Biodiversity

In 2022, PCSC 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. For relevant policies, please refer to “Policies and Documents on Sustainability Management.”

“Biodiversity Policy” and “No Deforestation” Commitment

 

Classification system of operating locations

Execution Policies and Mitigation Hierarchy

Risk Assessment Procedure and Implement Progress

In 2022, PCSC screened its own operating locations by adopting IBAT for map data overlay, taking inventory of land use zoning of operating locations (all of retail stores), taking the risk of biodiversity impact into consideration, and identifying 11 stores located in protected areas designated by the government, covering a total area of about 0.2 hectares (the store locations are all leased and set up in commercial facilities that have been developed and approved by the government) in national parks, national natural parks or important wildlife habitats.
In 2022, PCSC evaluated and negotiated cooperation with a third-party ecological engineering consulting company. In the future, different methodologies and structures will be taken into consideration for the degree of impact on biodiversity. Stores in areas with biodiversity risks will be relocated or closed. If corrective measures cannot be taken, a third-party ecological engineering consulting company will provide compensation strategies to the store to compensate for the ecological damage caused to biodiversity. Biodiversity risks are included in the store assessment form for new stores, and areas with biodiversity risks are actively avoided.

Biodiversity Mitigating Action

• Avoid: PCSC has added an ecological self-assessment in the process of opening a new store. If the risk of impact on biological resources in the location is too high, PCSC will take the initiative to avoid opening a store.
• Reduce: PCSC evaluates site conditions of existing stores and plans to move existing stores to sites with lower impact on ecological resources or close stores to reduce impact on ecology to zero. If the leased location for a new store experiences ecological damage caused by an entity other than PCSC (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 ecology.
• Regenerate: PCSC invested in the “Sustainable Farm” program to recycle coffee ground from the stores, turn it into organic fertilizer for crops while promoting soil regeneration. PCSC works with a professional agricultural biotechnology team to turn coffee grounds into safe and non-toxic organic fertilizer. Rich in organic matters, coffee ground fertilizer is a good resource for land improvement that can simultaneously protect the soil and promote the regeneration of a healthy soil ecology to achieve the goal of being land-friendly and environmental sustainability. Please refer to https://www.7-11.com.tw/company/csr/news_detail.aspx?id=909.
• Restore: PCSC evaluates the site conditions of existing stores. If an existing store is located in an area with biodiversity risks that cannot be corrected, it will be renovated with a third-party ecological engineering consulting company providing ecological resource compensation strategies for the store to reduce and compensate for the ecological damage.

“Biodiversity Policy” and “No Deforestation” Supplier Agreement

PCSC commits to manage private-label product suppliers under“Biodiversity Policy” and “No Deforestation” Commitment.

In 2022, PCSC added a new clause of “No Deforestation & Biodiversity” to the“PCSC and PCSC 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.