Has there ever been a time where there has been such an intense amount of interest in the ESG (environmental, social, and corporate governance)? Concerns and heightened interest in the global ecosystem that began with the pandemic have led to new interest in sustainable management. With an emphasis on the roles and responsibilities of corporates following the controversy surrounding the climate crisis, plastic waste, human rights issues including diversity and inclusiveness, and the rise of responsible investment where investors favor companies with outstanding track records on both financial and non-financial performance, ESG has fast become an important element in the corporate world.

At Amorepacific, there is a group of people who have long been quietly preparing for this moment: The Sustainable Innovation Team. The Sustainable Innovation Team provides across-the-board support on ESG for the company and its brands. The team establishes Amorepacific’s ESG strategies, supports each business division to execute the strategy, responds to external assessment, deals with internal and external ESG communications, and plans programs to help all executives and employees embrace ESG. We asked the team, who have delved into the question of sustainable beauty more deeply than anyone else, about Amorepacific’s answer for sustainability.

*Interviewees: Myunghwa Lee, Younggon Kim, Sujin Kim, Rakhoon Gu, Haerin Park, and Seonjin Ha from the Sustainable Innovation Team

Q. What does ESG mean to Amorepacific? What makes it different from
that of other companies?

A. Amorepacific has conducted a broad spectrum of ESG activities since it first established sustainable management strategies and systems back in 2008 to protect the environment and fulfill its social responsibilities. In June this year, it became the first company to announce the 2030 sustainability pledge in the Korean beauty sector.

I dare to say that Amorepacific has led the ESG efforts in the Korean beauty sector so far. What enabled Amorepacific to push ahead with the ESG was our commitment to making ‘A MORE beautiful world’. If you are to translate this from an ESG perspective, it would be the realization of business where everyone grows based on the empathy with customers, the society, and Mother Nature. ESG is a very useful navigator that shows which direction to go to achieve the corporate goals.

The key to Amorepacific’s ESG is ‘empathy’. All of our strategies and action plans are grounded in empathy with numerous stakeholders surrounding the corporate ecosystem. Pursuing harmonious coexistence with the global community and nature, understanding their cherished values more deeply and broadly, and reflecting those values into our products and services, which are closely linked to the daily lives of our customers, that is the sustainable business that Amorepacific seeks to achieve.

Q. This year, Amorepacific announced the ‘2030 A MORE Beautiful Promise’.
Can you tell us what you have achieved so far?

A. In June this year, Amorepacific announced ‘2030 A MORE Beautiful Promise’ that consists of five sustainable pledges to be achieved by 2030. These five goals fall under two pillars, 'moving forward together with customers and society', and 'coexisting responsibly with nature’. These goals and action plans are essential tasks that we will focus on not only this year, but for the next decade.

The achievement we have made so far for the first pledge, making our brand and product more sustainable, is that our major brands have set up missions, visions, and strategies for this and that they have announced their roadmaps and goals. In July, LANEIGE declared the Blue Movement, while innisfree made an official declaration to become a Skin-loving, Earth-caring brand in September, and has actively joined activities to support sustainable lifestyle of customers. Conducting quantitative evaluation of the environmental impact of products is the first step in reducing the carbon footprint of individual products. This year, Carbon Trust, a UK organization analyzing sustainability issues of companies, certified LANEIGE and Sulwhasoo products for having measured or reduced the water and carbon footprint. In the long run, it is important to set up an in-house system for assessing the impact on the environment, so we are carrying out a project to that end.

The second pledge was to enhance our internal and external diversity and inclusiveness, and to grow together with vulnerable groups in the society. This year, we made the Amorepacific Diversity & Inclusion Policy to build a corporate culture with increased diversity and inclusiveness. Over the next few years, we will offer training to employees to enhance their awareness on this.

The third and fourth pledges were about responsible response to climate crisis and plastic waste. In March this year, Amorepacific became the first beauty company in Korea to join the RE100, a global initiative to commit global businesses to 100% renewable electricity. We have also adopted eco-friendly electric cars to reduce carbon emissions in the logistics sector. So far, we’ve reduced 415 tons of plastic usage by replacing the existing plastic containers with lightweight containers, using alternative materials, and increasing the number of our refill products. In May this year, we opened the second cosmetics refilling station in E-Mart Jayang, further increasing our effort to spread recycling and zero-waste practices.

The fifth pledge was to endeavor to preserve biodiversity. Among the issues in this area, palm oil management is one of the most critical concerns that needs to be solved by the beauty industry. Amorepacific recorded the highest score in the WWF Palm Oil Buyer Scorecard 2021, which assesses companies for their use of sustainable palm oil and their relevant activities, being recognized for the activities undertaken so far.

The Sustainable Innovation Team will continue to strive to bring about ever more meaningful outcomes with related departments to realize the five pledges under the 2030 A MORE Beautiful Promise.

Q. When did you feel the most rewarded while working on sustainable management?

The most rewarding moment is when I see more colleagues who empathize with the idea of sustainable beauty. They are actively and assertively driving change in many areas whether they are in R&D, production, or logistics. In fact, transforming our daily work in a more sustainable perspective ultimately helps us and our customers. It feels worthwhile because we are now leading the mutual growth with our partner companies and are supporting them to lead the ESG.

I think customers are noticing the change that began inside the company. This year, we conducted a campaign, Make Your Own Digital Greencycled Plant Pot, where customers made a creative digital image of a greencycled plant pot, which is made by upcycling the used bottles that our customers have sent back to us. In this event, our customers posted the image on social media, and we drew and sent the actual greencycled plant pot to the winners. We also donated to WWF in which we could donate more if more people participated in the event. In the beginning, we were worried that no one would take part (chuckles), but to our surprise, over 15,000 people joined the campaign. They applauded the greencycle campaign, saying they’ll continue to collect used bottles.