.
  • Improve supply chain management, intensify R&D to create innovative and unique products, and step into Ready-to-eat market.
  • Expand sources of raw milk by raising productivity of cows, eliminating possibilities of cow diseases, and introducing new cows and milk farmers.
  • Aggressively explore food/ service channels and develop new categories at minimal cost at each process, and leverage distinct and superior strategies to reduce the impacts of price competitions.
  • Adopt clean and certified raw materials into production and offer consumers a broader variety of healthy, delicious and easy prepared premium products in small-sized pack.
  • Set up the industry's highest food security control system that can detect every process from raw material to the production.

Supply Chain Management

Supplier Audits: 169 audits in 2017

Responsible Procurement
  • All suppliers must sign Sunshine Transparency Act to ensure ethical management, and concern environmental protection and energy-saving carbon reduction in supply chain.
  • Sales contracts include CSR provisions, requiring all business practices to be conducted in a moral and legal manner, as well as meet public expectations, while also taking into account their impact on society and the natural environment.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI GRI Version 4.0

Certifications: ISO 22000, ISO 9001:2008, ISO/IEC 27001, OHSAS 18001, ISO14001, Taiwan Occupational Health and Safety Management System (TOSHMS)

Third-party Assurance: PwC Taiwan

Sustainable Products & Innovation

  • Wheat Fragrance Tetra Aseptic Paper Package series certified by the FSC
  • Lightweight packaging materials

Awards & Recognition

  • Named a Top 20 International Brand in Taiwan
  • 2017 traditional manufacturing and realty industry Awards of TCSA
  • 2017 Social Inclusion Awards of TCSA
  • E-sport industry certificate by MOE
  • 2017 Top 20 of most popular employers among the new generation by Cheers Magazine
  • National occupational safety and health award by OSHA for Yungkang Main Plant and Chungli Main Plant
  • Taiwan Top 50 Taiwan Corporate Sustainability Report Award

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:476,767.691 tCO2e/year
Scope 1 Emissions:30,702.887 tCO2e/year
Scope 2 Emissions:446,064.804 tCO2e/year
Scope 3 Emissions:53,768.48 tCO2e/year
Total Energy Consumption:836,895,000 MWh/year
Water Consumption:2,659,660 m3/year
Waste Generated:47,768.22 tons/year
Carbon Intensity:3.01 tons CO2e/NT$1 million in revenue

ESG Focus Areas

  • Corporate Governance
  • Economics
  • Environment
  • Society

Environmental Achievements

  • Electricity intensity of stores reduced by 1.45% than 2018; Electricity intensity of the headquarter reduced by 2.4% than 2018
  • GHG emissions in 2019 decreased 20.79% compared with the previous year
  • Number of refurbishment and reuse machines in 2019 reached 1,525
  • Environmental label and energy saving products accounted for 14.08% of the annual purchase
  • Plastic straw use reduced by 229 million in six months

Social Achievements

  • Organizing 17,960 Good Neighbor Funfests event attracting over 360,000 participants
  • Raising NT$ 190,000,000 in spare change and pledged donation of goods
  • In 2019, PCSC headquarters and stores employed 3.08 times more disabled individuals than required by law
  • Employees received an average of 38.57 hours of training, the highest since 2013
  • 0 case of serious occupational incidents. The frequency-severity indicator for 2019 was 0.21

Governance Achievements

  • PCSC was listed on the Dow Jones Sustainability World Index and Dow Jones Emerging Markets Index for the first time
  • PCSC once again ranked in the top 5% in the Taiwan Corporate Governance Evaluation System
  • In 2019, PCSC was the first company in the retail industry presented the Labor Safety Unit Award by the Taipei Government
  • PCSC received the Corporate Sustainability Award from TCSA for the third year in a row

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Reduce GHG emission intensity by 30.03% lower than the emission intensity in 2015 by 2022
  • Expand Good Neighbor Meal Delivery Teams to 90 stores serving 30,000 meals by 2024
  • Assist a total of 30 groups of young people through the Deep Roots Project between 2018 and 2024
Short-term Goals:
  • Reduce GHG emission intensity by 9.26% before 2021
  • Maintain average water consumption of stores and PSD at the 0.5% level of 2018 between 2019 and 2021
  • Maintain the relationship strength between waste generation of stores and PSD at 0.9% between 2019 and 2021

Environmental Challenges

  • Global economic turbulence
  • Demographic structure changes in Taiwan (declining birthrate, aging population)
  • Large-scale epidemics
  • Water shortages in some areas
  • Changing consumer habits regarding plastic reduction
Mitigation Strategies
  • Optimized franchising mechanism
  • Developed products for senior consumers
  • Implemented AI technologies and logistics automation
  • Established epidemic crisis taskforce and notification system
  • Implemented work-from-home and online conferencing systems
  • Installed water-saving equipment
  • Voluntarily participated in plastic straw reduction

Supply Chain Management

Supplier Audits: 177 audits on privately-owned food product suppliers (100% pass rate); 18 audits on non-food suppliers (100% pass rate)

Responsible Procurement
  • PCSC and PCSC Subsidiaries' Code of Conduct for Supplier
  • Agreement of the Ethical Corporate Management and the Corporate Social Responsibility
  • Sustainable procurement standards
  • ESG integration into supplier assessment

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity of extreme weather events (typhoon, flood)
Transition Risks
  • Fuel/Energy taxes or related laws

Reporting Standards

Frameworks Used: GRI Standards (2016 edition)

Certifications: ISO 14064-1:2006, ISO 45001

Third-party Assurance: SGS Taiwan Ltd., PricewaterhouseCoopers (PwC) Taiwan

UN Sustainable Development Goals

  • SDG 2: Zero Hunger
  • SDG 3: Good Health and Well-being
  • SDG 8: Decent Work and Economic Growth
  • SDG 11: Sustainable Cities and Communities
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action

Initiatives aligned with SDGs are detailed throughout the report, particularly in chapters 5 and 6.

Sustainable Products & Innovation

  • Eco-friendly packaging materials
  • Energy-efficient equipment

Awards & Recognition

  • Dow Jones Sustainability World Index and Emerging Markets Index
  • TWSE Corporate Governance 100 Index
  • FTSE4Good TIP Taiwan ESG Index
  • FTSE4Good Emerging Markets Index
  • MSCI Global Sustainability Indexes
  • MSCI Global SRI Indexes
  • Taipei City Award for Excellence in Labor Safety
  • Corporate Sustainability Award from TCSA

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:189,000 tCO2e (2005 baseline, target to reduce to 80% by 2025)
Scope 1 Emissions:55,540 tCO2e (2021)
Scope 2 Emissions:96,594 tCO2e (2021)
Water Consumption:4,233 thousand tons (2021)
Waste Generated:35,754 tons (2021)
Carbon Intensity:143.07 kgCO2e/ton product (2021)

ESG Focus Areas

  • Food Safety
  • Integrity
  • Brand Management
  • Corporate Taste
  • Environmental Protection
  • Employee Welfare
  • Work Safety
  • Ethical Corporate Management
  • Climate Change
  • Human Rights
  • Stakeholder Engagement

Environmental Achievements

  • Reduced CO2e emissions by 5,269 metric tons through energy saving projects, saving NT$31.65 million.
  • Achieved 95.65% waste resource recovery rate.
  • Reduced total waste quantity by 2,152 metric tons compared to 2020.
  • 40.29% of paper packaging materials procurement from FSC TM certified suppliers.

Social Achievements

  • Launched various employee wellbeing initiatives including dormitories, meals, health check-ups, and fringe benefits.
  • Implemented employee retirement system complying with labor standards and pension acts.
  • Maintained a disabling injury frequency rate of 0.43 and a disabling injury severity rate of 47.
  • Average proportion of female workers was 38.44%, and among middle-level and above managers, women accounted for 22.39%.

Governance Achievements

  • Established and disclosed Corporate Governance Best-Practice Principles.
  • Established an internal operating procedure to handle shareholders' suggestions, doubts, disputes and litigations.
  • Established internal rules against insider trading.
  • Implemented annual board performance evaluation.
  • Regularly evaluated the independence of CPAs.

Climate Goals & Targets

Medium-term Goals:
  • Reduce GHG emissions to 80% of 2005 levels (189,000 tons of CO2e) by 2025.
Short-term Goals:
  • Reduce water consumption by 15,000 m3 annually through water-saving projects.

Environmental Challenges

  • Supply chain pressures due to the COVID-19 pandemic and volatile raw material prices.
  • Rising raw material prices, particularly for imported goods.
  • Intense competition in the food industry.
  • Long-term shortage of raw milk.
  • Climate change risks (physical and transition risks).
Mitigation Strategies
  • Optimized organizational structure and risk control mechanisms.
  • Strengthened supply chain management and procurement capacity.
  • Increased investment in R&D for product innovation and differentiation.
  • Expanded raw milk sources and improved milk quality control.
  • Developed alternative sourcing strategies.
  • Adopted TCFD-aligned disclosure and management framework to assess climate change impacts.
  • Developed short-, medium-, and long-term governance strategies for climate change issues.

Supply Chain Management

Supplier Audits: 194 supplier audits in 2021; 186 rated excellent (95.8%)

Responsible Procurement
  • Supplier Code of Conduct
  • Sustainability requirements in sales contracts
  • ISO 22000/FSSC 22000 certification for raw material and food contact packaging suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and green energy management

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 14001, ISO 45001, ISO 22000 / FSSC 22000 (for 180 suppliers), ISO/IEC 27001 (Information Security)

Third-party Assurance: PwC Taiwan (limited assurance)

Sustainable Products & Innovation

  • Products with reduced additives and environmentally friendly packaging.

Awards & Recognition

  • Top 25 International Brand in Taiwan (2021)
  • 2021 traditional manufacturing and realty industry Awards of TCSA
  • 2021 Social Inclusion Awards of TCSA

Reporting Period: 2022

Environmental Metrics

Scope 1 Emissions:29,940.01 tCO2e/year
Scope 2 Emissions:504,544.40 tCO2e/year
Scope 3 Emissions:2,393,290.28 tCO2e/year
Renewable Energy Share:0%
Total Energy Consumption:116.9 million kWh/year
Water Consumption:3,020,304.2 m3/year
Waste Generated:43,922.12 tons/year
Carbon Intensity:2.92 tonnes CO2e/NT$ million turnovers in 2022

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced single-use plastics by 58.8 metric tonnes through the "bring your own cup" initiative (12.18% of consumers participated).
  • Reduced energy consumption by 116.9 million kWh, equivalent to 59,524 metric tonnes of carbon emissions.
  • Reduced food waste by 9,780.15 metric tonnes through the "iLove Food" campaign.
  • Reduced average waste generated per store by 5.80%.
  • Antong store in Tainan became the first convenience store to obtain the "Near-Zero Carbon Building" label.
  • Achieved ISO14064-2 certification for micro-carbon offsets.

Social Achievements

  • Expanded the application of the circular economy by building a "Good Neighbor Cardboard Library" with recycled cardboard boxes.
  • Won the "Excellence Award for Promoting the Employment of Middle-aged and Elderly Job Seeker" from the Ministry of Labor.
  • Raised NT$463 million for public welfare.
  • Good Neighbor Meal Delivery Team delivered and picked up meals for 46,335 people.

Governance Achievements

  • Ranked in the top 5% in the 8th Taiwan Corporate Governance Evaluation System for the eighth consecutive year.
  • Re-listed by the Dow Jones Sustainability Index (DJSI) for the Sustainability World Index for 4 consecutive years.
  • Achieved a score of A- from CDP (Carbon Disclosure Project) on climate change questionnaires.
  • Officially became a TCFD supporter.

Climate Goals & Targets

Long-term Goals:
  • Phase out single-use plastics by 2050.
  • Achieve net-zero emissions by 2050.
Medium-term Goals:
  • Reduce single-use plastic to less than 10% by 2028.
  • Achieve 14% renewable energy by 2030.
  • Halve food waste by 2030 (compared to 2019).
Short-term Goals:
  • Reduce water consumption by 5% by 2025 (compared to 2019).

Environmental Challenges

  • Inflation, geopolitical conflicts, and the COVID-19 pandemic impacted business operations.
  • Climate change impacts, including extreme weather events, pose risks to supply chains and operations.
  • Rising raw material costs and potential carbon fees.
  • Aging population and low birth rate impacting workforce availability.
Mitigation Strategies
  • Implemented energy-saving measures in stores, reducing electricity consumption.
  • Developed alternative sourcing strategies for raw materials.
  • Introduced environmentally friendly vehicles for logistics.
  • Expanded the recruitment of middle-aged and elderly employees.
  • Developed AI order forecasting system to reduce inventory and waste.

Supply Chain Management

Supplier Audits: 100% of significant tier-1 suppliers and 100% of significant non-tier 1 suppliers

Responsible Procurement
  • PCSC and PCSC Subsidiaries’ Code of Conduct for Suppliers
  • Increased procurement of sustainably certified raw materials (14.12% in 2022).

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity of extreme weather events (floods, typhoons).
Transition Risks
  • Potential carbon fees.
Opportunities
  • Development of energy-efficient products and services.
  • Transition to low-carbon transportation.

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB, TCFD

Certifications: ISO 45001, ISO 14064-1:2018, ISO 50001, AA1000 Type Two High Level, TPIPAS, ISO 27001

Third-party Assurance: PwC Taiwan, SGS Taiwan, BSI Taiwan

UN Sustainable Development Goals

  • SDG 2: Zero Hunger
  • SDG 3: Good Health and Well-being
  • SDG 4: Quality Education
  • SDG 8: Decent Work and Economic Growth
  • SDG 11: Sustainable Cities and Communities
  • SDG 12: Responsible Consumption and Production
  • SDG 13: Climate Action
  • SDG 17: Partnerships for the Goals

PCSC integrates the SDGs into its operations through various initiatives, including food waste reduction, health promotion, education programs, community development, and environmental protection.

Sustainable Products & Innovation

  • Veggie Selection plant-based food products
  • OPEN iECO Recycled Cups Renting Service
  • Intelligent automatic recycling machines
  • CHIC Corporate Charity Sustainable Circular Economy Program products

Awards & Recognition

  • Dow Jones Sustainability World Index listing (4 consecutive years)
  • FTSE4Good Emerging Markets Index selection
  • MSCI ESG Leaders Indexes and MSCI Global SRI Indexes selection
  • FTSE4Good TIP Taiwan ESG Index selection
  • Asia Responsible Enterprise Award (11th)
  • TCSA "Ten Most Prestigious Sustainability Awards–Top Ten Domestic Companies"
  • Excellence Award for Promoting the Employment of Middle-aged and Elderly Job Seeker

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:5,100,595.56 tCO2e/year
Scope 1 Emissions:30,177.03 tCO2e/year
Scope 2 Emissions:513,790.60 tCO2e/year
Scope 3 Emissions:4,556,627.93 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:3,737,432.37 GJ/year
Water Consumption:3,272,705.04 m3/year
Waste Generated:43,764.67 tons/year
Carbon Intensity:2.75 tonnes CO2e/NT$ million turnovers in 2023

ESG Focus Areas

  • Environment
  • Social
  • Governance

Environmental Achievements

  • Reduced carbon emissions by approximately 57,669 metric tonnes of carbon emissions.
  • Reduced food waste by 13,723.31 metric tonnes.
  • Stores reduced carbon emissions by approximately 57,669 metric tonnes.
  • Overall energy-saving transition saved 116.7 million kWh of electricity
  • More than 1,000 stores now offer “OPEN iECO Recycled Cups Renting Service”
  • Nearly 70,000 people have used and rented cups by 2023, reducing a total of 200,000 disposable beverage cups

Social Achievements

  • Launched the “Furbaby Welfare Enterprise Project”
  • Increased social welfare capacity to support nearly a hundred social welfare groups, with nearly a 50%-increase in fundraising results
  • 80% of the respondents to the annual Employee Engagement Survey ranged from positive to very positive.
  • Ranked among the top 10% of listed companies in the Ministry of Labor’s “Healthy Workforce Sustainability Leading Enterprise”

Governance Achievements

  • Linked sustainable performance to the remuneration of senior executives
  • Integrated ESG into corporate culture and operations strategies
  • Set up a Risk and Information Security Management Committee under the Board of Directors

Climate Goals & Targets

Long-term Goals:
  • Net-zero emissions by 2050
  • Completely phase out single-use plastics by 2050
Medium-term Goals:
  • Reduce plastic consumption by 30% by 2030
  • Reduce food waste by 50% by 2030
  • Achieve 18% sustainable raw materials by 2030
Short-term Goals:
  • Reduce water consumption by 5% by 2025
  • Reduce plastic consumption by 10% by 2028
  • Achieve 16% sustainable raw materials by 2025

Environmental Challenges

  • Supply chain disruptions and inflation
  • Aging population and low birthrate
  • Global economic uncertainty
  • Online transaction security
  • Climate change
  • Plastic pollution
  • Food loss and waste
  • Waste management
Mitigation Strategies
  • Developed alternative sourcing strategies
  • Implemented age-friendly employment practices
  • Integrated risk management into operations
  • Strengthened information security measures
  • Set net-zero emissions targets
  • Implemented plastic reduction initiatives
  • Launched food waste reduction programs
  • Improved waste management systems

Supply Chain Management

Supplier Audits: 100% of significant suppliers audited

Responsible Procurement
  • UNI-PCSC’s Supplier Code of Conduct
  • Agreement on Ethical Corporate Management and Corporate Social Responsibility
  • ESG assessment for new suppliers
  • Prioritization of sustainably-certified raw materials

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Changes in rainfall patterns
  • Sea level rises
Transition Risks
  • Regulatory changes (carbon fees)
  • Changes in consumer preferences
  • Increase in raw material/product costs
Opportunities
  • Development of low-carbon products and services
  • Adoption of more efficient transportation methods
  • Incorporation of circular economy

Reporting Standards

Frameworks Used: GRI Standards (2021), SASB, TCFD

Certifications: ISO 45001, ISO 14064-1:2018, ISO 50001, AA1000 Type Two High Level, TPIPAS, ISO 27001

Third-party Assurance: PwC Taiwan, SGS Taiwan, BSI Taiwan

UN Sustainable Development Goals

  • Goal 2: Zero Hunger
  • Goal 3: Good Health and Well-being
  • Goal 4: Quality Education
  • Goal 8: Decent Work and Economic Growth
  • Goal 11: Sustainable Cities and Communities
  • Goal 12: Responsible Consumption and Production
  • Goal 13: Climate Action
  • Goal 17: Partnerships for the Goals

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

  • Veggie Selection
  • Low-carbon rice
  • Products with reduced saturated fat, trans fat, sodium, and sugar
  • Products with FSC-certified packaging

Awards & Recognition

  • Dow Jones Sustainability World Index (5 consecutive years)
  • FTSE4Good TIP Taiwan ESG Index
  • Taiwan RAFI® EMP 99 Index
  • Corporate Citizen Award (CommonWealth Magazine)
  • TCSA Most Prestigious Sustainability Awards
  • Top 10% high-performance enterprises in the “Healthy Workforce Sustainability Leading Enterprise”
  • Top 50 CommonWealth Talent Sustainability Award
  • Social Empowerment Award (Enterprise Asia)
  • ESG Award in ESG Integrated Performance (Global Views Monthly)
  • Platinum Report Award (TSCA)
  • MSCI ESG Leaders Index
  • CDP A-score leader on climate change questionnaire (2 consecutive years)