Climate Change Data

Environmental Metrics

ESG Focus Areas

• Human Rights and Labor
• Environment, Safety, and Health (ESH)
• Fair Operating Practices
• Product and Customer
• Community Involvement and Development

Environmental Achievements

• Reduced GHG emissions (Scope 1 and 2 combined) from 38,632 tCO2eq in 2012 to 39,720 tCO2eq in 2013 and 38,737 tCO2eq in 2014. Waste recycling rate increased from 90% in 2012 to 91% in 2013 and 92% in 2014.
• Reduced air pollutant emissions (SOx, NOx, Cu, F, Pb) from 4,763 tons in 2012 to 3,510 tons in 2013 and 1,433 tons in 2014.
• Reduced water pollutant emissions from 867,257 kg in 2012 to 992,531 kg in 2013 and 949,641 kg in 2014.

Social Achievements

• Established a grievance handling committee to address employee concerns promptly and fairly.
• Expanded employment opportunities for disabled workers, exceeding government guidelines.
• Increased proportion of female employees and implemented various female leadership training courses.
• Launched ‘ISU PETASYS Volunteer Corp’ for community engagement.
• Implemented a paid volunteering system to encourage employee participation in community service.

Governance Achievements

• Established a CSR committee to oversee CSR strategy and policy.
• Enacted ISU PETASYS Code of Conduct to ensure ethical business operations.
• Implemented a compliance program (CP) to maintain ethical management and strengthen mutual trust.
• Operates internal audit and internal control systems to ensure transparency and efficiency.

Climate Goals & Targets

Environmental Challenges

• Meeting increasing demands for fair operating practices and stakeholder concerns.
• Minimizing environmental impact and complying with evolving ESH regulations.
• Maintaining high customer satisfaction levels in a competitive market.

Mitigation Strategies

• Enacted and followed ISU PETASYS Code of Conduct.
• Implemented an ESH integrated management system and obtained ISO 14001 and OHSAS 18001 certifications.
• Implemented thorough quality control across the production process and various customer relationship management activities.

Supply Chain Management

Supplier Audits: Regular site audits and surveys; CSR element added to supplier performance evaluation.

Responsible Procurement

• Code of Conduct for the supply chain
• CSR element added to supplier management regulations
• Checking for use of conflict minerals

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 Core Option, ISO 26000, International Integrated Reporting Council Framework

Certifications: ISO 14001, OHSAS 18001, ISO 9001, AS 9100, TL 9000, NADCAP, ITAR, TS 16949

Third-party Assurance: IMCSR

Awards & Recognition

• Supplier of the Year (Cisco, 2008)
• Supplier of the Year (Cray, 2009)
• Excellence in Quality (Cisco, 2010)
• Superior Company in Equal Employment of Male and Female (2013)
• Superior Company in Hiring the Disabled Workers (2006, 2011)
• Work-Life Balance Superior Company (2015)
• The Presidential Award of the Superior Company in the Coexistence of Labor and Management (2011)
• The First Award of Cooperation Between Labor and Management in National Productivity (2012)
• The Company of the Superior Culture between Labor and Management Award (2014)

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions (Scope 1 and 2)
• Improved waste recycling rate to 89%
• Reduced water consumption

Social Achievements

• Zero safety-related accidents for three consecutive years
• Launched various employee well-being initiatives (flextime, alternative holidays, etc.)
• Hired 32 persons with disabilities
• Provided 53.46 hours of annual education per employee

Governance Achievements

• Established a new CSR risk analysis process
• Implemented an anti-corruption training program for 874 employees and partners
• Operated a whistle-blower system with zero reported cases in 2020
• Improved internal accounting control system

Climate Goals & Targets

Environmental Challenges

• Fluctuating business environment due to COVID-19, Industry 4.0, and economic stagnation
• Intensifying competition among PCB manufacturers in Greater China
• Increased production costs due to multi-variety items
• Pressure of unit price discounts by clients

Mitigation Strategies

• Pursuing innovative transformation to secure sales volume and enhance cost competitiveness
• Strengthening business portfolio to enlarge the new high-tech PCB market
• Developing core technologies (high aspect ratio technology, fine pitch, stubless via)
• Cost innovation activities aiming to reduce KRW 3 billion

Supply Chain Management

Supplier Audits: 100% execution rate of CSR audit of suppliers

Responsible Procurement

• Code of Conduct
• Conflict Minerals Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards: Core option, ISO 26000

Certifications: ISO 14001, ISO 45001, KOSHA 18001, IATF 16949, AS 9100

Third-party Assurance: Korea Standards Association

Awards & Recognition

• Minister of Trade, Industry and Energy Award for 2018 The Most Loved Companies in Korea
• Minister of Environment award in 2017

Environmental Metrics

ESG Focus Areas

• Response to Climate Change
• Occupational Safety and Health
• Product Safety and Quality Management

Environmental Achievements

• Achieved record-breaking revenues
• Environmental Law Violation ZERO
• Data Leakage and Security Accident ZERO
• EcoVadis Rating Silver Level
• ESG Rating by Sustinvest B (Overall Rating)
• Installation of wastewater recycling facilities, air pollution prevention facilities at the fourth plant, etc. (KRW 4.5 billion investment)
• Waste recycling rate reached 89.6%
• Average discharge concentration of water pollutants was 15.7% of emission standards
• Average emission concentration of air pollutants was 3.7% of emission standards

Social Achievements

• Ranked third in global revenue among ultra-high layer PCB manufacturers (over 18 layers)
• RBA Audit Silver Level
• Employment-Friendly Company (Selected by Daegu Metropolitan City)
• Zero human rights-related incidents reported
• Zero code of conduct violations
• 100% participation rate in anti-corruption and ethics education for employees
• Voluntary turnover rate of 5.7%
• Average training hours per employee: 81.9 hours

Governance Achievements

• Sound and transparent Board of Directors
• Ethics and Compliance
• Risk Management
• Information Security
• Zero anti-corruption-related violations
• Zero compliance incidents

Climate Goals & Targets

Environmental Challenges

• Unfavorable market environment due to reduced semiconductor production and decline in sales prices
• Accelerated competition and stagnant network infrastructure market
• Increased regulatory response costs due to heightened domestic and international regulations related to climate change
• Legal proceedings and decreased corporate value resulting from violations of environmental laws, public disclosures, and greenwashing issues
• Increased operating costs due to rising and fluctuating emission allowance prices
• Increased investment costs for new, low-carbon equipment during the transition to low-carbon technology
• Financial losses resulting from side effects of implementing new technologies
• Incurring losses due to depreciation and early disposal of existing assets
• Greater demand from customers (global IT companies) to reduce carbon emissions and participate in climate-related initiatives
• Decrease in brand value due to negative evaluations from customers and stakeholders, and lower operating profits resulting from decreased product demand
• Increased recovery costs resulting from damage or breakdown of company assets and facilities due to heightened occurrences of extreme weather events
• Greater energy consumption due to new plants and facility expansion
• Increased power usage due to heat waves and extreme cold
• Increased fixed costs (power, utilities) due to rising energy prices, resulting in lower operating income

Mitigation Strategies

• Achieved record production and revenue based on excellent technical expertise and competitive quality
• Completed construction of a new plant and welfare facility, along with relocation of existing factories and new investments
• Securing core technological competencies that reflect changes in the market and customer demands
• Expanding product portfolio to include AI accelerators, high-specification networks, and server equipment
• Maintaining a maximum production system through increased sales of high-performance servers and accelerator modules
• Improving production and management environments by investing in automated equipment and programs
• Establishing an integrated RPA monitoring system
• Incorporating automation technology throughout the entire production process
• Enhancing quality detection capabilities with new inspection equipment
• Implementing sustainable ESG management
• Strengthening transparent management activities that consider all stakeholders
• Developing systematic Net Zero strategies and activities
• Introducing an ESG data management system
• Monitoring and responding to climate change regulations
• Establishing emissions purchasing and selling strategies, monitoring emissions trading prices
• Gradual investment in low-carbon facilities with financial considerations
• Introducing eco-friendly equipment and materials when investing in new facilities
• Setting and implementing GHG reduction targets
• Considering customer demands, evaluating adoption of initiatives (Net Zero, RE100, SBTi, etc.)
• Enhancing eco-friendly image through CDP disclosure, TCFD-based disclosure
• Implementing a workplace emergency response manual
• Inspecting and stabilizing facilities
• Introducing high-efficiency products when introducing new facilities
• Constant monitoring of energy usage
• Implementing energy efficiency measures like optimizing indoor temperature and recycling waste heat
• Conducting research and development to produce energy-efficient products and expand eco-friendly business
• Considering low-carbon products and high-efficiency technology

Supply Chain Management

Supplier Audits: 37 suppliers surveyed in 2023

Responsible Procurement

• Conflict minerals due diligence
• RMI (Responsible Minerals Initiative) compliance
• CMRT (Conflict Minerals Reporting Template) usage
• Supplier compliance with ISU PETASYS Code of Conduct and RBA Code of Conduct
• ESG audits of suppliers based on RBA evaluation criteria

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Heat waves
• Extreme cold

Transition Risks

• Increased regulatory response costs
• Legal proceedings
• Increased operating costs
• Increased investment costs
• Financial losses
• Greater demand from customers to reduce carbon emissions
• Decrease in brand value

Opportunities

• Systematic emission reduction management
• Replacement of energy-efficient equipment
• Reduce energy consumption and emission purchasing costs
• Develop energy-efficient products
• Expand eco-friendly business

Reporting Standards

Frameworks Used: GRI Standards, TCFD, SASB

Certifications: ISO 14001, ISO 45001, AS9100, IATF 16949, ISO 9001

Third-party Assurance: BDO Sunghyun LLC

UN Sustainable Development Goals

• Goal 3
• Goal 4
• Goal 5
• Goal 8
• Goal 10
• Goal 13
• Goal 16
• Goal 17

Implementation of ESG management practices centered around eight of the UN SDGs

Awards & Recognition

• Supplier of the Year (CISCO, CRAY)
• World-Class Product in Ultra-high Layer PCB (Ministry of Knowledge Economy)
• Chairman's Award (Korea Chamber of Commerce and Industry)
• Employment-friendly Leading company (Daegu Metropolitan City)
• Outstanding Workplace for Employee Health Promotion (Korea Occupational Safety and Health Agency)
• Minister's Award (Ministry of Trade, Industry and Energy)
• Presidential Commendation for Contributions to Labor-Management Culture (Ministry of Employment and Labor)
• TOP Direct Component Supplier Award (Juniper)
• Excellence in Technology Award (Palo Alto)
• Precision Technology Award (Korean Society for Precision Engineering)
• Employment-friendly Company (Daegu Metropolitan City)
• USD 400 million Export Tower Award (Ministry of Trade, Industry and Energy)