Climate Change Data

Environmental Metrics

ESG Focus Areas

• Education
• Social Contribution
• Corporate Governance

Social Achievements

• Donated KRW 0.2 billion to Korea Scout Association
• Sponsored the first National Mothers’ Badminton Championship
• Held the 2004 Noonnoppi Cup National Soccer Tournament for Elementary Schools
• Provided free education for about 140 autistic children
• Implemented the “nationwide campaign for children’s safe street crossing” at access roads to 500 elementary schools
• Held the 2004 Noonnoppi Korea Open Badminton Competition

Governance Achievements

• Introduced and executed a strongly ethical style of corporate governance
• Formulated a code of ethical conduct
• Introduced ERP-DREAMS and SEM Project
• Officially became a full member of IFA (International Franchise Association)

Climate Goals & Targets

Environmental Challenges

• Continued economic slowdowns at home and abroad
• Fragile economic recoveries
• Peaking oil prices
• Lackluster consumer demand

Mitigation Strategies

• Ushered in bold change within overall systems and structures
• Initiated the industry’s first enterprise resource planning (ERP) system: “DREAMS”
• Sweeping reorganization of the “Noonnoppi Mobile system” and “Edupia”
• Proactively carried forward the great workplace (GWP) campaign
• Careful application of just management, transparent management and customer satisfaction management

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 4: Quality Education

Daekyo's focus on providing quality education services contributes to SDG 4.

Sustainable Products & Innovation

• Futurekids
• Soluny
• Edupia
• E.nopi Math

Awards & Recognition

• First-place ranking in the 2005 Korea Brand Power Index
• 2004 Trust Company Award
• Korea’s Most Admired Company
• Korea’s Great Work Place Award
• Korea Management Award

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Ethical Management
• Human-oriented Management
• Knowledge Management
• Sustainability Management

Social Achievements

• Selected as one of the ‘Children’s Cognitive Ability Enhancement Service’ providers of Voucher program sponsored by the Ministry of Health, Welfare, and Family Affairs; launched ‘Noonnoppi Creative Reading’ program.
• Won numerous awards including Korea Brand Power Index (KBPI) No.1 brand for 10 consecutive years, Educational Brand Awards Chosen by the Parents, and Good Company by women customers.
• Joined the Federation of Korean Industries (FKI) 1% Club for social contribution activities; various social contribution activities through Daekyo Culture Foundation (scholarships, academic support, literary activities, volunteer activities).
• Noonnoppi Love Community Service Team engaged in free educational services for children with autism and other community support activities.
• Founded ‘Safe Kids Korea’ to prevent children’s safety concerns.
• Supported Daekyo Noonnoppi Women’s Badminton Team and Daekyo Kangaroos Women’s Soccer Team.

Governance Achievements

• Emphasis on transparency in governance and ethical behavior; implemented Daekyo’s code of ethics; established an operational system to ensure compliance with internal rules and public laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Reduction in Noonnoppi membership during 2007 due to unstable business conditions at home and abroad (global economic instability, high oil and raw material prices).
• Intensifying market competition in the educational service industry.
• Rapidly changing market conditions with the launch of a new administration and new government educational policies.

Mitigation Strategies

• Reinforced the competitiveness of Noonnoppi business; carried out new businesses; actively practiced responsible management by divisions.
• Expanded the number of Noonnoppi branches; selected as a nationwide service provider for the ‘Children’s Cognitive Ability Enhancement Service’ for 2008.
• Set sales targets for 2008 (912 billion won total, 720 billion won from Noonnoppi, 192 billion won from new businesses); implemented strategies to differentiate from competitors (upgrading existing products, developing new programs, adjusting products to changing education environments, utilizing information and communication technologies).

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• Numerous awards including Korea Brand Power Index (KBPI) No.1 brand for 10 consecutive years, Educational Brand Awards Chosen by the Parents, and Good Company by women customers.
• Grand Prize at the Korea HRD Awards (2008)
• Various Web Awards for Edupia
• Korean Educational Industry Award (2007)
• Korea Great Workplace Award (2007)
• Korean Customer Satisfaction Index (KCSI) top ranking (2007)
• Women-Chosen Good Company Awards (2007)
• Brand of the Year Awards (2007)
• Best Women-friendly Company Awards (2007)
• National Brand Competitiveness Index (NCBI) top ranking (2007)
• Korea Innovative Company Awards (2007)
• Korea Advertising Awards (2007)
• Parents’ Education Brand Awards (2007)
• Korea Web Awards (2008)

Environmental Metrics

ESG Focus Areas

• Social Responsibility
• Ethical Management
• Human-oriented Management
• Knowledge Management

Social Achievements

• Selected as a nationwide service provider for the Children’s Cognitive Ability Enhancement Service in 2008 and 2009 (Voucher program by the Ministry of Health, Welfare, and Family Affairs).
• Developed the Noonnoppi Creative Reading program.
• Support for children in multicultural families (free lessons).
• Daekyo Childcare Centers established for employees' children.
• Noonnoppi Love Community Service Team's activities (support for children with autism, traffic safety campaigns, assistance to families, visits to elders).
• Safe Kids Korea initiative (children's traffic safety campaigns).
• Sponsorship of women’s badminton and soccer teams.

Governance Achievements

• Emphasis on transparency in governance and ethical behavior.
• Adoption of a Code of Ethics.
• Operational system to ensure compliance with internal rules and public laws and regulations.

Climate Goals & Targets

Environmental Challenges

• Severe economic downturn impacting new memberships and overall growth.
• Waning competitiveness of major products (Noonnoppi).
• Lackluster performances of Soluny, Sobics, and Gongbuwarac.
• Rising international prices for materials driving up production costs.
• Losses in domestic subsidiaries (Fermatedu, Daekyo Bookscan).

Mitigation Strategies

• Mid-/long-term vision focusing on profitability and growth.
• Campaign to achieve 2 million Noonnoppi subscribers.
• Voucher program and stock grant incentive system.
• Strategies to differentiate the company from competitors (upgrading existing products, developing new programs).
• Improving management efficiency (CRM and ERP systems).
• Restructuring of Fermatedu (focus on academy business, development of new growth engines).
• Multifaceted online marketing campaign for Daekyo Bookscan (price comparison site, expanded book database).

Supply Chain Management

Climate-Related Risks & Opportunities

Awards & Recognition

• No.1 brand in the “worksheet with tutoring” segment for eleven consecutive years (K-BPI).
• Grand prize for four consecutive years in the Educational Brand Awards by Parents.
• First in the Brand Olympics.
• Grand prize for five straight years in the Brand of the Year.
• Top of the National Brand Competitiveness Index (NBCI) for two years.
• Grand prize at the 6th Korea HRD Awards (HRD Center).

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Education
• Culture
• Social Contribution
• Talent Cultivation

Social Achievements

• Education talent sharing campaign (mentoring program for underprivileged children)
• Daekyo MUN Camp (global talent cultivation project)
• Noonnoppi Love Volunteer Corps (voluntary charity activities)
• Support for national multicultural family support center
• Children protection service, Dream Start
• Support of children in socially disadvantaged class
• Sponsoring the multicultural badminton competition

Governance Achievements

• Transparent and responsible management by the board of directors
• Operation of three committees within the board of directors for efficient management

Climate Goals & Targets

Environmental Challenges

• Fiercer competition in the education industry due to severe stagnation in domestic consumption and market size reduction
• Reduced market size for the book publication and distribution sector due to economic recession

Mitigation Strategies

• Company-wide change and innovation
• Focus on core aspects and enhancing internal stability of customized learning programs
• Diversification of products, services, and sales channels
• Expansion of customer engagement channels (launching Daekyo Baby TV)
• Expansion of overseas strategic markets
• Strengthening customized support centering around the global training center and localization strategy

Supply Chain Management

Climate-Related Risks & Opportunities

UN Sustainable Development Goals

• SDG 4: Quality Education

Daekyo's various educational programs and social contribution initiatives contribute to providing quality education and promoting lifelong learning.

Awards & Recognition

• Most respected company in Korea (7 consecutive years)
• Education Brand Award (Noonnoppi and Caihong)
• Outstanding Product with Customer Value (Daekyo Edupia)
• Governmental award (Daekyo Vietnam)
• Top 100 franchise brands (Daekyo America)
• Top 10 P-Mark Educational Institution Award (Daekyo Hong Kong)
• Outstanding Institution for Sponsoring Culture and Arts

Environmental Metrics

ESG Focus Areas

• Education
• Culture and Arts
• Local Community
• Sports
• Charity

Social Achievements

• Launched ‘Eye Level Traumwelt’, a complex family cultural space for children.
• Opened ‘Midas Hotel&Resort’ and ‘Kids JAM’, a premium kids’ academy.
• Noonnoppi ranked No.1 in elementary education service sector for 19 consecutive years.
• Education talent sharing campaign with 970 mentee participation.
• Daekyo MUN Camp with participation from 11 countries.
• Noonnoppi Love Volunteer Corps with 6,340 volunteers.

Climate Goals & Targets

Environmental Challenges

• Global security issues (war and terrorism) hindered growth.
• Market anxiety and reduced consumption in Korea due to the North Korean nuclear issue and THAAD disputes.
• Confusion in the Korean education market due to new policies.
• Diversified consumer consumption patterns.
• Weaker sales in 2017 compared to the previous year, although operating profit increased.

Mitigation Strategies

• Focusing on core drivers for growth in 2018 (Noonnoppi: core absorption; Media: establishing core; Overseas: core expansion).
• Reinforcing product identity and marketing plan for Noonnoppi.
• Launching ‘Caihong Video-on’ for Caihong.
• Building ‘Eye Level Traumwelt’ for the media division.
• Expanding proven core capabilities to the global market for overseas business.

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic's potential impact on the learning center business and educational service businesses such as weekly home-visit learning materials.

Supply Chain Management

Climate-Related Risks & Opportunities