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Amorepacific becomes the first Korean beauty company to join RE100

Global 2021-03-10
  • Pledges 100% transition to renewable energy for its global sites by 2030

March 10, 2021/ Seoul - Amorepacific has become the first Korean beauty company to join the global RE100 initiative with a goal to source 100% renewable energy to power all of its production sites and offices (HQ, R&D, logistics, and production centers) by the year 2030.

RE100 is a global collaborative initiative among companies committed to using 100% renewable energy. The program was launched by the international non-profit organization, The Climate Group, in partnership with CDP, in 2014. As of March 2021, over 290 companies, including Google, Microsoft, and Apple, have joined the initiative. Amorepacific is the first from the Korean beauty industry to become a member of the global RE100.

Amorepacific began addressing environmental issues by setting its sustainable management goals in 1993. The company started voluntarily tracking its GHG emissions inventory in 2008 and has made continuous investments to begin its transition to renewable energy sources. To participate in climate action, it has improved energy efficiency for its buildings, reduced per-unit GHG intensity, and created an internal 'Energy Innovation' task force.

In 2020, Amorepacific sourced 5% of its electricity from renewable sources, including solar power and geothermal heat. It plans to further add renewable energy generation facilities on the rooftop of its production plants and idle surfaces to increase renewable energy supply.

Located in Yongsan, Seoul, South Korea, the Amorepacific global HQ building is rated first-level in G-SEED (Green Standard for Energy and Environmental Design) and energy efficiency. It is also certified as the gold grade in LEED (Leadership in Energy and Environmental Design). It achieves 37.6% less energy consumption than its estimated energy demand using eco-friendly systems.

The combined effort of Amorepacific employees also creates a positive impact. Specialists responsible for energy consumption from the company’s HQ, R&D, logistics, and production sites formed the 'Energy Innovation' task force in 2019. The team conducted a campaign for energy saving and reducing GHG emissions and efficiently converted all lighting modules in the company's globally operated production centers - including those located in Shanghai, China, and Osan and Daejeon, Korea - to LED lighting. An AI system was also implemented to increase energy efficiency. As a result, Amorepacific's GHG emissions decreased by 7.4% in 2019.

To achieve the 100% renewable energy goal, Amorepacific will utilize advanced technologies to manufacture products at lower temperatures, thus reducing the environmental impact in all of the development and production stages. It will also develop more low-carbon footprint products using ingredients and packaging materials with lower GHG emissions based on LCA (Life Cycle Assessment) results.

In addition, Amorepacific will utilize 3rd party PPAs and green contracts operated by the Korean government. In February 2021, Amorepacific purchased the Green Premium policy, which will replace 30% of the 2021 estimated power demand for its production center in Osan with renewable energy.

Suh Kyung-bae, Chairman and CEO of Amorepacific Group, said, "Amorepacific agrees that resolving the climate issue is an essential agenda not only for corporate sustainability but for the survival of humanity. By achieving the RE100 goal by 2030, we hope to contribute to international climate action. As a global corporate citizen, we will cooperate to reduce our carbon footprint."

Aleksandra Klassen, RE100 Senior Impact Manager, The Climate Group, said, "We are delighted that Amore Pacific has become the first beauty company in South Korea to join RE100, the global initiative led by The Climate Group in partnership with CDP. By committing to 100% renewable electricity by 2030, Amore Pacific is taking an important step toward improving its sustainability, joining a growing number of companies committed to driving market change. This sends a powerful message that renewable electricity makes good business sense, and we encourage others to follow."

Ousam Jin, President of RE100 Committee of KSNRE, the RE100 Regional Delivery Partner in South Korea, said, "Amorepacific, one of the most beloved companies in the cosmetic industry, is proudly joining RE100. Its customers will be proud of their participation in the journey to solving climate challenges." He added, "We believe Amorepacific's joining RE100 will surely impact the consumer-facing businesses in Korea, which we hope leads to taking action."