PCSC Sustainability Development

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 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	Food waste results in the loss of resources needed in food production, such as land, water, etc., and can compromise food security in addition to wasting food ingredients	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 prevent stores from operating, causing damage to store infrastructure and merchandise, leading to revenue loss and increased restoration costs. This risk materialized in 2024 when Typhoon Krathon caused severe flooding in certain areas, resulting in equipment damage at affected stores and measurable 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 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. In 2024, food waste generated per NT$1 million in revenue decreased by 47.58% compared to the 2019 baseline. 3.Food Waste Reuse: Off-grade products are repurposed into employee meals or made available for staff purchase to reduce waste.	1.Plastic Reduction in Product Packaging: In 2024, we launched 100% recycled PE shopping bags, reducing virgin plastic use by 50 metric tons monthly. Paper meal boxes were expanded throughout the same year, cutting plastic use by approximately 91.37 metric tons annually. In 2025, an extra-large version of the recycled shopping bag is expected to reduce an additional 24.4 metric tons of virgin material monthly. 2.In-Store Plastic Reduction Measures: Our stores no longer offer single-use utensils and have switched to lightweight packaging for fresh meals. In 2024, 3,952 ice machines were installed across stores to reduce the use of bagged ice, reducing 212.5 metric tons of single-use plastic. 3.Promotion of Recycled Cups: Customers are encouraged to bring recycled cups or rent them via the OPEN iECO Recycled Cups Renting Service, available as of 2022. As of 2024, the service is available in 2,531 stores, covering 35% of all locations nationwide and exceeding regulatory requirements.
Target/Metrics	Targets of climate change are as follows: 1.Reducing EUI by 0.5% compared to the previous year 2.Proportion of direct (Scope 1) and indirect (Scope 2) GHG emission intensity (carbon emission intensity per NT$ million of revenue) reduced by 1.5% compared with the previous year Please refer to Sustainable Goal Management Process in Chapter 4 of the 2024 Sustainability Report for mid- and long-term goals.	Targets of food waste management are as follows: 1.Total weight of all food loss and waste: 11,241 metric tons 2.Total weight of food loss & waste volumes used for alternative purposes: 5,875 metric tons 3.Total weight of food loss and waste discarded (with 2019 as base year): 5,667 metric tons with a 36.5% reduction compared to the base year Please refer to Sustainable Goal Management Process in Chapter 4 of the 2024 Sustainability Report for 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: 18% 2.Proportion of consumers bringing their own cups: 21% 3.Number of stores adopting the Recycled Cups Renting Service: 2,500 Please refer to Sustainable Goal Management Process in Chapter 4 of the 2024 Sustainability Report for mid- and long-term goals.
Target Year	2025 Fiscal Year	2025 Fiscal Year	2025 Fiscal Year
Progress(Note) (Note) Please refer to Sustainable Goal Management Process in Chapter 4 of the 2024 Sustainability Report for updates on the progress made in 2024.	The progress made for climate change in 2024: 1.Proportion of EUI value decrease compared with the previous year: EUI increased by 5.75% compared to 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: Increased by 1.76% compared to the previous year	The progress made for food waste management in 2024: 1.Total weight of all food loss and waste: 12,496 metric tons 2.Total weight of food loss & waste volumes used for alternative purposes: 9,279 metric tons 3.Total weight of food loss and waste discarded (with 2019 as base year): 3,216 metric tons with a 76% reduction compared to the base year	The progress made for packaging materials management in 2024: 1.Proportion of other single-use plastic for private-label products and materials: 20.96% 2.Proportion of consumers bringing their own cups: 20.91% 3.Number of stores adopting the Recycled Cups Renting Service: 2,531
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

Sustainability Taxonomy

In addition to monitoring the performance and progress of key sustainability issues, President Chain Store Corporation voluntarily follows the EU Taxonomy Regulation to identify relevant sustainable economic activities. The company reviews associated operational and financial data—including revenue, capital expenditure, and operating expenses—and provides detailed explanations of its alignment with the EU Taxonomy Regulation. This approach not only deepens its understanding of the sustainable value created through its operations but also demonstrates its commitment to international sustainability initiatives.
The EU Taxonomy Regulation is a classification system designed by the European Union to formulate a list of economic activities that are environmentally sustainable. Taiwan’s Financial Supervisory Commission is drafting its own version of Taxonomy Regulation based on industrial development and the regulatory system, as well as referring to the EU version.

Unit: NT$1,000,000

EU Sustainable Taxonomy	Revenue in 2024		Capital Expenditure in 2024		Operational Expenditure in 2024
EU Sustainable Taxonomy	Amount	Percentage	Amount	Percentage	Amount	Percentage
Taxonomy-Eligible	12,107	5.75%	1,544	23.83%	543	0.84%
Not Taxonomy Eligible	198,598	94.25%	4,935	76.17%	63,927	99.16%

EU Sustainable Taxonomy	Operational Items	Description	Revenue in 2024	Capital Expenditure in 2024	Operational Expenditure in 2024
EU Sustainable Taxonomy	Operational Items	Description	Amount	Amount	Amount
Product-as-a-service and other circular use- and result-oriented service models	OPEN iECO Recycled Cups	The OPEN iECO Recycled Cups Renting Service leverages innovative business models and user-friendly technology applications to reduce the use of single-use paper cups and promote circular use of resources. As of 2024, more than 2,000 stores offer recycled cup services, encouraging consumers to participate in environmental protection efforts and contributing to environmental sustainability.	3,858	12	491
Preparation for re-use of end-of-life products and product components	i-Love Food	President Chain Store Corporation is committed to addressing the issue of food waste. By offering discounts on fresh food products that are nearing their expiration dates, the Company encourages consumers to purchase fresh food products that are nearing expiration. In 2024, approximately 10,000 metric tons of food waste were avoided through the iLove Food program. In addition, the Company implemented a shelf-life extension program for fresh food products, applying new technologies such as post-cooking high-temperature sterilization equipment and specialized sealing films to reduce food waste caused by overstocking.	3,277	3	7
Conservation, including restoration, of habitats, ecosystems and species	Low-carbon products	The development of “low-carbon rice” applies innovative agricultural biotechnology. Through systematic big data analysis and the use of probiotics combined with organic fertilizers in rice irrigation, the approach strengthens root systems and revitalizes farmland ecosystems using sustainable farming methods. This method overturns traditional irrigation-based cultivation and saves up to 30% of water compared to conventional rice farming, offering a resource-conserving approach to produce staple food crops.	2,193	NA	NA
Manufacture of plastic packaging goods	Food products with rPET containers	President Chain Store Corporation continues to expand its use of recycled plastic materials (Recycled PET, rPET). These materials have been applied to packaging for fresh salads and hand rolls, and are gradually being adopted for use in store shopping bags. In 2024, the total weight of recycled materials used amounted to 9,276.04 metric tons, reducing the use of single-use plastics.	1,491	—	12
Freight transport services by road	Collaborate with PackAge+/Gamania RE-BAG recycling shipping bags to promote recycling services at the packaging material recycling station	Connect the one-stop shipping/receiving/recycling processes with the help of high-tech logistics. Besides solving the pain points of sparse recycling stations and time-consuming and laborious manual recycling, the initiative reduced the amount of packaging materials by 0.0193 metric tonnes, which is vital for the circular economy transition (through material recycling and reuse).	1,202	—	—
Composting of bio waste	“Sustainable Farm” recycling program	After the contracted crops are harvested, they are used in side dishes for fresh food products or sold as fresh produce in the stores.About 1 metric tonne of coffee grounds and 4 metric tons of food waste were recycled and converted into fertilizer for contracted fields, producing approximately 200,000 bananas, 10,000 ears of corn and 24,000 heads of cabbage for boxed meals, contributing to circular economy transition (material recycling and reuse).	80	—	0.20
Renovation of existing buildings	Remodel stores purchase smart green energy equipment	The stores’ roof chooses insulating building materials, installs turbine ventilators, and is equipped with energy-saving fans, inverter air conditioners, etc. to save energy. The diversity of eco friendly practices reduced average consumption per store in 2023 by 15,047 kWh compared with 2022 (a total reduction of 6,635,581 kWh in the year), contributing to climate change mitigation by improving building energy efficiency. In 2024, 115 stores were equipped with windbreak rooms, with an expected annual energy saving of 3,233,838 kWh. The lightweight REMO construction method has become mature and is now applied nationwide across stores. As of November, there were 293 REMO stores in total, achieving a total reduction of 2,243.33 tonnes in construction waste, NT$53.96 million in dismantling costs, and 5,427.66 tonnes in carbon emissions.	NA	1,342,813,960	—
Installation, maintenance and repair of energy efficiency equipment	Store energy-saving equipment renovation	President Chain Store Corporation contributes to climate change mitigation by improving build energy efficiency. Patented 9-level acrylic signbo Store energy-saving equipment renovation President Chain Store Corporation contributes to climate change mitigation by improving build energy efficiency. Patented 9-level acrylic signboards with LED lamps from Japan have been introduced to reduce the range of lighting, saving more than 40% of electricity consumption for signboards each year. It is equipped with a GPS photosensitive monitoring system to adapt based on illumination, time and even the season. The color temperature can be remotely controlled through the store manager’s mobile app to further monitor the store’s power consumption. In March 2024, R32 air conditioning systems with a GWP of less than 1,500 were introduced, reducing the warming index by 1,413 compared to the R410 refrigerant in the past. OSC-optimized DC motors were installed, saving 162 kWh per unit per month. Optimized 8HP central units were also deployed, saving 791 kWh per unit per month. New LED lighting for sales floors and signage was adopted, saving 13 kWh and 13.6 kWh per lamp per month, respectively. Total monthly energy savings per store from these energy-saving devices amounted to 1,174 kWh.	NA	187,036,515	—
Installation, maintenance and repair of Renewable energy equipment	Electric vehicle charging piles, electric motorcycle battery swapping stations in the stores	The President Chain Store Corporation Yawan stores collaborates with Taiwan Cement to become the first convenience store in Taiwan to introduce green energy and energy storage as an uninterruptible power supply (UPS). In 2023, a total of 3,082 kWh of green electricity was generated, reducing emissions by approximately 1.523 metric tonnes of CO2e. In addition, President Chain Store Corporation actively launched charging pile services in the stores through collaboration with charging service providers to make convenient and popular electric vehicle charging services a reality. In 2023, a total of 216,678 kWh of electricity to electric vehicles was provided, reducing carbon emissions by approximately 137.092 metric tons of CO2e.	5	—	—
Creative, arts and entertainment activities	Organize activities to promote issues related to climate change transition	President Chain Store Corporation supports international initiatives and government policy programs by collaborating with a wide range of stakeholders. Through ESG activities that integrate creativity, art, and entertainment, as well as active participation in forums and expos, the Company engages with franchisees, employees, government agencies, media, non-profit organizations, industry associations, customers, communities, and suppliers. In 2024, these efforts included participation in the SDG Asia, CommonWealth Magazine’s SDGs International Forum, Business Today’s Green Life Festival, and the United Daily News Super Orange Party, along with joint advocacy initiatives. Additionally, the President Chain Store Corporation Good Neighbor Foundation promoted sustainability through the Youth Deep Root Program and the 7‑ELEVEN “Bring Back the Love” fundraising campaign. Altogether, these online and offline efforts reached over 25 million people in 2024. Through the continued promotion of sustainability initiatives, President Chain Store Corporation seeks to invite consumers to actively participate and experience sustainability in everyday life, truly embodying the spirit of “Planet Sustainability in Our Everyday Life” and expanding its positive social impact.	—	NA	18.90
Education	Organize educational activities to promote issues related to climate change transition	President Chain Store Corporation joins hands with the government, NPOs and public associations to promote the topics of “food and agriculture education, traceability, carbon reduction and food conservation. It also works with the Good Neighbor Foundation to promote the “Reading Encouragement Program” to fill the gap of insufficient teaching materials and improve children’s motivation to read. Moreover, education on topics such as “food waste management, circular economy, low carbon products or services, sustainable consumption and sustainable certification” is arranged through the “Sustainable Industry-Academia Collaboration Project.”	NA	NA	14
Total			12,107	1,544	543

Scope: Standalone financial statements (parent company only)

Material Issues for Enterprise Value Creation

Sustainability Taxonomy