Editor's note- ESG, which contains sustainable ideas through environmental and social responsibility and management, is taking a place as mandatory, not an option. Yet, quite a number of businesses are still ignoring this matter. ESG management is directly linked to consumption value. Thus, we are reporting on the steps of leading ESG management businesses this year, hoping to bring messages to both consumers and businesses that are not aware of their importance.

[Consumerwide - HueSoung Jun Reporter / Yohan Bok Reporter] Philip Morris Korea began various ESG activities to take on corporate social responsibility this year.

Under the smoke-free future vision, PMI tried to supply smoke-free products, which are considered less harmful to public health. At the same time, PMI practiced ESG management through social contribution.

E: Seeking environmental sustainability

Philip Morris Korea has begun various social contribution activities for the environment this year. The activity includes the "When Seoul turns clean, the sea becomes clean." campaign. The campaign was initiated to enhance the recognition of citizens regarding ocean pollution while promoting ocrean pollution caused by trash that has occurred in the centre of the city since 2021. In 2022, they picked up trash at Yeoeudo Hangang Park by using biodegradable bags and tongs, introduced a solution to the cigarette butt dump on the street, and gave out Cigawrap, which is specially designed for collecting and trashing the butts of individual smokers, through the Sseudam Seoul booth. This year, PMK organised plogging focusing on rainwater drainages in Dongjakgu Seoul along with citizen crews and initiated Sseudam Filter campaign Season 3, which aims to improve recognition of citizens through art work in rainwater drainages. Besides, PMK began the Modoomoa campaign in April this year. This campaign collects Icos, heets, and terea (devices and sticks) through boxes installed in Icos stores and processes them to minimise environmental influence on the overall life cycle of PM products. Many customers participated in this campaign. During the first campaign, 240 kg of Icos devices and sticks were collected, which was over twofold the target, and to celebrate the results, staff planted 200 trees. This campaign has been expanded to the overall domestic branches of PMK, and they expect to collect one to two tonnes of tobacco sticks and 60 tonnes of devices annually through the project.

PMK has been facilitating environmental and high-efficiency carbon reduction facilities using microalgea, recycled water, and solar energy in cooperation with Yangsansi, Korea Environment Corporation, and Korea Conformity Laboratories. Microalgae absorbs 1.8~2.23 folds (of its own weight) of CO2 in the process of photosynthesis. Additionally, they use reused water instead of tap water, along with solar power only. PMK Yangsan factory has been trying to use energy and water consumption efficiently while earning AWS certification, which is the first case in the cigarette industry in Korea. (Green Tiger Campaign)

S: Social responsibility, consumer health, and shared growth

PM has been encouraging and suggesting a better choice for smokers by developing products with no smoke through investing 1.5 billion won and 980 scientists and R&D experts since 2008, aiming to achieve a smoke-free future vision. For many years, PMK established a virtuous circle growth model in which they grow together with local society by expanding the quality of work placements, increasing local consumption, and increasing tax revenues based on the stable gross profit from the Yangsan factory.

PMK has been sponsoring free opera concerts in the Yangsan area annually (May), purposing to share cultural art with Yangsan citizens along with popularising opera. They sponsored "Il Matrimonio Segreto" in 2022 and "L'elisir d'amore" in 2023. The "L'elisir d'amore" concert secured 800 seats, and many of them were offered to citizens with cultural vulnerability. PMK plans to continue to offer cultural art sharing opportunities in local society.

G: Improving governing structure: gender equality, variety, and embracement.

PMK has increased its female staff employment rate to 18.3% by 2021 (from 15.9% in 2018). The female executives rate of PMK approaches 19% in 2021 (from 0% in 2012), which is four folds of the business average female executive rate in Korea. With all these efforts, PMK won gender-equal business certification from the EU.

PMK provided a good environment for work and staff development opportunities under the value of "the major driving force of the future without smoke is a staff." As a result, they have won excellent employer certification both from the Top Employer Institute (4 years) and Asia (3 awards).

On the 29th, an associated person from PMK said during an interview with Consumerwide, "The "future without smoke" vision of PMI is directly connected to ESG. Our strategy to enhance public health, along with an effort to take social responsibility in the service and product areas, will challenge other businesses. We are continually trying to create shared value while initiating various social contribution activities.