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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 Corporation
CEO Seung-Joon Lee

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
Goals and Results of Environmental Management Practices

The Orion Group and affiliated companies proactively engages in various activities with the goal of reducing greenhouse gas emissions by more than 3% every year and ultimately reduce greenhouse gas emissions by more than 30% by 2030 (compared to 2018). We established the ‘Global Carbon Emission Integrated Management System’ for the first time in the Korean food industry and introduced the eco-friendly ‘Flexo printing machine’, into our production process. What’s more, we have been accredited with the corporate environmental management system (ISO14001) certification, as we introduce and operate commercial electric vehicles to reduce carbon emissions in the product sales phase.

Global Carbon Reduction Goals and Results (GHG Emissions : tCO2e, GHG intensity : tCO2e/ton)

Goals

To reduce emissions by more than 30% by 2030 (versus 2018 levels)
To reduce emissions by 3% every year

*Based on emissions

  • Orion Group

    GHG Emissions in 2021 : 228,446

    GHG intensity : 0.74


    GHG Emissions in 2020 : 256,153

    GHG intensity : 0.80

  • Korea

    GHG Emissions in 2021 : 65,129

    GHG intensity : 0.78


    GHG Emissions in 2020 : 67,947

    GHG intensity : 0.81

  • Orion China

    GHG Emissions in 2021 : 140,128

    GHG intensity : 0.85


    GHG Emissions in 2020 : 140,191

    GHG intensity : 0.90

  • Orion Vietnam

    GHG Emissions in 2021 : 39,154

    GHG intensity : 0.64


    GHG Emissions in 2020 : 39,338

    GHG intensity : 0.74

  • Orion Russia

    GHG Emissions in 2021 : 9,972

    GHG intensity : 0.27


    GHG Emissions in 2020 : 8,677

    GHG intensity : 0.31

Emissions Performance in 2021 *Independent assessment complete(Korean Standards Association)

Worldwide: Reduced emissions by 1% versus 2020 levels
(Reduced GHG intensity by 8%)
In Korea: Reduced emissions by 4% versus 2020 levels
(Reduced GHG intensity by 4%)

Green Investment Performance (in Korea)

(Unit: KRW 100 mil)

64.9 71.6
60.9 74.1
Green investment schemes (reported figures)
Green investment schemes (reported figures)

2020 2021

94%
103%
Execution Rate Execution Against Plans
Performance of Raw Materials Use and Eco-Friendly Purchase
원부자재 사용실적 및 친환경 구매/매출 실적
Category Unit 2020 2021
Total raw material usage ton 172,253 169,863
Total purchase amount of raw materials KRW million 2,602.9 2,765.4
Total subsidiary materials usage ton 125.6 116.9
Paper ton 74.6 71.9
Plastic ton 4.3 7.6
Miscellaneous Materials ton 46.7 37.4
Ink/Solvent unit 1,365,667 1,343,696
Total purchase amount of subsidiary materials KRW million 376.2 401.5
Purchase amount of Eco-friendly subsidiary materials KRW million 268.8 307.0
Paper KRW million 242.8 279.9
Recyclable Plastic KRW million 13.3 10.1
Water-based Ink/Solvent KRW million 12.7 17.0
Proportion of purchasing Eco-friendly subsidiary materials % 71.5% 76.5%
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.)

Amount of GHG Emissions in Korea (Unit : tCO2e)
Amount of GHG Emissions in Korea
Category 2019 2020 2021
Amount of direct emissions 27,115 26,680 25,822
Amount of indirect emissions 41,285 41,087 39,307
Total amount 68,400 67,647 65,129
GHG intensity(tCO2e/ton) 0.85 0.81 0.78
Energy Used in Korea (Unit : tCO2e)
국내 에너지 사용량
Category 2019 2020 2021
Amount of energy used 508 501 484
Amount of electricity used 820 819 797
Amount of steam used 16 15 14
Total amount 1,344 1,335 1,295
Energy intensity(TJ/ton) 0.02 0.02 0.02
Water and Waste Management

We actively pursue water conservation at scale for efficient use of water resources used in the product process. (Water consumption increased by 6.8% in 2021 : 635,973 tons in 2020 → 676,696 tons in 2021) In particular, our Cheongju Factory is at the forefront in eco-friendly practices by recycling 100% of the water used for washing potatoes as other washing water. (Waste Discharge reduced by 3.3% in 2021 : 7,769 tons in 2020 → 7,515 tons in 2021) As for waste management, we rolled out a series of snacks that uses an eco-friendly 'one-stop package' that can be displayed by simply opening the packaging in 2020. Each of our factories uses 100% of sludge/ sewage and plant-based residues for composting and soil improvement.
※ Aggregation range of water usage and waste emissions : Major domestic business sites(headquarters, Cheongju plant, Iksan plant)

Water Consumption & Reuse Rate (Unit: tons)
용수사용량 및 재이용률
Category 2019 2020 2021
Water use Water works 1,051,437 479,448 517,147
Ground Water 132,318 156,525 159,549
Total 1,183,755 635,973 676,696
Amount of water recycled 41,039 23,375 14,233
Output 1,142,716 612,598 662,463
Recycle rate 3.5% 3.7% 2.1%
Discharged wastewater 391,693 395,808 446,392
Amount of Waste Generated & Recycled (Unit: tons)
폐기물 발생량 및 재활용률
Category 2019 2020 2021
General Recycling 7,191 7,759 7,509
Incineration 12 0 0
Subtotal 7,203 7,759 7,509
Designated Recycling 1 1 1
Incineration 8 10 5
Subtotal 9 11 6
Total 7,212 7,770 7,515
Amount of waste recycled 7,143 7,742 7,429
Output 69 28 86
Recycling rate 99.0% 99.6% 98.9%
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
Statistics of Environmental Law Violation

In 2021, there was one violation of the Water Environment Conservation Act at Iksan Plant (fine of 600,000 won, unregistered hazardous substances detected), and after registering an application for permission for hazardous substances with the Ministry of Environment, it is inspected/managed twice a year.

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

We duly strive to lower environmental impacts on local communities and preserve biodiversity by making donations to the Orion Foundation to carry out the following activities.

주요 교육프로그램
Lowering environmental impact Biodiversity preservation
World Vision
GLOBAL 6K FOR WATER
KRW 15 million (2018-20)
Jeju Techno Park
Preservation of water resources in Jeju
KRW 100 million (2021)
Gotjawal Communalization Foundation
Preserving the Gotjawal ecosystem
KRW 70 million (2021)
WWF Korea
Protection of porpoises (indigenous dolphins)
KRW 10 million (2021)
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.

Set up the Integrated Control System for Reduction of Global Carbon Emissions

In 2021, we completed the independent (third-party) verification conducted by Korean Standards Association (KSA) that meet international standards on GHG emissions at our overseas locations including China, Vietnam, and Russia. To manage our carbon reduction goals, we introduced the Integrated Control System for Reduction of Global Carbon Emissions, which enables us to efficiently manage key data such as the amount of GHG emissions, emission rights, status of GHG-emitting facilities at our business sites in Korea, China, Vietnam, and Russia. We are the first in the Korean food industry to adopt this system. With it, we are managing the emissions amount and goals of our locations based on data, while identifying and implementing reduction items.

Installed Flexo Machines for Eco-Friendly Printing

In 2019, we began employing flexo machines that print packing materials in a sustainable manner. Flexo printing is a method of producing packaging materials by significantly reducing the use of ink and organic solvents, which are harmful chemicals, unlike the existing gravure method. For this, we invested a total of KRW 12 billion(7 billion in 2019, 5 billion in 2021) and put a second flexo machine into use. We are adopting flexo printing for 38 products, including Choco Pies and Wacle, with plans to expand this to 80% of all our products going forward. This significantly reduces environmental degradation because the technique can decrease the use of organic solvents by up to 800 tons a year.

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 plant participated in the energy and climate change category of the National Convention on Quality Control Circles and won the Presidential Gold Award for two consecutive years(2020, 2021). In 2021, the GHG emissions intensity was reduced by 9.3% compared to the previous one by installing a power saving device, replacing a cooling water circulation pump, and improving air conditioning facilities. By installing energy-saving steam supplies for Kkobuk Chips and waste heat recovery facilities for potato fryers in 2020, we have achieved a 5.1% reduction in GHG emissions intensity compared to the previous one. In particular, the case of waste heat recovery facilities was selected for the first time in the F&B industry as a GHG reduction project of the Foundation of Agricultural Tech Commercialization & Transfer and received about 50% of the facility investment expenses.

Iksan Factory

The Iksan plant participated in the energy and climate change category of the National Convention on Quality Control Circles and won the gold and silver Award for two consecutive years(2022, 2021). In 2022, we reduced GHG emissions intensity by 10.3% and 7.7%, respectively, through the establishment of outdoor air supply facilities in the manufacturing room of Chewing Candy product Beatles and the improvement of refrigerators for storing frozen potatoes, the main ingredients of Nuneul Gamja. In 2021, we are reducing 475 tons of GHG per year by improving the air compressor facilities used in the production of Goraebab and improving the facilities to recover and recycle waste heat generated during the production of Cuttlefish Peanut Balls.

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 in & Development of Renewable Energy in Overseas Affiliated Companies

We have installed and used solar power systems in the plants of Orion Vietnam and Orion China. Considering the electricity shortage in Vietnam, Orion Vietnam installed solar cells that convert sunlight into electricity on the rooftop of the My Phuoc factory in June 2020. Since then, they have used solar power to produce products. Between June 2020 until the end of 2021, the My Phuoc factory produced a total of 1,236,810kw, reduced approximately 800 tons of GHG, and saved energy worth KRW 127 million. In step with the Chinese Government’s measure to reduce carbon emissions in Gwangju and Shanghai plants, we installed the solar power systems in these factories as well. With these plants combined, we expect to save 3,000 tons of GHG a year. Going forward, we plan to expand investments in the solar power system at all factories of affiliated company.