FILA Holdings Corp.

- As the first company in Korea’s fashion industry to be recognized internationally for sustainability management, FILA Holdings’ efforts to improve ESG factors bear fruit

FILA Holdings announced on the 10th that it was newly included in the “2022 Standard & Poor’s Dow Jones Sustainability World Indices (DJSI) Korea,” a key benchmark for corporate environment, social, and governance (ESG) management.

Published by international financial information agency S&P Global, the DJSI are a family of evaluations tracking the performance of the world’s leading companies based on their sustainability management and financial performance. First launched in 1999, the annually announced DJSI have become an eagerly awaited influencer of public confidence around the world. Last year, 52 out of 205 Korean companies subject to evaluation were included in the DJSI Korea. Joining this top 25.4% group, FILA Holdings was among 13 companies to make their debut in the DJSI Korea.

FILA Holdings is also the first Korean fashion company to be included in the DJSI Korea. It received high scores for the ESG performance of several of its sustainability management activities in 2022. These activities were conducted under its five sustainability management strategies of Product Circularity, Climate Action, Caring for People, Supply Chain Transparency, and Business Commitment.

On the environmental front, FILA Holdings is focusing on steadily expanding the proportion of sustainable products across categories such as shoes and clothing. The company is tackling the social aspect by establishing a partner management and supervision system for responsible and transparent supply chain management while also promptly and actively responding to global supply chain regulations and trends. Moreover, it is enhancing shareholder value and setting up a healthy governance structure through shareholder-friendly policies, including a first-ever special dividend.

FILA Holdings’ sustainability management activities are bearing fruit as they are being recognized by both internal and external stakeholders. The company additionally proved its sustainability management status by obtaining high ESG evaluations from major domestic agencies last year. FILA Holdings received an A grade from Sustinvest, as well as the highest evaluation of S from the Korea ESG Research Institute and a B+ grade from the Korea ESG Standards Institute.

FILA Holdings is also taking part in international sustainability initiatives, including the declaration by the Task Force on Climate-Related Financial Disclosures (TCFD) to preemptively respond to global climate change, which is an unprecedented step in the domestic fashion industry. To improve transparency, the company is working with the Sustainability Accounting Standards Board (SASB) to disclose its sustainability management performance. In addition, FILA Holdings has expressed its willingness to resolve sustainability issues within the fashion industry through activities such as joining the UN Global Compact (UNGC) in March 2021 and participating in the 27th UN Climate Change Conference (COP27) held in Egypt in November 2022.

“It is very meaningful that FILA Group’s sincere sustainability management has received good reviews from domestic and foreign evaluation agencies along with the honor of a domestic fashion ‘first,’” said spokesperson Jamie SangHee Jeong. She added, “We will be reborn as a leading sustainability management company committed to economic performance and social responsibility worldwide under our five-year global strategy ‘WINNING TOGETHER.’”

Looking ahead, FILA Holdings has laid the foundation for sustainability management by establishing mid- to long-term goals under the “YOUR FILA IMPACT 2025” strategy. Based on this, the company’s Sustainability Report has been published for stakeholders around the world since 2019, expanding the scope of its sustainability management.