Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Rights
• Supplier Collaboration
• Customer Satisfaction
• Quality Management
• Work Safety
• Community Engagement
• Corporate Governance

Environmental Achievements

• Constructed solar power facilities at Factory 1, supplying 100% of the factory's monthly electricity needs (as of Q1 2024).
• Reduced electricity consumption by 31% and greenhouse gas emissions by approximately 5% at Factory 3 through the replacement of air compressors.
• Replaced the bottom finishing material of sofas and low-rise family beds from non-woven fabric to fabric to increase product lifespan and reduce waste.
• Optimized the size of raw materials used in the production of laminate tabletops, reducing waste by approximately 66%.
• Launched a refurbishment product line to reduce waste from returned or damaged products.
• Entered into a voluntary agreement with the Korea Public Resource Circulation Association to improve mattress recycling rates.
• Expanded the use of water-based paints in furniture painting products.

Social Achievements

• Established the CX (Customer Experience) department to improve customer service and product quality.
• Implemented a 'Before Service' process to proactively address potential customer issues.
• Achieved a 95% customer complaint resolution rate.
• Consistently received the Consumer-centric Management (CCM) certification from the Korea Consumer Agency.
• Established a human rights management system, including a human rights impact assessment.
• Implemented a grievance mechanism through the Cyber Audit Office and internal reporting channels.
• Provided scholarships and medical expenses to the families of employees of partner companies.
• Supported the establishment of a fair trade culture and system through the introduction of a Fair Trade Self-Compliance Program (CP).
• Established a fund for partner companies to access loans at lower interest rates.

Governance Achievements

• Established an ESG Committee under the Board of Directors to oversee ESG management.
• Established an ESG Task Force led by the CEO to develop and implement ESG strategies.
• Introduced the 'Compliance Ethics Index' to monitor compliance with laws and regulations.
• Achieved the highest rating of 'Excellent' in the Fair Trade Agreement Implementation Evaluation.
• Implemented a policy of quarterly dividends to enhance shareholder value.

Climate Goals & Targets

Environmental Challenges

• Climate change risks (transition risks from strengthened carbon neutrality policies, increased renewable energy procurement costs, stricter greenhouse gas emission regulations, reduced transportation emissions, lack of eco-friendly certifications, and expansion of renewable energy supply certificates (REC) system; physical risks from changes in production land, sea-level rise, and global temperature increase).
• Supply chain disruptions.
• Customer complaints and product liability issues.
• Maintaining a safe and healthy work environment.
• Ensuring human rights throughout the value chain.

Mitigation Strategies

• Developed a carbon neutrality roadmap with short-term and long-term goals.
• Implemented energy efficiency measures and renewable energy initiatives.
• Established a robust risk management process for identifying, assessing, and mitigating climate-related risks.
• Developed and implemented a comprehensive system for managing customer complaints and product liability issues.
• Established a robust occupational safety and health management system, including regular training and risk assessments.
• Implemented a human rights management system, including human rights impact assessments and grievance mechanisms.
• Developed a supplier code of conduct and implemented ESG assessments for key suppliers.

Supply Chain Management

Supplier Audits: ESG assessments conducted for 83 key suppliers in 2024.

Responsible Procurement

• Supplier Code of Conduct
• Sustainable raw material sourcing principles (FSC, PEFC, LWG certified materials)
• Exclusion of conflict minerals

Climate-Related Risks & Opportunities

Physical Risks

• Changes in production land
• Sea-level rise
• Global temperature increase

Transition Risks

• Strengthened carbon neutrality policies
• Increased renewable energy procurement costs
• Stricter greenhouse gas emission regulations
• Reduced transportation emissions
• Lack of eco-friendly certifications
• Expansion of renewable energy supply certificates (REC) system

Opportunities

• Improved energy efficiency
• Increased sales of eco-friendly products
• Enhanced brand reputation

Reporting Standards

Frameworks Used: GRI Standards, UN Global Compact, TCFD, SASB Building Products & Furnishing

Certifications: ISO 14001, ISO 50001, ISO 45001, ISO 9001, KOLAS

Third-party Assurance: KPMG Samjong Accounting Corporation

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Refurbished products
• Eco-friendly products with eco-labels
• Products with improved durability and reduced environmental impact

Awards & Recognition

• Minister of Trade, Industry and Energy Award for Sustainable Management (2022)
• Family-Friendly Company Certification