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K-pop agency JYP Entertainment became the latest company to roll out their ESG strategy when they announced in a report earlier this month that they have decided to do away with physical album sales in a step towards environmental sustainability.
The company, in their annual ESG report, claimed:
"JYP Entertainment will create a K-pop culture where the entertainment industry and the environment can continue to co-exist through content containing environmental values".
The decision comes as part of JYP's ESG strategy after several media and public debates on the unsustainable nature of the K-pop industry, especially with regard to album sales.
JYP Entertainment seeks to replace physical albums with digital versions
JYP Entertainment is home to K-pop mega acts like TWICE, ITZY, Stray Kids and previously GOT7( their contract with JYP has now ended).
During the presentation of the company's Leaders of Change annual report, founder Park Jin-young stated that the company is working to "raise awareness of environmental campaigns" and "brainstorming to find the most environmentally friendly way to replace and reform the CDs of our artists."
In their latest report, the agency announced the decision to completely do away with physical albums and replace CDs by launching digital-based album formats. The only physical item fans will receive with album purchases are photo cards, and various eco-friendly options are being considered for the production of those and other merchandise.
The report states:
“We will actively utilise eco-friendly materials such as biodegradable plastic made from nature and upcycling products using discarded waste, and expand the reusable products that can be reused several times, such as clothes, eco-bags and tumblers using natural materials”
JYP Entertainment's decision is significant considering that the sale of CDs and vinyl records generated 19.2% of the sector's worldwide revenue in 2021. In South Korea, physical sales alone account for 32.4% of 2021 revenues. However, the growing trend of mass album purchases to collect photocards has stirred up quite the controversy, with many people pointing out its adverse impacts on the environment.
Fans often buy albums in bulk to increase their chances of being selected to attend fan-signs or autograph sessions, since there is practically no chance of being selected for fan signs by purchasing one or two albums.
In addition, many typical K-pop merchandise items are made of single-use plastics and the highly profitable market for such merchandise has expanded thanks to social media, with fan communities valuing members who show their support for artists through performative consumerism.
JYP Entertainment has implemented other environmentally responsible policies in the past
JYP Entertainment has always led the way by taking decisive steps towards a cleaner planet, inspiring corporates to understand the importance of initiative in environmental sustainability. They were the first entertainment company to implement K-RE100, a campaign for companies to fund 100% of their energy requirements through renewable resources.
That apart, JYP runs an eco-friendly corporate social responsibility business called 'Love Earth' and is also a member of '1% for the Planet', a global network to provide funding and support for environmental groups.
Earlier this year, it was revealed that JYP Entertainment and fintech company Dunamu had agreed to terminate a prior agreement about establishing a joint venture for the creation of NFTs. The decision came in response to backlash from fans over the environmentally harmful effects of NFT on the planet.
Other K-pop agencies implementing ESG policies
Mass purchase of albums by fans to boost their favourite K-pop groups' popularity has led to an equally large scale disposal of these albums, thereby increasing plastic production and consumption.
In light of this, many K-pop agencies have now implemented various environmentally conscious policies in the name of ESG, such as selling photo cards in the albums along with a QR code for the digital version of the album, instead of the customary vinyls.
At the time of writing this article, JYP Entertainment had not yet set a date for their shift from physical to digital albums.
