Placing ESG at the center, LF will strengthen its sustainable corporate value
LF acknowledges that environmental, safety, and health are the top priorities for the company and strives to practice business activities that respect people, and the environment in all aspects.
To achieve this, LF has established a dedicated organization for environmental safety and health and has built a management system based on ISO 14001, ISO 45001, and K-ESG guidelines.
Furthermore, starting from 2022, LF transparently discloses environmental information, such as greenhouse gas emissions, energy usage and waste disposal. The company also consistently works towards identifying, and improving major hazardous risk factors within its facilities, in collaboration with employees and partner companies, to maintain a safe workplace without accidents.
LF will continue its efforts to secure new corporate values through the realization of a safe and healthy workplace in collaboration with all employees and stakeholders, and by promoting environmentally friendly management.
LF introduced “CartonWrap”, an eco-friendly packaging system in March 2021, which is expected to advance the existing packaging system and contribute to environmental protection. The system automates the entire product packaging process and dramatically reduces packaging waste. Put clothes into a slot, and a “customized box” is made according to the size of the product. Every process from packaging to attaching a waybill is automatically conducted.
CartonWrap significantly reduces the use of boxes and OPP, which is box/packing tape since it makes a customized box after scanning wallets, bags, coats, etc. In addition, it doesn't require the use of package cushioning including Styrofoam and airbags anymore which is pointed out as one of the main causes of environmental pollution. LF is expected to save about 25% (410 tons) of boxes and 90% (0.2 tons) of tape by introducing CartonWrap. Plus, vinyl is no longer neededㅡso far, 66 tons of vinyl have been used each year.
LF’s flagship brand Hazzys held a 3D virtual fashion show in March 2021 and a 3D virtual runway “Hedges Virtual Runway” in May for the first time in Korea. In the show, male and female avatar models wore clothes designed using the 3D design solution “CLO”.
This technology allows for garment visualization throughout the entire clothing production from design, sampling, and modification to a virtual fashion show. It also allows to design clothes for sale even without making a sample, virtually applying other details such as buttons and zippers and quickly starting production.
Hazzys is the first in Korea to use such technology in sample production, a fashion show, product launching, marketing, and customer relations. The technology is considered highly eco-friendly since physical resourses and samples are no longer needed.
LF is actively introducing products made of eco-friendly recycled materials through its brands such as Hazzys, DAKS, A.T.CORNER, and Jill Stuart New York.
It has reduced carbon emissions and saved energy by using recycled nylon yarn while contributing to environmental conservation by using recycled leather which does not use harmful substances during processing and thus prevents further contamination.
In particular, A.T.CORNER, which is LF's contemporary brand for young female customers, has launched an eco-collection with clothes made of eco-friendly materials from the 2020 spring/summer season.
As eco-friendliness has become a must, not an option, the company is trying to satisfy greensumers who want to purchase products produced in a way that helps the environment.
Especially, its "Eco denim line" is made of Bossa Denim from Turkey, which is recognized as one of the best eco-friendly jean materials in Europe.
Bossa Denim, which is loved not only by high-end European denim brands but also by global brands across the world, is produced in the most efficient way to save water and natural gas, using yarn made of recycled PET and natural chemical materials and dyes.
LF plans to expand its eco-friendly line by continuing to look for ways to better utilize various recycled materials with partners with expertise and technology.
With growing social interest in animal protection, ethical consumption, and veganism, LF launched its first female vegan cosmetics brand ATHE in October 2019.
By securing functional plant ingredient “Apinyouth™” through joint R&D with “Mibelle”, a famous raw materials institute for cosmetic products in Switzerland, ATHE offers a range of certified vegan cosmetics without conducting any animal testing.
A certification for vegan cosmetics can be obtained from “Expertise Végane Europe (EVE)” in France, “The Vegan Society” in the UK, and “V-label” in Italy after a thorough review. In order to be certified, a company must not conduct animal testing in the manufacturing process nor use animal ingredients as raw materials or packaging materials.
LF's flagship brand Hazzys has donated part of its profits from its “Haley” line to an animal shelter named “Nest of Angels” to increase awareness of abandoned dogs, a serious social problem emerging since 2017.
Premium vegan cosmetics brand “ATHE” uses part of its profits to run a campaign to create an urban forest together with “Forest for Life”.
Forest for Life is planning and operating various projects under the mission of “planting trees, cultivating and preserving the forest, and promoting its public value to create a healthier society where everyone can enjoy the value of the forest”.
By joining their efforts from long-term and sustainable perspectives, ATHE plans to create social value.
The Independent Director Recommendation Committee, established in March 2021, has strengthened the company's fairness of nominations and transparency of the appointing process by verifying the competence and independence of candidates in advance.
The committee, which is composed of three or more directors and a majority of outside directors, has the right to recommend candidates and have necessary discussions.
It contributes to creating a favorable environment to promote the growth and development of LF while enhancing the independence and expertise of outside directors.
Since 2015, LF has operated the Compensation Committee, which deliberates on the limit and appropriateness of remuneration for directors to be presented at the general shareholders' meeting for the first time in Korea.
With outside directors holding a majority, the committee deliberates on the limit of remuneration for directors and key executives (CEO, etc.) to be presented at the general shareholders’ meeting based on objective evaluation results. Reinforcing the objectivity and transparency of the company, it has laid a systematic foundation for responsible management.
Meanwhile, LF chairman Koo Bon-geol resigned as CEO in March 2021 to strengthen the independence of the board of directors by separating it from the management.
The number of female executives working for LF has rapidly been growing over the last five years. According to the electronic disclosure system of the Financial Supervisory Service, the number of unregistered female executives at LF went from 5 in 2016 to 12 in 2020.
In percentage terms, it increased from 19% to 43% on the back of LF’s continued efforts to fundamentally transform the organization by managing its personnel based on their performance and competency regardless of gender and age.