FILA Holdings has been selected as a “2023 ESG Top-Rated Company” by global environmental, social, and governance (ESG) evaluation agency Sustainalytics, a subsidiary of American financial service provider Morningstar.
Sustainalytics annually evaluates and publishes ESG Risk Ratings for more than 15,000 global firms operating in 42 industries. Referring to the impact of a company’s ESG activities on its financial status, these ratings are based on a score range of zero to 50 divided into five levels – the lower the rating, the lower the ESG risk. FILA Holdings has received a “Low” ESG Risk Rating from Sustainalytics for the past three years, with its score gradually improving from 18.6 in 2020 to 15.3 in 2022.
Sustainalytics’ list of “2023 ESG Top-Rated Companies” is based on last year’s ESG Risk Rating. Among 181 firms from the Asia-Pacific region on the list, FILA Holdings was the first Korea-based fashion company to be chosen as an “ESG Top-Rated Company” by Sustainalytics. It was also one of only seven companies operating in any industry in Korea to be selected.
FILA Holdings is making sustainability management efforts that encompass all ESG factors. In terms of the environmental aspect, the company has been releasing sustainable products annually since 2020. For instance, it introduced a new edition of FILA’s iconic “Disruptor 2 1998” sneaker last year featuring recycled canvas and materials made up of urethane waste and rubber Regarding the social factor, FILA Holdings has selected the theme of “children, diversity, and water” for its corporate social responsibility (CSR) activities, which are being carried out with FILA Group’s stakeholders with the goal of achieving harmony between brand value and society.
The company has also attracted particular industry attention for its various governance activities, including setting up the FILA Holdings Corporation Corporate Governance Charter and FILA Group Risk Management Policy to establish a fair governance structure and manage group risks. Currently, FILA Holdings is seeking to both enhance transparency throughout the supply chain and improve its supply chain management system through a designated task force. In addition, the company’s comprehensive and ongoing commitment to risk management means members and partners of FILA Group are asked to pledge their compliance with the FILA Holdings’ Codes of Conduct for FILA Group Members and Business Partners, which includes ESG issues such as human rights, safety, and the environment.
Moreover, FILA Holdings is actively communicating the status and performance of its sustainability management activities. As well as its recognition by Sustainalytics, the company has received positive evaluations from several renowned corporate sustainability assessment agencies that enjoy high public confidence both in Korea and abroad. Last year, FILA Holdings became the first Korean fashion company to be included in the 2022 Dow Jones Sustainability Indices Korea, while also receiving an “A” grade from Sustinvest, the highest evaluation of “S” from the Korea ESG Research Institute, and a “B+” score from the Korean ESG Standards Institute.
“We are very pleased to be recognized for our sustainability management performance by a major global ESG evaluation agency such as Sustainalytics,” said an official from FILA Holdings. The official added, “We will continue to strengthen ESG management for sustainable growth of FILA Holdings.”
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