FILA Holdings Corp.

- 2022 saw the expansion of FILA’s sustainability management system, with its actions organized under five sustainability themes

FILA Holdings has highlighted its sustainable footwear using discarded materials while stressing the importance of product circularity in its latest sustainability report, “YOUR FILA IMPACT - FILA Integrated Report 2022.” These efforts are in line with FILA’s steadfast commitment to achieving its 2025 sustainability management goals outlined last year.  

“YOUR FILA IMPACT 2025” identified five group-wide sustainability themes: “Product Circularity,” “Climate Action,” “Caring for People,” “Supply Chain Transparency,” and “Business Commitment.” The company’s fourth annual sustainability report since 2019 demonstrates its progress in these areas with a comprehensive overview of FILA’s sustainability management.

FILA made significant strides in its pursuit of sustainability management throughout 2022. A new product circularity model was established to minimize the negative environmental impacts associated with the traditional product lifecycle, from development and production to disposal. 

As part of its commitment to creating circularity across the value chain, the company repurposed 9,000 discarded footwear samples generated during the production stage to manufacture 10,000 midsoles for three sustainable footwear models. Additionally, FILA recognized the importance of supply chain transparency and established a Supply Chain Task Force to address risks and support suppliers in minimizing their environmental impacts. 

The company further showcased its dedication to sustainability at the 2022 United Nations Climate Change Conference (COP 27) in Egypt. During the conference, FILA introduced its efforts to achieve product lifecycle transparency through the implementation of Near Field Communication (NFC) tags in apparel. In response to intensifying climate change warnings and unpredictable weather events, FILA disclosed Scope 3 greenhouse gas (GHG) emissions across its entire value chain for the first time and underwent a third-party audit on GHG emissions management.

“'YOUR FILA IMPACT - FILA Integrated Report 2022” also outlines its other remarkable ESG achievements over the last year including becoming the first Korean fashion company to be included in the Dow Jones Sustainability Indices (DJSI) Korea and being recognized as a “Top-Rated ESG Company” by Sustainalytics. Recently, FILA Holdings was honored as one of "Korea's Sustainability Leaders 2023" by global research institute Statista in conjunction with the Hankook Ilbo and The Korea Times.

FILA remains dedicated to meeting sustainability challenges and opportunities. The company is committed to improving its sustainability management performance and creating shared value for all stakeholders. This commitment extends to its strengthened shareholder return policy under FILA’s five-year global strategy “WINNING TOGETHER.” In 2022, the company paid a total of 94.95 billion won in dividends, including a first special dividend payout since FILA Holdings’ foundation, while its dividend payout ratio has also increased for five consecutive years. Furthermore, the company introduced a Board Skill Matrix in 2022 to assess the competence of directors from various perspectives, maximizing their contributions to the company's management while ensuring stakeholders can exercise their voting rights rationally.

“Last year was particularly meaningful in that we further strengthened our mid- to long-term strategies in all directions of sustainability management,” said an official from FILA Holdings. The official added, “We will do our best to continue to extend our sustainability management and grow our business capabilities to create shared value in every aspect of our business operations. We will effectively communicate our progress and achievements through our annual sustainability reports.”