01.CEO Statement The world is facing environmental problems, such as resource depletion, environmental pollution, and global warming. KMW Co., Ltd. is also affected by climate change and internationalization. Such international issues are changing the supply chain trading principles of global companies that we do business with. To respond to new opportunities and risks, and to also create a better world, KMW Co., Ltd. will respond to issues and fulfill our social responsibilities for a sustainable society.

02. Energy and Climate Change Since the Kyoto Protocol was adopted in 1997, it has become clear that the effects of climate change and global warming have a significant impact. We believe that greenhouse gas emissions of companies contributed the most to the abnormal temperatures that frequently occur in Korea. KMW Co., Ltd. intends to participate in the preservation of the environment by managing energy and greenhouse gases through the cooperation of employees, stakeholders, and customers.

We are carrying out various projects to save energy and reduce greenhouse gases like building greenhouse gas inventories and implementing carbon management since 2010, as well as promoting green SCM (Supply Chain Management) with our suppliers since 2013. We will internalize a greenhouse gas reduction strategy for all executives and employees, from the process improvement stage to the entire operation of the factory.

03.Carbon & Energy Management KMW Co., Ltd. has designated a QS team dedicated to carbon management for sustainable environment preservation and has given all departments the roles and responsibilities to plan and manage. All employees practice carbon management policies. Most greenhouse gas generated by KMW Co., Ltd. is due to LNG combustion, such as boilers, and consumption of externally purchased power.

The focus of carbon management in KMW Co., Ltd. is on fixed combustion during direct emissions and power management during indirect emissions. Energy management not only reduces greenhouse gas emissions, but also improves production efficiency, resulting in cost savings to greatly help improve management. KMW Co., Ltd. will continue to take the lead in energy saving and greenhouse gas reduction.

04.EHS Management Starting with the ISO 14001 certification of Dongtan Factory in 2001, KMW Co., Ltd. acquired the ISO 14001 certification of all business sites in Korea. Since 2012, KMW Co., Ltd. Has established a global environmental management system by acquiring ISO 14001 certification of all overseas business sites. KMW Co., Ltd. is operating an advanced environmental management system at the supply chain level by conducting an integrated certification system audit.

We have organized environmental management via various programs such as education. We are computerizing chemical substance information by applying the MADAMS II IT system, a chemical substance management system, and using this data to preemptively respond to environmental regulations. We are also responding to the regulation of new EU chemical substances, implementing a policy to prohibit the use of ozone-depleting substances, implementing a plan to prohibit the use of four heavy metals, and eco-designing considering recycling.

05.Quality Management KMW Co., Ltd. continuously improves its competitiveness by adhering to the design process, securing the best parts, operating the optimized manufacturing process, and continuing improvement activities.