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Corporate Governance

    I. Communication methods between independent directors, internal audit supervisors and accountants
      1. The company's certified accountants will explain to the independent directors in the audit committee every year when issuing the audit or review results in the first quarter, second quarter, third quarter and annual financial report, as well as other communication matters required by relevant laws and regulations. , if there are any special circumstances, they will be reported to the members of the Audit Committee immediately.
      2. The internal audit manager shall attend the audit committee every quarter to report on the audit work as required, and communicate with the independent directors through the audit committee. In addition, a report is made on the internal audit execution and internal control operation of the convenience store. The internal audit report and the improvement progress of deficiencies are sent to the independent directors via email every month for review; in addition, if there are special circumstances, they will be reported to the independent directors immediately. Independent Directors' Report.
      3. Convene independent meetings with independent directors, accountants, and internal audit supervisors at least once a year (without the presence of management) to discuss the completed external audit opinions of the internal audit supervisors and accountants. In normal times, the internal audit supervisor and accountants may directly communicate with independent directors as necessary. Contact and communication are good.
    II. Communication Summary for Independent Directors and Head of Audit Division in the most recent two years：
    Audit Committee meeting date
    Communication method
    Communication highlights
    Communication results
    2023/08/04
    Meeting
    1. Reports on the internal audit progress
    2. Amendment to the Internal Control System
    No opinion
    2023/11/06
    Meeting
    1. Reports on the internal audit progress
    2. Amendment to the Internal Control System
    No opinion
    2023/12/05
    Meeting
    1. Reports on the internal audit progress
    No opinion
    2023/12/20
    Communication
    meeting
    1. 2024 risk assessment and audit plan report
    No opinion
    2023/12/20
    Meeting
    1. Reports on the internal audit progress
    2.The 2024 audit plan
    No opinion
    2024/1/18
    Meeting
    1. Reports on the internal audit progress
    No opinion
    2024/2/29
    Meeting
    1. Reports on the internal audit progress
    No opinion
    2024/03/12
    Meeting
    1. Reports on the internal audit progress
    2. The 2023 Internal Control System Statement
    No opinion
    2024/05/08
    Meeting
    1. Reports on the internal audit progress
    No opinion
    2024/08/07
    Meeting
    1. Reports on the internal audit progress
    2. Amendment to the Internal Control System
    No opinion
    2024/11/06
    Meeting
    1. Reports on the internal audit progress
    2. Establishment and revisions to the internal control system
    No opinion
    2024/12/18
    Meeting
    1. Reports on the internal audit progress
    2. The 2025 audit plan
    No opinion
    2024/12/18
    Communication meeting
    1. 2025 risk assessment and audit plan report
    No opinion
    2025/03/10
    Meeting
    1. Reports on the internal audit progress
    2. Passed the revision of the company's internal control system and issuance of the 2024 Internal Control System Statement.
    No opinion
    2025/05/07
    Meeting
    1. Reports on the internal audit progress
    No opinion
    III. Communication Summary for Independent Directors and Accountants in the most recent two years：
    Audit Committee meeting date
    Communication highlights
    Communication results
    2023/08/04
    Accountants reported the review result of the semi-annual financial statements of 2023
    No opinion
    2023/11/06
    Accountants reported the review result of the financial statements for the first nine months of 2023
    No opinion
    2024/03/12
    Accountants reported the audit result on the 2023 financial statements
    No opinion
    2024/05/08
    Accountants reported review results for financial statements of 2024 Q1
    No opinion
    2024/08/07
    Accountants reported review results for financial statements of 2024 Q2
    No opinion
    2024/11/06
    Accountants reported review results for financial statements of 2024 Q3
    No opinion
    2025/03/10
    Accountants reported the audit result on the 2024 financial statements
    No opinion
    2025/05/07
    Accountants reported review results for financial statements of 2025 Q1
    No opinion
Evaluation item Operations Deviations from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
Yes No Summary
I. Does the company establish and disclose its corporate governance principles in accordance with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies? In order to establish a good corporate governance system, the Company's Board of Directors approved the establishment of the "Corporate Governance Best Practice Principles" on March 24, 2015. The latest revision was approved by the Board of Directors on August 4, 2023 and disclosed on the Market Observation Post System (MOPS) and the Company's website. Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
II. Shareholding structure and shareholders' equity
(1.) Has the company implemented a set of internal procedures to process shareholders' suggestions, queries, disputes and litigations? In addition to spokesperson or deputy spokesperson, the Company also has a share administration agency, SinoPac Securities Corp., to handle shareholder-related problems and suggestions. The Company engages a lawyer or legal personnel to handle legal affairs. Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
(2.) Does the company have a list of major shareholders that have actual control over the Company and a list of ultimate owners of those major shareholders? The Company regularly compiles a list of major shareholders that have actual control over the Company and a list of ultimate owners of those major shareholders. Current major shareholders are mostly Board members or financial institutions, so the Company is able to compile a list of the major shareholders or their ultimate owners that have actual control over the Company at any time, ensuring the stability of the Company’s business policy. Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
(3.) Has the company established and implemented risk management and firewalls in affiliated companies? The responsibilities of asset and financial management between the Company and its affiliated companies are properly delineated. Relevant regulations such as "Subsidiary Management and Affiliated Enterprise Financial Management Regulations," "Procedures for Acquisition or Disposal of Assets," "Endorsement and Guarantee Operating Regulations," and "Operating Procedures for Granting Loans" have been formulated. In addition, on December 18, 2024, the Board of Directors approved the establishment of "Regulations Governing Financial and Business Matters among Related Parties," which prescribes that all major transactions with related parties must be submitted to the Board of Directors for approval before they can be carried out, and that relevant information shall be submitted to the shareholders' meeting, etc., in order to implement risk control and firewall mechanisms for related companies. Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
(4.) Does the Company have internal regulations in place to prevent its people from trading securities based on information yet to be public on the market? The Company established Procedures for Handling Material Inside Information, Ethical Corporate Management Best Practice Principles, and Procedures for Ethical Corporate Management and Code of Conduct. Insiders, quasi-insiders, and information recipients are required to strictly abide by the Securities and Exchange Act, and may not use undisclosed information to engage in insider trading; they are also prohibited from leaking inside information to others, in order to prevent others from using the undisclosed information to engage in insider trading.
The Company also established Corporate Governance Best Practice Principles on March 24, 2015. Amendments were approved by the Board of Directors on March 23, 2022 and August 4, 2023. The regulations prohibit insiders from using undisclosed information to trade negotiable securities, and from trading the Company's stocks during the lock-up period, which is within 30 days before annual financial statements are announced and within 15 days before quarterly financial statements are announced. Furthermore, relevant information is provided to insiders before the lock-up period to ensure that they comply with laws and regulations for preventing insider trading.		 Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
III. Composition and duties of the Board of Directors
(1.) Has the Board of Directors established a diversity policy, concrete management goals, and implemented the policy? 1. The Company's Corporate Governance Best Practice Principles set forth the policy that the diversity of Board members must be considered, and suitable diversity guidelines must be established based on the Company's operations, business patterns, and development needs, in order to implement corporate governance and facilitate the healthy development of Board composition and structure. The guidelines should include but are not limited to basic qualifications and values (gender, age, nationality, and culture) and professional knowledge and skills (e.g., law, accounting, industry, finance, marketing, or technology), and Board members are required to have the knowledge, skills, and literacy needed to perform their duties.
2. The Company currently has 15 directors, including 5 independent directors, who account for one-third of all directors. The board members have a professional background in law, industry, accounting, and marketing, and also have a wide range of professional abilities that complement each other, including business management, leadership, decision-making, business judgment, crisis management, accounting and financial analysis abilities, industry knowledge, and international market perspectives.
Please see Table 1 for the diversity of the Company’s Board of Directors. 		Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
(2.) Apart from the Remuneration Committee and Audit Committee, has the financial holding company assembled other functional committees at its own discretion? The Company has not established any other functional committees and will evaluate the establishment of such committees as needed in the future. The Company has not established any other functional committees and complies with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies in all other matters.
(3.) Does the Company have guidelines and methods for evaluating Board performance, conduct annual performance evaluations, submit performance evaluation results to the Board, and use the results as a basis for determining the remuneration and nomination of individual directors? The Company’s Board of Directors approved the Rules for Board of Directors Performance Assessments on November 8, 2019, and began conducting self-performance evaluations in 2019, using questionnaires for self-evaluation of the Board of Directors, Board members, and functional committees (including the Audit Committee and Remuneration Committee). Statistical results from the questionnaires are reported to the Board of Directors as the basis of review and improvement. Overall Board performance evaluation results are used as the basis for selecting or nominating directors (including independent directors), and the performance evaluation results of individual Board members are used as the basis for determining their remuneration.
For the measurement items of the Company's internal and external performance evaluations of the Board of Directors, please refer to the implementation status of board performance evaluations.
In accordance with the "Rules for Board of Directors Performance Assessments," the Company shall have an external evaluation of the Board of Directors performed by an external professional independent institution, or a team of external experts and scholars at least once every three years. The most recent external evaluation was carried out in November 2023, and the evaluation results were submitted to the Company's Audit Committee, Remuneration and Compensation Committee, and Board of Directors on March 12, 2024.
The Company completed the 2024 performance evaluation of the Board of Directors and functional committees in January 2025. The evaluation period is from November 1, 2023 to October 31, 2024, and the evaluation results will be submitted to the Company's Audit Committee, Remuneration and Compensation Committee, and Board of Directors on March 10, 2025. 		Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
(4.) Does the company conduct regular assessments on the independence of its financial statement auditors? 1. The Company evaluates the independence and competence of the accountants every year after referencing the AQIs, and submits results to the Audit Committee and Board of Directors for approval, in order to ensure that financial statements are trustworthy. The accountant independence evaluation was approved by the Company's Audit Committee and Board of Directors on December 18, 2024. After evaluation, the Company determined that CPAs Tsai, Yi-Tai and Andy Chang of PwC Taiwan meet the Company's independence standards and are qualified to serve as the Company's accountants. Please refer to Attachment 2 for the Company's independence evaluation standards.
2. The Company's accountants provide an "Accountant's Statement and Independence Evaluation Report" every year. The rotation of certifying accountants at PCSC also adheres to relevant regulations. 		Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
IV. Does the TWSE/TPEx-listed company have a suitable number of competent corporate governance personnel? Has it appointed a chief governance officer responsible for corporate governance matters (including but not limited to providing information for directors and supervisors to perform their duties, assisting directors and supervisors with regulatory compliance, handling matters related to Board meetings and shareholders’ meetings, and preparing meeting minutes for Board meetings and shareholders’ meetings)? 1. The company's board of directors passed a resolution on March 22, 2021 appointing Li Chien-Hsing, Senior VP of the Administration Division, as the chief governance officer (CGO). The board of directors adopted the resolution to appoint Manager Hsu Tsung-Chi as the Company's corporate governance officer on March 13, 2023. Both served in managerial positions of accounting, financial, stock affairs, and corporate governance affairs units of public companies for three years and above. The CGO is mainly responsible for corporate governance related matters, including handling matters related to the board of directors and shareholders meeting in accordance with the law, preparing the minutes of the board of directors and shareholders meeting, assisting directors in appointment and continuing education, providing directors with necessary information for business execution, assisting directors in complying with laws and various other corporate governance-related matters.
2. 2024 business implementation status:
(1)Assist in providing independent directors and directors with the data they need to perform their duties and arrange continuing education for directors
(2)Assist the compliance of proceedings and resolutions of Board meetings, Audit Committee meetings, and Remuneration Committee meetings, and shareholders' meetings
(3)Maintaining investor relations and other matters
(4)For other matters, please refer to the Company's website.
3. The Company made arrangements for the corporate governance supervisor to complete courses in accordance with the “Directions for Implementation of Continuing Education for Directors of TWSE/TPEx Listed Companies,” see Table 3 for continuing education of the corporate governance supervisor in 2024. 		Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
V. Does the company establish a communication channel and build a designated section on its website for stakeholders (including but not limited to shareholders, employees, customers, and suppliers), and properly respond to corporate social responsibility issues of concern to the stakeholders? The Company has established a stakeholders section on its website and provided the telephone and mailbox of contact persons. The Company also has a share administration agency, SinoPac Securities Corp., to handle shareholder-related problems and suggestions. Any suggestions or problems can be directed to applicable personnel, and the Company will immediately communicate with stakeholders. We therefore ensure an uninterrupted communication channel. Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
VI. Does the company designate a professional shareholder service agency to deal with shareholder affairs? The Company has a share administration agency, SinoPac Securities Corp., to handle shareholder affairs. Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
VII. Disclosure of information
(1.) Has the company established a website that discloses financial, business, and corporate governance-related information? Information on corporate governance and financial operations of the Company is disclosed on the MOPS in accordance with the Taipei Exchange List of Matters to be Handled by Listed Companies. Information on corporate governance and financial operation is also published on the company web. Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
(2.) Does the company have other information disclosure channels (e.g., maintaining an English-language website, appointing responsible people to handle information collection and disclosure, creating a spokesperson system, webcasting investor conference on the company website)? 1. The Company has set up an English-language website and appointed the management department to handle information collection and disclosure and update the information on company website whenever necessary to facilitate public inquiries.
2. The Company has built a complete spokesperson system as required by law and appointed the Executive Vice President Wu Sheng-Fu as the spokesperson and Deputy Chief Operating Officer Huang Jiun-Yih as deputy spokesperson.
3. Information in presentations given during investor conferences that the Company organizes or participates in each year is announced and available for access on the MOPS and company website. 		Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
(3.) Does the company announce and report annual financial statements within two months after the end of each fiscal year, and announce and report Q1, Q2, and Q3 financial statements, as well as monthly operating status before the prescribed time limit? The Company does not announce and report annual financial statements within two months after the end of each fiscal year, but will evaluate its feasibility when necessary.
The Company's Q1, Q2, and Q3 financial statements, as well as monthly operating results, are all submitted before the prescribed time limit in accordance with the law, and the English version of the interim financial report will be submitted starting from 2024. 		Deviation from Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies.
VIII. Does the company have other crucial information that facilitates understanding the operation status of its corporate governance (including but not limited to situations regarding employee rights and interests, employee care, investor relations, the rights and interests of stakeholders, the continuing education of directors and supervisors, the implementation status of risk management policies and risk measuring standards, the implementation status of customer policies, the situation concerning the purchase of accountability insurance for directors and supervisors, and donations made to public interest groups)? (1.) Employee rights: In addition to establishing a Staff Welfare Committee and implementing a pension system stipulated by law, the Company has also purchased group insurance for its employees while maintaining an uninterrupted communication channel to boost labor-management relation and secure employee rights.
(2.) Concern for employees: The Company has established annual physical examination operating guidelines that provide regular medical check-up services for employees. At the same time, the Company has also built a welfare platform to expand the scope of its affiliated stores and provide a wide range of special offers for its employees and franchisers.
(3.) Investor relations: The Company faithfully discloses information on the MOPS in accordance with laws and regulations to protect the rights and interests of investors. Investor mailbox and contact information are provided on the Company's website to maintain a positively harmonious relation with enterprises and shareholders.
(4.) The rights and interests of stakeholders: The Company has established a stakeholders section on its website and it also has a share administration agency, SinoPac Securities Corp., to handle shareholder-related problems and suggestions. The Company engages a lawyer or legal personnel to handle legal affairs, thereby protecting the rights and interests of its stakeholders.
(5.) Status of implementation of customer policies: The Company has a service hotline for consumers in place. Dedicated personnel is timely available to answer questions that consumers or customers may have about our product. The sales department mailbox is also provided on the company's website, providing consumers or customers with an uninterrupted communication channel.
(6.) Status of purchase of liability insurance by the company for directors: The Company has purchased liability insurance for the company's directors.
(7.) The progress of continuing education for directors: Please see Table 4 for the progress of continuing education for directors.
Consistent with the Corporate Governance Best-Practice Principles for TWSE/TPEx Listed Companies
IX. Please describe improvement situations, priority for improvement, and measures based on the most recent corporate governance evaluation results published by the Corporate Governance Center of Taiwan Stock Exchange.
  1. 1. Based on the results of the 10th Corporate Governance Evaluation, the following items were implemented and improved in 2024:
    1. (1) The Company formulated regulations governing financial and business matters with related parties, which were approved by the Board of Directors.
    2. (2) The Company elected one director of a different gender in the 2024 board election pursuant to the policy of board diversity.
    3. (3) After the re-election of the Company's Board of Directors, independent directors now account for one-third of the board seats.
    4. (4) The Company raised the risk management supervision to the Audit Committee level.
    5. (5) The Company disclosed the English version of its interim financial report within two months after the deadline for filing the Chinese version interim financial report.
  2. 2. In response to the revision of the 11th and 12th Corporate Governance Evaluation indicators, the Company set the priority to strengthen the following matters and measures:
    1. (1) The Company has established a policy to disclose the link between senior management compensation and ESG-related performance evaluations.
    2. (2) The Sustainability Report prepared by the Company was submitted to the Board of Directors for approval before publication.
    3. (3) The Company expects to hold its annual general meeting before the end of May.
    4. (4) The Company plans to elevate the Sustainable Development Committee to a functional committee under the purview of the Board of Directors.
  3. 3. We will continue to evaluate the feasibility of future improvements in items that we did not receive a score in.
Board diversity and independence:
(1) Board diversity:
[Board Diversity Policy]
  The Company's Corporate Governance Best Practice Principles set forth the policy that the diversity of Board members must be considered, and suitable diversity guidelines must be established based on the Company's operations, business patterns, and development needs, in order to implement corporate governance and facilitate the healthy development of Board composition and structure. The guidelines should include but are not limited to basic qualifications and values (gender, age, nationality, and culture) and professional knowledge and skills (e.g., law, accounting, industry, finance, marketing, or technology), and Board members are required to have the knowledge, skills, and literacy needed to perform their duties.
[Specific Management Goals and Attainment]
Board diversity management goals Current progress
Appoint at least three independent directors Achieved
Directors with company management experience should account for more than one-third of all directors Achieved
Have at least one director of a different gender Achieved
Female directors account for at least one-third of all directors Not completed
Directors who concurrently serve as managers should not exceed one-third of all directors Achieved
At least one director must have passed the national qualification examination required for the Company's business and received a certificate. For example: Information, law, accounting or finance Achieved
Independent directors who have served for less than nine consecutive years shall account for half of all independent directors. Achieved
  The Company's Board members all have the knowledge, skills, and literacies needed to perform their duties. The Company continues to arrange a variety of continuing education courses for Board members, in order to improve the quality of their decisions, their supervision ability, and further strengthen the roles and powers of the Board of Directors. The Company currently has 15 board members, including 5 independent directors, who have a professional background in law, industry, accounting, and marketing, and also have a wide range of professional abilities that complement each other, including business management, leadership, decision-making, business judgment, crisis management, accounting and financial analysis abilities, industry knowledge, and international market perspectives. Among Board members, two directors are concurrently managers of the Company, meaning that 13% of directors are also employees. The five independent directors account for 33.3% of the board seats, four of which passed the national qualification examination and received certificates. Furthermore, independent directors who hold office for less than nine years account for half of all independent directors. The ages of directors is distributed in a wide range between 45 and 80 years old. For the selection of directors, FamilyMart places priority on the professional background and relevant experience required for its operation and the convenience store industry. Therefore, the proportion of female directors among the elected directors has yet to reach one-third. In the future, the Company will continue to work towards the goal of achieving diversified board members. The Company will proactively seek female directors with relevant professional backgrounds, experience and qualifications to achieve gender diversity of board members.
(2) Board independence:
  The Company currently has 5 independent directors (accounting for 33% of Board members). Board members have considerable management experience and a professional background in finance, accounting, and law. There are no violations of Article 26-3, Paragraphs 3 and 4 of the Securities and Exchange Act, in order to ensure Board independence.
(Attached Table 1) Board diversification
Core items of diversification / Name of director Gender Professional Background (Education) Financial accounting Legal affairs Marketing strategy Business management Leadership and decision making Industry knowledge and business judgment Crisis management and international market perspective
Yeh Jung-Ting Male Marketing and Logistics Management
Kato Takeshiu Male Law
Pan Jin-Tin Male Business policy
Chang Ren-Tun Male Public administration
Hsueh Tung-Tu Male Corporate management
Yamaguchi Kazuki Male Engineering
Seto Ryuichi Male Humanities
Nathan Hsu Male Law
Hwang, Albert Chen-Huei Male Law
Yeh Feng Jung Male Financial
Lee Yen-Sung Male Financial accounting
Weng Chien Male Financial law
DA-HO YEN Male Law
Liou Chih-Poung Male Law
Lin Shiou-Ling Female Law
(Attached Table 2) An overview of the Company's independence assessment criteria is as follows:
Evaluation item Assessment result Compliance of independence
1. Does the CPA have a direct or material indirect relationship with the financial interests of the Company? No Yes
2. Does the CPA engage in financing or guarantee conduct with the Company or director(s) of the Company? No Yes
3. Does the CPA have a close business relationship and potential employment relationship with the Company? No Yes
4. Is the CPA potentially influenced by the business loss of the Company? No Yes
5. Is the CPA associated with contingent fees relating to auditing case(s) of the Company? No Yes
6. Does the CPA and audit team members presently or in the past two years have a position in the Company as a director, manager, or positions that have material influence on audit works? No Yes
7. Does the CPA provide the Company with non-audit service items that are likely to directly influence audit works? No Yes
8. Does the CPA mediate stocks or other securities issued by the Company? No Yes
9. Does the CPA act as the defender of the Company or represent the Company to coordinate conflicts with other third-party member(s)? No Yes
10. Is the CPA a relative of the Company's director, manager, or personnel with positions that have material influence on audit case(s)? No Yes
11. 1Did the CPA resign from his/her position as a practicing CPA to act as the Company's director, manager, or a position that have material influence on audit case(s)? No Yes
12. Does the CPA accept bribes or gifts of material value from the director(s) or manager(s) of the Company? No Yes
13. Does the CPA accept improper disclosure on financial statements or improper selection in the Company's accounting policies due to management coercion in the Company? No Yes
14. Is the CPA pressurized by the Company to improperly reduce audit works that should be performed? No Yes
15. Has the CPA provided auditing services to the Company for seven consecutive years? No Yes
(Attached Table 3) Continuing education of the corporate governance supervisor in 2024:
Name Date Organizer Course title Hours
Hsu Tsung-Chi 2024/05/15 Taiwan Corporate Governance Association How to Prevent Breach of Trust and Non-Arm's Length Transactions in Directors' Decision Making 3
2024/09/12 Taipei Exchange Seminar on Insider Equity of Over-the-Counter and Emerging-Stock Companies 3
2024/09/27 Taiwan Corporate Governance Association Understanding and Preventing Unlawful Infringements in the Workplace 3
2024/11/13 Taiwan Corporate Governance Association Latest ESG Sustainability Regulations and Practices 3
(Attached Table 4) Continuing education status of directors in 2024:
Name Date Organizer Course title Hours
Yeh Jung-ting, Pan Jin-Tin, Chang Ren-Tun, Hsueh Tung-Tu, Kiriyama Yoshifumi, Lee Yan-song, Yen Da-Ho 2024/05/15 Taiwan Corporate Governance Association How to Prevent Breach of Trust and Non-Arm's Length Transactions in Directors' Decision Making 3
Yeh Jung-ting, Kato Takesh, Pan Jin-Tin, Chang Ren-Tun, Hsueh Tung-Tu, Kiriyama Yoshifumi, Seto Ryuichi, Nathan Hsu, Hwang Albert Chen-Huei, Yeh Feng Jung, Lee Yan-song, Yen Da-Ho, Liou Chih-Poung, Lin Shiou-Ling 2024/11/13 Taiwan Corporate Governance Association Taiwan Corporate Governance Association 3
Kato Takesh 2024/08/29 Securities and Futures Institute Performance Evaluation of the Board of Directors 3
2024/09/06 Taiwan Corporate Governance Association Strategic Thinking on Group Corporate Restructuring 3
2024/11/22 Taiwan Corporate Governance Association An Introduction to Carbon and Energy Management of Listed/OTC-Traded Companies from the Perspective of Environmental Sustainability 3
Seto Ryuichi 2024/08/16 Accounting Research and Development Foundation ESG Development Trends and Related Regulations on Sustainability Disclosure 3
2024/09/06 Taiwan Corporate Governance Association Strategic Thinking on Group Corporate Restructuring 3
2024/12/09 Taipei Foundation of Finance Security Audit on Personal Data 3
Nathan Hsu 2024/05/30 Taiwan Academy of Banking and Finance Corporate Governance Lecture - Aligning with IFRS Sustainability Disclosure Standards S1 and S2 3
2024/07/23 Taiwan Academy of Banking and Finance Corporate Governance Lecture - Risk-Oriented Anti-money Laundering Trends and Influences 3
2024/10/15 Institute of Financial Law and Crime Prevention Workshop for Directors, Supervisors and Senior Executives - Discussion on the Influence of IFRS 17 on the Insurance Industry 3
Hwang Albert Chen-Huei 2024/10/09 Taiwan Academy of Banking and Finance Corporate Governance Lecture - Key Points of TNFD Assessment of Natural Risks in the Financial Industry 3
2024/10/30 Taiwan Corporate Governance Association The Latest Must-Know Trends in Corporate Governance Evaluation Indicators for Directors and Supervisors: Intellectual Property Management 3
2024/11/20 Taiwan Academy of Banking and Finance Corporate Governance Lecture - Analysis of the Trade Secret Protection Practice 3
Yeh Feng Jung 2024/10/01 Taiwan Corporate Governance Association How the Board of Directors Develops ESG Sustainable Governance Strategies 3
2024/11/01 Taiwan Academy of Banking and Finance Corporate Governance Lecture - Responsibilities of Corporates, Directors and Supervisors Based on the Securities and Exchange Act 3
2024/12/17 Taiwan Academy of Banking and Finance Corporate Governance Lecture - How Do Directors and Supervisors Oversee the Establishment and Implementation of a Sound Risk Management System 3
Weng Chien 2024/04/18 Taiwan Securities Association Cyber Threat Trends and Crisis Management 3
2024/05/16 Taiwan Securities Association Financial Consumer Protection Act and Treating Customers Fairly 3
2024/09/05 Institute of Financial Law and Crime Prevention AML/CFT Practice and Insider Trading Prevention Briefing 3
2024/09/30 Taiwan Stock Exchange Corporation Summit on Strengthening Taiwan Capital Market 3
Liou Chih-Poung 2024/10/21 Taiwan Corporate Governance Association Understanding Related-Party and Non-Arm's Length Transactions from Practical Cases 3
2024/05/16 Taiwan Corporate Governance Association Labor Dispute Prevention and Corporate Governance, Including the Gender Equity Education Act 3
Lin Shiou-Ling 2024/10/30 Taiwan Institute for Sustainable Energy Taiwan's Path in Just Transition for Harder-to-Abate Sectors 3
2024/10/30 Taiwan Institute for Sustainable Energy Sustainability Financial Disclosure 3
2024/11/27 Taiwan Corporate Governance Association Corporate Governance and Compliance: Insider Trading and Concerted Actions 3
2024/12/24 Taiwan Corporate Governance Association Corporate Risk Management Trends and Organizational Resilience 3
Implementation items Operations Deviations from the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies and reasons
Yes No Summary
I. Has the company established the governance framework for sustainable development and established a fully (or partially) dedicated sustainable development unit? Does the Board of Directors authorize the senior management to handle such matters and what is the status of supervision by the Board of Directors? In order to implement sustainable management, the Company established a dedicated "Sustainable Development Committee" led by the General Manager in 2015. Overseeing three major sustainability domains namely environment, social, and governance, the committee is composed of appropriate and competent supervisors and employees selected from each department of the Company, who meet on a quarterly basis for discussion. The committee consolidates cross-departmental resources, and devises action plans for corporate sustainability development. Each year, the committee will report to the Board of Directors on the implementation results of corporate sustainability. In the future, the Company will continue to improve its governance mechanism with the goal of elevating the level of the Sustainable Development Committee to a functional committee under the purview of the Board of Directors.
In addition to receiving regular reports from the Sustainable Development Committee and the management team on the implementation of sustainable development and related reports (including the sustainability report), the Board of Directors of the Company also evaluates the likelihood of success of the Company's strategies proposed by the Sustainable Development Committee and the management team. It must also regularly review the progress of the strategies and ensure that the management team makes adjustments when necessary. The 2023 Sustainability Report prepared by the Company in 2024 will be published after being discussed and approved by resolution in the first meeting of the 13th Board of Directors.
The Company's 2024 sustainability project results and 2025 Overall Plan have been submitted to the 13th Board of Directors for discussion. The aforementioned proposals include three major sustainability issues identified by the work groups, promotion goals, policies and action plans for the issues. 		Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
II. Does the company assess ESG risks associated with its operations based on the principle of materiality, and establish related risk management policies or strategies? The Company's Sustainability Development Committee and its work groups analyze and identify major topics based on the materiality principle of the Sustainability Report. The Board of Directors approved the Risk Management Policy to improve the Company’s risk management mechanisms and effectively assess and determine the Company’s risk capacity. Furthermore, in the face of material environmental, social and corporate governance risks related to the Company's operations, the committee and its work groups perform evaluation and formulate management strategies, covering various risks faced during the operation and management process, including food safety risks, labor/occupational safety risks, public security risks, financial risks, information security risks, infringement risks, operational risks, franchise risks and other risks. The Company also has a risk management and crisis management system to effectively respond to and control risks. We plan to establish and integrate group-level risk management mechanisms to respond to systemic risks at the group level, in order to enhance our overall risk response ability. This will enable the Company to maintain and control potential risks while pursuing growth, and ensure that the Company's strategic plans and goals are achieved.
Implementation status of risk management in 2024:
1. A food safety crisis response drill, which also covered the strengthening of affiliated companies' participation and exercise, was conducted on March 27, 2024 to ensure the supply chain could respond as a whole. We also conduct monthly management reviews on suppliers’ quality assurance audits and quality assurance announcements in the previous month to avoid food safety risks.
2. For public security risks, we provide education and training on on-site construction safety standards, carry out irregular supervision of construction sites, and renew construction vendors' operating standards. This will increase public environmental safety and response measures, and reduce the risk of property losses and opportunity losses for stores, the Company and non-specific persons.
3. The annual operations of the ISO45001 occupational safety management system (risk assessment on April 25, regulatory identification on April 30, internal audit on September 21) was implemented to improve the Company's occupational safety and health management efficiency, and reduce the possibility of labor and occupational safety risks occurring.
4. The annual internal assessment and external audits of personal data management was conducted and the Group's cybersecurity protection was continuously improved to prevent operational interruptions or risks of personal data leakage. Meanwhile, online courses on relevant management and protection knowledge are regularly conducted for all employees every year to enhance their protection awareness.
5. Implementation results are reported to the Board of Directors on an annual basis to improve risk management mechanisms. Risk management results and implementation status in 2024 were reported to the 3rd meeting of the 4th Audit Committee for discussion, before reported to the 3rd meeting of the 13th Board of Directors.
Material topics Risk assessment item Implementation of risk management
Environmental Operational and climate risks The Green Environment Team under the Company's Sustainable Development Committee compiles and inventory of climate-related quantified indicators each year. Starting in 2022, the Company compiles an inventory and assesses climate-related risks and opportunities according to the TCFD framework; 4 risks and 3 opportunities have been identified. We plan to periodically compile an inventory of GHG emissions according to ISO 14064-1 to examine the impacts on the Company's operations starting in 2023.
Social Food safety risk The Company has adopted the ISO22000 Food Safety Management System certification since 2010, and formulated a long-term ISO promotion plan to ensure that all stores implement consistent and ISO-compliant food safety management operating standards. Every year, selected stores undergo education and training, and certification companies conduct compliance checks on store operations to ensure adherence to the management systems established by the Company.
Labor/occupational safety risk The Company referenced CNS 45001 Occupational Safety and Health Management System when conducting risk assessments identifying regulations, and conducting internal audits, ensuring the effective implementation of management operations and continual improvement, as well as the implementation of the occupational safety and health policy, to achieve safety and health goals.
Public safety risk To prevent risk events occurring at the headquarters and stores that may cause financial and opportunity losses thereto, each store conducts fire drills every year in accordance with the Fire Services Act to strengthen the annual store insurance renewal process.
Corporate governance Strengthen the functions of the Board of Directors 1. Set relevant training topics for directors and provide them information on the latest laws, regulations, system developments and policies every year.
2. Purchase liability insurance for directors to protect them from lawsuits or claims.
Regulatory compliance The Company is also proactive in creating a culture of regulatory compliance, with the Compliance Office as the dedicated unit for promoting the Group's regulatory compliance, in order to comprehensively control and support the Group's operations in complying with regulatory requirements.
Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
III. Environmental issues
(I) Has the company developed an appropriate environmental management system based on its distinctive characteristics? As a leading brand in Taiwan's service industry, the Company not only strives to innovate and become a cornerstone for every aspect of daily life, but is also deeply aware that companies shoulder the responsibility of protecting the Earth's environment, and is therefore committed to creating spaces that are convenient, comfortable and eco-friendly. We formulated continual improvement plans to achieve sustainable and green operations, and constantly make improvements in terms of energy conservation, products, stores, logistics, and head office operations. The potential negative impact of our operations on the environment is always on our mind, and we seek to ensure a harmonious coexistence with the planet.
The main environmental management strategies of the company's stores and logistics are as follows:
1. Equipment:
(1) Implement micro network edge computing mechanisms through IoT equipment of individual stores, control the power consumption by specific equipment, and demand control may be within a target value;
(2) Gradually replace equipment, use eco-friendly refrigerant with low GWP (global warming potential) value, and lower GHG emissions and pollution to mitigate the damage to the environment;
(3) Continue to replace old stores and use LED lighting in future stores to effectively reduce electricity consumption;
(4) Use energy storage systems to test electricity consumption and plan the scope of site use, and implement peak load shifting to achieve balanced electricity consumption.
2. Logistics:
(1) Develop green logistics with the goal of achieving net zero carbon emissions;
(2) Reduce energy consumption and raise environmental protection awareness;
(3) Provide employment for the underprivileged and contribute to economic development.
Please refer to the Company's 2024 Sustainability Report for related environmental management systems. 		Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
(II) Is the company committed to improving the efficiency of energy use and using renewable materials that produce less impact on the environment? In 2005, the Company worked together with the Energy and Environment Research Laboratories, Industrial Technology Research Institute, forming an industry-academia research team in Taiwan that developed network-distributed energy management system design technology, which is able to dynamically adjust equipment in convenience stores. A computer system dynamically adjusts equipment operations to lower power consumption. Our energy-saving strategy includes operation energy-saving, equipment upgrade, and system control. We are in the process of introducing an energy management system, and has, on a phase by phase basis, adopted equipment IoT monitoring and management based on the concepts of "power demand suppression" and "energy-saving monitoring failure prediction." The system uses IoT to reduce the workload of store employees, automatically controls equipment, and provides an ideal way to handle maintenance requests. In the future, the Company will continue install IoT monitoring and management systems its stores and expand the management of electricity consumption by store equipment, improving the results of energy conservation and carbon reduction. At the same time, the Company is actively planning reserve energy applications and expanding on energy-saving projects to improve the effect of conservation; please refer to the Company's 2024 Sustainability Report for energy management measures. Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
(III) Does the company evaluate potential risks and opportunities brought by climate change, and take response measures to climate-related issues? The Company proactively prepares and plans response strategies for climate change, integrates recommendations on management framework in the Taskforce on Climate Related Financial Disclosure (TCFD) with the Company's existing risk management system, measures the risks and opportunities brought by climate change, and formulates response methods based on identification results. This strengthens our overall climate resilience, and mitigates the potential impact of low carbon transition and physical disasters on our operations.
The Board of Directors is the highest governing body for FamilyMart's climate change governance and is responsible for overseeing the control measures developed by the Sustainable Development Committee. The Sustainable Development Committee has an "Environment Team," which holds regular climate change meetings related to its own business every year and reports the risks and opportunities it identifies to senior managers, in order to effectively manage climate-related risks and opportunities. The Sustainable Development Committee then formulates management measures to ensure the effective implementation of risk management strategies. Please refer to the Company's 2024 Sustainability Report for climate-related potential risks and response measures. 		Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
(IV) Has the company compiled statistics of greenhouse gas emissions, water use, and total weight of waste in the past two years? Does it establish policies for energy conservation & carbon reduction, greenhouse gas emission reduction, water use reduction, and other waste management? The Company strives to realize sustainable operations, and the Environment Team under the Sustainable Development Committee reviews quantified indicators related to environmental sustainability each year, including GHG emissions, water consumption, and waste management. For key indicators highly related to climate risks and opportunities, we have also set mid- to long-term reduction targets, including electricity use intensity, logistics fuel-use intensity, fresh food waste rate, and fresh food plastic packaging materials use ratio, and will continue to examine and monitor goal attainment. Please refer to the Company's 2024 sustainability report and the Public Information Observation Station for the Company's GHG emission, water consumption, and total weight of waste, as well as management policies, in the past two years. Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
IV. Social issues
(I) Has the company developed its policies and procedures in accordance with laws and the International Bill of Human Rights? The Company supports international human rights conventions, such as the Universal Declaration of Human Rights, the United Nations Global Compact, and International Labor Organization, in order to achieve sustainable development and protect the basic human rights of all employees, customers, and stakeholders. We respect basic human rights and strive to ensure that all internal and external members of the Company are treated fairly and with dignity. Hence, we established the Taiwan FamilyMart Co., Ltd. Human Rights Policy and disclosed it on the company website. The seven implementation guidelines aim to eliminate illegal discrimination and respect human rights in the workplace; provide a friendly and safe working environment; prohibit unlawful infringement in the workplace; prohibit forced labor; prohibit employees under the age of 18 to work the graveyard shift; provide diverse communication channels and complaint mechanisms to ensure that rights are not infringed; implement personal information protection and information security. Specific management plans include maintaining occupational health and safety; assisting employees with maintaining mental and physical health and work-life balance; periodically organizing training and promotion; human rights protection and gender equality; establishing effective multi-directional communication channels.
In 2024, education and training courses on human rights-related advocacy (including labor human rights, workplace communication, employee physical and mental health, occupational environment safety, and gender equality issues) were organized with a total of 44,305 participants and a total of 51,168 hours of courses (physical and digital courses). 		Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
(II) Does the company have reasonable employee benefit measures (including salaries, leave, and other benefits)? Do business performance or results reflect properly on employee salaries? 1. Reflection of business performance (results) on employee remuneration:
The Remuneration Committee Charter stipulates that director and manager performance evaluations and remuneration policies, systems, standards, and structures must be periodically reviewed, and the industry norm is also referenced. The Company's financial position, business performance, and policy, as well as the employee's position, work ability, and individual performance are taken into consideration for employee bonuses, so that they will be competitive and incentivize employees. Furthermore, if the Company is profitable that year, no less than 1% of profits are allocated as employee bonuses in accordance with Article 30 of the Articles of Incorporation.
We established the Salary Management Regulations as the basis of employee salaries, actively monitor salary standards in the market, and periodically examine our salary policy. We also established the Employee Performance Evaluation Regulations, which sets forth just, objective, clear, and effective standards based on the Company's financial position and business performance to reward employees for their work, conduct, performance management, and development. We hope to thus effectively drive employees to reach their goals. The evaluation regulations are linked to employees' performance bonuses and promotion.
2.Workplace diversity policy and implementation:
(1)The workplace diversity policy
The Company established "Sexual Harassment Prevention, Complaint, Investigation, and Handling Guidelines," and has set up a "Sexual Harassment Prevention Section" on the company's official website, as well as a sexual harassment complaint hotline and complaint mailbox to accept sexual harassment complaints. In addition to local employees (including indigenous peoples, employees with disabilities, and student interns), the Company also employs foreign employees from China, Hong Kong, Indonesia, Japan, Myanmar, Macau, Malaysia, and Vietnam. The starting salary for new employees is the same for men and women for equal work, and the wages and benefits are the same.
(2)Policy implementation in 2024:
The Company employs a total of 194 foreign employees, accounting for 5.09% of all employees; 59 indigenous employees, accounting for 1.55% of all employees; 95 employees with physical or mental disabilities, accounting for 2.49% of all employees; 149 student interns, accounting for 3.91% of all employees; the Company's male/female employees as a percentage of all employees is 49.63% male and 50.37% female.
3.Employee benefits:
The Company established and implemented a variety of benefits, including salary, bonus, insurance, leave, leisure activities, funding, facilities, and educational resources, all of which are applicable to FamilyMart employees. A Staff Welfare Committee was established on December 31, 1988 to handle all employee benefit matters. The Company also established an internal employee benefits platform to provide information on discounts. 		Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
(III) Does the company provide employees with a safe and healthy work environment? Are employees trained regularly on safety and health issues? The Company has appointed occupational health and safety personnel in accordance with the law, and continues to promote maternal health protection, care for employee health, prevention of workplace violence, prevention of bone and muscle damage, and digital courses of health academy, and annual health examinations. Employee health checks are conducted regularly every year, and the examination items include labor safety examinations and food safety examinations pursuant to laws and regulations, as well as health examination items exceeding that required by law. In addition, for employees with abnormal health examination results, we provide case follow-up and health guidance to help improve their health. The Company also provides counseling services by engaging professional psychologists to help employees cope with work and life pressures, and improve mental resilience and happiness. The Company hopes that through comprehensive health management measures, employees will pay more attention to their own health and be able to work with peace of mind to realize their full potential. The Company's ISO45001 certification remained valid in 2024 (certificate is valid from December 28, 2023 to December 28, 2026). In 2024, the Company had two work-related injuries and two casualties, accounting for 0.034% of the total number of employees. There were zero fire incidents, and fire response courses addressing fire issues and operation of fire extinguishers, and building evacuation route drills were conducted. For other improvement measures, training courses and exercises, please refer to the Annual Report on "Protection measures for work environment and employees' personal safety" and the Company's 2024 Sustainability Report. Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
(IV) Does the Company offer its employees effective occupational empowerment and training programs? The Company has established the following rules and regulations for compliance by employees: FamilyMart Education and Training Regulations, FamilyMart Education and Training Center Management Regulations, FamilyMart Corporate University Management Regulations, FamilyMart External Lecturer Management Regulations, FamilyMart External Training Subsidy Application, and FamilyMart Internal Lecturer Management Regulations. In order to implement performance management and enhance employee capabilities, the Company continues to promote the Individual Development Plan (IDP) to learn about the capabilities of employees and tap their potential. Furthermore, through the inventory, we identify talents with leadership or professional abilities and include them in the Company's talent pool, in order to implement continuous talent growth and development. In addition, the Company provides education and training subsidies every year, allowing employees to freely choose internal or external training courses related to their own work. Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
(V) Does the company comply with relevant regulations and international standards for customer health and safety, customer privacy, and marketing and labeling of its goods and services? Has it established consumer or customer rights protection policies and complaint procedures? FamilyMart is the end retailer of the supply chain, and insists on providing consumers with safe products that will make them feel at ease. We have strengthened quality control and assurance from raw materials suppliers, product manufacturers, fresh food suppliers, logistics service providers, and end retail stores. FamilyMart was the first to obtain the ISO 22000 Food Safety Management System certification in 2010 to strengthen food safety in the production process and stores at the end of the supply chain, monitoring every link of the food production process to ensure compliance with national standards. This ensures that the food purchased by consumers is safe in every link of the product supply chain. FamilyMart has a customer service hotline and a stakeholders section on the company website to protect consumer rights and ensure that complaints are properly handled. Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
(VI) Does the company have a supplier management policy and require suppliers to comply with regulations on environmental protection, occupational safety and health, and labor rights? What is its implementation status? The Company implemented the ISO 22000 Food Safety Management System to strengthen the quality control of brand products. For suppliers with their own brands, such as raw materials and fresh food factories, we established standards for product inspection, on-site spot inspections of suppliers, and audit and evaluations in accordance with the Supplier Management Rules. Suppliers are also required to sign the "Ethical Corporate Management Agreement," which sets forth requirements for environmental protection, occupational health and safety, and labor rights. The Company strives to improve the implementation of ethical corporate management and sustainable development as well as the management system of suppliers.
For details on supplier management and implementation status, please refer to the "sustainable development" section of the company website and "FamilyMart Insists" #Supplier Management under it. 		Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
V. Does the company reference internationally accepted reporting standards or guidelines, and prepare reports that disclose non-financial information of the company, such as sustainability reports? Is assurance or guarantee from a third party verification unit obtained for the aforementioned reports? The Company's Sustainability Report was prepared according to the GRI Sustainability Reporting Standards 2021 announced by the Global Reporting Initiatives (GRI), Taiwan sustainability disclosure indicators (food industry and industries in which catering accounts for 50% and above of revenue), and the Task Force on Climate-Related Financial Disclosures (TCFD). A portion of disclosures in the report referenced industry standards (food retail and distribution industry) of the Sustainability Accounting Standards Board (SASB).PricewaterhouseCoopers, Taiwan was engaged to conduct independent limited assurance on this report in accordance with the Statement of Assurance Engagements Standards No. 3000: Assurance Engagements Other than Audits or Reviews of Historical Financial Information. Consistent with the Sustainable Development Best-Practice Principles for TWSE/TPEx Listed Companies
VI. If the company has established sustainable development principles in accordance with the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies, describe the deviations between the principles and implementation status:
The Company has established the Sustainable Development Best Practice Principles based on the Sustainable Development Best Practice Principles for TWSE/TPEx Listed Companies. These principles include implementing corporate governance, developing a sustainable environment, safeguarding public welfare, and strengthening disclosure of sustainable information to facilitate compliance by employees and achieve sustainable development.
VII. Other important information to facilitate a better understanding of the company’s implementation of sustainable development:
FamilyMart has a dense network of stores located in school districts, residential areas, and commercial districts. Therefore, FamilyMart actively participates in social welfare and is deeply involved in community development as a good neighbor, assisting in neighborhood patrol, caring for diverse consumers, and participating in public welfare projects. FamilyMart provide employment opportunities and a diverse, equal and inclusive working environment for people with disabilities, and promotes community development to enhance community identity.
  1. (I) The effectiveness of social welfare in 2024:
    1. (1) Care for children:
      FamilyMart jointly implemented the "Yellow Cap Traffic Safety Education Project" with Jing Chuan Child Safety Foundation. The NT$20.3 million in spare change raised in 2024 will be used to develop traffic safety teaching plans, train volunteer lecturers, prepare teaching materials, and organize promotion courses, lectures, and exhibitions on campus, deepening the traffic safety knowledge of approximately 90,607 children while they were having fun.
    2. (2) DEI promotion:
      FamilyMart collaborated with Victory Social Welfare Foundation in the "Give Them A Hand at Work" Project, and opened the first 24-hour convenience store in Taiwan with employees that have different mental and physical disabilities. The project gradually expanded to seven stores in 2024. Most employees working in these stores are persons with physical and mental disabilities. FamilyMart and Victory Social Welfare Foundation utilized their expertise to re-formulate the standard operating procedures of convenience stores and reconcile the work of employees with different disabilities. This will standardize the operating procedures of franchise stores and re-establish operating procedures that suit different employees. All in all, the collaboration has helped over 300 employees with physical and mental disabilities, which is in line with the spirit of diversity, equality, and integration (DEI).
      The number of migrant workers in Taiwan has been increasing year by year, and the population of Southeast Asian migrant workers (migrant workers and new immigrants) is close to one million. FamilyMart has long been concerned about the living needs of diverse groups. In 2024, FamilyMart jointly published the first national "Migrant Worker Convenience Store Survey" with One-Forty, a non-profit organization (NPO) that is deeply engaged in migrant worker education for many years, and launched the "FamilyMart Migrant Worker-Friendly Service Plan." Furthermore, FamilyMart is also the first among its peers in furnishing communication friendly writing pad in Southeast Asian languages. Over 4,200 store counters nationwide are equipped with such writing pads. In response to the diverse shopping needs of migrant workers in Taiwan, FamilyMart also launched product areas such as the "No Pork Deli Area," "Muslim-Friendly Shelf," and "Southeast Asian Shelf." Meanwhile, the "Immigrant Worker Cultural Ambassador Program" was launched, recruiting 30 migrant workers and 15 FamilyMart employees to serve as cultural ambassadors. A total of seven in-depth exchange activities were held. FamilyMart adopts the "multi-language, multi-product, multi-communication" approach, i.e., a multi-pronged approach covering store operations, product development, service optimization, and social participation to create the most friendly DEI convenience store chain.
    3. (3) Environmental Education:
      FamilyMart and Chi Po-lin Foundation jointly implemented the five-year charity project "See Taiwan Together with Family." FamilyMart stores in each neighborhood collected donations totaling NT$20.2 million in 2024, which was used for four environmental education projects, which serve as continuance of the spirit of Director Chi Po-Lin to care for Taiwan through videos. Besides organizing "The City, The Flâneur" in the Chi Po-lin Space, which reached 20,291 people, in the "Environmental Education Base Camp," we allowed 4,193 students to participate in tours free of charge. The Beyond Beauty - Taiwan From Above Campus Broadcasting Plan reached a total of 11,321 students through 92 viewings. At the same time, the Little Flying Tour of Townships in Taiwan was launched in coordination with FamilyMart’s special event - Mini Store Managers. A total of 15 sessions were held, enabling children, at FamilyMart stores found in street corners, to learn about the importance of caring for the environment from an early age. In addition, "Beyond Beauty III" has been filmed, in hopes that through various concrete actions taken, we and future generations can continue to see Taiwan. FamilyMart partnered with RE-THINK, an environmental NPO, to launch the "Learn to Recycle with Family" program to educate the public on the correct recycling knowledge through offline and online resources. The program has reached a total of 1.52 million people. Meanwhile, five FamilyMart stores in Taipei and New Taipei City conducted experimental trash can renovations, guiding consumers to correctly sort trash. The effort increases the accuracy of trash sorting by 20%.
  2. (II) Community engagement:
    FamilyMart has organized the Mini Store Manager event for over a decade with over 10,000 events held and nearly 160,000 FamilyMart Mini Store Managers trained. A total of 294 Mini Store Manager events were held with approximately 5,880 participants in 2024, helping children have fun while learning.
  3. (III) Support and investment in domestic cultural development:
    Starting from 2023, FamilyMart will invest in medium and large energy storage devices, solar panels and micro energy storage devices to be installed in some stores to achieve energy saving. In addition, starting from 2024, FamilyMart will purchase Renewable Energy Certificates (RECs; solar energy) from KiWi New Energy Inc. As of December 31, 2024, a total of 884 certificates had been purchased, saving a total of 884,000 kWh of electricity.
  4. (IV) For more information on sustainable development, please refer to the "Corporate Sustainability" section on the Company's website and the 2024 sustainability report.
Evaluation item Operations Deviation from "Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies" and reasons for deviation
Yes No Summary
I. Establishment of ethical corporate management policy and approaches
(I) Did the company establish an ethical corporate management policy that was approved by the Board of Directors, and declare its ethical corporate management policy and methods in its regulations and external documents, as well as the commitment of its Board and management to active implementation of the management policies? The Company upholds the principles of fairness, honesty, trustworthiness, and transparency, implements the Company's ethical conduct and ethical corporate management policies, and actively prevents unethical conduct. The Company's "Ethical Corporate Management Best Practice Principles" and "Code of Ethics for Directors and Managers" were approved by the Board of Directors on March 24, 2015, amendments were approved on November 8, 2019 and November 6, 2020. The principles and code clearly state that Board members and management shall exercise the due care of a good administrator. Directors and senior managers are required to issue a statement of compliance as their commitment to ethical corporate management policy. The ethical corporate management policy, methods, and regulations are disclosed on the company website. Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(II) Does the company establish mechanisms for assessing the risk of unethical conduct, periodically analyze and assess operating activities within the scope of business with relatively high risk of unethical conduct, and formulate an unethical conduct prevention plan on this basis, which at least includes preventive measures for unethical conduct specified in Paragraph 2, Article 7 of the Ethical Corporate Management Best-Practice Principles for TWSE/TPEx Listed Companies? The Company's "Ethical Corporate Management Operating Procedures and Code of Conduct" were approved by the Board of Directors in November 2019 and amended on November 6, 2020. Its contents cover Article 7, Paragraph 2 of the "Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies," and specify matters that the Company's personnel must pay attention to when performing duties. The Company's Ethical Corporate Management Promotion periodically analyzes and assesses the risk of unethical conduct within the scope of business, formulates plans for preventing unethical conduct, and establishes SOPs and Code of Conduct for related tasks in each plan. Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(III) Did the company specify operating procedures, guidelines for conduct, punishments for violation, and complaint filing systems in the unethical conduct prevention plan? Does it implement and periodically review and revise the plan? The Company established the Code of Ethics for Directors and Managers, Employee Work Rules, and Guidelines for Whistleblowing on Illegal, Immoral or Unethical Conduct. These set forth clear and detailed operating procedures, code of conduct, education and training, penalties for violations, and a compliant system. The Company strictly supervises the implementation of the ethical corporate management policy, and also periodically reviews the appropriateness and effectiveness of prevention plans, which serve as the basis for amendments. Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
II. Implementation of ethical corporate management
(I) Does the company evaluate the ethical records of all counterparties it has business relationships with and stipulate ethical conduct clauses in related business contracts? The Company signed an ethical corporate management agreement with counterparties of business activities and transactions starting in 2020, in order to ensure the fairness, transparency, and integrity of business transactions between two parties. The Company not only looks into the ethical corporate management of the counterparty before a transaction, but also includes its ethical corporate management policy as a clause in the contract, so that any party may unconditionally terminate or cancel the contract when business activities of the other party involves unethical conduct. Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(II) Did the company establish a dedicated unit under the Board of Directors to promote ethical corporate management and periodically (at least once a year) report to the Board of Directors about the supervision and implementation of the ethical corporate management policy and unethical conduct prevention plan? To fulfill the duty of supervising ethical corporate management, the Company established an Ethical Corporate Management Promotion Committee subordinate to the Board of Directors. The committee is responsible for supervising and inspecting the compliance of ethical corporate management, and is formed by representatives from the Compliance Office, Audit Office, and Human Resources Department. The committee is responsible for reviewing and improving the Company's ethical corporate management policy and promotion measures, staying up-to-date on the development of ethical corporate management-related regulations at home and abroad, and periodically reporting results and implementation status of ethical corporate management to the Board of Directors each year. Ethical corporate management results and implementation status in 2024 were reported during the 3th meeting of the 13th-term Board of Directors.
Implementation of the ethical corporate management policy is in accordance with corporate governance, business strategies, and operating procedures, the implementation status is as follows:
1. The ethical corporate management and anti-corruption campaign applicable to all employees was organized in 2024 with a total of 2,900 participants and 483 hours of courses (digital courses).
2. All directors and senior managers are required to issue a statement of compliance with the ethical corporate management policy, and employees are required to comply with the ethical corporate management policy as part of the terms of employment; completion rate reached 100%.
3. Established the Company's internal and external whistleblower channels (including telephone and e-mail) and established a dedicated section. 		Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(III) Does the company establish policies to prevent conflict of interests, provide appropriate channels for filing related complaints, and implement the policies accordingly? The Company's ethical corporate management regulations stipulate that the Company's directors, managers and other persons attending the board of directors with or without voting rights must recuse themselves from proposals that they are an interested party in and may be harmful to the interests of the Company. The Company and its directors, managers, employees, mandataries, and substantial controllers shall not use their positions or influence in the Company to obtain improper benefits for themselves or others to prevent conflicts of interest. The Company established internal and external whistleblowing e-mail and hotlines according to the "Guidelines for Whistleblowing on Illegal, Immoral or Unethical Conduct" to provide suitable channels for providing statements or whistleblowing to prevent conflict of interest. Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(IV) Does the company have an effective accounting system and internal control systems set up to facilitate ethical corporate management? Does the internal auditing unit formulate audit plans based on unethical conduct risk assessment results? Does it audit compliance with the unethical conduct prevention plan or commission an accountant to perform the audit? The Company conducts periodic audits of regulatory compliance through its internal audit, accounting, and internal control systems for the implementation of ethical corporate management.
The Company’s internal auditors periodically inspect the compliance of the internal control system in accordance with the law, and also formulate audit plans based on unethical conduct risk assessment results. The audit plans serve as the basis for inspecting the effectiveness of the internal control system and compliance with the unethical conduct prevention plan. Audit reports are then prepared and submitted to the Board of Directors.
The Company's accounting system has been effectively executed for many years, and an accountant conducts audits and prepares audit reports every year. 		Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(V) Does the company regularly hold internal and external education and training on ethical corporate management? The Company has established Ethical Corporate Management Best Practice Principles and periodically advocates the prevention of unethical conduct during company meetings or training, in hopes that all employees will be on the same page and comply with applicable laws and regulations for ethical corporate management.
The ethical corporate management and anti-corruption campaign applicable to all employees was organized in 2024 with a total of 2,900 participants and 483 hours of courses (digital courses).
The Company's eHRD has a "compliance academy" and "intellectual property academy" that offers mandatory compliance courses, TIPIPAS, and TIPS intellectual property training courses for all employees every year.
In addition, notices are irregularly issued to remind employees of work rules and business secrets for implementation and promotion. 		Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
III. Operation of whistleblowing system
(I) Has the company established a concrete whistleblowing and reward system and have a convenient reporting channel in place, as well as assign an appropriate person to communicate with the accused? The Company established the Employee Work Rules, Guidelines for Whistleblowing on Illegal, Immoral or Unethical Conduct, and internal regulations on employee rewards and punishments, in which a dedicated unit handles complaints, and set up the whistleblowing e-mail
The discovery of any violations of ethical corporate management can be immediately reported to an audit unit. The Company also set up an internal whistleblowing e-mail for employees to immediately report any violations to the Human Resources Department. The identity of a whistleblower and contents of the report shall be kept confidential. Reported cases in the preceding paragraph shall be verified and understood by a processing unit. Cases that are verified to be true shall be subject to laws, regulations, and disciplinary guidelines applicable to the company. 		Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(II) Does the company establish standard operating procedures for investigating reported cases? Does it take subsequent measures and implement a confidentiality mechanism after completing investigation? The Company's Employee Code of Conduct and Guidelines for Whistleblowing on Illegal, Immoral or Unethical Conduct prescribe the whistleblowing process and review unit, and requires the confidentiality of the whistleblower, investigators, and contents of the report, in order to protect them from unfair treatment or retaliation, and ensure the lawful rights of whistleblowers and related persons. Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
(III) Does the company provide proper whistleblower protection? The Company's Employee Code of Conduct and Guidelines for Whistleblowing on Illegal, Immoral or Unethical Conduct stipulate the obligation to maintain confidentiality and protect whistleblowers, and prohibit the disclosure of any information on the whistleblower when handling a case to protect the whistleblower from unfair treatment or retaliation. Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
IV. Enhance information disclosure
(I) Does the company disclose information regarding the company’s ethical corporate management principles and implementation status on its website and the Market Observation Post System (MOPS)? The Company has disclosed the Ethical Corporate Management Best Practice Principles and Procedures for Ethical Corporate Management and Code of Conduct and on its website and the MOPS, and also disclosed its implementation status. Consistent with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies
V. If the company has established ethical corporate management principles in accordance with Ethical Corporate Management Best Practice Principles for TWSE/GTSM Listed Companies, describe deviations between the principles and implementation status:
The Company has established the Ethical Corporate Management Best Practice Principles in accordance with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies. Implementation is in line with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies, without any deviations.
VI. Other important information to facilitate a better understanding of the company’s implementation of ethical corporate management: (e.g., review and amendment of the established ethical corporate management best practice principles)
The Company will continue to inspect and amend its Ethical Corporate Management Best Practice Principles in accordance with the Ethical Corporate Management Best Practice Principles for TWSE/TPEx Listed Companies to implement ethical corporate management.
  1. Employee benefits and implementation status:
    The Company offers a diverse range of 8 benefits, including salary, bonus, insurance, leave, leisure activities, funding, facilities, and educational resources, all of which are applicable to FamilyMart employees. A Staff Welfare Committee was established on December 31, 1988 to handle all employee benefit matters. The Company also established an internal employee benefits platform where employees can purchase daily necessities at a discount.
    Types of Benefits Content
    Salary Salary as agreed in employees' employment contract
    Bonuses Chinese New Year bonus, performance bonus, festival vouchers, Worker's Day voucher, birthday vouchers, Moon Festival gift box, certification bonus, management bonus, referral bonus, R&D patent bonus
    Insurance Labor insurance, health insurance, group insurance for employees, group insurance for spouse
    Leave Special leave, birthday leave, pregnancy checkup accompaniment and paternity leave, family care leave, pregnancy checkup and maternity leave, child care leave, menstrual leave, personal leave, sick leave, bereavement leave, and leave for wedding
    Recreational activities Annual gathering, department travel, social activities, year-end banquet and lottery drawing, family day, company movie day
    Subsidies Domestic/overseas travel, wedding/funeral/celebration, childcare subsidy, subsidy for children's education, emergency aid, expatriate rent subsidies
    Facilities Health consultation provided by an on-site physician (headquarters), medical check-up, massage (headquarter and sales department), library, and day care
    Educational resources FamilyMart corporate university (including CVS academy, logistics academy, management associate program, catering, academy, and franchisee program), continuing education academy, FamilyMart online learning web, learning blueprint for each position, training of key talent, employee career rotation program, external training subsidy, and overseas and domestic study subsidies
  2. Retirement system and implementation status:
    1. Pension payment regulations:
    Employees who joined the company on or before June 30, 2005 can, on or before June 30, 2010, opt for the pension system stipulated in the Labor Standards Act (the old system) or the pension system stipulated in the Labor Pension Act (the new system). Those who have opted for the new system may not switch to the old system. Employees who did not make a selection before the deadline are subject to the old system. The past years of service of employees are determined in accordance with relevant laws and regulations or relevant company regulations. With regard to retirement fund reserves, the company allocates 6% of employee salaries to the "Worker Retirement Reserve Fund" at designated financial institutions in accordance with government laws and regulations, and has established a "Worker Retirement Reserve Fund Supervisory Committee" to supervise and manage the fund.
    2. Retirement application:
    Employees who exhibit any one of the following circumstances may request voluntary retirement:
    (1) Those who have worked for more than 15 years and are at least 55 years old.
    (2) Those who have worked for more than 25 years.
    (3) Those who have worked for more than ten years and are over 60 years old.
    3. Pension calculation:
    Employees who joined the company on or before June 30, 2005 can, on or before June 30, 2010, opt for the pension system stipulated in the Labor Standards Act (the old system) or the pension system stipulated in the Labor Pension Act (the new system). Those who have opted for the new system may not switch to the old system. Employees who did not make a selection before the deadline are subject to the old system. Employees who joined the company on or after July 1, 2005 are applicable to the new system.
    The calculation of employee pension is as follows:
    (1) Years of service based on the old system:
    I. Based on years of service during employment, with two base units given for every full year. However, for those who have worked for more than 15 years, one base unit is given for every full year, and the maximum total is limited to 45 base units. Periods less than half a year will be counted as half a year, and periods over half a year will be counted as one year.
    II. For employees who meet the criteria for mandatory retirement in Paragraph 2 of the preceding article, if their mental disorder or physical disability is caused by the performance of their duties, 20% shall be added in accordance with the provisions of the preceding paragraph.
    III. The standard pension base unit refers to average salary in the six months before retirement is approved.
    (2) Years of service based on the new system:
    Employees withdraw their pension from their individual labor pension special account. Contribution is handled in accordance with the provisions of the Labor Pension Act, which is for employees to contribute 6% of their monthly wages to their personal account with the Labor Insurance Bureau on a monthly basis according to the Monthly Contribution Classification of Labor Pension.
  3. Employee education and training and implementation status:
    1. Orientation training for new employees: Knowledge and skills on business management, training on customer service, personnel rules system, general knowledge on laws, introduction to Family Mart's franchising system, company profile, and establishment of correct workplace ethics and mentality.
    2. The Company provides subsidies and funds for education and training every year. Employees are free to choose either internal or external courses that apply to their job so that employees could develop their skills that match their interests, thereby maximizing the learning outcome. In 2024, internal training was participated by 11,330 employees, costing NT$20,657,000 in total, and external training was attended by 82 employees, incurring an expenditure of NT$596,000.

Protection Measures for Workplace and Employee Safety

As a testament to our commitment in providing a safe and healthy workplace for our employees, we established the Occupational Safety and Health Work Rules, which cover labor safety and health management and responsibilities, equipment maintenance and inspection, work safety and health standards, education and training, health guidance and management, first aid and resuscitation, and preparation, maintenance, and use of protection facilities. The rules have been approved by Taipei City Labor Inspection Office for future reference. We convene employer-employee meetings and established an Occupational Safety and Health Committee in accordance with the Labor Standards Act and Occupational Safety and Health Act. Employees and employer each select 5 representatives to attend employer-employee meetings. The Occupational Safety and Health Committee consists of the General Manager & COO as the chairperson, 5 committee members (management), and 8 labor representatives. The committee convenes regular meetings to discuss matters relating to labor rights, benefits, occupational safety management system management and review operations, and EHS, which are executed after a decision is made during a meeting. The General Manager & COO is the highest governing body of occupational safety and health related matters. An Occupational Safety and Health Committee has been established to formulate environmental safety and health policies and guidelines, which are then promoted and implemented by the Occupational Safety and Health Section.
According to statistics on the Occupational Accident Statistics Online Reporting System of the Occupational Safety and Health Administration as of 2024, there were 2 occupational injury incidents with a disabling injury frequency rate (FR) of 0.22 and comprehensive injury index (FSI) of 0.04. We conduct hazards identification and risk assessment on an annual basis to actively discover hazards and risks in the workplace, and then lower the risks through the occupational safety management system. The highest percentage of accidents each year are from traffic accidents. The Company reports incidents every month and has launched a campaign to strengthen traffic safety concepts of new and current employees through digital courses, videos, and cases. Promoted ISO45001 and organized online courses on illegal infringement and fire safety in the workplace in response to recent major issues, and personnel who do not read the courses are regularly tracked.
In addition to a designated team for occupational health and safety, the Company has appointed occupational health and safety personnel in accordance with the law, and continues to promote maternal health protection, care for employee health, prevention of workplace violence, prevention of bone and muscle damage, and digital courses of health academy, and annual health examinations. Employee health checks are conducted regularly every year, and the examination items include labor safety examinations and food safety examinations pursuant to laws and regulations, as well as health examination items exceeding that required by law. In addition, for employees with abnormal health examination results, we provide case follow-up and health guidance to help improve their health. Meanwhile, the Company also provides counseling services by engaging professional psychologists to help employees cope with work and life pressures, and improve mental resilience and happiness. The Company hopes that through comprehensive health management measures, employees will pay more attention to their own health and be able to work with peace of mind to realize their full potential.

The safety and health education courses applicable to all employees was organized in 2024, including:

There were 5,711 participants in the Workplace Illegal Infringement Prevention Course with a total of 1,313.5 hours of courses, 5,162 participants in the Traffic Safety Course with a total of 1,290.5 hours of courses, 5,611 participants in the Fire Response Course with a total of 1009.9 hours of courses, and other multi-themed physical and mental health courses.
  • The recent performance evaluation results of the Board of Directors and functional committees are as follows:
  • I. Implementation status of the Board of Directors external performance evaluation:
    1. 1. According to the stipulations of our "Regulation of Self-Evaluation of the Board of Directors," an evaluation of Board performance should be conducted by external units at least once every three years. The Corporation commissioned the "Taiwan Corporate Governance Association" to evaluate Board effectiveness and performance. The Taiwan Corporate Governance Association and evaluating experts were independent units that had no business dealings with the Corporation; a report on Board performance was issued on November 20, 2023. Results of the aforementioned external evaluation were reported to the Company's Audit Committee, Remuneration Committee and Board of Directors on March 12, 2024. Implementation details were as follows:
      1. (1) Evaluation duration: From October 1, 2022 to September 30, 2023.
      2. (2) Evaluation method: The Taiwan Corporate Governance Association conducted reviews of the relevant documents submitted by the Corporation for evaluations, and also commissioned two experts to conduct on-site evaluations and interviews with the Corporation's Chairman, President, independent directors, corporate governance officer, head of Corporate Planning Department, and accountants on February 16, 2022.
      3. (3) Evaluation content and items: Standards included the eight aspects of board composition, board guidance, board authority, board supervision, board communication, internal control and risk management, self-discipline of the board, and others (board meetings, support systems, and soon).
    3. 2. Evaluation results, recommendations, and future improvement plans of the Board of Directors external performance evaluation:
      4. (1) Overall evaluation results:
      5. No. Contents
      1 The company places great emphasis on sustainable development and integrity in operations. In 2015, the "Sustainable Development Committee" was established, with the General Manager serving as the convener. This committee is responsible for formulating and executing sustainable development policies, convening quarterly meetings for discussions, and providing annual reports to the board of directors on overall corporate governance, progress in sustainable development initiatives, and their effectiveness.
      Additionally, to fulfill its oversight responsibility for integrity in operations, the company has set up the "Ethical Corporate Management Promotion Committee", convened by the Chairman of the Board. This committee reports annually to the board of directors on specific achievements in integrity operations and the progress made, aiding the board in supervising the company's implementation of corporate sustainability and integrity operations.
      2 The company has a well-established system for strategic planning and goal setting. In December 2020, it presented a five-year operational plan for digital transformation to the board of directors. Upon board approval, 2021 was designated as the inaugural year for digital transformation, followed by 2022 as the acceleration year, and the current year (2023) as the integration year. Each year, specific goals and plans are set, with quarterly reports from the General Manager to the board detailing progress and allowing for tactical adjustments.
      The formulation of these strategies involves discussions among senior management, culminating in decisions by the board of directors. This approach integrates top-down guidance with bottom-up pragmatism, leveraging the board's oversight role in strategic decision-making.
      3 The company's risk management mechanism is complete and has a "risk management policy" approved by the board of directors. The risks that may have an impact on operations can be inventoried and identified. This year (2023), a "risk management method" has been formulated to Calculate the risk coefficient based on the frequency and impact of events, formulate risk strategies and response mechanisms, and set up a crisis management and reporting system to ensure effective response and control of risks, and regularly report the implementation of risk management to the board of directors every year so that the board of directors can Really control the overall business operation risks.
      4 The company places a strong emphasis on talent development, having established the Corporate University to design training and development programs for key positions and talents. It also implements a job rotation mechanism to foster growth and promotes a deputy system for senior executives. In alignment with our digital transformation strategy this year (2023), four Vice Presidents of Operations have been promoted. It is proposed that the succession planning for these roles be included as a regular sustainability topic in board reports, allowing the board to provide guidance. This initiative will further strengthen the foundation of the company's sustainable development.
      5. (2) Implementation of evaluation recommendations and response measures:
      6. No. evaluation recommendations response measures
      1 The composition of the board of directors proposes increasing the number of independent directors and female directors, while reducing the proportion of corporate directors. Future director nominations will consider candidates of different genders and increase the number of independent directors.
      2 It is recommended that in addition to written information, on-site visits and meetings with important managers can be used to help new directors grasp the company's operating status as quickly as possible. Planning to establish an orientation program for new directors.
      3 (1) Recommended to assess allowing independent directors/audit committee members to receive reports of allegations simultaneously.
      (2) For incidental major events and crisis management information, clearly define the reporting deadline and method, and promptly notify all directors.       		(1) Plan and set up reporting matters to be forwarded to the mailbox of independent directors simultaneously.
      (2) Establish a system to promptly notify internal and external directors of unexpected major events.
      4 (1) Recommended to review the regulations of functional committees after every board election.
      (2) Recommended to establish a mechanism for internal auditors to communicate separately with the audit committee and to maintain written records of such communications.       		(1) Establish a record list to review relevant authority regulations and measures from time to time.
      (2) Arrange a communication mechanism between the audit supervisor and the audit committee from time to time every year.
  • II. Implementation status of the Board of Directors and Functional Committees Internal evaluations:
  • Evaluation cycle Evaluation period Scope of evaluation Evaluation method Evaluation items Implementation result
    Once a year From November 1, 2023 to October 31, 2024 Individual Board members Self-evaluation by Board members Includes the following six aspects:
    1. Familiarity with the goals and missions of the Company.
    2. Awareness of the duties of a director.
    3. Participation in the operation of the company.
    4. Management of internal relationships and communication
    5. The director’s professionalism and continuing education.
    6. Internal control.     		The Company completed internal performance self-evaluations for the Board members for 2024 in January 2025. The evaluation results for the Board members were all “Excellent”.
    The Board performance self-evaluation results above were reported to the Company’s Audit Committee , Remuneration Committee and Board of Directors on March 10, 2025.
    Audit Committee Self-evaluation by Audit Committee members Includes the following five aspects:
    1. Participation in the operation of the company.
    2. Understanding of the Audit Committee’s responsibilities.
    3. Improvement of the Audit Committee’s decision-making quality.
    4. Composition of the Audit Committee and member selection.
    5. Internal control.     		The Company completed internal performance self-evaluations for the Audit Committee for 2024 in January 2025. The evaluation results for the Audit Committee were all “Excellent”.
    The Board performance self-evaluation results above were reported to the Company’s Audit Committee , Remuneration Committee and Board of Directors on March 10, 2025.
    Remuneration Committee Self-evaluation by Remuneration Committee members Includes the following five aspects:
    1. Participation in the operation of the company.
    2. Understanding of the Remuneration Committee’s responsibilities.
    3. Improvement of the Remuneration Committee’s decision-making quality.
    4. Composition of the Remuneration Committee and member selection.
    5. Internal control.     		The Company completed internal performance self-evaluations for the Remuneration Committee for 2024 in January 2025. The evaluation results for the Remuneration Committee were all “Excellent”.
    The Board performance self-evaluation results above were reported to the Company’s Audit Committee , Remuneration Committee and Board of Directors on March 10, 2025.

    • ※The evaluation results for each year will be updated after being submitted to the board of directors in March.

    1. 【The status of communication with stakeholders in 2024 were reported to the Board of Directors on December 18, 2024.】
      Stakeholder
      [Responsible Unit]      		 Significance of FamilyMart Concerned Topic Communication Channel and Frequency Communication Achievements or Responses in 2024
      Shareholders and Investors FamilyMart values the opinions of its shareholders and investors. It has established a spokesperson system and an investor relations contact point to enhance communication. It regularly holds corporate briefings and shareholder meetings to strengthen the timeliness and transparency of information disclosure, ensuring the rights of shareholders and investors. ● Risk Management
      ● Economic Performance
      ● Corporate Governance
      ● Ethical Business Conduct
      ● Information Security       		● Annual general meeting of shareholders.
      ● Regular updates of information disclosed in the "Investor Relations" section on the official website.
      (1) Quarterly announcements of financial statements/Annual publication of annual reports.
      (2) Annual publication of sustainability reports in both Chinese and English.
      (3) Invitations or self-organized corporate briefings on a quarterly basis.
      ● Irregular updates to information disclosed on the official website.
      ● Timely response to inquiries and needs through the investor mailbox and hotline.       		● Annual shareholders’ meeting
      (1) Monthly revenue, quarterly financial reports, and annual updates to the Company's annual report.
      (2) Annual publication of sustainability reports in both Chinese and English.
      (3) Invitation to participate in 4 quarterly investor conferences each quarter.
      ● 42 major announcements in both Chinese and English.
      ● 5 responses to feedback in the investor mailbox, 32 conference calls with domestic and international corporations and analysts.
      Government agencies FamilyMart continuously monitors government policies and regulatory compliance. It maintains effective communication channels to ensure legal compliance and support policy implementation. ● Marketing and Labeling
      ● Customer Health and Safety
      ● Labor Rights and Labor-Management Communication
      ● Occupational Health and Safety
      ● Ethical Business Conduct
      ● Information Security       		● Monthly regulatory identification and dissemination.
      ● Irregular participation in policy seminars or public hearings.
      ● Irregularly cooperate with government documents and correspondence.       		● Regularly convene compliance meetings of the Group.
      ● Organized 1 promotional event for the Trade Secrets Act.
      ● Published 12 legal newsletters each year.
      ● Obtained TPIPAS personal data management certification.
      Employees FamilyMart's momentum comes from the efforts and innovative spirit of its partners. It provides comprehensive compensation and benefits, as well as training systems, and is committed to providing employees with a pleasant and healthy working environment. ● Occupational Health and Safety
      ● Labor Rights and Labor-Management Communication
      ● Training and Education
      ● Diversity and Equal Opportunity
      ● Talent Attraction and Retention
      ● Ethical Business Conduct       		● Regular convening of labor-management meetings.
      ● Real-time response to the stakeholder section on the official website.
      ● Immediate response through dedicated hotline and mailbox for employee feedback.
      ● Quarterly convening of the Employee Welfare Committee.
      ● Annual employee satisfaction surveys.       		● Convened 4 Occupational Health and Safety Committee meetings for the year
      ● Accumulated 8 cases of employee feedback and consultation in the stakeholder section of the official website.
      ● The employee feedback hotline and email inbox have received a total of 10 feedback and inquiries from employees.
      ● Convened 3 Staff Welfare Committee meetings in the year.
      ● A total of 1,537 questionnaires were collected in the employee satisfaction survey with scores between 4.04 and 4.7 (out of 6) for each indicator.
      Local communities As a good partner in the community neighborhood, FamilyMart actively engages in local community development and promotes community services, implementing sustainable community development and care. ● Waste Management
      ● Product and Service Innovation
      ● Customer Health and Safety
      ● Social Contribution       		● Community care activities/irregularly.
      ● Consumers who recycle waste electronic products at stores can get a deduction from a purchase.       		● Held 294 Little Store Manager events with approximately 5,880 participants.
      ● As of 2024, we have recycled approximately 3,339 metric tons of waste batteries, 690 metric tons of waste CDs, almost 500,000 waste cell phones, and 300,000 waste laptops, waste tablets, and waste power banks.
      Suppliers and Contractors Suppliers and contractors are important partners in FamilyMart's operations. Through close collaboration and supplier management systems, they work together to create growth and establish a sustainable value chain. ● Supply Chain Management
      ● Product and Service Innovation
      ● Sustainable Procurement
      ● Packaging Materials Management
      ● Ethical Business Conduct       		● Annual supplier meetings are held.
      ● Annual vendor social events are organized.
      ● Annual supplier audits are conducted.       		● Held 1 supplier meeting in the year.
      ● Organized 1 vendor social event in the year.
      ● Completed annual audits of 120 suppliers; completed audits of 100% of raw materials suppliers and egg suppliers.
      Customers and consumers FamilyMart adheres to the principle of placing customer needs at its core and strives to meet various shopping needs and provide a positive consumer experience. It actively works towards creating the most convenient lifestyle service platform. ● Customer Health and Safety
      ● Marketing and Labeling
      ● Product and Service Innovation       		● Real-time response to the consumer service hotline 0800-221-363.
      ● Immediate response to the stakeholder section on the official website (suppliers, consumers, franchisees/landlord).
      ● Conduct periodic customer satisfaction surveys.       		● Customer feedback received through the customer service hotline and the stakeholder section of the official website totaled 28,000 cases.
      ● Irregularly conducted customer satisfaction surveys.
      Banks FamilyMart maintains close communication and interaction with banks to secure stable and competitive sources of operating funds. ● Corporate Governance
      ● Economic Performance
      ● Information Security       		● Conduct periodic business visits and meetings.
      ● Quarterly financial auditing by PwC Taiwan.       		● Irregularly conducted business visits and meetings with banks. ● Held 4 financial statement audit meetings in the year
      Media The media serves as an important bridge for FamilyMart's external communication. It has a spokesperson system and a public affairs and brand communication unit to ensure consistent delivery of company information and brand image through various communication channels to the public and stakeholders. ● Customer Health and Safety
      ● Supply Chain Management
      ● Social Contribution
      ● Regulatory Compliance
      ● Corporate Governance       		● Organize periodic interview activities and press conferences.
      ● Issue news releases and accept interviews on an irregular basis.
      ● Dedicated hotline and email for immediate response to inquiries and needs.       		● Held 6 media events and 13 media interviews.
      ● Issued 138 or more press releases.
      ● The dedicated hotline received a total of 95 calls; responded to 15 questions via e-mail.
      Franchisees Utilizing Japanese expertise in business operations and combining it with years of local experience, FamilyMart has developed a comprehensive franchise system, logistics support system, and professional management guidance. FamilyMart regards franchisees as business partners and works together to achieve business success. It promotes various cooperative projects and integrates various resources to enhance the brand's market competitiveness, making franchisees the most reliable allies. ● Product and Service Innovation
      ● Training and Education
      ● Occupational Health and Safety
      ● Franchisee Rights and Interests
      ● Ethical Business Conduct       		● Conduct annual policy briefings.
      ● Organize franchisee forums and training courses on an irregular basis.
      ● Regularly update the franchise briefing session information on the official website.       		● Organized 4 policy presentation events.
      ● Organized 6 lectures and courses for franchisees.
      ● Made 1.5 weekly visits per store.
      ● 550 franchise briefing sessions posted on the official website.
      Non-profit Organizations FamilyMart continues to pay attention to the activities and initiatives of charitable organizations, engaging in mutual communication and leveraging influence, with a commitment to practicing sustainable development. ● Food Waste Management
      ● Climate Change Mitigation and Adaptation
      ● Social ContributionLabor Rights and Labor-Management Communication
      ● Occupational Health and Safety       		● Respond to charitable activities on an irregular basis.
      ● Regularly set up platforms for loose change and small donations.
      ● Participate in forums and seminars on an irregular basis.
      ● Dedicated hotline and email for immediate response to inquiries and needs.       		● The FamilyMart Care Platform helped a total of 57 groups.
      ● The FamilyMart Care Platform raised NT$170 million.
      ● Participated in 5 forums/seminars.
      ● The dedicated hotline received a total of 50 calls; responded to 120 questions via e-mail.
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