Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change
• Green Energy
• Green Recycling
• Green Hydrogen
• Safety
• Health
• Governance
• Shared Growth
• Social Contribution

Environmental Achievements

• Reduced GHG emissions by 15% compared to 2018 (2.46M tCO2-eq in 2020)
• Reduced waste generation by 16% compared to the previous year
• Achieved a 159% surplus in resource circulation performance management (Q CELLS Division)
• Declared 2050 Net Zero Roadmap
• Participation in K-RE100
• First in Korea to achieve Level 1 in the “Carbon Certificate for Solar Module System” (Q CELLS Division)
• First Korean chemical company to acquire the global CTS certification for carbon energy management (Chemical Division)
• Commercialization of Plastics-to-Chemicals (PTC) technologies
• Development of biodegradable plastic technologies
• Recycling of solar panels
• Secured materials and parts technology for the next-generation “Anion Exchange Membrane (AEM)” water electrolysis system (Chemical Division)

Social Achievements

• Win-Win Growth Index satisfactory in 2020
• KRW 5.5 billion total donations in 2020
• 13,854 beneficiaries of social contribution activities in 2020
• 757 hours of employee volunteer activities in 2020
• Established countermeasures against COVID-19 for prevention at all workplaces
• Operation of sports teams for people with disabilities
• Management of curriculum and fieldwork at “Hanwha Eco School”
• Created a win-win cooperation fund worth KRW 58 billion
• Signed “Fair Trade Agreements” with business partners
• Various programs for employee work-life balance (e.g., flexible work hours, parental leave, childcare support)

Governance Achievements

• Established the ESG Committee under the Board of Directors (May 2021)
• Appointed foreign and female outside directors
• First in the chemical and energy industry to acquire both Compliance Management System (ISO 19600) and Anti-Bribery Management System (ISO 37001) certifications (December 2020)
• Introduced the “electronic voting system” to strengthen shareholders’ rights
• Implemented the shareholder proposal system for shareholder-friendly management

Climate Goals & Targets

Environmental Challenges

• Climate change risks (e.g., extreme weather, regulatory changes, market shifts)
• Supply chain disruptions
• COVID-19 pandemic

Mitigation Strategies

• 2050 Net Zero Roadmap
• Investment in eco-friendly technologies and renewable energy
• Development of alternative sourcing strategies
• COVID-19 countermeasures (e.g., work-from-home options, hygiene protocols, employee support programs)

Supply Chain Management

Responsible Procurement

• Guidelines on the Purchase and Management of Eco-friendly Products
• Environmental safety assessment before registering new business partners
• Fair Trade Agreements with business partners

Climate-Related Risks & Opportunities

Physical Risks

• Damage to plants and infrastructure due to extreme weather
• Increased power usage due to rising temperatures

Transition Risks

• Strengthening of plastic regulations
• Introduction of carbon tax
• Increased demand for energy efficiency
• Increased demand for ESG disclosure

Opportunities

• Transition to low-carbon and renewable energy
• Market changes according to climate change
• Development of eco-friendly products and technologies
• Expansion of green hydrogen industry

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UNGC, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 19600, ISO 37001, ISO 22301 (Sejong Plant), Carbon Footprint (CFP) certification (France), Carbon Trust Standard (CTS) certification (Chemical Division)

Third-party Assurance: DNV Business Assurance Korea, Deloitte Anjin LLC

UN Sustainable Development Goals

• Goal 1
• Goal 4
• Goal 7
• Goal 8
• Goal 12
• Goal 13
• Goal 15
• Goal 17

Various initiatives contribute to these goals through environmental protection, social contribution, economic development, and sustainable management practices.

Sustainable Products & Innovation

• Eco-DEHCH plasticizer
• Bio-based plastics
• Perovskite tandem solar cells
• Green hydrogen technologies

Awards & Recognition

• Korea IR Awards – Selected as the ‘IR Excellent Enterprise’ (2020)
• JoongAng ESG Management Awards – Awarded the ‘Excellent Performer’ in Energy and Materials sectors (2021)
• Yeosu Industrial Complex Safety Management Excellence Scorecard – Awarded the ‘Top Prize’ (Yeosu plant) (2021)
• Environment Management System – Selected as the ‘Top Performer’ (2019)
• IR52 Jang Yeong-sil Award (Eco-DEHCH) (2018)
• 2018 Top Prize for ‘Educational Contributions’ (2018)
• PV Module Reliability Scorecard – Selected as the 'Top Performer’ for 6 consecutive years (2021)
• Korea Consumers Awards – Selected as the ‘Global Best Company’ for 4 consecutive years (2021)
• Selected as the ‘Top Brand PV’ for 8 consecutive years in Europe, and 6 consecutive years in Australia (2021)
• Germany’s Life & Living Awards – Selected as the ‘Germany's most popular provider’ in solar technology for 2 consecutive years (2021)
• Highest Reputation Award – Selected as the ‘No.1 Enterprise’ in electricity industry for 2 consecutive years (2020)
• Awarded for ‘Disaster Response and Training for Safe Korea’ (2018)
• Selected as the ‘Korea’s Best Company’ for ‘Employment and Labor’ (2018)
• Intersolar Award (2018)
• Awarded for ‘Environmental Preservation’ (2020)
• Awarded the ‘Top Prize’ For Excellent Green Office (2019)

Environmental Metrics

ESG Focus Areas

• Climate Change
• Safety
• Environmental Management
• Human Rights and Diversity
• Compliance and Ethical Management

Environmental Achievements

• Reduced greenhouse gas emissions by 27,756 tCO2-eq in 2022 through energy efficiency improvements, low-carbon energy use, and building energy efficiency improvements.
• Secured approximately 68,410 MWh of renewable energy in 2022 through green premium procurement.
• Achieved GRS certification for rPE (recycled polyethylene) material.
• Completed carbon footprint certification (CFP) for all solar module products.

Social Achievements

• Implemented a safety management system, achieving ISO 45001 certification across all business units.
• Launched the 'Hanwha Motive' electric vehicle charging business.
• Strengthened safety leadership through Safety Town Hall meetings and VFL (Visible Felt Leadership) activities.
• Introduced a new personnel system with a horizontal organizational culture, including unified job titles and the abolition of tenure limits.

Governance Achievements

• Established an ESG committee under the board of directors.
• Developed and distributed compliance guidelines and checklists.
• Implemented a compliance program (CP) and conducted regular compliance checks.
• Provided ESG assessment models to support the ESG capabilities of its partners.

Climate Goals & Targets

Environmental Challenges

• Climate change risks, including physical risks (extreme weather events) and transition risks (regulatory changes, market shifts).
• Supply chain disruptions.
• Compliance and ethical management risks.
• Safety incidents.

Mitigation Strategies

• Developed a 2050 Net Zero roadmap with specific implementation strategies.
• Accelerated the transition to renewable energy through REC long-term purchase agreements and green premium procurement.
• Strengthened safety management systems and risk assessment processes.
• Implemented a compliance program (CP) and conducted regular compliance checks.
• Developed alternative sourcing strategies.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Code of conduct, supplier sustainability requirements, ESG assessments, and support for supplier ESG capabilities.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events, flooding, heat waves, and water scarcity.

Transition Risks

• Regulatory changes, market shifts, and technological advancements.

Opportunities

• Development of energy-efficient products and services, expansion of renewable energy business, and carbon credit sales.

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD

Certifications: ISO 14001, ISO 45001, GRS, RCS, ISMS

Third-party Assurance: Samjong KPMG (Financial data); Korea Management Certification Center (Non-financial data)

UN Sustainable Development Goals

• Goal 3 (Good Health and Well-being)
• Goal 4 (Quality Education)
• Goal 7 (Affordable and Clean Energy)
• Goal 8 (Decent Work and Economic Growth)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 15 (Life on Land)
• Goal 16 (Peace, Justice and Strong Institutions)

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

• rPE-based eco-friendly packaging materials, high-efficiency solar modules, and other sustainable products.

Awards & Recognition

• CDP 'A-' rating, Carbon Management Sector Honors, 2 Billion USD Export Tower, various other awards

Environmental Metrics

ESG Focus Areas

• Climate Change Response and Net Zero
• Reducing Environmental Impact
• Sustainable Products and Technologies
• Safety and Health Management
• ESG Management in the Supply Chain
• Transparent and ethical governance
• Compliance and Ethics Management

Environmental Achievements

• Reduced GHG emissions by 20.7 thousand tons in 2023 (12% reduction compared to the base year)
• Secured 92.2 GWh of renewable energy in 2023 (29% increase from 2022)
• Reduced energy consumption by about 2GWh in 2023 through LED lighting replacement
• Reduced GHG emissions by approximately 7,000 tons in 2023 through by-product hydrogen utilization
• Completed LCA assessments for 202 products in 2023
• Achieved a 'Leadership (A-)' score in CDP Water Security

Social Achievements

• Launched the RE-USE TOGETHER campaign, collecting 1,494 donated items and reducing 257 kgCO2eq
• Increased the number of eco-friendly vehicles to seven
• Provided loans totaling KRW 19.9 billion to 25 suppliers through the win-win fund
• Conducted online training sessions for 983 participants from 556 companies on ESG management
• Donated home appliances and daily necessities worth approximately KRW 2 million to vulnerable households

Governance Achievements

• Established the Compensation Committee, composed entirely of outside directors
• Maintained ISO 37001 (anti-bribery management systems) and ISO 37301 (compliance management systems) certifications
• Implemented a shareholder return policy aiming to pay a minimum dividend until the end of 2025

Climate Goals & Targets

Environmental Challenges

• High interest rates, inflation, and sluggish growth
• Concerns about the climate crisis due to extreme weather events
• Supply chain disruptions due to ESG management and associated risks
• Climate litigation risks
• Negative perceptions of the chemical sector
• Increasing demand for climate-related disclosures and ESG assessment results
• Water shortage issues in Ulsan
• Risks related to internal control over the selection of research equipment maintenance companies

Mitigation Strategies

• Established a 2050 Net Zero Roadmap
• Implemented various GHG reduction strategies (energy efficiency improvements, renewable energy procurement, by-product hydrogen utilization)
• Developed alternative sourcing strategies
• Third-party verification to ensure accuracy and reliability
• Producing sustainable products using biomass raw materials
• Improved ESG and SH evaluation systems for suppliers and provided support such as consultancy services
• Investing in blowdown water and wastewater reuse facilities
• Select designated companies through the vendor evaluation rubric

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier Code of Conduct
• ESG and SH assessments of suppliers
• Green purchasing guidelines
• Win-win fund
• Open sourcing system

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Natural disasters
• Supply chain disruptions due to abnormal climate
• Water stress

Transition Risks

• Strengthening regulations related to GHG emissions
• Increasing Net Zero and K-RE100 implementation costs
• Introduction of mandates and regulations for existing products
• Climate litigation
• Changing customer behavior
• Biomass and hydrogen market uncertainty
• Increasing need for production of new and renewable energy-based products
• Rising costs of fossil fuels

Opportunities

• Carbon credit sales
• Policies related to renewable energy
• Growing demand for bio- and recycled plastics

Reporting Standards

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

Certifications: ISO 14001, ISO 45001, ISCC+, GRS, ISO 37001, ISO 37301

Third-party Assurance: KPMG Samjong Accounting Corporation (financial data), Korea Management Registrar Inc. (non-financial data)

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Perovskite tandem cells
• Q.TRON G2 solar modules
• Recycled PE products
• Bio-PVC
• Cultured meat

Awards & Recognition

• CDP Korea Awards Excellence Award for Water Security
• Certificate of commendation from the Korea Environmental Industry & Technology Institute
• Commendation from the Minister of Culture and Sports for the Para Sports Team