Kolmar group is accelerating its ESG management across all business sectors, including cosmetics, biopharmaceuticals, and health supplements.
Kolmar Korea Holdings and its key affiliates are garnering high praise domestically and internationally for their notable achievements in all aspects of ESG.
The group has received high grades from various domestic ESG evaluation agencies. In the “2023 Second-Half Assessment” conducted by SUSTINVEST, one of the top three ESG evaluators in the country, Kolmar Korea Holdings, Kolmar Korea, and HK inno.N achieved the highest “AA”rating, while Kolmar BNH earned an “A”. Previously, in an evaluation led by the Korea Institute of Corporate Governance and Sustainability(KCGS), the former three companies received an A grade and Kolmar BNH a B+ grade. All four companies demonstrated exceptional environmental, social, and governance performance.
In June, Kolmar Korea Holdings, the holding company, published its first sustainability report, summarizing the entire group’s ESG strategies, activities, and achievements. Earlier in May, the company also held its “1st Compliance Day” to reinforce adherence to the Fair Trade Compliance Program and to strengthen its commitment to ethical management.
These efforts led to its selection in November as part of the '2024 Lead Group' by the UN Global Compact (UNGC) Korea Association. The UNGC selects companies actively engaged in sustainable management and ESG value dissemination as part of its Lead Group.
Kolmar Korea, the cosmetics affiliate, was lauded for its innovative eco-friendly R&D, such as commercializing the world's first paper tube that reduces plastic use by 80%. Other efforts include developing alternatives to microplastics, such as stone cells of pear and natural mineral-derived silica, and developing biodegradable cosmetics that decompose 99% in nature.
In the social (S) domain, it was recognized for establishing a system to assess and support the ESG capabilities of its partners, a first among cosmetics ODM companies. In governance (G), last year was declared the inaugural year of ESG, creating a dedicated ESG department under the CEO to identify ESG improvement tasks across all business areas. This year, the company established an ESG committee within the board of directors, enhancing the company-wide ESG management system.
HK inno.N, the biopharmaceutical affiliate, has introduced a solar power generation system at its Osong IV Plant, the largest in Korea. The company's efforts in establishing a biodiversity policy and an environmental management body have also been highly praised.
The social (S) sector holds a "Risk Assessment Contest" to establish a self-regulating prevention system. In the governance (G) sector, establishing a Sustainable Management Committee under the board has successfully created a decision-making structure that extends from the working level to management and the board.
Kolmar BNH, the health supplement affiliate, uses by-products from the manufacturing process of "HemoHIM," Korean number one individually-approved health supplement, as eco-friendly fertilizers. It has also developed a technology for recovering and recycling ethanol used in HemoHIM production, substantially improving carbon reduction from 60% to 94%.
These efforts earned the company Green Technology and Green Product Certification from Korea's Ministry of Agriculture, Food and Rural Affairs(MAFRA) for its production technology and HemoHIM.
In the social (S) sector, the company supports health supplements for marginalized groups and conducts regular volunteer activities with its employees. In the governance (G) sector, it has made strides in improving governance structures, including adopting a Fair Trade Compliance Program and appointing an external director as the board's chairman.
“All our affiliates have focused their capacities on ESG management to establish a sustainable management system and have achieved remarkable results from various activities," said an official from Kolmar Korea Holdings. "We will continue to contribute to the spread of ESG values under our vision of 'Connect for Better Future.'"
