2013 Aekyung Environmental Report “Aekyung will become a company that prospers based on love and trust of customers and go beyond the era with transformation and innovation.” Aekyung has been grown thanks to customers’love and trust. We would like to express our deepest appreciation for your support and interest. Aekyung has been proud of itself for taking the lead in changing the history of living culture by far. We have worked together and made great efforts to become a beloved company. Even in the future, Aekyung will not satisfy its current status and make contributions to making a new living culture and creating advanced technologies. *This report is printed on eco-friendly recycled paper using soybean oil ink. Headquarters (150-052) 242 Gamasan-ro,m Guro-gu, Seoul Research Institute (305-345) 120 Sinseongnam-ro, Yuseong-gu, Daejeon Metropolitan City Design Center (121-869) Seri Building 41, Street 6, World Cup North-ro, Mapo-gu, Seoul Daejeon Plant (306-020) 174, Street 32, Daehwa-ro, Daedeok-gu, Daejeon Metropolitan City Cheongyang Plant (345-814) 1547-9 Chungui-ro, Jeongsan-myeon, Cheongyang-gun, Chungcheongnam-do www.aekyung.co.kr 2013 AEKYUNG ENVIRONMENTAL REPORT TABLE OF CONTENTS 06 CEO message 08 Report overview 09 Company overview 11 Main products Green management of Aekyung 18 Green management policy 19 Smart Green Management 21 Green management system 22 Green management education 23 Green-management examination 24 Coping with environmental accidents Environmentally friendly activities of Aekyung 28 Research & development and environment 31 Design and environment 32 Coping with climate change 33 Green purchasing 34 Environmentally friendly supply chain management 36 Compliance 37 Chemical substance management 38 Production and environment 39 Minimization of resource use 40 Improvement of environmental impact 42 Environmentally friendly logistics 44 Spark Mini, Green Product of the Year selected by consumers Participation in the Low-Carbon Green Growth Expo Social Contribution of Aekyung 48 Conversation with customers Conversation with communities 50 Conversation with employees 51 Awards Questionnaire of Aekyung environmental report 2013 AEKYUNG ENVIRONMENTAL REPORT AEKYUNG By cherishing each tree and each breath of fresh air, Aekyung creates a greener, cleaner world. we send love and respect from nature to the people. Smart Green Management of Aekyung. Aekyung is practicing a Smart Green Management making you naturally practice environmentally-friendly activities just by using products and enjoying services of Aekyung 6 2013 AEKYUNG ENVIRONMENTAL REPORT “With smart green management, we will be a company pursuing a mutual advancement based on a low-carbon green growth” 7 2013 AEKYUNG ENVIRONMENTAL REPORT Dear Stakeholder! In 2012, Aekyung proclaimed‘Smart Green Management’and did specific activities for continuous growth. Smart green management of Aekyung contains corporate will that it will make customers who are using products of Aekyung naturally join in environmentally friendly activities and resolution leading a low-carbon green growth. Aekyung received‘Contribution to a Low-Carbon Green Growth by Prime Minister’last year, and selected as a company who got‘Green Product of the Year’3 years in a row. Additionally, ‘Spark Mini’was awarded‘Green Product of the Year 2012’selected by consumers;‘LiQ’was awarded‘Minister Award from Ministry of Knowledge Economy in the category of Green Management’ . As such, Aekyung was able to become a company with an image of an ecofriendly corporation which is given to ones who made commitment to a low-carbon green growth. In particular,‘Spark’acquired a low carbon certification for the first time in the world. Therefore, 11 kinds of Spark products received the certification, which in turn making Aekyung a company who has the highest number of certified products with carbon labeling in Korea organized by Korea Environmental Industry and Technology Institute. By doing so, Aekyung was able to lay the foundation for a leading company taking the low-carbon green growth in household supplies industry in Korea. Based on many activities conducted last year, Aekyung participated in‘Voluntary Agreement on Large-Middle-Small Green Partnership-Green Product Partnership’supported by Ministry of Knowledge Economy and we have pursuing a project of‘Establishment and Promotion of System for Development of Green Product in Fine Chemical Industry’ . At the same time, Aekyung and its partners are in the process of establishing a system for win-win low-carbon green growth. Through such all accomplishments, Aekyung and partners are joining in Smart Green Management to take the lead in reduction in greenhouse gases, and was able to promote its corporate image of an eco-friendly company fulfilling social responsibilities. Aekyung will continuously pursue Smart Green Management, and promise that it will put ecofriendly activities into practice while meeting customer satisfaction. We would like to urge you to give us continuous interests and support. Thank you very much. March 18, 2013 Aekyung CEO Ko, Kwang-hyen 8 2013 AEKYUNG ENVIRONMENTAL REPORT Report overview Scope This report contains the efforts of Aekyung Industrial Co., Ltd from 2000 to 2012 to fulfill its social responsibilities as a corporate citizen such as marketing, research and development, purchasing, production, logistics, quality, environment, safety, and social contribution activities etc. Criteria for Writing Aekyung Industrial Co., Ltd made "Environmental Report Guidelines 2007", "GRI Guidline" of Ministry of Environment targeting the contents of various management activities which can continuously grow with the citizens of the world. Information Sharing This report was published to share management contents with all the interested parties related to Aekyung such as suppliers providing excellent raw materials and subsidiary materials to Aekyung, NGO trying hard for a low-carbon green growth of the society, financial institutions and shareholders investing related to Aekyung and executives and staff members etc. cultivating happy lives together in Aekyung including customers enjoying products and services of Aekyung. Additional Information If you have questions about various environmental management activities of Aekyung Industrial Co., Ltd., please contact us at the following contact number or address then we will sincerely provide information and answer your questions. http://www.aekyung.co.kr Address: (Zip code 345-814) Aekyung Industrial Co., Ltd. Cheongyang Plant 1547-9 Chungui-ro, Jeongsan-myeon, Cheongyang-gun, Chungcheongnam-do Tel : 041) 940-3550, 3553 Fax : 041) 940-3559 E-mail : pro@aekyung.kr, kim5773@aekyung.kr, yh.kim@aekyung.kr 9 Company overview 2013 AEKYUNG ENVIRONMENTAL REPORT Company History 1951. 10. Founded Daeryung Industrial Co., Ltd. 1954. 06. Founded Aekyung Fat and Oil Industry Co., Ltd. 1975. 07. Completed Daejeon plant, synthetic detergent plant 1985. 04. Established Aekyung Industrial Co., Ltd. 1994. 06. Completed Cheongyang plant 1997. 04. ISO 9002 certification for Cheongyang plant 1997. 04. Perfect environmental mark certification 1998. 07. Daejeon plant introduced environmentally-friendly power powder laundry detergent manufacturing process 2001. 10. Opened Aekyung Advanced Institute of Technology 2003. 04. ISO 9001 certification 2005. 05. ISO 14001 certification 2005. 09. Completed Cheongyang logistics center 2006. 02. Daejeon plant was designated as the Environmentally Friendly Company Ministry Award by Ministry of Knowledge Economy in the category of product of Green Management Grand Prize 2006. 07. “Complex compound bleach catalyst manufacturing technology”new technology (NEP) certification 2006. 10. Daejeon plant, Environmentally Friendly Company Voluntary Agreement for integrated reduction of greenhouse gases and air pollutants with Ministry of Environment 2006. 12. Voluntary agreement for green purchase with Ministry of Environment Prime Minister Award in Contribution in a Low-Carbon Green Growth 2007. 05. Completed Aekyung Design Center 2007. 07. Voluntary agreement for green partnership with 1st partner firms 2008. 05. Voluntary agreement to reduce packaging waste with Ministry of Environment 2008. 07. Voluntary agreement for green partnership with 2nd partner firms 2008. 10. “Complex compound bleach catalyst”new product (NeP) certification 2009. 04. Daejeon plant, re-designated as Environmentally Friendly Company 2009. 06. Voluntary agreement for green partnership with 3rd partner firms 2009. 07. Institution society agreement to reduce 10% of Korea CO2 through energy-saving practice of institution members and Daejeon Green Consumer Network 2009. 08. “D-amino acid oxidize (DAAO) Surfactant synthesis technology of softening-cleaning multifunction”New Technology (NET) certification 2009. 09. Spark mineral 8 products, E-mark certification 10 2013 AEKYUNG ENVIRONMENTAL REPORT 2009. 11. Antimicrobial Trio 7 products, E-mark certification 2009. 12. Spark 12 products, carbon labeling certification 2009. 12. Daejeon plant, Cheongyang plant agreed carbon emissions trading pilot project with Ministry of Environment 2010. 02. Voluntary agreement for carbon partnership with 1st partner firms 2010. 10. Trio grain dishwashing 6 products, carbon labeling certification 2010. 10. LiQ selected as“Green Product of the Year selected by consumers” 2010. 12. LiQ 12 products, carbon labeling certification 2010. 12. 2010 global green management“coping with climate change sector”grand prize 2011. 03. Voluntary agreement for carbon partnership with 2nd partner firms 2011. 05. Green card participant agreement 2011. 05. Korea logistics Grand Prize 2012 Low-Carbon Green Growth Expo 2011. 06. “LiQ”Good Packaging Minister’ s Award of Knowledge Economy 2011. 10. Esthaar, Sunsaem Bubble selected as“Green Product of the Year selected by consumers” 2011. 11. “Spark 3kg Carton”world’ s first low carbon certification 2011. 11. “Global management eco-friendly sector management sector” grand prize selected by Japan Management Association 2011. 12. Voluntary Agreement of Green Product Partnership Carbon partnership project performance reporting supported by Ministry of Knowledge Economy 2012. 06. “LiQ” , Ministry Award by Ministry of Knowledge Economy in the category of product of Green Management Grand Prize 2012. 10. Prime Minister Award in Contribution in a Low-Carbon Green Growth by Aekyung 2012. 10. Participated in Low-Carbon Green Growth Expo 2012. 11. Spark Mini, selected as“Green Product of the Year by Consumers” 2012. 11. Aekyung, selected as a company awarded“Green Product of the Year”3 years in a row 2012. 12. Large-Middle-Small Green Partnership, voluntary agreement of green product partnership 11 Main products Product Family Laundry powder detergent Names of products Spark (for general, for drum), Spark Mini (for general, for drum), Spark Classic, Perfect 1-Time Rinsing (for general, for drum), Perfect Indoor Antibacterial Dry Laundry liquid detergent LiQ 2-times concentrated gel (for general, for drum), LiQ thick gel (for general, for drum) LiQ 2-times concentrated gel fragrant capsule (for general, for drum) LiQ thick gel fragrant capsule (for general, for drum) LiQ spot partial detergent, LiQ spot portable stain remover Wool Shampoo, Wool Shampoo Fresh, Wool Shampoo Black & Color, Wool Shampoo Outdoor Dishwashing detergent Sunsaem Real Herb GreenTea, Sunsaem Real Remon & Engyme, Sunsaem One drop Ultra, Sunsaem Bubble Oliv, Sunsaem Bubble Berry Pink, Sunsaem fermented Oatmeal, Trio (antibacterial, power), Trio grain dishwashing, Trio antibacterial dishwashing phytoncide Fabric softener Irene (full sunshine garden aroma, downy cloud walking, rustling smell of wild flowers) Haircare products Kerasys (6 kinds of hair line, 3 kinds of scalp line, 20 kinds of salon care line, 9 kinds of Homme line, 6 kinds of perfume line, and 4 kinds of extra line) Esthaar (5 kinds of hair line, 6 kinds of scalp line, 3 kinds of Quasi drug) Hanaro (3 kinds of shampoo, 1 kind of spray) Dentalcare products 2080 toothpaste (Original Alpha Blue, Original Alpha Green, Original Alpha Red, Pro Max, Pro Clinic, Pro Mild, Impladent, Cheongeunchajin, Cheongeuncharyu, Cheongeuncha Ginkgo, Family Care, Freshup, New Shining White, Children’ s Toothpaste, Kids Toothpaste, Children's Plus Toothpaste, Mom’ s Heart Toothpaste, Active 40 Plus Gum Toothpaste, Active 40 Plus Sensitive Toothpaste, Tatar Toothpaste, Nature Holic Toothpaste) 2080 toothbrush (general toothbrush, children toothbrush, EURO XT toothbrush) 2080 mouthwash 2080 floss Bodycare products Blue chip soap, Vaseline Shower mate (6 kinds of general line, 5 kinds of Ice Cooling line, 4 kinds of True Nature line) Household products Home’ Z Quick clean cleaner (for kitchen, for multipurpose, for bathroom, for fungi, drain shot, toilet shot, Lax detergent Hanaro, Blue enzyme power, Sneaker Cleaner, bidet nozzle wash) Home’ Z insect repelling declaration (rice weevil, fragrant insect repelling) Home’ Z Airfresh (Crystal water, deodorizing power, Jellopot, auto spray, aerosol) Home’ Z dehumidifying power (for blanket dresser, for closet) Home’ Z deodorization coal (for refrigerator, for shoe shelf, for closet, for freezer, for vegetables) Cosmetics Luna Homeshopping (The Wish Foundation, Face Liner, Water Shower Base) Luna Boons (The Wish Foundation, Skin Natural BB, Skin Fitness Color Moisturizer, Edge Control Pact, Soft Rising Rose Powder, Face Liner, Volume Touch Blusher, Pire Cristal Powder, Tint & Gloss, Lip Glow, Glam Up Lipstick, Satin Color Eyes, Pore Tightening Shu and etc.) Age Twenties (Nutriv Oxygen Pack Base, Luxury Foundation, Melting Concealer, Balancing Water) Point (Deep clean, One step, Green Eco, Young leaf green tea Jin, Rice Su, suncream) A solution (1318 Skin Solution, Junior Trouble Line, Adult Trouble Line, Oil control line, White control line, Mini line) Real Face Ace Series New Point line (including Green Tea Cleansing Cream) 2013 AEKYUNG ENVIRONMENTAL REPORT 12 LiQ Spot : Gel Stick Partial Detergent, Portable Spot Remover •It is a supplementary product exclusively for stubborn stains and stain. 2013 AEKYUNG ENVIRONMENTAL REPORT •Gel stick partial detergent: It is a gel type detergent which can be used before washing to effectively remove diverse stains and stubborn stains. As this detergent uses a rubber brush, damage on clothing can be protected; a transparent tube type container is good for users to use. •Portable Spot Remover: It is a portable stain remover and supplementary detergent as well. As an absorption sheet is used, pollutants are effectively removed. Perfect 1-Time Rinsing •1-Time laundry detergent for the first time in Korea •The first acquisition of officially-recognized certification mark (Certification name: 1-Time Rinsing, Certified organization: Korea Apparel Testing and Research Institute) •Thanks to a patented ingredient (Dr. Aquarider), 1-time rinsing makes bubbles and remaining detergent removed. •New concept of laundry detergent saving water / energy / time •Completed skin hypo-allergenic tests Kerasys Perfume Shampoo / Hair Conditioner •It is a perfume shampoo as if perfume is applied to hair just using shampoo. •It feels like using different perfume every morning. •There is a Lovely & Romantic perfume like a shy girl’ s first love •Elegant &Sensual perfume like high-class and modern women •Pure & Charming perfume like fresh morning’ s dew •Balancing of illustration of Yellena James and 3 different perfumes 2080 Active 40 Plus Gum Toothpaste •It is toothpaste for gum disease in 40’ s. •Sodium chloride and tocopherol acetate’ s prevention against gum disease •It prevents gum diseases through gum treatment and blood circulation. •It contains extracts from Chungweesan that was used for gastric fever toothache in eastern medicinal manual. 13 Sunsaem Bubble Berry Pink •It contains natural anti-bacterial ingredients so that germs in dishes and scouring pad can be clearly removed. •It is very safe because 100% vegetable ingredients and FDAapproved ingredient for detergent are contained. •It is an eco-friendly detergent to minimize water pollutions thanks to biodegradability of more than 99% •It is easy to use because bubbles are generated from the first use, and safe to rinse. •Chemical-free products: No addition of preservative, pigment, and phosphate Real Face A’ S Vitality Red Capsule Cream •It enjoys two functions as water cream and face oil in one bottle. It is a new-concept of capsule cosmetics. •It contains red food complex that give skin vitality and vigor. •It is very effective for people with complicate skin! It is an all-in-all multi cream. •It is effective for a wrinkle improvement. Main product for overseas export Product Name Export Country Sales in 2012 (Unit: Million KRW) 2080 Toothpaste 8,305 Kerasys 8,781 Features It is becoming a universal toothpaste thanks to accumulated knows and campaign for tooth health. 1. CMC Repair Technology Kerasys Soup Trio China, Iran, Russia, Paraguay, Myanmar, Vietnam and other 20 countries 2. Hair care effects of liposome specified by each variant 1. Rich bubble and fragrance can be lasted longer than before. 2,780 2. It is a transparent soup type containing moisturizing ingredients so it leaves soft and smooth textures after use. 1. It is a product acquiring antibacterial mark thanks to antibacterial activity of more than 90%. 852 2. It has strong cleaning power even in cooling water and powerful rinsing ability compared to the existing products. 3. It shows excellent economical efficiency so that it can be used in an easy and relieved manner thanks to eco-friendly and no stimulus. 2013 AEKYUNG ENVIRONMENTAL REPORT 14 Product Name Export Country Sales in 2012 2013 AEKYUNG ENVIRONMENTAL REPORT Korea’ s no. 1 laundry detergent brand of Spark was developed to have strong cleaning power even if small amount of detergent is used in cool water based on eco-friendly technologies in order to protect families’health; and also it was designed to minimize environmental pollutions. 674 Spark Wool Shampoo Features (Unit: Million KRW) China, Iran, Russia, Paraguay, Myanmar, Vietnam and other 20 countries 1. It is Korea’ s no. 1 neutral detergent acquiring Wool Mark for the first time in Korea. 2. Ingredient of‘Natural Sage’is added because it has a function of deodorization. 476 3. Natural wool extracts and low-stimulus detergent ingredients are used. (expensive clothing can be protected) Esthaar 1. It contains 12 kinds of minerals and nutrients that were extracted from organic herbs and sprouts. China, Singapore, Thailand 442 2. It was certified as natural wellbeing mark of LOHAS for the first time in Korea. Sales 2000 (Unit: Million won) 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 249,603 254,731 270,191 261,426 274,351 278,408 272,215 296,688 323,847 338,259 345,593 349,368 342,162 • 137% growth compared to 2000 • Aekyung settles smart green management so that customers can naturally join eco-friendly activities. • Developing products with a high customer satisfaction and selling at reasonable price from the consumer perspective. Number of employees (Unit: People) 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 1,219 1,142 1,033 910 879 806 659 685 689 625 624 607 593 • 51% decrease compared to 2000 • Developing continuous innovative activities • Expanding automated production base • Seeking measures for increase in work efficiency • Improving the capacity and capability of professional employees 15 2013 AEKYUNG ENVIRONMENTAL REPORT AEKYUNG Aekyung is practicing measures for a low-carbon green growth through management system and production process optimized for the environment GREEN MANAGEMENT OF AEKYUNG •Green management policy •Smart Green Management •Green management system •Green management education •Green-management examination •Coping with environmental accidents 18 2013 AEKYUNG ENVIRONMENTAL REPORT Green management policy Vision of Aekyung “Life : stylist increasing the value of customer’ s life” - We make a constant effort for prosperous and happy life of customers. Core values of Aekyung “Cleanness” : “Faith” , “Innovation” , - We are always trying to be a model with clean and reliable products and services Green management policy By understand the basic mind of our green management system and knowing the procedure well and thoroughly observing it, we impress customers and local residents in terms of green management improvement and try hard as follows to make green management-friendly company in achieving management goal based on management philosophy of our company. 1. We comply with green management related laws, regulations and other requirements. 2. We reduce environmental pollutants and greenhouse gas emission through efficient energy use and resource saving. 3. We contribute to environmental conservation and community by maintaining win-win relation with customers and partner firms through regular evaluation and green management goal setting. 4. We guarantee transparency by managing our green management system by documenting it and disclosing green management policy and results. 5. We do our best for continuous green improvement by minimizing environmental hazardous substances use and greenhouse gases. 6. We foster environmental preservation awareness by providing the educational opportunity to all executives and staff members and related partner firms and actively participate in environmental preservation activities that communities are pursuing. Based on core values, Aekyung established operating policies such as building environmentally-friendly operation system, improving environmentally-friendly mind of employees, inducing eco-friendly company awareness of customers etc. “To provide‘1st class products’giving our customers confidence and satisfaction, we are carrying out the correct quality system.” By complying with their rights and responsibilities, all executives and employees of Aekyung should set priority policies, management items, goals according to the company management policy for customer satisfaction management and carry out them and are doing our best to improve and develop the activities of each part by periodically identifying them. Building eco-friendly operation system Green Management Inducing customers’ perception on eco-friendly Company Improving eco-friendly mind of employees Life stylist raising the value of customer’ s life 19 Smart Green Management 2013 AEKYUNG ENVIRONMENTAL REPORT More convenient more enjoyable and natural eco-friendly activities participation Satisfying environmentallyfriendly needs of customers Smart Green Management Providing eco-friendly product and services Eco-friendly activities of the entire company On May 13, 2010, Go Gwanghyeon, CEO of Aekyung Industrial declared a‘Smart Green Management’ providing a comfortable home life and easy to use eco-friendly detergents. He established the philosophy of a smart green management as a“smart eco-friendly management which can naturally practice eco-friendly activities by providing products and services that consumers can enjoy more happily and more conveniently” . As an example of realizing the smart green management,‘LiQ (LiQ)’exercises superior cleaning ability with only half of existing liquid detergent and we are providing products which are easy to use by improving inconveniences in use and supplying eco-friendly products with the effect of significantly reducing energy consumption of disposal process, use and production process of products. Reborn as an eco-friendly company through a‘smart green management’in all sectors such as production, marketing, logistics, research, management, environment and safety etc., Aekyung Industrial will continuously provide customers with green products satisfying eco-friendly needs of customers. 20 2013 AEKYUNG ENVIRONMENTAL REPORT “Aekyung’ s products, 11 low carbon labeling certification … the highest in Korea” Aekyung has continuously carried out eco-friendly activities; for example, change from hard detergents to soft detergents, in order to decrease water pollution since the inception of its foundation. In 2010, Aekyung declared a‘Smart Green Management’through which the quality of life of customers can increase, especially through the supply of easy-to-use and ecoAekyung Vice President Cho In-Sik - Interview friendly living products. By doing so, an award from Prime Minister is given this year. Vice President Cho In-sick, who is in charge of controlling development, research and manufacturing of eco-friendly products for the sake of the Smart Green Management, said“As demand for eco-friendly activities in consumers’daily lives grows, Aekyung was trying to playing the leading role of green management in terms of preparing the future." What kinds of activities have been doing after declaration of Smart Green Management? "By introducing a low carbon product development process, we are manufacturing eco-friendly products through whole process from design, production, distribution, consumption to withdrawal. In order to let consumers know Aekyung’ s eco-friendly products, diverse certification acquiring process is being done, for example, environmental labeling, carbon labeling, ROHAS certification, and Green Product of the Year." What is the reason to focus on development of low carbon certification products? "A low-carbon green growth is a main agenda for a sustainable management. Aekyung acquired the low carbon labeling certification (Spark 3kg Carton) for the first time in the world, and as of November 2012, Aekyung holds as many as 11 low carbon labeling certification, which is the highest in Korea." What is the representing an eco-friendly product? "LiQ is an eco-friendly detergent that shows outstanding detergent power even if half amount is used compared with the existing ones. Research team worked so hard to make prototypes, for example, they broke a mixer. So they had to fix it by themselves. In addition, super-concentrated detergent of Spark Mini, Sunsaem Bubble which is the first bubble-type kitchen detergent and other products has been released." What are the future plans? "We are trying to make great efforts to develop eco-friendly products in cooperation with approximately 20 partners, for example, by pursuing Green Product Partnership Project." < Chosun Iibo Co., Ltd. December 19, 2012 > 21 Green management system •By acquiring the quality management system (ISO 9001) certification in 1997 and environmental management system (ISO 14001) certification in 2005, we established the foundation of the integrated management system. •In 2006, Daejeon plant was designated as a green company (former Environmentally-Friendly Company) and redesignated in 2009. •By organizing the environmentally-friendly management Committee under the direct control of CEO in 2009, we are enhancing environmental management activities centering on environmentally-friendly management office. CEO Marketing / PR ▷▶ Eco-Friendly Management Committee Design center ▷▶ Eco-Friendly Management Office Management support / Management Institute / Production / Supply chain management (SCM) •In 2011, due to the green management system certification (GMS) of Korea accreditation board, all regulations of the company were made as the green management system so we are fulfilling the visible result of the Smart Green Management and a low-carbon green growth in earnest. Manager commitment Initial green management review Green management policy Management review Checking and corrective action ・Monitoring and measurement ・Nonconformity, corrective and preventive actions ・Recording ・Green management system examination Implementation and Operation ・Structure and responsibility ・Training, awareness and competence ・Communication ・Green management system documentation ・Document management ・Operation management ・Emergency preparedness and response [Green management process flow chart] Plan ・Green management aspect regulations and other requirements ・Purpose and detailed purpose ・Green management promoting plan 2013 AEKYUNG ENVIRONMENTAL REPORT 22 Customer requirements ▼ 2013 AEKYUNG ENVIRONMENTAL REPORT KS I ISO 14001 : 2009 Green management system common requirements •Resources energy management •Greenhouse gas management •Responsible management Green management system performance indicator •Management performance indicator •Operation performance indicator ▼ Green management system certification [Green Management Model] Green management system certificate ISO 14001 certificate ISO 9001 certificate Designation of eco-friendly company Green management education To efficiently operate an environmental management in the sites where executives and employees and partner firms of Aekyung are working, we are developing and operating various education programs. We obtain information about the latest various rules and regulations and provide them and are promoting Environmental Management Education for them to perform eco-friendly activities beyond complying with rules and regulations. By developing education programs by position and duty, we conduct environmental education. Focusing on strategies needed for the environmental management and critical decision-making of the company, we conduct 1 or 2 times of executive education per year. The education contents cover domestic and international environmental management trends, sustainable management trends, strategies on climate change response etc. We also conduct education for win-win cooperation with the executives of Aekyung to the executives of partner firms. Executive Education We conduct education to cultivate experts targeting environmental management practitioners of Aekyung and partner firms. 23 We carry out education such as whole process evaluation, environmental performance evaluation, clean production, green purchasing, environmental report, REACH, ISO 14001 system, greenhouse gas inventory etc. 2013 AEKYUNG ENVIRONMENTAL REPORT In particular, by educating green management system contents with respect to green up program, we conduct education to improve capacity which can connect the activities of all sectors such as management, production, research, etc. with environmentally friendly green growth. Professional Education Green Management Education Green-management examination Green-management examination is to examine if the green management system of an organization is operating efficiently and the activities checking and improving relevance and validity are conducted through environmental examination and from 2012, examination will be carried out by being integrated into the green management examination. Under the supervision of ISO secretariat, Aekyung conducts internal examinations twice a year and identifies if the green management system operated in each workplace is efficiently operated by cultivating internal examiners by each department. We examine specific details and effects on improvement through a 3rd party examination and identify the result of internal examinations through management reviews. Also, through W/S, we identify and improve improvements occurring while implementing the green management system. For green management system of Aekyung, the system’ s operating status is verified through a 3rd party examination and identified improvements are supplemented by establishing improvement plans in a short-term, mid-long term perspectives and complementary points are checked in the next internal examination. Classification Internal examination External examination Head office Institute Daejeon plant Cheongyang plant March 3, 2012 March 16, 2012 March 16. 2012 March 15, 2012 November 29, 2012 November 30, 2012 November 2012.11.30 November 29, 2012 February 15, 2012 February 17, 2012 February 17, 2012 February 16, 2012 October 29, 2010 October 31, 2012 October 31, 2012 October 30, 2012 [2012 Examination Schedule] 24 2013 AEKYUNG ENVIRONMENTAL REPORT Review when the next internal audit Improvement of matter of concerns Establishment of internal and external audit plan Review process of Green Management System of Aekyung External audit Internal audit Improvement of matter of concerns Identification of matters to be improved through W/S [Green management system checking process of Aekyung] Coping with environmental accidents Aekyung places top priority on safety and health of executives and employees. In case of environmental accidents such as a harmful chemical emission, fire accidents in the workplace etc., we conduct training for environmental accidents every year. We increase accident prevention awareness by identifying various accident cases and sharing them with executives and staff. Also, by forming the organization coping with environmental accidents, we established the system dealing with environmental accidents quickly. Aekyung is improving continuously by holding Industrial Safety and Health Committee of Labor and Management every year and discussing the matters required for safety and health of workers and executives and employees maintain healthy body through regular check-ups. We measure noise and hazardous substances etc. every year to identify harmful elements that may occur in the workplace and conduct special checkups for employees working in the workplace and no problem has risen so far. Material for safety and health education Education to cope with environmental accidents 25 2013 AEKYUNG ENVIRONMENTAL REPORT Fire drills CEO: General chairperson Headquarters Research Center Factory in Daejeon Factory in Chungyang Response Director: Factory Director Guem River Basin Environmental Office City Hall of Daejeon Dongbu Fire Station/ Cheongyang Fire Station Daejeon 3 & 4 Management Corporation Chief Manager of Control Team: Team Manager of Production Support Team Command Center: Production Support Team Notification Team ・Staff Mobilization ・Maintenance of Order at Work Response Team ・Activities for Prevention of Extermination ・Emergency Relief, Rescue ・Relief Activities Personnel Recovery / Evacuation Team Post Treatment / Recovery Team ・Medical Relief Work ・Evacuation Measures ・Identification of Expected Casualty ・Identification of Rescue Statue ・Support of Equipment for Rescue/Recovery ・Prevention against Secondary Damage ・Damage Restoration [Environmental Incident Response Organization Chart] AEKYUNG Aekyung declared Smart Green management and we practiced constantly concrete activities for sustainable growth through Smart Green management. ENVIRONMENTALLYFRIENDLY ACTIVITIES OF AEKYUNG •Research & development and environment •Design and environment •Coping with climate change •Green purchasing •Environmentally-friendly supply chain management •Compliance •Chemicals substance management •Production and environment •Minimization of resource use •Improvement of environmental impact •Environmentally-friendly logistics •Spark Mini, Green Product of the Year selected by Consumers •Participated in Low-Carbon Green Growth Expo 28 2013 AEKYUNG ENVIRONMENTAL REPORT Research & development and environment In producing products such as a laundry powder detergent, a laundry liquid detergent, a kitchen detergent, a softener, hair goods, oral goods, body goods, household goods, cosmetics etc., Aekyung is making a lot of efforts to develop more environmentally-friendly products using natural ingredients. Process for carbon reduction product development Aekyung should produce and sell low carbon products to realize a low-carbon green growth. To realize it, the process of designing all products of Aekyung is planned for manufacturing through a“Low Carbon Product Development Process” . By planning and producing products in the process as shown below and attaching carbon labels ultimately, we provide accurate information so that consumers can reduce greenhouse gas emissions. Product Design Verification Planning Low Carbon Certification Validity Check Verification and Checking Validity Completion of Design Development of Carbon Emissions Reduction Process Carbon Emissions Reduction Design Carbon Label Certification Employees and staff who are actively participating in management activities of Aekyung propose ideas to reduce greenhouse gases by each step and are conducting the activities to realize them. Also, by cultivating experts on estimation of greenhouse gases, we established the internal system for them to have the ability to realize a smart green management. We are faithfully performing the role as a good company establishing the foundation for the development of eco-friendly products by realizing a low-carbon product development process and conveying information on quality, environment, safety and health honestly and forthrightly. Due to the result of these efforts, we are trying to lay the foundation for continuous growth in the future by continuously developing 1 class products gaining the competitiveness in the world market. Eco-friendly certification requirement of products Today, more and more consumers and distributors are demanding green products. To meet these needs and furthermore, supply high-quality environmentally-friendly products to consumers, Aekyung is releasing eco-friendly products as a result of continuous research and development. With 5 products in 2007, the number of products is continuously increasing 13 products in 2008, 52 products in 2009, 87 products in 2010, 123 products in 2011, and 126 products in 2012. In particular, we released products with environmental certification such as HS mark, wellbeing mark, Lohas certification etc. before 2009 and acquired the E-mark certification for 15 products such as Spark Mineral and Trio etc. and carbon labeling certification of 12 items such as Spark in 2009 and acquired detergent sector carbon labeling certification for Super Clean White etc., the product exported to Japan for the first time in Korea and Japan and acquired the carbon labeling certification for a total of 30 kinds such as Trio Grain Dish-Washing and LiQ etc. in 2010 and also, in 2011, Aekyung became a company holding the most carbon labeling certification products in Korea, a total of 35 and acquiring the world’ s first low carbon labeling certification (Spark 3kg Carton) made Aekyung a company having as many as 11 certified products with low-carbon label. Therefore, it allowed Aekyung to utilize the opportunity to spread the environmentally-friendly activities of Aekyung to the outside. Also, in the future, Aekyung will take the lead in supplying environmentally-friendly products to customers. [Status of environmentally friendly certified product items] 29 2013 AEKYUNG ENVIRONMENTAL REPORT 30 Carbon labeling certified products (35 kinds in total): 12 kinds of LiQ, 12 kinds of Spark, 6 kinds of grain dish-washing, 5 kinds of Sunsaem Oatmeal 2013 AEKYUNG ENVIRONMENTAL REPORT Lohas certified products (20 kinds in total): 17 kinds of Esthaar, 3 kinds of Irene Eco-label certified products (44 kinds in total): 4 kinds of Spark Mini, 11 kinds of Trio, 26 kinds of Sunsaem, 1 kind of Bravo, and 2 kinds of High Living Carbon footprint certified product (1 kind in total): Super Clean White Wool Mark (10 kinds in total): Low Carbon Certification (11 kinds in total): 9 kinds including 1,000ml of wool shampoo 10 kinds including Spark 3kg Carton 31 Design and environment The slogan of 2012 Aekyung design center is a“Smart Design”and claims to support Smart Green Products which are attractive and beneficial for the environment by saving energy and resources as the design strategy and to make a design changing the paradigm constantly fixed since the establishment of the independent design center in the field of household items for the first time in 2007, we are constantly making an effort to make a design meeting even the hidden demands of customers at point of sale, point of use, time after use which is the whole process of lifecycle of a product. Change of symbol for low carbon certification on 11‘Spark’ Acquiring low carbon certification through continuous carbon reduction activities in product manufacturing process As 11‘Spark’products’low carbon certifications are acquired in 2012, package design’s symbol representing low carbon labeling certification has changed so as to enhance eco-friendly image from consumers’perspective. Automatic donation campaign of eco-friendly fund (Spark / LiQ / Sunsaem) Aekyung conducts campaign on automatic donation of eco-friendly fund in recognition of acquiring low carbon certification for the first time in the world. The campaign is designed to automatically donate 500 KRW when Aekyung’ s products are purchased. Against this background, Aekyung Design Center designed the campaign’ s concept based on a model of polar bears in line with connection of survival crisis of polar bears in accordance with climate change. As such, customerfriendly design and eco-friendly fund donation came up with by going beyond the existing concept. 2013 AEKYUNG ENVIRONMENTAL REPORT 32 2013 AEKYUNG ENVIRONMENTAL REPORT Coping with climate change Carbon labeling certification of product carbon labeling certification currently conducted by the Ministry of Environment is the certification system with the purpose to spread the market-driven low carbon consumption culture by marking greenhouse gas emissions emitted throughout the whole process, raw materials and production, transportation, distribution, use, disuse of products Aekyung has applied the whole process evaluation which is the environmental impact assessment technique, the guideline of carbon labeling certification to laundry powder detergent, kitchen detergent, shampoo, toothpaste etc. since 1998. And in 2010, Aekyung obtained carbon labeling certifications for 30 products such as 12 kinds of LiQ, 6 kinds of Trio Grain Dish-Washing etc. and in 2011, became the company holding the most certifications in Korea, a total of 35 certifications as of 2012 including 5 kinds of Sunsaem oatmeal. Low carbon product certification 1) World’ s first“Spark 3kg Carton”low carbon labeling certification In 2011, Aekyung obtained a low carbon labeling certification of“Spark 3kg Carton”for the first time in the world. The certification is the only one when it comes to the category of living and household applies, and at the same time it was the first certification in the world, which served as an opportunity for Aekyung to promote its eco-friendly products responding to climate change. 2) The highest number of low carbon labeling certifications Aekyung acquired low carbon certifications for all Spark products in 2012. Therefore, Aekyung was able to be the one holding the highest number of certifications for 11 products. (As of January 2013) Aekyung has continuously made commitment to reducing carbon emission quantity to develop eco-friendly products in order to respond to climate change. *As of December 2012, Source Korea environmental industry & Technology institue Category Manufacturer Certified Products No. of Certification 1 Aekyung Industrial Co., Ltd. Powder detergent 11 2 Korea Water Resources Corporation Filtration Plant 10 3 LG Electronics Inc. Air conditioner, Purifier and etc. 9 4 Samsung Electronics Co., Ltd. Outdoor units for cooling and heating equipment, RAM and etc. 7 Green purchasing Aekyung has participated in voluntary agreement for Green Purchasing of Ministry of Environment since 2006. Since Green Purchasing promotes development and production of environmentally-friendly products through green consumption, Aekyung conducts the purchase of environmentally-friendly products for environmentally-friendly raw materials, subsidiary materials, and other items by developing green purchasing guide Performance Report of Green Purchasing in 2012 Through regular assessment, frequent assessment on the major partner firms supplying raw materials, subsidiary materials, the purchasing information system of Aekyung induces continuous production of green products. When assessing, by giving extra points to companies that obtained the ISO 14001 certification among partners, we are motivating for them to establish and realize the importance of Environmental Management System. Since the guide for Green Purchasing reflects a systematic hazardous chemical management, we are operating the system to reduce hazardous substances flowing into products. Also, by building environment mark, recycling mark products through co-work with MRO companies, we are planning to expand the Green Purchasing continuously. Evaluation System of Supplies 33 2013 AEKYUNG ENVIRONMENTAL REPORT 34 2013 AEKYUNG ENVIRONMENTAL REPORT Environmentally friendly supply chain management To supply eco-friendly products to consumers, Aekyung should supply eco-friendly raw materials, subsidiary materials and packing materials from partner firms. Partnership operation for dissemination of green management Aekyung transferred environmental management techniques to 30 partners from 2007 to 2009, and successfully conducted Green Partnership Project to support manufacturing eco-friendly products. In addition, from 2009 to 2011, Aekyung established green management system to 20 partners, and Carbon Partnership Project to check process of energy/greenhouse gases. Thanks to such projects, Aekyung was able to strengthen mutual cooperation system of green growth with partners. Also, in 2012, Aekyung promoted Partnership Project of Green Products, and is now establishing design process of green products in each partner. Agreement of Green Partnership Performance Report Meeting of Carbon Partnership Voluntary agreement of Green Product Partnership Based on performance acquired through a Green Carbon Partnership Project, Aekyung decided to develop green products. To do that, Aekyung conducted a Large-Middle-Small Green Partnership Project controlled by Korea Institute of Industrial Technology on October, 2012 so that Aekyung carries out a“Green Product Partnership Project” . The Green Product Partnership Project aims to apply green product-manufacturing process to all procedures from development of raw materials, manufacturing to delivery in cooperation with 11 partners for the next 2 years. Agreement of Green Product Partnership Activating green and eco-friendly education of partners Through a better communication among all departments of Aekyung and representatives of partners and people in charge, we examine various domestic and international laws and regulations, environmental trends; and we are participating in various certifications and education. We shared know-how with other companies and production status of partners by directly visiting partners once a month and conducted external education on eco-friendly certification and guidelines such as KS certification, carbon labeling certification etc. by inviting professional lectures. Training on Green Management Operation of TFT consultative group for quality and delivery TFT is being operated in cooperation with Quality・Manufacturing Departments of Aekyung and main suppliers of subsidiary materials (Once a month). Through the TFT, process loss that could happen on the ground due to material inconsistent, and claims from consumers can be fixed in advance. In addition, Aekyung is trying to solve problems with delivery due to‘small quantity batch production’ 35 2013 AEKYUNG ENVIRONMENTAL REPORT 36 2013 AEKYUNG ENVIRONMENTAL REPORT Compliance Compliance with environmental law of aekyung As declared in the environmental policy, Aekyung considers complying with regulations and other requirements as top priority. By classifying into products and workplace related laws and regulations, Aekyung is responding to the practice of law. Regulations on Aekyung and products include quality management and industrial products safety management act, pharmaceutical affairs law, Cosmetic Act, harmful chemical substance management law, High Pressure Gas Safety Act, Public Health Law, Act on resources saving and Promotion of recycling, Japanese Industrial Standards etc. and workplace related regulations include air environmental protection Law, Law for the Preservation of Water Quality, Waste Management Act, occupation safety and health acts, offensive odor control Law, noise vibration abatement regulation, Fire Services Act, soil environmental protection Law etc. Also, for voluntary practice, by signing voluntary agreement for green purchasing, environmentally-friendly company designation system, voluntary agreement for greenhouse gas and air pollutants reduction, voluntary agreement for packing wastes reduction, carbon emissions trading pilot project agreement, we are making efforts such as improvement of products and processes etc. to practice them. Also, we are constantly trying to practice international conventions such as Climatic Change Convention, Vienna Convention for the Protection of the Ozone Layer, Basel accord, Convention on Biological Diversity, London Convention etc. Until now, Aekyung has identified various regulations from time to time and monitored compliance but there was no non-compliance case. ・Development of and Support for Environmental Technology Act ・Quality Management and Safety Control of Industrial Products Act ・Pharmaceutical Affairs Act ・Cosmetic Act ・Public Health Act ・Act on the Promotion of Saving and Recycling of Resources ・Development of and Support for Environmental Technology Act ・High-Pressure Gas Safety Control Act ・Toxic Chemicals Control Act ・Japanese Industrial Standards ・Industrial Standardization Act ・Convention on Climate Change ・Kyoto Protocol ・Viena Convention for the Protection of the Ozone Layer ・Montreal Protocol ・Basel Accord ・Convention on Biological Diversity ・London Convention ・Basic Act on Low Carbon Green Growth ・Nagoya Certificate Laws and Regulations ・Voluntary Convention on Green Purchasing ・Designation of Environmentallyfriendly Companies ・Voluntary Convention on Saving Greenhouse Gases and Air Pollutants ・Voluntary Convention on Reducing Package Waste ・Convention on Pilot Project of Carbon Emission Trading ・Clean Air Conservation Act ・Water Quality and Ecosystem Conservation Act ・Occupation Safety and Health Act ・Wastes Control Act ・Malodor Prevention Act ・Noise and Vibration Control Act ・Framework Act on Fire Services ・Soil Environment Conservation Act Implementation of voluntary inspection activities by pharmacists For the purpose of voluntary compliance with the pharmaceutical affairs law and cosmetics act, pharmacists for manufacturing management, managers for manufacturing and sales, and chief managers in production and quality are gathered together to check the plant, documents and review enactment and revision of laws on a monthly basis. As a result of such activities, no administrative measures from Korean Food and Drugs Administration had received in 2012. Chemical substance management Management of harmful chemical substances When it comes to harmful chemical substances, the amount that we use has continuously decreased since 2000. However, as output of dishwashing detergents and liquids has steadily increased since 2010, the use of caustic soda which neutralizes surfactant, their main ingredient has doubled, which in turn, the chemical’ s consumption has been increased accordingly. Aekyung will make effort to minimize the use of chemical substances by systematically controlling harmful chemical materials that we have been used. [Harmful Chemical Substances] In the workplace, we control chemical substances by dividing it as‘For Use’and‘For Transport’ . In particular, in order to prevent leakage of chemical materials that are generating in the process of transportation, regular training is being conducted. MSDS* Management Aekyung is providing MSDS providing environment・safety・health information on raw and subsidiary materials and products that it is handling to customers. MSDS on raw and subsidiary materials obtained from the relevant agencies or partner firms is transferred to relevant departments and used as data when handling chemicals. If data is insufficient, the person in charge of research and development provides the data by supplementing it. MSDS of products are constantly complemented by securing test materials. * MSDS (Material Safety Data Sheets): Data made by an employer manufacturing・importing・ using・carrying or storing chemical substances based on hazard assessment result on the substance 37 2013 AEKYUNG ENVIRONMENTAL REPORT 38 2013 AEKYUNG ENVIRONMENTAL REPORT Production and environment With continuous improvement activities such as TPM, quality control circle, 5S etc., Aekyung is trying to reduce the amount used of power, fuel, water etc. and the amount of discharge of air pollutants, wastewater generation amount, waste etc. Wastewater reduction through improvement in Cheongyang Plant As production of the items produced in Cheongyang plant was changed into small quantity batch production, the number of replacement also increased so that wastewater is increasing. By organizing TFT in the plant and reducing wastewater through improvement, we complied with the legal standard. Improvement items - Reduction in wastewater thanks to improvement of CIP process for liquid manufacturing - Reduction in loss amount thanks to improvement of facilities of transportation lines for semi-products in liquid manufacturing - Reduction in wastewater thanks to improvement of CIP process for toothpaste 4 lines - Reduction in replacement time of newly-renewal toothpaste - Reduction in manufacturing time thanks to improvement of cosmetics cooling system - Improvement of productivity thanks to enhancement of shampoo CIP techniques Improvement of Toothpaste Transfer Line Improvement of Closing Structure of Toothpaste Hopper Minimization of resource use 39 2013 AEKYUNG ENVIRONMENTAL REPORT Energy usage Compared to 2000, total electric power usage increased slightly but fuel usage based on 1 ton of product was reduced by 30.5% In particular, in terms of fuel usage based on 1 ton of product, Cheongyang plant did not B-C oil anymore in using a boiler, and bought steam from AK Chemtech since 2011. As a result, as fuel usage was decreased by 100% compared to 2000, we do not need to use fuel energy. In the future, after establishing the energy reduction plan through energy diagnosis, we will conduct activities to reduce energy. [Power Consumption] [Fuel Consumption] Water usage Aekyung uses purified water for production, water supplied to produce steam, washing water to wash facilities. Since 2008, the amount of water has increased because of the increase of the number of facility washing due to the small quantity batch production system in order to meet the needs of customers. By improving facility-cleaning techniques based on ever-increasing water usage, water usage compared with increase in productivity in 2012. Due to the reduction by recycling of washing water used to wash facilities in each process, water usage per 1 ton of product was reduced by 20% compared to 2000. [Water Usage] 40 2013 AEKYUNG ENVIRONMENTAL REPORT Improvement of environmental impact Minimizing air pollution Due to reduction of pollutant emissions through replacement of worn-out Bag filter etc. and automatic filling of powder, air pollutant emissions has been steadily reduced compared to 2000 and in particular, since 2011, Cheongyang plant has been supplied with steam and used it from AK Chemtech, an affiliate and air pollutant emissions have been greatly reduced due to resulting boiler shutdown. Also, in 2012, continuous use of steam has significantly reduced emissions of air pollutants. B-C oil usage, boiler uptime and emissions of greenhouse gases have been reduced accordingly. In particular, emissions of air pollutants were dramatically reduced by 99% compared to 2000 based on 1 ton product. [Air emissions] Minimizing water pollution Daejeon plant is using the wastewater treatment plant jointly operating with AK Chemtech and Cheongyang plant is discharging wastewater generated from the workplace into agricultural industrial complex joint wastewater treatment plant. Based on 1 ton of product, the amount of wastewater increased by 60% compared to 2000. This is because in addition to increase of the number of washing times due to the small quantity batch production system, the output of liquid laundry detergent and kitchen detergent increased by about 120% compared to last year. By improving current small quantity batch production and optimizing the production process, we are establishing wastewater reduction measures. [Quantity of Wastewater] 41 Greenhouse gas emissions Through the greenhouse gas emission trading pilot project conducted by Korea Environment Corporation, Aekyung Industrial has checked greenhouse gas emissions of Daejeon plant and Cheongyang plant through professional organizations every year since 2005. Due to an increase in product yield, greenhouse gas emissions increase every year but are maintained constantly based on 1 ton of product. Aekyung Industrial is working to reduce greenhouse gas emissions through various reduction activities. [Greenhouse Gas Emissions] Waste minimization The workplace is promoting activities to reduce waste generation through improvement of production process, improvement of facilities, separate waste collection, staff training etc. As a result of performing these various reduction activities, waste generation based on 1 ton of product was reduced by 57% compared to 2000. [Waste Material] Soil contaminants In the process of keeping fuel and raw and subsidiary materials, contaminants may flow in soil due to leak or rainwater and cause soil contamination. Through thorough management of facilities for storing oil and prevention of raw and subsidiary materials leak, even one case of soil contamination did not occur. Daejeon plant has no matters corresponding to the law and Cheongyang plant managed them until 2002 but there are no causing factors after 2003. *After 2003, there are no factors causing soil contamination. Inspection location Tank Pipe Surrounding Item B.T.X.E (benzene, toluene, xylene, ethylbenzene) 2000 2002 Suitable (not detected) Suitable (not detected) Suitable (not detected) Suitable (not detected) Suitable (not detected) Suitable (not detected) [Soil contaminants analysis table of Cheongyang plant] 2013 AEKYUNG ENVIRONMENTAL REPORT 42 2013 AEKYUNG ENVIRONMENTAL REPORT Environmentally friendly logistics Establishment of eco-friendly logistics network Focusing on Cheongyang plant and Daejeon plant, Aekyung is operating Yangji (Jumunjin) logistics center, Cheongwon center, and Gimhae center as DC (Distribution Center); and Daegu and Gwangju areas as No Inventory System (TC: Transfer Center). Most products are delivered from plants to Cheongwon and then delivered to Yangji in Metropolitan region, Gimhae / Daegu to Gyeongsangdo region, Gwangju to Chollado region and Jumunjin through Yangji in Gangwondo region. In order to pursue eco-friendly logistics system, for the past 10 years, Aekyung has continuously promoting initiatives such as inventory integration, rationalization of distribution system through integration / rearrangement of logistics centers, and improvement of logistics system / process. By doing so, eco-friendly activities such as fuel savings, air pollutant emission reduction, waste reduction etc. are being promoted. Implementation of joint logistics delivery system Aekyung is now operating joint logistics delivery system after establishment of collaboration relationship with discount chains on the basis of experiences and challenging spirit through cooperation for logistics delivery with Loex (former Resko) and Beautiful Cosmetics companies. Aekyung entered into leading logistics service agreement of the SCM Win-Win strategy with Lotte Mart (August), Home Plus (January) in 2011; Nonghyup in Pyeongtaek in 2012. Aekyung is implementing ecofriendly logistics activities improving delivery service, timely delivery additionally and 400 million won of cost saving annually such as reduction in fuel consumption by vehicle operation efficiency according to joint delivery. Diverse eco-friendly green logistics activities of Aekyung Aekyung is joining the Eco Drive campaign, which is eco-friendly driving habit increasing fuel efficiency and conducting continuous education to reduce air pollutants and improve fuel efficiency by attaching fuel reduction device. Also, we are conducting standardization of fieldwork through 5S activities such as office / warehouse etc. to improve the environment and manage distinct of products for first-in, first-out management of products. Reestablishment / Rationalization of Delivery Process ・Conversion of TC Operation System in Gwangju and Daegu (2003) ・Delivery System from OEM to Customer (2004) ・Reduction in Fuel Consumption through Simplification of Route Device for Reduction of Fuel for Vehicles Eco Drive Campaign ・Eco Drive (It is a eco-friendly driving habit enhance fuel efficiency) → Distribution of promotion material / Continuous provision of training ・Reduction in fuel of vehicles by 30% Eco-Friendly Logistics Activities ・Installation of control device for fuel supply pressure ・Reduction in fuel consumption in vehicles (Increased fuel efficiency of 25.6%) ・Reduction in exhaust gas / noise (Decreased by 50%), vehicles’life extension Hi-Pass Terminal ・Introduction of Hi-Pass for all vehicles in 2010 ・Reduction in fuel consumption and exhaust gas ・Resolution of Delivery Delay due to expressway gridlock during commuting [Aekyung’ s Continuous Eco-Friendly Green Logistics Activities] Continuous checking of greenhouse gas emissions by logistics year By continuously checking and managing greenhouse gases of logistics vehicles and logistics center by year, Aekyung is practicing efficient and environmentally-friendly logistics management plan. Due to this plan, greenhouse gas emissions of logistics compared to production have been constantly maintained since 2007. [Logistics greenhouse gas emissions] 43 2013 AEKYUNG ENVIRONMENTAL REPORT 44 2013 AEKYUNG ENVIRONMENTAL REPORT Spark Mini, Green Product of the year selected by consumers In awards ceremony of“2012 Green Product of the Year 2012”organized by Korea Green Purchasing Network, and sponsored by Ministry of Environment, Presidential Committee on Green Growth, Korea Environmental Industry and Technology Institute, Green Seoul Civil Committee and Green Start Network, held in COEX on October 31, 2012, the product of“Spark Mini”was selected as Green Product of the Year by consumers. In addition, Aekyung’ s products have been selected as Green Product of the Year for the 3 consecutive years;“LiQ”in 2010,“Sunsaem Bubble” ,“Esthaar Shampoo Liquid”in 2011, and “Spark Mini”in 2012. Therefore, Aekyung was selected as“3-Year Awarding Company of Green Product of the Year” . Presentation of Green Product of the Year 2012 Awarding Ceremony of Green Product of the Year 2012 Participation in the Low-Carbon Green Growth Expo Aekyung participated in the Low-Carbon Green Growth Expo 2012 organized by Korea Environmental Industry and Technology Institute, and sponsored by Ministry of Environment and Presidential Committee on Green Growth, held in COEX from October 30, 2012 to November 2, 2012 to exhibit diverse green products, and promote eco-friendly activities. 215 companies participated in the ecofriendly exhibition of the Expo which has been held for 4 days, and it was the largest exhibition where 43,000 visited in the event. Expo on 2012 Low-Carbon Green Growth AEKYUNG A happy society created by Aekyung and customers. We will be a socially responsible company. With Love. With Respect. SOCIAL CONTRIBUTION OF AEKYUNG •Conversation with customers •Conversation with communities •Conversation with employees •Awards 48 2013 AEKYUNG ENVIRONMENTAL REPORT Conversation with customers AK Donation Angel Campaign This event participated by all employees started in 2011. Since then, we conduct a“Matching Grant”donation event deducting the amount less than one thousand units from salary and matching donating this amount by the company. The amount donated per month will be used to help the needy neighbors at the end of the year. All Employees’Sampling about LiQ On April 24, 2012, all employees of Aekyung participated in a LiQ sampling event in main areas of Seoul. By taking the opportunity of promoting the product of LiQ, particularly, the use of low amount of detergent, good cleaning power, and outstanding eco-friendly product, we are approaching customers. Hat Stitching Campaign Aekyung, Signed Mecenat Agreement with Sungshin Women's University On February 27, 2012, 30 people of the voluntary club of Central Research Center carried out a ‘Save New Born Baby’, and a‘Hat Stitching Campaign’ , and sent the 45 hats to Zambia and Bangladesh. On May 29, 2012, Aekyung signed a Mecenat Agreement to support artistic human resources with Sim Hwajin, President of Sungshin Women’ s University. In accordance with the Mecenat Agreement, Aekyung decided to support fostering integrated artistic human resources of the university, and provide Aekyung’s representing products such as Kerasys Shampoo, Point Cleansing Cream, and Color Remover for free for the next 3 years. Conversation with communities Aekyung, Donate Scholarship Cheongyang Plant, Donation of Products Cheongyang plant donated 26 kinds of products including Spark for the year of 2012 to Woori Welfare Center and Garim Sanitarium in order to help the elderly and people with disabilities. Aekyung donated scholarship to 14 elementary, middle and high schools in Guro-gu, Seoul on April 6th and 10th, 2012. Aekyung Welfare Foundation has continuously supported children of families without parents and students with superior grades since 2001. Additionally, as part of public services, we have carried out diverse supporting projects for social welfare facilities, home care for the aged, free meal programs and so on to help the needy overcome their difficulties and enjoy new lives. Agreement on Improvement of Water Quality of Gapcheon and Mihocheon With new employees of Aekyung, we delivered 2,500 of briquettes to 10 households among basic livelihood subsidy recipients of Garibongdong area, Gurogu. Hoping that poor neighbors live the winter warmly, we delivered briquettes one by one preciously. Aekyung Welfare Foundation, Donate Scholarship to Students in Jeju On April, 26 2012, we participated in a campaign of‘Reducing Water Pollutants’in cooperation with Guem River Basin Environmental Office and 9 companies located in Daejeon and Chungbuk to reduce water pollutants and we are now in the process of conducting a campaign of‘Save Streams’along with local residents. 1+ 3 Love Sharing Voluntary Service On April 26, 2012, Aekyung Welfare Foundation celebrated a ceremony to donate scholarship to 10 elementary and middle school students. Gang Huinam, Director of Jeju Air Co., Ltd. gave scholarship certificates to the 10 students in the ceremony. The scholarship is 100,000 KRW per one month. Cheongyang Plant, Support for Goods to Hall for the Elderly in Jeongsan-myeon On August 10, 2012, three entities of local government, company and social group are participating in 1 voluntary service organized by a local community. In that regard, Cheongyang plant has carried out diverse voluntary services in a way to help residents living in each local community since 2010. Supporting Briquette Delivery On December 27, 2012, Aekyung donated its 2 products including Trio and Kinchi to 28 halls for the elderly in Jeongsan-myeon, Cheongyang-gun, Chungcheongnam-do. As such, Aekyung carried out voluntary activities in local communities. 49 2013 AEKYUNG ENVIRONMENTAL REPORT 50 2013 AEKYUNG ENVIRONMENTAL REPORT Conversation with employees Operation of Short-Term Performance Reward System Aekyung is trying to encourage employees and improve their moral by providing rewards for them according to their monthly and quarterly performance. Competitive Contest for Happy Lunch Competitive contests in the headquarters, research centers, and plants that all employees and executives participate in have been held using Happy Lunch Time in 2012. By holding such events and contests, all employees’teamwork and their self-respect were enhanced and encouraged. 51 Awards 1999. 06. Good Design Prize in Good Design Goods Exhibition 1999. 09. Cheongyang plant awarded Idea Management Grand Prize and Best Small Group Award organized by Korea Management Association 1999. 12. World Star Award organized by Point, Marie Claire, B&F, WPO 2002. 03. Selected as new Labor-Management Culture Good Company 2003. 10. High living premium bathroom detergent 1kg, packing material reduction part Green Packaging Winner Participation Prize 2004. 10. Aekyung Point Cleansing Brightening Plan Gift Set, 2006. 06. Daejeon plant, 1st National Environmental Management Award Clean Production Part Minister’ s Award of Commerce, Industry and Energy 2006. 11. Plant manager, 32nd National Quality Management Competition Quality Management Achiever Part President's Award 2007. 12. Laundry powder detergent drum packaging container, Future Packaging New Technology Government Award, Minister’ s Award of Commerce, Industry and Energy 2008. 06. 2008 National Environmental Management Award, Large-Medium-Small Green Partner Part Minister’ s Award of Environment 2008. 11. Spark drum container, Pentawards Platinum Award Sunsaem Bamboo& Bamboo Venegar, Pentawards Bronze Award 2009. 11. Kerasys Homme, Pentawards Silver Prize 2009. 12. 2009 Korea Design Award, President’ s Award 2010. 07. Sunsaem Bubble, IF Design Award 2010. 09. Sunsaem Bubble, Reddot Design Award 2010. 10. Sunsaem Bubble, Pentaward Design Award 2010. 11. 2010 Aekyung Rebirth Design Festival“Playing with Karim Rashid” 2010. 12. LiQ, Good Design Minister’ s Award of Knowledge Economy 2010. 12. Grand Prize of 2010 Global Green Management Award Climate Change responding part organized by Korea Management Association and supported by Ministry of EnvironmentㆍMinistry of Knowledge Economy 2013 AEKYUNG ENVIRONMENTAL REPORT Packaging Material Reduction Part Green Packaging Winner Prize 2011. 03. 2011. 06. 2011. 10. Voluntary Agreement for carbon partnership with 2nd partner firms “LiQ”Minister’ s Award of Knowledge Economy for Excellent Packaging Esthaar, Sunsaem Bubble selected as“Green Product of the Year selected by Consumers” 2011. 11. “Spark 3kg Carton”world's first low-carbon certification 2012. 06. “LiQ” , Ministry Award by Ministry of Knowledge Economy in the category of product of Green Management Grand Prize 2012. 10. Prime Minister Award in Contribution in a Low-Carbon Green Growth by Aekyung 2012. 11. Spark Mini, selected as“Green Product of the Year by Consumers” 2012. 11. Aekyung, selected as a company awarded“Green Product of the Year”3 years in a row 2012. 12. Large-Middle-Small Green Partnership, voluntary agreement of green product partnership 2012 Spark Mini, selected as “Green Product of the Year” Green Management certification Prime Minister Award in Contribution in a Low-Carbon Green Growth