Climate Change Data

Classys Inc.

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:587 tCO2e/year
Scope 1 Emissions:237 tCO2e/year
Scope 2 Emissions:350 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:762 MWh/year
Water Consumption:3,729 m3/year
Waste Generated:15 tons/year
Carbon Intensity:33 tCO2e/KRW million

ESG Focus Areas

  • Climate Action
  • Talent Management
  • Human Rights Management
  • Information Security
  • Occupational Health & Safety Management
  • Supply Chain Management
  • Quality Management
  • Governance
  • Ethical Management

Environmental Achievements

  • Reduced greenhouse gas emissions by 3.2% compared to the previous year despite a 27% increase in sales revenue.
  • Reduced carbon emissions intensity per unit by 24% compared to the previous year.
  • Established a refurbishment process for end-of-life devices, resulting in 60 units sold in 2023.

Social Achievements

  • 100% return-to-work rate after parental leave.
  • Organizational health survey response rate of 93.4% (up 0.9%p) with higher positive feedback in all criteria.
  • 100% resolution of 6 reports of grievances received.
  • 40% year-over-year drop in safety accidents (5 in 2022, 3 in 2023).

Governance Achievements

  • Established and operated the Nomination Committee, Compensation Committee, and Outside Directors Council.
  • Built a board evaluation system.
  • Published the company’s first sustainability report.
  • Acquired and cancelled treasury shares worth KRW 20 billion.

Climate Goals & Targets

Long-term Goals:
  • Achieve carbon neutrality by 2050.
Medium-term Goals:
  • Reduce Scope 1 & 2 emissions to 515 tons by 2030 through intensity reduction.
  • Review the implementation of an internal carbon pricing scheme.
  • Review the purchase of external carbon offset credits.
  • Build Scope 3 inventory and set targets.
  • Participate in value chain reduction activities.
  • Gradually expand markets for refurbished products.
  • Establish eco-friendly product stewardship.
  • Enhance evaluation and compensation systems.
  • Expand job competency-building programs.
  • Obtain Great Place to Work certification.
  • Maintain 100% grievance resolution rate.
  • Enhance diversity, including increasing employment of people with disabilities.
Short-term Goals:
  • Reduce emissions intensity to sale by 1% compared to the previous year.
  • Obtain ISO 14001 certification.
  • Maintain the return-to-work rate after parental leave above 90%.
  • Conduct annual organizational health survey and improve positive feedback.
  • Provide leadership programs to all tiers at least once.
  • Enhance local human resources development through industry-academia collaboration.
  • Conduct annual supply chain risk assessments and improvements.
  • Conduct board of directors performance evaluation.
  • Diversify shareholders’ voting options.
  • Appoint compliance officer.
  • Establish compliance program.
  • Announce anti-money laundering (AML) policy.

Environmental Challenges

  • Stricter regulations on carbon neutrality.
  • Increase in production costs due to higher energy and raw material prices.
  • Damage to production facilities from extreme weather.
  • Brain drain and labor shortages.
  • Supply chain disruptions and delays due to climate change.
  • Supply chain damage from suppliers’ ESG issues.
  • Regulatory risks.
  • Brand damage from product defects, recalls, and regulatory violations.
  • Consumer misinformation from off-label marketing.
  • Depreciation in corporate value and reputation from poor management and illegal practices.
Mitigation Strategies
  • Developed an inventory system for Scope 1 and 2 emissions and a mid- to long-term carbon neutrality roadmap.
  • Strengthened BOD-centered climate risk response governance structure.
  • Implemented lean production and process innovation to reduce carbon emissions.
  • Expanded resource reduction campaigns.
  • Improved building energy efficiency through LED replacement.
  • Replaced some air transport with sea transport.
  • Conducted supply chain risk assessments.
  • Strengthened education and support for high-risk supply chains.
  • Strengthened marketing compliance.
  • Established and distributed internal guidelines for interactions with healthcare professionals.
  • Established and operated the Nomination Committee, Compensation Committee, and Outside Directors Council.
  • Built a board evaluation system.
  • Reviewed corruption risks and established board reporting system.
  • Diversified whistleblowing channels and achieved 100% resolution rate.

Supply Chain Management

Supplier Audits: Annual

Responsible Procurement
  • Supply Chain Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks
  • Damage to production facilities from extreme weather
Transition Risks
  • Stricter regulations on carbon neutrality
  • Increase in production costs due to higher energy and raw material prices
Opportunities
  • New opportunities in environmental businesses
  • Operational cost savings from reduced energy use and transition to renewable energy
  • Process and technological innovations leading to higher productivity
  • Enhanced resilience to physical and transitional risks of climate change

Reporting Standards

Frameworks Used: GRI Standards 2021, AA1000AS v3

Certifications: ISO 13485, GMP

Third-party Assurance: Korea Management Registrar (KMR)

Sustainable Products & Innovation

  • Refurbished products

Awards & Recognition

  • Prime Minister’s Award on 54th Invention Day
  • KOSDAQ Rising Star
  • Excellent Company at 2020 Korea IR Awards
  • 30 Million Dollar Export Tower
  • Global IP Star Company
  • Global Small Giant Company of Korea
  • 50 Million Dollar Export Tower
  • KOSDAQ Rising Star
  • Excellent Disclosure Company in the KOSDAQ market
  • KOSDAQ Rising Star
  • Top Prize (Beauty Category) at Money Today IR Awards
  • 14th Financial Supervisory Service Chairman’s Award for KOSDAQ-listed Companies
  • Excellent Corporate Governance Award at 2022 Korea Institute of Corporate Governance and Sustainability (KCGS) Awards
  • Ultraformer MPT (Shurink Universe) selected as the No. 1 Consumer Recommended Brand in 2023
  • KOSDAQ Rising Star
  • Grand Prize (KOSDAQ Market Category) at Korea IR Awards
  • Top Prize (KOSDAQ Global Segment) at the Money Today IR Awards
  • Minister of SME and Startups Award at 15th Korea KOSDAQ-Listed Company Awards
  • $70 Million Export Tower
  • Excellent Brand (Skin Beauty Medical Devices Category) at 8th Korea Brand Hall of Fame Awards