Environmental and Energy Management

- Policy and Commitment

To realize the vision of green operations, President Chain Store Corporation has formulated "Environmental Policy", "Energy Policy", and "GHG Policy" as the guiding principles for the Company's actions on environmental issues. Based on the policies, President Chain Store Corporation realize sustainability in our operations and business model, making green consumption a part of daily life.

 

- Environmental Policy

President Chain Store Corporation is dedicated to becoming the leading retailer, providing the most convenient lifestyle services and fulfilling its responsibilities as a corporate citizen. Following the "President Chain Store Corporation Corporate Sustainability Development Code of Practice," the company has established a cross-departmental Sustainable Development Committee under the authority of the Board of Directors to address environmental issues arising from business operations, and report regularly to the Board. The Environmental Group, operating under Sustainable Development Committee, is responsible for managing environmental issues and incorporating the perspectives of external stakeholders in formulating and implementing environmental policies. President Chain Store Corporation, together with its affiliates, subsidiaries, key suppliers, and other partners, is committed to the following:

• Comply with environmental protection laws and regulations and prohibit any behavior that may harm the environment.
• Continuously improve our environmental protection performance, as well as optimizing our surrounding environment
• Cherish the use of resources and increase recycling and reuse, sticking to the principle of "making the most of resources."
• Endeavor to reduce the amount of waste based on the concept of "pollution prevention."
• With consideration to the environmental impact of our products and services in each phase of the life cycle from R&D, design, manufacturing, packaging to delivery, we will reduce resource consumption and increase the efficiency of resource use.
• Build up an eco-friendly value chain step-by-step, take environmental aspects into the selection of suppliers and key business partners (including but not limited to joint venture partners, licensees, and outsourcing partners) within the decision-making and processes of new project development and corporate mergers and acquisitions.
• Support community development and manage sustainable relationships with local communities.
• Promote environmental education and training, share environmental protection concepts with stakeholders like employees and customers in order to protect the environment together.
• Set short- and medium-term environmental management goals to actively reduce the negative impact on the environment from the production process to the value chain of distribution and logistics.
• In response to the Paris Agreement's global strategy of limiting global warming to within 1.5°C, we committed not funding climate-denial or lobbying against climate regulations, and achieving the net-zero emissions target for Taiwan's store operations by 2050.

Note：Please refer to the "Policies and Documents" page for the Environmental Policy.

 

- Energy Policy

As we strive to meet customer needs, we have made energy conservation and carbon reduction actions a core value of our business strategy. We use our stores as a base for energy conservation and carbon reduction by maximizing our advantage as a retail channel. We also exert our influence through the benefits of energy conservation. Our commitments：

• Complying with the government's energy laws and regulations and continuing to make energy improvements.
• Expanding stores with energy saving designs and developing and selling energy-efficient products.
• Optimizing our energy use to achieve sustainable corporate development.

Energy Management Programs	Management Actions in 2024
Energy audits to identify opportunities for improving energy performance	President Chain Store Corporation tracks electricity consumption of retail stores quarterly and sets annual Energy Use Intensity (EUI) targets for each store. This approach allows us to conduct energy audits on stores that have energy-saving potential or abnormal electricity consumption, thereby further improving energy performance.
Quantified targets to address energy savings	Our target to address energy saving is to achieve a 0.5% reduction in Energy Use Intensity (EUI) compared to the previous year, while the performance EUI value increased by 5.75% in 2024.
Actions to reduce the amount of energy use	The Company has formulated basic requirements for equipment and store environment management for new and existing stores to improve energy efficiency by incorporating energy-saving designs : Heat insulation Energy saving signboards Lamp reduction Reduction of window area Frequency conversion system LED lamps installation Energy-saving windbreak room Existing stores are actively evaluating the feasibility of implementing various energy-saving measures and gradually replacing equipment with high-efficiency alternatives.
Evaluation of progress in reducing energy consumption	In 2024, President Chain Store Corporation's retail stores successfully saved 124,252,177 kWh of electricity through energy-saving projects, which is equivalent to reducing indirect emissions of 61,381 metric tons of CO2e.
Use of clean or green energy	President Chain Store Corporation has introduced solar power generation systems in Yawan Store and officially started generating electricity in 2023, continuously expanding the use of renewable energy in 2024.
Investments in innovation or R&D to decrease energy consumption	President Chain Store Corporation has invested in energy-saving and carbon-reduction measures in our stores by 2024, with a total investment of NT$348,834,199.
Energy efficiency training provided to employees to raise awareness of energy consumption reduction	"In-store energy-saving and carbon reduction measures" are communicated to store employees and franchisees, reaching a cumulative total of 245 person-hours by 2024.

 

- Net Zero Commitment and Emissions Reduction Policy

As a member of the global village, President Chain Store Corporation lays great emphasis on the use of energy and resources, as well as the environmental impact. To fulfill our corporate responsibilities, we will control and manage the current status of greenhouse gas emissions and promote energy-saving and carbon-reduction plans based on the result of the inventory. President Chain Store Corporation has committed to achieving net-zero for Scope 1 and 2 greenhouse gases within its operations by 2050.

Packaging Material Management

To respond to the trend in plastic reduction and stakeholders' concerns about packaging materials, President Chain Store Corporation continues to stay updated with the Global Plastics Treaty. Although there was no progress after the fourth round of negotiations in 2024, President Chain Store Corporation has prepared in advance with the Plastic Reduction Task Force taking charge of management, as well as proactively taking actions to ensure that the use of plastic is gradually reduced in cooperation with consumers and suppliers in accordance with the Ministry of Environment's plastic reduction regulations. A comprehensive management policy for the packaging and packaging materials of its private-label products, with the goal of reducing the use of virgin plastic by 30% compared to 2019 by 2030, and converting 50% of its private-label product packaging and materials to environmentally friendly materials. President Chain Store Corporation has also taken more active plastic reduction management actions, combining its private-label products and services, logistics, e-commerce and other operations strategies, in order to achieve the vision of completely eliminating other single-use plastic in its operations by 2050.

 

- Private-Lable Products Packaging Materials Policies and Commitments

• The procurement of eco-friendly, certified packaging materials and lightweight packaging should be prioritized in consideration of environmental and ecology protection, while achieving sustainable operations. A target for packaging reduction for private-label products has also been set.
• To reduce the amount of plastic at the source with the target of reducing the proportion of single-use plastic to under 10% by 2028:
  • The stores no longer offer customers straws or provide net carriers for free. Net carriers reduced plastic consumption by 19.33 metric tons in 2024, resulting in a 14.55% reduction compared to the previous year.
  • Ice makers were introduced to reduce the amount of plastic packaging used for ice cubes. A total of 3,952 ice makers were adopted to reduce 106.3 million plastic bags were reduced in 2024, the equivalent of 212.5 metric tons of plastic reduction.
• President Chain Store Corporation worked with President Packaging Ind. Corp an affiliated company, to establish and develop circular cup renting services to transit from manufacturing single-use containers to developing reusable containers:
  • Introduced the "OPEN iECO Recycled Cups Renting Service" in compliance with regulations. 2,531 stores adopted the service in 2024, exceeding our target of 2,300 stores. 20.91% of consumers brought their own cups, exceeding the annual target of 19.00%
  • We also encourage the consumers to use reusable packaging materials (or containers). A reward is also given for consumers who use their own reusable cups for freshly-prepared beverages. President Chain Store Corporation responded to the regulation in advance, bringing own reusable cup according to the regulations of the Environmental Protection Administration will entitle the customers to a discount of NT$5. Moreover, on the first of each month, bringing own reusable cup for "CITY" brand freshly-prepared beverages will entitle them to an NT$7 discount.
• FSC-certified packaging materials were adopted by paper cups used in the stores in 2024, and cup holders were made with 100% of recycled paper.
• President Chain Store Corporation has set up Plastic Reduction Task Force as an internal cross-functional team to consolidate the Company's efforts in plastic reduction. By combining the power of internal employees and external suppliers, Plastic Reduction Task Force promotes packaging plastic reduction strategies, targets, and action plans, while holding regular meetings to ensure the progress of each actions. The task force took about NT$2.5 million each year in manpower and testing resources, such as task force operations, R&D, testing costs in manpower and raw materials. The Plastic Reduction Task Force also stays on top of information on external competitiveness and the industry with the assistance of consulting company.

 

- Plastic Reduction Target

Target Year	Target
2025	Proportion of other single-use plastic being less than 18%.
2028	Proportion of other single-use plastic being less than 10%. Eliminate disposable shopping bags and plastic straws (Note).
2030	The packaging and packaging materials of the private-label products, with the goal of reducing the use of virgin plastic by 30% compared to 2019 by 2030, and converting 50% of the private-label products packaging and materials to environmentally friendly materials
2050	Completely eliminate other single-use plastics (0%).

Note: In line with the Ministry of Environment's policy, President Chain Store Corporation no longer offers plastic bags, straws and net bags for takeaway. The targets above are imposed for occasions when consumers ask for straws, purchase plastic bags and net bags. In the future, plastic bags and straws for takeaway will no longer be provided or will be replaced by non-plastic ones.

 

- Plastic Reduction Management Actions

President Chain Store Corporation has engaged in three aspects to reduce plastic, including "reduction at the source," "innovative packaging" and "encouraging customers to bring their own containers" since 2019. The Plastic Reduction Task Force was set up in 2020 to integrate strategies related to plastic reduction. We have started with the reduction of single-use plastics in private-label products and services, redesigned product packaging to reduce plastic consumption, introduced certified paper materials and recycled plastics, as well as reducing single-use containers by offering. In addition, President Chain Store Corporation integrated Group resources to set up the "OPEN iECO Recycled Cups Renting Service" in 2022. By the end of 2024, a total of 2,531 stores have been incorporated with the hope of providing convenient services while working towards environmental protection.

 

Reduction of single-use plastics - Promotion of reusable shopping bags, and reduction of single-use cutlery and plastic packaging for fresh food

Increasing the use of reusable packaging- Provide "OPEN iECO Recycled Cups Renting Service" and Bring-Your-Own-Cups discount.

Increase recyclable packaging

Upgraded recycling mechanism

Allocation of R&D resources to sustainable packaging solutions

Adoption of plastics with recycled content

 

- 2021-2024 Statistics of Plastic Packaging Materials

 

- 2021-2024 Statistics of Non-Plastic Packaging Materials

• The scope of statistics extends to President Chain Store Corporation's private-label product packaging, packaging of retail store products and services and for delivery purposes. The statistics of plastic packaging materials cover 100% of private-label products; the statistics of non-plastic packaging materials cover 100% of private-label products.
• FSC-certified items include refrigerated beverages, disposable chopsticks provided in-store, and coffee stirrers.PEFC-certified items include paper bowls, and recycled paper items include coffee cup holders.

Waste, Food Loss and Waste Management

- Policies and Commitments

Due to the service of convenience stores, waste generated mainly includes general waste and food waste. Waste management has gradually become an unavoidable and significant issue for President Chain Store Corporation. To effectively manage waste generated from operations,we have established "President Chain Store Corporation Waste Management Policy", developing medium to long term targets, strategies,and management actions:

Waste Management Programs	Management Actions in 2024
Waste audits to identify opportunities for improving waste performance	The Company conducts waste statistics audits each year to understand the main sources of waste generation that are closely related to store operations, including food waste and general domestic waste generated by store services. In addition to the waste from our operations, we also attach great importance to the waste management of fresh food manufacturers in the upstream of the value chain. We regularly count the food waste generated by the manufacturers and track the food waste disposal to identify opportunities for improving waste performance. Based on waste statistics, we have taken the specificities of the food retail industry into consideration to focus on the management of food waste and packaging materials for waste reduction.
Action plans to reduce waste generation	Convenient Recycling Platform: Recycling PET, electronic waste, including batteries, laptops, optical discs, mobile phones and chargers. Store Equipment Reuse: The recycling system works on existing equipment from renovated and shut down stores, such as air conditioners, refrigerators, oden cooking machines, microwave ovens and so on. It is returned and put to use after inspecting, cleaning and repairing. iLove Food Program: A 35% discount is given 8 hours prior to expiration on over 100 products to reduce food loss and waste. For more actions regarding waste reduction, please refer to 2024 President Chain Store Corporation Sustainability Report - 4.4 Food Waste and Waste Management
Quantified targets to minimize waste	Food loss and waste: Commit to halving food waste discarded by 2030 as the target (with 2019 as the base year for the amount of food waste from the stores and manufacturers) Waste: Reduce the volume of waste removal from a single store by 45% in 2028, reducing by 20% in 2025; reducing by 20% in 2024(with 2019 as base year).
Investment in innovation or R&D to minimize waste	The Company promotes packaging plastic reduction strategies, targets, and action plans, We allocate about NT$2.5 million each year in manpower and testing resources. We continue to introduce circular economy initiatives to achieve waste reduction, including iLove Food Program implementation, developing "OPEN iECO Recycled Cup Return Machine" for recyclable packaging, installation of "Intelligent automatic recycling machines", and establishment of customer incentives for recycling. Please refer to the "President Chain Store Corporation Climate related Disclosures Report" for future related investment and R&D to minimize waste.
Waste reduction training provided to employees	All employees and store franchisees took part in the "Plastic Reduction Digital Course" for a total of 16.32 person hours in 2024. "Recycling and Coffee Ground Reuse" was communicated to store employees and store franchisees for a total of 5,463.83 person hours in 2024. The course "Plastic Restriction Policy on Straws and Encouraging the Use of Reusable Cups." was provided to all store employees for a total of 1,294 person hours in 2024.
Integration of recycling programs to reduce the waste sent to landfill	President Chain Store Corporation provides OPEN iECO recycled cups so that cups and lids for freshly-prepared drinks can be recycled and reused to reduce the consumption of single-use paper cups. We recycle coffee ground and expiring fresh food from the stores through the Sustainable Farm project, reducing the amount of food waste in the landfill.
Waste diversion from landfill is certified by an independent accredited body	The total volume of waste generated by President Chain Store Corporation in 2024 was 64,467.80 metric tonnes, of which 4,209.73 metric tonnes went to landfills (Note 1). The remaining volume was diverted to animal feed/compost, incineration (including energy recovery) and recycling. President Chain Store Corporation diverts over 95% of its buried waste. (Note 2)

Note(1)：The total weight of waste and waste for landfill has been disclosed in 2024 Sustainability Report. The 2024 Sustainability Report passed SGS verification and obtained AA1000 Type Two High Level assurance.
Note(2)： Calculation of the diversion rate of buried waste: total weight of diverted waste/(weight of diverted waste + weight of buried waste) x 100%. The diversion rate of landfill waste at President Chain Store Corporation is greater than 95%.

 

- Food Loss and Waste Management

President Chain Store Corporation announced the target of halving food waste by 2030 in 2020 (compare with annual volume and reduction ratio of food waste from the stores and factories in base year 2019), President Chain Store Corporation took a detailed inventory to find out where food waste went and started implementing four metrics in 2021, including reducing the amount of scrapped fresh food year by year, reducing production loss at the manufacturers, reducing loss during logistics operations, and increasing the recovery of food waste in the stores. We will continuously initiate programs to reduce food loss and waste at the source in the three stages of production, order and delivery, as well as retail.

 

 

- Upgraded iLove Food Program and Reducing Food Loss and Waste with Technology

As the leader in the retail industry, President Chain Store Corporation is committed to reducing food waste. President Chain Store Corporation launched the iLove Food Map in the app in 2022 for consumers' easy access to the iLove Food availability in each store, allowing them to take advantage of the convenient program. In 2024, iLove Food prevented the generation of 17,866.94 metric tons of food waste with an increase of 4,143.63 metric tons from 2023. In addition to working together with consumers to reduce food waste, we extended the shelf life of food in 2023 by taking advantage of new technologies, such as the high-temperature sterilization equipment and special sealing film to reduce food waste from overstock.

 

- Coffee Grounds Recycling Program Promotes Circularity

In 2024, President Chain Store Corporation launched the "Coffee Grounds Recycling Program" to convert coffee grounds from store operations into performance fabrics and shoe materials. The program systematically collects coffee grounds from stores and uses innovative processes to create recycled products, promoting green fashion and environmental awareness among young consumers. In 2024, the program promoted the recycling of coffee grounds with 10,000 people participating and 1.064 metric tons recycled. The program also expanded the scope of applications to improve resource use efficiency and reduce the impact of waste on the environment.

 

- Sustainable Farm: A New Eco-friendly Food Option

In continuous search of a sustainable circular economy solution, President Chain Store Corporation launched the "Sustainable Farm" circular program in 2023. With "being friendly to the earth with a cup of coffee " as its starting point, President Chain Store Corporation systematically recycles expired, opened or defective scrapped products and coffee grounds through stores, and collaborates with an agricultural biotechnology team to use black soldier fly automated breeding equipment to convert food into safe and non-toxic organic fertilizers for contracted farm. In 2024, the Sustainable Farm program was expanded to turn coffee grounds and scrapped food products from specific stores into organic fertilizers through agricultural biotechnology for growing fruits and vegetables. The scope of cooperation has been expanded to four agricultural product manufacturers to increase crop yields. In 2024, a total of 3.5 metric tons of coffee grounds were recycled and converted into fertilizers to produce crops such as cabbage, bananas and corn on contract farms, before being sold in the stores, allowing more consumers to participate in and support a sustainable diet, as well as further realizing the targets of resource recycling and environmental protection.

 

- Waste Management

The waste produced by President Chain Store Corporation is mainly domestic waste, which belongs to the general waste and general industrial waste as categorized by the Ministry of Environment with no hazardous industrial waste. The generation of bulk waste is closely related to store operations, including operational waste from upstream fresh food manufacturers, general waste (food waste, general household waste, etc.) generated by store services, and recyclables materials from the stores' reverse logistics mechanism, etc. To this end, President Chain Store Corporation has set clear targets for waste reduction while tracking the performance on an annual basis. To reflect the feasibility of the reduction plan, we reviewed the waste reduction target and adjusted the original reduction target in 2024: by 2028, the waste collection volume of each store will be reduced by 45%; the 2024 target is to reduce the waste collection volume of each store by 20% (with 2019 as the base year). President Chain Store Corporation follows the 3R principles in the overall waste management strategy to reduce, recycle, reuse, as well as minimizing non-recyclable waste. In terms of our own operations, we are concerned about the impact of plastic on the environment that is difficult to decompose and fulfill our corporate social responsibilities. To this end, President Chain Store Corporation engages in three aspects to reduce plastic, including "reduction at the source," "innovative packaging" and "encouraging customers to bring their own containers," as well as expanding the recycling mechanism in the stores to gradually decrease the dependence on single-use plastic and ensure proper treatment of waste from our operations. We are also actively concerned with waste from the downstream waste of the value chain by combining "convenience" and "recycling" through our many bases. To this end, we recycle PET bottles with Intelligent Automatic Recycling Machines, help people recycle information waste, and turn waste into resources to fulfill our social responsibilities.

 

 

- Convenient Recycling Platform

Additionally, President Chain Store launched the Intelligent Automatic Recycling Machine to recycle PET bottles and batteries since 2022. In 2024, the company continued to expand its recycling initiatives, reaching a total of 246 machines installed and collecting a cumulative 23.17 million PET bottles and 5.2 million batteries. The recycled PET materials are then entrusted to specialized manufacturers for processing into recycled materials, which can be used to create store uniforms or merchandise sold back in stores. Simultaneously, the Company is collaborating with major PET bottle manufacturers to establish a "bottle-to-bottle" closed-loop recycling system in central and southern Taiwan and outlying islands. This system utilizes advanced technology to transform collected PET bottles into new ones, fostering a sustainable, closed-loop supply chain.

 

- Store Equipment Reuse

In order to provide the convenient products and services, President Chain Store Corporation relies on a large number and variety of machines. As the wear and tear as well as out-of-service machines cause a great burden on the environment, we have made good use of our flexible dispatch system and a great number of stores to set up the Equipment Refurbishment Center. The recycling system works on existing equipment from renovated and shut down stores, such as air conditioners, refrigerators, oden cooking machines, microwave ovens and so on. It is returned and put to use after inspecting, cleaning and repairing to reduce waste of resources and waste generation, while also saving on equipment procurement costs. In 2024, 34 types of equipment were refurbished and put to use, with the total number of 2,803 machines and saving a total amount of equipment procurement costs of NT$93,712,458.

Water Resource Management

- Water Efficiency Management Programs

Water supply and quality have a direct or indirect impact on the business model of chain stores regarding the products and services we can provide to the consumers. Especially in areas with tight water resources, how to reduce the operational impact on the local water resources is critical in overall operating value chain.

 

Water Efficiency Management Programs	Management Actions in 2024
Water use assessment to identify opportunities for water efficiency improvements	President Chain Store Corporation conducts an inventory of water consumption in its operating locations each year to filter water hotspots. In 2024, the total water withdrawal of President Chain Store Corporation was 4,092,852.30 cubic meters, and the total water consumption was 143,591.52 cubic meters. The scope includes stores, head office, shopping centers and district offices. The water use assessment shows that water is mainly used for freshly prepared drinks and cleaning in stores. Water saving and RO equipment have been introduced so far to save water, and resources have been invested to improve water efficiency.
Actions to reduce water consumption	The Company has taken the following actions to reduce water consumption: Adopt water saving equipment in operating locations, such as water saving faucets and toilets. Introduce RO water recycling and rainwater collection equipment. Establish a mechanism for repairing abnormal water leaks and reporting them in a timely manner at operating locations to reduce water waste caused by water leaks. A total of 3,852 water leak repairs will be completed by 2024.
Actions to improve wastewater quality	Due to the specificities of the industry, the discharge of President Chain Store Corporation is domestic wastewater. Therefore, wastewater discharge management is based on the principle of complying with national water pollution management regulations. Wastewater quality improvement actions include: Ensuring that stores are located in areas where the sewage treatment facilities of the building function normally to prevent direct discharge of domestic wastewater. If the stores have septic tanks, the tanks will be cleaned regularly to ensure pollution removal efficiency and further reduce the pollution of domestic wastewater to the environment.
Establishment of targets to reduce water use	President Chain Store commits to reduce the actual water use intensity by 1% in 2021 and 5% in 2025 compared to the base year of 2019. President Chain Store Corporation manages water usage by focusing on water withdrawal as the management objective. Therefore, the target for water consumption was set to match the previous year's consumption, with a goal of 0.13 million tons for the current year.
Application of water recycling	For the moment, water-saving taps and toilets have been introduced in all stores. Some stores are also running a pilot program to use RO (reverse osmosis) residual water and collected rainwater for cleaning the stores.
Awareness training provided to employees on water efficiency management programs	President Chain Store Corporation regularly conducts water conservation education with employees and stores, and provide 8,925 person-hours of education and training by 2024.

 

- Exposure of Suppliers to Water Risks

President Chain Store Corporation continuously monitors and assesses the water stress conditions of suppliers providing critical materials to prevent and mitigate supply chain disruptions. We conduct regular water stress risk assessments on key agricultural commodities such as cattle products, maize, palm oil, rice, soy, sugar,and swine using the World Resources Institute's (WRI) Aqueduct Water Risk Atlas. A comprehensive assessment of the aggregate water stress at supplier production facilities and their respective locations is conducted annually to determine whether agricultural commodities production sites are located within high-risk water stress areas Analysis for 2024 shows that only one cattle farm is located in a high-risk water stress area, accounting for 5.56% of cattle products procurement. The procurement amount for agricultural commodities at water risk constitutes approximately 2.34% of the total procurement amount.The production locations of other raw materials are not situated in water stress areas.

 

 

- Water Risks Management of Suppliers

President Chain Store Corporation addresses supplier water risk management through these three measures:

Risk	Measure
Risks related to the quantity and quality of water	Preventing Water Shortage Risks: Guidelines have been established for fresh food suppliers to help them respond to government water rationing policies. These guidelines also focus on enhancing suppliers' water resource management capabilities, promoting water conservation, and preventing supply disruptions during periods of water scarcity. Avoiding Water Quality Risks: Suppliers are required to test water quality used during food production in accordance with food safety-related regulatory standards. For significant suppliers in Tier-1 of non-fresh food products, regular evaluations and consultations are conducted to ensure compliance with environmental and food safety regulations related to water. Suppliers using municipal water are required to ensure water quality. For those relying solely on groundwater, water quality standards and water management procedures have also been established to ensure the safe use of water during production.
Risks related to regulatory changes or changes in pricing structures	Regulatory Compliance: To minimize risks stemming from regulatory changes or pricing structure adjustments, the legal department regularly monitors changes in water-related regulations. If any change arises that may impact the company or its suppliers, the legal department will notify relevant departments such as operations, quality assurance, and procurement. The procurement department will work closely with key tier-one suppliers to ensure the adoption of appropriate response strategies. In 2024, audits were conducted for 50 private-label food suppliers as part of the supplier evaluation process, ensuring their compliance with President Chain Store Corporation's water resource management standards. According to the evaluation results, all suppliers met the company's water resource-related standards and requirements and posed no water-related risks associated with policy changes or water pricing.
Risks related to stakeholder conflicts	Regular Implementation of "Supplier Assessmen": The Code of Conduct requires suppliers to meet environmental, social, and governance performance standards, comply with local laws, control water pollution impacts, and carry out classification, monitoring, control, and treatment of wastewater before discharge. Suppliers are also expected to improve water use efficiency. President Chain Store Corporation regularly evaluates suppliers to ensure legal water use and proper wastewater management, thereby reducing potential conflicts with stakeholders. Regular Supplier Training:In 2024, water resource management and supplier code of conduct training was conducted, requiring participation from 172 raw material suppliers and 29 contract manufacturers. Inspectors were also dispatched to ensure full compliance with water pollution control laws and food safety water quality standards. To prevent water use or pollution related conflicts between suppliers and local communities, President Chain Store Corporation provides training on occupational safety and health, environmental, and business ethics topics to exclusive contract suppliers through internal platforms and regular meetings. Providing Communication Channels for Stakeholders: "Stakeholder Communicaiton" has been established with an online feedback form to maintain ongoing communication with all stakeholders. Supplier complaint records are regularly managed, and feedback and suggestions from suppliers and neighboring communities are collected. If conflicts arise between suppliers in water stressed regions and stakeholders, appropriate actions will be taken to resolve issues that may affect company operations, and to maintain good relationships with stakeholders.