Climate Change Data

Environmental Metrics

ESG Focus Areas

• Technology Competitiveness
• Customer Service
• EHS Management
• Creative Organizational Culture
• Smart Office
• Shared Growth
• Social Responsibility

Environmental Achievements

• Reduced greenhouse gas emissions by 1.1% in 2012 (target: 341,005 tCO2e)
• Received emission rights for 27,000 tCO2e in 2010 and 2011 for early greenhouse gas reduction
• Achieved a 38.7% recycling rate of recovered steel in 2011
• Developed and commercialized Asia’s first 3MW offshore wind power system (WinDS 3000™)
• Developed and commercialized carbon dioxide capture and storage technology
• Launched Korea’s first IGCC project
• Successfully developed 300kW fuel cell technology

Social Achievements

• Launched the “2G (Growth of People, Growth of Business) Strategy” to enhance corporate value through employee growth
• Established a nuclear power service center capable of maintenance and repair services
• Launched the “DOORE” (Doosan Robot for Engineering Service)
• Donated a 100-ton freshwater facility in Vietnam, supplying 500 people with water daily
• Provided a 30-ton freshwater production facility to Dokdo Island
• Carried out medical volunteer services in Vietnam, providing medical service to over 8,200 residents
• Provided scholarships totaling $200,000 to students in nine Vietnamese universities
• Received the grand prize for “social responsibility management” from Vietnam’s Ministry of Planning and Investment

Governance Achievements

• Received ‘A’ rating in 2010 and 2011 for governance structure assessment by the Korea Corporate Governance Service
• Established an ethical management system with a code of ethics and training for all employees
• Implemented a performance-based salary system linking management achievements with compensation
• Launched a self-compliance program for fair trade practices
• Signed fair trade and shared growth agreements with 19 primary and 64 secondary partners in 2011

Climate Goals & Targets

Environmental Challenges

• Fierce bidding war in the power generation and desalination markets
• Fluctuations in global metal prices and foreign exchange rates
• Cultural differences in overseas projects affecting consensus on safety issues

Mitigation Strategies

• Developed a one-module process for ultra-large evaporators, cutting construction time
• Implemented proactive marketing campaigns to secure orders without open bidding
• Developed hybrid methods combining RO and MSF desalination technologies
• Closely monitored fluctuations in metal prices and foreign exchange rates and implemented contingency plans
• Dispatched EHS specialists to overseas locations to manage EHS issues

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Green purchasing agreement
• Green purchasing guideline

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products and services
• Expansion into renewable energy technologies

Reporting Standards

Frameworks Used: GRI G3.1, AA1000APS

Certifications: ISO 14001, OHSAS 18001, ASME, ISO 9001, KEPIC

Third-party Assurance: Samil PwC

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• 3MW offshore wind power system
• Molten carbonate fuel cell
• IGCC technology
• CCS technology
• Fuel cell technology

Awards & Recognition

• Global Water Awards Desalination Company of the Year
• Vietnam Investor Corporate Social Responsibility (CSR) Award Grand Prize
• Gyeongnam Social Welfare Award
• Ministry of Public Administration and Security Award

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 16% from BAU level in 2019.
• Achieved 91.4% waste recycle rate at Changwon Plant.
• Reduced energy costs by 2.3 billion won annually and greenhouse gas emissions by 8,500 tons through an integrated energy system.

Social Achievements

• Included in the list of DJSI Korea companies for six consecutive years.
• Received an “A-rating” for eight consecutive years in the ESG assessment by the Korea Corporate Governance Service.
• Implemented Team Up Program to foster performance enhancement, mutual understanding, and improved communication.

Governance Achievements

• Maintained a majority of outside directors on the Board.
• Established a CSR Committee under the Board of Directors.
• Implemented an electronic voting system to protect shareholder rights.

Climate Goals & Targets

Environmental Challenges

• Low global economic growth and a slump in the power generation industry.
• Increased market competition.
• Rising uncertainties due to the US-China trade dispute, geopolitical risks, and the coronavirus outbreak.
• Sales dropped from 7.7 trillion won in 2012 to about 3.7 trillion won in 2019.

Mitigation Strategies

• Implemented aggressive measures to bolster weakened financials.
• Cultivated innovative new projects, including a gas turbine for power plants and a 5.5MW wind turbine.
• Secured international certification for the 5.5MW wind turbine and projects for commercialization.
• Restructured business portfolio around environment-friendly technology.

Supply Chain Management

Supplier Audits: Regular (twice per year) evaluation of EHS management of partner companies.

Responsible Procurement

• CSR Guideline for Suppliers

Climate-Related Risks & Opportunities

Opportunities

• Development of environment-friendly technology; expansion of business activities in gas turbines and new renewable energy.

Reporting Standards

Frameworks Used: GRI Standards, SASB, UNGC

Third-party Assurance: KMR (Korea Management Registrar)

UN Sustainable Development Goals

• SDG 6 (Clean Water and Sanitation)
• SDG 7 (Affordable and Clean Energy)
• SDG 13 (Climate Action)
• SDG 3 (Good Health and Well-being)
• SDG 4 (Quality Education)

DHIC's core business and social contribution activities directly contribute to these goals.

Sustainable Products & Innovation

• High-efficiency EME (Electrostatic Mist Eliminator); CDI (Capacitive De-Ionization) technology; gas turbine for power plants; 5.5MW wind turbine; zero-liquid discharge (ZLD) system.

Awards & Recognition

• Presidential Golden Award (National Quality Management Convention); Energy Storage Project of the Year (5th Global Energy Storage Conference); EHS Excellent Management award (EVN for Vinh Tan 4 Ext.)

Environmental Metrics

ESG Focus Areas

• Climate change
• New growth business-centered portfolio management
• Anti-corruption efforts and ethical management
• Employee competence improvement
• Safety management
• Mutual relationship with local community
• Energy use reduction
• Raw materials use and recycling
• Partner companies' human rights management
• Technological innovation and R&D investment

Environmental Achievements

• Reduced energy costs by KRW 2.75 billion, greenhouse gas emissions by 9,000 tons, and generated KRW 1 billion of emission trading profit in 2020.
• Waste recycling rate of 91%
• Air pollutant emissions in 2020 amounted to 113.7 tons (51.6% of 220.4-ton goal)
• Successfully developed a high-efficiency EME (Electrostatic Mist Eliminator) in 2019, reducing fine particle concentration to 2mg/N㎥ or less.

Social Achievements

• Maintained a dispute-free collective bargaining agreement for 15 consecutive years (2016-2020).
• Provided daily necessities and quarantine supplies to 300 vulnerable households during COVID-19.
• Helped farmers overcome difficulties by assisting with harvesting in three farming villages.
• Provided medical assistance to 9,368 people.
• Provided educational support and career experience opportunities to 11,562 people.

Governance Achievements

• Established an ESG Committee chaired by the CEO to oversee climate change issues, assess risks and opportunities, and devise strategies.
• Developed a climate change response-related ESG Checklist applied throughout technology development.
• Strengthened anti-corruption efforts and ethical management, including Code of Conduct training for partners and establishment of a cyber reporting center and Ethics Helpline.

Climate Goals & Targets

Environmental Challenges

• COVID-19 pandemic impacting supply chains and workplaces.
• Global climate change and the need for carbon neutrality.
• Downsizing of existing businesses and markets caused by market restructuring (transition risk).
• Costs for recovery when large disasters occur (physical risk).
• Increase in manufacturing facility operating costs owing to rising temperatures (physical risk).

Mitigation Strategies

• Built a COVID-19 response system prioritizing employee safety.
• Defined four new growth engines: gas, renewable energy, hydrogen, and SMRs.
• Investing in eco-friendly technology, pursuing M&As, and entering into partnerships.
• Early risk management, integrated energy & environment management system implementation, and expansion of green technology.
• Setting greenhouse gas reduction targets and implementing a two-track plan (improving energy efficiency and acquiring carbon credit).

Supply Chain Management

Supplier Audits: Regular (twice annual) evaluations of EHS management of partner companies.

Responsible Procurement

• Supplier ESG Guidelines based on the Ten Principles of the UN Global Compact.

Climate-Related Risks & Opportunities

Physical Risks

• Costs for recovery when large disasters occur (e.g., earthquakes, heavy rain, thunderstorm)
• Increase in manufacturing facility operating costs owing to rising temperatures

Transition Risks

• Rise in carbon credit purchasing costs
• Additional costs from purchase of renewable energy
• Increase in investments owing to rising number of eco-friendly, low-carbon facilities
• Fierce competition in eco-friendly technology development
• Downsizing of existing businesses and markets caused by market restructuring

Opportunities

• Growing demand for high-efficiency, eco-friendly energy
• Adoption of new technology and renewable energy (blue, green hydrogen)
• Growing market for DT-based power plant equipment services
• Greater brand value by earning a reputation as an eco-friendly company

Reporting Standards

Frameworks Used: GRI Standards, SASB, UNGC, TCFD

Certifications: ISO 14001, ISO 45001, AS9100

Third-party Assurance: Korea Foundation for Quality (KFQ)

UN Sustainable Development Goals

• SDG 6: Clean Water and Sanitation
• SDG 7: Affordable and Clean Energy
• SDG 13: Climate Action
• SDG 3: Good Health and Well-being
• SDG 4: Quality Education

Activities carried out for the goal. Each year, we check the status of execution for each detailed target, revise our plans, and review the adequacy of the targets, considering industrial trends and status.

Sustainable Products & Innovation

• High-efficiency gas turbines
• 5.5MW and 8MW wind turbines
• Hydrogen liquefaction plant
• Energy Storage System (ESS)
• High-efficiency EME (Electrostatic Mist Eliminator)
• CDI (Capacitive Deionization) technology

Awards & Recognition

• Eight World-Class Products awarded by the Ministry of Trade, Industry and Energy (MOTIE).

Environmental Metrics

ESG Focus Areas

• Manage business transition risks
• Safety and health management
• Hazardous materials management
• Product quality and safety
• Manage greenhouse gas emissions

Environmental Achievements

• Achieved a waste recycling rate of 91.6% in 2022.
• Used only 110.7 tons of three major hazardous chemicals in 2022, 27% of the annual permitted quota.
• Reduced NOx emissions to 116 tons in 2022 (53% of the regulatory quota).

Social Achievements

• Maintained a labor dispute-free workplace for 17 consecutive years (2006-2022).
• Supported 35 partner companies in acquiring and maintaining risk assessment certifications in 2022.
• Achieved a customer satisfaction survey score of 88.1 in 2022 (up 7.1 points from 2021).

Governance Achievements

• Established a Climate Change Response Council in 2022.
• Revised the Code of Conduct in 2022.
• Appointed a female outside director in 2023, improving BOD diversity.

Climate Goals & Targets

Environmental Challenges

• Transition to a greener portfolio due to increasing demand for carbon-free power generation.
• Rising costs under domestic and international carbon regulations.
• Potential risks from extreme weather events due to climate change.

Mitigation Strategies

• Established a 2050 Carbon RE:Set strategy with a goal of carbon neutrality by 2050 and a 19.4% reduction from 2017 levels by 2030.
• Investing in technology development for eco-friendly businesses.
• Implementing energy efficiency improvement activities at the Changwon Plant and securing emission credits.

Supply Chain Management

Supplier Audits: 72 companies in 2022

Responsible Procurement

• Supplier ESG Guidelines established and advised to all partner companies.

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events (heavy rain, heat waves, strong winds, earthquakes).

Transition Risks

• Shifting to a low-carbon economy, carbon regulations (ETS, CBAM), changes in market demand.

Opportunities

• Increased demand for green energy, development of eco-friendly products and technologies.

Reporting Standards

Frameworks Used: GRI Standards, SASB, UNGC, TCFD

Certifications: ISO 14001, ISO 27001, ISO 19443

Third-party Assurance: Korean Foundation for Quality

Sustainable Products & Innovation

• 8MW offshore wind turbine, SMRs, hydrogen gas turbines.

Awards & Recognition

• Minister of Oceans and Fisheries Award for coastal cleanup activities.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Health and safety management
• Product quality with safety in mind
• Greenhouse gas emissions management
• Ethics and compliance management
• Business portfolio transition

Environmental Achievements

• Achieved 2023 GHG emissions reduction target (7kt reduction. 5kt own and 2kt from credits)
• Improved casting & forging energy efficiency (5 kt reduction) through AI-based prediction of molten steel amount and application of thermodynamic simulator
• Waste recycling rate of 91.8% at major worksites
• Reused 34.3% of all raw materials

Social Achievements

• Improved DSRS (Doosan Group EHS Assessment) score (59.5 points in ’22 -> 69.5 points in ’23)
• Customer Satisfaction Survey score was 89.9 points, up 1.8 points from 88.1 points in 2022
• 83% green orders, up 10% year-on-year
• Strengthened frontline quality inspections by the executives

Governance Achievements

• Offered more ethics and compliance training - Conducted ethics training for 2,830 white-collar employees and 1,270 domestic blue- collar employees in Korea in 2023
• Conducted ethics training for employees of Doosan VINA and its partner companies among overseas subsidiaries
• Appointed a new female outside director

Climate Goals & Targets

Environmental Challenges

• Global economic slowdown and geopolitical risks
• Climate change accelerated by slow transition to green businesses
• Weakened market competitiveness and financial losses due to difficulties in green business transition
• Accidents caused by contamination and harmful substance leakage/fire in the process of product use
• Negative financial consequences, such as lost sales, fines, and damage to the company’s product image internally and externally, resulting from accidents in the process of product use
• Lack of tangible and sustained commitment to reducing greenhouse gas emissions, leading to adverse global warming impacts
• Increase in operating costs and financing risks due to higher carbon taxes, green bonds, etc.
• Unrest among employees and the society due to corruption and breaches of ethical standards within the organization
• Loss of internal and external trust and damage to corporate image, resulting in fines and other costs
• Growing risks in raw material sourcing due to natural resource scarcity
• Global cyber security threats and security regulations increase the risks in protecting core technologies

Mitigation Strategies

• Expanding new recycling businesses to recover key minerals such as lithium
• Strengthening activities such as reducing the use of raw materials at the company’s business sites, expanding recycling, and managing supply chain risks
• Strengthening protection measures for core technologies in response to increasing cyber security threats and reinforce the OT (Operation Technology) protection system for IT equipment assets in production facilities
• Set a 2030 reduction target of 14.5% from 2018 GHG emissions, with a goal of 2050 Net Zero
• Advanced GHG emissions management (product and project-specific carbon footprint management)
• Improvement of casting & forging energy efficiency (5 kt reduction) through AI-based prediction of molten steel amount and application of thermodynamic simulator, and identification of plans to reduce greenhouse gas emissions by reducing the government electricity emissions factor
• Plans established to transition to renewable energy for company’s electricity consumption
• Organize and build systems with the end goal of zero compliance risk
• Drive pinpoint activities (Fair Trade and Anti-Graft Act)
• Compliance trainings for new executives and team leaders as part of building a compliance system to strengthen compliance management
• Transforming business portfolio to supply carbon-free power plants and equipment
• Expanding green business models, including resource circularization
• Monitor weather changes to prepare for workplace response and invest in facility improvements
• Monitor sea level rise to prepare for site flooding and invest in facility improvements

Supply Chain Management

Supplier Audits: 104 partner companies assessed in 2023

Responsible Procurement

• Supply Chain ESG Code of Conduct
• ESG assessments of partner companies
• Shared Growth programs

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Rising sea levels
• Heat waves

Transition Risks

• Strengthening carbon regulations
• Carbon border tax
• Taxonomy
• Changing customer preferences

Opportunities

• Development of low-carbon technologies
• Expansion of green business models

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, UNGC

Certifications: ISO 14001, ISO 45001, ISO 19443, ISO 27001, ASME, KEPIC, IEC61400

Third-party Assurance: Korea Quality Foundation

Sustainable Products & Innovation

• Gas turbines
• SMRs
• Renewable energy technologies
• Hydrogen technologies

Awards & Recognition

• Gyeongsangnam-do Governor’s Award for contribution to marine environment conservation