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Environmental Management

Environmental Management Policy

In pursuit of sustainable eco-friendly management in accordance with our management policy, Orion has embraced environmental management practices as follows by conducting eco-friendly activities in all stages of product development, production, sale, & disposal.

01 Compliance with environmental laws
We comply with environment-related laws and strictly prevent environmental risks by applying rigorous environmental control standards.

02 Eco-friendly management system
Based on the corporate management system that promotes environmental practices, we set action plans, regularly measure our progress, and make improvements as needed.

03 Eco-friendly initiatives
We always minimize our environmental impact by using less energy, reducing GHG emissions, and cutting down the use of pollutants throughout the process, including product development, production, sale, and disposal.

04 Realizing ideas into action
We provide all employees with an opportunity to learn more about environmental practices and enhance their competencies so they can have in-depth knowledge on our policies and system and put them into practice.

Orion Holdings Corporation
CEO Inn-chul Hur

A Dedicated Organization for Environment Management

We formed the ESG Steering Committee, a decision-making organization under the BOD, to deliberate and make decisions on major ESG issues and action plans including investments in environmental initiatives. We have also set up a Green TF under the CSR team, a dedicated organization for ESG issues, to formulate and implement eco-friendly management strategies company-wide. Eco-friendly management strategies devised this way are adopted by production (each factory), ENG, and general affairs organizations responsible for implementing environmental initiatives.

ESG Steering Committee
ESG decision-making body
Dedicated organization for ESG issues
CSR Team
Green TF
Responsible for making and implementing eco-friendly management practices
Production(Cheongju/ Iksan/
Ansan factories)
ENG
General affairs manager
Medium- to Long-Term Goals and Strategic Framework for Eco-Friendly Management

Orion is pursuing its vision of "Green Growth" through strategic directions focused on "Climate Change Response" and "Sustainable Resource Circulation," establishing the following medium- to long-term goals and strategic tasks.

오리온 GREEN GROWTH
Vision Orion GREEN GROWTH 
Medium- to Long-Term Goals Greenhouse Gas Energy Water Usage Waste
2030년 Reduce greenhouse gas emissions by over 30%
(compared to 2018, Scope 1 and 2 total)
Transition to renewable energy sources for over 40%.
Reduce water usage by over 10%
(compared to 2020, major business sites)
Achieve a waste recycling rate of 100%
(major business sites)
2050년 Achieve carbon neutrality Achieve 100% renewable energy across all facilities. Achieve water conservation across all facilities Reduce waste and recycle across all facilities
Strategic tasks
    ▪ Identify and expand greenhouse gas reduction activities (reduce emissions by over 3% year-on-year, per unit)
    ◽Improve equipment efficiency (air compressors, pumps, refrigerators, etc.)
    ◽Develop energy recycling measures (waste heat recovery, condensate recovery, etc.)
    ◽Establish an Energy Management System (EnMS)
    ◽Transition to 100% electric vehicles for commercial use
    ▪ Review the introduction of domestic renewable energy
    ◽Existing Factories: Direct PPA, REC purchases, etc
    ◽New Factories: On-site generation such as solar energy
    ▪ Expand overseas renewable energy investments
    ◽China: Install solar power across all Factories and introduce wind power
    ◽Vietnam: Install solar and biomass energy across all Factories
    ▪ Implement water conservation activities tailored to site
    ◽Measure and monitor water usage
    ◽Reduce water usage through process improvements
    ◽ Introduce water reuse technologies, such as raw material washing
    ▪ Expand waste reduction and reuse/recycling
    ◽ Improve packaging materials and expand eco-friendly packaging such as Flexo printing
    ◽Design products for easy reuse/recycling
    ◽Promote zero waste to incineration
 
Implementation
method

Strengthen global eco-friendly capabilities

Manage the entire value chain

Establish action plans related to business operations

Key eco-friendly Activities and Achievements

By 2030, Orion aims to reduce greenhouse gas emissions by 30% (compared to 2018 levels) and achieve carbon neutrality by 2050.
  -Establishment of a Global Environmental Information System
  -Introduction of eco-friendly printing equipment ('Flexo machines') 
  -Introduction of electric vehicles for commercial use

Green Investment Performance (in Korea)

(Unit: KRW 100 mil)

86.0 35.7 28.8
88.7 41.2 26.7
Green investment schemes (reported figures)
Environmental investment amount

2021년 2022년 2023년

103%
116%
93%
Execution Rate Execution Against Plans
Performance of Raw Materials Use and Eco-Friendly Purchase
원부자재 사용실적 및 친환경 구매/매출 실적
Category Unit 2021 2022 2023
Total raw material usage ton 117,130 130,295 139,997
General raw materials ton 117,130 130,295 139,997
Eco-friendly raw materials ton - - -
Total purchase amount of raw materials KRW million 1,951.8 2,590.5 3,048.4
General raw materials KRW million 1,951.8 2,590.5 3,048.4
Eco-friendly raw materials KRW million - - -
Total amount of consumables used ton 116.9 115.8 114.3
Paper ton 71.9 75.0 87.6
Plastic (container/tray) ton 7.6 9.2 9.8
Miscellaneous materials, etc. ton 37.4 31.6 16.9
Ink/Solvent unit 1,343,696 1,230,052 1,162,533
Total purchase amount of supplies KRW million 401.5 375.3 521.6
Purchase amount of eco-friendly materials KRW million 310.3 296.3 429.3
Paper KRW million 279.9 260.0 390.7
Plastic (container/tray) KRW million 10.1 10.7 12.9
Mercury ink/solvent KRW million 20.3 25.6 25.7
Proportion of purchasing eco-friendly materials %

77.3%

79.0%

82.3%

Sales of eco-friendly packaging products KRW million 5,369.3 6,987.2 8,919.1
Climate Change Response

In response to the global initiative to tackle climate change, we are ramping up our efforts to lower GHG emissions and control energy use as a group. In Korea, the goal of reducing energy consumption by 3% in 2021 compare to 2020 was achieved as a result of promoting improvement activities for energy efficiency such as improving production facilities. (3% reduced : 1,335 TJ in 2020 → 1,295 TJ in 2021) In addition, we support energy-reduction and greenhouse gas-reduction technologies to our subsidiaries and partners. Overseas affiliated companies are actively expanding their investment in renewable energy. In recognition of our hard work, we became the only company that had passed the screening standard of the National Quality Innovation Awards 2021 among all nominated companies in the industry and won the Prime Minister's Award.
※ Aggregation range of domestic GHG emissions and energy use : all domestic business sites(headquarters, factories, business offices, logistics centers, etc.)

국내 온실가스 배출량 (Unit : tCO2e)
국내 온실가스 배출량
Category 2021 2022 2023
Direct emissions 25,822 27,090 28,425
Substitute emissions 39,307 40,613 42,983
Total 65,129 67,703 71,408
Unit (tCO2e/ton of product) 0.78 0.73 0.72

※ Domestic Greenhouse Gas Emissions Scope: Includes all domestic sites (headquarters, factories, sales offices, logistics centers, etc.) based on Scope 1/2.
※ Domestic data has been third-party verified according to the emissions trading system, while overseas data is in a limited verification state. Full disclosure of emissions data for overseas operations will follow after reasonable verification is completed.

법인별 에너지 사용량 (Unit : TJ)
법인별 에너지 사용량
사업장 구분 2021 2022 2023
Domestic Non-renewable energy Cheongju Factory Fuel 259 276 296
Electricity 376 377 407
Subtotal 635 653 702
Iksan Factory Fuel 189 205 209
Electricity 312 338 360
Subtotal 499 543 568
Ansan Factory Electricity 41 43 43
Steam 14 15 15
Subtotal 55 58 58
Head officeㅣOther Fuel 36 31 30
Electricity 68 66 64
Subtotal 484 512 535
Total 1,295 1,351 1,424
Unit (TJ/Product ton) 0.0155 0.0145 0.0144
Overseas Non-renewable energy China Fuel 646 716 691
Electricity 407 391 381
Steam 45 40 37
Subtotal 1,098 1,147 1,109
Vietnam Fuel 343 335 345
Electricity 381 399 431
Subtotal 724 734 776
Russia Fuel 55 57 58
Electricity 132 167 196
Subtotal 187 224 254
Total 2,009 2,105 2,139
Renewable energy China Solar - 10.3 24.9
Subtotal - 10.3 24.9
Vietnam Solar 11.2 20.4 19.2
Biomass - 73.9 97.8
Subtotal 11.2

94.3

117
Total 11.2 104.6 141.9
Total 2,020 2,210 2,281

※Energy Consumption Scope: [Domestic] Includes all domestic sites, [Overseas] Includes all production factories
-China: Langfang, Shanghai, Shenyang), Guangzhou
-Vietnam: Yen Phong(Yên Phong), My Phuoc(Bến Cát)
- Russia: Novosibirsk(Новосибирск), Tver(Тверь)

Water and Waste Management

In order to ensure the efficient use of water resources throughout our production processes, we have set a goal to reduce water consumption intensity by 2% compared to the previous year. However, in 2023, water usage increased by 0.3% (2022 water usage intensity: 7.83 → 2023: 7.85). Specifically, the Cheongju Factory is leading the way in eco-friendliness by recycling 100% of the water used for potato washing for other cleaning purposes. Additionally, we are managing operations to achieve a 100% waste recycling rate (2023 recycling rate decreased by 0.2%, from 98.5% in 2022 to 98.3% in 2023). We also launched the "One-Stop Package" eco-friendly snack series, designed for easy display by opening the packaging. At each factory, 100% of sludge and Factory residues are repurposed for compost and soil improvement. ※ Scope of water usage and waste generation: Domestic key sites (headquarters, Cheongju Factory, Iksan Factory, Ansan Factory) 

국내 용수 사용량 및 재이용률 (Unit : ton)
국내 용수 사용량 및 재이용률
Business place Category 2021 2022 2023
Cheongju Factory Water supply 322,785 329,925 366,805
underground water 159,549 164,276 162,718
Subtotal 482,334 494,201 529,523
Iksan Factory Water supply 185,742 217,842 230,183
underground water 0 0 0
Subtotal 185,742 217,842 230,183
Ansan Factory Water supply 3,102 3,419 3,491
underground water 0 0 0
Subtotal 3,102 3,419 3,491
Head office Water supply 9,917 14,429 14,747
underground water 0 0 0
Subtotal 9,917 14,429 14,747
Water supply 521,546 565,615 615,226
Groundwater 159,549 164,276 162,718
Total usage 681,095 729,891 777,944
Unit (ton/ton of product) 8.16 7.83 7.85
Reuse amount 14,233 14,241 20,678
Discharge 666,862 715,650 757,266
Reuse rate

2.1%

2.0%

2.7%

Wastewater discharge 588,707 540,084 469,864

※ 최근 3개년 비교를 위해 '21년에 미포함 되었던 안산공장 데이터를 반영하였음.

Waste generation and recycling rate(Unit : ton)
폐기물 발생량 및 재활용률
Category 2021 2022 2023
General Waste Recycling 7,978 8,451 9,699
Incineration 93 94 40
Other 0 6 54
Subtotal 8,071 8,551 9,793
Designated waste Recycling 191 230 91
Incineration 39 29 80
Other 0 0 -
Subtotal 230 259 171
Total 8,301 8,810 9,963
Unit (ton/ton of product) 0.099 0.094 0.100
Waste recycling amount 8,169 8,681 9,790
Emission 132 129 173
Recycling rate 98.4% 98.5% 98.3%

※ 최근 3개년 비교를 위해 '21년에 미포함 되었던 안산공장 데이터를 반영하였음.

Environmental Risk Control
Accident-Handling System

We operate our accident-handling system in our headquarters and plants to best fit the distinctive traits of each location for practical risk control in the field.

Head of the General Affairs Department

Broadcast in the headquarters Relevant police station / fire station

Heads of each team

Workers in each division

Headquarters

Chairman of the Accident-Handling Committee(Factory manager)

Vice chairman of the Accident-Handling Committee(Heads of each organization)

  • Occupational Accident Response Team(Business division)
  • Environmental Accident Response Team(Facilities division)
  • Fire Response Team(Facilities division)
Factories
Chemical Substance Control

We rigorously manage all the chemical substances we handle and 530 types of reagents for analysis based on Material Safety Data Sheet (MSDS) standards, as well as environmental risks by managing legal risks, usage, and storage facilities.

  • Legal risk control

    • Completed offsite risk assessment, installation inspection, & regular inspections
  • Usage and storage facility control

    • Maintenance of locking devices, safety tool box, GHS, thermometers, hygrometers, MSDSs, storage bins & containers, ventilation fans, & usage logs
Environmental Regulation Response Strategy and Activities

As the importance of corporate social responsibility towards the environment and sustainable growth increases, we have established a company-wide response system to actively address the strengthening of environmental laws and regulations. The following strategies and activities are implemented

1) Environmental Regulation Compliance Evaluation Manual
At the corporate level, we have developed a manual to identify environmental laws and regulations requirements and to conduct compliance evaluations. We received certification for systematic evaluation and monitoring of environmental regulation compliance through our Environmental Management System (ISO 14001).

2) Checklist for Preventing Environmental Regulation Risks
Environmental managers at each factory operate checklists to proactively address changes and amendments to applicable laws and regulations throughout the entire production process. This checklist is prepared and managed in a monthly environmental work calendar format.

3) Self-Inspection Activities
Employees at each factory conduct regular checks on environmental regulation issues through a self-inspection program. They perform monthly inspections and implement corrective actions for any deficiencies identified.

Environmental Regulation Violation Status

In 2023, the Iksan Factory recorded two violations of environmental regulations


1. Failure to Record Operation Logs for Air Emission Facilities and Pollution Control Facilities: Fine of 1 million KRW
2. Failure to Record Waste Management Ledger: Fine of 800,000 KRW These issues have been addressed, and preventative measures, including training for responsible personnel, have been implemented to ensure better management and compliance.

Visit the ENV-INFO SYSTEM
Community Environmental Impact Reduction and Biodiversity Conservation Activities

We contribute funds to the Orion Foundation to implement community environmental impact reduction activities and biodiversity conservation initiatives, as outlined below

※Marine Animal Ecology Research Institute (MARC) Research Achievements
-2023: Acoustic-behavioural research on Southern Resident Killer Whales and Bottlenose Dolphins
→ Conducted 24 monitoring sessions for Southern Resident Killer Whales along Jeju's coast, discovering and identifying 22 individuals.
→ Detected Bottlenose Dolphin sounds during a 145-day acoustic survey along Yeosu coast.


주요 교육프로그램
Lowering environmental impact Biodiversity preservation
World Vision
Global 6K For Water:
15million KRW(2018-2020)
Jeju Techno Park
Jeju Water Resource Protection:
300 million KRW(2021-2022)

The Gotjawal Trust of Jeju Foundation
Gotjawal Ecological
Conservation: 70million KRW(2021)

WWF
Protection of Bottlenose
Dolphins: 10million(2021)
MARC
Protection of Bottlenose
Dolphins:15million(2022-2023)
KRW 200 million in total
Environmental Training for Employees

We provide environmental training for our employees to ensure environmental management practices designed according to our management polices are employed in earnest for business. We have offered training sessions led by an expert in GHG emissions, workshop sessions, and sessions on energy saving targeting people in charge of environmental affairs in each factory. Moreover, we also provide on/ offline programs on the concept of ESG and case studies for those involved in ESG initiatives to enhance their understanding on ESG management and explore how to implement measures.

Environmental Performance Evaluation

We gauge an ethical action index to manage and asses the group's ethical management practices by evaluating and managing environment management performance by affiliated company and organization. The evaluation items include energy savings, reduction of carbon emissions & pollutants, compliance with environmental laws, preventive measures, and cleanup campaigns. The organization and managers responsible for environmental affairs are making environmental KPIs, namely energy expenses, reduction of industrial waste, streamlining of packaging space, and reduction of the share of harmful chemicals to achieve their goals aligned with the ethical action index.

Establishment of a Global Environmental Information System 

In 2021, Orion completed third-party verification of greenhouse gas emissions from overseas subsidiaries in China, Vietnam, and Russia, in accordance with international standards, with the Korean Standards Association. To manage carbon emissions targets, we introduced the 'Global Carbon Emission Integrated Management System,' the first of its kind in the domestic food industry, for all subsidiaries. This system efficiently manages key data such as greenhouse gas emissions, emission allowances, and emission facility statuses across domestic and international sites, including those in Korea, China, Vietnam, and Russia. In March 2023, the system was rebranded as the "Global Environmental Information System," and it has been upgraded to integrate and manage key environmental information, including energy, water usage, waste, and other pollutants, alongside carbon emissions.

Introduction of eco-friendly printing equipment ('Flexo machines') 

Since 2019, we have introduced and been operating eco-friendly printing equipment called flexographic (Flexo) printing machines. Unlike the traditional gravure printing method, Flexo printing uses relief printing, which significantly reduces the use of ink and harmful chemicals such as organic solvents. We have invested 12 billion KRW (7 billion in 2019 and 5 billion in 2021) to introduce two Flexo machines.
Currently, this technology is being applied to 39 products, including 'Choco Pie,' 'Pocachip,' and 'Wackle.' We plan to expand its use to cover up to 80% of all film-packaged products. By doing so, we can reduce ink and harmful chemicals consumption by up to 800 tons, significantly contributing to environmental protection. In September 2023, our flexo printing method was recognized as an eco-friendly packaging technology, earning the 'Green Technology' certification. Additionally, packaging materials using this technology were certified as 'Green Technology Products.'

Accredited with certificates (ISO14001) for environmental management systems

Orion China, the corporation with the largest production volume, was accredited with ISO14001 certification for the Lanvin, Shenyang, Shanghai, and Gwangju factories. In Korea, we were accredited with the certificate at all domestic locations by June 2022. In July 2021, the Shenyang factory received a Green Factory certificate from the Chinese Government in recognition of our efforts to become greener.

Delegated EVs for Sales Activities

The Korean headquarters has established and implemented a plan to convert all 1-ton vehicles for business into EVs. In 2021, two 1-ton EVs for business were adopted to the Geumcheon office in Seoul, and two more were adopted to the Busan office in 2022. Compared to existing vehicles, it has reduced carbon emissions and reduced fuel costs, and salespeople are highly satisfied, so we plan to replace 1-ton vehicles for business with EVs by 2025.

Cheongju Factory

The Cheongju Factory achieved remarkable success by winning the Presidential Gold Award in the Energy & Climate Change category at the National Quality Circle Contest for two consecutive years (2020-2021). In 2021, by installing power-saving devices, replacing cooling water circulation pumps, and improving air conditioning systems, the Factory reduced its greenhouse gas emissions intensity by 9.3% compared to the previous year. In 2020, the Factory installed an energy-saving steam supply system for Turtle Chip production and a waste heat recovery system for the potato fryer, achieving a 5.1% reduction in greenhouse gas emissions intensity. Notably, the waste heat recovery system was the first case in the food and beverage industry to be selected for the Agricultural Technology Commercialization Foundation's greenhouse gas reduction project, covering about 50% of the equipment investment costs. Additionally, the Cheongju Factory was selected for the Korea Agricultural Technology Promotion Agency's Energy Management System (EnMS) establishment support project, receiving 50% of the project cost and completing system installation in December 2022. In 2023, the Factory was chosen for the Korea Environmental Corporation's Carbon Neutral Equipment Support Project. This covered approximately 50% of the equipment investment to replace existing air compressors with high-efficiency systems and build enhanced control facilities.

Iksan Factory

The Iksan Factory also made notable achievements, winning the Gold Award in the Carbon Neutrality category of the National Quality Circle Contest in 2022, and Silver Awards in both 2023 and 2021. In 2023, the Factory reduced its greenhouse gas emissions by 4.72% (in intensity terms) through major improvements to its production line facilities. In 2022, the Factory achieved a 10.3% reduction in greenhouse gas intensity by installing external air supply systems for the molding rooms of the "Beatles" chewy candy product and improved refrigeration systems for the storage of frozen potatoes, the main ingredient for "Nuneul Gamja" snacks, reducing emissions intensity by 7.7%. In 2021, the Factory upgraded the air compressor system used for "Marine Boy" production and implemented a waste heat recovery system for the "Squid Peanut" line, reducing greenhouse gas emissions by 475 tons annually.

Providing Support for Suppliers & Affiliates

In 2020, we enhanced the efficiency of boilers used in manufacturing Orion Jeju Yongamsoo, the vacuum evaporator steam use, and the compressed air system, while achieving the feat of reducing 117.9 tons of GHG a year. We also store rainwater separately to recycle it as make-up water for used in the cooling tower of the facility. In 2021, we supported Samah International to recover waste heat from boilers and ovens, and helped them cut down 43 tons of GHG emissions a year.

Investment/Development of Renewable Energy in Overseas Branches

Our overseas branches focus on renewable energy adoption and operation. In 2022, the Chinese factories in Shanghai and Guangzhou installed solar power systems, followed by Shenyang, Langfang, and the packaging factory in 2023, completing solar system installations across all factories. Additionally, second-phase expansions of solar systems in Shanghai and Guangzhou were completed. In Vietnam, all factories (Yen Phong and My Phuoc) have also completed solar system installations.

Since 2022, the Yen Phong factory has introduced a biomass system that burns wood chips to generate heat, replacing the previous LPG boilers. Biomass has higher thermal efficiency and significantly reduces carbon emissions. It is expected to save 1.1 billion KRW annually in energy costs and reduce carbon emissions by 4,200 tons per year. There are plans to introduce biomass systems to the My Phuoc factory in 2024.