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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
Medium- to Long-Term Goals and Strategic Framework for Eco-Friendly Management

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

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

Strengthen global eco-friendly capabilities

Manage the entire value chain

Establish action plans related to business operations

Key eco-friendly Activities and Achievements

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

Green Investment Performance (in Korea)

(Unit: KRW 100 mil)

41.2 26.7 13.5 30.0
(E)
Environmental investment amount

2022 2023 2024 2025

116%
93%
92%
Execution Rate Execution Against Plans
Eco-Friendly Products and Purchasing

Orion is committed to delivering socially and environmentally responsible products to consumers. Since 2014, through our Eco-Friendly Packaging Project, we have reduced packaging sizes and ink usage to protect the environment, while increasing product volume to provide greater value to consumers. In 2015, we reduced printing colors for 22 brands, saving 88 tons of ink annually. In 2017, we successfully developed an eco-friendly ink free from harmful VOCs and became the first in the food packaging industry to obtain the Ministry of Environment's Green Technology Certification.

In 2023, we further advanced our packaging technology by applying water-based ink with flexographic printing, which significantly reduces hazardous chemicals. This innovation earned us Green Technology Certification for packaging manufacturing and Green Technology Product Certification for packaging using this method. As a result, we are able to reduce ink and organic solvent usage by up to 800 tons annually, contributing greatly to environmental protection.

In 2019, we applied water-soluble labels to 'Dr. You Jeju Volcanic Water'. In 2022, we launched 'Dr. You Jeju Volcanic Water No-Label', which incorporates three eco-friendly features—no label, clear caps, and clear bottles—enhancing recycling efficiency and consumer convenience in waste separation. Thanks to these efforts, the 530mL 'Dr. You Jeju Volcanic Water No-Label' received the highest "Best for Recycling" grade under the Ministry of Environment's Packaging Material Recycling Assessment Standards.

We are also dedicated to eco-friendly procurement. Through our internal Green Purchasing Policy, we take environmental factors into consideration from the earliest stages of procurement, prioritizing products certified for their eco-friendliness, such as Eco-Label and Recycled Certification products. This approach helps conserve resources and reduce environmental pollution.

Climate Change Response

In response to global climate change, the company continues to strengthen group-wide efforts to reduce greenhouse gas (GHG) emissions and improve energy management. In Korea, various initiatives were implemented in 2024 with the goal of reducing GHG emissions intensity by more than 3% compared to the previous year.
※ 2023 intensity: 0.72 → 2024: 0.72

Similarly, the company worked to improve energy efficiency — including upgrading production facilities — aiming for a 3% reduction in energy consumption intensity compared to the previous year.
※ 2023 intensity: 0.0144 → 2024: 0.0144

Water and Waste Management

To ensure the efficient use of water resources in our production processes, we set a goal to reduce water consumption intensity by 2% compared to the previous year. Notably, the Cheongju Factory leads eco-friendly practices by recycling 100% of the water used for potato washing for other cleaning purposes.
※2024 water usage decreased by 7.5%: 2023 intensity 7.85 ⇒ 2024 intensity 7.26

We are also managing operations with the goal of achieving a 100% waste recycling rate.
※ 2024 waste recycling rate: 95.5%

Our eco-friendly "One-Stop Package" snack series allows products to be displayed immediately after opening the packaging, reducing additional handling and waste. At each factory, 100% of sludge and plant-based residues are reused for composting and soil improvement. In 2025, the Ansan Factory became the first in the domestic flexible packaging industry to receive Recycled Resource Recognition for waste synthetic resins (PP, PET, PE) generated during packaging material production, enabling their recycling instead of disposal.

Environmental Risk Control
Accident-Handling System

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

Head of the General Affairs Department

Broadcast in the headquarters Relevant police station / fire station

Heads of each team

Workers in each division

Headquarters

Chairman of the Accident-Handling Committee(Factory manager)

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

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

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

  • Legal risk control

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

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

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

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

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

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

Environmental Regulation Violation Status

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


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

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

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

※Research Achievements of the Marine Animal Research Center (MARC)
- Conducted ecological research and campaigns on Indo-Pacific bottlenose dolphins and finless porpoises in 2024.
→ Implemented the "Keep a Safe Distance" campaign to raise awareness of factors—such as vessel tourism—that may impact dolphin habitats, and carried out three months of acoustic monitoring in their habitat.
→ Secured 12 finless porpoise carcass sample data points and conducted four days of field surveys for behavioral observation.


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

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

WWF
Protection of Bottlenose
Dolphins: 10million(2021)
MARC
Protection of Bottlenose
Dolphins:25million(2022-2024)
KRW 420 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.

※Key Training Programs in 2024
- Environmental Mandatory Training (waste, hazardous chemicals, water, air) / Conducted for 55 employees in charge of environmental and production affairs across factories / March 26 2024 ~ November 6 2024/ Environmental management and Accident prevention.
- ESG Competency Building Course / 5 employees from the Procurement and ESG teams / October 24–25 2024/ Theory and Practice of Materiality Assessment assessment.
- Climate Disclosure Readiness Training / 2 employees from ESG team / May 17, 2024/ Climate Disclosure Standards and TCFD-aligned reports structure.

Environmental Performance Evaluation

Since 2018, the Group has developed the Ethics Management Index to evaluate and manage the performance of ethical management and ESG activities across the organization. In the environmental sector, the index is used to measure and manage eco-friendly performance by corporation and department based on key indicators such as greenhouse gas emissions reduction, energy consumption reduction, reduction of environmental pollutants (e.g., waste and water), compliance with environmental regulations and preventive activities, and environmental cleanup initiatives.

The results of the Ethics Management Index are reflected semiannually in the KPI evaluations of corporate CEOs, C-level executives, and team/part leaders, directly linking performance with compensation. In addition, environmental teams and managers have their performance evaluated based on key environmental activities and risk management at each site, strengthening the implementation of ethical management and ESG initiatives.

Establishment of a Global Environmental Information System 

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

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

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

Acquisition of Eco-Friendly Certifications
Environmental Management System (ISO 14001)
Energy Management System (ISO 50001)
Green Technology Certification and Products
Recognition of Recyclable Resources
Certification of Green Factories and Carbon Footprint Verification

In June 2022, the Korea subsidiary obtained ISO 14001 (Environmental Management System) certification across all domestic business sites, demonstrating its strong commitment to eco-friendly management.

In September 2023, the company was awarded certifications for both Green Technology and Green Technology Products in recognition of its flexographic printing technology, which significantly reduces hazardous chemicals by using only water-based ink without additional solvents.

In 2025, the Ansan Factory became the first in the domestic flexible packaging industry to obtain recognition of recyclable resources for waste synthetic resins (PP, PET, PE) generated during the packaging manufacturing process. This enabled the recycling of materials that were previously treated as waste.

Among all subsidiaries, ORION CHINA — the largest in terms of production scale — obtained the Environmental Management System (ISO 14001) certification for its Langfang, Shanghai, Guangzhou, and Shenyang Factories between 2018 and 2021. In addition, all Factories were awarded the Energy Management System (ISO 50001) certification in recognition of their systematic efforts to reduce energy consumption and improve efficiency.

From 2020 to 2024, all Factories under ORION CHINA completed Carbon Footprint verification. Furthermore, the Shenyang, Guangzhou, and Shanghai Factories received the government-issued Green Factory certification, following a comprehensive evaluation of their use of Eco-Friendly raw materials, sustainable production processes, and waste management practices.

Introduction of Electric Commercial Vehicles (EVs)

The Korea subsidiary has completed the transition of all replaceable 1-ton commercial vehicles to EVs. Starting with the pilot introduction of two 1-ton EVs at the Geumcheon Sales Office in Seoul in 2021, the company added 2 more in 2022 and an additional 8 in 2023.

In total, 12 EVs have replaced conventional models, resulting in reduced fuel costs and an annual reduction of approximately 18 tons of carbon emissions, while also achieving high satisfaction among sales representatives.

As of 2024, eco-friendly vehicles account for 2.3% of the fleet (12 out of 527 vehicles).

Cheongju Factory

The Cheongju Factory won the Presidential Gold Award in the Energy & Climate Change category at the International Convention on Quality Control Circles (ICQCC) for two consecutive years (2020–2021). In 2021, GHG emissions intensity was reduced by 9.3% through power-saving devices, cooling pump replacement, and air conditioning upgrades. In 2020, an energy-saving steam supply system for Turtle Chip production and a waste heat recovery system for the potato fryer achieved a 5.1% reduction. The latter was the first in the food and beverage industry to be selected for the Foundation of Agricultural Technology Commercialization and Transfer (FACT) GHG Reduction Project, covering 50% of equipment costs.

The factory also secured 50% funding to establish an Energy Management System (EnMS) in 2022 and, in 2023, to replace air compressors with high-efficiency models and install advanced controls under the Carbon Neutral Equipment Support Project. In November 2024, Cheongju Factory 1 began installing a 500kW solar power system, set to start operation in May 2025, expected to save KRW 100 million annually in electricity costs and cut GHG emissions by 300 tons.

Iksan Factory

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

Providing Support for Suppliers & Affiliates

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

Investment/Development of Renewable Energy in Overseas Branches

Our overseas branches focus on renewable energy adoption and operation. In 2022, the Chinese factories in Shanghai and Guangzhou installed solar power systems, followed by Shenyang, Langfang, and the packaging factory in 2023, completing solar system installations across all factories. Additionally, second-phase expansions of solar systems in Shanghai and Guangzhou were completed. In Vietnam, all factories (Yen Phong and My Phuoc) have also completed solar system installations. Since 2022, the Yen Phong factory has introduced a biomass system that burns wood chips to generate heat, replacing the previous LPG boilers. Biomass has higher thermal efficiency and significantly reduces carbon emissions. It is expected to save 1.1 billion KRW annually in energy costs and reduce carbon emissions by 4,200 tons per year. There are plans to introduce biomass systems to the My Phuoc factory in 2024.