Survival of the fittest, wisdom endures forever

        Under the multiple pressures of extreme climate, policy changes, and sustainability pressures, enterprises are facing unprecedented challenges. Short term adaptation alone is no longer sufficient to cope with the future, and 'smart sustainability' can go further. FE SOGO Department stores Sophia C.W. Huang Chairman Provide insightful insights and practical guidance for enterprises pursuing long-term competitive advantages through practical experience.

                In the morning, when I opened my phone, I saw that extreme weather had caused heavy rain in Vietnam, and the promised delivery date of the goods from the supplier had to be postponed to catch up with the launch of the new autumn products; Received notification from manufacturers at noon that a new round of carbon tariffs is about to hit the road, and prices will soar; In the evening, a globally renowned environmental group submitted 30000 signatures, demanding that product packaging be reduced in plastic

        These visually stunning scenes are part of our daily operations. Usually, we can always adapt to the situation and get through the present, which is' survival of the fittest '. However, in order for a company to last forever, it must anticipate trends, focus on five years later, and take action two years ago, actively layout and create long-term value for the company, and pursue stable and outstanding "wise sustainability".

        Fittest, adept at quick response, adept at navigating between risks and opportunities, and immediately restructuring the supply chain when raw material prices rise; When local regulations become stricter, immediately switch to areas with relaxed regulations, survive through flexibility and speed, and maintain operations through adjustments and compromises.

        A wise person should not only overcome crises in changing situations, but also actively create opportunities, plan ahead, and turn today's decisions into tomorrow's competitive advantages. Wise companies view ESG (Environmental, Social, Governance) as a growth engine that enhances organizational resilience. Through innovation and digitization, they not only address environmental and social issues, but also open up new markets for themselves.

        The model of sustainable wisdom - Unilever's supply chain management

        Taking Unilever, a global food, cleaning, and personal care product brand, as an example, they are one of the largest users of palm oil in the world, consuming over a million tons of palm oil annually. Although palm oil is an economic crop, it requires large-scale deforestation in Southeast Asia, resulting in increased carbon emissions, loss of biodiversity, and human rights risks. In response to the concerns of consumers, investors, and regulatory agencies about ESG, Unilever actively intervenes at the source of the supply chain, using satellite positioning and AI technology to automatically detect illegal logging and high-risk areas, improving warning and audit efficiency.

        By the end of 2023, Unilever has achieved 97.5% zero deforestation in its raw material supply chain, allowing local ecosystems to thrive naturally, maintaining biodiversity, and preserving the way of life of local communities. It has successfully turned the impact of its supply chain on the environment into a turning point for the green revolution, enhancing its brand image and becoming a model of 'smart sustainability'.

        Sustainability is the True Way - Huida: America's Sustainable Gifted Students

        However, this year in the United States, the direction of sustainability seems to have changed 180 degrees. Immediately after taking office, President Trump announced that a series of policies, such as "Drill Baby Drill!", had rewritten the supply and demand structure of the market and further challenged the accumulated foundation of "Sustainability Development" over the years. After all, sustainability is just a temporary fake trend? Or is it a real issue that will continue to affect the future?

        We can see the direction of global capital flow. According to Morningstar data, the asset size of sustainability related funds worldwide reached a historical peak of USD 3.2 trillion by the end of 2024, an increase of 8% from 2023 and more than four times that of six years ago. Among them, Europe remains the main market for various perpetual funds, with 84% of assets. Affected by the domestic political and economic situation, the United States will drop to 11% in 2024, which is lower than six years ago. However, in regions other than Europe and America, although the global proportion is not high, it has still grown 3.3 times in the past six years. In other words, apart from the United States, sustainability is still thriving in other regions of the world.

        We can also validate the concept of 'smart sustainability' through brand value. According to the Brand Finance Global 500 Report, the top 50 most valuable brands in the world by 2025 are ranked in order: Apple、Microsoft、Google、Amazon、Walmart、Samsung Group、TikTok、Facebook、NVIDIA、State Grid Corporation of China State Grid Corporation of China). If we compare the top ten brands with their sustainable performance and brand growth rate, we will find that NVIDIA's brand value has skyrocketed by 98%, becoming the most valuable brand in the world with the largest added value. And NVIDIA is also one of the few perpetual gifted students who have received AAA in MSCI ESG ratings multiple times since 2018!

        The Heart of Sustainable Practice - Experience Sharing of FE SOGO Department Stores

        The sustainable transformation of FE SOGO Department stores began in 2014, when the scandal involving spoiled water and oil had widespread and deeply affected people's livelihoods, causing panic among the general public. FE SOGO Department stores has taken the lead in the entire retail department store industry in Taiwan, proactively removing all problematic group products to ensure consumer food safety. As a result, it has gained the trust of consumers and opened up an opportunity for internal promotion of corporate social responsibility (CSR). Since then, although FE SOGO Department stores have not been publicly quoted entities, they have always been autonomously managed through 'forward deployment'. When the Financial Supervisory Commission launched the first wave of CSR reporting standards in 2015, we began to independently disclose ESG performance year after year and embarked on a comprehensive transformation path.

        Actively building low-carbon operations, promoting happy workplaces and secure stores, and connecting sustainable ecosystems across borders, FE SOGO Department stores have demonstrated remarkable performance in the three major areas of environment, society, and corporate governance. With multiple leading industries and years of hard work, they won the first award in the comprehensive performance service industry category at the 2025 Vision ESG Enterprise Sustainability Award this year; Received recognition from over 220 domestic and international awards over the years.

                Nowadays, ESG has become the key to driving net zero transformation for enterprises. Through the sustainable development of FE SOGO Department stores, I would like to share three beliefs with leaders and professional managers from all walks of life:

        Advanced deployment insight and courage:

        In 2015, without precedent, we gradually established the "Product Category Rules" for the carbon footprint of the department store retail industry, which has become the standard for carbon footprint inventory in today's department store retail industry. In 2017, we were the first to stop using disposable and melamine tableware. Next, EP100 and TNFD, we will all pursue our dreams with peace of mind! To improve oneself, one must be bold to lead.

        The determination and resilience to lead by example:

        I myself serve as the chairman of the FE SOGO Department stores' Sustainability Development Committee, brainstorming and working together with my colleagues. I am by my colleagues' side during their most difficult or doubtful times.

        Creating a sustainable and inclusive ecosystem:

        Our mindset is not to do a fireworks show and achieve ourselves, but to internalize ESG into the DNA of SOGO and work together with stakeholders to create a healthy and prosperous sustainable ecosystem. Because one person walks fast, a group of people walk far; More partners, more resources, and greater influence.

        Finally, don't underestimate a small and insignificant change, just like FE SOGO Department stores' comprehensive removal of problematic oil products, which was based on the original intention of the service industry to consider customers, but inspired sustainable transformation in the next decade, creating a butterfly effect and bringing about significant positive changes. On June 3, 2025, Sophia C.W. Huang Chairman gave a speech titled "Survival of the Fittest, Sustainability of the Wise - Why Companies Should Do ESG? Title: Summary of the Speech at the 2025 Leadership Lecture at the Women's Board of Directors College

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