DFI Launches 2024 Sustainability Report

In 2024, DFI demonstrated strong ESG performance. It was ranked in the 84th percentile in the Food and Staples Retailing industry in the S&P Global Corporate Sustainability Assessment*. Key achievements include a 14.2% reduction in Scope 1 and 2 greenhouse gas emissions compared to the 2021 baseline, with a target of 50% reduction by 2030. The waste diversion rate improved to 61%, up from 56% of the previous year. DFI also made community investments totalling US$2.76 million, enhancing social impact through various initiatives across markets. Additionally, DFI achieved 57% packaging recyclability of Own Brand products with plastic packaging, progressing the Group on track towards the target of 100% by 2030.

Scott Price, Group Chief Executive, DFI Retail Group shared, "At DFI, our purpose is to sustainably serve our millions of customers in Asia for generations with everyday moments. This shared purpose inspires us to meet the daily needs of our customers while creating lasting, sustainable value for all stakeholders. As Asia's leading retailer, we take this responsibility seriously by providing essentials that support livelihoods, health, well-being, and ecosystems across all our markets."

Erica Chan, Group Chief Legal, Governance and Corporate Affairs Officer shared, "I am proud of the consistent progress DFI has made in laying the foundation for our refreshed Sustainability Framework. I am also deeply encouraged by the collective efforts of our teams, partners, and communities, and am confident that we will continue to make great strides in our sustainability journey in the years ahead."

This year's report introduces a refined Sustainability Framework centred around three key pillars: People, Products and Planet, with Governance as the cornerstone, ensuring robust leadership and oversight.

The People-focused priorities underscore DFI's commitment to its customers, team members, communities, and the labour in its supply chains. By prioritising employee development, health, and safety, DFI aims to empower its team members and address the diverse needs of customers. Initiatives include enhancing training programmes, promoting gender equality, and fostering community engagement through various giveback projects.

Across the business, the Products pillar focuses on providing sustainable product choices that resonate with consumer demand. DFI is dedicated to increasing the availability of Own Brand products with sustainability certifications, ensuring that customers can easily access sustainable goods and solutions without compromising affordability, while also safeguarding product quality and safety. This commitment extends to advancing sustainable packaging practices and promoting responsible sourcing across its supply chains.

The Planet strategies recognise the urgent need to address environmental challenges and are dedicated to reducing DFI's overall carbon footprint, minimising waste and advancing circular economies through upcycling. The Group remains on track to achieve a 50% reduction in Scope 1 and 2 emissions by 2030. Additionally, the company is addressing Scope 3 emissions by collaborating with suppliers and industry partners on decarbonisation strategies and engaging consumers to embrace sustainable consumption.

As part of DFI's efforts to advance its goals across these pillars, it progressed several impactful initiatives during 2024, including:

• People: Mannings Hong Kong launched a safe disposal service for unused medicines, becoming the first community pharmacy chain in the city to do so. The programme expanded in 2024 to double the scale. Since its inception in 2023, it has handled around 8 million unwanted pills and received multiple industry awards for its contribution to public health. Additionally, IKEA Indonesia introduced the IKEA Social Entrepreneur Accelerator (I-SEA), partnering with local organisations to support marginalised communities. This initiative has supported over 220 local communities and impacted thousands of smallholder farmers and businesses through capacity building and mentorship.
• Products: DFI has increased the percentage of its Own Brand products with sustainability certifications from 24% to 28%. Additionally, as part of the Group's commitment to responsible sourcing, 7CAFÉ has adopted 100% Rainforest Alliance-certified Arabica coffee beans across its stores in Hong Kong, Macau, and Singapore.
• Planet: DFI led a successful Low-Carbon Rice pilot in Thailand, addressing the 6% of the Group's Scope 3 emissions attributed to rice. With 85% of the world's rice produced in Asia, DFI worked with local partners to train 30 local farmers in sustainable farming techniques, including Alternate Wetting and Drying (AWD). The pilot produced 110,000kg of certified low-carbon rice, achieving at least 30% reduction in greenhouse gas emissions on approved participating rice fields. In 2025, DFI plans to launch 200,000 kg of low-carbon rice under its Own Brand Yu Pin King in Hong Kong, helping promote sustainable agriculture across its supply chains.

Together, these pillars reflect DFI's comprehensive approach to advancing sustainability priorities. By integrating these principles into its core business strategies, DFI is not only addressing immediate sustainability challenges but also paving the way for a more resilient future for its customers, communities and the planet.

For detailed information on the various sustainability initiatives undertaken by DFI, please refer to the Sustainability Report 2024. To learn more about DFI's efforts, please visit DFI's website.

*Ranking as of 8 January 2025

Hashtag: #DFIRetailGroup #SustainabilityReport #Mannings #Guardian #7-Eleven #Wellcome #MarketPlace #DFILucky #ColdStorage #Giant #IKEA #yuu


https://www.dfiretailgroup.com/

The issuer is solely responsible for the content of this announcement.

DFI Retail Group

DFI Retail Group (the 'Group') is a leading Asian retailer, driven by its purpose to "Sustainably Serve Asia for Generations with Everyday Moments".

As at 31 Dec 2024, the Group, its associates and joint ventures operated over 10,700 outlets, and employed over 190,000 people.

The Group is dedicated to delivering quality, value and service to Asian consumers through a compelling retail experience, supported by an extensive store network and highly efficient supply chains.

The Group, including associates and joint ventures, operates a portfolio of well-known brands across six key divisions: health and beauty, convenience, food, home furnishings, restaurants and other retailing.