Sustainable procurement is an international trend and a concrete practice for companies to demonstrate positive external influence. President Chain Store Corporation has observed global resource depletion and forced labor issues in some developing countries. As a result, it has set sustainable procurement and improving resource sustainability as key projects for the Company’s ESG development. The Sustainable Procurement Task Force was established in 2021 to develop a sustainable procurement policy for the Company's private-label products and raw materials, including coffee and retail supplies, and to routinely report to the board. Elements such as human treatment, recycling and environmental protection are included in the supplier selection system, prioritizing procurement of raw materials and suppliers that have sustainable certification or meet the principles of sustainability and carbon reduction. Key issues include animal welfare, organic vegetables, traceable agricultural products and so on, providing consumers with the choice to support sustainability in their daily life.

In 2026, President Chain Store Corporation also established the Responsible Sourcing Policy for Priority Raw Materials to stay in line with the principle of prioritizing the procurement of agricultural products that value environmental protection, animal welfare and traceability. We also help raw material suppliers develop the philosophy of sustainable operations to ensure effective management of the source of private-label products. This policy identifies priority raw materials, currently including seafood, wood/paper, beef, and dairy products, with reference to international trends in the food retail industry and the level of market concern, and establishes sustainable procurement principles and requirements accordingly. Other raw materials are subject to the Company’s Supplier Code of Conduct, general procurement standards, and relevant quality and safety management requirements. The scope of this policy will be reviewed regularly based on regulatory requirements, management practices, and international trends.

 

 

Sustainable Agriculture Procurement Policy

President Chain Store Corporation’s private-label product manufacturers adopt PB raw materials to comply with the principles of environmental protection, animal welfare, while prioritizing procurement of traceable agricultural products. In the meantime, raw material suppliers are coached to develop corresponding sustainable business concepts to ensure effective management of the sources of private-label products.
＊Please refer to"UNI-PCSC's Supplier Code of Conduct"for Environmental Procurement Standards.

Environmental Standards for the Procurement of Agricultural Raw Materials

• President Chain Store Corporation is in the process of formulating specifications for agricultural product procurement, with the scope covering contract signing, onboarding qualifications, traceability registration, inspection and compliance with the Act Governing Food Safety and Sanitation and relevant regulations governing agriculture. The goal is to ensure the implementation of all standards and regulations, sustainable agriculture, and food safety.
• The key points for implementation include ：
  • Formulate standard operating procedures to ensure protection for the farmers, soil, and the environment
  • Continue to assist raw material suppliers in setting up the origin management center to obtain certificates of organic farming and traceability, and to implement standards and specifications
  • Promote protected culture, avoiding the risk of contaminating adjacent farms
  • Commit to biodiversity protection and no deforestation, implement pesticide toxicity and chemical fertilizer reduction, and encourage suppliers to comply with relevant norms.
  • Extend the use of local agricultural products to reduce the transport distance and the contamination risk of imported products
  • Boost sales of products which contain locally produced drought-tolerant crops, such as corn and sweet potatoes, to reduce water consumption for irrigation and protect water resources.

  

Focus on Topics Involving Animal Welfare and Organic Vegetables

• The Company prioritizes and gradually adopts traceable raw materials that comply with national animal welfare and humane breeding. For example, raw eggs that comply with the national guidelines for animal welfare are chosen for onigiri, sandwiches and boxed meals.
• The raw materials for private-label products meet the following principles of animal welfare: Freedom from the lack of nutrition (hunger and thirst), freedom from disease and injury, freedom from physical and psychological discomfort, freedom from fear and stress, and freedom to exhibit natural behavior.
• Suppliers receive regular inspections and counseling sessions on compliance with regulations regarding Ractopamine, antibiotics, growth hormone and so forth. The Company is committed to prioritizing procurement of animal raw materials without using growth hormones and preventive antibiotics during the farming process.
• The Company is committed to not using genetically modified or cloned animals.
• President Chain Store Corporation continues to provide organic vegetables in a selection of areas and stores, giving consumers a variety of choices.

Sustainable Agriculture Procurement Performance

In 2025, sustainable certification obtained by the private-label products of President Chain Store Corporation in purchasing raw materials and store goods:

Agricultural Crops	Certifications	Procurement volume of agricultural crops (metric tons)	Percentage of certified procurement in the respective category (%)
Palm oil	Unused	N.A.	N.A.
Soy	U.S. Soy Sustainability Assurance Protocol	10,214.39	19.78%
Sugar	Not obtained	1,839.28	0.00%
Cacao	Not obtained	97.09	0.00%
Coffee	Rainforest Alliance incl. UTZ	9,279.65	0.01%
Cereals (Wheat, Barley, Rice, Corn/Maize)	Taiwan Good Agricultural Practice (T-GAP)	22,887.90	21.98%
Cotton	Unused	N.A.	N.A.
Tobacco	Unused	N.A.	N.A.

Animal Products	Certifications	Procurement volume of animal products (metric tons)	Percentage of certified procurement in the respective category (%)
Aquaculture	ASC (Aquaculture Stewardship Council)	6,325.21	8.44%
Cattle	AAWCS (The Australian Livestock Processing Industry Animal Welfare Certification System), NAMI (North American Meat Institute)	1,522.71	99.23%
Dairy	ISO 14067 Greenhouse gases — Carbon footprint of products, Cared for Cows Standard, Foqus planet programme, Animal Welfare Policy	64,314.74	65.21%
Swine	IAWS (Interporc Animal Welfare Spain), NAMI (North American Meat Institute), Humane Animal Slaughter System	5,222.08	94.23%
Poultry	PAACO (Professional Animal Auditor Certification Organization), Humane Animal Husbandry Certification	26,866.77	29.56%
Wild Fisheries	MSC (Marine Stewardship Council)	955.42	25.36%

Percentage of Traceable Origin of Raw Materials

100% of the seafood, timber, paper packaging, beef, and dairy products procured by President Chain Store Corporation are traceable, as shown in the following table：

Category	Percentage of products with traceable origin of raw materials (%)
Seafood	100%
Timber	100%
Paper	100%
Beef	100%
Dairy	100%

Sustainable Products and Services

President Chain Store Corporation identifies and categorizes sustainable products and services from the perspectives of climate and the natural environment. Sustainable products are defined as those that, compared to similar products, have a lower impact on climate change or biodiversity, or contribute to reducing resource consumption and environmental impact.

• Certified Sustainable and Organic Products: This category encompasses product lines that have obtained both domestic and international organic and sustainability-related certifications. President Chain Store Corporation meticulously selects organic vegetables, beverages, chocolate, and various other organic products. To ensure these products meet stringent environmental and quality standards from cultivation and processing through to sales, the company provides consumers with multiple purchasing channels, including 7-Fresh stores, themed product assortments, and online pre-order platforms.
• Circular Services and Products with Recycled Material Packaging: This category prioritizes reuse, recycling, and enhanced resource efficiency, with a core objective of reducing single-use resource consumption. It features the OPEN iECO® Recycled Cup Service, which facilitates circular usage by enabling the rental, return, and cleaning of cups as an alternative to disposable ones. By 2025, over 2,500 stores had implemented this service, and its coverage continues to expand. Furthermore, the Company is progressively adopting recycled plastic (rPET) for fresh food packaging and store shopping bags, thereby replacing virgin plastic. It also actively promotes the recovery and reuse of packaging across stores and its supply chain through an internal recycling loop for these recycled plastics.
• Plant-Based Food Products: This category is dedicated to promoting plant-based food products and supporting a low-carbon, healthy lifestyle. Through its Veggie Selection® brand, the Company offers consumers a more diverse array of plant-based options. These products can effectively reduce GHG emissions and significantly lower impacts on climate change compared to meat-based meals. Additionally, the Company actively promotes bulk-box fruit and vegetable sales, which reduce product loss during handling and display by minimizing repackaging and processing.
• Sustainable Agriculture and Food-Saving Products: This category integrates innovative agricultural technologies with food-saving concepts to conserve energy and resources during cultivation while simultaneously maintaining farmland ecosystems. For example, low-carbon rice planting utilizes big data analysis, probiotics, and irrigation management with organic fertilizers to strengthen rice root systems and achieve approximately 30% reduction in water usage. The Company also champions the iLove Food Program, which effectively mitigates fresh food waste in stores through comprehensive fresh food shelf-life management and strategic discount measures. Furthermore, the Company has also launched the Sustainable Farm circular regeneration initiative, which involves recycling surplus fresh food and coffee grounds and converting them into organic fertilizers through black soldier fly cultivation technology for application in contract farmland, thereby continuously enhancing agricultural sustainability.

Targets for Sustainable Products and Services

President Chain Store Corporation has established clear management targets for its primary sustainable products and services, with progress meticulously tracked through an annual review mechanism. In 2025, the revenue share of the OPEN iECO® Recycled Cups Renting Service / bring-your-own-cup service reached 30.31%, successfully surpassing its annual target of 30.05%. Similarly, the iLove Food revenue share achieved 40.45%, also exceeding its annual target of 29.90%. The revenue share of low-carbon products, however, stood at 26.90%, indicating room for further improvement when compared with its annual target of 29.90%. Furthermore, products utilizing rPET food containers accounted for a revenue share of 1.34%, and continue to serve as an important initiative for the application of recycled materials. Overall, the Company has established specific management targets for its major sustainable products and services and monitors the effectiveness of each initiative through an annual review mechanism, gradually enhancing the contribution of sustainable products and services to overall operations. Looking ahead to 2030, the Company has set target shares as follows: the OPEN iECO® Recycled Cups Renting Service / bring-your-own-cup service aims for 29.47%; iLove Food targets 30.75%; low-carbon products are expected to reach 30.75%; and products using rPET food containers are projected to achieve 9.04%. The Company will continue to regularly review these targets and its overall product portfolio, adapting them in line with market developments, evolving product strategies, and implementation progress.

Investment in Sustainable Products and Services

To strengthen the sustainable products and services portfolio, President Chain Store Corporation strategically allocates investments across key areas, focusing on R&D resources, infrastructure improvement, and governance and budgeting.

The Company continuously supports its R&D and innovation teams in the critical areas of sustainable materials, circular design, lifecycle assessment, and product validation. This commitment strengthens the fundamental development of its sustainable products and services.

Furthermore, the Company systematically upgrades its store- and supply chain-related equipment and systems. This includes advanced cup washing and return systems, intelligent automatic recycling machines, comprehensive food waste processing and logistics systems, as well as energy-saving and robust data monitoring systems. Based on the 2025 investment allocation, Capital Expenditure (CAPEX) was primarily directed towards the OPEN iECO® Recycled Cups Renting Service / bring-your-own-cup service and low-carbon products, accounting for 53.04% and 42.66% respectively; Operating Expenditure (OPEX) was primarily directed towards the OPEN iECO® Recycled Cups Renting Service / bring-your-own-cup service, accounting for 85.49%, with products utilizing rPET food containers accounting for 12.30%. In terms of internal training and governance mechanisms, the Company has established various cross-functional task forces, including the Carbon Reduction Task Force, the Plastic Reduction Task Force, the Food Sustainability and Health Task Force, and the Sustainable Procurement and Biodiversity Task Force, and has allocated a dedicated budget for sustainability issues. In 2025, approximately NT$1.3 million was invested in internal training and cross-departmental project meetings.

Incentives for Sales Staff on Sustainable Products and Services

Encouraging sales personnel to promote bulk-box fruit and vegetable sales: Selling fruit and vegetables in bulk boxes reduces the packaging used for repacking and the resulting waste, while also lowering product loss during handling and display. To encourage bulk-box fruit and vegetable sales, the Company provides incentive bonuses to store personnel and district managers based on sales performance, and has established related incentive mechanisms to encourage store partners to actively promote such products. The Company will continue to review the sales performance of relevant products and services and the effectiveness of in-store promotion, and will gradually enhance the incentive schemes, management processes, and performance tracking methods related to sustainable products and services.

Revenue from Organic Products and Sustainable Products

Organic Products

President Chain Store Corporation diligently selects organic products certified by reputable domestic and international certification bodies. These include organic vegetables, beverages, and chocolate, which are sold across its various platforms and stores. By expanding its 7-Fresh stores, strategically implementing themed product placement, and enhancing its online pre-order platforms, the Company continues to enrich both the diversity of organic product offerings and the accessibility of sales channels. Looking ahead, the Company is committed to collaborating with certification bodies and suppliers to provide consumers with an even broader array of reliable organic choices. This strategic focus aims to gradually increase the proportion of organic products within its overall sustainable product portfolio.

 

Other Sustainable Products or Services

In 2025, President Chain Store Corporation actively continued to promote several key initiatives. These included the OPEN iECO® Recycled Cups Renting Service, iLove Food, low-carbon products, products utilizing rPET containers for fresh food, Veggie Selection®, bulk-box fruit and vegetable sales, and the Sustainable Farm program. These endeavors were advanced through comprehensive strategies such as product development, channel promotion, packaging optimization, efficient food waste management, and robust supply chain collaboration. Such practices effectively contribute to reducing the use of single-use items, minimizing food waste, increasing the adoption of recycled materials, and supporting local agriculture. Moving forward, the Company will continually refine the classification, accounting, and management mechanisms for its sustainable products and services, basing these refinements on product performance, implementation progress, and evolving market demand.

2022–2025 Revenue Statistics for Organic Products and Other Sustainable Products and Services

Unit: NT$