Climate Change Data

Environmental Metrics

ESG Focus Areas

• Product Circularity
• Climate Action
• Caring for People
• Supply Chain Transparency
• Business Commitment

Environmental Achievements

• 265% YoY increase in the production of sustainable products (Based on SKU)
• Transition to sustainable packaging materials: 100% Footwear packaging (Shoebox), 70% Apparel and accessories packaging materials
• Scope 3 GHG emissions initial disclosure
• Participation in COP 27

Social Achievements

• Established FILA group CSR strategy
• 373% YoY increase in training expense per employee at FILA Korea
• 97% Customer inquiry response rate
• 100% Implementation of product recall process

Governance Achievements

• Establishment of risk management policy
• Declaration of global tax sustainability principles
• Paid first special dividend

Climate Goals & Targets

Environmental Challenges

• Increased brand competition and unclear target customer selection
• Shorter time to market (TTM) of competitors, higher quality expectations
• Lower work efficiency due to lack of motivation
• Lack of transparency and independence in the BoD
• Resource scarcity and environmental degradation because of increased resource use
• Plastic and paper box packaging materials causing environmental pollution and increased expense
• Waste-generated carbon emissions and handling expenses, risks of hazardous substances
• Safety incidents in the workplace, lack of safety awareness for accident prevention
• Supply chain disruptions

Mitigation Strategies

• Improvement in market share, brand value, and sustainability
• New product development, enhanced product durability, reduced customer dissatisfaction
• Securing talented resources by sharpening competitiveness in business and job market
• Fair business decision making and vibrant communication across the group
• Sustainable product market expansion and increased sustainability
• Increased sustainability with recycled packaging materials
• Efficient management of raw materials and stocks and enhanced product safety
• Improved brand reliability and industrial prevention through minimizing safety risks
• Established Supply Chain TF with regular meetings

Supply Chain Management

Supplier Audits: ESG evaluation and audit for tier 1 suppliers; Third-party audit planned for 2023

Responsible Procurement

• FILA Group Global Code of Conduct
• Human Rights Policy
• Supplier sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, floods

Transition Risks

• Regulatory changes, market shifts, reputational risks, technological changes

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB Standards for Apparel, Accessories & Footwear Industry 2018, TCFD, CDP, UN Global Compact, UN SDGs

Certifications: Null

Third-party Assurance: British Standards Institution (BSI)

UN Sustainable Development Goals

• Goal 7
• Goal 8
• Goal 10
• Goal 12
• Goal 13
• Goal 16
• Goal 17

FILA's initiatives contribute to these goals through various programs and strategies related to sustainable products, climate action, social responsibility, and governance.

Sustainable Products & Innovation

• Footwear with recycled materials; Apparel with recycled polyester and nylon; Underwear with ECOLON and Tencel

Awards & Recognition

• Inclusion in Dow Jones Sustainability Indices (DJSI) Korea; Top-Rated ESG Company by Sustainalytics