In the current era of rapid globalization and urbanization, chain convenience stores have long been part of people's daily lives. President Chain Store Corporation clearly understands that in addition to the impact on nature, our value chain activities also have a high degree of impact on natural resources. Therefore, protecting biological diversity is the embodiment of our environmental responsibility, as well as the key to sustainable development.

From 2022, President Chain Store Corporation passed the Biodiversity Policy and No Deforestation Commitment, promising all operating locations and our supply chain will follow the principles of biodiversity protection and no deforestation.

Please refer to the "President Chain Store Corporation Biodiversity Policy and No Deforestation Commitment".

 

 

"Biodiversity Policy" and "No Deforestation" Commitment

"Biodiversity Policy" and "No Deforestation" Commitment	Biodiversity	No Deforestation
Scop	All operating locations and the supply chain.
Target year	Complete the process formulation and degree of quantifiable impact by 2025.	Complete the process formulation and degree of quantifiable impact by 2025.
	Net Positive Impact by 2050.	No Net Deforestation by 2035.
		No Gross Deforestation by 2050.
Execution Policies	Commitment to include a biodiversity assessment in the system.	Commitment to include a no deforestation verification mechanism in the system.
Principle	Conducting a biodiversity risk assessment for the value chain by following the mitigation hierarchy, covering operating locations, supply chain and partners (manufacturers and franchisees), as well as selecting material issues based on risk levels, set measurable management goals, take mitigation actions, as well as publicly disclose relevant results and share them with stakeholders.	Completion of inspections in order of levels and risks year by year with results published.
	Requirement for the value chain to commit to avoiding operating activities in areas with important biodiversity at home and abroad. The value chain includes operating locations, supply chain, and partners (manufacturers and franchisees).	Commitment to follow the principle of no net deforestation for our operating locations, areas adjacent to scope of our operations, supply chain, partners (manufacturers and franchisees) and stakeholder activities.
	Commitment to play an active role in the value chain of President Chain Store Corporation, covering operating locations, supply chain and partners (manufacturers and franchisees). In addition to entrusting a third‑party ecological consulting company to assist in reducing damage to ecological resources with correction, minimization, or compensation measures, the goal of no net loss (NNL) is set in priority areas.	Commitment that the Company will play an active role, participate in afforestation activities, and follow the principle of zero net deforestation.
	Commitment to actively engage in biodiversity discussions with stakeholders to ensure that President Chain Store Corporation and all stakeholders move towards the goal of achieving a net positive impact by 2050.	Commitment that the Company's operating locations and supply chain will meet the principle of zero gross deforestation by the target yea.
		Commitment to engage in biodiversity discussions with stakeholders.

"Biodiversity Policy" and "No Deforestation" Supplier Agreement

President Chain Store Corporation is committed to managing all suppliers with regard to "Biodiversity Policies" and "No Deforestation." In 2022, President Chain Store Corporation incorporated clauses on "No Deforestation & Biodiversity" into the "UNI-PCSC's Supplier Code of Conduct," strengthening raw material suppliers' focus on no deforestation actions and biodiversity. The content primarily includes requirements for suppliers not to clear forests by burning or logging, not to procure products from companies violating international laws or damaging conservation areas and peatlands, supporting biodiversity, and safeguarding the rights of farmers and workers. New suppliers have signed contracts under the updated terms, and future efforts will gradually expand management practices among suppliers, collaborating to achieve the vision of biodiversity protection and no deforestation.

Risk Assessment Procedure and Mitigating Action

Biodiversity Risk Assessment Procedure and Risk Level Definitions

In order to effectively implement biodiversity protection and mitigation actions, President Chain Store Corporation integrated biodiversity risk assessment process into multi-disciplinary company-wide risk management processes. The scope of the risk assessment including the company’s own operations and adjacent areas to own operations, also including biodiversity issues in its supplier risk assessment. In order to better understand the dependencies and impact of its own operations on biodiversity, we started working with an external environmental consulting firm in 2024. We have also sought assistance from a team of sustainability and biological experts from the National Pingtung University of Science and Technology based on the LEAP approach developed by the Taskforce on Nature-related Financial Disclosures (TNFD), to assess the dependencies and impact of its own operations on biodiversity for stores located around Kenting National Park. In order to identify operating locations with different risk levels, President Chain Store Corporation divides operating locations into low- medium- and high-risk areas according to the risk classification definitions, as well as prioritizing medium- and high-risk operating locations for actions:

 

Biodiversity Assessment of Store Operations

Biodiversity Risk Level Definitions and Action Plan

Risk Level Definitions and Action Plans
Level	Definition	Action Plan
Ａ High risk	The store is located in nature reserves, wildlife protected areas, important wildlife habitats, nature protected areas, national parks, national nature parks, conservation corridors in the Taiwan Ecological Network, involving important habitats for protected species or species classified as "Vulnerable" in the Red List of Taiwan	If the store is located in an area of high commercial value and may affect biodiversity, it is recommended to reduce its scale and invite ecological experts and the consulting firm to develop countermeasures, such as relocating or abandoning the plan of store expansion to reduce ecological impact. Level A means that there are species that are easily affected by convenience store operations in the area, making it necessary to conduct professional assessment of the negative ecological impact, positive community benefits and store space. If all three conditions are met, it will be upgraded to Level A+ (for example, opening a store considering ecological friendly concepts)
Ｂ Medium risk	The store is located in nature reserves, wildlife protected areas, important wildlife habitats, nature protected areas, national parks, national nature parks, conservation corridors in the Taiwan Ecological Network, without involving important habitats for protected species or species classified as "Vulnerable" in the Red List of Taiwan	Adopting environmental friendly decor or actions, ecological education and promotion measures, as well as regularly holding relevant promotion or activities to enhance the environmental awareness of employees and customers
Ｃ Low risk	Independent or street side stores located in commercial areas or non ecologically sensitive areas that are not in the aforementioned areas of concern with less impact on the environment	The store is allowed to open as usual

 

The result of Biodiversity Assessment

In 2024, 18 stores of President Chain Store Corporation were assessed and surveyed. The on-site survey covered 17 stores in national parks and 1 store near the park, 10 of which are located in the overlapping area of the "Taiwan Ecological Network" and the "Conservation corridors of the Coastal Forests of the Hengchun Peninsula," as well as another 3 stores exposed to the conservation corridors. The area is rich in biodiversity, and the assessment found that each store needs to strengthen environmental management measures to reduce potential impacts on the ecosystem and facilitate sustainable operations.

 

Item	Number of Operating Sites	Area of Operating Sites (Hectares)
Total number of operational sites	7,303	152.29
Operating areas subjected to biodiversity impact assessments (Assessment)	18	0.35
Operating areas with high potential for biodiversity impact(Exposure)	18	0.35
Operating areas affecting biodiversity with implementation biodiversity impact managing and monitoring systems (Management Plans)	3	0.00000006

 

Based on the assessment results, President Chain Store Corporation selected the following three stores for inspection and management in 2024. These stores are all at a medium-risk level and are expected to launch follow-up action plans in the future.

 

Store	Reason for Assessment
Eluanbi Cape store	Located near the famous tourist attraction Eluanbi Park with a diverse ecosystem in the surrounding area
Sail Rock store	Close to the Sail Rock scenic spot, located in the ecologically sensitive area of terrestrial crabon the coastline
Dolphin Bay store	Although the store is located outside the national park, it is adjacent to the national park and the store has a large land availability in the hinterland, so it is included in the spot check to strengthen the comprehensive assessment of ecological risks

Biodiversity Mitigation Hierarchy

• Avoid: President Chain Store Corporation introduces an ecological self-assessment mechanism in the process of opening new stores to assess whether the store is located in an ecologically sensitive area or an important habitat for protected species based on the store type and area classification, and pre-identify and avoid operations in high-risk areas (see the Biodiversity Assessment of Store Operations for details) to reduce impact on biodiversity from the source.
• Reduce: We regularly evaluate site conditions for existing stores. If they are located in high-risk areas, we will invite ecological experts to develop countermeasures and implement ecological compensation. If the impact cannot be avoided, we will consider relocation, downsizing or ceasing operations. Before opening new stores, an ecological impact assessment must be conducted to ensure that the native habitat is not destroyed, and the design or construction is adjusted accordingly to reduce the impact on ecology.
• Regeneration: President Chain Store Corporation invests in the "Sustainable Farm" program to recycle coffee grounds and food waste from the stores, turn it into organic fertilizer for crops while promoting soil regeneration.
• Restore: President Chain Store Corporation procures sustainable raw materials, such as FSC- and PEFC-certified paper packaging materials, coffee with rainforest certification, etc. to ensure our raw materials have limited impact on the environment as well as supporting the restoration of the ecosystem for the raw material (For detailed management measures, please refer to 3.4 Sustainable Procurement)
• Transition: President Chain Store Corporation continues to promote various transition programs to reduce the impact of operations on the ecosystem. To this end, it has launched the Veggie Selection® range of vegetarian products. In 2024, 16,424,723 Veggie Selection® products were sold. Compared with meat, vegetarian food produces lower overall greenhouse gas emissions, facilitates efficient use of land and water resources, as well as reducing the impact of the greenhouse effect on the environment. In addition, in order to raise the public's awareness of purple crow butterfly conservation, President Chain Store Corporation has produced environmental education materials related to purple crow butterfly conservation in its stores near purple crow butterfly habitats.