A Green Partner for the Environment
ESG
Green Operations Management
Environmental Management Policy and Framework
At PChome, we are fully aware that although e-commerce brings about more convenience and efficiency in our lives, it also brings about challenges and impacts for the natural environment. In addition to promoting environmental protection for external entities, PChome is dedicated to green operations management by adhering to eco-friendly principles. The Company has established a concrete environmental management structure. The ESG team is in charge of organizing and formulating relevant policies and leading all departments in the joint effort of energy and resource management. At PChome, we construct appropriate environmental management systems by adhering to industry-specific environmental management regulations while continuously implementing energy-efficient and low-carbon solutions to reduce the environmental footprint of the headquarter and the warehouses. We also regularly evaluate the performance of energy, water and waste management. At the same time, PChome constantly provides employees with awareness promotion and training on sustainability and encourages our suppliers and partners to join in the ranks of environmental friendliness to fulfill our responsibilities to protect the Earth.
Energy Management
At PChome, we have constantly reviewed and revised our energy use over the years by promoting carbon management-related measures. By calculating the exact amount of carbon and greenhouse gases produced, we can devise improvement strategies and achieve carbon emission reduction goals. To showcase our dedication toward environmental protection and to reduce the impacts of our operations in contributing to climate change, we have taken measures such as incorporating a green logistics fleet, replacing traditional lighting with LED lights and automatic light sensors. In 2022, we replaced 80 units of T8 traditional lighting in our offices with LED lighting, which could save about 8,176 kWh of electricity in one year or the equivalent of 4.16 metric tons of CO2 e.
Our operations’ main sources of electricity consumption are lighting and air-conditioning at our warehouses and offices, as well as fuel consumption in logistics vehicles. Among which, the fuel consumption of office vehicles and electricity usage at offices are included in the calculation since 2022. Our overall energy consumption and GHG emission levels in 2021 were higher than those in 2020 due to increased deliveries and distances following the opening of our Taoyuan, Taichung, and Tainan logistics centers.
Note 1: Data calculated in accordance with the Ministry of Economic Affairs Bureau of Energy’s conversion standards, i.e., 8,400 kcal per liter of diesel, 7,800 kcal per liter of gas, and 3,600 kJ per unit of electricity; 1 kcal = 4,186J
Note 2: In 2022, a part of the product flow was outsourced, causing a reduction in diesel consumption. On the other hand, increased delivery range and purchase of new vehicles caused fuel consumption to increase.
Note 3: PChome uses non-renewable energy, and electricity comes from the grid. Therefore, the percentage of grid electricity (%) = electricity consumption / total consumption * 100.
Note 4: Energy consumption and energy intensity have both increased as compared to the two previous years due to the opening of new centers in 2021 and the inclusion of energy use at offices in the calculation in 2022.
Note 1: Greenhouse gas emissions are calculated in accordance with the operational control approach, i.e., activity data x emission factor x GWP. Emission factors are taken from the EPA’s Greenhouse Gas Emission Factor Management Table Version 6.0.4, and the Global Warming Potentials (GWPs) are taken from the IPCC Fourth Assessment Report. Greenhouse gases include CO2, CH4, and N2O.
Note 2: In 2022, a part of the product flow was outsourced, causing a reduction in emission from diesel. On the other hand, increased delivery range and purchase of new vehicles caused emission from fuel to increase.
Note 3: The data in Scope 1 is calculated in accordance with the emission factors listed in the EPA’s Greenhouse Gas Emission Factor Management Table Version 6.0.4, in which gas =2.361 kg CO2e/L and diesel = 2.650 kg CO2e/L. The data in Scope 2 is calculated in accordance with the Bureau of Energy’s grid emission factor announced in the current or previous year.
Note 4: Total emissions and emission intensity have both increased as compared to the two previous years due to the opening of new centers in 2021 and the inclusion of energy use at offices in the calculation in 2022
Water Resources Management
The stable operation of a company depends on its water supply. Any interruption or price hike in water supply in a region will cause operating costs to go up. Although PChome is not a water-intensive company, water restriction may still cause shutdowns and affect operations. PChome’s source of water is tap water, and is mainly used for everyday purposes. PChome warehouses are located in Taoyuan City and rely on water distributed from the Shimen Reservoir while our office in Taipei relies on the Feitsui Reservoir. Even though neither region is at a high risk of water shortage, Taiwan has been facing drought issues due to decreased rainfall over the past few years, thus increasing public awareness around saving water resources. PChome has also actively adopted water risk management and adjustment measures.
In response to the potential water shortage crisis caused by climate change risks, PChome has visualized the education on water conservation to establish the water conservation habits and awareness in employees while developing mechanisms to ensure a stable supply of water for operational use, such as recycling water used for daily activities, maintaining pipes to reduce leakage, and deploying emergency water trucks during water shortages. In addition, we regularly inspect the water level in the tanks of buildings to maintain the normal
operation of water pumps to ensure a stable backup water resource.
Note 1: The tap water used by PChome is provided by a third-party company.
Note 2: According to the open data of the World Water Institute, PChome’s water sources in Taiwan are not located in water-stressed regions
Note 3: Total water consumption and intensity have both increased as compared to the two previous years due to the opening of new centers in 2021 and the inclusion of water consumption at offices in the calculation in 2022.
Waste Management
As an online shopping platform, PChome’s resource utilization is fairly simple as we do not generate hazardous waste, according to EPA regulations on waste. PChome outsources its general waste transport and incineration operations. Recyclable resources are mainly paper (boxes), while other recyclable items include PE wraps, various iron items, and plastic bottles, which are all recycled by qualified companies. In order to reduce waste and create circular economy, PChome not only develops environmentally friendly packaging and encourages consumers to use recyclable boxes to improve resource usage but also works with upstream suppliers for the recycling and reuse of paper boxes, logistics boxes and pallets, thus integrating the upstream and downstream stakeholders and dedicating ourselves to the recycling and reuse of resources, turning waste into new recycled materials.
In 2022, the waste disposal amount of the headquarter was included in the calculation in addition to the warehouses. The total amount of general waste incinerated was estimated to be 301.2 metric tons while the recycled waste weighed 1,388.9 metric tons. Therefore, the total weight of waste in 2022 was 1,690.1 metric tons, and the recycling rate reached 82.2%. Among which, the total weight of waste from warehouses has decreased over the years as a result of education on waste reduction. PChome expects to achieve effective waste management through concurrent waste reduction and resource recycling and reuse, as well as to instill resource recycling habits into every member of the PChome family.
Note 1: PChome does not produce hazardous waste and all waste is handled off site.
Note 2: The weight of office waste has been included in the calculation since 2022, causing the total weight of waste to increase for that year.
