HONG KONG SAR - Media OutReach Newswire - 22 April 2025 - DFI Retail Group (DFI or the Group), a leading Asian retailer with diverse business formats, has launched a low-carbon rice cultivation pilot programme in 2024 in Thailand. This initiative aims to reduce greenhouse gas (GHG) emissions in the rice industry. By implementing new farming techniques, DFI seeks to promote the adoption of sustainable agriculture practices and enhance environmental awareness among its supply chains. This innovative programme successfully produced 110,000kg of certified low-carbon rice in 2024, achieving a minimum 30% reduction in GHG emissions on the rice fields compared to conventional cultivation methods.

Rice is an important commodity across Asia, where 85% of the world's production occurs, with Thailand ranking as the sixth-largest rice producer globally. In Hong Kong alone, the annual consumption of approximately 255,105 metric tons ^{1, 2} of rice results in around 1,060,982 tonnes of carbon dioxide equivalent ^{3, 4} emissions - comparable to driving around the world 106,532 times ⁵.

This crop constitutes one of DFI's top Scope 3 product categories, accounting for approximately 6% of total Scope 3 emissions based on 2023 data. Traditional rice farming involves flooding fields for extended periods, which creates anaerobic conditions in the soil. This lack of oxygen allows microbes to release methane-a GHG with a global warming potential 28 times greater than carbon dioxide-into the atmosphere, significantly impacting climate change.

In response to this environmental challenge, DFI collaborated with agricultural experts, the Thai government, and researchers to develop a low-carbon rice cultivation programme. The pilot programme partnered with 30 local farmers to implement sustainable farming techniques, including:

• Alternate Wetting and Drying (AWD): Instead of the traditional 120 days of continuous flooding of the rice fields, the programme uses an irrigation technique called AWD, reducing flooding to about 10 days. This approach not only conserves water but also reduces methane emissions while maintaining production yields.
• Straw Burning Prohibition: Support for farmers to eliminate open-field burning of rice straw, significantly reducing carbon dioxide emissions and air pollution.
• Soil and Fertiliser Management: Closely monitored soil quality and fertiliser application, with guidance from agricultural experts. Soil samples were analysed to optimise nutrient use and minimise nitrous oxide emissions.

In 2025, DFI would continue with the programme and aims to launch 200,000kg of low-carbon rice under the Yu Pin King brand in the Hong Kong market. This initiative will raise public awareness and promote sustainable agriculture across supply chains. DFI will also explore further partnerships and low-carbon sourcing opportunities to enhance its impact.

Erica Chan, Group Chief Legal, Governance and Corporate Affairs Officer shared, "Beyond value and quality, we are committed to sustainability. This programme exemplifies our dedication to pursuing sustainable goals. We wish to influence the industry, our stakeholders across the value chain to take collective action towards a sustainable future."

Fann Yuen, Group Own Brand Director added, "Customers prefer sustainable products but not at a higher cost. Guided by DFI's 'customer-first' approach, we are dedicated to providing sustainable options that are affordable."

The rice produced through this low-carbon cultivation programme is now available under Wellcome's Own Brand Yu Pin King Thai Jasmine Fragrant Rice (5kg). Customers can find it on shelves at designated Wellcome stores in Hong Kong and purchase it online.

DFI remains devoted to offering more sustainable choices for customers in the future, ensuring that sustainability aligns with affordability.

[1] Hong Kong Trade and Industry Department. (2023). Rice: Per capita consumption
[2] Census and Statistics Department. (2023, 15 August). Mid-2023 population estimates
[3] AGRIBALYSE®. (n.d.). Data extracted from dataset available at: Recherche Data Gouv.
[4] U.S. Environmental Protection Agency. (2024). Greenhouse Gas Emissions from a Typical Passenger Vehicle
[5] National Aeronautics and Space Administration. (n.d.). The Earth. NASA Imagine the Universe.

For detailed information about DFI Low-Carbon Rice Pilot Programme, please refer to here.
Hashtag: #DFIRetailGroup #LowCarbonRice #YuPinKing #Wellcome #MarketPlace #Sustainability #ESG #ReduceCarbonEmissions

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.