Climate Change Data

Environmental Metrics

ESG Focus Areas

• Green Innovation
• Proud Workplace
• Responsible Growth
• Do the Right Thing

Environmental Achievements

• Launched the world’s first all-electric compact track loader (T7X) in 2022 and the first all-electric skid-steer loader (S7X) in 2024.
• Developed Korea’s first ever commercialized hydrogen forklift in January 2024.
• Introduced new electric telehandlers and skid-steer loaders that use biofuel.
• Reduced waste per produced unit by 11% to 232kg/unit in 2023 compared to 2022.
• Achieved a 48% increase in REMAN product units in 2023 compared to 2022.
• 7 sites acquired ISO 14001 certification.

Social Achievements

• Strengthened sustainable supply chain by conducting first regular ESG assessment of partners.
• Established a global ESG committee to manage ESG KPIs.
• Established global DE&I vision and goals.
• Launched WeGrow Program (LEAD Event & Powerful WE).
• 96% Code of Conduct training completion rate.
• 100% of grievances resolved.
• Designated as a “family-friendly certified company” by South Korea’s Ministry of Gender Equality and Family.

Governance Achievements

• Established global ESG data management systems.
• Established a global ESG committee that manages ESG key performance indicators (KPIs).
• Incorporated ESG KPIs into the MBOs of 25 global executives.
• Improved ESG management system by establishing an ESG Team.
• Strengthened shareholder-friendly policy.
• Implemented an advanced dividend system.

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change related risks (physical and transitional)
• Increased GHG reduction mandates
• Slowdown of global renewable energy supply
• Changing weather patterns
• Increased demand for public disclosure of climate change action goals and activities
• Increased energy costs due to extreme weather events
• Potential fines or legal fees for failing to disclose climate change response information or meet reduction targets
• Slower revenue growth due to decreased demand for traditional products and increased competition from sustainable products
• Difficulties in scaling up renewable energy use at operation sites

Mitigation Strategies

• Developed alternative sourcing strategies
• Established a climate action framework
• Set and track mid- to long-term climate action targets
• Implemented measures to manage energy consumption (process energy efficiency improvement, green energy transition, renewable energy sources)
• Set and track mid- to long-term targets for product sustainability
• Integrated management of financial and non-financial risks
• Manage product sustainability related risks throughout the product lifecycle
• Comply with local regulations on environmental impact of products
• Expanding the lineup of low- and zero-carbon products
• Monitoring renewable energy markets/regulations
• Considering renewable energy to meet 2030 GHG reduction goals
• Advanced energy usage monitoring with an Energy Management System (EMS)
• Identifying and implementing energy savings with a site energy audit
• Gradual replacement of older equipment and optimization of operations
• Reviewing and implementing renewable energy deployment at the site
• Applying energy efficiency items throughout the production process
• Continued R&D of alternative energy application technology for products
• Expanding the electric product lineup
• Continued R&D to expand the use of environmentally friendly fuels (e.g., application of hydrotreated vegetable oil (HVO))

Supply Chain Management

Supplier Audits: 30 suppliers assessed via SAQ in 2023

Responsible Procurement

• Supplier Code of Conduct
• ESG assessment of suppliers
• Shared growth policy

Climate-Related Risks & Opportunities

Physical Risks

• Increased energy costs due to extreme weather events

Transition Risks

• Increased GHG reduction mandates
• Increased demand for public disclosure of climate change action goals and activities
• Increased production efficiency by adopting eco-friendly, high-efficiency equipment and processes

Opportunities

• Opportunities for utility cost savings due to long-term decline in green power unit costs
• Increased opportunities as internal combustion engine equipment regulations drive demand for sustainable products
• Increased demand and Willingness to Pay (WTP) for our electrification and hydrogen products

Reporting Standards

Frameworks Used: GRI Standards 2021, ISO 26000, SASB guidelines

Certifications: ISO 14001, ISO 45001, ISO 9001

Third-party Assurance: DNV Business Assurance Korea, Ltd.

Sustainable Products & Innovation

• T7X
• S7X
• Electric mini excavators
• Hydrogen forklift
• Autonomous lawn mower
• Autonomous electric articulating tractor

Awards & Recognition

• CES Innovation Awards
• CMME Awards
• BIG SEE Award
• Fast Company World Changing Ideas
• Green Industry Pros Awards
• Equipment Today Awards
• Rental Magazine Awards
• Construction Equipment Awards
• Compact Equipment Awards
• Heavy Equipment Guide Awards
• Roads & Bridges Awards
• AEM Advocacy Award
• LACP Spotlight Awards
• National Investors Hall of Fame