[ESG A to Z] Easy to Understand ESG News, Issue #1
Greenhouse gases, RE100, net zero…the intricate terminology of ESG can be overwhelming. But why is it so important to reduce greenhouse gas emissions, and does it affect our lives? Let's simplify these concepts as much as possible.
We are all aware that greenhouse gases are the primary culprits behind global warming. These gases envelop the Earth, contaminating the atmosphere and inducing the greenhouse effect.
Internationally, greenhouse gases are broadly categorized into six types.
In our country, greenhouse gases are classified into six main categories: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrochlorofluorocarbons (HCFCs), perfluorocarbons (PFCs), and sulfur hexafluoride (SF6). If current levels of greenhouse gas emissions persist, the Earth's average temperature is expected to rise by 2-4 °C within decades1).
✔️ In 2023, Amorepacific's total greenhouse gas emissions amounted to approximately 30,000 ton CO2eq (excluding the supply chain).
Is this information disclosed? Companies must publicize their total greenhouse gas emissions, which can be found in sustainability reports. But where and how exactly are these emissions generated⁉
1) Source: The IPCC (Intergovernmental Panel on Climate Change) Report, established in 1988 as a UN-affiliated body to assess the risks of climate change and formulate international countermeasures. It comprises representatives from 195 governments and 2,500 scientists globally, analyzes climate data, and regularly publishes comprehensive reports.
Did You Know There Are Different Types of Greenhouse Gas Emissions? 😮
✏Scope 1 encompasses direct emissions—the greenhouse gases emanating from the company's facilities and equipment.
This category includes fossil fuels utilized to supply steam and heating essential for product manufacturing. ⛽ Additionally, fuel consumed by company-owned vehicles, such as gasoline and diesel, falls under Scope 1. Consequently, if a company’s gasoline-powered vehicles emit greenhouse gases, they are classified as Scope 1 emissions.
✏Scope 2 refers to indirect emissions from generating energy that a company purchases at its business premises. In essence, these emissions occur during the production of externally sourced energy.
⚡ For example, when Amorepacific purchases and consumes electricity, this activity is categorized under Scope 2 emissions.
✏Scope 3 encompasses other indirect emissions that span the entire business lifecycle, from the procurement of goods from suppliers to the final use and disposal of products by consumers.
🔄This category includes greenhouse gases emitted outside the company’s direct operational control. For Amorepacific, Scope 3 emissions cover everything from producing raw materials and packaging used in manufacturing their products to transportation and distribution to factories, business travel and employee commuting, product usage by consumers, and the disposal of used products.
Since most Scope 3 emissions arise from business activities not directly managed by the company, reducing these emissions proves exceptionally challenging, as it involves controlling processes beyond the company's direct influence. 😢
Eliminating greenhouse gas emissions entirely is no small feat for any company. Nevertheless, Amorepacific is methodically expanding its efforts to reduce emissions incrementally.
✔️ ‘RE100’ is a global initiative2) committed to sourcing 100% renewable energy. Simply put, it means Amorepacific aims to eliminate all greenhouse gas emissions from Scope 2. RE100 is not mandated by governments but is driven by the voluntary participation of global corporations.
2) Initiative: An initiative refers to voluntary codes of conduct or guidelines adopted by global companies within each industry sector. Companies join these initiatives to encourage mutual adherence, reflecting the specific characteristics of their respective industries.
📢 Niche Appeal 📢
Amorepacific proudly became the first company in South Korea’s beauty industry to join the global RE100 initiative. Moreover, on September 19, 2023, at the New York Climate Week’s ‘RE100 Leadership Awards’, Amorepacific made history by being the first in the country to win in the Market Trailblazer category! 🏆🌍
To achieve RE100 by 2025, Amorepacific actively promotes the transition to renewable energy within Korea through various strategies. This includes implementing low-energy process technologies that allow product manufacturing at lower temperatures and prioritizing energy reduction and efficiency improvements. Additionally, the company has expanded its on-site solar power facilities, independently increasing the proportion of renewable energy it generates. 🌞⚡
Amorepacific’s Progress Toward Achieving RE100 Next Year
🌍Energy Reduction and Efficiency
- Innovating facilities to reduce overall energy consumption while simultaneously promoting everyday electricity-saving activities.
- Establishing environmentally friendly buildings at Amorepacific’s headquarters, which have received top ratings such as 'Green Building Excellence,' 'Building Energy Efficiency Grade 1', and 'LEED Gold Certification.'
🌞Expansion of On-Site Solar Power Generation
- Achieving a self-production capacity of 4.6 MW of renewable energy company-wide (as of October 2024).
🔋Supplying Renewable Energy to Business Sites Through Direct and Indirect Purchase Agreements
- Securing South Korea’s first Power Purchase Agreements (direct PPAs), Virtual Power Purchase Agreements (VPPAs), and indirect Power Purchase Agreements (third-party PPAs).
⚡Purchasing Green Premiums and Renewable Energy Certificates
- Participating in pure donation premium purchases by adding a separate premium to existing electricity bills; Purchasing renewable energy certificates, such as those from wind energy projects.
❗ To reduce Scope 3 greenhouse gas emissions, we must unite our efforts.
For businesses, this means minimizing or eliminating packaging materials, reducing the volume of unavoidable waste, and maximizing recycling initiatives. 🌍
📢 At Amorepacific, among the various Scope 3 emissions generated by our business activities, the highest proportions stem from ▲emissions related to purchased goods and services and ▲emissions from product disposal after consumer use. Compared to 2020, we have set ambitious targets to reduce these emissions by 25% by 2030 and 90% by 2050.
However, Scope 3 encompasses numerous areas where companies cannot directly control emissions, such as transportation and distribution, office facilities, and the processes from product manufacturing to usage and disposal. For instance, the greenhouse gases emitted from cultivating ginseng and green tea used as cosmetic ingredients also fall under Scope 3. Realistically, it is not feasible to implement low-carbon farming practices at every raw material production site.
💡Therefore, collaboration between businesses and consumers—your participation—is crucial. 💡
It is essential for all of us to collectively explore various ways to address climate change and reduce greenhouse gas emissions. 🤝
✏️ For Businesses: Besides rethinking raw materials and packaging, companies must dedicate themselves to developing products that emit fewer greenhouse gases. (Examples include no-wash treatments that eliminate the need for water, reducing plastic usage or creating plastic-free products, and designing more accessible recycled products.)
✏️ For Consumers: Choosing products that generate fewer greenhouse gas emissions or participating in container recycling initiatives significantly contributes to the cause.
Less Plastic' narrates the stories of various Amorepacific brands actively practicing ESG.
Making a more beautiful world.
It’s the purpose behind everything we do at Amorepacific.
In that spirt,
Amorepacific will change how plastic products are made, bought, used and discarded.
We will:
Use Less.
Recycle More.
Maximize plastic lifespans.
It’s our responsibility, and our commitment.
To you.
To ourselves.
To the planet.
Let’s think again about how we use plastics in our everyday lives.
By joining hands, the world becomes even more fantastic.
So let's reduce plastic for a more beautiful world.
Less Plastic. We are Fantastic!
Content Production KAYA Media
Planning Amorepacific Communications Team
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