Internal Carbon Pricing (ICP)

To strengthen internal carbon reduction management, the Company (the parent company) has established an Internal Carbon Pricing (ICP) mechanism starting in 2025. The ICP is based on the initial carbon fee set by Taiwan’s Ministry of Environment, at NT$300 per metric ton of CO₂e. In the initial stage, the ICP is mainly applied to converting electricity consumption at each retail store into an internal carbon cost, thereby establishing the concept of carbon pricing as part of operating costs. This mechanism aims to support future compliance with carbon reduction management goals. The Company will also evaluate incorporating ICP into internal management reports to track changes in greenhouse gas emissions.

In addition, greenhouse gas inventory self-management for subsidiaries included in the consolidated financial statements will be the focus of the next phase of emission reduction actions. A trial implementation is planned to begin in 2026, covering subsidiaries in Taiwan and Mainland China. The parent company’s operating headquarters will calculate internal carbon costs based on greenhouse gas emissions from each operating site, thereby continuously strengthening internal emission reduction efforts.