Energy Saving and Carbon Reduction

以製造業思維管理能源效率

Due to the extended operating hours from 10 to 11 hours for FEDS’s various branches, energy management has become a crucial management issue. To maximize the energy efficiency, FEDS adopts a “manufacturing mindset for managing energy efficiency in the service industry”. Since 2015, the Engineering Department has been at the core of this approach, setting energy key performance indicators (KPIs) and conducting monthly reviews and analysis of various energy consumption data. At the same time, they enhance the maintenance and repair of equipment. By employing a dual approach of “software management and hardware maintenance”, the Company continuously improves energy efficiency and enhances energy management performance.

Establishment of KPIs for regular monitoring

In 2023, the Engineering Department has established 12 KPIs for energy efficiency, equipment repair, and other management aspects. Compared to the previous year, the content of the indicators has changed to: continue to use 1 indicator, revise the 5 indicators, and add 6 new indicators. The responsible personnel of the Engineering Department regularly track and analyze indicator data on a monthly basis, assist underperforming subsidiaries in identifying the reasons and formulating improvement plans. In 2023, education and training were provided to employees of subsidiaries whose equipment inspection pass rate and on-time rate did not meet the standards. For outstanding subsidiaries, they were invited to management meetings for sharing. Mutual communication, discussion, and learning were carried out to motivate more solutions to optimize energy efficiency, and to establish a better energy management model for continuous improvement.

能源管理指標

Introducing ISO standards to improve management

FEDS lead in the industry in introducing the “ISO 50001 Energy Management System” in the corporate headquarter building and Mega City Banqiao Store in 2017. In 2018, it further established the “Real-time Energy Performance Indicator Platform” in Mega City Banqiao Store, becoming the first department store in Taiwan to introduce this system. In 2021, Top City Tainan Store was designated to introduce the “ISO 50001 Energy Management System”. In 2023, each import branch updated the Energy Management Action Plan Implementation Procedure and implemented the Energy Risk Opportunity Registration and Identification Form to include changes in external and internal issues, as well as evaluation for risks and opportunities related to the energy management system. The significant risks identified by the evaluation results were then regulated to establish energy targets and serve as the basis for the 2023 energy goals and management targets.

ISO50001有效期限：2021年1月7日至2024年1月6日
ISO50001認證日期：2021年1月7日

2017

導入ISO 50001 能源管理系統
系統性監控，提升能源使用效率。

2018

建置即時能源績效指標平台
全台第一家百貨導入，持續優化節能效率。

2019

導入ISO 14064 溫室氣體盤查
管理溫室氣體風險，並積極尋求碳排減量。

2020

執行ISO 14046 水足跡盤查分析
減少水資源耗用，提升用水效率。

2021

台南大遠百導入ISO 50001能源管理系統
擴大能源管理效率。

2022

未來將持續評估導入其他分公司

Promoting energy-saving projects

FEDS carried out 29 energy-saving projects in 2023, with a total investment of NT$4,962 thousand and a total energy-saving benefit of 2,130,841 kWh. Among them, 6 energy-saving projects are multi-year implementation plans, and the rest are plans that can be completed in the current year. In terms of project content, there are 7 energy-saving improvement plans related to the air conditioning equipment, and the energy-saving benefits can reach 785,285 kWh; there are 19 energy-saving improvement plans related to lighting, and the power-saving benefits can reach 1,111,648 kWh. Through the improvement of the air conditioning and lighting equipment, the energy-saving benefits generated by both accounted for 89% of the total energy-saving benefits.

Electricity consumption intensity

- 0 %

0.00441

2017

0.00367

2023

  • Note: Electricity consumption intensity = electricity usage (kWh) ÷ turnover (NT dollar).

Excellent performance in energy efficiency

The annual energy usage intensity per unit area (EUI) is one of the important energy management indicators for FEDS. Our management target refers to the average EUI of the department store industry, and the EUI is tracked and managed by the Engineering Department on a weekly basis. Looking at the actual EUI figures, we can see that FEDS’s dependence on energy has decreased year by year, and the EUI decreased from 333 in 2017 to 310 in 2023, showing a decrease of 7%. The 2023 EUI also decreased by 1.3% compared to the previous year.

From the perspective of the relationship between turnover and electricity consumption, FEDS is showing a trend of increasing revenue but decreasing energy dependence. The electricity consumption per NT$1 of turnover of FEDS has dropped from 0.00441 kWh in 2017 to 0.00367 kWh in 2023, a decline of 17%, which indicates that the energy-saving management measures promoted by FEDS are taking effects, evidenced by the significant improvement in energy efficiency. In the next five years, FEDS aims to maintain the reduction of electricity consumption by 15% for every NT$1 of turnover.

  • Note 1: FEDS XinYi A13 and the Zhubei Store were included in the electricity statistics starting 2021 and 2022, respectively.
  • Note 2: Affected by the epidemic, each branch has shorten its business hours from May to July 2021, resulting in a significant reduction in electricity consumption.

With the aim of saving 1% electricity in 2023, the total electricity consumption of FEDS in 2023 was 222.89 million kWH across all stores in Taiwan, a decrease of 3.3 million kWH compared to 2022, and a power saving rate of 1.5%, exceeding the established target. In the future, the Engineering Department will focus on improving the operation and performance of air conditioning equipment, lighting fixtures, and escalator (elevator) systems, strengthening management intensity, and continuously optimizing energy efficiency.

Towards the target of net zero emissions by 2025, In line with the government’s energy transition policy, FEDS has launched its green energy layout in advance, and the two branches, namely Top City Taichung Store opened in 2011, and FEDS XinYi A13 opened in 2019, have installed solar power generation systems with a total capacity of power generation of 96 kW. In order to increase the use of green energy, FEDS launched the “Green Power Plan” in 2022. In cooperation with Prime EcoPower Co., Ltd., FEDS Group’s affiliated company, it is planned to add two new solar power generation facilities in the Hualien Store and FEDS’s own land in Taitung, with a power generation capacity of nearly 1,600 kW. It is estimated that after completion, they will be able to produce 1.94 million kWh of green power per year for self-use. To further improve the efficiency of green electricity, in November 2023, FEDS applied for a Renewable Energy Certificate (T-REC) for solar equipment of Top City Taichung Store, which is expected to be approved in March 2024.

Greenhouse gas inventory

In 2019, FEDS took Hualien Store as a demonstration store and introduced ISO 14064-1:2018 carbon emission inventory. Through the standardization process to identify the Company’s internal energy consumption and carbon emissions, FEDS further control bulk energy consumption and carbon emission projects. In 2022, the coverage rate of greenhouse gas inventory fully expanded to 100%. Using the operation control method, 100% of the greenhouse gas emissions caused by the facilities managed or operated by the company was recognized for inventory. FEDS continued to conduct comprehensive greenhouse gas inventory and verification in 2023, while promoting the consolidation of subsidiary companies to carry out greenhouse gas inventory planning.

Carbon dioxide emission intensity

  • Note 1: The carbon emissions are calculated based on the electricity carbon emission coefficient announced by the Bureau of Energy. The 2022 coefficient has not been released, and hence the calculation was based on the 2021 coefficient of 0.507 kg CO2e/kWh.
  • Note 2: Emission intensity = Total carbon emissions (ton) ÷ revenue (NT$100 million)

Greenhouse gas equivalent emissions

Unit: tCO2e
Year2023

Scope I: Direct greenhouse gas emissions

5,512

Scope II: Energy indirect greenhouse gas emissions

72,050

Total

77,562
  • Assurance organization: TÜV Rheinland Taiwan Lltd. refrigerator, and water dispenser.
  • Assurance Standard: ISO 14064-3:2019
  • Base year : 2022
  • Assurance Level: Moderate Level (Scope 1、Scope 2)