Climate Change Data

Environmental Metrics

ESG Focus Areas

• Customer Trust
• Safe Working Environment
• Environmentally Friendly Management
• Respect for Workforce Diversity
• Community Coexistence

Environmental Achievements

• Reduced energy consumption per unit by 1%
• Reduced paper consumption per unit by 1%
• Reduced waste generation per unit by 1%
• Achieved 75% recycling rate at Hansol Chemical
• Hansol Homedeco's overseas afforestation project reached 10,000ha
• Hansol Homedeco generated approximately 4 billion KRW in revenue from sales of eco-friendly electricity in 2019.
• Developed Protego®, a sustainable packaging material replacing plastic and aluminum.

Social Achievements

• Hansol Paper received the Asia Women's Index Award in the Work-Life Balance category.
• Hansol Chemical was certified as a family-friendly company.
• Various employee wellbeing initiatives including PC OFF system, flexible working hours, and EAP program.
• Hansol Inticube achieved 100% customer satisfaction (LG U+ mobile business unit satisfaction survey).

Governance Achievements

• Expanded the establishment of audit committees in group subsidiaries.
• Voluntarily disclosed corporate governance reports for KOSPI-listed companies.
• Announced a long-term shareholder return policy.
• Implemented a shareholder nomination system for external directors.
• Hansol Holdings' board of directors consists of 4 inside directors and 3 outside directors (43% of total members).

Climate Goals & Targets

Environmental Challenges

• Major accident at the Jang-hang plant in April 2019.
• Supply chain disruptions
• Climate change impacts
• Maintaining customer trust in a rapidly changing market.

Mitigation Strategies

• Implemented safety management measures and invested 6.4 billion KRW in equipment safety improvements at four plants.
• Developed alternative sourcing strategies
• Established an environmental management system (EMS) based on ISO 14001.
• Invested 11 billion KRW in LNG hydrogen reforming facilities to reduce greenhouse gas emissions.
• Continuous improvement of quality management processes and customer satisfaction surveys.

Supply Chain Management

Responsible Procurement

• Shared environmental policies and targets with suppliers.
• Monitoring of suppliers' environmental performance.
• Incentives for high-performing suppliers.
• Guidance for improvement to low-performing suppliers.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards (2016), ISO 26000

Certifications: ISO 14001, ISO 45001, FSC

Third-party Assurance: Lloyd's Register

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 3: Good Health and Well-being
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 6: Clean Water and Sanitation
• Goal 7: Affordable and Clean Energy
• Goal 8: Decent Work and Economic Growth
• Goal 9: Industry, Innovation and Infrastructure
• Goal 11: Sustainable Cities and Communities
• Goal 12: Responsible Consumption and Production
• Goal 13: Climate Action
• Goal 15: Life on Land
• Goal 17: Partnerships for the Goals

Various initiatives contributing to these goals are described throughout the report.

Sustainable Products & Innovation

• Nano cellulose (Duracle®)
• Protego®
• SB flooring
• Eco-friendly MDF
• Quantum Dot (QD)

Awards & Recognition

• Asia Women's Index Award (Hansol Paper)

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced carbon emissions (Specific figures not provided, but mentions initiatives like using recycled materials and renewable energy)
• Increased recycling rate of waste (Specific figures provided for some subsidiaries)
• 68.1% of Hansol Paper's total sales were from eco-friendly products in 2021
• Hansol Home Deco's New Zealand afforestation project (10,000 ha)

Social Achievements

• Established a human rights management system in 2022
• Hansol Paper's mutual cooperation council (2013)
• Hansol Technics' ESG training sessions for 41 partner companies
• Hansol Group's investment in community contribution (1,660 million KRW in 2021)
• Various employee well-being initiatives (e.g., family-friendly policies, customized training programs)

Governance Achievements

• Established a Hansol ESG management system
• Improved KCGS ESG rating to A in 2021
• Implemented a long-term shareholder return policy
• Enhanced shareholder rights (e.g., electronic voting)

Climate Goals & Targets

Environmental Challenges

• Climate change impacts (e.g., extreme weather events)
• Supply chain disruptions
• ESG regulations (e.g., EU Corporate Sustainability Due Diligence Directive)

Mitigation Strategies

• Development of alternative sourcing strategies
• Implementation of a robust ESG management system
• Strengthening human rights management
• Investment in renewable energy and resource efficiency
• Risk management system and crisis response capabilities

Supply Chain Management

Responsible Procurement

• Fair contract guidelines
• ESG management training for partner companies

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes, market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards (Core), ISO 26000, TCFD

Certifications: ISO 14001, ISO 45001, ISO 9001, FSC

Third-party Assurance: KMR (Korean Management Review)

Sustainable Products & Innovation

• Eco-friendly packaging materials
• Eco-friendly paper products
• Energy-efficient products

Awards & Recognition

• LACP Spotlight Awards (Sustainability Report)
• Various awards for packaging and eco-friendly products

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced wastewater discharge by 15% at Ulsan plant.
• Developed eco-friendly packaging products (Terravas, Protego).
• Achieved 66% of total sales from eco-friendly products (Hansol Paper)
• Hansol Home Deco's SB Maru Ultra Gang product obtained Low Carbon Product Environmental Performance Label Certification.
• Hansol Technics developed high-efficiency low-NOx boiler.
• Hansol Home Deco's New Zealand afforestation project absorbed 149,000 tons of CO2 annually.

Social Achievements

• Established Hansol Management System (HMS) with four organizational principles: immersion, transparency, respect, and speed.
• Launched Hansol V Frontiers, a startup incubation program, resulting in a 6x increase in the value of participating startups.
• Hansol Home Deco provided safety and health management system consulting to 7 partner companies.
• Hansol Technics donated solar power modules to social welfare facilities.
• Hansol Paper established a win-win partnership fund of 60 billion won.
• Hansol Paper achieved EcoVadis Gold rating for three consecutive years.

Governance Achievements

• Implemented a compliance management system and conducted annual compliance management diagnostics.
• Established an ESG indicator management system.
• Hansol Holdings conducted a comprehensive review of the risk management status of all affiliates.
• Seven affiliates voluntarily disclosed corporate governance reports.
• Hansol Holdings implemented a mid-to-long-term shareholder return policy.

Climate Goals & Targets

Environmental Challenges

• Climate change risks and opportunities.
• Supply chain disruptions.
• Compliance risks.
• ESG management challenges across affiliates.

Mitigation Strategies

• Developed alternative sourcing strategies.
• Strengthened compliance management systems.
• Established ESG indicator management system.
• Implemented HSRS (Hansol Safety Rating System) for safety and health management.
• Developed and implemented various ESG initiatives across affiliates.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Win-win partnership programs
• Safety and health management consulting
• Fair and transparent evaluation of partners

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards 2021, ISO 26000

Certifications: ISO 14001, ISO 9001, ISO 45001, IATF 16949, AS 9100, ISMS

Third-party Assurance: Korea Standards Association

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Duracle (nano cellulose)
• Protego (eco-friendly paper packaging)
• Terravas (eco-friendly paper containers)
• Sugar Pack (100% sugarcane paper)

Awards & Recognition

• Korea's Most Respected Company (Hansol Paper)
• AsiaStar Awards 2020 (Protego)
• WorldStar Packaging Award 2021 (Protego)
• Seoul Living Design Fair Award (Hansol Home Deco)