Sustainable dual E engines create excellent business performance

        This year marks the 56th anniversary of the establishment of Far Eastern Department Stores, surpassing half a century of operation. The company constantly strives for innovation and change, creating sustainable value from the inside out, and advancing with the times to promote innovation and transformation of department store business models. We aim to create distinctive department stores for consumers of all generations, creating safe, comfortable, and leisure shopping spaces, I hope that all Far Eastern Department Stores in Taiwan can become the preferred department store for every consumer to shop and have a happy meal. 

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        Along the way, Far Eastern Department Stores adheres to the original intention of "operating according to the wishes of consumers" and provides professional services to customers with dedication. Under the leadership of Chairman's management team and all employees, financial performance has grown steadily, while also committed to implementing ESG (environmental protection, social responsibility, corporate governance), and has been recognized by many awards. The business performance in 2022 reached a new peak since its establishment in 1967, and it was awarded the top 10 most sustainable department stores in the world by the World Department Store Alliance (IGDS). It presented a brilliant EPS+ESG transcript, creating maximum value for stakeholders and setting a brilliant new record for the growth history of Far Eastern Department Stores.

        Retail is all about details. In order to achieve sustainable management in the daily operation of department stores, Far Eastern Department Stores has been developing a plan since 2018 to gradually establish ESG management performance indicators. Currently, there are over 50 ESG KPIs, and the performance of each indicator is regularly tracked through monthly meetings. Before the end of each year, revisions or adjustments are made based on future business goals and development directions. Over the past 5 years, the number of ESG management performance indicators in the company has grown by 83%. With a sound sustainable performance management mechanism, a positive cycle of continuous improvement has been established to enhance the ability to create sustainable value for the enterprise.

 

Leading the way in energy conservation, carbon reduction, and environmental protection

        In order to mitigate the impact of global warming and climate change, Taiwan officially released the "2050 Net Zero Emissions Path Blueprint" in March 2022, and the Ministry of Economic Affairs subsequently released the "2030 Net Zero Transformation Path for the Commercial Sector", proposing feasible carbon reduction measures for the commercial sector, hoping to assist the service industry in accelerating carbon reduction and building a green business model.

        Since 2015, we have been managing the energy efficiency of the service industry with a manufacturing mindset, setting energy performance indicators, and implementing energy-saving planning and management actions. At present, the electricity consumption generated by Far Eastern Department Stores in generating NTD1 revenue has decreased by 16% compared to 2015, and the carbon intensity has decreased by 18%. In 2022, a comprehensive carbon inventory will be further carried out to control bulk energy consuming projects based on the inventory results, in order to reduce carbon emissions. It is hoped to achieve the goal of reducing carbon emissions by 30% by 2030.

 

Layout Green Power towards Net Zero Goal

        One of the important directions towards net zero is to use green energy. Far Eastern Department Stores has been laying out green energy for a long time. Taichung City Far Eastern Department Stores, which opened in 2011, and the top floor of Far Eastern Department Stores Xinyi A13, which opened in 2019, both have solar power generation systems. In order to further expand the use of green energy, the company established a "Green Power Group" in 2021. After evaluation, a solar power generation system will be added to the top floor of the Far Eastern Department Stores Hualien store and the owned land in Taitung. It is expected to be completed by the end of 2023, and the capacity of the Far Eastern Department Stores solar energy installation will be increased to 1600 kilowatts.

 

Reduce waste in shopping malls and reduce environmental waste

        Far Eastern Department Stores regards the daily operation of "garbage, kitchen waste, and waste edible oil" as a key focus of mall waste management. They implement a classification system in office and operating malls, strengthen garbage classification, increase the amount of recyclable resources, and achieve the goal of waste reduction. At the same time, they also promote plastic reduction measures to reduce environmental hazards. At present, the resource recycling ratio of each store is about 39%, and it is planned to increase to 50% in the next 5 years.

 

The Connection of Caring for Social Welfare and Love

        Far Eastern Department Stores takes the strategy of building a local "public welfare platform" and utilizes operating bases throughout Taiwan to penetrate every corner of the city, connect resources from all walks of life, and promote five major categories of activities, including "international activities, vulnerable assistance, maternal and child care, environmental protection, and local development". Last year, its 12 stores held a total of 783 public welfare activities, becoming the department store with the most public welfare activities in Taiwan. In addition, we also call on employees to invest in daily work and give back to society through practical actions. Currently, we have accumulated 3175 volunteer hours, connecting a better life with love.

 

Diversified, inclusive, sustainable and integrated workplace

        Employees spend one-third of their day at the company, so establishing a friendly workplace, respecting differences, providing happiness for colleagues, and allowing them to work with peace of mind are the goals that Far Eastern Department Stores is committed to achieving. In the past year, we have attached great importance to measures such as gender equality, talent cultivation, and promoting a healthy workplace. We have also encouraged employees to establish sports clubs such as yoga, aerobics, mountaineering, billiards, and bowling, allowing like-minded colleagues to enjoy the fun of sports together, cultivate good habits of regular sports, and enhance team emotions and understanding.

 

Collaborate with manufacturers for sustainable supply chain management

        In addition to counter vendors, Far Eastern Department Stores' business partners also have five major categories of suppliers that assist in operations, including engineering, affairs, information, advertising, and labor. Through the supplier management and evaluation system, in addition to ensuring that suppliers not only value quality and comply with legal regulations, but also require everyone to attach importance to sustainability commitments, including "labor rights", "environment" There are four major aspects of "health and safety" and "ethical standards", with 32 specific promotion measures. Suppliers who sign contracts for contracting or procurement with Far Eastern Department Stores must sign the 'Supplier Social Responsibility Commitment Letter'. Since 2017, a total of 1117 commitment letters have been signed, and a sustainable supply chain has been established through institutional management mechanisms.

 

Sustainable management creates a better life

        On the path of sustainable operation, Far Eastern Department Stores has started from a sustainable mindset and continued to transform. So far, it has developed from the first generation stores (Far Eastern Department Stores Baoqing Store) to the fifth generation stores (Far Eastern Department Stores Xinyi A13, Far Eastern Department Stores Zhubei Store). In the process of exhibition planning for each generation of stores, we constantly inject new consumer elements, design consumer preferred operating models, create new patterns of department store management, create innovative department store models, lead fashion trends, and pursue exquisite excellence. We hope that every consumption experience in Far Eastern Department Stores will be a memorable and shared good time.

        Faced with the wave of sustainable globalization, ESG has become a key indicator of sustainable operation. Enterprises need to practice ESG while pursuing financial performance in order to truly improve long-term value and achieve the vision and goals of sustainable operation. EPS+ESG=Enterprise Competitiveness "has become the dual E engine driving sustainable growth of enterprises in the new economy, and it is also the core key to long-term stability and continuous creation of sustainable value for enterprises. Facing the future, Far Eastern Department Stores will work hand in hand with the general public to become a leader and taster of "sustainable creation of a good life", Sustain for a Good Life.

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