Packaging Material Management

The trend of plastic reduction in 2019 continues to be a hot topic in 2020. Although the global plastic reduction agenda has been delayed due to the pandemic, the stakeholders’ attention on plastic pollution has not been diverted. All sectors have examined packaging and plastic packaging material used in supermarkets, convenience stores and hypermarkets that are closely linked to everyday life. PCSC has declared 2020 as the “Year One of Plastic Reduction” to promote the plastic reduction strategies, goals, and action plans in packaging and packaging materials, as well as tracking the performance.

 

Packaging Material Impact

100% coverage of the business activity

Type of stakeholder	Supplier	Consumer	Society
Positive and negative impact	Positive Impact: PCSC works with suppliers to develop innovative packaging materials and create new business opportunities for suppliers. PCSC increased the proportion of FSC-certified packaging materials procurement to help with supplier transition.	Positive Impact: Smart Circular Packaging Material Recycling Network Project: Consumers can complete the three processes of sending, receiving and recycling circular packaging materials to save time and improve convenience. PCSC provides an NT$5 reward for consumers who bring their own cups.	Positive Impact: Yarn made with PET bottles recycled by PCSC stores is given to Story Wear, a zero-waste fashion social enterprise for design, recycling and upcycling into two sustainable products, “Hugging Hedgehog Bag” and “Small Star and Moon Bag on Strap.” They were then handmade by caretakers in families with cerebral palsy patients. Consumers can purchase the products in the stores or preorder website to create job opportunities for families with cerebral palsy patients, and the money raised would go into the employment program for cerebral palsy patients.
	Negative impact: Suppliers need to invest more cost in research and development to promote the environmental sustainability of packaging materials	Negative impact: Adjusting packaging materials to reduce the amount of plastic and encouraging consumers to use environmentally-friendly containers might lead to poor consumer experience (such as compromising consumer convenience, problems with using the product, thinner products might lead to poorer use time and stability (such as cups softening, spilling, etc.)
Output	In 2022, PCSC helped 2 suppliers develop new packaging materials	29 locations for circular packaging recycling were set up in 2022 (PCSC stores). Recyclable online shopping packaging materials were used for 305 times. As of end of 2022, the machines have been installed in 50 PCSC stores with nearly 40,000 people participating in recycling. Over 400,000 PET bottles and dry cells were recycled. A total of NT$228 million was invested in promoting circular cups and “bring your own cups” in 2022	PET and PE bottles recycled by the stores is given to Story Wear, a zero-waste fashion social enterprise for design, recycling and upcycling into a total of 32,000 products weighing 7 tonnes. Over 150 people in 20 families with cerebral palsy patients produced sustainable products (bags).
Impact	In 2022, PCSC worked with 2 suppliers to increase their economic scale by over NT$1.2 billion.	We are committed to improving the convenience of recycling as well as enhancing consumers’ awareness and actions towards plastic and waste reduction through promoting mechanisms such as bringing your own cup and recycling. The proportion of customers who brought their own cups increased from 6.29% in 2021 to 12.18% in 2022, reducing approximately 58.8 tonnes of single-use plastics.	A total of 20 families with cerebral palsy patients improved their quality of life in 2022 and increased their income by NT$2 million by participating in the production of “Story Wear” sustainable products.

- Packaging Material Program for Private-Label Products

• To protect the environment and ecology, as well as to ensure sustainable operations, PCSC priorities environmentally friendly materials, certified packaging materials and materials with packaging weight reduction design for raw material procurement. Packaging reduction targets are also set for private-label products.
• To reduce the amount of single-use plastic, as well as encouraging the consumers to use reusable packaging materials (or containers), the stores do not take the initiative to provide customers with straws. A reward is also given for consumers who use their own reusable cups for fresh-brewed beverages. PCSC responded to the regulation in advance, bringing own reusable cup according to the regulations of the Environmental Protection Administration will entitle the customers to save NT $5, moreover, on the first of each month, bringing own reusable cup for “CITY” brand fresh-brewed beverages will entitle them to an NT$7 discount.
• Introduced the “OPEN iECO Recycled Cups Renting Service” as part of the recycling mechanism.
• FSC-certified packaging materials were adopted by 100% of refrigerated beverages in 2022.
• FSC-certified paper sleeve packaging materials were tested in 2022. PCSC expects to introduce certified packages(paper cups and cup sleeves, etc.) to fresh-brewed beverages series in 2023.
• Packaging materials for cup sleeves and cup holders are made of recycled materials (65% for cup sleeves and 100% for cup holders).
• Ice makers were introduced to reduce the amount of plastic packaging used for ice cubes.
• PCSC 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.
• PCSC 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. 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 Targets

Target Year	Targets
2021	Continue to promote FSC certified packaging materials, with aim to increase the proportion of FSC certified packaging materials in relevant products to 60% in 2021.（The 2021 target was achieved）
2023	Single-use plastic accounts for less than 20%. Expected to convert 128.77 tonnes of paper into FSC-certified paper by 2024.
2028	Single-use plastic accounts for less than 10% Eliminate disposable shopping bags and plastic straws (Note)
2050	Completely eliminate single-use plastics (0%)

Note: In line with the Environmental Protection Administration’s policy, PCSC no longer offers plastic bags, straws and net carriers for takeaway. The targets above are imposed for occasions when consumers ask for straws, purchase plastic bags and net carriers. In the future, plastic bags and straws for takeaway will no longer be provided or will be replaced by non-plastic ones.

 

- Plastic Reduction Action Plan

PCSC engages in three aspects to reduce plastic, including “reduction at the source,” “innovative packaging” and “encouraging customers to bring their own containers.” We actively partner with suppliers to develop innovative packaging materials to reduce the consumption of single-use plastic from private-label products and services. We also encourage the reduction of disposable containers by providing discounts for alternatives. Moreover, companies in the Group worked together in 2022 to build the “OPEN iECO Recycled Cups Renting Service”, and introduced” Intelligent automatic recycling machines” to expand the recycling mechanism, hoping to create a win-win situation with the environment while providing convenient services.

 

 

- 2019-2022 Statistics of Plastic Packaging Materials

 

- 2019-2022 Statistics of Non-Plastic Packaging Materials

Note:

• The scope of statistics extends to PCSC’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.
• Packaging materials for ice cube (including plastic and paper/wood packaging materials) was added for 2022, with statistics traced back to 2019.
• Metal packaging materials for freshly brewed tea were added in 2022, with statistics traced back to 2019.
• FSC-certified packaging has been 100% introduced to iseLect refrigerated beverages in 2022.
• FSC certified packaging and packaging material items: refrigerated beverages, store supplied disposable chopsticks and coffee stirrer, OURS publications

Food Waste Management

The food waste generated by convenience stores is another important issue that PCSC cannot shy away from. After announcing the target of halving food waste by 2030 in 2020, PCSC started implementing four strategies 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. PCSC continues to reduce food waste and loss by planning food waste and production loss reduction programs at the production, shipment and retail stages. For detailed food waste reduction action plan, please refer to Sustainability Focus – Food Waste Management.

 

- Food Waste Management Impact

98.39% coverage of the business activity

Stakeholder Type	Suuplier	Environment	Consumer
Positive and negative impact	Positive Impact: PCSC changed estimated production to make to order to reduce suppliers’ input and processing costs by accurately controlling the production volume. Centralized production of each item reduces the waste of raw materials for suppliers. PCSC reduces food waste by converting nonstandard products into employee meals, or reselling finished and semi-finished products to employees of the manufacturing plants so that supplier employees can access the products at a lower price.	Positive Impact: PCSC reduces the resources consumed in processing food waste to reduce GHG emissions, thereby reducing the impact of the greenhouse effect on the environment.	Positive Impact: As a member of the retail industry, PCSC is closely intertwined with consumers’ diet. We offer consumers cheaper options for eating out through the iLove Food program, reducing their spending and allowing them to learn more about food waste management.
		Negative impact: If PCSC fails to manage food waste properly, it will lead to an increase in GHG emissions, which will in turn aggravate the impact of greenhouse effect on the environment.
Output	The weight of fresh food scraps decreased by 2,717 tonnes compared with the base period of 2019 in 2022		The sales volume of iLove Food reached NT$2,379 million in 2022
Impact	Raw material consumption from suppliers was reduced by working with PCSC. Compared with 2019, the waste and overestimated scrapping of fresh food contract manufacturers was reduced by approximately NT$12 million in 2022 in terms of total amount of loss (improving the economic benefits of suppliers).	PCSC effectively reduces the need for waste food disposal by building an ecosystem for food waste while improving the food culture and thereby reducing GHG emissions, social cost of carbon, and achieving a more sustainable future. Statistics shows that the social cost of carbon could be reduced by about NT$47,541 US dollars in 2022.	The goal of iLove Food program is raising consumer awareness and awareness of food waste management issues, as well as encouraging consumers to reduce food waste. The program motivates consumers to take action towards reducing food waste in their daily lives through advocacy, education and resource provision. In 2022, the number of people who purchased iLove Food increased by 12,753,051 times in 2021 with a growth rate of 72%.

Waste Management

The waste produced by PCSC is mainly domestic waste, which belongs to the general waste and general industrial waste categorized by the Environmental Protection Administration 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 generated from the stores’ reverse logistics mechanism, etc. PCSC follows the 3R principles in the overall waste management strategy to reduce, recycle, reuse, as well as minimizing non-recyclable waste. In addition to controlling the amount of waste generated and ensuring proper disposal, PCSC also effectively combines “convenience” and “recycling” through its many bases to help people recycle electronic waste.

 

- Convenient Recycling Platform

By taking advantage of its multiple bases, PCSC effectively combines “convenience” with “recycling” in helping people recycle electronic waste, including batteries, laptops, optical discs, mobile phones and chargers. To encourage people to recycle through convenience stores, PCSC provides NT$3 to NT$120 of store credit. The recyclable waste collected is shipped and distributed through the intensive and comprehensive logistics network, then classified and processed after being collected by the reverse logistics system. In addition, the headquarters building has also continued the recycling program.

 

- Store Equipment Reuse

PCSC has over 6,000 stores in Taiwan. In order to provide the most convenient products and services, it 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.

Water Resource Management

Water supply and quality have a direct or indirect impact on the business model of convenience store chains regarding the products and services we provide to consumers. Especially in areas where water resources are scarce, PCSC attaches great importance to mitigating the impact of the operations on the local water resources in its overall operating value chain. All operating locations of PCSC use tap water. Besides freshly-prepared beverages, store cleaning consumes the largest share of water. In the future, the stores plan to reuse RO (reverse osmosis) residual water. The residual water wasted in the RO filtration process will be taken out from the drainage pipeline and connected to the water tower, which can be used for the faucet, building cleaning and bathroom flushing. In the future, we will continue to monitor changes in water consumption as a reference of future target setting and water management.

 

Although the headquarters building accounts for a relatively small amount of water consumption, we set an example by closely monitoring the annual water consumption as an internal management metric, and by reducing water consumption through water-saving actions. For example, we introduced a device to reduce the amount of water coming out of the taps in restrooms and coffee rooms, installed water-saving devices at the urinals, adjusted the optimal water output of the toilets, reduced the frequency of sprinklers and so forth.