YOUR
FILA IMPACT
Sustainability
FILA manages our business to realize sustainable values for people, environment, and society throughout the business process.
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Actions for the Planet
Minimize our environmental impact
Learn more
from product manufacturing to disposal
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quote
FILA will pursue
win-win partnerships
with the
stakeholders
under its mid/long-term ESG strategy
‘YOUR FILA IMPACT 2025’
and
improve its sustainability
as a social citizen.
FILA Holdings Corp.
President and CEO
Keun-Chang (Kevin) Yoon
FILA Value & Vision
FILA’s four core values drive its efforts in executing its business model and evolving into a sustainable global company.
Core Values
Harmony
Pursuing progress
throughout the
FILA
network with
respect and
active
communication
Innovation
Fostering new and
positive ideas
Pride
Having confidence
in the
overall
FILA group,
the product and
the people
Passion
Overcoming
adversity with
positive persistence
and enthusiasm
Vision
WINNING TOGETHER
ESG Highlights
Environment
FILA will contribute to develop environmental initiatives within the fashion industry
by pursuing resource circularity and establishing a climate change response system.
Product Circularity
A product circularity system that takes
into
account FILA’s circular value chain
(Environmentally conscious materials,
hazardous substance
management,
manufacturing,
environmentally
conscious
packaging,
and waste reduction)
Engaged in R&D on environmentally
conscious materials and systematized
the
Sustainable Materials
Tracking Board
Certified under the
Global Organic
Textile
Standard (GOTS)
Launched environmentally conscious
apparel,
accessories and underwear
for the first time in 2021
Increased the production of
environmentally
conscious footwear
in 2021 by
nine times that of 2020
Provided suppliers with
hazardous
substance
guidelines and
performed
regular
chemical safety
inspections
Expanded supplier
participation in
the
ZERO WASTE
program
Climate Action
Systemized the climate change
management system
at FILA group’s
major subsidiaries
Endorsed the Task Force on
Climate-Related Financial Disclosures
(TCFD)
and the Carbon Disclosure
Project (CDP)
and made disclosures
accordingly
Collected and analyzed data on
the consumption of water
and
the generation of
effluents at the offices
and
worksites of the major
subsidiaries
Reduced carbon emissions
by
nearly 2.4 tons by implementing
a paperless work environment
at the
distribution center in Korea
Fully transitioned to EVs
at
distribution centers
in Korea
and the US
* The term “environmentally conscious” shall be used to refer to products or materials with a lower environmental impact compared to existing materials and products
Social
FILA will set more stringent social goals to deliver on its commitments for its employees and customers.
Caring for People
Provided employees with
talent development programs
on the
topics of leadership,
job competency,
self-development,
ESG,
and personalized
coaching
Created the Diversity, Equity,
Inclusion & Community Council
and hosted relevant workshops
Achieved ZERO in
fatal
occupational injuries
97.7% response rate for consumer
inquiry response and
100%
implementation of action
and recall process
Donated 0.7% of total sales and
3.4% of operating profits
(6.9 times and 4.6 times higher
compared to 2020)
Supply Chain Transparency
Established the FILA Group
Global Code of Conduct
and
Human Rights Policy
and shared
them with our
suppliers
Completed mapping on tier 1 suppliers
for footwear, apparel, and accessories
(FILA Sport (Hong Kong):
22 vendors,
Montebelluna:
22 vendors)
Assessed all candidates
for
their compliance with
FILA group’s
ESG standards in
selecting
new
suppliers
Performed ESG assessments
on
tier 1 key suppliers and
defined improvement tasks
for high-risk partners
Supported suppliers with
logistics costs amid
COVID-19
Shortened the payment terms
for outstanding suppliers to
help them
achieve improved
financial liquidity
Governance
FILA will engage in transparent communication with its employees and its business partners;
journeying together towards sustainable ethical management.
Business Commitment
Set and disclosed
FILA's five-year
shareholder
return policy
Proposed ESG risks and
opportunities
for discussion
at regular
BoD meetings
100% in responding to global
whistleblowing hotlines
Established the Information
Security
Committee (ISC) and
developed
an information
security
incident
response system
Recorded ZERO information security
breach incidents for the past three years
All FILA Korea employees completed
ethical management
training
ESG Value Chain
FILA’s Circular Value Chain FILA is committed to promoting circularity and to generating economic, social and environmental value throughout our business operations. From selection of materials, manufacturing, and distribution to sales, marketing, disposal and recycling, we will collaborate with our stakeholders to improve our sustainability.
- Customers
- Employees
- Supply Chains
- Shareholders &
Investors - Local Communities
Resources and
Materials
We aim to utilize environmentally conscious materials that are recyclable, biodegradable and organic, while stringently managing hazardous chemicals, so as to become a responsible manufacturer.
# Product Circularity
Manufacturing and
Production
We reflect ESG standards in selecting suppliers and regularly assess their performance to pursue win-win partnerships, while assisting them in the production of high-quality products fabricated within a safe work environment.
# Caring for People # Supply Chain Transparency
Distribution
and Sales
Our distribution centers are proactively expanding the use of environmentally conscious energy and are transitioning to environmentally conscious materials ‒ both for products and even packaging. We continue to disclose our sustainability efforts to stakeholders, including customers, investors, and local communities.
# Business Commitment # Climate Action
Disposal and
Recycling
We seek out innovative disposal and recycling methods while deploying solutions to reduce and recycle waste generated from the distribution process.
# Climate Action
FILA IMPACT
2025
FILA FOCUS
Your FILA Impact 2025
Our mid/long-term sustainability management goal “YOUR FILA IMPACT 2025”, serves to transparently disclose our ESG management strategy and extend its potential in the future. As a holding company, FILA Holdings will also assist all FILA subsidiaries in any way possible to attain their set sustainability goals under the united vision of “WINNING TOGETHER.”
- FILA Holdings
- FILA Korea
- FILA USA
- FILA Sport (Hong Kong)
- Montebelluna
Your FILA Impact 2025
Product Circularity
FILA is committed to integrating resource circulation into
its production process through developing environmentally
conscious materials and recycling resources for the preservation
of the planet and the next generation.
| 2025 Target | 2021 Performance | Subsidiary |
| Product Circularity | ||
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Lay the foundation for Life Cycle Assessments to achieve product circularity |
Established a product circularity system in consideration of FILA’s value chain(environmentally conscious materials, hazardous substance management, manufacturing, environmentally conscious packaging, and waste reduction) |
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Increate the ratio of environmentally conscious materials used by product category |
Engaged in R&D on environmentally conscious materials and systemized the Sustainable Materials Tracking Board |
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| Achieved the Global Organic Textile Standard (GOTS) |
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| Adopted apparel materials certified under the Responsible Down Standard (RDS) and the Organic Content Standard (OCS) |
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| Adopted 100% biodegradable recycled paper, materials made from shredded tires, sheets made from used cork, recyclable synthetic leather, recycled polyester, recycled Phylon, and Tyvek materials for footwear |
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| Adopted Sorona, SOLARball, recycled POLARTEC, recycled polyester, and recycled nylon for apparel products |
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| Adopted MIPAN regen, VEGEA vegan leather, materials made from recycled leather waste for accessories |
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| Adopted ECOLON and Tencel materials for underwear products |
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Reach 10% or above in the ratio of environmentally conscious product lines for footwear, apparel and accessories |
Launched environmentally conscious apparel, accessories and underwear products for the first time in 2021 |
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| Increased the production of environmentally conscious footwear in 2021 by nine times that of 2020 |
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| Reached 16.9% in environmentally conscious adult apparel and 10.9% in environmentally conscious children’s apparel out of the total apparel production in 2021 |
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| Reached 1.7% in environmentally conscious accessories out of the total accessories production in 2021 |
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| Reached 1.7% in environmentally conscious underwear out of the total underwear production in 2021 |
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Reduce hazardous substances contained in materials and products to ZERO |
Reviewed the adoption of Drydye, environmentally conscious fabric dyeing technology |
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| Increased the use of water-based adhesives for footwear in 2021 by 2.5 times that of 2020 |
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| Distributed hazardous substance guidelines to suppliers and performed regular chemical safety inspections |
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Switch to environmentally conscious materials for packaging and subsidiary materials |
Increased the use of 100% recyclable materials for shoeboxes by 1.5 times and switched to biodegradable plastic bags for apparel·accessories |
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| Reduced paper consumption by 50% through the use of recyclable paper and the adoption of environmentally conscious printing technology in producing labels, tags and other subsidiary materials |
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Expand the resource circularity-driven waste reduction system |
Expanded the scope of major subsidiaries subject to the waste management system and reviewed the integration of suppliers |
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| Expanded support for suppliers to join the ZERO WASTE program |
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Climate Action
To help mitigating the consequences of
climate change, FILA has fully committed to
establishing its environmental management
system since 2020.
| 2025 Target | 2021 Performance | Subsidiary |
| Climate Action | ||
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Develop climate change response strategies and set mid/long-term carbon emissions reduction targets |
Identified climate-related risks and necessary countermeasures and laid the basis for environmental management |
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| Systemized the climate change management system for major FILA group subsidiaries |
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| Endorsed the TCFD and the CDP and made disclosures accordingly |
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Extended the scope of global subsidiaries subject to carbon emissions disclosures (from two to five subsidiaries) |
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| Improved our methodology in accordance with the Greenhouse Gas Protocol, while also disclosing carbon intensity data |
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Reduce carbon emissions at directly-operated subsidiaries and worksites |
Reduced nearly 2.4 tons of carbon emissions by going completely paperless at the distribution center in Korea |
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| Recycled nearly 543 tons of packaging waste and cashed in the proceeds at distribution centers in Korea and the US |
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| Fully transitioned to EVs at distribution centers in Korea and the US |
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| Provided employees with training on actionable carbon emission reduction measures |
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Prepare a strategic water management system |
Collected and analyzed data on water consumption and effluent generation at the offices and worksites of our major subsidiaries |
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Caring for People
FILA values the needs and future of its employees,
customers and communities.
| 2025 Target | 2021 Performance | Subsidiary |
| Caring for People | ||
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Expand support with a focus on global talent management |
Provided employees with talent development programs on the topics of leadership, job competency, self-development, ESG and personalized coaching |
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| Created a virtual work environment and disseminated a horizontal corporate culture |
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| Improved working conditions for female employees and provided maternity protection and welfare benefits |
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Prevent human rights-related issues and fully respond to such issues |
Provided all employees with human rights infringement prevention training and launched in-house campaigns |
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| Created the Diversity, Equity, Inclusion & Community Council and held relevant workshops |
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| ZERO health & safety incident | Achieved ZERO in fatal occupational injuries |
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| Provided regular health and safety training and monitored workplace health and safety against the checklist |
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Strengthen communication with consumers |
97.7% response rate for consumer inquiry response and 100% implementation of action and recall process |
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Create impact through the implementation of FILA’s global CSR strategy |
Chose the major global CSR themes of “Water, Diversity, Children” and reinforced the system |
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| Donated 0.7% of total sales and 3.4% of operating profits (6.9 times and 4.6 times higher than 2020) |
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| Donated 10% of the sale proceeds derived from the Black History Month collection |
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| Hosted FILA KIDS Safety Class (Provided training to 55,000 children on a cumulative basis since its launching in 2009) |
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Supply Chain Transparency
Building healthy relationships with
business partners is an important factor in
strengthening a company’s competitiveness.
| 2025 Target | 2021 Performance | Subsidiary |
| Supply Chain Transparency | ||
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Implement sustainability management principles across FILA group’s supply chains |
Established the FILA Group Global Code of Conduct and Human Rights Policy and shared them with our suppliers |
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| Improve transparency across supply chains and complete mapping on all our suppliers |
Completed mapping on tier 1 suppliers for footwear, apparel, and accessories (FILA Sport (Hong Kong): 22 vendors, Montebelluna: 22 vendors) |
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Fully comply with sustainability standards across FILA group’s supply chains |
Assessed all candidates for their compliance with FILA group’s ESG standards in selecting new suppliers |
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| Assessed tier 1 key suppliers for their ESG performance and defined improvement tasks for high-risk suppliers |
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| Provide win-win support to our suppliers | Supported suppliers with logistics costs amid COVID-19 |
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| Shortened the payment terms for outstanding suppliers to help support their financial liquidity |
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Business Commitment
FILA pursues sound governance driven by our
expertise and diversity. We abide by our Company’s
Code of Conduct for ethical management
and share our ethical management philosophy
with the global subsidiaries and business partners.
| 2025 Target | 2021 Performance | Subsidiary |
| Business Commitment | ||
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Implement FILA’s five-year strategic plan and shareholder return policy |
Set and disclosed FILA's five-year shareholder return policy |
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| Advance sustainability management and respond to climate crisis under the BoD leadership | Proposed ESG risks and opportunities for discussion at regular BoD meetings |
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Follow up on all whistleblowing reports submitted globally to FILA group |
100% in responding to global whistleblowing hotlines |
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| Reduce personal data breaches to ZERO | Established the Information Security Committee (ISC) and developed an information security incident response system |
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| Recorded ZERO occurrences of online data security breaches at FILA over the past three years |
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| Disseminate an employee-engaging ethical corporate culture | All FILA Korea employees completed ethical management training |
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Actions for the Planet
FILA strives to minimize our environmental impact throughout the product lifecycle,
from product development to production and disposal.
FILA’s Product Circularity System
FILA’s Raw Materials and Processes Improved for Sustainability
| Raw Materlal | |
| Bio Degradation | Waste is completely degraded into water, carbon dioxide and methane gas by way of microorganisms. |
| Recycling & Upcycling | New added value is created beyond the original material and the product is reinvented as such. |
| Environmentally conscious | Natural resources are used for manufacturing. |
| Process |
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‧Develop recyclable materials while fully leveraging existing ones ‧Streamline the process through improving the molding process ‧Develop methods for using material scraps and waste |
Effort to Minimize the Discharge of Harmful Substances
To reduce the generation of harmful substances and chemicals,
we are shifting from solvent-based adhesives to water-based ones in producing
the upper portion of our footwear.
The number of footwear products made with water-based adhesives increased 2.5 times from 237,000 in 2020 to 598,000 pairs in 2021.
Expansion of Environmentally Conscious Products at FILA Korea
Based on the annual production volume of FILA Korea, environmentally conscious products were first launched in 2021 in the apparel, underwear and accessories categories
FILA USA’s Plan to Expand Environmentally Conscious Packaging Materials
Waste Management System
2021 outcomes of JM (Jialaimeng)
GHG Emissions at FILA’s Major Subsidiaries
FILA joined the Carbon Disclosure Project (CDP) in July 2021, and announced our endorsement for the
Task Force on Climate-related Financial Disclosures (TCFD) in March 2022.
| FILA group | Scope | Unit | 2021 | 2020 | 2019 |
| FILA group | Scope 1 | tCO2e | 1,245.9 | 1,796.2 | 1,771.0 |
| Scope 2 | tCO2e | 3,005.5 | 2,831.4 | 3,020.7 | |
| Total | tCO2e | 4,251.3 | 4,627.7 | 4,791.7 | |
| Intensity | tCO2e/KRW bn | 1.1 | 1.2 | 1.3 | |
| Major Subsidiaries | |||||
| FILA Holdings | Scope 1 | tCO2e | 7.5 | 7.1 | N/A |
| Scope 2 | tCO2e | 130.8 | 61.7 | N/A | |
| Subtotal | tCO2e | 138.3 | 68.9 | N/A | |
| FILA Korea | Scope 1 | tCO2e | 9.1 | 13.3 | 60.9 |
| Scope 2 | tCO2e | 1,267.6 | 1,123.8 | 992.0 | |
| Subtotal | tCO2e | 1,276.7 | 1,137.1 | 1,052.9 | |
| FILA USA | Scope 1 | tCO2e | 1,159.8 | 1,775.8 | 1,710.1 |
| Scope 2 | tCO2e | 1,571.1 | 1,645.9 | 2,028.7 | |
| Subtotal | tCO2e | 2,730.9 | 3,421.7 | 3,738.8 | |
| FILA Sport (Hong Kong)ㆍ Montebelluna |
Scope 1 | tCO2e | 69.4 | N/A | N/A |
| Scope 2 | tCO2e | 36.0 | N/A | N/A | |
| Subtotal | tCO2e | 105.4 | N/A | N/A |
The GHG emissions and intensity data disclosed as FILA group’s data were calculated by aggregating GHG emissions generated by major group subsidiaries falling into the reporting scope of this report - FILA Holdings, FILA Korea, FILA USA, FILA Sport (Hong Kong), and Montebelluna.
Due to the vertical demerger of FILA Korea and FILA Holdings in January 2020, FILA Holdings’ data is available from 2020 (this applies to all following data).
We comply with the Greenhouse Gas Protocol in calculating GHG emissions, but observe the standards of the ‘GHG and Energy Target Management System under the Low Carbon Green Growth Act’ in calculating power consumption at our offices and establishments located in Republic of Korea.
As the scope of GHG emissions calculation was extended from the previous year, data over the past three years was recalculated by retroactively applying the revised scope and criteria, and thus 2019/2020 emissions data may vary from the previous year’s disclosures.
GHG intensity was calculated based on FILA Holding’s consolidated revenue.
Scope of calculating the emissions of GHG:
- FILA Holdings: office in Seoul and FAST Center office in Busan, Republic of Korea
- FILA Korea: office in Seoul and a distribution center in Icheon, Republic of Korea
FILA Holdings and FILA Korea were relocated to its current office in Cheonho-dong, Seoul, Republic of Korea in July 2019. Since the two subsidiaries share the same building, their data was calculated in proportion to the floor areas they occupy (this applies to the following energy/water resources/waste data).
Sparks Glencoe Korea, Magnus Holdings and Montebellluna’s Korean branch are located in the same building but they do not constitute major subsidiaries that fall into the scope of reporting of this report, and thus their data was not separately disclosed (this applies to the following energy/water resources/waste data).
FILA USA: offices in New York, Maryland, and a distribution center in Baltimore, USA
FILA Sport (Hong Kong) & Montebelluna: Global Sourcing Center in Jinjiang, China
Both these subsidiaries are located within our Global Sourcing Center in Jinjiang, China, and are included in our disclosure since they share offices, lounges and amenities within the center
Creating Social Impact
Improve value for FILA stakeholders
FILA People
Harmony
Pursuing progress throughout
the
FILA network with
respect and
active
communication
Innovation
Fostering new and
positive ideas
Pride
Having confidence in the
overall FILA group,
the product and the people
Passion
Overcoming
adversity
with positive
persistence
and
enthusiasm
Support for and Promotion of Outstanding Talents
We are committed to promoting talented
individuals who think outside the box and
take pride in their work to pursue
collective development.
Employee Training
FILA believe excellent work performance is
achieved when the employees continue to
develop their individual careers through
self-development.
Stringent Compliance with and Management of the Occupational Safety and Health Act
FILA Holdings and FILA Korea have stipulated
the Occupational Safety and Health
Management Regulations to promote the
health and safety of its stakeholders, and such
regulations apply to suppliers and visitors as well.
Creating a Horizontal Organizational Culture
FILA believe that ensuring our employees feel comfortable in freely
expressing their ideas and in openly communicating amongst each
other is the very first step towards a better corporate culture.
Respect for Human Rights
In February 2021, we stipulated the FILA Group Global Human Rights
Policy and have done our part in securing it firmly within our
corporate culture.
Commitment to Customer Satisfaction
We sincerely hope that our products would bring more to the world than
a mere act of consumption; we wish to deliver satisfaction and
contentment to our customers.
Better Customer Communication
FILA Korea operates an integrated call center and bulletin board on its
website to increase customer access to products and services.
Chemical Substance Test Process for FILA Products
Customer-centric R&D Activities
The FAST Center (FILA Advanced Science & Technology Center) engages in cutting-edge R&D to provide a wide spectrum
of products to consumers as well as athletic-grade sports products
FAST Center’s R&D Status and Outcomes by Major Sports Category
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Tennis
Scheduled to launch ‘SPEEDSERVE’, a tennis shoe with a reduced weight of 10g along with an improved cushioning of 20% and an energy return of 8% against our existing model, ‘AXILUS 2 ENERGIZED’
Conducted research on herringbone (ziazag) tread sole patterns in collaboration with Korea National Sport University (improving court grip while sprinting, stopping, or changing directions)
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Running
Launched the running shoe models Neuron 3, 5, and 7 which deliver reinforced stability and reaction force balance with the application of Energized Rush Foam
Analyzed the flexion angle effectiveness of carbon plates for midfoot running footwear (Midfoot Running Innovation Project)
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Cycling
Launched the cycling shoe models SYNAPSE 5, 7, and 9 which deploy a carbon fiber outsole, a fixed mounted cleat, and an upper ventilation system
Provide custom cycling shoe service tailored to individual body shapes on the strength of our technological prowess
CSR Strategy Development for a Sustainable Future
FILA's gaze is set beyond the primary roles we play as a company that produces high-quality products and services, to one that extends even beyond what we can presently deliver. We have chosen <Water, Diversity, Children> as our main Corporate Social Responsibility themes in 2021 and will fully support related activities.
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Water
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Diversity
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Children
Creating More Sustainable Supply Chains
FILA is committed to managing our environmental and
social impact along with our entire process – from raw material
sourcing to product manufacturing.
FILA Global Code of Conduct for
FILA Business Partners
[FILA Global Code of Conduct]
DOWNLOAD →
Supplier Selection and Management Process
FILA conducts evaluation processes with its internal checklist in selecting new suppliers to work with us.
New Supplier Selection Process
1
Document preparation
and supplier evaluation
1) Document preparation
2) Document evaluation criteria
2
On-site due diligence
1) On-site factory due diligence
2) Factory examination criteria
3
New supplier registration
1) New supplier registration process
2) Additional document preparation
4
New supplier operation
1) Final evaluation after the test operation
2) Normal operation
ESG Evaluation on Our Suppliers
FILA ensures all its suppliers sign the pledge to abide by the FILA Group Global Code of Conduct,
and conducts annual due diligence on all tier 1 suppliers as part of the supplier evaluation.
2021 Key Supplier Evaluation Results
| Name of Supplier | Footwear | Apparel and Accessories | |||||||||
| Evaluation Criteria* | DA | GR | GS | HT | JM | XSC | JD | NS | WH | ||
| Compliance of Laws and Regulations | |||||||||||
| Forced Labor | |||||||||||
| Child Labor | |||||||||||
| Safety and Health | |||||||||||
| Equal Opportunity | |||||||||||
| Freedom of Association | |||||||||||
| Disciplinary Practices | |||||||||||
| Worker’s Insurance | |||||||||||
| Environment | |||||||||||
| Security | |||||||||||
| Documentation and Inspection | |||||||||||
| Score | 89.2 | 95.6 | 88.3 | 88.4 | 82.5 | 73.2 | 91.5 | 89.1 | 89.9 | ||
| Rating** | SILVER | GOLD | SILVER | SILVER | BRONZE | - | GOLD | BRONZE | GOLD | ||
*Evaluation criteria: 90 points70-90 pointsunder 70 points
**Rating criteria: GOLD (90 points or above) SILVER (85.1-89.9 points) BRONZE (80.1-85 points)
Sound Governance
Make decisions responsibly in consideration of ESG impact
Ethical Management System
- Prevention
-
Clean Campaign
Ethical management training
Pledge on and evaluation of the compliance
with the Code of Conduct
- Assessment
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Report Center
Whistleblowing hotlines
Ongoing interviews
Periodic management assessments
Ongoing internal audits
On-site audits
- Improvement
-
Management report
Improvement recommendations
Follow-up on improvements
Whistleblowing Report Handling Procedures
FILA receives anonymous whistleblowing reports 24/7 through the wide range of channels including from our website,
e-mail, phone and post concerning any corruptive or unjustified acts that undermine our credibility and ethics as a company.
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Receive the
report -
Perform
internal audits
and identify
audit results -
Fact-check
and prepare
disciplinary
and /
or improvement
measures -
Manage the
details of
report-handling
- response to the whistleblowing
reports submitted - 100%
Information Security System
In August 2021, FILA received the Information Security Management System (ISMS) certification awarded by the Korea Internet & Security Agency (KISA) under the Ministry of Science and ICT.
- Systematize internal security operations
- Manage and supervise online business partners
- Unification of policy compliance for external communication
- Cyber security reinforcement
ISMS
Certification
Achieved
Information Security Incidents
- Occurrence of information security incidents
over the past three years (2019-2021) - ZERO
Sports Sponsorship
Reinforcing FILA’s Brand Identity within the Sports Market
Strengthen a differentiated brand
individuality by promoting
FILA’s signature sports
Core Sports
Tennis
Water sports
Outdoor
Training
Promote growth as a sustainable sports brand through
mid/long-term technology development and investment
Non-Core Sports
Motor sports
Winter sports
Running
Soccer
Sustainability Report
FILA publishes FILA REPORT annually going forward to share the performance and
sustainability management activities transparently with various stakeholders.
