Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Circular Economy
• Social Contribution Activities
• Compliance

Environmental Achievements

• Reduced greenhouse gas emissions by 5.7% (1,722 tons) at overseas sewing factories.
• Reduced water usage by 213,990 m³ through wastewater treatment and recycling systems.
• Reduced physical samples by 50% and increased 3D samples by 300% using 3D printing technology.
• Increased eco-friendly fabric purchases by 66%.

Social Achievements

• Donated 50 billion won worth of clothing to vulnerable groups in 7 countries.
• Donated 10,000 books annually for 5 years to the local community in Vietnam.
• Launched various employee wellbeing initiatives including health checkups, employee clubs, and overseas training for long-term employees and excellent employees.

Governance Achievements

• Established an ESG committee within the board of directors.
• Implemented ethics guidelines and a whistleblowing system.
• Established a conflict minerals policy.

Climate Goals & Targets

Environmental Challenges

• Difficulty in making satisfactory progress in energy and greenhouse gas reduction due to the ongoing COVID-19 crisis.

Mitigation Strategies

• Developed various eco-friendly strategies, including setting 2029 carbon reduction targets, installing solar panels in new factories, and using renewable energy certificates.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Eco-friendly fabric purchases
• OCS and RCS certifications for factories and partners

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI Standards (Core), AA1000AP, UN SDGs, ISO 26000

Certifications: OCS, RCS, BCI, Bluesign, GRS, FSC, RDS

Third-party Assurance: (주)한컨설팅 그룹

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

Not disclosed

Sustainable Products & Innovation

• Products using recycled materials, GRS certified fabrics, RDS down, and eco-friendly denim.

Awards & Recognition

• 2020 Korea Sports Promotion Award
• 2021 Maeil Business Newspaper Korea's 100 Best CEOs Award
• 2021 Management Award ESG Sector CEO Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Human Rights
• Waste Management
• Ethics and Compliance
• Workplace Safety
• Diversity and Inclusion
• Sustainable Products and Raw Materials
• Governance

Environmental Achievements

• Reduced carbon emissions by 2.5% from 2022 to 2023 (Hansae E&C)
• Reduced energy consumption by 10.5% from 2022 to 2023 (Hansae E&C)
• Reduced water consumption by 16.4% from 2022 to 2023 (Hansae E&C)
• Reduced waste by 3.5% from 2022 to 2023 (Hansae E&C)
• Increased renewable energy use through solar panel installation and REC purchase (Hansae E&C)
• 30% of Hansae MK's products to be made with eco-friendly materials by 2030
• Implementation of a circular economy model for clothing (Hansae E&C)

Social Achievements

• Launched a work-life balance TF to improve policies and culture (Hansae Yes24 Group)
• Established grievance mechanisms with 100% resolution rate (Hansae Yes24 Group)
• Implemented various employee wellbeing initiatives (Hansae Yes24 Group)
• Expanded diversity and inclusion initiatives, including increased female representation in management (Hansae Yes24 Group)
• Strengthened partnerships with local communities for social impact (Hansae Yes24 Group)
• Conducted employee training programs totaling 6,218,308 hours (Hansae E&C)

Governance Achievements

• Established a Sustainability Management Committee within the board (Hansae Yes24 Group)
• Implemented a long-term dividend policy (Hansae Yes24 Holdings and Hansae E&C)
• Improved transparency in corporate governance (Hansae Yes24 Group)
• Strengthened compliance management systems (Hansae Yes24 Group)
• Joined the UN Global Compact (Hansae Yes24 Holdings)

Climate Goals & Targets

Environmental Challenges

• Climate change-related risks, including physical risks (extreme weather) and transition risks (regulatory changes)
• Supply chain disruptions
• Human rights risks in the supply chain
• Low birth rate in South Korea
• ESG-related controversies or legal issues (e.g., failure to meet mandatory disability employment quotas)

Mitigation Strategies

• Developed alternative sourcing strategies
• Implemented a digital supply chain management system to enhance traceability and manage human rights risks
• Established a work-life balance TF to address low birth rate challenges
• Developed and implemented corrective action plans to address ESG-related controversies and legal issues

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of Conduct
• Supplier Sustainability Requirements
• Verification of cotton, yarn, and fabric origins

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Transition to renewable energy

Reporting Standards

Frameworks Used: GRI Standards 2021, EU CSRD, AA1000AP, UN SDGs, SASB, TCFD

Certifications: OCS, RCS, FSC, GRI

Third-party Assurance: BSI

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 8
• Goal 9
• Goal 10
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• Eco-friendly materials in clothing production
• Recycled materials in product manufacturing

Awards & Recognition

• 2023 K-ESG Management Award (Hansae E&C)
• 2023 Korean PR Association Award (Hansae Yes24 Group)