Material Issues

The Company revises Impact Materiality results from the organized workshop to determine significant sustainability issues. The issues taken into consideration along with comprehensive appraisals enable the determination of linkages and contextual appropriateness within organizational business operations for Material Testing. A select group of professionals with knowledge and abilities specific to convenience stores and retail business, cash-payment and self-service wholesale business and other relevant business are tasked with determining connections and global trends, including ESG sustainability indices from Morgan Stanley Capital International (MSCI), the Dow Jones Sustainability Indices (DJSI), Global Trend and Sustainability Accounting Standards Board (SASB), etc.

Results from significant sustainability issues testing are presented to senior management representatives and the Board of Directors to ensure prioritization. Considerations for stakeholder influence and decisions in conjunction with economic, social, and environmental impacts inclusive of human rights are highlighted.

Efficient utilization of resources with technological integration in tandem with the Company’s circular economy strategy enables reduced energy consumption and greenhouse gas emissions in addition to satisfying societal expectations regarding climate challenges. As a result, this approach increases business opportunities with suppliers in terms of climate change aspects, fosters trust among investors and develops collaboration with the government sector.

Failure to recognize climate change impact arising from a company’s business activities potentially increases operating costs due to climate change impacts and ensuing raw material price fluctuations, supply chain disruptions, and high operating costs incurred from climate change response inclusive of fees, carbon taxes, and administrative costs to maintain business continuity.

In addition, conducting business without considering the impact on global climate change may affect lifestyle, health, and safety of all stakeholders throughout the value chain. Long-term impact includes air pollution which affects health and safety of workers and surrounding communities, drought and flood impact on suppliers, and capability to deliver products and raw materials.

Efficient energy management, clean energy technology development, and renewable energy assists in climate change impact reduction while increasing business opportunities and confidence among investors.

Inefficient energy management may result in increased production costs thus decreasing profits and community rights violations in relation to distribution of clean water access in communities surrounding company business operations.

Operating both a retail and wholesale business requires consideration for environmentally friendly packaging selection, usage reduction, take-back systems and efficiently recycling to enable proper organizational plastic waste management, added value, production cost reductions, and both intra- and interorganizational stakeholder participation.

Without considering packaging properties inclusive of recyclability and materials decomposition, discarded plastic waste remains in the environment in large quantities thus impacting ecosystems, human food safety issues, various health concerns, and operating costs in addition to organizational reputation and image.

Product distribution management and efficient food waste management assists food waste reduction occurring from overproduction and food wastes arising from transportation, distribution and storage. Waste management which converts food waste into alternative raw materials allows economic value creation, food waste alleviation, and company operating cost reduction.

Ineffective management results in increased food waste quantities and greenhouse gas emissions which negatively impacts ecosystems and natural resources in addition to surrounding community health and wellbeing. Company operating costs are also impacted with inappropriate waste management.

Management throughout the process of sourcing raw materials, production, and distribution requires awareness of delivered product in terms of maintaining safety and uphold standards, a factor affecting increasing business opportunities. Additional matters relevant to delivering nutritious products include additional access to health and well-being services within the community.

A lack of awareness in consumer safety may pose risks in delivering products harmful to health. Long-term negative impact on consumers from diseases caused by lifestyle behaviors (Non-Communicable Diseases: NCDs) may result in lawsuits and damage to organizational reputation and image.

Conducting socially responsible business supports job creation, provides community well-being, builds good community relationships, and increases community acceptance of Company activities. Moreover, the government and private sectors emphasizes support for all societal groups in equal access to products and services, a means to reduce inequality, improve life quality and increase civil well-being.

In the even where the Company conducts activities affect the community, life quality in surrounding communities would be violated, community-organization conflicts would arise, Company license to operate may be declined, and Company image may be tarnished.

Good corporate governance enhances organizational business operation efficiency, competitiveness and builds confidence. This approach attracts investors and employs critical guidelines which assist in business value creation. The Company reviews operations displaying inefficient corporate governance, non-transparent activities, and disregard for morality, ethics, and human rights. The mentioned actions affect business competitiveness, reduces stakeholder confidence towards the organization, reduces investor interest, while increasing human rights and legal violations risk.

Security management and effective occupational health may reduce work-related accident incidences, increase operational capabilities, and boost Company confidence among employees and suppliers.

Meanwhile, poor occupational safety and health management could cause loss of life and property, leading to disruptions in production processes and decreased productivity from lab capital stock. Other negative impacts include lower employee morale, fines, and tarnished Company credibility and reputation.

In addition, 7-Eleven store’s customer and property safety may be impacted

Leadership and human resources development allow the creation of vital skills among employees at all levels, creates technological and digital platform comprehension which increases operational potential, increases employee engagement, affects business operation efficiency, and improves business resilience to market changes.

Ineffective personnel development processes representing inequality and discrimination create human rights violation risks. Instances of mentioned grievances include female employee salaries lower then male employees, etc., which negatively impacts organizational growth and decreases the Company confidence among employees and suppliers.

Appropriate supply chain management could reduce risks associated to cost, raw material supply shortage, inventory, and human rights violations while instilling confidence in the Company among employees and suppliers. This approach increases the ability to generate profits.

Inefficient supply chain management with disregard to human rights pose risks associated to business disruption, poor quality products, delayed deliveries to consumers, increased production and transportation costs, Company reputation and image, and environmental and social costs imposed by societal and investor expectations.