Driving ESG Management... BGF Group Publishes Sustainability Management Report

[Asia Economy Reporter Jeon Jinyoung] BGF Group is accelerating its ESG (Environmental, Social, and Governance) management by publishing its fifth sustainability management report.

BGF Group has been publishing sustainability management reports containing ESG management performance and vision since 2018, the first in the industry, and based on this, it is the only company in the industry to have received an integrated A grade in ESG evaluation from the Korea Corporate Governance Service for two consecutive years.

This sustainability management report was published under the title "A Good Friend Making a Better World" by the holding company BGF and BGF Retail, which operates CU, respectively.

In particular, last year, BGF Retail's public function based on its network capabilities shone during the social crisis caused by COVID-19.

BGF Retail established a hotline with the Ministry of Food and Drug Safety to stably supply self-diagnostic kits to customers, and minimized public confusion by providing a real-time inventory search service for self-diagnostic kits by store through the membership application 'Pocket CU.' It was the first in the industry to lower the price of self-diagnostic kits, reducing the economic burden.

Additionally, through the 'iCU' program, which prevents missing children and dementia patients as well as child abuse, a channel was created to care for marginalized neighbors in a situation where contact with people decreased due to COVID-19. The emergency disaster relief activity 'BGF Bridge,' which responds to national disasters such as typhoons and wildfires, has also established itself as a case of protecting community safety by utilizing BGF Group's largest nationwide network.

Eco-friendly activities are also continuously being carried out. As the first in the industry, PB bottled water was completely switched to label-free packaging, and PB snack packaging was replaced with eco-friendly packaging materials, reducing over 1,400 tons of plastic in 2021 through environmentally friendly packaging.

Efforts to realize a growing business model continue as well. Industry-leading win-win models have been steadily presented, such as reducing and exempting sales penalties, introducing an autonomous dispute resolution center, and implementing voluntary holiday and condolence leave systems. In fact, last year, BGF Retail was recognized for its contribution to fostering a healthy franchise culture and received the highest grade award in the franchise sector implementation evaluation of the Fair Trade Agreement hosted by the Fair Trade Commission.

Lee Geonjun, President of BGF Retail and co-chairman of the ESG Management Committee, said, "BGF Group regards the sustainability management report as a roadmap for future growth and a benchmark for strengthening responsible management," adding, "As a leading global franchise in Korea, we will strengthen ESG management that all stakeholders including customers, investors, employees, and franchisees can empathize with to create a sustainable corporate ecosystem."