Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental Sustainability

Environmental Achievements

• Reduced greenhouse gas emission units by 17% in 2020 compared to 2018.
• Reduced greenhouse gas emissions by 8,380 tCO2eq through various initiatives.
• Reduced nitrogen oxide emissions by 77.4% compared to 2019.
• Reduced water pollution discharge by 13% compared to 2019.
• Achieved 85.5% recycling rate for soju glass bottles and 87.8% for beer glass bottles.
• Converted all Soju PET container products to transparent PET for easier recycling.
• Reduced weight of PET containers and can containers, saving plastic and aluminum.

Social Achievements

• Investing in start-ups focusing on smart farm solutions and sustainable environmental technologies.
• Participating in seashore purification projects.
• Providing technical support to SMBs in the local community for environmental improvements.
• Engaging in activities for removing exotic plants to protect biodiversity.

Governance Achievements

• Established an ESG committee in 2021 to address environmental management issues.
• All six domestic business sites have completed integrated certification of ISO 14001 and ISO 45001.
• Acquired Environmental Product Declaration (EPD) for 21 major products.

Climate Goals & Targets

Environmental Challenges

• Increased water usage in 2020 despite reduced water usage per unit of production.
• Increased waste generation source unit due to production growth.
• Need for continuous improvement in greenhouse gas emission reduction.

Mitigation Strategies

• Improving water-conveyance equipment to minimize water leakage.
• Improving the recycling ratio of glass containers.
• Investing in high-efficiency energy facilities and implementing process improvements to reduce greenhouse gas emissions.
• Developing alternative substances and improving chemical handling facilities to reduce chemical emissions.

Supply Chain Management

Supplier Audits: 33.3% of new suppliers in 2020

Responsible Procurement

• Green purchases of consumables, eco-friendly detergents, LED lights, and forklifts.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standard Core Option, SDGs

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KFQ

Sustainable Products & Innovation

• Eco-friendly products with EPD certification

Awards & Recognition

• Various awards for environmental preservation and chemical substance management from local governments and ministries.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Water Resource Management
• Waste Reduction
• Chemical Risk Management
• Supply Chain Sustainability

Environmental Achievements

• Improved GHG emissions by 20% compared to the 2018-2020 average.
• Achieved 93.3% of the 2025 greenhouse gas emission reduction goal.
• Exceeded the nitrogen oxide emissions reduction goal by 156.1% (based on the target for 2025).
• Reduced water consumption by 13% compared to the previous year.
• Reduced water pollutant emissions by 28.6% compared to the 2025 target.
• Reduced chemical emissions by 84.6% compared to the 2025 target.
• Reduced waste discharge by 83.5% compared to the 2025 target.
• Increased beer bottle reuse rate by about 10%.

Social Achievements

• Clean Recycling Campaign with 3,955 participants, collecting 4.1 tons of plastics.
• Collaboration with startups, investing 5.47 billion won (as of April 2022).
• Participation in community projects like the Beautiful Forest Creation Project.

Governance Achievements

• Established an ESG Committee to manage environmental issues.
• Implemented an environmental information disclosure system.
• Strengthened compliance evaluation and monitoring to prevent violations of laws.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions due to climate events (e.g., water shortage, drought, flood).
• Reduction of raw materials due to natural disasters.
• Disruption in the supply of energy sources.
• Increased costs to secure water resources with supply imbalance.
• Revenue changes due to reduction in product production.

Mitigation Strategies

• Mid- to long-term strategies for water resource recovery, sustainable packaging, and carbon neutrality by 2050.
• Investment in energy reduction facilities and replacement of internal combustion cars with eco-friendly vehicles.
• Development of guidelines for calculating Scope 3 emissions.
• Facility improvements to reduce greenhouse gas emissions and conserve water resources.
• Recovering biogas generated in wastewater treatment and reusing it as an energy source.

Supply Chain Management

Supplier Audits: Periodic environmental assessments and due diligence for major cooperative companies (e.g., chemical suppliers, waste treatment companies); 33.3% of new suppliers underwent environmental standards screening in 2020.

Responsible Procurement

• Environmental management evaluations for cooperative companies; requirement for at least 70 points on evaluation; support for environmental management system implementation.

Climate-Related Risks & Opportunities

Physical Risks

• Water shortage
• Drought
• Flood

Transition Risks

• Increased costs for water resources
• Regulatory changes
• Carbon border tax

Opportunities

• Water resource recovery projects
• Sustainable packaging development
• Carbon neutrality initiatives
• Energy efficiency improvements

Reporting Standards

Frameworks Used: GRI Standards Core Option, TCFD

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KFQ (Korean Foundation for Quality)

UN Sustainable Development Goals

• Goal 6 (Clean Water and Sanitation)
• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)

Initiatives related to water resource management, energy efficiency, waste reduction, and greenhouse gas emissions contribute to these goals.

Sustainable Products & Innovation

• Environmental Product Declaration certified products

Awards & Recognition

• Excellent Environmental Preservation Business Place Commendation (Icheon & Masan Factories)
• Excellent Chemicals Management Business Place Commendation (Cheongju Factory)
• Commendation for meritorious workers on Labor Day
• Received the Grand Prize in Commerce and Industry (Iksan Factory)
• Received Gangwon-do Energy Grand Prize (Gangwon Factory)
• Commendation for meritorious people on Environment Day (Gangwon Factory)
• Commendation for industrial accident prevention (Gangwon Factory)
• Commendation for environmental technical support (Gangwon Factory)
• Commendation for an exemplary entrepreneur (Jeonju Factory)
• KAB AWARD ESG Management Practice Grand Prize (head office)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced GHG emissions by 5,090 tCO2eq in 2023
• Reused 71,824 tons of malt residues and waste yeast
• Achieved 100% in handling environmental law violation cases
• Obtained 23 environmental product declaration (EDP) marks

Social Achievements

• 44,536 beneficiaries from donation projects
• Completed application for family-friendly company certification
• Established a Supplier Code of Conduct
• Chamisul & Terra ranked among the ‘2023 Top 100 Brands in Korea’
• JINRO ranked as World’s No. 1 Spirits for 23 Consecutive Years

Governance Achievements

• Established an ESG Committee within the Board of Directors
• Designated the Chief Information Security Officer
• Reinforced activities of the Risk Management Committee
• Launched a Risk Management Committee

Climate Goals & Targets

Environmental Challenges

• Water resource management
• Energy and GHGs
• Response to climate change
• Compliance and ethics
• Occupational safety and health
• Product safety and quality
• Chemicals and hazardous substances
• Responsible marketing
• Company-wide risk management
• Sustainable products

Mitigation Strategies

• Efforts are made to efficiently use water resources by reducing water consumption and minimizing groundwater usage.
• Environmental impact is minimized by reducing energy consumption and carbon emissions.
• To address climate change, mid- to long-term goals have been set for HITEJINRO, and actions have been implemented accordingly.
• To transform into a transparent and fair company, the importance of practicing ethical management is emphasized at the company-wide level every year.
• HITEJINRO is committed to minimizing the occurrence of serious accidents and providing significant attention and support to the industrial safety and health of our suppliers.
• Every effort is made to produce products that are not harmful to the health and hygiene of customers.
• Measures are taken to safeguard workers from chemicals and hazardous substances while minimizing their negative impact on the environment.
• HITEJINRO strives to comply with national laws and guidelines.
• Proactive review and preparation of countermeasures are conducted for risks that could negatively impact sustainable management activities.
• Research is underway on sustainable packaging solutions, with the goal of applying these solutions to a broader range of products.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Equipment damage at our key business sites caused by natural disasters
• Unstable energy supply stemming from abnormal weather conditions
• Difficult to secure water resources arising from reduced rainfall

Transition Risks

• Tightening regulations on carbon credits
• Reduction in emissions allowance in line with GHG reduction targets
• Growing demand for carbon mitigation from customers in accordance with Scope 3 disclosure
• Demand for changes in operational processes
• Failure to invest in new technologies
• Increasing demand for sustainable products from consumers
• Uncertainty in demand for sustainable products
• Increasing negative feedback and undermined social reputation

Opportunities

• Reduction in water consumption through improved processes
• Increasing water recycling rate
• Reduction in energy consumption through the use of low-carbon energy sources
• Growing demand for sustainable products from consumers

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB’s standard for the alcoholic beverage industry, TCFD disclosure recommendations, UN Sustainable Development Goals (SDGs)

Certifications: ISO 14001, ISO 45001, HACCP, ISO 22000, FSSC 22000

Third-party Assurance: BSI

Sustainable Products & Innovation

• Eco-tap labels
• Products with EPD certification

Awards & Recognition

• Numerous awards listed in the report