From Achieving Carbon Neutrality
to Managing Supply Chain Risks
Hansae Co., Ltd., a fashion ODM company, announced on July 25 that it has published the "2025 Hansae Sustainability Report," which outlines its ESG (Environmental, Social, and Governance) management achievements and strategies. This is the first time the company has issued such a report, aiming to clearly communicate its ESG strategies and achievements to overseas clients and stakeholders.
This report was prepared in accordance with global sustainability reporting guidelines and has secured reliability through third-party verification by the professional verification agency BSI. The report covers ESG achievements of Hansae and its 13 overseas manufacturing subsidiaries, as well as its fabric-specialized affiliate, Color&Touch.
In the environmental sector, Hansae is advancing a multifaceted strategy to minimize climate risks and enhance its low-carbon transition response system. These strategies are based on its mid- to long-term 2029 carbon emission targets and include: improving facility efficiency, introducing renewable energy, converting to electric vehicles, purchasing RECs, and participating in global initiatives.
In February, Hansae joined the Science Based Targets initiative (SBTi), a global carbon neutrality coalition, and set targets to reduce greenhouse gas emissions by 46.6%, fossil fuel use by 50%, and energy consumption by 10.5% by 2029. The company has introduced eco-friendly facilities such as solar panels, biomass boilers, and rainwater recycling systems at key production sites including Nicaragua and Myanmar.
In the social sector, Hansae is proactively addressing ESG risks in its global supply chain. Since 2023, the company has been continuously monitoring labor, human rights, and environmental issues at its 13 overseas subsidiaries and 99 partner companies through its proprietary supply chain system. In 2024, it conducted human rights, safety, and environmental audits focused on major overseas manufacturing subsidiaries. Additionally, Color&Touch, which leads the development and production of various eco-friendly materials such as recycled polyester and organic cotton, has adopted various origin tracking systems to enhance transparency in raw material sourcing and proactively respond to global buyer requirements.
Hansae is also implementing a variety of welfare programs to support work-life balance for its employees, including an in-house loan program, dedicated women's lounges and nursing rooms, and flexible working hours for parents. In recognition of these efforts, the company was selected as a "Family-Friendly Certified Company" by the Ministry of Gender Equality and Family in 2024. Furthermore, Hansae continues to carry out customized social contribution activities that reflect the characteristics of the regions where its domestic and overseas subsidiaries are located.
The company is also working to strengthen shareholder-friendly governance. Hansae operates specialized committees within its board of directors, such as the Outside Director Nomination Committee, Audit Committee, and Sustainability Management Committee. From 2025, it has introduced a board evaluation system to enhance the effectiveness of board operations.
Kim Ikhwan, Vice Chairman of Hansae, stated, "The independent publication of this sustainability report is an important milestone that demonstrates the transparency and credibility of our ESG management to the outside world," and added, "We will continue to practice and verify ESG management in line with international standards and lead the sustainable future of the global fashion industry."
Meanwhile, Hansae has been awarded the highest "AA" grade for the fourth consecutive time and was selected as an "ESG Best Company" in the "2025 First Half Corporate ESG Evaluation" conducted by Korea's leading ESG rating agency, Sustinvest. In 2024, the company was also recognized for its outstanding ESG management capabilities by winning the "Comprehensive ESG Grand Prize" for the second consecutive year at the "K-ESG Management Awards" hosted by the Dong-A Ilbo.
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