Creating Sustainable Value

With the vision of “Sustain for a Good Life”, FEDS is committed to environmental protection (E), social inclusion (S), corporate governance (G) and other sustainable actions to achieve good sustainable management results, creating sustainable value for stakeholders constantly, laying a foundation for the sustainable business of the enterprise, and establishing a benchmark for the sustainable operation in the department store industry.

As the department store with the longest history in Taiwan, the most extensive operating bases, the most localized development, and the most sustainable transformation, FEDS takes “giving back” as the basic value of its sustainable development while leveraging its core capabilities to build a communication platform in the process of pursuing the growth of the Company. Adhering to the spirit of “Thinking Globally, Acting Localy”, FEDS aligns with the United Nations Sustainable Development Goals (SDGs) and Taiwan Sustainable Development Goals, realizes various sustainable localization actions, contributes to the sustainable development of the economy, environment and society through concrete sustainable practices, and creates an all-win sustainable growth model.

Sustain for a Good Life

UN's Sustainable Development Goals

Environmental (E)

Environmental aspect：Development of green energy、Resource recycling、Optimize the environment、Implementation of biodiversity

Goal 7

Support green energy, install solar photovoltaic equipment, gradually increase the amount of green energy used, and improve energy efficiency.

The revenue generated per kWh of electricity increased by 8% compared to the previous year.
The 4th and 5th generation stores are 100% green buildings. Through the energy-saving design of buildings, it can decrease the energy consumption.
Plan to install two additional solar photovoltaic facilities in Taitung and Hualien to increase the use of renewable energy.
Establishing energy-saving KPIs to conduct regular monthly control. FEDS promoted 29 energy-saving projects and save 2,130,841 kWh of electricity.

Goal 12

Provide environmentally friendly products and services, promote green consumption, develop green economy, and improve resource sustainability.

For 9 consecutive years, FEDS has promoted green services such as packaging reduction and printing reduction with the spirit of 3R and 3E, reducing the impact of consumer behavior on the environment.
Green procurement is the priority principle for all procurement. By 2023, green procurement accounted for 100% and the predetermined goal was achieved.
Resource sustainability: FEDS implements garbage classification to recycle usable resources, and recovered 1,372 tons of reusable resources in 2023, with a growth rate of 4%.
The signing rate of the supplier’s Corporate Social Responsibility Commitment Letter is 100%.

Goal 13

Develop actions related to climate change risk management, strengthen education and awareness, and seek the opportunities to develop green transition.

Introduced the TCFD project, set up an implementation team, and identify climate risks and opportunities.
The coverage rate of greenhouse gas inventory fully expanded to 100%.
Carbon emissions of categories (I+II) is 6,195 tons, decreased by 7.4%.

Social (S)

Social aspect：Improve gender equality、Implement universal health coverage、Promote local creation、Promote rural development

Goal 2

Hold diversified public welfare activities, market high-quality agricultural products, and donate living materials to vulnerable groups

805 public welfare activities were held, an increase of 28% over the previous year.
Conducted marketing on high-quality agricultural products, and gathered 593 stalls with 3,721 items sold.
Caring for rural areas, shoes were donated to more than 3,500 rural school children for 15 consecutive years.

Goal 3

Carry out internal employee health promotion program, and organize various external activities to promote people’s healthy life.

Promoted the “Employee Health UP” promotion program for 5 consecutive years and became an employee health management partner.
Arranged 51 on-site sessions for physician services to provide health consultation.
Held 45 blood donation events and raised 3.18 million CC blood.

Goal 5

Formulate and implement gender equality policies, eliminate gender discrimination, and create a friendly and respectful workplace environment.

Establishing a gender-friendly workplace, held training courses, trained 622 people.
Establishing “workplace sexual harassment prevention and control measures”, and creating a respectful workplace environment.
Demonstrate gender empowerment, where female directors account for 43% of all directors, female supervisors account for 48% of all supervisors, and female employees account for 63% of all employees at FEDS.

Governance (G)

Economy aspect：Promote inclusive economic growth、Promote innovative growth、Develop digital economy

Goal 8

Adjust the operating model, improve business performance, create job opportunities, and ensure fair compensation.

The 11 stores in Taiwan have introduced more than a thousand counter vendors to provide products and services and create more than 16,000 job opportunities.
In 2023, FEDS’s revenue reached a historic high, exceeding NT$60.8 billion, with a growth rate of 7%.
Continued management innovation and promoted 40 management-level action projects to ensure corporate competitiveness.

Goal 9

Accelerate digital transformation and use technology to create a new shopping journey and consumer experience for customers.

The membership of the FEDS APP has increased by 35%. Through big data analysis, FEDS can grasp consumer preferences, conduct personalized and precise marketing.
Establishing 98 sets of digital management systems, FEDS is committed to improving the efficiency of various operational management and services.
Providing digital services such as mobile payments, electronic invoices, and electronic redemption vouchers, to build convenient and fast smart consumption and services.

Goal 17

Establish multiple partnerships, exert positive influence, and enhance sustainable power.

Joined 52 public associations and organizations to exert influence.
Participated in the Climate Change Sustainability Forum jointly organized by Yuan Ze University and R20, and pledge to invest resources to combat climate change and fulfill environmental responsibility.
In response to the “1.5°C Climate Action Declaration”, together with 160 companies, FEDS pledged to support the 2050 net zero path plan and work towards low-carbon transition.
The only Taiwanese department store representative of the Intercontinental Group of Department Stores (IGDS), and implemented the CSR Code established by IGDS together with 45 global members.

Creating a Sustainable Value Creation Chain

遠東百貨致力打造永續價值創造鏈，結合產業鏈上游的專櫃廠商與下游的消費者，擘劃六大永續行動：「永續的經營治理、創新的標竿商場、高效的環保營運、安心的商品管理、健康的幸福職場、溫暖的社會關懷」，串聯價值鏈上游至下游，包含：商場建置營運、專櫃廠商進駐、商品採購管理到顧客服務等範疇、滿足每一位消費者，擴大社會影響力，於每一個環節創造最大的永續價值。

Financial capital

Working capital

Intelligent capital

Human resources capital

Natural capital

2030 Goals

Input

Through shareholders’ capital investment, FEDS maintains a sound corporate governance mechanism to drive corporate performance and shareholder interests.
NT$14.169 billion in capital

Output

Consolidated revenue of NT$126.0 billion, a growth of 12%
Standalone revenue of NT$57 billion, hitting a record high
EPS of NT$1.37, a growth of 59%

Input

FEDS develops business in various regions, works with partners to provide high-quality products, and establishes a safe and secure shopping environment.
12 operating stores of FEDS across Taiwan

Output

Signed a total of 1,117 CSR commitment letters by suppliers
Sold a total of 1,239 kg of environmentally friendly coffee
Green procurement accounted for 99%
Existing stores are 100% equipped with certified AED Safe Place (the Zhubei Store is currently processing the application)

Input

FEDS utilizes digital technology to develop three major focuses of “digital operation, digital experience, and digital management” and provide customers with unique consumer experience.
Established a digital transformation team
Set up the Chief Information Security Officer and legal unit

Output

Established a mobile office and installed 97 sets of digital management systems
In terms of digital experience, FEDS’s app members exceeded 1 million
Protected goodwill, safeguarded intellectual assets, and shared 375 updates on laws and regulations

Input

FEDS emphasizes talent cultivation and retention, provides competitive salaries, allows employees to grow together with the Company, and establishes a sustainable and inclusive workplace.
A total of 1,374 employees

Output

A total of 219 interns were trained under the industry-academia cooperation program
The total annual training hours of employees are 20,207 hours, with an average of 14.7 hours per employee
Average monthly salary of employees is 1.35 times higher than the retail industry

Input

FEDS gives back to the society and joins hands with stakeholders to participate in social welfare activities to strengthen the energy of public welfare and create a better future.
Public welfare expenditure of NT$2,400 thousand

Output

Held 783 public welfare events
925 hours of volunteer services
Sponsored 11,319 square meters of green parkland around the stores

Input

FEDS promotes the four major actions of “energy saving, carbon reduction, green energy, and waste reduction” to create green value for the society through products and services, and transform towards low-carbon retail.
Launched 24 energy saving projects with total investment amount of NT$24,418 thousand
Installed 96 kilowatts of solar photovoltaic equipment, which will grow to 1,600 kilowatts next year

Output

Implemented energy saving and carbon reduction to improve Energy Use Intensity (EUI) by 5% in 5 years
Resource recycling reached 1,316 tons, an increase of 36%, in an effort to promote resource sustainability
Invested NT$6.2 million to renovate the sewage treatment system
97,000 kWh of solar power generation

6 major goals to be achieved by 2030: Energy saving, carbon reduction, green energy, waste reduction, public welfare, and digitalization

Energy saving: 15% reduction in electricity consumption per NT$1 of revenue
Carbon reduction: Formulating a plan to move towards net zero and achieve a 30% carbon reduction by 2030
Green energy: Developing solar energy with 20% increase in green energy usage
Waste reduction: Reducing waste generation, minimizing environmental pollution, and increasing the proportion of resource recycling to 50% in each store
Public welfare: Caring for the society and holding more than 500 public welfare activities every year; 8,000 hours of service by employee volunteers
Digitalization: Promoting digitalization constantly, achieving 98% digitalization for all operations and moving towards a paperless working environment

Creating a Sustainable Value Creation Chain

Financial capital

Input

Capital amount: NT$14,169,406 thousand.
Standalone operating cost: NT$3,579,943 thousand.

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Financial capital

Output

Consolidated revenue continued to grow to NT$135 billion.
Standalone revenue of NT$60.8 billion, a growth of 7%.
EPS of NT$1.95, a growth of 42%.

Working capital

Input

11 operating stores of FEDS in Taiwan.
The total business area of 958,702 m2.

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Working capital

Output

15,477 persons of business partners.
1,380 Supplier CSR Commitment Letters signed by suppliers.
21,221 items of products with environmental protection (green) mark were sold.

Intelligent capital

Input

Digital transformation team of 19 members.
Security legal team of 13 members.

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Intelligent capital

Output

Established 98 sets of management digitalization systems.
The number of trademarks and patents applied for was 15.
The accumulated number of trademarks and patents applied for was 173.

Human resources capital

Input

A total of 1,282 employees.
Employees remuneration cost of NT$1,072,411 thousand.

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Human resources capital

Output

A total of 190 new employees.
An average of 23.6 hours of training per employee.
Benefit of each employee increased by 17%.

Social capital

Input

FEDS gives back to the society and joins hands with stakeholders to participate in social welfare activities to strengthen the energy of public welfare and create a better future.
Public welfare expenditure of NT$2,163 thousand.

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Social capital

Output

Held 805 public welfare events.
2,990 hours of volunteer services.
Sponsored 11,319 square meters of green parkland around the stores.

Natural capital

Input

NT$4,962 thousand to lunched 29 energy saving projects.
Green purchase of NT$21,557 thousand.
Track monthly resource recovery KPIs to reduce environmental waste.

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Natural capital

Output

89,000 kWh of solar power generation.
62 charging mounts in parking lot, an increase of 15%.
Resources recycled by 1,372 tons.

6 major goals to be achieved by 2030: Energy saving, carbon reduction, green energy, waste reduction, public welfare, and digitalization

Energy saving: 15% reduction in electricity consumption per NT$1 of revenue.
Carbon reduction: Formulating a plan to move towards net zero and achieve a 30% carbon reduction by 2030.
Green energy: Developing solar energy with 20% increase in green energy usage.
Waste reduction: Reducing waste generation, minimizing environmental pollution, and increasing the proportion of resource recycling to 50% in each store.
Public welfare: Caring for the society and holding more than 500 public welfare activities every year; 8,000 hours of service by employee volunteers.
Digitalization: Promoting digitalization constantly, achieving 98% digitalization for all operations and moving towards a paperless working environment.