LF to strengthen ‘ESG management’
- Significant reduction of packaging waste, the main culprit of environmental pollution, by introducing the industry’s first ‘eco-friendly packaging system’
- Establishment of the foundation for transparent and responsible management through the ‘Performance Compensation Committee’ for the first time in the industry since 2015
LF (CEO Oh Kyu-sik), a lifestyle-focused company, announced on the 25th that it has recently introduced an eco-friendly packaging system, ‘ESG (Environmental•Social•Governance)’ management, for the first time in the industry, to dramatically reduce packaging waste, which has emerged as a social issue due to a surge in delivery volume stemming from changing consumption patterns centered on e-commerce.
'CartonWrap', an eco-friendly packaging system that will be implemented for all brands listed on the LF Mall, LF’s official online store, from July, is developed by CMC SRL, an Italian logistics packaging solution company, and has already been adopted by many distributors and firms in developed regions such as the US and Europe.
'CartonWrap' automates the entire product packaging process and dramatically reduces the amount of packaging waste. When the product is put into a slot, a box is made accordingly to the size of the product, after which all the follow-up processes from packaging to waybill attachment are automatically performed. Instead of using existing, pre-made boxes, thousands of products such as wallets, bags and coats are scanned, allowing for boxes to be made and packaged in the shape customized to the characteristics and sizes of each product. As such, the amount of OPP tape used for packaging can be dramatically reduced.
Through this eco-friendly packaging system, LF will not need to resort to any packaging cushioning materials such as Styrofoam or airbags, which were used to fill the empty space of boxes during the packaging process when using pre-made boxes. Preventing the use of packaging cushioning materials at its source, which is emerging as a major cause of environmental pollution, is now a possible objective.
LF estimates that it will save about 25% (410 tons) of packaging boxes and 90% (0.2 tons) of OPP tape per year after implementing 'CartonWrap'. It is expected to greatly contribute to environmental protection, as it will no longer be necessary to use plastic (about 66 tons per year), which has been used for packaging small-sized products.
“By introducing a proven eco-friendly packaging solution that is being actively used by distributors worldwide, we will be able to reduce the amount of packaging waste to a groundbreaking level. We plan to support environmental values by continuously researching logistically innovative methods to minimize environmental pollution,” said Choi Yong, LF’s Chief of Logistics Innovation.
Prior to this, LF has been practicing eco-friendly management through material innovation to contribute to the creation of a sustainable natural environment. It launched a vegan-oriented beauty brand 'ATHE' back in 2019 and introduced eco-friendly cosmetics certified by 'EVE', a French vegan certification agency. It also made use of recycled nylon yarn and leather through various brands such as Hazzys, DAKS, A.T. Corner, and Jill Stuart New York, greatly expanded its product line of eco-friendly materials.
Since 2015, the 'Performance Compensation Committee', composed of more than half of the nonexecutive directors, was established for the first time in the industry to objectively set the level of merit pay for key executives including the CEO and preemptively set up an institutional device to deliberate on the adequacy of business goals for the upcoming years. LF, which has developed a systematic foundation for transparent and responsible management, plans to reorganize its core values of corporate operation focusing on 'ESG (Environmental/Social Value/Governance)' with the introduction of the eco-friendly packaging system.