Fila Holdings Publishes 'Sustainable Management Report'... Strengthening ESG Management

[Asia Economy Reporter Seungjin Lee] FILA Holdings is accelerating its ESG (Environmental, Social, and Governance) management practices by publishing the 'FILA Sustainability Management Report,' which consolidates its ESG management achievements and vision.

FILA Holdings announced on the 20th that it has published the '2020 FILA Sustainability Management Report,' summarizing its ESG management achievements and vision over the past year. This is the second report following the first one published last year at the global group level, released in both Korean and English to share the group's sustainability management direction, commitment, and actions with stakeholders worldwide.

FILA Holdings recently joined the UNGC (United Nations Global Compact). The company plans to contribute to spreading a culture of sustainable management by complying with international norms regarding the environment, labor, human rights, and anti-corruption. The UNGC is a UN-affiliated autonomous organization that encourages global companies to adopt sustainable corporate policies and report their implementation to international organizations. It supports the integration and sharing of ten principles across four areas?human rights, labor, environment, and anti-corruption?into corporate management.

FILA designated 'YOUR FILA IMPACT' as the '2020 ESG slogan.' This expresses the company's commitment to exerting a positive influence in presenting and realizing new values for sustainable management and moving toward a better future. To facilitate internal and external communication at the group level, FILA plans to establish an appropriate slogan each year that reflects the stage and status of ESG.

Through this, FILA aims to make 2021 the inaugural year for strengthening ESG capabilities by establishing an integrated ESG strategy and management system, setting key performance indicators (KPIs), and laying a more systematic and practical foundation for sustainable management.

Cover of FILA Holdings 2020 Sustainability Management Report. (Photo by FILA Holdings)

Launch of Eco-Friendly Products and Establishment of Waste Management Program

In the era of 필(必)environmental consciousness, FILA is operating a waste management program and launching eco-friendly material products to protect the environment.

FILA Lab, the footwear research and development (R&D) center, develops materials using various waste materials such as recycled leather, cork, and coffee grounds, and researches and develops eco-friendly products using these materials to provide to the group. Last year, FILA released shoes made with recycled paper, and shoe inserts that maintain shoe shape are made from 100% recycled materials. The apparel line also features many products made from 100% recycled eco-friendly yarns, with the recently launched 'Project 7: Back to Nature Collection' being a representative example.

To reduce greenhouse gas emissions, FILA has established and operates a 'Waste Management Program' targeting overseas manufacturers and partners, which will be expanded to all partners in China and Vietnam by 2023. Additionally, FILA has obtained the global standard 'Responsible Down Standard (RDS) certification' to produce down products ethically and environmentally responsibly.

Establishment of FILA Group Global Code of Conduct and Human Rights Policy

FILA Holdings has established the 'FILA Group Global Code of Conduct' and 'FILA Group Global Human Rights Policy.' Previously operated separately by each corporation, these have been integrated to create a more refined common standard at the group level, applied to all FILA employees and stakeholders worldwide.

The Code of Conduct encompasses the requirements to foster a healthy organizational culture, and the human rights policy was established based on the UN Universal Declaration of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises to respect and promote human rights. FILA plans to introduce a system to evaluate whether these policies are properly observed and the results within the FILA Group supply chain, aiming to manage the supply chain more transparently and systematically.

Global cooperation on sustainability is also expanding. FILA holds the GCM (Global Corporate Meeting) twice a year, where global subsidiaries gather to discuss FILA business. At the GCM held online on the 12th, FILA shared its ESG management system, goals, and roadmap with key global stakeholders to build consensus on sustainable management. The company reaffirmed its commitment to transparent management and social responsibility and encouraged comprehensive participation at the group level, including subsidiaries and partners.

Implementation of Electronic Voting System and Strengthening Governance Diversity

FILA is also making efforts to improve governance by implementing an electronic voting system and enhancing governance diversity. The 2021 regular shareholders' meeting held at the end of March adopted the electronic voting system. FILA appointed female outside directors and expanded female managerial staff to strengthen governance diversity.

Meanwhile, FILA Holdings has formed a 'Global Sustainability Task Force Team (TFT)' targeting major corporations within the group to systematically implement group-wide sustainable management. Personnel from HR, general affairs, marketing, and legal departments collaborate to establish and execute sustainable management systems for FILA Group and its subsidiaries.

A FILA Holdings representative stated, "We aim to create and practice value for people, society, and the environment at every stage of the value chain, from production to distribution and consumption, contributing to sustainable management." They added, "Through continuous reflection and communication, we plan to build a more integrated and strategic system and actively encourage the entire group and partners to participate in ESG practice management."

This content was produced with the assistance of AI translation services.