UNI-PCSC Sustainability Development

Material Issues for Enterprise Value Creation

President Chain Store Corporation identifies its top three material sustainability topics that most significantly impact long-term value creation and ties performance in these areas to senior executive compensation. This ensures adequate internal resource allocation and integration into strategic decision-making. When sustainability topics are linked to business operations, they may affect operating costs and revenue, or pose potential risks.

 

Material Issue Climate Change Food Waste and Waste Management Packaging Material Management
Description Climate change is expected to increase the frequency and severity of extreme weather events and average global temperature, which in turn could affect business continuity, sales trends, and operational costs. The primary type of waste generated by convenience store operations is food waste. Proper management to enhance resource efficiency can help reduce the overall environmental impact. Plastic waste has threatened the land and marine ecologies due to improper use and management, and the disposal process has seriously harmed human health.
Business Case President Chain Store Corporation assesses its climate-related risks and opportunities in line with the TCFD framework, identifying “the increasing severity of extreme weather events and rising average temperatures” as key climate risks.

Extreme weather events, such as torrential rainfall or typhoons, may result in damage to store equipment and merchandise or disrupt store operations, leading to revenue loss and increased repair and restoration costs. In 2025, typhoons affected normal operations at certain stores due to typhoon warnings, resulting in a certain degree of financial impact.

In addition, rising average temperature has an impact on seasonal product sales patterns, with higher sales of summer products and reduced demand for autumn/winter products. The increased demand for air conditioning and refrigeration also leads to higher energy consumption, thereby raising operating costs (e.g., electricity bills).
Food waste and waste management is closely tied to operational cost control. For instance, reducing raw material waste during the production of fresh foods and improving production efficiency can significantly lower raw material costs. Additionally, more accurate forecasting of consumer demand at the store level can prevent excess production, thereby reducing both overproduction costs and the cost of disposing of food waste. Packaging issues also represent operational risks and opportunities. For example, failure to comply with local regulations on e-commerce packaging restrictions may result in penalties. On the other hand, redesigning product packaging to reduce plastic usage can help lower costs. Failing to adopt certified paper materials or recycled plastics in a timely manner may harm brand reputation and influence consumer purchasing decisions.
Business strategies 1.Disaster Prevention Measures:
Formulated “Construction Specifications for Flood Control Gates and Dwarf Walls in the Stores Located in Low-lying Areas” to mitigate flooding risks.

2.Early Warning System:
Implemented the “Weather Information Distribution” system to deliver real-time weather and flood alerts to stores to increase response time.

3.Emergency Response and Insurance:
Formulated emergency response procedures, including logistics dispatch protocols, as well as insuring stores with property coverage for natural disasters.

4.Energy-Saving Measures:
In response to rising temperatures, energy-saving measures were introduced across stores and the head office to optimize energy efficiency.
1. Food Waste Monitoring in Factories:
Twelve dedicated contract manufacturers report monthly on the volume of food waste and related revenue losses to help track production waste.

2.Production Process Optimization:
Shifted from forecast-based to made-to-order production to improve accuracy; consolidated product lines to reduce raw material waste; performed a second round of raw material estimation before production to avoid overstocking.

3.Food Waste Reuse:
Off-grade products are repurposed into employee meals or made available for staff purchase to reduce waste.
1.Plastic Reduction in Product Packaging:
In 2024, we launched 100% recycled PE shopping bags. Annual sales reached 59.79 million units in 2025, reducing virgin plastic use by an average of 73.4 metric tons per month. To further enhance the effectiveness of fresh food packaging reduction, we implemented packaging adjustments across 10 salad products, replacing original thick plastic lids with recycled plastic sealing film, resulting in a cumulative reduction of approximately 38.41 metric tons of plastic use.

2.In-Store Plastic Reduction Measures:
Our stores no longer offer single-use utensils and have switched to lightweight packaging for fresh meals. Ice makers were introduced to reduce the use of plastic packaging bags for ice. In 2025, they had been introduced in a total of 4,604 stores, reducing plastic use by 305.7 metric tons.
Target/Metric Targets of climate change are as follows:
1.Store electricity use intensity (EUI) reduced by 0.5% compared with the previous year
2.Proportion of direct (Scope 1) and indirect (Scope 2) GHG emission intensity (carbon emission intensity per NT$ million of revenue) reduction compared with the previous year: Reduced by 1.5% compared with the previous year
Please refer to Sustainable Goal Management Process in Chapter 5 of the 2025 Sustainability Report for short-term goals (2026), as well as mid- and long-term goals.
Targets of food waste and waste management are as follows:
1.Total weight of all food loss and waste: 11,282 metric tons
2.Total weight of food loss & waste volumes used for alternative purposes: 6,218 metric tons
3.Total weight of food loss and waste discarded (with 2019 as base year): 5,064 metric tons with a 43.24% reduction compared to the base year
Please refer to Sustainable Goal Management Process in Chapter 5 of the 2025 Sustainability Report for short-term goals (2026), as well as mid- and long-term goals.
Targets of packaging materials management are as follows:
1.Proportion of other single-use plastic for private-label products and materials: 17%
2.Proportion of consumers bringing their own cups: 22%
3.Number of stores adopting the Recycled Cups Renting Service: 2,530
Please refer to Sustainable Goal Management Process in Chapter 5 of the 2025 Sustainability Report for short-term goals (2026), as well as mid- and long-term goals.
Target Year 2026 Fiscal Year 2026 Fiscal Year 2026 Fiscal Year
Progress(Note)

(Note) Please refer to Sustainable Goal Management Process in Chapter 5 of the 2025 Sustainability Report for updates on the progress made in 2025.

The progress made for climate change in 2025:

1.Percentage reduction in store electricity use intensity (EUI) compared with the previous year: Store electricity use intensity (EUI) reduced by 2.65% compared with the previous year
2.Proportion of direct (Scope 1) and indirect (Scope 2) GHG emission intensity (carbon emission intensity per NT$ million of revenue) reduction compared with the previous year: Reduced by 1.75% compared with the previous year
The progress made for food waste and waste management in 2025:

1.Total weight of all food loss and waste: 14,430 metric tons
2.Total weight of food loss & waste volumes used for alternative purposes: 10,026 metric tons
3.Total weight of food loss and waste discarded (with 2019 as base year): 4,404 metric tons with a 76% reduction compared to the base year
The progress made for packaging materials management in 2025:

1.Proportion of other single-use plastic for private-label products and materials: 16.25%
2.Proportion of consumers bringing their own cups: 21.75%
3.Number of stores adopting the Recycled Cups Renting Service: 2,528
Executive Compensation

The compensation of senior executives at President Chain Store Corporation (including the President, Executive Vice Presidents, Group Heads, and Deputy Group Heads) is influenced by performance evaluations. These evaluations include sustainability performance indicators, among which the issue of climate change accounts for 2.5% of the total performance score.

 

The performance items related to climate change included in the evaluation are as follows:

 

Proportion of direct (Scope 1) and indirect (Scope 2) GHG emission intensity (carbon emission intensity per NT$ million of revenue) reduction compared with the previous year

The compensation of senior executives at President Chain Store Corporation (including the President, Executive Vice Presidents, Group Heads, and Deputy Group Heads) is influenced by performance evaluations. These evaluations include sustainability performance indicators, among which the issue of food waste management accounts for 2.5% of the total performance score.

 

The performance items related to food waste management included in the evaluation are as follows:

 

Total weight of food loss and waste discarded (with 2019 as base year)

The compensation of senior executives at President Chain Store Corporation (including the President, Executive Vice Presidents, Group Heads, and Deputy Group Heads) is influenced by performance evaluations. These evaluations include sustainability performance indicators, among which the issue of packaging material management accounts for 2.5% of the total performance score.

 

The performance items related to packaging materials included in the evaluation are as follows:

 

Proportion of other single-use plastic for private-label products and materials