Sustainable Packaging Management

Supporting the SDGs Goals

SDGs

Goal 12:

Sustainable consumption and production patterns.

Goal 13:

Take urgent action to combat climate change and its impacts.

Goal 14:

Use the oceans, seas and marine resources.

Goal and Performance Highlights

Performance Highlights 2025

Reduced packaging usage by a total of

19.72

KG

Reduced packaging costs by approximately

10%–50%.

Reduced transportation costs by up to

11%-13%

per round.

Total of 2,339,783 eco-friendly bags were used, containing

30%

recycled materials.

Reduced the use of single-use plastic cups by

75,610

cups.

ESG Performance Data

Challenges and Opportunities

Commitment and Goals

The Company recognizes the role and responsibility to reduce environmental impacts arising from product packaging. Therefore, a Sustainable Packaging Policy (Packaging Commitment) has been established as a framework to guide the development, design, and selection of packaging in alignment with resource efficiency and Circular Economy principles.

Packaging for products under the Company’s House Brand is required to follow the concepts of Reduce, Reuse, Recycle, and Compostable. The Company aims to minimize resource use at the source, increase the proportion of reusable and recyclable materials, and promote the selection of biodegradable materials.

This approach supports efficient resource utilization, reduces waste generation, and minimizes environmental impacts throughout the value chain.

Management Approach and Value Creation

Management Approach

The Company promotes the selection of packaging that reduces environmental impacts and focuses on sustainable packaging development and design. Collaboration with suppliers and manufacturers is carried out in accordance with the 3Rs concept (Reduce, Reuse, Recycle) and Circular Economy principles to support efficient resource management and minimize long-term environmental impacts.

Implementation is driven through the establishment of packaging standards, appropriate material assessment and selection, collaboration with manufacturers and suppliers to develop environmentally friendly solutions, and continuous monitoring and performance review to ensure alignment with established policies and targets.

The Company has implemented the following packaging management as follow:

Programs to phase out single-use plastic packaging. “Let’s Say Goodbye to Single-Use Plastic” program, the Company aims to phase out and reduce the use of single-use plastics in operations and service processes. The initiative encourages participation from customers and employees in choosing environmentally friendly packaging alternatives, thereby reducing packaging waste and promoting efficient and sustainable resource use.
Programs to increase the use of recyclable packaging The Project of Closed Loop Collaboration for Circularity, used plastic collected from stores is recycled into environmentally friendly plastic bags. This process utilizes high-quality recycled plastic resin innovation from SCGC Green Polymer, increasing the use of circular resources, reducing virgin material consumption, and reduce environmental benefits.
Programs to ensure that recyclable packaging is actually recycled. The Company places importance on packaging research and development by prioritizing biodegradable materials, optimizing designs to reduce material usage while maintaining strength and functionality, and improving packaging size and format to minimize resource use throughout the product life cycle. In addition, collaboration has been established with product manufacturers under the “Verno Saves the World” to support waste reduction, pollution reduction, and lower energy and resource consumption in industrial production processes.

House Brand Packaging Usage Data in 2025

Plastic Packaging

Total Plastic packaging (Tons)	Packaging made from recycled materials (percentage of total weight)	Recyclable plastic packaging (percentage of total weight)	Compostable Packaging (percentage of total weight)	Data coverage (percentage of product cots under the company’s control)	Target in 2025 (Ton)
1,131.83	-	69.06	0.68	100	900

Non-plastic packaging

Non-plastic packaging materials (Tons)	Total Weight of used packaging (Tons)	Recycled and/or Certified Material (% of total weight)	Data coverage (percentage of House Brand product)	Target in 2025 (%)
Wood/Paper fiber packaging	11,849.31	64.69	100	70
Metal (e.g. steel or aluminum) packaging	77.76	1.69	100	-
Glass packaging	-	-	-	-

ESG In Action