YOUR IMPACT

Mid/long-term Sustainability Management Strategic Framework

Three Pillars

  • E

    Actions for the Planet

    Minimize our environmental
    impact from product
    manufacturing to disposal
  • S

    Creating Social Impact

    Improve value for
    FILA stakeholders
  • G

    Sound Governance

    Make decisions responsibly
    in consideration of
    ESG impact

Five Themes

  • Product Circularity
  • Climate Action
  • Caring for People
  • Supply Chain Transparency
  • Business Commitment

FILA Sustainability Management Roadmap

~2020

2021

2022~2025

  • ~2020

    Collect ESG data and assess the status quo Identify the critical ESG issues of major affiliates Identify and implement priority tasks
  • 2021

    Establish a mid/long-term ESG strategic framework Expand the scope of affiliates subject to ESG data management Monitor key performance in respective ESG areas
  • 2022~2025

    Disseminate an integrated ESG management system worldwide Reach the set mid/long-term ESG goals in alignment with business Manage major value chain risks including supply chain risks

Sustainability Decision-Making System

Sustainability Organization

  • FILA Korea
  • FILA USA
  • FILA Luxembourg
  • FILA Sport
    (Hong Kong)
  • Montebelluna

Outline sustainable management strategies and goals
Engage in external sustainability communication and set strategies

Communicate issues and stakeholder needs & trends

FILA Holdings Corporate Strategy Division

Decide on major sustainability agenda items
and present ways forward

Propose major sustainability agenda items

Board of Directors

ESG Highlights

Actions for the Planet

Product Circularity

  • 265%

    YoY increase in the production of
    sustainable products
    (Based on SKU)

  • 70%

    Apparel and accessories
    packaging materials
    (Polybag, tag, label,
    tissue paper)

    100%

    Footwear
    packaging
    (Shoebox)

    Transition to
    sustainable packaging materials

  • 58%

    Participation of tier 1 key suppliers in
    ZERO WASTE program

Climate Action

  • COP 27

    UN Climate Change Conference participation

  • Scope 3

    GHG emissions initial disclosure

  • CDP
    Water Security

    First water-related
    disclosure under CDP

Creating Social Impact

Caring for People

  • 373%

    YoY increase
    in training expense per employee
    at FILA Korea

  • 0.9%

    Operating profit
    given back to community
    Establishing FILA group
    CSR strategy

  • 97%

    Customer inquiry
    response rate

    100%

    Implementation of
    product recall process

    Enhancing communication
    with FILA Korea consumers

Supply Chain Transparency

  • 18 meetings

    Establishment of Supply Chain
    TF with regular meetings in
    response to critical risks
    throughout the year

  • Supply Chain
    Transparency

    Tier 1 supplier mapping and
    key supplier selection

  • ESG Audit

    ESG evaluation and audit
    For tier 1 suppliers

Sound Governance

Business Commitment

  • 27.6%

    Dividend payout ratio (DPR)
    and declaration of special
    dividend for the first time

  • Risk Management Principle

    Establishment of
    risk management policy

  • Sustainable Tax

    Declaration of global tax
    sustainability principles

The ESG Highlights are the key achievements of the FILA group in 2022, and the corresponding affiliate for each achievement is detailed in YOUR FILA IMPACT 2025.

Awards and Recognition

FILA’s commitment to sustainability has garnered widespread recognition from major global ESG rating agencies, acknowledging
its outstanding achievements. We will strive to implement our sustainability initiatives so as to create positive ripple effects
in the fashion industry and beyond.

ESG Ratings & Awards

  • Dow Jones Sustainability
    Indices (DJSI) - Korea

    Included for the first time among
    Korean fashion companies

  • Morgan Stanley Capital
    International(MSCI)

    Received A grade

  • Sustainalytics

    The first Korean fashion
    company to be named in a "2023 Top-Rated ESG Companies" list
    (Asia-Pacific region)

    Received a "Low Risk" ESG rating

  • Refinitiv

    Scored 78/100 on ESG
    performance

  • Institute for Textile and
    Fashion Policy (ITFP)

    Recognized as one of the
    excellent ESG fashion companies
    in Korea

  • Sustinvest

    Received A grade

  • Korea ESG Research
    Institute

    Received S grade

  • Korea Institute of
    Corporate Governance
    and Sustainability

    Received B+ grade

Global Initiatives

  • First among Korean fashion
    companies to

    Disclose achievements in
    Sustainability Accounting Standards Board (SASB)

    Declare support for Task Force on Climate-Related
    Financial Disclosures (TCFD)

  • Carbon Disclosure Project (CDP)

    Disclosed achievements in climate change response in
    “Climate Change” & “Water Security”

  • Joined UN Global
    Compact

    Declared support for UN Sustainable Development Goals (SDGs)

  • FILA Group Global Human
    Rights Policy

    Endorsed the human rights
    standards from
    International Labour
    Organization, UN, and OECD

Our goal is to envision a story that can be interwoven into the
product concept, from the product itself to its materials and
packaging, not simply launching a product featuring sustainable
materials.
We believe our approach presents consumers with a glimpse of
the definition and images of sustainable products that we seek
to achieve.

Sun Min Kim

Manager at Footwear MD Team (FILA Korea)

As a clothing manufacturer we accept FILA’s value,
which is to have a positive impact on the environment,
and actively participate in carbon emissions reduction and
energy transition initiatives.

Alex Lee

General Manager (Hefei Xingji Garment Co., Ltd.)

I expect to see a growing number of customers who are more
sensitive to the environmental impacts of their shopping decisions,
now that the impact of climate change is felt in our daily life.
As such, FILA will need to make a sincere effort to meet the evolving
customer needs by expanding sustainable product lines.

Min Jung Kim

Store owner (FILA Hyundai Department Store Chungchung Branch)

FILA takes a preemptive approach to workplace accident prevention
by laying the groundwork for a safety and health management
system and implementing relevant programs designed to
raise safety awareness among employees.

Michael Powell

Director of Environmental Health and Safety(FILA USA)

For FILA, it is critical to reflect, manage, and communicate its
response to material issues throughout the value chain.
This requires expanding the management scope
to the entire supply chain, from the current focus group of
the company and tier 1 suppliers, as well as ambitious goal
setting for the use of raw materials and components,
looking ahead to the next decade to come.

Soe Ja Kim Hoogendam

Managing Director, Control Union Korea

I believe that transparent disclosure is vital.
When a company discloses its current achievements, areas for improvement and plans for the future, and reliable information to back them up, we as investors can make informed decisions with confidence about a company's ESG performance, both now and in the future. In this sense, it is a step in the right direction for FILA to disclose its mid/long-term goals for 2025 alongside its performance for each year. I would like to see a clearer picture of FILA's progress in achieving its sustainability goals going forward.

Se-Won Park

ESG Strategy Team Head (Kiwoom Asset Management)

Sustainability Report

FILA publishes sustainability integrated report annually to share the performance and
sustainability management activities transparently with various stakeholders.