Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved 3.4% GHG emission reduction compared to BAU
• Expanded EHS committee activities
• Developed various eco-friendly products (bio-based spandex yarn, recycled polyester yarn, recycled nylon yarn, eco-friendly engineering plastics, etc.)

Social Achievements

• Launched C-Cube activities to internalize customer-centric strategies
• Improved GBIS system for systematic VOC management
• Implemented 8-step quality inspection for construction projects
• Operated customized VOC management system
• Implemented Skill-up training program at Ulsan Plant
• Joint participation in global trade fairs with client companies
• Implemented shared growth programs with suppliers

Governance Achievements

• Established a group-wide risk management system
• Strengthened board independence and transparency
• Established committees within the Board of Directors for efficient operation
• Implemented ethical management system with Code of Ethics and Guidelines
• Established a compliance program

Climate Goals & Targets

Environmental Challenges

• Aggravated global business environment and COVID-19 pandemic
• Decreasing orders in power facility and construction industries due to economic slowdown and competition
• Shift of textile market toward high value-added products and growing competition
• Intensifying market competition and industry maturity
• Uncertainties in business environment due to trade protectionism and global threats

Mitigation Strategies

• Operating a TFT at the group level to address ESG improvements
• Improving risk system focusing on safety and health risks from COVID-19
• Achieving customer satisfaction through product quality innovation
• Systematically managing customer voices and providing customized solutions
• Securing overseas production bases and expanding to new markets
• Developing eco-friendly products and technologies
• Strengthening supply chain sustainability through win-win cooperation with suppliers

Supply Chain Management

Responsible Procurement

• Shared growth agreement with suppliers
• Fair trade guidelines
• Supplier ethical management practices
• Code of ethics for shared growth management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, EcoVadis, ISO26000, UN SDGs

Third-party Assurance: Networks-Y (AA1000AS principles and ISAE 3000)

Environmental Metrics

ESG Focus Areas

• Environment
• Society
• Governance

Environmental Achievements

• Reduced energy consumption by approximately 4.3% compared to the previous year.
• Reduced GHG emissions by about 4% compared to the previous year.
• Invested KRW 1.3 trillion in carbon fiber and hydrogen projects for R&D and commercialization.

Social Achievements

• Received outstanding results from ESG evaluations.
• Continued efforts to promote shareholder rights and interests through treasury stock repurchases.
• Various CSR activities to overcome difficulties of COVID-19 pandemic, contributing to local communities.

Governance Achievements

• Strengthening the Board Expertise by Appointing Outside Directors from Diverse Backgrounds
• Reinforcing Independence and Transparency from External Board Members
• Fair and Transparent Evaluation and Compensation

Climate Goals & Targets

Environmental Challenges

• The spread of COVID-19 negatively affected production and sales, leading to a decrease in sales, operating profit, and net profit.
• Uncertain business conditions in the construction industry.
• Global economic downturn due to COVID-19.

Mitigation Strategies

• Minimized the recession of business performance based on stable management capacity despite the continuous COVID-19 pandemic.
• Focused on housing/construction projects considered highly profitable based on financial soundness and brand value.
• Developed and commercialized the world's best products such as tire cords, automotive seat belt fabric, and new materials.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, EcoVadis, ISO26000, UN SDGs

Third-party Assurance: DNV

Awards & Recognition

• CSR in the Community

Environmental Metrics

ESG Focus Areas

• Sustainable Products and Technology Development
• Response to Climate Change
• Reinforcement of Workplace Health and Safety
• Sustainable Supply Chain
• Customer Obsession

Environmental Achievements

• Reduced GHG emissions by 35.5% compared to 2018 and by 7.6% compared to 2022
• Installed solar power facilities with a total capacity of 182.4kW at Changwon Plants 1, 2, and 4.
• Commercialized hydrogen engine generators for the first time in the world
• Acquired a significant number of orders for ester oil/vegetable oil transformers in 2023

Social Achievements

• Maintained ISO 45001 and KOSHA-MAS certifications
• Achieved zero serious accidents for 2 consecutive years (Construction Division)
• Provided quality inspection and human resources support for 95 partner companies
• Provided support for sustainability management education and consulting for 37 companies

Governance Achievements

• Established an R&D center in the Netherlands for next-generation power equipment
• Developed and supplied 72.5kV GIS applying 'VI + dry air'
• Signed an ESS supply contract with Verdant Bidco in the UK
• Achieved the highest rating in the winwin growth evaluation of KOFCA

Climate Goals & Targets

Environmental Challenges

• Increased demands for GHG emissions reduction and eco-friendly certifications from customers and investors
• Transition to clean technologies and increased investment costs
• Potential damage to manufacturing facilities due to extreme weather
• Supply chain risks and demands for improved sustainability management

Mitigation Strategies

• Implementing energy-saving measures and performance monitoring
• Developing technologies for sustainable power grids (ESS, SF6-free GIS, STATCOM, HVDC, etc.)
• Investing in facility renovations to prepare for extreme weather
• Conducting ESG risk assessments and providing education and consulting to suppliers

Supply Chain Management

Supplier Audits: Twice a year

Responsible Procurement

• Partner Company Code of Conduct
• Mutual growth agreement
• Purchase of eco-friendly products and services

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rise in sea-level and average temperature

Transition Risks

• Emissions Trading System
• Global carbon emissions regulation enhancement
• Increased energy costs
• Increased demands for GHG emissions reduction

Opportunities

• Expansion of the hydrogen market
• Increased demand for clean energy
• Expansion of the eco-friendly product market

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: ISO 45001, KOSHA-MAS, G-SEED

Third-party Assurance: Econine

Sustainable Products & Innovation

• Biodegradable ester oil transformers
• SF6-free GIS
• Hydrogen engine generators

Awards & Recognition

• CDP A- grade (2022, 2023)
• Sector Honors in 2022
• Customer Love Brand Best Award (2023)
• Korea Customer Award for Best Brand of the Year (2023)