"Strengthening Ethical Management System" Orion Group Establishes ESG Committee

[Asia Economy Reporter Eunmo Koo] Orion Group announced on the 28th that it has established ‘ESG (Environmental, Social, and Governance) Committees’ under the boards of directors of both its holding company Orion Holdings and its operating company Orion.

The ESG Committees serve as the highest deliberative bodies related to ESG management and act as the core control towers of Orion Group’s ethical management. Through regular semi-annual meetings and ad hoc meetings, they will review major achievements and plans regarding environment, society, and governance. The committees consist of three members: two outside directors and one inside director, with an outside director appointed as the chairperson to enhance transparency. A dedicated ESG team will also be operated to provide practical support.

Orion Holdings and Orion received an integrated grade of ‘A’ in the ‘2021 Listed Companies ESG Evaluation’ announced last year by the Korea Corporate Governance Service (KCGS). By establishing and operating decision-making bodies that professionally review ESG activities linked to ethical management, which have been a focus so far, the group aims to achieve sustainable growth.

Orion Group has selected ‘strengthening information disclosure’ and ‘advancing eco-friendly management’ as key ESG management activities for this year. As demands for ESG information disclosure increase from external investors and evaluation agencies, the group plans to transparently disclose key information through its website, company brochures, and other channels. Additionally, to prevent environmental risks, it will obtain certification for its environmental management system (ISO14001) and fully launch the operation of a global integrated carbon emissions management system.

Since 2015, Orion Group has declared ethical management as its management policy and has actively pursued eco-friendly management, co-growth activities with partner companies, and governance improvements. Last year, it established a Green TF team and opened a global integrated carbon emissions management system, creating an efficient system to manage key data such as greenhouse gas emissions, emission permits, and emission facility status at domestic and overseas production plants. It also became the first in the domestic food industry to complete third-party verification of greenhouse gas emissions at domestic and overseas corporate sites in accordance with international standards, certified by the Korea Standards Association. Furthermore, the group annually signs fair trade and co-growth agreements and operates the ‘Orion Win-Win Cooperation Portal,’ an online open bidding system, to practice fair and transparent transactions with partner companies.

Moreover, Orion Group is establishing governance to embed responsible management through a swift and professional decision-making system. In particular, the board of directors has introduced a professional management system to strengthen independence, and the ratio of outside directors is set at 60% to ensure mutual checks and balances between the board and management. The audit committee, a board committee, has also strengthened its independence and expertise by appointing all three members as outside directors, exceeding the mandatory ratio.

An Orion Group official said, “We expect the level of ethical management across all corporations to be significantly enhanced through the operation of the ESG Committees,” adding, “We will pursue sustainable growth as an ethical global food company.”

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