Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Board Independence and Expertise
• Employee Safety and Health
• Job Creation and Talent Acquisition
• Business Performance and Portfolio
• Strategic Corporate Social Responsibility
• Employee Empowerment Training
• Wastewater, Waste, and Hazardous Chemical Management
• Equal Opportunity and Diversity Expansion
• Prohibition of Unfair Trade and Compliance with Related Laws
• Responsible Raw Material Procurement
• New Product Development and Sustainability Strategy
• Human Rights Assessment Results
• Energy Consumption Reduction and Renewable Energy Use
• Water Usage Management and Water Source Protection
• Building a Trust-Based Cooperative Labor-Management Relationship
• Strengthening Information Security and Cybersecurity
• Customer Satisfaction and Service Quality Enhancement
• Prohibition of Child Labor and Human Rights Protection
• Protection of Biodiversity around Business Sites
• Prohibition of Forced Labor and Human Rights Protection

Environmental Achievements

• Reduced CO2 emissions by 9,457 tons through various initiatives including Air Recycling System and the adoption of a non-solvent lamination process.
• Achieved 82% recycling rate for raw materials.
• Developed and launched Eco-Sobre, a biodegradable food pouch.
• Obtained G1 rating for green bonds.
• Reduced NOx emissions to 150ppm through the installation of SNCR facilities.

Social Achievements

• Launched various employee well-being programs, including refresh leave and welfare points.
• Maintained a high regular employee ratio (98%).
• Implemented a fair performance evaluation and reward system.
• Selected as a '2018 Korea's Best Job Creation Company' by the Ministry of Employment and Labor.
• Actively created jobs for socially disadvantaged groups.

Governance Achievements

• Strengthened the independence and expertise of the board of directors.
• Implemented a transparent compensation system for directors.
• Established a whistleblowing system for ethical concerns.
• Maintained a high board meeting attendance rate (93%).
• Consistently paid dividends to shareholders.

Climate Goals & Targets

Environmental Challenges

• Rising prices of emission allowances.
• Strengthening environmental regulations.
• Increased demand for low-carbon and eco-friendly products.
• Potential risks from climate change (acute and chronic).
• EU carbon border tax.
• Supply chain disruptions.

Mitigation Strategies

• Developed a systematic plan for managing future emissions.
• Established internal trading mechanisms for emission allowances.
• Invested in upgrading energy-efficient equipment.
• Developed alternative sourcing strategies.
• Developed eco-friendly products and processes.
• Actively participated in global initiatives (TCFD, CDP).
• Diversified supply chain channels.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Compliance with the Fair Trade Act
• Ethical sourcing of raw materials
• Supplier sustainability requirements
• Regular supplier assessments

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Landslides
• Changes in natural ecosystems

Transition Risks

• Strengthening environmental regulations
• Increased demand for low-carbon products
• EU carbon border tax

Opportunities

• Development of energy-efficient products
• Expansion into new green businesses (e.g., secondary battery materials)

Reporting Standards

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

Certifications: ISO 9001, ISO 14001, ISO 45001, FSSC 22000, USDA

Third-party Assurance: Shinhan Accounting Firm

UN Sustainable Development Goals

• Goal 3: Good Health and Well-being
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 16: Peace, Justice and Strong Institutions

Dongwon Systems' initiatives contribute to these SDGs through various environmental, social, and governance programs.

Sustainable Products & Innovation

• Eco-Sobre biodegradable food pouch
• Lightweight PET bottles
• Lightweight glass bottles
• Various other eco-friendly packaging materials

Awards & Recognition

• 2018 Korea's Best Job Creation Company
• 2016 Labor-Management Culture Award
• 2015 Green Management Award
• 2021 Next-Generation World-Class Product (functional flexible packaging)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Environmental Management
• Product Safety
• Employee Well-being
• Supply Chain Management
• Governance

Environmental Achievements

• Reduced CO2e emissions by 979 tons
• Reduced plastic usage by 776 tons
• Achieved 83% recycling rate for raw materials
• Developed eco-friendly biodegradable packaging (Eco-Sobre)
• Obtained Green Technology Certification for solvent-free composite packaging manufacturing technology
• Obtained GRS and RCS certifications for recycled material packaging

Social Achievements

• Launched various employee well-being programs (Refresh vacation, welfare points, etc.)
• Maintained a high regular employee ratio (97.6%)
• Average employee tenure of 12.1 years
• Reduced industrial accidents compared to the previous year
• Implemented various diversity and inclusion initiatives

Governance Achievements

• Established a robust ESG management system with board oversight
• Implemented an ethics hotline and compliance training programs
• Achieved 100% board attendance rate
• Issued a green bond with a G1 rating

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (extreme weather, natural disasters)
• Strengthening environmental regulations
• Increased plastic usage restrictions
• EU carbon border tax
• Growing demand for low-carbon and eco-friendly products
• Supply chain disruptions

Mitigation Strategies

• Strengthened business continuity plans
• Invested in greenhouse gas reduction facilities
• Developed eco-friendly new materials
• Optimized production bases and upgraded energy-efficient equipment
• Developed and applied eco-friendly processes
• Increased the use of eco-friendly certified raw materials
• Diversified supply chain channels

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Ethical sourcing of raw materials
• Supplier selection and evaluation based on internal criteria
• Support for supplier improvement
• Code of conduct and sustainability requirements

Climate-Related Risks & Opportunities

Physical Risks

• Flooding
• Landslides
• Changes in natural ecosystems

Transition Risks

• Strengthening environmental regulations
• Increased plastic usage restrictions
• EU carbon border tax
• Growing demand for low-carbon and eco-friendly products

Opportunities

• Development of eco-friendly products
• Expansion into new green businesses (e.g., secondary battery materials)

Reporting Standards

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

Certifications: ISO 14001, ISO 45001, ISO 9001, ISO 22000, FSSC 22000, USDA Biobased Product Label, FSC, GRS, RCS

Third-party Assurance: Shinhan Accounting Firm (Third-party verification)

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 10
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16

The report outlines how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Eco-Sobre biodegradable packaging
• Lightweight PET bottles
• Eco-friendly glass bottles for beer
• Recyclable and recycled packaging

Awards & Recognition

• 2018 Korea's Best Job Creation Company
• 2022 Green Finance Excellent Company
• 2021 Next-Generation World-Class Product (functional flexible packaging)
• President's Award at the 16th Korea New Growth Management Awards

Environmental Metrics

ESG Focus Areas

• Sustainable Product/Service Design
• Corporate Ethics and Compliance
• Safety and Health Management
• Sustainability Portfolio Diversification through New Growth Engines
• Direct/Indirect Efforts to Reduce GHG Emission

Environmental Achievements

• Invested KRW 3,391 million on energy facilities that can reduce greenhouse gases (2023).
• Reduced GHG emissions from 279,076 tCO2-eq in 2022 to 261,349 tCO2-eq in 2023.
• Obtained GRS and RCS certifications by utilizing over 50% recycled materials in packaging.
• Reduced greenhouse gas emissions by 107,495 kg CO2eq compared to existing process by applying solvent-free adhesive lamination process technology.

Social Achievements

• Reduced industrial accidents from 31 in 2022 to 25 in 2023.
• Established a safety and health management system centered on work sites.
• Conducted ethics trainings for all employees and mandated the signing of an ethics agreement with partners.
• Created jobs for the socially underprivileged, providing a subsidy of 37 million KRW to 33 employees (2023).

Governance Achievements

• Established the Sustainability Management Committee within the Board of Directors (March 2024).
• Implemented anti-corruption regulations within the board of directors and provided a report on the enforcement of the code of ethics for independent directors.
• Introduced an electronic voting system starting from the 43rd Annual General Meeting of Shareholders (2023~).

Climate Goals & Targets

Environmental Challenges

• Global environmental instability marked by the Russia-Ukraine war and the Israel-Hamas conflict.
• Increasing demands for carbon neutrality from global corporations.
• Printing defects in can labels.
• PET bottle bottom damage.

Mitigation Strategies

• Entered the secondary battery business to secure sustainable new growth engines.
• Developed eco-friendly packaging materials and increased investment in reducing environmental pollution.
• Improved aged equipment and improved energy efficiency within facilities.
• Improved printing defect rate by removing internal foreign substances and resetting cleaning cycle.
• Prepared measures to prevent recurrence of PET bottle damage by improving basic design and formability and strengthening preform quality.

Supply Chain Management

Supplier Audits: 46 main partner companies surveyed annually (ESG regular evaluation)

Responsible Procurement

• ESG Code of Conduct for partner companies
• Green procurement policy
• Promoting purchase of ethically sourced raw materials

Climate-Related Risks & Opportunities

Physical Risks

• Increased frequency and intensity of extreme weather events
• Long-term changes in climate patterns

Transition Risks

• Mandatory disclosure of greenhouse gas emission levels
• Fluctuations in carbon emission prices
• Increased demand for eco-friendly certified raw materials

Opportunities

• Eco-friendly packaging material development
• Development of low-power/low-carbon emission technologies
• Increased sales from higher adoption of eco-friendly packaging materials

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD, UNGC

Certifications: ISO 9001, ISO 14001, ISO 22000, KOSHA 18001, FDA/IMS, GRS, RCS, ISO 45001, IATF 16949

Third-party Assurance: Shinhan Accounting Corporation (RSM)

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 14
• Goal 15
• Goal 16
• Goal 17

Various activities in line with the direction of sustainable management and the detailed goals of the SDGs.

Sustainable Products & Innovation

• Eco-friendly packaging materials (e.g., solvent-free pillow bags, uni-material packaging)
• Secondary battery materials (cathode foil, cylindrical cans, cell pouches)