Sustainability FILA Value & Vision 2020 ESG Highlights Sustainability Activity Sustainability Report

Sustainability

HOME Sustainability

YOUR
FILA IMPACT

Sustainability

FILA manages our business to realize sustainable values for people,
environment, and society throughout the business process.

  • Preserving the Environment

    We strive to minimize environmental impact
    throughout the entire product life cycle.

    Learn More

  • Caring for people

    FILA strives to enhance the value of
    customers, employees and suppliers.

    Learn More

  • Creating Social Impact

    We expand impact activities that can
    positively contribute to settle social issues.

    Learn More

FILA will move forward by
embracing sustainability
as one of the world’s
most influential sports brands.

Kevin Yoon President/CEO, FILA Holdings Corp.

FILA’s sustainability
management is doing right
by the environment,
employment and the world.

Jennifer Estabrook President, FILA USA

We will definitely need
a united front
on implementing
sustainability management.

Cristiana Maggiora Senior Director of Compliance, FILA USA

Sustainable sourcing
and supply chain management
are a marathon, not a sprint.
So, we have started with
small things and
we will move on.

Danny Lieberman Executive Vice President of Apparel, FILA USA

If we treat them well,
they treat us well.
It’s a question of partnership,
not in a one way.

Gary Wakley Executive Vice President of Footwear, FILA USA

We have taken a bottom-up
approach to inclusion
and diversity to listen closely
to our employees and to
create a truly
inclusive work environment.

Linda Layne Senior Vice President of Human Resource, FILA USA

Sustainability do not focus
on one aspect, meaning it
includes environment,
product and people. It covers all
those areas in
many ways of manifesting.

Joe Passio Senior Director of Global Sourcing, FILA USA

FILA Holdings firmly
supports FILA affiliates
to achieve their
sustainability goals
under the motto of
‘One World, One FILA’.

Aaron Lee Head of Corporate Strategy Office, FILA Holdings Corp.

We will build a culture
for ethical management
in which all
employees participate.

Holly Kwon Head of Corporate Ethics Office, FILA Holdings Corp.

We have been managing
environmental and social
risks
throughout the supply
chain
by introducing RDS and
evaluating suppliers’
adherence to the
FILA Group Global
Code of Conduct. In the future,
we will establish a supply
chain ESG management
system to expand our
sustainability
management throughout
the value chain.

J.W. Sung Director of FILA Sport (Hong Kong)

We will pursue
industry-academic cooperation in
development that can create
positive impacts
on the community
by reflecting ESG factors
in our technology and know-how.

JH Shin Head of FILA LAB

Value & Vision

Harmony, Innovation, Passion and Pride are four core values for FILA’s sustainability.
Through integrating core values into the business, we aim to become sustainable global company.

2020 ESG Highlights

Developed and launched
eco-friendly
shoes utilizing

10 Eco-friendly Materials

Material loss rate of eco-friendly product
CLASSIC BOARDER was

Reduced by 70%

45% Reduction
in overall weight
by introducing 100% recyclable
shoe inserts

Developed and launched
jackets using

100% Recycled Polyester

and T-shirts
with fabric recycled with 4.5 plastic
bottles per yard

Use of
FSC-certified Recycled Paper

in the office and replaced more than 90%
of existing paper catalogs with
electronic catalogs at FILA USA

Shoe boxes made with

80%
Recycled Paper

at FILA USA

Achieved 90%

of target on
supplier waste management
program

Waste Data Measurement
23% → 98%
Waste Recycled 50% → 56%
Waste Incinerated 25% → 0%
Waste Landfill 0% → 0%
Waste to Energy 25% → 44%

Appointed a

Female
Independent
Director

with years
of ESG-related experience

Initiation of

Electronic
Voting System

at
the 2021 Annual General Shareholders
Meeting and disclosed shareholder’s
proposal rights on website to promote
shareholder participation

Established and distributed

FILA
Group Global Code
of Conduct

Participated in

UN Global Compact

to commit to implement UN Global
Compact’s ten principles on human
rights, labor, environment, and
anti-corruption into FILA's
sustainability management system

97.6% and 98.8% of
the employees participated in ethical and
compliance training respectively※ All 323 employees (100%) whose participation is mandatory took the online training, except for four who were unable to attend in due to parental leave and relocation

Established and distributed

FILA Group Global Human
Rights Policy

Sustainability
Performance

Preserving the Environment

We strive to minimize environmental impact throughout the entire product life cycle.

Greenhouse Gas Management

FILA manages greenhouse gas (GHG) emissions
and plans to constantly monitor the amount of its
emissions and set the targets to join a global effort
to reduce the effects of climate change.

Greenhouse
Gas Emission

(2020, Unit: tCO2e)

Corporation Scope Emission Facility 2020
FILA Holdings

  • Direct Emissions

    Buildings, Vehicles

    24.9

  • Indirect Emissions

    Electricity Usage

    48.6

  • Subtotal

    73.4
FILA Korea

  • Direct Emissions

    Buildings, Vehicles

    86.7

  • Indirect Emissions

    Electricity Usage

    287.9

  • Subtotal

    374.6
FILA U.S.A

  • Direct Emissions

    Buildings, Vehicles

    1,007.9

  • Indirect Emissions

    Electricity and Steam

    1,627.3

  • Subtotal

    2,635.1

Energy Management

FILA is committed to conserving
energy by monitoring energy use
and improving efficiency.

Energy Use

(2020, Unit: TJ)

Corporation Scope Type of Fuel 2020
FILA Holdings

  • Direct Emissions

    Gasoline, Diesel,
    Natural Gas (LNG)

    0.4

  • Indirect Emissions

    Electricity

    1.0

  • Subtotal

    1.4
FILA Korea

  • Direct Emissions

    Gasoline, Diesel,
    Natural Gas (LNG)

    1.5

  • Indirect Emissions

    Electricity

    6.0

  • Subtotal

    7.5

Supply Chain Waste Management

In partnership with ELEVATE, FILA has
actively implemented the FDRA Waste
Management Program for our suppliers
to reduce GHG emissions.

Supply Chain Waste Management

Achieved 90% of Targets on
Supplier Waste Management Program

Waste Data Measurement 23% → 98%
Waste Recycled 50% → 56%
Waste Incinerated 25% → 0%
Waste Landfill 0% → 0%
Waste to Energy 25% → 44%

From 2019 to 2020, FILA implemented a waste management program for a shoe factory named Guoshi located in Fujian, China. FILA USA and ELEVATE have established a baseline for waste disposal and recycling practices of suppliers, and strengthened their capabilities in waste reduction to improve the baseline.

In 2021, FILA will expand our waste management programs to two factories in Jinjiang and Dajin in China, aiming to carry out the program for all our suppliers in China by 2022.

Eco-friendly Products

FILA continues to make ceaseless
efforts to develop and produce products
using various eco-friendly materials.

Eco-friendly Materials Applied to FILA Shoes

Upper

  • Recycled Paper
  • Recycled Polyester
  • Recycled Synthetic
  • Recycled Leather
  • Recycled Coffee Yarn

Tongue

  • Recycled Cork

Inside-Padding

  • Sustainability Grind Foam

Insole

  • Recycled Coffee Yarn
  • Recycled EVA
  • Recycled PU
  • Recycled Cork

Midsole

  • Recycled Cork
  • Recycled Rubber
  • Recycled Coffee Powder

Outsole

  • Recycled Cork
  • Recycled Rubber
  • Recycled Coffee Powder

Use of Eco-friendly Materials

2020 2021
Number of Products: 2 8
Number of recycled
materials:		 1 10
Production Quantity:
(Unit: Pair)		 1,000 2,000

Material Loss Rate
Decreased Per Pair of Shoes

ZAGATO

41%approx.

(Applied to 880 out of 80,410 pair of shoes)

CLASSIC BOARDER

70%approx.

(Applied to 120 out of 80,208 pair of shoes)

Eco-friendly Packaging

FILA continues to reduce the volume of
packaging materials and use minimal
resources to contribute to creating
positive environmental impact.

Eco-friendly Packaging

FILA introduced eco-friendly packaging materials and eco-friendly shopping bag straps so that consumers can participate in the virtuous cycle of resource management in more diverse outlets.

FILA USA reduced the weight of the shoe insert by 45% by applying eco-friendly materials that can be recycled 100%, which will be applied to all shoes by 2022.

FILA USA has produced hang tags and shoe boxes with 80% recycled paper and 20% wood pulp, with plans to produce all shipping boxes using recycled cardboards by July 2021.

Eco-friendly Workplace

FILA performs our responsibilities and roles to
establish a healthy society through building an
eco-friendly culture and work environment.

Eco-friendly Workplace

Paperless Office

FILA Korea has created a paperless office environment by providing Google Chromebook to all managers and introducing Google G-Suite.


FILA USA uses only FSC certified recycled paper and has replaced more than 90% of existing paper catalogs with electronic catalogs.

※ NY Office: reducing paper use by 91%, Brandon Woods Office: reduction by 22%,
Sparks Office: by 27%

Environmental Campaigns

To encourage employees to practice eco-friendly activities once a day, FILA Korea held a one day one green M.O.V.E campaign. FILA USA discourages employees from using disposable products and introduced a system that separates organic waste and recyclables.

Environmental Education

Starting in 2021, we are planning to conduct environmental education for all employees with series of special morning lectures.

For such activity, we are planning to select various environmental-related special lecture topics such as ‘Zero Waste’.

Caring for People

FILA strives to enhance the value of customers, employees and suppliers.

FILA Customers

FILA endeavors to provide innovative quality products through continuous product research and development, and ensure product safety through quality control and improvement processes based on our management philosophy for customer value first, FILA will constantly build rapport with our customers to understand their needs and improve customer satisfaction.

Product Quality
and Innovation

As an R&D center, FILA LAB carried out research on improving physical functions of the product, and improved practicality and applicability of products by developing innovative items with a focus on commercialization.

Industry-academic Cooperation

FILA LAB has been conducting researches on running stabilization, arch support for flat foot and injury/disorder through industry-academic cooperation with various universities such as University of Calgary, and participating in the publication of five research papers in internationally renowned academic journals.

Customer Satisfaction

FILA measures brand awareness and analyzes Korean consumers’ preferences by conducting the Brand Power Index (BPI) research twice a year. In 2020, FILA was ranked fourth in BPI among 13 global sports brands.

Customer Service Complaints

FILA operates a consumer complaints mechanism to proactively identify and expedite product and service issues. We have checked consumer's complaints through various channels such as integrated call centers and website bulletin boards.

FILA Workforce

FILA continuously endeavors to provide employees with opportunities for personal development and growth and to create a safe and flexible working environment and promote a horizontal organizational culture.



Talent Management

FILA is always willing to work with top talents based on their job competencies and work experiences, in order to secure and maintain outstanding talents in the athletic apparel and footwear industry. FILA has also established systematic training programs based on positions and duties to help employees improve their skills and expertise.

Effective Employee Communication

FILA has implemented campaigns called M.O.V.E to effectively create changes within workplace, and has established various communication platforms so that employees can actively participate in internal communications. Since 2016, moreover, we have conducted a regular employee satisfaction survey once a year to create a positive organizational culture for employees.

Human Rights,
Diversity and Inclusion

FILA has created a fair organizational culture in which all members are not discriminated against by gender, nationality, race and so on. Along with our participation in the UN Global Compact in March 2021, we aim to become a more sustainable company while fulfilling our social responsibility to protect and promote human rights across our value chain.

Flexible and Healthy
Work Environment

FILA strives to enable employees to work in a better environment while maintaining the compatibility of family life and work to spend time for their personal development and family care. FILA also provides group health and life insurance plans and operates a well-being club and provide sports-related benefits to promote the health of our employees.

FILA Supply Chain

FILA is working with its suppliers to create a sustainable supply chain. Based on the FILA Group Global Code of Conduct, we are proactively managing possible risks within the supply chain and improving the monitoring system for quality and environment management.


Supply Chain Management

FILA has established and distributed FILA Group Global Code of Conduct worldwide, complying with ten key principles of the United Nations Global Compact, to protect and promote human rights as well as ethical conduct, social and environmental sustainability in our global supply chains.

Supply Chain Evaluation

FILA Global Code of Conduct (CoC) audit team has evaluated and monitored prospective and existing suppliers’ compliance with the Code of Conduct in 11 areas. We also have established a system to prevent various types of potential risk factors that may occur in the supply chain by establishing countermeasures according to the risk levels.

Product Quality and Environment

FILA's CoC audit team constantly checks and monitors not only the process and product quality but also the work environment and procedures. FILA USA has been directly managing the operation status of our suppliers by visiting their factories in China eight times a year for two weeks.

Supplier Hotline

FILA operates a hotline and an ethical reporting center to deal with the grievances of our suppliers. In the near future, we will establish an ethical reporting department within FILA Sport (Hong Kong) to maintain the highest standards of ethical conduct in all its dealings with suppliers.

Creating Social Impact

We expand impact activities that can positively contribute to settle social issues.

Sports Sponsorship

FILA develops professional sports equipment based on knowledge and technologies accumulated through continuous research and development. We strive to deliver positive impact on society by sponsoring professional athletes in various sports and creating sporting environments in local communities.

FILA is committed to enhance product performance and durability of our products through research and development (R&D). To reinforce technology and develop sports products, we promote internal collaborations among our R&D groups in pursuit of the optimal fit, functionality, and stability of our various brand performance footwear such as running shoes and cycling shoes.

Sponsoring professional athletes and sports teams has been our priorities. As we believe in the positive impacts that sports bring about within our society, we have sought to expand such impacts by supporting a wide range of sports, from mainstream to lesser-known sports.

Community Engagement

FILA invests its assets and core competencies to create social values and empower local communities.

Connecting with Our
Consumers During COVID-19

  • FILA Fridays Social Series

    Provided platform for creators and charity donation

  • #UpTheBeat Dance Challenge

    Hosted a dance challenge with DanceOn

  • Donation to Social Facilities

    such as medical facilities in Biella, Italy, Korean Red Cross and food supply through WCK(World Central Kitchen)


Pursuing Diversity and Inclusion

  • Official Sponsor for a Documentary Film “A Most Beautiful Thing(AMBT)”

    Film on the first African-American high school rowing team

  • Black Lives Matter Movement

    Supported BLM movement and donated 100% of sales revenue to UNCF(United Negro College Fund)


Promotion of Child Safety

  • FILA KIDS Safety Class

    Promoted safety campaign in the Korea Federation of Life Safety for 12 years since 2009

Support for
Underprivileged Teens

  • Partnership with
    Business of Sports School

    Supported the growth and development of underprevileged students with BOSS, a public school specialized in Sports Management


Rediscovering Values

  • Program for Rediscovering Values FILA Family Photo Contest

    Provided handwritten letters to customers to encourage them fighting against COVID-19

  • FILA Family Photo Studio

    Provided customers chances to take family photo


Value Sharing Campaign

  • Partnership with Good Neighbors

    to sponsor Family Picture Letter Writing Contest

  • Partnership with Charity:Water

    Provided a clean drinking water to people in developing countries by launching 'Capsule' collection

Sustainability Report

FILA publishes FILA REPORT annually going forward to share the performance and
sustainability management activities transparently with various stakeholders.