The company is committed to becoming an environmentally sustainable low-carbon enterprise and addressing the climate and environmental crisis caused by global warming. In the future, we will align ourselves with the world and contribute together to the well-being of the planet's environment. We are committed to promoting energy efficiency, carbon reduction, and greenhouse gas emission reduction policies and transforming them into concrete actions to achieve the goals of saving energy, protecting resources, and reducing pollution.

 

1.1 Response to Climate Change（TCFD）

In order to effectively comprehend the potential impacts and opportunities of climate change on business operations, Youngqin International has been using the "Task Force on Climate-related Financial Disclosures (TCFD)" published by the Financial Stability Board (FSB) as the framework since 2022. This climate information framework is built upon four core elements: governance, strategy, risk management, and metrics and targets. It assesses the actual impact and the impact level on company operations. Through a cross-department collaborative effort to identify climate-related risks of the company, subsequent response measures and management goals are proposed.

Governance Framework

Youngqin International designates the Board of Directors as the highest climate governance body, responsible for supervising and auditing the company's actions in climate change management, as well as establishing overall strategic goals for the company. Moreover, in order to enhance the overall practices of sustainable operations, the company has established the "Sustainability Development Committee" to strengthen the role of the Board of Directors and to promote the implementation of the three primary aspects: environmental, social, and corporate governance. The Chairman serves as the chairman of the Sustainability Development Committee, with three independent directors and the Deputy General Manager of the chain headquarters Chain serving as committee members. The committee holds meetings at least twice a year to formulate ESG goals and strategies, as well as review the progress of ESG plans on a quarterly basis. Additionally, a "Sustainability Office" has been established to coordinate and facilitate the collaboration of various departments in related matters such as management and operation. In addition, the Sustainability Development Committee has established an "Environmental Sustainability Team" which is specifically responsible for tracking climate-related issues and planning and driving the achievement of sustainability goals. The team regularly reports its progress to the Sustainability Development Committee. The Chief Sustainability Officer has assigned relevant personnel to begin planning for the implementation of IFRS S1/S2. In addition to studying the sustainability disclosure standards and participating in training courses organized by regulatory authorities, the company will comply with legal requirements and begin disclosing sustainability-related information in accordance with IFRS Sustainability Disclosure Standards no later than 2028. The implementation schedule has been planned with reference to the “Work Plan for Aligning with IFRS Sustainability Disclosure Standards”, as outlined below:

Identification process of climate change risks and opportunities

In the management process of climate change, Youngqin International starts by identifying climate risks and fully considers the possible impacts on business operations from risks generated by various factors such as the geographical location of its operational sites, supply chains, customers, and business environment. As a result, effective indicators are designed and they are integrated with the running business. Climate risk management is implemented from top to bottom and integrated into the overall operations and strategic development. Relevant climate risks and opportunities are identified by different departments according to the situation they may face. The Sustainability Office then summarizes the opinions from different departments and the identified key climate issues are used to conduct evaluations on the impact and influence of risks, while the opportunities and their probabilities are also confirmed. Based on these evaluations, relevant responding strategies are formulated to achieve the company's expected goals.


 

Result or identification of climate change risks and opportunities

Youngqin International consolidates its operational status and international sustainability trends to identify eight climate risks and five climate opportunities. All departments are invited to assess the levels of impact on the company, as well as the chances of happening, from various risks and opportunities. By identifying key climate risks and opportunities, further evaluation is conducted to assess potential financial and operational impacts. The key climate risks identified in this assessment are "global temperature rise" and "fluctuations in raw material markets," while the key opportunities are "energy saving, water conservation, and waste reduction" and "diversified product development". The company has formulated response strategies and will keep on tracking, hoping to mitigate the impacts of climate risks through various climate actions and seize the growth opportunities presented by climate change.

 

 

 
 

 

1.2 Greenhouse Gas Assessment

Commission. A greenhouse gas assessment program is initiated with the establishment of the "Greenhouse Gas Assessment Promotion Team". The progress of the implementation is reported to the Chairman during monthly management meetings. The Greenhouse Gas Assessment Promotion Team is led by the Chairman as the management representative, responsible for approving and releasing the annual Greenhouse Gas Assessment Report and supervising the operation of the assessment team. The factory affairs officer serves as the assessment leader, developing the annual greenhouse gas assessment plan and acting as the contact window for all units. The Audit Team conducts internal verification, issues reports, and non-compliance reports when necessary. Lastly, the Sustainability Office is responsible for consolidating the final greenhouse gas assessment data and disclosing it to the public through the Sustainability Report and official website.

Greenhouse Gas Assessment Promotion Team

To effectively manage greenhouse gas emissions and demonstrate the influence on carbon reduction, Youngqin International has taken a leading position among its peers by conducting Scope 1 and Scope 2 greenhouse gas emissions inventory regarding operational activities since 2022. The scope of inventory includes the Taoyuan headquarters, the Central and Southern logistics center, and all directly owned stores of the company's three major brands: My Warm Day, Fried Chicken Master, and REAL. In 2023, our new brand "Shuan Jin Shabu Shabu" has been included in the scope of inventory. To accurately assess the greenhouse gas emissions of Youngqin International, we follow the methodology outlined in ISO 14064-1:2018 in the execution of the greenhouse gas inventory (Includes defining organizational boundaries, emission sources identification, and calculating emission volume). The assessment coverage of operational outlets is 100%, and we have entrusted a third-party agency to conduct verification. The total emissions of Category 1 and Category 2 in 2024 are 3,225.7839 tCO2e, and the emission intensity is 1.2794 tCO2e/million NTD, Category 4 in 2024 is 83.3817 tCO2e. The new operating locations have increased overall greenhouse gas emissions in 2024. However, the intensity of greenhouse gas emissions is showing a downward trend. In the future, we will continue to implement carbon reduction plans and improve greenhouse gas management performance.



 

 

 

 

2.Energy Resources and Wastes Management

2.1 Energy Management

In fulfilling its role as a global citizen and adhering to corporate social responsibility, the company remains committed to energy conservation, carbon reduction, and greenhouse gas mitigation policies, striving to become a low-carbon enterprise that promotes environmental sustainability. In 2024, as the company accelerated its brand expansion, Youngqin International added five new stores, primarily under the Shuan Jin Shabu Shabu brand. This growth led to an approximately 10% increase in overall energy consumption compared to the previous year. The main sources of energy consumption were purchased electricity, natural gas, and liquefied petroleum gas.

Reduce energy consumption

The company-owned stores of the company are the main sources of category 2 emissions. To strengthen our efforts towards reducing emissions, we have set a target to decrease the average greenhouse gas emissions by at least 1% within two years in company-owned stores. Currently, we are continuously implementing measures to reduce greenhouse gas emissions with the target of conserving energy and protecting resources. Related proposals are as follows: (1) For air conditioning equipment in offices that consume more electricity, energy-saving planning is conducted. For example, the company headquarters adjusts the central air conditioning usage time and increases air conditioning temperature by 1℃, from 25°C to 26°C, to achieve energy conservation goals. (2) Reminder slogans such as "Please turn off the lights" are posted to encourage staff members to develop good habits. (3) The company headquarters of the three main areas (northern, central, and southern) gradually introduced energy-conserving equipment. Currently, the central office has installed 13 sets of optical energy-saving light-guiding systems (STS-530) and 8 sets of ventilation skylight panels (SVS-500). These systems bring natural sunlight indoors to reduce lighting consumption. (4) Stores are gradually replacing energy-saving air conditioning equipment. in 2024, a total of 7 inverter air conditioners were replaced in five stores to reduce electricity consumption. Total investment amount is 460 thousand, estimated to save 68,040 kWh a year, and estimated to reduce carbon emissions by 32,250.96 KgCO2e (electricity carbon emission factor 0.474KgCO2e/kWh)

2.2 Water Resources Management

Water resources management policy

Water resources are the essence of life for both humans and enterprises. Governments of different countries and non-governmental enterprises have anticipated the crisis in water resources due to climate change. Currently, this becomes a common global issue. Through the enhancement in water management mechanisms, water saving and water usage strategies are promoted, hoping to mitigate the impact of shortage in water resources and contribute together to water resources. The company implements various water-saving measures, including the use of sensor-operated faucets in the restrooms at the headquarters to reduce water wastage. Water-saving devices are installed on the faucets of stores to reduce the water flow. Slogans such as "Please conserve water" are posted to remind users to reduce water wastage. Moreover, dishwashers that handle a large single batch of dishes are used to prevent unnecessary wastage due to frequent washing of small quantities. In 2024, the company's headquarters collected rainwater into storage tanks and they are mainly used for toilet flushing. The headquarters' water consumption has reduced by approximately 16% compared with the previous year. Remark: The company's headquarters consumed 1.52 million liters of water in 2023 and 1.272 million liters in 2024.

2.3 Waste Management

Waste management policy
Waste management is an essential topic in the development of environmental sustainability nowadays. Besides strengthening employees' environmental awareness and consciousness, regarding the issue of waste generated by businesses, the top priority is minimizing consumption, followed by implementing waste sorting and recycling. The final step is waste management so that the impact on the environment can be reduced. The main type of waste generated by the company is general waste but not hazardous waste. In 2024, 181.2485 tons of general waste, 0.588 tons of resource waste, and 39.2908 tons of waste oil were generated, all of which were entrusted to legal waste management companies for proper disposal. Plastic waste from product packaging materials at the headquarters is recycled by legal manufacturers and reused afterwards. Since 2006, My Warm Day brand had utilized ceramic plates as dine-in containers and reduced the usage of disposable packaging materials. Furthermore, starting in 2008, all drinks in the stores were stored in mugs instead and completely eliminated the use of plastic and melamine tableware. Ceramic tableware was introduced to reduce waste and conserves the environment, leading to the enhancement of the quality of the living environment. Currently, the company-owned stores have clearly marked recycling instructions in the recycling area to remind customers of proper waste sorting. Additionally, to ensure the quality of frying oil used in the stores, oil will be replaced once it meets the standard for oil replacement, and the used oil will be stored properly. We have entrusted legal waste management companies to collect the used oil from our stores. The collected oil will be further transferred to legal recycling processing plants to transform them into ingredients of environmentally friendly biodiesel. This approach also ensures that recycled cooking oil will not be reintroduced into the food industry chain. To continue the initiative, directly owned stores began to launch a discount event where consumers can save 5 NTD if they bring their own reusable cups to purchase drinks. So far, a total of 5,470 cups have been redeemed, reducing the use of at least 5,400 paper cups.

 

Circular Economy

In 2024, My Warm Day stores began using reusable logistics crates for the delivery of muffin products The Muffin series has long been one of My Warm Day’s best-selling products. It meets requirements for no added preservatives and Clean Label certification. Previously, these products were delivered to stores in frozen cartons, which required cold chain logistics. Aiming to reduce the use of freezer space in warehouses and stores, as well as minimize energy consumption, starting in July 2024, all deliveries were converted to reusable plastic crates. This practice reduced waste generation and saved at least 10,000 cartons per month, equivalent to approximately 5,000 kg of cartons. 



To reduce packaging waste caused by overly complex and excessive designs, our stores have adopted standardized packaging. This approach enables multiple product types to share common packaging materials, facilitating a full transition toward eco-friendliness and plastic-free. 

Plant-Fiber Cutlery

In support of environmental protection and sustainable development, Youngqin International began introducing plant-fiber cutlery in 2022 across 500 company-owned stores and some franchise stores. Made from natural plant fibers, this alternative helps reduce plastic usage and lowers the carbon footprint. We believe that every small detail counts—and that taking action in our daily lives is one of the most powerful ways to protect the Earth. We invite everyone to join us in embracing a green lifestyle. Starting with every meal, we can work together for a better environment!

3.Green Store Action

 

3.1 Green Store Action

In general household or restaurant kitchens, faucets and sinks are commonly installed. Washing pots, bowls, and other containers generates domestic wastewater that contains food residues, grease, oil scraps, or grease stains. Although strainers are typically installed at sink drains to filter out debris, they often fail to completely remove grease or floating oil, which can easily lead to clogging. These strainers can only intercept a portion of the food scraps and grease, offering limited filtration effects and needing frequent cleaning. To address these issues, various patented wastewater oil-trapping devices have been proposed for placement at the bottom of sinks and connection to the drain outlet. However, challenges such as difficulty in cleaning and disassembly still remain, as well as poor efficiency. To improve the above situations, Youngqin International filed a patent application on October 11, 2023, for a "Kitchen Wastewater and Grease Trap ." After review by the Intellectual Property Office, the new utility model patent was officially granted with the publication number TW M651225 U. The patent protection period runs from February 1, 2024, to October 10, 2033.

Benefits after installation

This device offers operational convenience, high oil-water separation efficiency, and lower environmental and maintenance costs. It effectively increases the amount of waste oil collected, reduces the risk of clogged pipes in stores and communities, and minimizes the environmental impact of Youngqin’s operations.

Waste Reduction Initiatives

To further enhance its green benefits, the company is actively promoting waste reduction initiatives. Current efforts focus on waste sorting, recycling used cooking oil, and implementing cherish food campaigns to reduce food waste. We adopt strategies such as placing waste sorting and cherish food posters in stores to raise consumer awareness, hoping that waste reduction can be achieved. For medium-term to long-term development, promoting the use of reusable carriers for products can help reduce packaging waste. Additionally, by analyzing the types of food waste generated at stores, the company aims to implement appropriate solutions (e.g., menu adjustments) with the goal of reducing food waste by 25%.

 

Eco-Friendly Restaurants

The “Eco-Friendly Restaurant” certification program, promoted by the Ministry of Environment, aims to encourage the food service industry to put eco-friendly principles into practice, reduce resource waste, and enhance sustainable development. Certified restaurants must meet various green standards, such as using eco-friendly tableware, reducing single-use items, promoting reusable utensils, improving energy efficiency, and minimizing food waste through proper sorting and reduction measures. This certification not only enhances a restaurant’s image but also reassures consumers that they are choosing environmentally friendly restaurants that both sides can contribute to a greener lifestyle. Since 2024, Youngqin International has progressively registered all its directly owned and franchised stores under the eco-friendly restaurant certification program, demonstrating its commitment to environmental friendliness by offering low-carbon, eco-friendly meals and dining environments. Youngqin aims to provide customers with a comfortable and convenient environment while creating sustainable value through actions. The Green Store Initiative currently focuses on building eco-friendly stores by targeting to control air pollution and reduce waste. Electrostatic air purifiers are installed across all stores to mitigate cooking fume emissions and enforce air pollution control; POS-based ordering systems are employed to reduce paper waste; Announcements are updated through the cloud to minimize paper communication; Directly owned stores encourage consumers to bring their own reusable bags and cups, offering discounts as incentives, in an effort to achieve the goal of becoming green stores. Looking ahead, Youngqin will continue to advance its green store vision by continuously installing electrostatic purifiers in stores (maintaining a 100% adoption) and launching branded, eco-friendly utensils and tote bags to further encourage consumers to use them.