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ECCT LCI Lunch - Towards Sustainable Supply Chain

(L to R): Deborah Chiang, ECCT Energy Transition&Sustainability Director; Daniel Shiao, Head of Sustainability, Communications & Corporate Affairs-TWHK, Unilever Taiwan; Ivy Tsai, Lead of Corporate Communication & Sustainability, Nestle Taiwan; Shalom Chen, Chief Sustainability Officer, L'OREAL Taiwan; Olivier Letessier, President, Air Liquide Far Eastern & ECCT LCI Co-Chair; Dr. Hsi Chih-Lun, Deputy Director-General, MOENV Resource Circulation Administration; Freddie Hoeglund, ECCT CEO; Demi Wang, Group Sustainability Manager, Jardine Restaurant Group; Linda Wang, Group Sustainability Manager, DFI IKEA (Taiwan, Hong Kong, Macau, and Indonesia)

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Press Release: Euroview

Freddie Hoeglund, ECCT CEO, warmly welcomed the MOENV Resource Circulation Administration DDG and representatives from 5 member companies in the retail & consumer goods industry


Dr. Hsi Chih-Lun, Deputy Director-General of the Resource Circulation Administration under the Ministry of Environment, gave the opening remarks

The ECCT’s Low Carbon Initiative (LCI) hosted a lunch forum on the topic of sustainable supply chains. The event featured opening remarks by Hsi Chih-Lun, Deputy Director-General of the Resource Circulation Administration under the Ministry of Environment (環境部資源循環署 許智倫副署長). This was followed by presentations by speakers Linda Wang, Group Sustainability Manager for DFI IKEA (Taiwan, Hong Kong, Macau, and Indonesia) (DFI零售集團IKEA集團永續發展經理 汪慶怡); Demi Wang, Group Sustainability Manager for the Jardine Restaurant Group (怡和餐飲集團永續發展經理 王曦涵); Shalom Chen, Chief Sustainability Officer for L'OREAL Taiwan (台灣萊雅永續長 陳家祥); Ivy Tsai, Lead of Corporate Communication & Sustainability for Nestle Taiwan (台灣雀巢企業溝通暨永續發展負責人 蔡惠蓮) and Daniel Shiao, Head of Sustainability, Communications & Corporate Affairs-TWHK for Unilever Taiwan (聯合利華台灣/香港永續發展與企業傳播事務部負責人 蕭錫安).

Linda Wang, DFI IKEA Group Sustainability Manager, reflecting on how consumer communication helps drive energy efficiency and sustainable actions

Linda Wang gave a presentation titled "Digitalizing IKEA's Eco-Initiatives – From data-driven energy efficiency to consumer communication". IKEA has embraced the concept of sustainable consumption and production, which has been identified by the United Nations Environment Programme (UNEP) as one of the three overarching objectives of, and essential requirements for, sustainable development, together with poverty eradication and the management of natural resources to foster economic and social development. IKEA is in the process of transforming its products into green products. One of IKEAs recent initiatives is to invite its customers to submit testimonials of its healthy and sustainable living (HSL) products and to use these testimonials to promote HSL products. Wang noted that IKEA’s energy saving LED light bulbs reduce energy consumption by around 35% and that the use of these bulbs helped to reduce GHG emissions by around 5,000 tons. One of the findings of IKEA’s study is that most people do not understand what actions have the most impact, which indicates the need for more education and cross-sector collaboration to promote sustainable consumption habits.

Demi Wang, Jardine Restaurant Group Group Sustainability Manager, sharing about decarbonising the supply chain through traceability in Taiwan and Vietnam

In her presentation, Demi Wang spoke about decarbonising the supply chain through traceability. She cited statistics from the Intergovernmental Panel on Climate Change (IPCC) that estimate that the food and beverage industry accounts for around 26% of GHG emissions, of which 31% is attributed to livestock farming, 27% to agriculture and food production and another 24% to land clearing. Just under 70% of Jardine’s scope 3 (or indirect supply chain) emissions are attributed to sourcing of food ingredients, the bulk of which are from poultry and dairy, while another is attributed to fuel and energy activities. To reduce emissions in their own operations, the firm is progressing towards earning its first LEED certification in Vietnam with optimised energy performance and enhanced water conservation and waste reduction. In Taiwan it has replaced over 50% of petrol delivery motorcycles with electric versions for KFC Taiwan and continued to utilise solar panels for heating. In terms of procurement, the firm’s Pizza Hut unit has increased the portion of ingredients sourced locally to reduce emissions from transportation in Vietnam and Taiwan. It is also reducing the use of single-use cutlery and optimising production schedules for pizza dough to reduce food waste.

Shalom Chen, L'OREAL Taiwan Chief Sustainability Officer, introducing sustainable best practices globally for cosmetics products 

Shalom Chen introduced L'OREAL’s sustainability practices for cosmetics. The company’s goals include getting all of its energy needs from renewable sources by 2025, to get all of its packing materials from recycled products or biobased sources by 2030 and to reduce its overall emissions by 25% by 2030. To reduce the need for water, products are being designed to require less water for rinsing. To reduce the environmental impact from packaging, recycled materials and bio-based materials (such as paper tubes) are being used for containers and packaging and there has been a conscious effort to reduce the use of secondary packaging, plastic films and other single use materials. Other efforts include making containers refillable for products like perfume and make-up. The firm is also using electric vehicles for last-mile delivery in Taiwan.   

Ivy Tsai, Nestle Taiwan Lead of Corporate Communication & Sustainability, emphasizing the importance of sustainable sourcing and product designs

Ivy Tsai’s presentation was titled "Designing for the Future: Nestle's Sustainable Solutions for Building Resilience". Based on 2018 statistics, around 71% of Nestle’s emissions were attributed to sourcing of ingredients, 7% to manufacturing its products, 11% to packaging and 8% to logistics. To reduce its overall environmental impact, the company already eliminated its impact on forestry in 2022 and plans to source 100% of its packaging from recyclable materials or make them reusable by 2025 and to get 100% of energy from renewable sources by 2025. It targets getting 100% of its cocoa and coffee from certified sustainable sources by 2025. According to Tsai, 92.8% of the firm’s coffee is already sustainably sourced. Multiple efforts are being made to reduce materials used in product containers and packaging, including new designs for curved paper straws and outer packaging to reduce the use of plastic.    

Daniel Shaio, Unilever Taiwan Head of Sustainability, Communications & Corporate Affairs-TWHK, talking about the commitment and consistent action steps towards sustainable supply chain

In his presentation, Daniel Shiao introduced Unilever’s Compass Strategy, unveiled in 2010, aimed at becoming a global leader in sustainability. The firm has three overarching goals: to improve the health of the planet, improve people’s health and well-being and contribute to a fairer and more socially-inclusive world. The firm has a goal to become "waste-free" by 2025 and net zero by 2039. By 2025, the firm has a target for all plastic packaging materials to be either 100% reusable and returnable, recyclable or compostable and to cut the use of virgin plastic by half while the content of all product packaging will use 25% less recycled plastic. In terms of product ingredients, 100% of them should be biodegradable by 2030. In Taiwan, the usage of PCR has increased by 20% and product lines continue to be expanded. Besides product packaging, Unilever is also committed to reducing the amount of plastic used in sales support products. Since 2020, product hangtags, promotional packaging have not used PET. Unilever's global use of recycled plastics has reached 22%. The firm is also committed to responsible sourcing of agricultural raw materials. More than 70% of agricultural crops used in Taiwan already meet sustainable standards.