Coway Co. Ltd. is a Korea-based company primarily engaged in environmental appliances. The company’s products portfolio consists of water purifiers, air purifiers, bidets, water softeners, vacuum cleaners, water dispensers, food waste treatment solutions and sewage treatment solutions for household and business uses. Its water purifiers include free standing, counter top and under sink types. It is also involved in the mattress rental and related home care services markets.
It is clear that Coway values innovation, especially in terms of energy efficiency. For instance, the company quantified its estimated economic loss stating, “If the sales of its products decreased by 200,000 units because of uncompetitive energy consumption efficiency of its water purifiers, Coway would expect to lose 200 billion Korean Won.” Recognizing this risk, “Coway selected the development of energy reduction technology as the most important opportunity factor…and established a product energy reduction goal and R&D strategy.” Beyond energy efficiency, Coway works to limit the life cycle impacts of its products from cradle to grave. Coway voluntarily applies RoHS regulations group wide, employs take-back programs, and operates an “eco-friendly production system.” As a result, Coway’s sales of eco-friendly products has increased. To further supplier innovation Coway operates communication channels, training programs and provides financial support to “strengthen supplier’s business capabilities.” Coway has achieved ISO 14001 certification at its major manufacturing plants as well as at its Seoul Office and R&D Center.
Coway has a strong normalized greenhouse gas emissions target in place and while the company reports on its waste recycling efforts, energy use and water use, trend data is not provided, nor are future reduction goals. Improved disclosure of the company’s key performance indicators is an area noted for improvement.
Industry: Consumer Discretionary
Country: South Korea
To the best of our knowledge the above information is accurate and was obtained from sources we believe to be reliable. Neither the information presented above nor any opinion expressed shall be construed as an offer to sell or a solicitation to buy the security. The views expressed are those of portfolio management as of 12/31/16 and may not reflect current opinions or subsequent events.