Kolmar BNH achieves top ESG rating in 2024 sustainability assessment

Kolmar BNH (KRX: 200130), a leading player in South Korea’s health functional food market, has achieved an integrated A grade in the 2024 ESG Rating Evaluation conducted by the Korea Institute of Corporate Governance and Sustainability (KCGS). This milestone marks the company as a trailblazer in Environmental, Social, and Governance (ESG) management, an achievement unmatched in the Original Development Manufacturing (ODM) health food sector.

The accolade follows Kolmar BNH’s comprehensive ESG initiatives, centred on cutting-edge eco-friendly technologies and a commitment to sustainable growth. The company’s flagship product, HemoHIM, has been at the forefront of these efforts. Designed to enhance immune function, HemoHIM is produced using a proprietary ethanol recovery system that slashes carbon emissions by 94%. The process recycles ethanol extracted from natural ingredients, such as angelica gigas, cnidium officinale, and paeonia japonica, ensuring minimal waste and maximum resource efficiency.

Leading in green innovation

Kolmar BNH has established itself as an innovator in sustainable research and development (R&D). The company channels more than 2% of its annual sales into R&D and has allocated over 30% of its workforce to advancing green technologies. This dedication has resulted in the company becoming the first in Korea’s health functional food industry to receive consecutive ‘Green Technology Certification’ and ‘Green Technology Product Certification’ from the Ministry of Agriculture, Food, and Rural Affairs.

One of the cornerstones of Kolmar BNH’s sustainability drive is its smart farming operations, which use hydroponic cultivation techniques to grow virus-free plants. This method not only secures a stable supply of raw materials for HemoHIM but also reduces environmental impact. In a move to strengthen community engagement, the company has shared its cultivation technology with local farmers, promoting agricultural innovation and regional economic resilience.

Workplace safety and governance recognised

Kolmar BNH’s achievements extend beyond environmental stewardship. The company has maintained ISO 45001 certification for occupational health and safety management systems across its facilities and has recorded zero serious workplace accidents for three consecutive years. On governance, Kolmar BNH has reinforced transparency by implementing ISO 37001 anti-corruption and ISO 37301 compliance management systems.

The company’s ESG efforts align with the growing global demand for sustainable business practices. KCGS, which annually assesses listed companies on their environmental, social, and governance strategies, highlighted Kolmar BNH’s achievements in all three domains.

Driving the industry forward

Kolmar BNH’s recent recognition underscores its position as a leader in the ODM health food sector and signals a shift toward greater sustainability in the industry. A company representative stated that advancing eco-friendly technologies is a necessity for ODM firms aiming to remain competitive and sustainable in a rapidly evolving market. The official added that Kolmar BNH will continue to expand its R&D-driven ESG strategies to solidify its global standing.

This latest recognition marks a significant step forward for Kolmar BNH as it continues to champion sustainable practices in South Korea’s health functional food industry and beyond.