Sustainability

Hanwha Corporation is growing faster than ever as a global company now, with endless innovations and
growth in both business and technology. We proudly introduce you to the present and the future of Hanwha corporation,
which continues our journey towards a more sustainable future.

SHE Management System

Global

SHE Policy

Hanwha Global is committed to a sustainable future through the establishment, implementation, and active enhancement of the SHE management system.
  1. 1. Make Safety, Health, Environment our Priority

    Prioritizing the safety, health, and environment of employees, contractors, customers, and the local community,
    among other stakeholders, and all employees voluntarily participate.

  2. 2. Striving a Self-regulation Culture with Regulatory Compliance

    Striving for the internalization of self-regulation grounded in safety, health, and environmental compliance, across
    all organizational activities, including manufacturing, construction, trade, and research and development.

  3. 3. Contribute to Climate Crisis Response and a Sustainable Future

    Striving for business growth in harmony with the environment through carbon neutrality, resource recycling,
    biodiversity conservation, improved pollutant emissions, and the provision of eco-friendly solutions.

  4. 4. Securing SHE Capabilities and Enhancing Mutual Cooperation

    Ensuring that all employees and contractors acquire the necessary capabilities for SHE management and
    actively promote mutual cooperation with stakeholders.

  5. 5. Achieve Social Responsibility and Ensure Transparency

    Upholding our social responsibility to achieve mutual growth with stakeholders, we transparently disclose
    our SHE management performance.

Momentum

SHE Policy

Hanwha Corporation/Momentum recognizes safety & health as the top priority core value underlying social responsibility and company’s sustainable growth.
Executives and employees should follow the laws and regulations in all activities of their duties and to achieve a disaster-free and healthy workplace.
  1. 1. We must comply with safety and health laws, establish an autonomous safety culture in which executives and employees actively participate, and create a trusted workplace by managing leading indicators.

  2. 2. Actively identify potential risk factors in all of our activities and Create a safe workplace through continuous improvement.

  3. 3. Establish a crisis management response plan and conduct preemptive management, education, and training. In the event of disaster, minimize the disaster by operating a response system without delay.

  4. 4. Executives and employees should actively participate in preventing accidents, improving the working environment, preventing pollution, and promoting health for fulfilling eco-friendly occupational desease-free workplaces.

  5. 5. Safety and health management activities shall be transparently disclosed to stakeholders, such as executives and employees, partners, and customers, and communicate sincerely

Yang Kiwon
Hanwha Momentum CEO

E&C

SHE Policy

Hanwha Corporation/E&C does its best to establish a culture that prioritizes Safety,
Health and Environment for the values of human respect and environmental protection.
  1. 1. Safety, Health and Environment priority management

    The management takes initiative by leading the voluntary participation and active practice of all employees, subcontractors, and workers by setting the Safety, Health and Environment as the top priority.

  2. 2. Compliance with Safety, Health and Environment laws

    All executives and employees shall ensure a safe and clean working environment in compliance with the relevant laws and regulations, and actively participate in environmental activities of the local community to do their best in corporate social responsibility.

  3. 3. Communication with stakeholders including workers

    We ensure that workers can participate and discuss Safety, Health and Environment and communicate openly with stakeholders based on honesty and transparency.

  4. 4. Continuous improvement of business processes

    We regularly inspect the Safety, Health and Environment work process and continuously improve it.

  5. 5. Pollution prevention and environmental protection

    We strive to develop eco-friendly technologies and products to minimize emissions of greenhouse gases and pollutants.

Seung Mo Kim Seung Mo Kim
Hanwha E&C CEO

SHE Management System

MISSION

2022 GROUP SAFETY & ENVIRONMENT LEADING COMPANY
2026 GLOBAL SAFETY & ENVIRONMENT LEADING COMPANY

VISION

Safe and Healthy life to Everyone, Everywhere!
Beneficial to our Environment and the Community!

Strategic Direction

  • Internalization
    of Safety
    Culture
  • Advancement of
    Management
  • Enhancement of
    Capabilities
  • Response to
    External
    Regulations

Greenhouse Gas Management

Implementation of Emission Trading System

Hanwha Corporation has been selected as the target management company for the trading system since June 2012. Selected as allocated companies, Yeosu and Onsan plants have been participating in the emission trading system.
Starting in 2021, the third planning period for the emission trading system, the scope of allocated companies expanded to all business sites of Hanwha Corporation, further increasing the importance of accurate emission predictions and supply management. Accordingly, we are working even harder to limit our greenhouse gas emissions with our efforts such as making adjustments in the manufacturing process and installing additional solar panels.


Greenhouse Gas Reduction Activities

The ‘N2O Emission Reduction’ of the Global Division’s Onsan plant has been certified by the United Nations Framework Convention on Climate Change (UNFCCC) as a Clean Development Mechanism (CDM) business and has been in operation since 2007. The business secures certified emission reductions(CER) based on reduction performance with the reduction business that removes N2O, a greenhouse gas that is generated in the manufacturing process of nitrate, at the reduction facilities. Based on our domestically certified emission reduction performance, we have reduced a total of 2 million tons of greenhouse gas emissions. In 2020, we secured additional CERs through about 300,000 tons of reductions. In 2021, we will install N2O reduction facilities in the new nitrate plant, the expansion of which has been decided in 2021, and will continue our pursuit of greenhouse gas reduction activities.
Furthermore, the Defense Division increased the efficiency of its boilers by establishing a waste boiler heat recovery system in the Yeosu plant. This was recognized as an internal reduction performance by K-ETS and enabled the Defense Division to reduce an annual average of 517 tons of greenhouse gases. The reduction of greenhouse gases will be used as CERs for the third greenhouse gas emission plan.

Occupational Safety & Health Management

COVID-19 Response and Prevention

2020 was a year of continued crises and difficulties due to the global outbreak of COVID-19. Hanwha Corporation established and implemented response strategies to overcome the pandemic quickly and systematically and to provide a safe and healthy environment for all employees and on-site personnel. In addition, we are striving to overcome the global pandemic hand in hand with our executives and employees as well as various stakeholders, including our suppliers and local communities, and lay the foundation for coexistence in a safe society.

Establishment of an
emergency response system
  • Established response processes in case of confirmed cases at the plants (organized an emergency response TF)
Infection prevention
activities in the workplace
  • Temperature checks and constant health monitoring of executives and employees
  • Distributed COVID-19 prevention management guidelines (regular updates and posts on the company’s web portal)
  • Conducted regular quarantine and disinfection of the plants, constant monitoring of compliance with quarantine safety rules
Support through provision
of protective equipment
  • Provided PPE such as masks and hand sanitizers to executives and employees
  • Provided self-quarantine expenses for executives and employees returning from overseas business trips (up to 14 days)
Support for symptomatic
employees
  • Fully supported COVID-19 testing expenses in cases of confirmed cases at the plants
  • Implemented an expanded remote work and flexible working system (executives or employees switch to remote work in advance if a family member is experiencing health issues)
Protection management at
overseas plants
  • Daily monitoring for resident and local employees in foreign countries
     - Infection prevention process similar to guidelines for plants in Korea
  • Continuously sending protective equipment such as self-examination kit and masks to all employees on long time business trip
Support for a safe working
environment
  • Implemented active remote work through self-diagnosis of health conditions
    (simplified procedures, including prior approval)
  • Managed the proportion of employees working from home by stage; for instance, in the case of confirmed cases or related issues, we implemented remote work for all employees except for the minimum manpower necessary
Support towards the safety
and health of suppliers
  • Provided PPE such as masks and hand sanitizers to suppliers
image of Support for the Safety and Health of the Local Community
Support for the Safety and Health of the Local Community

Hanwha Corporation donated various hygiene products and protective equipment to safeguard the local community from the risk of COVID-19 infection and to promote the safety and health of the local community. In February 2020, we provided protective equipment, including 150,000 masks, for vulnerable populations and medical professionals in Daegu and Gyeongsangbuk-do where COVID-19 was rapidly spreading. In March 2020, we donated funds for overcoming COVID-19 to families of veterans, such as Persons of National Merit. During winter, when COVID-19 and influenza prevailed at the same time, we assumed our responsibility in securing the safety of the local community as a topmost priority in the face of social and economic crises by producing and delivering personal hygiene kits to 10,000 households from vulnerable populations.


Employee Health Promotion

Hanwha Corporation upholds maintaining the health and safety of all our employees as the root and primary principle for achieving our ESH management vision and operates a variety of health management and promotion programs for all our employees.

Employee Health Management Program
  • Operation of health administration offices at each plant
  • Assessment, analysis, and improvement actions of job stress factors
  • Risk assessment and follow-up management of cerebrovascular disease
  • Health checkups for all executives and employees and comprehensive health checkup reflecting individual needs for executives and employees aged 35 and older and their spouses
Health Checkups in 2020 (Unit: persons)
Employee Spouse Total
2,858 1,834 4,692
Employee Health Enhancement Program
  • Exercise programs for executives and employees with high blood pressure, diabetes, dyslipidemia, urinalysis, and obesity
  • Mental health promotion programs, such as smoking cessation and obesity clinics, alcohol treatment and rehabilitation programs, and nutrition improvement programs
  • Check stress, depression, and alcohol dependence through a survey, select risk group subjects, and support individual counseling with an external professional counselor

Work Environment Management

Hanwha Corporation endeavors to protect our employees and workers from harmful factors and to provide a safe and pleasant work environment. For all harmful factors, we collect the MSDS and provide the information to our employees and closely monitor the health of staff who are exposed to specific harmful factors by conducting special checkups.
In addition, we measure and manage the work environment and exposure to harmful factors by establishing internal standards that are stronger than the legal standards in order to provide a safer working environment to our employees. Through these efforts, we achieved 'ZERO' Occupational Illness Frequency Rate(OIFR) in all our business divisions for the past three years.


Safety Climate Diagnosis and Evaluation

Hanwha Corporation has developed a Safety Climate measurement program to establish a more mature safety culture. We measure Hanwha Corporation’s overall Safety Climate level as well as strengths and weaknesses of each specific indicator and establish effective safety culture strategies that are optimized for our organization.


Implementation of ‘Safety Day’

Hanwha Corporation designates a cycle for each plant and implements a 'Safety Day' participated by all employees. On 'Safety Day', the plants share information on the importance of safety and raise awareness by suspending all production in the plants, sharing their on-site improvement activities, such as various safety-related education and training sessions, intensive inspection activities, and small group safety improvement meetings, sharing results and feedback, and concentrating only on safety and health activities.

Minimizing Environmental Impact

Air Pollutant Management

Hanwha Corporation conducts various activities to minimize the generation of air pollutants such as total hydrocarbons (THC) and nitrogen oxides (NOx) which are the principal sources of fine dust.
As a means to reduce the emission of air pollutants, we invested in new preventive facilities, including improvement of existing air pollution prevention facilities, installation of SCR (Selective Catalyst Reduction) in the manufacturing processes, replacement of boiler burners (low-NOx burners), and installation of air pollutant prevention equipment at the rear of the organic solvent storage tank.
Furthermore, we have implemented and are operating the 'ESHG (Environment Safety Health Greenhouse-Gas) System', which is our internal environmental management system, to accurately monitor air pollutants. Through these efforts, Hanwha Corporation currently manages the emission levels of air pollutants at 50% or less compared to legal standards and plans to develop and apply a new ESHG program to establish a more sustainable environmental management system.


Water Resource Management

Hanwha Corporation is continuously monitoring and investing in facilities for sustainable water resource management. We gain trust in our pipes by conducting periodic leak detections for water and wastewater pipes buried within the company. We have also expanded and installed new facilities for water conservation.
In the case of Yeosu Plant of the Defense Division, we minimized the discharge of pollutants by establishing a water pollutant (NO3, COD, SS, pH, etc.) and water nlet/discharge new monitoring system for the total nitrogen treatment plant, and prevent risks of water contamination beforehand.


Resource Circulation Activities

Hanwha Corporation recognizes the gravity of resource depletion and environmental problems caused by waste and strives to transition to a circular economy that uses resources efficiently.
We aim to minimize generation of waste in our business and production processes, maximize resource efficiency by establishing a resource circulation process that recycles inevitable waste as much as possible, and minimize the environmental impact of waste.

Waste Management Hanwha Corporation minimizes the amount of waste generated by managing waste sources and promotes eco-friendly management activities by thoroughly separating generated waste and maximizing recycling. The entire process of tracking, managing, and treating generated waste is monitored through the government’s ‘Allbaro System’, and the collected data is analyzed to come up with measures to reduce the amount of waste generated and to make improvements in management. Additionally, we introduced a real-name policy for waste management to encourage all employees to be more responsible in disposing and recycling waste. Based on these efforts, the Yeosu Plant of the Defense Division received a commendation from the Minister of Environment for four resource recycling and waste reduction activities, including the reuse of ethanol byproducts as carbon sources for wastewater treatment.

Development of Plastic Waste Recycling Facility The Momentum Division working on new technologies to recycle plastic waste, one of the main culprits of environmental pollution. We are dedicated to create a greener ecosystem that recycles plastic through consistent R&D activities such as extracting oil through pyrolysis and reusing it as fuel.

Voluntary implementation
of a fine dust reduction project

Boeun Plant of the Global Division has signed a voluntary fine dust reduction project agreement with Geumgang Basin Environment Agency and manages fine dust generated at plant by applying standards that are stricter than the permissible emission standards. In addition, the Daejeon Plant of the Defense Division is also implementing the 'Voluntary Reduction Agreement for Fine Dust Reduction'. As a leading green company, Hanwha Corporation will continue to protect the environment of local communities.

보은사업장 미세먼지 자발적 저감 사업 협약식 사진

Signing Ceremony for Voluntary Fine Dust Reduction (Boeun Plant)

Hanwha Corporation’s Yeosu Plant receives the Resource Circulation Leading Company Prize

Based on our drive to realize eco-friendly management, Hanwha Yeosu Plant of the Defense Division created an eco-friendly plant which minimizes environmental impact to come within 10% of the average emission unit of the industry in air pollutant emission, water pollutant emission, and waste generation by establishing, implementing, and continuously improving ESH management plans.
In addition, in order to reduce the environmental load throughout
the entire production process, we
established a byproduct reuse system with
the mindset that waste is another resource
and actively promoted activities to reduce
the amount of waste generated and raw
materials consumed.
We received a commendation from the
Minister of Environment in 2016 and
have been continuously maintaining and
improving the virtuous resource circulation
system ever since.

(주)한화 여수사업장 자원순환 선도기업 표창장 사진
  • Best Practice 1
    Reuse of ethanol by-products as external carbon sources for wastewater treatment

    Conceived from the idea that methanol is used as an external carbon source in the denitrification process of wastewater treatment, we reuse 50% of the ethanol by-product generated in the dehydration process as a wastewater treatment chemical, whereby we are able to achieve two positive effects of suppressing the generation of ethanol byproduct wastes and reducing the use of methanol, a toxic substance prone to accidents.

  • Best Practice 2
    Reuse of by-products of dilute sulfuric acid as a PH adjuster for wastewater

    Conceived from the idea that sulfuric acid is used to neutralize pH increased in the denitrification process of the wastewater treatment facility, we reuse the by-products of dilute sulfuric acid (70%) as a wastewater treatment chemical, whereby we are able to reduce generated waste alongside the economic effect of reduced cost of separately purchasing concentrated sulfuric acid.

  • Best Practice 3
    ZERO generation of sludge from the production process by changing the wastewater treatment system

    When we operated the wastewater treatment facility for the process separately from the wastewater treatment facility within the plant, we came across the problem of both process sludge and organic wastewater sludge generating together. In order to improve the efficiency of sludge coagulation and dewatering, we integrated the treatment for process wastewater and industrial wastewater. As a result, we were able to reduce the generation of inorganic sludge to zero, and reduce the purchase cost of coagulant aids and increase ewatering efficiency by integrating the treatment of wastewater containing large amounts of coagulants.

  • Best Practice 4
    Reduction of wastewater sludge by replacing the filter plate of the dehydrator in the wastewater treatment plant

    In order to improve the shortcoming that the filter plate of the dehydrator is frequently deformed, whereby lowering efficiency in dewatering the sludge, we switched to a material with higher elasticity that can withstand higher dewatering pressure than the existing material. Changing the material of the filter plate resulted in elongation of the filter plate’s lifespan, and we were able to reduce not only the generation of organic wastewater sludge due to the decrease in moisture content of the wastewater sludge, but also the generation of filter plate waste.

Waste Plastic Recycling Process
Input waste plastic/Gasification of waste plastic by low-temperature pyrolysis/Emulsification, refinement of pyrolysis gas/Production of refined oil = Production of refined oil

SHE Major Achievements

Key Performance in Climate Change

  • image of icon
    250,000 tCO₂-eq
    Information Disclosure
    Participation in
    climate change initiatives
    (Based on Korea Offset Credits
    (KOC) implementation year)
  • image of icon
    Developed & expanded
    low-carbon,
    green businesses
    All divisions of
    Hanwha Corporation
  • image of icon
    Now under a more advanced
    estimation system
    Scope 3 emissions

Key Performance in ESH Management

  • image of icon
    for greater work
    efficiency
    Separated the environmental management
    module from safety and
    health module
  • image of icon
    KRW 20.4 billion
    Environmental investments
    and spending
  • image of icon
    Conducted the first
    ecological survey
    of biodiversity in
    the off-site vicinity
    of the Boeun Plant under
    the Global Division

ESH Management and Response to Climate Change

Environment
Greenhouse Gas(GHG)
Classification Unit 2020 2021 2022
Total GHG emissions
(Scope 1 + Scope 2)
tCO₂-eq 60,851 64,822 64,263
Direct emissions (Scope 1) 15,749 24,553 20,368
Indirect emissions (Scope 2) 45,102 40,269 43,895
GHG emission intensity (based on nonconsolidated sales1) tCO₂-eq/
KRW 100 million
1.14 1.24 1.06
Other indirect emissions (Scope 3)2) tCO₂-eq N/A 3,912,742 4,236,881
Reduction of GHG emissions3) Clean Development Mechanism
(CDM)-related emission reduction
438,759 354,382 293,153
External emission
reduction
427,856 344,250 287,290

1) GHG emission intensity is calculated based on nonconsolidated sales, which is based on the three business divisions(Global•Momentum•E&C) in 2022.
2) Scope 3 emissions data in 2019 was not calculated and the data in 2020 was marked as not applicable due to the unavailibility of excluding Defense division data before the business reorganization.
3) CDM related emission reduction and external emission reduction are based on the year when Hanwha Corporation obtained a KOC(Korea Offset Credits) certificate.

Energy
Classification Unit 2020 2021 2022
Total energy consumption1) TJ 974 800 912
Non-renewable energy consumption Direct energy consumption 214 201 212
Indirect energy consumption 927 766 912
Renewable energy consumption2) Total consumption MWh 18.25 18.25 18.25
Consumption intensity
(based on nonconsolidated sales3)
TJ/
KRW 100 million
0.01830 0.01536 0.01507

1) Total energy consumption = non-renewable direct energy consumption + non-renewable indirect energy consumption + renewable energy consumption - energy sold.
2) Self-generation through PV generation.
3) Consumption intensity is calculated based on nonconsolidated sales, which is based on the business divisions(Global•Momentum•E&C) in 2022.

Air Pollutant Emission Concentration1)
Classification Unit 2020 2021 2022
Nitrogen oxide (NOx) emissions Ton 5.03 5.04 8.44
Sulfur oxide (SOx) emissions 0.03 0.01 0.00
Dust 4.08 1.62 1.26

1) Air pollutants only applies to Global Division.

Water Pollutants1)
Classification Unit 2020 2021 2021
Total Organic Carbon (TOC) Ton 0.47 0.46 0.10
Biological Oxygen Demand (BOD) 0.45 0.44 0.50
Suspended Solids (SS) 0.37 0.77 1.19

1) Water pollutants only applies to Global Division.

Water and Wastewater
Classification Unit 2020 2021 2022
Water consumption1) Total water consumption Ton 687,293 756,399 1,053,328
Groundwater 208,989 193,664 210,609
Third-party water2) 477,317 562,735 842,719
Amount of wastewater released 36,318 50,270 50,447
Amount of wastewater consigned 3,203 2,725 2,920

1) Freshwater is the only type of water used. Water consumption in 2019-2021 is the combined amount of two divisions(Global·Momentum) and water consumption in 2022 is the combined amount of three divisions(Global·Momentum·E&C).
2) Third party water : Water from municipal water suppliers and wastewater treatment plants, public or private utilities and other organizations involved in the provision, transportation, treatment or use of water and wastewater (ex: public water supply).

Hazardous Chemical Substances1)
Classification Unit 2020 2021 2022
Amount of hazardous chemical substances used Ton 245,929 149,638 202,228

1) Hazardous chemical substances only applies to Global division.

Waste
Classification Unit 2020 2021 2022
Total waste generation Ton 261,344.3 288,913.5 424,690.6
General wast 1,357.7 1,192.4 964.2
Specified waste 55.2 73.0 123.1
Construction waste 259,931.4 287,648.1 423,603.3
Amount of recycled waste 13,263.8 9,299.6 13,261.0
Cost for waste disposal1) Ton/KRW 1 million 4.91 5.55 7.02

1) Cost for waste disposal is calculated based on nonconsolidated sales, which is based on the business divisions(Global•Momentum•E&C) in 2022.

Environmental Training and Education
Classification Unit 2020 2021 2022
Total hours of environmental training and education Hours 5,542 1,450 4,810
Number of attendees Persons 561 461 697
Environmental Investments and Expenditures1)
Classification Unit 2020 2021 2022
Environmental investments KRW 100 million 8 10 13
Environmental expenditures 140 135 191

1) Environmental investments and expenditures in 2022 include E&C division and exclude Defense division due to the business reorganization.

Environmental Regulations1)
Classification Unit 2020 2021 2022
Number of violations of environmental regulations2) Cases 0 0 1
Penalty and fine for noncompliance with environmental regulations KRW 0 0 3,000,000

1) The number of violations of environmental regulations and fines in 2023 are based on the business reports, which includes the Defense division, and the combined amount of fines excluding penalties is different from last year's official data.
2) Imposition of fine in Defense division due to a violation of Chemical Substances Control Act.

Safety and Health
Occupational Accidents
Classification Unit 2020 2021 2022
Occupational accident rate1) Direct employees % 0.02 0 0.02
Contractors 0.86 1.43 1.49
Number of serious accidents2) (Fatalities excluded) Direct employees Cases N/A N/A 0
Contractors N/A N/A 0
Lost Time Injury Rate(LTIR)3) Direct employees
Per 1,000,000 hours - 0.11 0.00 0.09
Per 200,000 hours 0.02 0.00 0.02
Contractors
Per 1,000,000 hours - 3.46 4.54 6.02
Per 200,000 hours 0.69 0.91 1.20
Occupational Illness Frequency Rate(OIFR)4) Direct employees
Per 1,000,000 hours - 0.00 0.00 0.00
Per 200,000 hours 0.00 0.00 0.00
Contractors
Per 1,000,000 hours - 0.74 1.09 0.41
Per 200,000 hours 0.15 0.22 0.08
Total Recordable Incident Rate(TRIR)5) Direct employees
Per 1,000,000 hours - 0.11 0.00 0.00
Per 200,000 hours 0.02 0.00 0.02
Contractors
Per 1,000,000 hours - 4.20 5.63 0.00
Per 200,000 hours 0.84 1.13 1.29

1) Occupational accident rate = (number of victims from occupational accidents / number of workers) * 100.
2) Serious accidents which are subject to Serious Accident Punishment Ac.t
3) LTIR = (Number of lost time injuries / total hours worked) * benchmark hours.
4) OIFR =(Number of occupational diseases / total hours worked) * benchmark hours.
5) TRIR = (Number of work-related incidents / total hours worked) * benchmark hours * Benchmark hours: 1,000,000 hours or 200,000 hours.

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