Message from the Chairman

Far Eastern Department Stores Chairman
Douglas Tong Hsu

For a good company to improve and grow as an excellent enterprise, it must deliver outstanding performance, make valuable contributions to the society, and maintain long-term competitiveness. Far Eastern Department Stores (FEDS), after 55 years of operations, through its innovative spirit, has advanced with time by focusing on staff wellness, talent cultivation, corporate governance, and ethics management as well as stayed responsive to changes of the external environment, and be able to deliver a strong business performance. In recent years, we have particularly included ESG into our operating strategies, established the sustainability-oriented management model, hoped to create higher economic, social, and sustainable value, and achieve a more sustainable business model.

Top 10 of Global Sustainable Department Store

With “Sustain for a Good Life” as its vision, FEDS continues to implement its ESG action plans in 2022 to expand its social contribution and positive impact. Our outstanding campaigns were recognized by Inter-Continental Group of Department Stores (IGDS) as World’s Best Sustainability Campaign by a Department Store, Taiwan’s first department store to be awarded and ranked among the world’s Top 10 best sustainable department stores together with many renowned international department stores such as Selfridges in the U. K.

Reaching Net-Zero Emissions in 2050

The United Nations Climate Change Conference COP 27 has concluded in November 2022 in Egypt, nearly 200 nations continued to reach consensus to limit global temperature rise to 1.5 degrees Celsius to slow down the speed of global warming. Facing the impact of climate change, FEDS in compliance with ISO 14064-1 international standard to promote greenhouse gas inventory and adopting Task Force on Climate-related Financial Disclosure (TCFD) framework to introduce climate risk evaluation and management mechanism, reaching low carbon retailing transformation. Furthermore, the Company already started to establish solar photovoltaic devices in Hualien and Taitung, after completion of which annual capacity will be 1.14 million kWh of green power, reducing 30% carbon emission in the following 5 years, and gradually reaching global net-zero declaration.

Cultivate Outstanding Talent Team

Plan talent recruiting and cultivate talents have always been vital for corporate human resource management, which is also important foundation for the sustainable operation of our business. When dealing with tension and crisis brought by the uncertainties in operating environment, the enterprise would need to promote more systematically its talent cultivation and development, elevate talent competitiveness, so to respond to possible future challenges accordingly. FEDS has established a comprehensive talent recruiting blueprint and occupational training mechanism, invest in sufficient training resources, and strengthen collaboration with the Group’s educational institutes, to deploy in advance the talent reserve teams for future retailing, and allow employees to grow jointly with the corporation.

Build up Digital Competitiveness

The advancement of digital technologies have changed global consumer behaviors, in particular Covid-19 pushed more consumers to engage in online activities and expedited the growth of e-commerce. The retail industry needs to be more proactive in promoting digital transformation, and thus retain customers with rich experiences. With the application of technologies, retailers in the U. S. collect consumer footprints in detail, such as their time spent within stores, shopping patterns, etc. By analyzing these shopping footprints and behavior, the retailers can comprehend consumer preference and needs, based on which to adjust their marketing campaigns and operation content, then design an offline merge online omni-channel shopping journey. Harvard Business Review, with its 100 years of publishing history, conducted interviews on top CEOs in the world and summarized two mindsets to manage businesses, namely “Innovation” and “Sustainability.” Similarly, FEDS also follows the directives of “Innovation” and “Sustainability”, aligns with market dynamics, advances with time, continues to innovate, retain adaptability, also focuses on the purpose of the corporation’s existence, the objective and vision established should consider all stakeholders, continuously improve and implement ESG, as the foundation for the corporation’s sustainable developments.