Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Reduced 3,351 tons of CO2 in 2021 through various energy efficiency improvements.
• Purchased 24GWh of renewable energy in 2022, resulting in an 11,000-ton CO2 reduction.
• Achieved Zero Waste to Landfill (ZWTL) Gold certification from UL Solutions for all Korean operations.
• Carbon Trust carbon footprint and water footprint certifications received for all silicon wafer products.

Social Achievements

• Not disclosed

Governance Achievements

• Established an internal carbon pricing mechanism to facilitate low-carbon investments.
• Increased the ratio of ESG-related KPIs reflected in management performance evaluation to 30% in 2021.

Climate Goals & Targets

Environmental Challenges

• Increased production costs due to stricter GHG regulations and carbon pricing.
• Increased raw material procurement costs due to rising carbon prices in supplier locations.
• Increased electricity costs due to energy transition in the power generation sector.

Mitigation Strategies

• Setting a Net Zero target for Scope 1 and 2 emissions by 2040.
• Transitioning to 100% renewable energy by 2040 (75% by 2030).
• Engaging with key suppliers to promote GHG emission reduction.
• Utilizing long-term Power Purchase Agreements (PPAs) for renewable energy.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Monitoring carbon-related risk exposure of key suppliers.
• Operating programs to support key suppliers in setting and implementing GHG emissions reduction targets.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Sea level rise
• Wildfires
• Droughts
• Extreme temperatures
• Water stress
• Tropical cyclones

Transition Risks

• Increased carbon costs due to stricter regulations.
• Increased raw material costs due to carbon regulations in the supply chain.
• Increased electricity costs due to energy transition.

Opportunities

• Expansion into the next-generation power semiconductor wafer market.
• Increased revenue opportunities through low-carbon product innovation.
• Cost reduction by renewable energy transition.

Reporting Standards

Frameworks Used: TCFD

Certifications: Carbon Trust Carbon Footprint Certification, UL Solutions ZWTL Gold Certification

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Silicon carbide wafers for power semiconductors

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Energy Management
• Water Resource Management
• Employee Competency Development
• Employee Health
• Safety Culture
• Sustainable Supply Chain
• Quality Management
• Ethics Management
• New Business Exploration/Business Diversification
• Human Rights
• Stakeholder Engagement
• Governance

Environmental Achievements

• Achieved 99% waste recycling rate in 2021
• Reduced greenhouse gas emissions by 3,351 tons in 2021 through various initiatives
• Obtained Carbon and Water Footprint certifications for all products
• Achieved ZWTL Gold certification for all factories
• Increased renewable energy share to 18% in 2022

Social Achievements

• Completed construction of 'Happy Building' to improve employee well-being
• Launched 'Growing College' program for junior engineers
• Implemented various health promotion programs for employees
• Won Grand Award at 2021 True Company Award for employing the disabled
• Implemented various programs to support work-life balance

Governance Achievements

• Revised board of directors regulations to expand ESG management strategies
• Issued green bonds worth KRW 41 billion
• Enacted governance charter in 2021
• Implemented an ESG checklist for investment decisions
• Established a voluntary fair trade compliance program

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including higher carbon costs and physical risks
• Supply chain disruptions
• Securing global talents
• Maintaining high quality standards
• Ensuring ethical management and compliance

Mitigation Strategies

• Established Net Zero 2040 target
• Joined RE100 initiative
• Implemented various energy-saving and water-saving initiatives
• Developed alternative sourcing strategies
• Strengthened ESG management system
• Implemented various training programs
• Established communication channels with stakeholders
• Developed a system-based quality LoD
• Established Code of Ethics and anti-corruption policies

Supply Chain Management

Supplier Audits: 10 companies (2021)

Responsible Procurement

• Fair transaction agreement
• Compliance with Subcontracting Act
• Partner companies’ code of conduct
• ESG evaluation of partner companies

Climate-Related Risks & Opportunities

Physical Risks

• River flooding
• Sea level rise

Transition Risks

• Higher carbon costs
• Higher raw material and electricity prices

Opportunities

• Increased demand for SiC wafers
• Cost savings from renewable energy

Reporting Standards

Frameworks Used: GRI Standards Core Option, UN SDGs, SASB, ISSB, TCFD

Certifications: ISO 45001, IATF 16949:2016, ISO 9001:2015, ISO 27001, ZWTL Gold, Carbon Footprint, Water Footprint

Third-party Assurance: Korea Management Registrar (KMR), LRQA

Sustainable Products & Innovation

• Low power, high efficiency wafers

Awards & Recognition

• Excellent Award in ‘Gyeongbuk Energy Grand Award’
• Grand Award at 2021 True Company Award
• ZWTL Gold certification