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 its supply chain will follow the principles of biodiversity protection and no deforestation.
Please refer to the “Sustainability Management Related Policies and Documents” page for the Environmental Policy.。
“Biodiversity Policy” and “No Deforestation” Commitment
| Items |
Biodiversity |
No Deforestation |
| Scope |
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 year |
| Commitment to engage in biodiversity discussions with stakeholders. |
Biodiversity Risk Assessment Procedure
Classification system of operating locations
Execution Policies and Mitigation Hierarchy
Risk Assessment Procedure and Implement Progress
To effectively carry out actions towards biodiversity protection and mitigation, President Chain Store Corporation has set up our biodiversity risk assessment process. In 2023, we conducted a biodiversity risk analysis using the International Biodiversity Assessment Tool (IBAT). The results showed 10 stores located in nature reserves designated by the government, national parks, national natural parks or important wildlife habitats.
“Biodiversity Policy” and “No Deforestation” Supplier Agreement
President Chain Store Corporation commits to manage private-label product suppliers under“Biodiversity Policy” and “No Deforestation” Commitment.
In 2022, President Chain Store Corporation added a new clause of “No Deforestation & Biodiversity” to the“President Chain Store Corporation and President Chain Store Corporation Subsidiaries’Code of Conduct for Suppliers” to enhance raw material suppliers’ attention to no deforestation commitments. The details cover not reclaiming forests by burning or felling, not purchasing products from manufacturers that violate relevant international laws or destroy conservation areas and peatlands, supporting biodiversity and protecting the rights and interests of farmers and laborers, etc.
New suppliers must sign the new version of the agreement, and the agreement will be replaced for all existing partners by the end of 2023. In the future, we will gradually enhance management measures for suppliers, as well as working with them to achieve the vision of biodiversity conservation and no deforestation.
Biodiversity Mitigating Action
- Avoid: President Chain Store Corporation has added an ecological self-assessment in the process of opening a new store, avoiding opening new stores in locations where the risks for biological resources are too high. This measure helps us identify and avoid potential risks for biodiversity in advance.
- Reduce: President Chain Store Corporation evaluates site conditions of existing stores and plans to move existing stores to sites with lower impact on ecological resources or close stores to minimize the impact on ecology when necessary. If the leased location for a new store experiences ecological damage caused by an entity other than President Chain Store Corporation (for example, the land or building belongs to the landlord), the Company will intervene by inviting a third-party ecological engineering consulting company to assist in proposing improvement strategies during the construction stage to reduce damage to biodiversity.
- Regenerate: President Chain Store Corporation invests in the “Sustainable Farm” program to recycle food waste from the stores, turn it into organic fertilizer for crops while promoting soil regeneration (for detailed management measures, please refer to the Sustainability Colum– Sustaianble Farm).
- Restore: President Chain Store Corporation procures sustainable raw materials, such as FSC-certified paper packaging materials, coffee with rainforest certification, etc. This type of procurement not only ensures our raw materials have limited impact on the environment but also supports the recovery of the ecosystem for the raw material (for detailed management measures, please see 3.4 Sustainable Procurement).
- Transition: President Chain Store Corporation continues to promote various transition programs to reduce the impact of its operations on the eco-system. In 2023, we collaborated with the industry, government and academia on a low-carbon rice project. Low-carbon rice planting can reduce water use for irrigation by 30% compared with conventional farming practices, as well as improving soil microbial diversity in rice fields (for detailed management measures, please refer to the Sustainability Column - Low-Carbon Diet.)