Sustainability Management
ESG
A Word from the Chairman
2023 was an extremely challenging year for PChome. As the dividends of the pandemic dissipated, the overall e-commerce industry gradually returned to its mid-to-long-term development track. At the same time, we also accelerated the pace of reform and transformation. Facing the changes in the overall environment, PChome still adheres to the core philosophy of “committed to innovation and value creation,” emphasizes the core value of “customers first,” and focuses on actively and fundamentally strengthening its operating structure, reshaping its brand image, optimizing the shopping experience, and improving operational efficiency. Despite the challenges of transformation, PChome remains committed to ESG and continues to carefully review and propose improvement plans in three major aspects: corporate governance, environmental protection, and social responsibility. We have also incorporated the concept of sustainability into our business strategies. We will continue to respond positively to all stakeholders’ concerns.
The ESG Sustainable Development Committee Continues to Operate
and Strengthen Corporate Governance for Sustainability
PChome established the “ESG Sustainable Development Committee” in 2022, in which the CEO serves as the chairman of the committee. We also established the ESG Task Force and built a cross-departmental “Governance and Responsibility Team,” “Environmental Protection and Energy Conservation Team,” and “Employee and Social Care Team,” which are responsible for the planning and implementation of various sustainable development projects. Team members also incorporate ESG work goals into the performance evaluation of each department, review progress on a monthly basis to timely monitor the progress of the Company’s ESG strategy, and strengthen employees’ recognition of the Company’s sustainability strategy.
Establishing the “PChome Love Charity” Platform to Support
Disadvantaged Groups with Action
We have dedicated long-term efforts to social welfare and continue to pay attention to issues related to disadvantaged groups. We created the new “PChome Love Charity” platform. Currently, we have invited 8 charity groups to join the platform, covering physical and mental disabilities, seniors, teenagers, disadvantaged women and children, people with burns and facial injuries, environmental protection, and animal protection. Through bridging love and compassion, we align the public’s goodwill with the needs of social welfare groups, leveraging our brand reputation and portal website traffic, gathering information on the donations of funds, supplies, and charity products from public welfare groups on the platform, and encouraging the public to jointly respond to and care for disadvantaged groups. The initiative aims to integrate charitable deeds into our daily lives and make real changes in society.
Improving Sustainable Operations and Corporate Governance to
Realize Mutual Benefi t with Stakeholders
PChome implemented the Taiwan Intellectual Property Management System (TIPS) in 2020. In addition to being awarded a certificate for passing Level A certification from the Industrial Development Bureau, Ministry of Economic Affairs in 2022, the Company passed the re-inspection at the end of the year. At the end of 2023, the Company also passed the sampling inspection, maintaining TIPS A-level certification. We maintained our performance in the second bracket of the Corporate Governance Evaluation in 2023, which shows that we attach great importance to intellectual property management and corporate governance. Our sustainability actions were also recognized with the Sustainability Report Gold Award at the 16th TCSA. Moving forward, we hope to utilize company resources more effectively, improve operational efficiency, and improve social welfare, while enhancing our competitiveness.
Strengthening Stakeholder Engagement to Jointly Engage in Sustainable Development
To protect the rights and interests of stakeholders, PChome established an effective corporate governance framework with regulations in place to protect the rights and interests of shareholders. We strengthen the functions of the Board of Directors, give full play to the functions of the Audit Committee, respect the rights and interests of stakeholders, and improve information transparency. We also established smooth communication channels and properly handled matters based on the principle of good faith. We also prepared ESG speaking notes on topics of concern to all stakeholders, in order to better understand the Company’s ESG practices and encourage stakeholders to support PChome’s philosophy and jointly engage in sustainable development. A Word from the Chairman Looking forward, PChome will prioritize returning revenue and profitability on track to growth, and also step up existing sustainable development strategies and scale of actions, in hopes of using ESG to build corporate resilience, implement sustainable development, and deepen relationships with stakeholders. We will gather positive forces to jointly contribute to environmental sustainability, social welfare, and economic prosperity, and create value for society. At the same time, PChome remains strongly committed to becoming a trustworthy and reliable partner in customers’ daily lives.
Chairman of PChome Online Inc.
Jan, Hung-Tze
A Word from the CEO
After the pandemic restrictions were lifted in 2023, there were noticeable changes in the lifestyle and consumption behavior of the people. Consumers began to spend more time outdoors, shop in physical stores, and increase their spending on leisure and travel activities. This had a great impact on the e-commerce industry. In addition, the demand for consumer electronics became saturated after the pandemic, and suppressed the growth momentum of the overall e-commerce industry. PChome adheres to the core philosophy of “customers first, becoming a part of daily life.” Besides actively launching innovative and differentiated services through strategic cooperation and alliances, PChome also continues to expand the application scenarios of its FinTech services, enhancing the diversity of cross-border e-commerce products and breadth of services to expand the synergistic integration of subsidiary resources. Additionally, we launched the “Linkou A7 Intelligent Logistics Park,” the industry-first smart logistics park in Taiwan that introduces AI technology and fully automated warehousing equipment at the highest density. Meanwhile, we are expanding third-party warehousing services to provide the e-commerce industry with high-quality warehousing enablement solutions.
Continuously Launching Innovative Services to Reshape Customers’ Brand Awareness
PChome actively optimizes the user experience and continues to launch innovative and differentiated services through strategic alliances, in hopes of bringing perceivable changes to consumers. In 2023, we partnered with SHIFU to jointly launch the offline “PChome 24 Shopping Installation Service Center,” allied with Chunghwa Telecom to launch the “Hami Point redemption plan,” and cooperated with its subsidiary e-Insure Inc. to launch the “Home Appliance Safety Insurance,” the first such service provided by a large-scale comprehensive e-commerce company, which allows consumers to extend their warranty by up to three years. We also cooperated with 7-ELEVEN to provide consumers with the “large packaging material pickup service” with more flexible and convenient delivery options. PChome Express has expanded its scope of delivery services to cover 68 administrative districts in 9 counties and cities in Northern, Central, and Southern Taiwan, and continues to optimize the logistics service experience. We revised the brand image of BOXMAN to reshape consumers’ brand awareness, and launched BOXMAN toilet paper, implanting the brand image into consumers’ daily lives. At the same time, we are accelerating continuous reforms, such as optimizing mobile app user experience and redesigning the user interface, focusing on elevating the consumers’ journey from browsing, searching, shopping, to checkout, making “perceivable changes” in the user experience.
Insisting on Responsible and Sustainable Product Selection to Deliver Sustainability and Circular Value
As Taiwan’s first large-scale comprehensive e-commerce platform to implement the concept of “green shopping,” PChome continues to optimize product selection strategies and the scale of green products. We partnered with the Small and Medium Enterprise Administration and the Ministry of Economic Affairs to promote Buying Power Store, which has supported more than 50 local high-quality social innovation brands in Taiwan. We opened a green product hall in 2023, and the two halls currently have gathered more than 10,000 sustainable products with organic certification, natural, plastic reduction, and energy-saving/water saving labels. We hope to jointly create economies of scale for green products together with consumers and suppliers, and embrace a new lifestyle of green and sustainable consumption.
Creating a Green Shopping Living Circle and Realizing a Green Circular Economy
As Taiwan’s leading online shopping brand, PChome adheres to the United Nations Sustainable Development Goals (SDGs) and adopts the “Green Shopping Living Circle” as the sustainable development strategy. We use the consumer shopping journey as the core concept. From the “Green Packaging” and “Green Payment” during consumption, to “Green Warehousing” and “Green Logistics” for delivering products to consumers, we are committed to providing consumers with high-quality services while also aiming to maintain environmental sustainability. We thus launched the following four major action policies to realize our commitment to sustainability. First, we continue optimizing packaging material strategies actively in coordination with the “Online Shopping Packaging Reduction Program” launched by the Ministry of Environment. Since paper boxes were redesigned in August 2023, paper boxes are all made of more than 90% recycled pulp. The printed area was reduced from 50% to 40% of the total box surface area. The tape is also made of eco-friendly materials instead of PVC, and includes a 25% blend of recycled plastic materials. It has been awarded the Ministry of Environment Online Shopping Packaging Reduction Label 2.0. At the same time, the most suitable paper box for shipping is recommended by the box number recommendation system. We began combining products from different warehouses into the same box, and established the optimal shipping warehouse distribution system and the multi-warehouse consolidation system. We increased the proportion of shipments using the original box to gradually reach the goal of “changing large boxes into small boxes, and combining two boxes into one box.” Second, all floors of the “Linkou A7 Intelligent Logistics Park” began operation in October 2023. It reduces energy consumption and manpower and achieves a lights-off warehouse with the help of AGVs through automation and AI, order picking optimization, inventory pre-positioning, storage location allocation optimization, smart picking, and packaging optimization. Third, through the energy management strategy, PChome Express shares fleets with peers, in order to effectively utilize the remaining transportation capacity of peers without increasing the number of electric vehicles, leading the formation of a green distribution network. A Word from the CEO Fourth, we continue to promote paperless operations and actively introduce electronic contracts with suppliers. At present, nearly 60% of current suppliers have signed new contracts online, successfully reducing paper consumption and environmental impacts.
As the world becomes growingly concerned about sustainability, PChome, as the leading e-commerce brand in Taiwan, will continue to actively support ESG initiatives. Adhering to the core concept of “customers first, becoming a part of daily life,” we are actively seeking groundbreaking cooperation opportunities, and are committed to making consumers, suppliers, partners, and the general public feel a “perceivable change” toward sustainability.
CEO of PChome Online Inc.
Yu-Shan Chang
