Climate Change Data

Environmental Metrics

ESG Focus Areas

• Response to Climate Change
• Circular Economy
• Reducing Product Environmental Impact

Environmental Achievements

• Iksan factory achieved 320% of the GHG reduction goal (390 tons)
• Established and implemented a circulation system for major parts during the use, maintenance, and disposal stages
• Achieved company goals for the major environmental indicators (waste discharge, waste recycling, etc.)
• Completed safety certification of the high-efficiency hydrogen model (5CSA PAFC hydrogen model)
• Passed the DNV environment test of marine SOFC cell stack

Social Achievements

• Recruited disabled athletes to expand employment and diversity for vulnerable groups
• Established a customer satisfaction system
• Achieved family-friendly company certification
• Zero serious accidents, zero occupational diseases, zero safety accidents and EHS issues at the new Gunsan factory

Governance Achievements

• Achieved an overall grade of ‘A’ from KCGS
• Included in the DJSI Korea Index for two consecutive years (2022 and 2023)
• Submitted ESG agenda to the board of directors and stipulated professional support for outside directors through revision of board regulations

Climate Goals & Targets

Environmental Challenges

• Geopolitical crises disrupting the energy market
• Persistent high interest rates and tightness in the financial market
• Rising raw materials prices
• Supply chain disruptions

Mitigation Strategies

• Intensifying efforts in R&D and application diversification
• Establishing a circular economy system
• Developing eco-friendly technologies
• Strengthening management of supply chain ESG risk
• Implementing response measures according to scenario analysis results

Supply Chain Management

Supplier Audits: 51 online part suppliers, 3 on-site inspections

Responsible Procurement

• Code of conduct for suppliers
• Supply chain ESG risk management system
• ESG risk evaluation results applied to the purchase system

Climate-Related Risks & Opportunities

Transition Risks

• Strengthened net zero policy and carbon tax/carbon emissions regulations
• Strengthened regulations on GHG emissions management, waste disposal, and greenwashing
• Changes in energy demand
• Difficulty of securing business feasibility due to increasing number of new hydrogen business companies and intensifying competition

Opportunities

• Expansion of order opportunities with the introduction of the Clean Hydrogen Energy Portfolio Standard (CHPS) and the opening of the clean hydrogen power generation market
• Increasing customer demand for hydrogen fuel cell power generation facilities to achieve carbon neutrality and stabilize power supply and demand
• Securing profitability through early adoption of hydrogen-related technologies
• Establishing corporate image as a technical leader in the hydrogen economy by enhancing the competitiveness of the fuel cell business and promoting new hydrogen businesses

Reporting Standards

Frameworks Used: GRI Standards 2021, K-IFRS, DJSI, KCGS

Certifications: ISO 14001, ISO 50001, ISO 45001

Third-party Assurance: KMR

UN Sustainable Development Goals

• Goal 1
• Goal 3
• Goal 4
• Goal 5
• Goal 6
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 15
• Goal 16

Details provided in the report on how initiatives contribute to each SDG

Sustainable Products & Innovation

• High-efficiency hydrogen model
• SOFC for power generation and marine applications
• Water electrolysis system
• Tri-gen model

Awards & Recognition

• The 30th Company Innovation Award 2023
• Sustainable Management Merit 2023
• Management Grand Awards 2023
• Innovation Product of Year 2023
• H2 Innovation Awards grand prize in the hydrogen utilization sector