Climate Change Data

Environmental Metrics

ESG Focus Areas

• Securing Customer Trust
• Safe Work Environment
• Promoting Eco-friendly Management
• Respecting Diversity of Members
• Benefiting the Community

Environmental Achievements

• Hansol Paper reduced energy per unit use by 1% and printing paper per unit use by 1%
• Hansol Paper reduced waste discharge by 1% per unit
• Hansol Chemical increased recycle rate from 24% in 2014 to 75% in 2019
• Hansol HomeDeco's overseas afforestation reached 10,000 ha
• Hansol HomeDeco achieved KRW 4 billion in sales from eco-friendly electricity generated by its cogeneration plants in 2019
• 9 Hansol Group companies acquired ISO 14001 certification

Social Achievements

• Hansol Paper received the Fourth Asian Women Index Award in the work-life balance sector
• Hansol Inticube achieved a 100% customer satisfaction rate (LG U+ Mobile Business Satisfaction Survey)
• Hansol Logistics became the first Korean logistics company to acquire ISO 45001 certification
• Hansol Group implemented a selective work hour system and PC OFF system to promote work-life balance
• Hansol Group implemented various programs considering not only its staff and employees but also their families
• Hansol Group added new provisions to employment rules in line with the enactment of the prohibition of harassment in the workplace

Governance Achievements

• Hansol Group introduced audit committees for its listed subsidiaries to enhance governance transparency
• Hansol Holdings and Hansol Paper voluntarily disclosed their corporate governance reports
• Hansol Holdings published a mid/long-term shareholder return policy
• Hansol Holdings introduced a non-executive director candidate nomination committee and shareholder nomination system

Climate Goals & Targets

Environmental Challenges

• Maintaining customer trust in a rapidly changing market environment
• Creating a safe workplace for employees and partner companies
• Reducing environmental impact and responding to climate change
• Discovering and developing outstanding talents
• Fulfilling social responsibilities as a member of the community

Mitigation Strategies

• Investing in new technologies and R&D, conducting customer satisfaction surveys
• Establishing fundamental countermeasures for safety management, acquiring ISO 45001 certification
• Implementing an Environmental Management System (EMS), reducing GHG emissions and energy use, developing eco-friendly products
• Transforming the HR system, establishing a talent development system, providing training programs
• Engaging in social contribution activities, supporting partnered growth, collaborating with NGOs

Supply Chain Management

Responsible Procurement

• Using FSC certified products

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Lloyd’s Register

UN Sustainable Development Goals

• SDG 8
• SDG 12
• SDG 13
• SDG 17

The report details how various initiatives contribute to these goals.

Sustainable Products & Innovation

• Nanocellulose (DURACLE®)
• Protego®
• SB flooring
• MDF
• Eco-friendly quantum dot (QD)

Awards & Recognition

• Fourth Asian Women Index Award
• Excellent Corporate Governance Award (KCGS)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Hansol Chemical Ulsan Plant reduced wastewater discharge by 15%
• Hansol HomeDeco established a heavy-metal reduction facility for incinerator fly ashes
• Hansol PaperTech increased recycling of waste sludge
• Hansol Paper’s eco-friendly certified product sales reached KRW 1.4647 trillion
• Hansol HomeDeco’s green flooring and MDF products accounted for 30% of sales
• Sales of Tapex’s paper straws and multi-use cups increased by 22% and 120%, respectively
• Hansol Technics developed low-carbon products
• Hansol Chemical upgraded facilities for energy efficiency
• Hansol Technics cut GHG emissions through facility upgrades
• Hansol HomeDeco’s New Zealand Reforestation Project absorbs 149,000 tons of carbon dioxide per year

Social Achievements

• Hansol Technics hosted a Mutual Cooperation Day where 10 companies participated in individual purchase consultations
• Hansol Paper implemented sustainability management evaluations for its partner companies
• Hansol Paper manages the Mutual Growth Fund
• Hansol Inticube newly developed Fair Subcontracting Guidebook
• Hansol Holdings developed an online education curation system utilizing competency diagnosis
• HSRS was implemented by Hansol Holdings
• Hansol Group expanded employment opportunities for individuals with disabilities
• Hansol Holdings established Group human rights management operation guidelines and operating counseling programs for employees
• Development of an online education curation system, LMS

Governance Achievements

• Operation of audit committees for seven listed companies within the Group
• 42.9% outside directors at Hansol Holdings (2022)
• Hansol IONES established the ‘Committee for Enhanced Management Integrity and Transparency’
• Hansol Holdings paid cash dividends of KRW 120 per share (dividend rate of 3.5%)
• Dividend payout achieved by Hansol Holdings, Hansol Paper, Hansol Chemical, Hansol PNS, Hansol Technics, Tapex
• Hansol Holdings reviewed risk management system of all affiliates and came up with an improvement plan
• Hansol Holdings conducted compliance management review for all affiliates
• Hansol Paper identified seven non-financial risks related to ESG

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions
• Climate change risks
• Meeting legal and ethical standards
• Ensuring sustainable global competitiveness

Mitigation Strategies

• Developing green materials and resource recycling technology
• Prioritizing climate-related risk management
• Implementing the International Sustainability Rating System (ISRS)
• Adopting the HSRS (Hansol Safety Rating System)
• Strengthening ethics and compliance management
• Establishing and effectively managing a shared growth system with suppliers

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Mutual growth with partners by enhancing ESG management capabilities and overall competitiveness in the supply chain

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of eco-friendly products and technologies

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000

Certifications: ISO 14001, ISO 9001, ISO 45001, IATF 16949, AS 9100, ISMS, AEO, KOSHA-MS, ISO 22301, ISO 27001

Third-party Assurance: Korean Standards Association (KSA)

UN Sustainable Development Goals

• Not disclosed

Hansol Group’s key issues for sustainable management align with the UN SDGs

Sustainable Products & Innovation

• Duracle
• Protego
• Terravas
• Whale-saving Wet tissue
• Sugar Pack
• Paper straws
• Reusable cups
• CoEMS
• ISAC-AI

Awards & Recognition

• EcoVadis Gold Medal
• Asia Star Awards 2020
• Minister of Trade, Industry, and Energy Award
• 2021 World Star Packaging Award
• Low Carbon Product Environmental Product Declaration Certificate
• Gold Medal at the Innovation Olympics
• Outstanding Space Award at the Seoul Living Design Fair
• Youth-friendly small giant

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced greenhouse gas emissions by 4.3% (Hansol IONES), 10,260 tons (Hansol Chemical), and approximately 1,000 tons (Hansol Chemical). Reduced business site-produced waste by 33% (Hansol IONES). Reduced LNG usage and greenhouse gas emissions (Hansol Chemical). Reduced plastic waste generation (Tapex). Investment in environmental facility for nano filter installation (Hansol PaperTech).
• Developed wastewater recycling technology, increasing production by 36,000 tons (Hansol PaperTech).

Social Achievements

• Reduced the number of accidents by approximately 60 percent year-on-year in 2023.
• Launched Hansol Dreamverse Company, a virtual internship program with 290 participants.
• Implemented employee growth support programs (Tapex).
• Zero safety accidents (Hansol PNS, Hansol Technics).

Governance Achievements

• Established the Outside Director Nomination Committee (Hansol Paper).
• Strengthened company-wide risk management system, including non-financial risks (Hansol Holdings).
• Implemented shareholder-friendly policies, such as share repurchase and dividend plan (Hansol Holdings).

Climate Goals & Targets

Environmental Challenges

• Heated competition within the industry and heightened uncertainty of winning contracts amid omni-directional economic recession.
• Supply chain disruptions due to climate events (implied).

Mitigation Strategies

• Developed alternative sourcing strategies (implied through discussion of resource recycling and supply chain management).
• Strengthened risk management system (Hansol Holdings).
• Implemented a comprehensive company-wide risk management system, including non-financial risks (Hansol Holdings).

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct (Hansol Paper); Environmental safety and health management risk diagnosis and assessment (Tapex).

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions impacting operations and logistics (Hansol Paper).

Transition Risks

• Stronger environmental laws and regulations (Hansol Paper); Transition to an eco-friendly economy (Hansol Technics).

Opportunities

• Increased demand for eco-friendly products and services (Hansol Technics).

Reporting Standards

Frameworks Used: GRI Standards, SASB, UN SDGs

Certifications: ISO 14001, ISO 45001, ISO 27001, IATF 16949, FSC

Third-party Assurance: EY Korea (financial), Korea Management Registrar (KMR) (non-financial)

Sustainable Products & Innovation

• Hansol Recycle MDF (Hansol HomeDeco); Uniwrap 9 and Uniwrap Eco (Tapex); Paper straws and reusable cups (Tapex); Protego (Hansol Paper).

Awards & Recognition

• LACP 2022 Vision Awards (Hansol Group); 2023 Future Work Experience Best Practice Contest (Hansol Holdings); The Most Respected Company in Korea (Hansol Paper); 17th Packaging Contest (Hansol Paper); Hazard resistance and reduction × sustainability (Hansol Technics); The Anseong City Entrepreneur Awards (Hansol IONES); 2023 Samsung Electronics Best Partner Award (Hansol Chemical); Korea Technology Awards (Hansol Chemical); 2023 Best Partner Award (Hansol Chemical); 12th Korea Taxpayer Awards (Tapex); Minister’s Award (Tapex).