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Our Supply Chain

Background
The scope of corporate responsibility has been expanded to the overall value chain. Under the circumstances, it is easy to find cases where child labor, forced labor, or nature destruction throughout the supply chain deteriorate the added value of final goods or services, posing a grave threat to global companies. Therefore, stakeholders including investors and clients demand a detailed disclosure of the ways how a company manages its raw material suppliers, regarding supply chain management as risk management.
Management Approach
KCI has set up and applied supply chain management policies in the perspective of ʻparticipation’ in creating a sustainable society and environment together, rather than sanctioning or evaluating management activities. The policies are assessed and revised frequently in line with the requests from stakeholders as well as internal and external environmental changes. esides, we have the means to monitor the situation of suppliers at a set period in accordance with the regulations and to derive improvement measures for problems detected. As a part of aising the sustainability of our suppliers and making a better society, we also obtained RSPO certification, in which many global companies around the world participate. We are the first one to acquire the certificate as a cosmetic raw materials company in Korea.
Next Step

Continued revision

of supply chain management regulations

Extended evaluation

for supply chain sustainability

Establishment of Code of Conduct

for suppliers

Assessment of suppliers

on occupational safety environment

Sustainable
Supply Chain
Management
RSPO Certification for Responsible Purchasing
Palm oil is an eco-friendly raw material with excellent biodegradability and is widely utilized in cosmetics and personal care products. However, the growing demand for palm oil has led to deforestation and further brought about severe issues such as the poor working conditions of workers in the industry. As we are keenly aware of these issues, we obtained the Roundtable on Sustainable Palm Oil (RSPO) certification for the first time in the cosmetics industry in Korea, aiming at preventing the problems. We document the RSPO Supply Chain Certification Standard regulations on our own, while meticulously checking the conformity of raw materials to the RSPO Mass Balance (MB)* throughout the entire process from warehousing, storage, sales to shipment. Going forward, we will provide RSPO training and review our management activities through internal audits so that our management is continued to be in line with RSPO certification. *A display of the ratio of certified palm oil to non-certified palm oil on the product

Suppliers (palm oil derivatives)
KCI Sustainable Policy
With the objective of managing supply chains in a responsible manner, we have established the KCI Sustainability Policy based on the principles and standards of RSPO certification. We pursue sustainability in the production process of all products through the KCI Sustainability Policy, which aims to ʻban deforestation, protect peatlands, and have a positive social and economic impact on local communities’. The policy is applied not only to production but to decision-making and daily work, doing our responsible management activities for both the environment and society..

Sustainability Policy

Our Product

Background
The products and services of a company underpin the corporate value. In this regard, companies producing chemical products are still a concern for many consumers. Although chemical products are deeply entrenched in our daily lives, consumers’ anxiety arises as mass media and social media show product cases that adversely affect the human body and the environment every year. Thus, the chemical industry and companies should all the more strictly manage their products and thoroughly consider the factors that can make an impact on society and the environment when developing and producing products.
Management Approach
In terms of product production and management, we look into the demands of stakeholders as well as related laws that differ in each country, including the US and EU, while identifying risks and opportunities. We are being particularly careful to prevent the violations of laws by swiftly responding to law amendments, and the training for internal employees and suppliers is continuously provided. In order to stably maintain the same quality, we implement random quality inspections on all products while placing importance on environmental and human safety and high functionality. On top of that, by using eco-friendly raw materials, we make strenuous efforts to achieve a non-hazardous and sustainable product life cycle in the entire process from production, use to disposal.
Next Step

Advancement of the management system

in quality/environment/ safety

Life Cycle

Assessment (LCA)

Advancement of the management system

for hazardous chemical substance

Our Business

Background
When a company is excessively dependent on a particular business, it will face an immensely adverse effect when a risk occurs in that business. Accordingly, many companies seek to additional boost economic returns and risk dispersion through business diversification. Making inroads into a new market for business diversification will certainly require a variety of strategic decisions. Without objective evaluation of internal competency and thorough preparation and analysis of the external environment, the company will rather suffer from tangible and intangible asset loss.
Management Approach
KCI will become a company that continuously grows, never settling for the present. So as not to miss out on growth opportunities, we closely monitor the international landscape and industry trends, examine risks and opportunities, while investing in sharpening R&D capabilities. Our R&D team and the Solution team are the core assets of the company. These teams conduct joint research with the customer researchers to find out reasonable solutions. On the basis of these endeavors, we will further strive to produce high value-added products with the competitive edge in the new multi-care and medical markets.
Next Step

Expansion of multi-use and skincare products

in the portfolio

Higher financial performance

in terms of revenues, net income, etc.

Expansion of Global Top 3 Products

Business entry

into medical area

Our Customer

Background
It is not exaggerated to say that customers decide the success of a company. Accordingly, many company set their target customers to run their business ranging from drawing up strategies, to producing, to selling. They put efforts into not only catching the needs of customers but also handling the complaints of customers. In light of this, the MZ generation is the most important class of customers in the cosmetics and personal care industries. This generation is responsive to keywords such as eco-friendliness, diversity, and ustainability, being very active in raising their voice toward corporations. Hence, we need
Management Approach
Communication with customers underpins our growth. KCI has implemented ʻKCI customer satisfaction survey’ to listen to customers’ voices regarding our products and services, and our entire business operation. The collected data go through systematic analysis, and then are reported to CEO and other key executive members. We also use this feedback to refine the current policies and ongoing tasks. As for the areas that are difficult to handle with this survey, we use external consulting services while actively responding to ESG assessments such as CDP and EcoVadis to gain higher ratings. On top of that, a wide range of activities are being carried out to earn trust from our customers.
Next Step

Continuous improvement in key

ESG-related scores

New ESG-related business operations

(receiving new ssessments, declaring new initiatives, etc.)

Efforts toobtain more certifications

CRM establishmentand
customer satisfaction management

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If you do not want our company to hold your personal information, you may request that we delete it at any time. The information below shall be kept for the specified period as shown below for the reasons listed.
Holding information according to our internal policies
Retention period: 5 years from the date of processing the inquiry
Retained information: Fist name, Last name, Email, Company name, Duty, Country (subject and content)
Retention Reason: For inquiries • consultation and sales activities (e.g. sales marketing, customer service quality monitoring, etc.)
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