Report - COP Prototype

2022 Communication on Progress

Hyosung Advanced Materials Corporation

Published date

June 27, 2022

No. of questions

Supplemental files

CEO Statement

Signed

Governance

Policies and Responsibilities

1. Does the Board / highest governance body or most senior executive of the company:

Issue an annual statement about the relevance of sustainable development to the company

Issue an annual statement that addresses impacts on both people and the environment

Issue an annual statement highlighting a zero tolerance for corruption

Sign off on organizational sustainability targets

Supervise Environmental, Social, and Governance reporting

Regularly review potential risks related to the business model

None of the above

Optional comment

http://www.hyosungadvancedmaterials.com/en/csr/csr_summary.do (Refer to "Sustainabilty Steering Committee" for details

2. Does the company have a publicly stated commitment regarding the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a commitment within 2 years	Yes, and the commitment is focused on our own operations	Yes, and the commitment includes our own operations and the value chain	Yes, and the commitment includes our own operations and the value chain along with communities and society
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

http://www.hyosungadvancedmaterials.com/en/csr/economic_sustainability.do Refer to our CEO's statement at Ethcial Management Activities

3. Does the company have in place a code of conduct regarding each of the following sustainability topics?

	No, this is not a current priority	No, but we plan to have a code of conduct within two years	Yes, focused on employee conduct	Yes, focused on employees and suppliers	Yes, focused on employees, suppliers, and other business relationships
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

http://www.hyosungadvancedmaterials.com/en/others/policies_regulations.do. In case of suppliers, refer to 7. Supplier Code of Conduct available at http://www.hyosungadvancedmaterials.com/en/csr/win_win_management.do For employees we have our employee handbook.

4. Has the company appointed an individual or group responsible for each of the following sustainability topics?

	No one is specifically responsible for this topic	Yes, with limited influence on outcomes (e.g., limited access to internal information, limited decision-making authority)	Yes, with moderate influence on outcomes (e.g., has access to relevant information, reports to senior manager)	Yes, with direct influence of some outcomes (e.g., has access to relevant information, includes one or more senior manager with decision making rights	Yes, with direct influence at the highest levels of the organization (e.g., has access to relevant information, includes most senior members of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Our specialized committes for environment, human rights/labor/anticorruption are headed by C-Level executuves to directly report to the CEO. http://www.hyosungadvancedmaterials.com/en/csr/csr_summary.do (Refer to Sustainability Steering Commitee) In case of compliance the officer directly reports to the BOD http://www.hyosungadvancedmaterials.com/en/csr/economic_sustainability.do (Refer to Compliance Program)

5. Does the company have a formal structure(s) (such as a cross-functional committee) to address each of the following sustainability topics?

	No formal structure	Yes, and with limited influence on outcomes (e.g., limited access to internal information necessary to understand risks, poor representation from relevant departments or functions)	Yes, with moderate influence on outcomes (e.g., it includes representatives of some functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, reports to senior manager)	Yes, with direct influence on some outcomes (e.g., it includes representatives of functions, departments, or business units most relevant for addressing the risks concerned, has access to relevant information, it involves one or more members of senior management)	Yes, and with direct influence at the highest level of the organization (e.g., full access to relevant information, it involves members at highest level of organization)
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Optional comment

Prevention

6. Does the company have a process or processes to assess risk?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Refer to pages 23~24, 25~28, 11~12 of our Sustainabilty Report 2020 available at http://www.hyosungadvancedmaterials.com/en/csr/csr_report.do

7. Does the company have a due diligence process through which it identifies, prevents, mitigates, and accounts for actual and potential negative impacts on sustainability topics?

	No, this is not a current priority	No, but we are planning to develop one in the next two years	Yes, related to our own operations	Yes, related to our own operations and entire value chain and other business relationships
Human rights risks
Labour rights risks
Environmental risks
Corruption risks

Optional comment

Refer to pages 11~12 of our Sustainabilty Report 2020 available at http://www.hyosungadvancedmaterials.com/en/csr/csr_report.do

Concerns and grievance mechanisms

8. Are there any processes through which members of the company’s workforce can raise concerns about the company’s conduct related to human rights, labour rights, environment, or anti-corruption?

No, this is not a current priority

No, but we plan to within two years

Yes, we have an informal process (e.g., through supervisors, others)

Yes, we have a formal process

Optional comment

Refer to pages25~28 of our Sustainabilty Report 2020 available at http://www.hyosungadvancedmaterials.com/en/csr/csr_report.do

8.1. Please provide additional detail regarding the process(es) the company has through which members of the company’s workforce can raise concerns about the company’s conduct.

	No	Yes
Is the process communicated to all employees/workers in local languages?
Is the process available to non-employees (e.g., contractors, vendors, suppliers)?
Is the process confidential (e.g., whistleblowing process)?
Are there processes in place to avoid retaliation?
Can concerns be raised about suppliers or other business relationships (e.g., clients, partners, etc.)
Other (Please provide additional information)

Optional comment

Refer to pages25~28, 11~12 of our Sustainabilty Report 2020 available at http://www.hyosungadvancedmaterials.com/en/csr/csr_report.do Also our whistleblowing center : http://www.hyosungadvancedmaterials.com/en/others/report_index.do

9. Does the company provide or enable access to effective remedy to right holders / stakeholders where it has caused or contributed to the adverse impact?

	No process to enable remedy to stakeholders	Remedy available to some stakeholders (i.e., some geographies, employees only)	Remedy is available to all affected stakeholders	Remedy is available to all stakeholders, and suppliers are expected to have similar policies
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Lessons

10. How does the company capture lessons regarding each of the following sustainability topics?

	No lessons are regularly captured	Conducts root cause analyses/investigation of major incidents	Conducts root cause analyses/investigation and changes organizational policies, processes, and practices accordingly	Systematically conducts root cause analyses/investigation and leverages learnings to influence both internal and external affairs
Human Rights
Labour Rights / Decent Work
Environment
Anti-Corruption

Executive Pay

11. Is executive pay linked to performance on one or more of the following sustainability topics?

Optional comment

Are top management pay is linked to climate change, environmental performance. Also to HR-related KPI but not specifically for human rights or anti-corruption.

Board Composition

12. Percentage of individuals within the company’s Board / highest governance body by:

	Number/Percentage	Not applicable (Please provide additional information)
Total number of board members (#)	6
Male (%)	100
Female (%)	0
Non-binary (%)	0
Under 30 years old (%)	0
30-50 years old (%)	0
Above 50 years old (%)	100
From minority or vulnerable groups (%)	0
Executive (%)	50
Independent (%)	50

Optional comment

Refer to "The Board of Directors" at http://www.hyosungadvancedmaterials.com/en/ir/the_board_of_directors.do

Data Assurance

14. Is the information disclosed in this questionnaire assured by a third-party?

No assurance for any metrics

Limited assurance for minority of metrics (e.g., GHG emissions only)

Limited assurance for majority of metrics

http://www.hyosungadvancedmaterials.com/en/csr/csr_report.do Refer to pages 52~53

Reasonable assurance for minority of metrics

Reasonable assurance for majority of metrics

Other (Please provide additional information)

Optional comment

The assurance above covers only our sustainability report. All other documents and website materials are note assured.

Human Rights
Materiality / Saliency
1. Which of the following has the company identified as material human rights issues connected with its operations and/or value chain, whether based on their salience (i.e., the most severe potential negative impacts on people) or another basis?
Freedom of association and the effective recognition of the right to collective bargaining
Child labour
Forced labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)
Freedom of expression
Access to culture
Access to water and sanitation
Digital security / privacy
Rights of women and/or girls
Rights of indigenous peoples
Free, prior and informed consent
Rights of refugees and migrants
Other
Response
8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the human rights principles, including any challenges faced and actions taken towards prevention and/or remediation.
We have established remediation process for Human Rights Policy violations and distributed to all global sites to apply them in HR management system. The Policy defines the scope of the remediation. "Infringes on human rights laws of Korea and national law of our overseas affiliates, such as discrimination and workplace harassment, child labor, forced labor and human rights violations, as well as our non-compliance to our Code of Ethics and Human Rights Policy". Also, there is the specific procedure of resolution and remediation which includes trainings and education to prevent similar incidents, seperation of the victim, etc.

Labour

Commitment

1. Does the company have a policy commitment in relation to the following labour rights principles?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
2019
Forced labour
2019
Child labour
2019
Non-discrimination in respect of employment and occupation
2019
Occupational safety and health
2020
Working conditions (wages, working hours)

1.1. For each labour rights policy, is it:

	Aligned with international labour standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving labour rights expertise from inside and outside the company?	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following labour rights issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks /impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with this labour rights issue?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders, in particular workers' organizations, to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

4. Who receives training for the following labour rights issues?

	No training provided	Select employees	All employees	Contractors	Direct suppliers of the organization	Indirect suppliers of the organization	Other – such as partners, clients, etc.
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

5. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following labour rights issues?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Performance

6. What is the percentage of employees covered under collective bargaining agreements?

	Percent of employees (%)	Unknown
Employees covered under collective bargaining (%)	93

7. What is the percentage of employees in a trade union or other workers' organization?

	Percent of employees (%)	Unknown	Not applicable (Please provide additional information)
Employees in a trade union or on a worker committee (%)	93

8. In the course of the reporting period, what was the percentage of women in:

	Percent of women (%)	Unknown
Senior leadership level position	3
Non-executive board	0

9. What was the average ratio of the basic salary and remuneration of women to men (comparing jobs of equal value) during the reporting period?

	Salary ratio (%)	Unknown	Choose to not disclose
Women / Men (%)	100

Optional comment

10. In the course of the reporting period, how frequently were workers injured (injuries per hour worked)?

	Frequency of injury	Unknown	Choose to not disclose
Frequency of injury

Optional comment

Globally in the reporting period, we had 28 workers injured in total. However, we weren't able to provide how frequently workers were injured as we did not calculate injuries per hour worked throughout global sites.

11. In the course of the reporting period, what was the company’s incident rate?

	Incident rate	Unknown	Choose to not disclose
Incident rate	0.25

Response and Reporting

12. In the course of the reporting period, has the company been involved in providing or enabling remedy where it has caused or contributed to the adverse impact associated with the following labour rights issues?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Freedom of association and the effective recognition of the right to collective bargaining
Forced labour
Child labour
Non-discrimination in respect of employment and occupation
Occupational safety and health
Working conditions (wages, working hours)

Optional comment

During the course of the reporting period, there has been no violation of the topics mentioned above. However, we do have a remedy process in place for all the cases.

13. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the labour rights principles, including any challenges faced and actions taken towards prevention and/or remediation.

As all of our employees are guaranteed to pursue their labor union membership and activities at all global sites. Employees can join local and industrial unions outside of the company's labor unions. To this end, a labor union is organized in all of HAMC's global sites, and each business site's management transparently and regularly shares the company’s management status, manpower operation status, and as well as human rights and labor issues with all employees through business status briefing sessions and subsectional meetings according to position. We also hold regular quarterly company union meetings(Labor Union Committee) to discuss welfare, grievances, and health and safety issues between the company and the union for each business site. Any complaints received regarding labor rights principles are managed throughout the company and are continuously monitored for improvements. We have provided human rights education including discrimination to all employees. Particularly for HR staff additional education was provided. We also carry out human rights assessment annually to prevent possible human rights violations across our value chain.

Environment

Commitment

1. Does the company have a formal policy on the following environmental topics?

	No, and we have no plans to develop a policy	No, but we plan to in the next two years	Yes, included within a broader policy	Yes, articulated as a stand-alone policy	Not applicable (Please provide additional information)
Climate Action
2020
Water
2020
Oceans
2020
Forests / Biodiversity / Land Use
2021
Air Pollution
2020
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
2020
Energy & Resource Use
2020

Optional comment

http://www.hyosungadvancedmaterials.com/kr/others/policies_regulations.do

1.1. For each environmental policy, is it:

	Aligned with international environmental standards?	Publicly available?	Approved at most senior level of the company?	Applied to the company’s own operations?	Applied to the company’s supply chain and/or other business relationships?	Developed involving environmental expertise from inside and outside the company?	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Prevention

2. In the course of the reporting period, has the company engaged with affected stakeholders or their legitimate representatives in relation to the following environmental issues?

	No engagement on this topic	To better understand the risks/ impacts in question	To discuss potential ways to prevent or mitigate the risks/ impacts in question	To agree on a way to prevent/ mitigate the risks/ impacts in question	To assess progress in preventing/ mitigating the risks/ impacts in question	To collaborate in the prevention/ mitigation of the risks/ impacts in question	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

3. What type of action has the company taken in the reporting period with the aim of preventing/mitigating the risks/impacts associated with these environmental topics?

	Provided internal training/ capacity building for the direct workforce	Building capacity among relevant business relationships (e.g., partners, suppliers, clients, etc.)	Conducting an audit process and/or corrective action plan	Collective Action with peers or other stakeholders to address the issue	Collaboration with governmental or regulatory bodies	Other (Please provide additional information)	No action within reporting period
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

4. How does the company assess progress in preventing/mitigating the risks/impacts associated with the following environmental topics?

	No monitoring of progress	Review issues on ad-hoc basis	Set annual targets/ goals, track progress over time (internal programs only)	Set annual targets/ goals, track progress over time (internal and external programs)	Other (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

4.1. For each environmental topic in which the company sets timebound goals / targets, what kind of targets has the company set?

	Description of targets (e.g., what is the target, absolute vs. intensity, externally verified, on track, etc.)
Climate Action	HAMC established the Greenhouse Gas Vision 2030' in 2018 and set a goal to reduce greenhouse gas emissions by 19.7% in Korea by 2030 compared to 2017.
Energy & Resource Use	YoY usage rate of renewable energy, 110%, HAMC established the Greenhouse Gas Vision 2030' in 2018 and set a goal to reduce greenhouse gas emissions by 19.7% in Korea by 2030 compared to 2017. please see the HAMC 2020 SR page on 7. http://www.hyosungadvancedmaterials.com/resources/front/kr/files/SR_AM_2020_kr.pdf
Water	Water use intencity (water usage/sales), please see the HAMC 2020 SR page on 45. http://www.hyosungadvancedmaterials.com/resources/front/kr/files/SR_AM_2020_kr.pdf
Forests / Biodiversity / Land Use
Air Pollution	Air Pollution Emission intencity (amount of Air Pollution Emission/sales), please see the HAMC 2020 SR page on 45. http://www.hyosungadvancedmaterials.com/resources/front/kr/files/SR_AM_2020_kr.pdf
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)	Rate of recycling Waste (Domestic), 88%, please see the HAMC 2020 SR page on 31 and 45. http://www.hyosungadvancedmaterials.com/resources/front/kr/files/SR_AM_2020_kr.pdf
Oceans

Optional comment

Refer to SR 2020 p7, 8, 44, 45, 46 (http://www.hyosungadvancedmaterials.com/resources/front/kr/files/SR_AM_2020_kr.pdf)

4.2. For each environmental topic in which the company sets timebound goals / targets, how is progress against target / goal tracked?

	Progress is reviewed against goals annually or more frequently	Progress is reported internally to the most senior level	Progress is reported externally	Other (Please provide additional information)
Climate Action
Energy & Resource Use
Water
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Oceans

5. In the course of the reporting period, has the company been involved in providing or enabling remedy for any actual impacts associated with the following environmental issue(s)?

	Yes	No	Choose to not disclose	Not applicable (Please provide additional information)
Climate Action
Water
Oceans
Forests / Biodiversity / Land Use
Air Pollution
Waste (e.g., chemical spills, solid waste, hazardous, plastic, etc.)
Energy & Resource Use

Climate Action

6. What were the company’s gross global greenhouse gas emissions for the reporting period?

Scope 1 Emissions

Full

None

Emissions (tCO2e)

139768

Scope 2 Emissions

Full

None

Emissions (tCO2e)

824461

Scope 3 Emissions

Full

Partial

None

Emissions (tCO2e)

426009

Optional comment

reper to CDP

7. What percentage of the company's revenue was invested in R&D of low-carbon products/services during this reporting period?

Percent of revenue (%)

0.001

Unknown

Not applicable (Please provide additional information)

Optional comment

please see the CDP report C4.5a. (https://www.cdp.net/en/formatted_responses/responses?campaign_id=74241094&discloser_id=896568&locale=en&organization_name=Hyosung+Advanced+Materials+Corp&organization_number=832325&program=Investor&project_year=2021&redirect=https%3A%2F%2Fcdp.credit360.com%2Fsurveys%2F2021%2Fdbbr64mv%2F142252&survey_id=73557641)

8. Has the organization acted to support climate change adaptation and resilience?

We have taken action to increase organization-wide resilience to climate change

We have taken action to increase resilience in our supply chains

We have taken action to increase resilience in the communities in which we operate

We have provided funding for climate change adaptation and resilience initiatives and projects

We have not taken actions to build climate change resilience in the reporting period

Other (Please provide additional information)

Unknown

Energy / Resource Use

9. Please report the company's renewable energy consumption as a percentage of total energy consumption in the reporting period.

% of total energy consumption

0.17

Unknown

Optional comment

renewable energy(solor) : 4092.4MWh Total energy consumption : 2,458,164MWh

Technology

10. What percent of the company's revenue came from environmentally friendly products / services during this reporting period?

Percent of total revenue (%)

0.38

Hyosung Advanced Materials develops products that enhance resource efficiency to develop new markets and expand business. By reducing the amount of resources used in the production process, we minimize the environmental impact of our production activities and customers’ product use phase.

Unknown

Not applicable (Please provide additional information)

Sector-specific: Water

12. Please provide details regarding the company's water withdrawal and consumption (own operations) during the reporting period.

Water withdrawal (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	7891.249
Groundwater:	0
Surface water:	8.461
Rainwater:	0
Wastewater:	3291.534
Percentage of water withdrawn in regions with high or extremely high water stress (%)	50

Water consumption (volume of water in megaliters):

	Mega-liters	Unknown	Not applicable (Please provide additional information)
Total	4599.715
Groundwater:
Surface water:
Rainwater:
Wastewater:
Percentage of water consumed in regions with high or extremely high water stress (%)	41

13. Please provide details about the company’s water intensity of products in regions with high or extremely high water stress.

Water intensity of products (cubic meter/$):

Unknown

Not applicable (Please provide additional information)

Optional comment

Our plants in Vietnam and China operations are located in regions where there are high water stress. Water intensity in these areas are 2.865x10^(-7) cubic meter / $

Sector-specific: Air pollution

17. Where applicable, please report the company's emissions of the following pollutants during the reporting period.

	Emissions (tCO2e)	Unknown	Not applicable (Please provide additional information)
NOx	277
SOx	109
Volatile Organic Compounds (VOC)
Hazardous air pollutants (HAP)
Particulate matter (PM10)
Persistent organic pollutants (POP)
Other (please specify in text box)
PM

Optional comment

HCFC(R-22) : 0

Sector-specific: Waste

18. Please report the company's total weight of waste generated in metric tonnes during the reporting period.

Waste Generated (t)

49873

Unknown

Not applicable (Please provide additional information)

Optional comment

19. Please report the percentage of the company's waste that was hazardous waste (i.e., hazardous waste ratio) during the reporting period.

Hazardous Waste Ratio (%)

49.5

Unknown

Not applicable (Please provide additional information)

Optional comment

Refer to SR 2020 p46

20. Please report the company's estimated metric tonnes of single-use plastic consumed wherever material along the value chain during the reporting period.

Single-use plastics (tonnes)

Unknown

Not applicable (Please provide additional information)

Overall Environment

21. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the environment principles, including any challenges faced and actions taken towards prevention and/or remediation.

To realize our green management vision, "Becoming an Eco-friendly Company Leading the Better Life of Humanity," Hyosung Advanced Materials has established goals based on the three strategies: Zero Emission, Zero Waste, Zero Impact. In addition, we are deriving detailed action plans to support these strategies and implementing them to realize the goals. HAMC has a system to evaluate and manage environmental performance, such as GHGs emissions, discharge of water and air pollutants permissible to standards, and prevent legal violation. KPIs on environmental performance are registered in the individual performance KPIs of CTO/CPO (Chief Technology/Product Officer), plant managers, and green management personals. These KPIs are used to evaluated such employee’s individual performance. 1. In Jeonju plant, we have installed a mixing condenser, a new treatment facility, to reduce emissions of VOCs (volatile organic compounds), which are air pollutants that cause global warming and odor. Not only that, we have dissolved VOCs generated during the production process, in solvents liquifying them in order to reduce air pollution and odor gas emissions to the atmosphere. 2. Ulsan plant has installed a chemical pretreatment plant (collection - neutralization - oxidization - chemical reaction - clarification) that is capable of treating 2,000tons/day, to pre-treat highconcentrated wastewater effectively before discharging it to the main water treatment. 3. In the case of the Vietnam plant, a cooling tower that has strainer filter and membranes that enable the reverse usage of the osmosis phenomenon. By adding a highconcentrated solution, this water treatment allows only pure water molecules to be reused as Blown-down water. Investment of 625 million KRW has been carried out for this cooling tower in 2021 recycling 640,000 tons of water annually. Refer to SR report p.31, 32

Anti-corruption

Commitment

1. Does the company have an anti-corruption compliance programme?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes

2022

2. Does your company have policies and recommendations for employees on how to act in case of doubt and/or in situations that may represent a conflict of interest, e.g. with regard to gifts and hospitality, donations, sponsorship, or interactions with public officials?

No, and we have no plans to develop a policy

No, but we plan to in the next two years

Yes, included within a broader policy

Yes, articulated as a stand-alone policy

Optional comment

Employee handbook

Prevention

3. Who receives training on anti-corruption and integrity?

3.1. How often is such training provided?

	One time only	Every year	Every two or more years	We do not collect this data
All employees
Select employees
Contractors
Direct suppliers of the organization
Other – such as partners, clients, etc.
Indirect suppliers of the organization

4. Does the company monitor its anti-corruption compliance programme?

No, we do not monitor the anti-corruption compliance programme

Review issues on ad-hoc basis

Yes, through internal employee self-evaluations

Yes, through automated controls monitoring

Yes, through external independent monitoring

Yes, through other mechanisms

Response and Reporting

5. Please report the company's total number and nature of incidents of corruption during the reporting year.

	Number of incident(s)	Unknown	Choose to not disclose
Confirmed during the current year, but related to previous years	0
We have none confirmed from previous years
Confirmed during the current year, and related to this year	1
Embezzlement

6. Within the reporting period, what measures has the company taken to address suspected incidents of corruption independently or in response to a dispute or investigation by a government regulator?

Initial case assessment

Internal investigation

Review by risk / ethics committee

Review by board of directors

External audit / review

Other (please provide additional information)

Not applicable/no incidents in the reporting period

7. Does your company engage in Collective Action against corruption?

No, it is not an immediate business priority

No, but we plan to in the next two years

Yes (please explain)

We participated in BIS Summit by UNGC Korea and BEST ESG FORUM by Korea IPS 2 years in a row, and and agreed to make an anti-corruption environment and contribute in achieving a fair and transparent society.

8. Briefly describe practical actions the company has taken during the reporting period and/or plans to take to implement the anti-corruption principle, including any challenges faced and actions taken towards prevention and/or remediation.

To prevent from having any issues with our business partners in regard to transactions, money, and/or gifts, and etc., we established that the process for sensitive transactions, money and/or gifts received from business stakeholders, and bribes and gifts provided by the company to the business stakeholders, that clearly states the decision-making rules and process. The process requires employees to clearly state the provider and the contents of the sensitive transaction. We have applied this process to all overseas business site in accordace with the laws and regulations of each region.