Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Responsibility
• Governance

Environmental Achievements

• Reduced GHG emissions by 56.72% in 2020 compared to 2017 target.
• Completed construction of a solar power plant in Pyeongtaek Factory, supplying 13% of the factory's energy needs as of June 2021.
• Achieved an 8% increase in recycling rate compared to 2019, reaching 81%.

Social Achievements

• Designated as a family-friendly company since October 2017.
• Hosted an online employment briefing session to increase accessibility.
• Implemented flexible work hours and a weekly Family Day.
• Provided various employee benefits, including full medical examinations, company cafeteria, and commute shuttle bus.

Governance Achievements

• Established a new security policy for important information to prevent breaches.
• Reorganized the work classification system to enhance business operations.
• Established a code of conduct for suppliers focusing on sustainable and security management.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to COVID-19.
• Increased demands for eco-friendly packaging from global clients.
• Difficulties in developing eco-friendly packaging due to higher production costs and compatibility concerns.
• Need to reduce GHG emissions to meet client and government targets.
• Securing talented employees in a competitive market.

Mitigation Strategies

• Dualized and individualized factories to prevent production shutdowns.
• Created a digital transformation (DT) team for online responses.
• Established a ten-year roadmap for the COSMAX ECO Project.
• Cooperated with global material companies to discover and apply eco-friendly ingredients.
• Implemented various employee welfare and training programs.

Supply Chain Management

Supplier Audits: 8 in 2020, planned expansion to 15 in 2021

Responsible Procurement

• Code of conduct for suppliers
• Expansion of RSPO-certified palm oil usage

Climate-Related Risks & Opportunities

Physical Risks

• Damages to workplaces due to abnormal weather
• Increased raw materials and supply risk due to abnormal weather

Transition Risks

• Increased demand on climate-related issues and eco-friendly products from consumers
• Increased demands of the publication of climate change response information of stakeholders

Opportunities

• Development of energy-efficient products
• Introduction of renewable energy

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Sustainable Development Goals (SDGs), ISO 26000:2010

Certifications: ISO 14001, ISO 45001, COSMOS ECOCERT, MUI, EVE

Third-party Assurance: DNV, BSI Group Korea

UN Sustainable Development Goals

• Goal 4
• Goal 8
• Goal 12
• Goal 13

Initiatives contribute to these goals through various programs and activities.

Sustainable Products & Innovation

• Microbiome cosmetics
• SensiFilter™ sensitive cosmetics
• Self-heating cosmetics
• Eco-friendly skin relief cream

Awards & Recognition

• UN Global Business Awards (2018)
• Commendation of the Minister of Trade, Industry and Energy (2018)

Environmental Metrics

ESG Focus Areas

• Environmental Management
• Social Responsibility
• Governance

Environmental Achievements

• Reduced water consumption by 6.6% in 2021 compared to the previous year.
• Reduced waste discharged by 12% in 2021 compared to the previous year.
• Reduced air pollutant discharge by 13% compared to the previous year.
• Reduced wastewater discharged by 23.8% compared to the previous year.
• 55.9% of total palm oil consumption was RSPO-certified.
• 100% of Mica used was certified child labor-free.

Social Achievements

• Launched the “By Me Project” to materialize novel ideas made by Gen Z creators.
• Implemented OKRs framework for performance management.
• Introduced SMART COSMAX, an e-learning platform.
• Maintained a high female employee rate (49.8%) and female team leader rate (35%).
• Donated COVID-19 testing kits in Thailand (THB 200,000).
• Donated calendars and diaries to the Foundation for the Blind in Thailand.
• COSMAX China participated in the Million Trees program (4,500 trees).

Governance Achievements

• Joined the United Nations Global Compact.
• Acquired ISO 14001:2015 certification for environmental management (COSMAX China).
• Established an ethics code and human rights policy.
• Restructured its compliance organization in response to the revised Improper Solicitation and Graft Act.
• Published the first Corporate Governance Report.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events and strengthened international measures on substance restriction.
• Damage on company image by negative public feedback for manufacture of plastic consumer goods.
• Difficulty in securing the dominant position due to prior occupation of technology by competitors.
• Delayed implementation of demands of potential customers due to delayed application of cutting-edge technology.
• Risk of not fulfilling the demands of customers to enhance external ratings and initiative participation.

Mitigation Strategies

• Developed alternative sourcing strategies and alternative materials.
• Purchase of RSPO-certified palm oil and certified Mica.
• Established the COSMAX ECO Project roadmap for setting and executing mid- to long-term goals.
• Launched the Digital Business Section to respond to digital conversion.
• Strengthened facility inspection in preparation to abnormal climate and subscribed to a catastrophe insurance.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct for suppliers
• Increased use of RSPO-certified palm oil
• Increased purchase of Mica from child labor-free companies

Climate-Related Risks & Opportunities

Physical Risks

• Physical and capital damages caused by abnormal weather

Transition Risks

• Increased raw material costs
• Changes in consumer behavior

Opportunities

• Use of low-carbon energy
• Demands for eco-friendly products
• Changes in consumer preference

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Sustainable Development Goals (SDGs), ISO 26000:2010

Certifications: ISO 14001, ISO 45001, Fairtrade @ Work

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Goal 7
• Goal 12
• Goal 13

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Microplastic-free products
• Eco-friendly packaging
• Personalized cosmetics

Awards & Recognition

• UN Global Business Awards
• Commendation of the Minister of Trade, Industry and Energy
• Commendation for Outstanding Environmental Company
• Presidential citation for the day of Invention
• IR52 Jang Yeongsil Award
• Special Award for Carbon Management

Environmental Metrics

ESG Focus Areas

• Climate Change Response
• Customer communications
• Green products and packaging

Environmental Achievements

• Reduced emissions per unit of production by approximately 15% compared to 2017.
• Established 16 eco-friendly material pools.
• Released 16 Green Package Guide.
• Launched 4 products with COSMAX ECO criteria.
• Manufactured eco-friendly recycled paper containing 100% recycled pulp.
• Stopped registering and prescribing new microplastic ingredients for rinse-off products.

Social Achievements

• Received a B rating for "Climate Change Response" category of CDP for two consecutive years and a B- rating in the water management category.
• Received the "CDP Carbon Management Sector Annuus Award" and the "Special Award for Water Management" in 2022.
• Launched the personalized cosmetics platform '3WAAU'.
• Certified as a family-friendly company by the Ministry of Gender Equality and Family Affairs.
• Implemented various programs for employee well-being.

Governance Achievements

• Established a Code of Ethics.
• Obtained Fairtrade certification.
• Established a Compliance and Ethics Management Philosophy.
• Implemented a Whistleblower System.
• Implemented an information security management system (ISMS) and obtained ISO27001 certification.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events and the pandemic.
• Growing concerns about surfactant safety.
• Increasing demand for personalized cosmetics.
• Growing emphasis on environmental sustainability in consumer goods.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Developed the world's first microbial emulsification system.
• Launched '3WAAU', a hyper-personalized cosmetics platform.
• Formulated and implemented a medium-to-long-term strategy for eco-friendly packaging.
• Established a greenhouse gas emission inventory and expanded it to overseas operations.
• Implemented various digital transformation and AI projects in the production process.

Supply Chain Management

Supplier Audits: 138 companies evaluated in 2022

Responsible Procurement

• Supplier Code of Conduct
• Sustainable purchasing practices
• Increased purchase of RSPO-certified palm oil and child-labor-free mica

Climate-Related Risks & Opportunities

Physical Risks

• Physical and capital damages caused by abnormal weather

Transition Risks

• Strengthened obligations to report GHG emissions
• Increased raw material costs
• Changes in consumer behavior

Opportunities

• Use of low-carbon energy
• Demands for eco-friendly products
• Changes in consumer preference

Reporting Standards

Frameworks Used: GRI Standards 2021, UN Sustainable Development Goals (SDGs), TCFD

Certifications: ISO 14001, ISO 45001, ISO 27001, COSMOS, ECOCERT, MUI Halal, EVE VEGAN, Fairtrade @ Work

Third-party Assurance: BSI

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

COSMAX's initiatives contribute to these goals through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Microbial emulsification system
• Eco-friendly packaging
• Personalized cosmetics

Awards & Recognition

• CDP Carbon Management Sector Annuus Award
• CDP Special Award for Water Management
• CES 2023 Innovation Award
• Korea Technology Award
• Prime Minister's Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Packaging
• Product Safety and Quality
• Sustainable Products
• Customer Communication
• Ethics and Compliance
• ESG Risk Management
• Supply Chain Management and Collaborative Growth
• Resource Circulation and Waste Management
• Workplace Safety and Health
• Human Resource Management and Development
• Human Rights Management
• Water Resource Management
• Biodiversity

Environmental Achievements

• Achieved a 'Leadership A-' rating from CDP for climate change response.
• Improved water management rating from 'B-' to 'B' by CDP.
• Developed a natural emulsification system replacing chemical surfactants with microorganisms.
• Reduced COD in Balancheon River from 6 to 4.
• Published a 'Biodiversity Conservation Activities Report'.

Social Achievements

• Launched '3WAAU', a 1:1 customized cosmetics platform.
• Received the 'Halal System Implementation Excellent Company' award.
• Developed the world's first micro biome solution for problem skin, 'Untopinol'.
• Developed a natural hair loss-relieving functional material, 'Ganoxyl'.

Governance Achievements

• Established an ESG Committee in the first half of 2023.
• Achieved ISO 27001 certification for information security management system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events.
• Increased regulatory requirements for product safety.
• Growing demand for sustainable and conscious beauty products.
• Rising consumer expectations regarding product safety and environmental impact.
• Maintaining a balance between business growth and environmental sustainability.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Implemented a robust product safety and quality management system.
• Established the CCB System for conscious beauty.
• Developed a mid- to long-term roadmap for phasing out microplastics.
• Expanded the use of RSPO-certified palm oil and implemented a policy to ban uncertified mica.
• Invested in renewable energy sources and energy efficiency improvements.
• Strengthened ESG risk management and compliance systems.

Supply Chain Management

Supplier Audits: 46 suppliers in 2023

Responsible Procurement

• Supplier Code of Conduct
• ESG requirements in supplier contracts
• ESG assessments of suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (flooding, typhoons)
• Water scarcity

Transition Risks

• Regulatory changes
• Market shifts towards sustainable products
• Increased costs associated with carbon reduction

Opportunities

• Development of energy-efficient products and processes
• Increased demand for sustainable products
• Cost savings from energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB, UNGC, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 22716, ISO 9001, ISO 27001, CGMP, COSMOS, FDA OTC, Halal Certification (MUI, CICOT), EVE VEGAN

Third-party Assurance: BSI

UN Sustainable Development Goals

• Goal 3
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

The report explains how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Microplastic-free products
• Vegan products
• Products using RSPO-certified palm oil
• Products using sustainably sourced mica

Awards & Recognition

• CDP Climate Change Leadership A- rating
• CDP Water Management B rating
• 'Halal System Implementation Excellent Company' award
• IR52 Jang Yeong-sil Award