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 fourth and fifth generation stores are 100% green buildings, and the energy consumption is reduced through the energy-saving design of the building itself.
  • The total solar power generation capacity is 97,000 kWh, and the “Green Power Plan” has been launched to increase the capacity of 1,600 kW of solar power generation devices.
  • In 2022, 24 energy-saving and carbon-reduction projects were implemented, and the electricity consumption per NT$1 of turnover decreased by 12% compared with 6 years ago.
Goal 12
Provide environmentally friendly products and services, promote green consumption, develop green economy, and improve resource sustainability.
  • Held 100 agricultural product markets to reduce food losses in production and supply chains.
  • Through reduction, recycling and reuse, waste was reduced. 1,316 tons of reusable resources were recycled, and product packaging consumables were reduced by 0.3%.
  • Advocated a sustainable and better life, and launched a new paper shopping bag with a sustainable concept.
  • Promoted the sustainable procurement process, increased green procurement items by 60%, and 100% of suppliers signed the Corporate Social Responsibility Commitment Letter.
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.
  • Conducted climate risk training for 113 employees, with a total of 264 training hours.
  • Conduct comprehensive greenhouse gas inventory with 100% coverage.
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
  • 783 public welfare activities were held, an increase of 35% over the previous year
  • Conducted marketing on high-quality agricultural products, and gathered 939 stalls with 4,423 items sold.
  • Caring for rural areas, shoes were donated to more than 3,000 rural school children for 14 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 4 consecutive years and became an employee health management partner.
  • Insured employees with medical insurance and invested NT$2.47 million for the whole year.
  • Arranged on-site physician services and provided health consultation for 416 employees.
  • Held 74 blood donation events and raised 3.446 million CC blood.
Goal 5
Formulate and implement gender equality policies, eliminate gender discrimination, and create a friendly and respectful workplace environment.
  • Established a gender-friendly workplace, held training courses, trained 335 people with total training hours of 170.8.
  • Four labor-management meetings are held every year to promote diverse communication and ensure equality and inclusion in the workplace.
  • Mega City Banqiao Store cooperated with the New Taipei City Department of Education and invited nearly 200 teachers and staff to gather at Village Roadshow Studios to watch the movie “Fairy Tale World” and encourage educators to continue to pay attention to the issue of gender equality among young people.
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 12 stores in Taiwan have introduced more than a thousand counter vendors to provide products and services and create more than 15,000 job opportunities.
  • Promoted economic growth and the revenue broke through the NT$50 billion mark, a record high.
  • Continued management innovation and promoted 35 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 FEDS app continued to be upgraded to provide more accurate customer services and a more convenient consumer experience. The number of members has exceeded 1 million.
  • There are 112 digital signages in 8 branches (excluding counters) in Taiwan, providing real-time and vivid multimedia information.
  • Promoted the digitization of coupons such as bonus coupons, taking into account convenience and environmental protection, and issued more than 22.437 million electronic coupons.
Goal 17
Establish multiple partnerships, exert positive influence, and enhance sustainable power.
  • Joined 47 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。
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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%
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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)
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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
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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
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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
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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

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

Financial 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%

Working capital

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
more

Working capital

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)

Intelligent capital

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
more

Intelligent capital

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

Human resources capital

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
more

Human resources capital

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

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$2,400 thousand
more

Social capital

Output

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

Natural capital

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
more

Natural capital

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