Koh Young

Environmental Management System

Environmental

Management

Policy

1. Continually improve environmental management performance

We continually improve environmental management performance by systematically establishing, advancing, and executing the environmental management system effectively.

2. Leading efforts to respond to climate change

We recognize that the climate change crisis is a serious threat to the survival of humankind and make continued efforts to establish an eco-friendly ecosystem to overcome the climate change crisis, including reducing GHG emissions, minimizing the use of hazardous substances, and efficiently using resources.

3. Environmental value-based management activities

At all stages of business activities including product planning, development, production, sales, and disposal, we efficiently improve the use of resources and energy consumed and minimize the harmful effects on the environment.

4. Fulfill environmental obligations

We safely and effectively manage harmful and hazardous substances that we handle or arise in our processes in line with relevant international standards and strictly comply with environmental laws and regulatory standards that directly apply.

5. Support stakeholder participation

We raise all employees’ environmental awareness through environmental education and make environmental preservation activities a part of our daily lives. We share our policy and support programs so suppliers can participate in eco-friendly management, thereby continually maintaining win-win relations.

Execution

Organization

To implement eco-friendly management, we operate the Working-level ESG Council, an organization dedicated to ESG, under the ESG Committee. Consisting of working-level staff in different areas, the Working-level ESG Council holds regular and irregular meetings to discuss pending matters and issues related to eco-friendliness. It professionally handles the establishment of improvement tasks by area, reports, inspections, and monitoring.

Execution

Organization

Role

Department	Key Tasks
Quality Management Team	Establish an environmental management system (ISO14001) and systematically manage it Take corrective measures to rectify nonconformities
Safety and Health Part General Affairs Part	Manage environmental safety training of employees/suppliers and campaigns, as well as training on preventing environmental safety incidents Manage environment related complaints and administrative matters
Facilities Management Team	Manage energy (reduction of electric power/water consumption, reduction of waste) Manage energy efficiency-improvement facilities and environmental pollution prevention facilities
SCM Team	Communicate with suppliers on environmental management Conduct regular supplier evaluations
Corporate Planning Team	Manage performance in the environmental sector, respond to evaluations, review financial impact, etc.

Eco-friendly

Management Plan

for 2024

Category	Q1	Q2	Q3	Q4
Eco-friendly campaigns (Campaign on refraining from using disposables, energy-saving campaign, etc.)	●	●	●	●
Environmental education (Spreading environmental management awareness among employees)		●		●
GHG monitoring (Regularly by workplace)	●	●	●	●
GHG reduction activities (Adopt electric vehicles, adjust indoor temperatures at workplaces, etc.)	●	●	●	●
Increased use of new & renewable energy (Install photovoltaic power generation facilities, etc.)				●

Climate Change Risk Management

Risk/Opportunity Response Process

To establish climate change response strategies and derive countermeasures, we analyze and identify transition and physical risks and opportunities in business strategy and financial impact aspects.

Risk Types and Countermeasures

Physical Risks Countermeasure

The report published by the IPCC (Intergovernmental Panel on Climate Change) on climate change indicates that ‘if global temperatures continue to rise due to climate change, there will be an increase in natural disasters such as heatwaves, floods, earthquakes, and an escalation in the frequency of tropical storms, along with rising coastal sea levels on both land and sea’. To prevent cost increases that may arise from such physical risks, Koh Young Technology conducts proactive management through risk/opportunity monitoring to identify and manage the risks identified in advance.

Transition Risks Countermeasure

At the 56th session of the IPCC held in April 2022, a report was adopted stating that in order to limit the global temperature increase to 1.5°C, worldwide net greenhouse gas emissions should be reduced by 43% by 2030 compared to 2019 levels and by 84% by 2050. Koh Young Technology is actively establishing and maintaining greenhouse gas reduction targets to respond to climate change.

Risk Types and

Countermeasures

Category		Time	Financial Impact	Countermeasure
Physical Risks	Acute	Short-term	Typhoons, floods, drought, etc. resulting in reduced production capacity of worksites and increased restoration costs Increased operating costs due to higher electricity usage during heatwaves	Reduce costs by improving energy efficiency (assess worksite facilities and processes, etc.) Need to develop strategies to address physical risks
	Chronic	Mid-Long-Term	Increased operating costs due to higher electricity usage as average temperatures rise Increased labor costs for forming dedicated teams to develop and implement response strategies
	Chronic	Mid-Long-Term	Damage to and decreased value of tangible assets, including buildings, factories, machines, and facilities A rise in social issues regarding waste treatment
Transition Risks	Policy and Regulation	Short-Term/ Mid-Long-Term	Increased costs for purchasing emission allowances and potential costs from carbon tax introduction Increased product costs due to rising electricity prices	Investment in renewable energy facilities Reduction of electricity costs through decreased power consumption
	Reputation	Short-Term/ Mid-Long-Term	Decrease in investments when ESG ratings drop due to insufficient climate response efforts	Expanded disclosure of eco-friendly information internally and externally
	Market	Mid-Long-Term	Reduced product demand and sales, based on failure to satisfy consumer requirements	Establishment of mid-to long-term greenhouse gas reduction targets and initiatives Expedite product development by applying eco-friendly parts