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The global and regional cosmetic industry remains highly fragmented. While we continue to work with brands in our stores on reducing plastics use, we maintain the most control over supply chains, distribution networks, product design and packaging through our Own Brand lineup. We also achieved 57% recyclability for our Own Brand products with plastic packaging by SKU, on track with our target of 100% by 2030.

For our own Health and Beauty product strategy, we have been able to develop, implement and evolve our in-house initiatives to reduce, reuse and recycle plastics across our operations. We have done this while always ensuring we deliver high-quality, affordable products for our customers.

Our Own Brand offering combines great products and value together with sustainable impact, providing a strong driver for shifting consumer preferences towards more sustainable products. To drive our plastics reduction strategy, DFI has alternative solutions and adopted five key workstreams designed to minimise plastic use:

• Refuse: Removing plastic shrink wrap.

• Reduce: Redesigning products to use less plastic.

• Reuse: Introducing refill pouches so bottles can be reused.

• Replace: Replacing HDPE plastic with widely recycled PET plastic, or replacing virgin plastic with materials made with plant-based fibres.

• Recycle: Using recycled materials in place of virgin raw materials. We are also working to maximise the recyclability of all our packaging.

Several key initiatives that we undertook during the year align with this strategy included:

Reducing single-use plastic materials

DFI is also working to reducing single-use plastics in our Own Brand products. For example, Mannings in Hong Kong and Macau, along with Guardian in Singapore and Malaysia, introduced multi-surface anti-bacterial cleansing wipes that are made from 100% natural plant-based fibres, which biodegrade much more rapidly than traditional plastic fibre-based wipes.

Adopting reusable plastic packaging

In addition to our goal of making all Own Brand product packaging recyclable by 2030, we are also implementing initiatives to promote the use of reusable packaging. Guardian Malaysia introduced refill pouches for popular Own Brand body and hand wash products, offering up to 11 different options. Guardian stores in Singapore and Malaysia also expanded this initiative by introducing refill pouches for our Own Brand Kids Head-to-Toe Wash. These refill pouches significantly reduce plastic usage by up to 79% compared to their original bottles.

Leveraging recycled plastics and minimising packaging

Since 2022, DFI has utilised 50% recycled plastic for selected Own Brand dental care accessories, reducing our reliance on 100% virgin plastic. We have also reduced virgin plastic use in outer packaging of these products by using recycled plastic and paper packaging where feasible.