ENVIRONMENT

▪︎ EHS Organisation

▪︎ Environmental Performance Management Systems and Certificate

*OHSAS 18001 initial certification year, transition from OHSAS 18001 to ISO 45001 successfully passed in 2021.
※ KIF: Kyung-In Factory. Incheon Factory (KIF1, KIF2)/ Ansan Factory (KIF3)/ Sihueung Factory (KIF4,KIF5)/ Iksan Factory (KIF6)/ Yesan Factory (KIF7)

▪︎ Status of environmental management education

*Number of course completions in 2022.

▪︎ Environmental management and production department feedback system

KISCO operates a production feedback system that allows employees to freely suggest and comment on practical issues related to manufacturing sites. These include issues that are closely related to the environment in accordance with KISCO’s environmental management vision and core values that pursue green growth considering the environment and humans. Selected proposals are immediately put into action and performance is managed. Proponents of outstanding proposals that are selected each year are rewarded to encourage active participation from employees.

▪︎ Feedback processing and reward procedures

▪︎ Status of environmental management feedback submissions and implementations

Subtotal of environmental management proposals Energy/water conservation Reduction of pollutants Submissions Implementations Submissions Implementations 28 14 8 14 5

* Proposals submitted from January 1, 2022, to December 31, 2022, for KIF1 to KIF7 of KISCO

▪︎ 2022 Excellent Proposal Award

Best Proposal Award (KIF1)

KIF1, 2 (Outstanding and Most Proposals Award)	KIF3 (Outstanding and Most Proposals Award)

KIF4 (Outstanding and Most Proposals Award)	KIF5 (Outstanding and Most Proposals Award)

KIF6 (Outstanding and Most Proposals Award)	KIF7 (Outstanding and Most Proposals Award)

▪︎ Environment Management laws/regulations and environmental accident response

To respond to strengthening environmental regulations, both domestically and internationally, KISCO has established dedicated teams for each area and continuously monitors all related laws and regulations, as well as guidelines from various domestic and international government and private initiatives. KISCO has established procedures to comply with these regulations and introduced management systems to manage each item.

▪︎ Monitoring status of laws/regulations

▪︎ Environment Management System

▪︎ Environment Management System KISCO manages environmental impacts by adopting various systems such as monitoring environmental substances, managing chemical substances, complying with regulations and carrying out environmental impact assessments. A key tool for managing our data is our Environmental Management System (EMS). The system enables real-time measurement-based monitoring of energy resources and data through a network of environmental sensors. The system is underpinned by an integrated environmental monitoring system that includes monitors for electricity and air quality.

– Real-time measurement-based monitoring of energy resources and data through a network of environmental sensors. – Integrated environmental monitoring system that includes monitors for electricity and air quality

▪︎ Chemical Substances Management System KISCO’s electronic Chemical substances Management System (eCMS) is a substance management and regulation database. It includes over 40,000 domestic and 400,000 overseas-registered chemical substances. It assists compliance with 15 environmental safety regulations including the Korean Chemical Evaluation Act, the Korean Chemicals Act, the Industrial Safety Act and similar regulations in 47 other countries. The system enables the proactive review of information related to purchase, manufacturing, handling, licensing, performance management and partnering. The system also has an integrated MSDS inventory management module.

▪︎ Environmental Impact Assessment Management – ISO 14001 The environmental team of KISCO established a process to conduct initial, regular and random environmental impact assessments according to the following procedures. Following the audits, corrective actions are initiated if any activities deviate from internal regulations.  1) Evaluation of internal and external issues and stakeholder requirements  2) Evaluation of process, environmental aspects, environmental impacts and materiality issues  3) Air, water quality, waste, noise/vibration, odor, soil contamination, resource/energy consumption audits

▪︎ Supply Chain Risk Management

KISCO is striving to grow together based on collaboration with suppliers, emphasizing human rights and the environment, and building a sustainable supply chain. With the goal of recognizing and managing the transparency of the supply chain, we are enhancing supply chain ESG (Environmental, Social, and Governance) risks by supplementing diagnostic items for non-financial risks such as human rights and the environment, in addition to risk factors related to product supply such as finance and quality. We have established a supplier code of conduct and demand compliance from our suppliers.

▪︎ Supply Chain Risk Management Process ▪︎ We utilize a multi-assessment approach to ensure the transparency of diagnostics. ▪︎ We will make continuous efforts to build a more responsible supply chain through ongoing process enhancement.

▪︎ Supplier Code of Conduct
Download Supplier Code of Conduct

▪︎Environmental Management Status

▪︎ GHG Emissions In Korea, renewable energy sources currently account for less than 10% of electricity generation and the government has targets to increase this to 21.6% by 2030. For GHG emissions, the Korean government targets are a 40% reduction by 2030 and 100% by 2050 (based on a 2018 baseline). As mechanisms become available, KISCO plans to contract increasing amounts of renewably generated electricity.  In line with the implementation of a GHG emission trading system in Korea, KISCO manages carbon emissions based on the revised guidelines: “Reporting and Certification of Greenhouse Gas Emission Trading System (No. 2021-10)” published by the Korean Ministry of Environment. These guidelines are based on those published as part of IPCC 2006.

▪︎ Air Pollutant Emissions: NOx, SOx, Dust Through the Air Environment Conservation Act the Korean Government has established targets for the emission of air pollutants such as Nitrogen Oxides (NOx), Sulfur Oxides (SOx) and dust. KISCO has set internal control limits that are well below these levels. KISCO has also established processes for identifying excess emissions and for taking corrective actions in case emissions are found to exceed internal management standards. RTO and HTO facilities have been installed to reduce pollutants discharged into the atmosphere and prevent air pollution. Since 2019 KISCO has achieved reductions in SOx and dust emissions through a combination of new facilities and process improvements.

▪︎ Water Emissions: COD, BOD, SS In order to contol the emission of water pollutants from production activities, KISCO records data for Chemical Oxygen Demand (COD), Biochemical Oxygen Demand (BOD) and Suspended Solids (SS). Our in-house targets are more strict than required by regulations or standards that apply to our production. All water used in production processes is discharged through our own wastewater treatment facilites or local, joint treatment facilities. Water quality is continuously evaluated and managed.

▪︎ KISCO Resource Circulation

KISCO Corporation strives to practice resource circulation by establishing processes for reviewing the recycling of by-products and waste generated during manufacturing processes, and continuously expanding cases of waste reuse and recycling, prioritizing resource efficiency and sustainability.

▪︎ Process for reviewing waste recycling

▪︎ Cases of waste recycling ▪︎ * Recycling of by-products from manufacturing processes ▪︎  – Reuse of reverse osmosis water generated during manufacturing processes: 5 tons/day (KIF6) ▪︎  – Reuse of waste acids as neutralizing agents in wastewater treatment: 3 tons/month (KIF6) ▪︎  – Reuse of waste acids as raw materials in manufacturing processes (KIF7) ▪︎ * Development of waste recycling applications ▪︎  – Reuse of 40% of incinerated waste organic solvents through collaboration with recyclable companies (KIF6) ▪︎  – 100% recycling of previously landfill-disposed acids through development of recycling applications (KIF6)

▪︎ Environmental Impact Management

KISCO has installed Regenerative Thermal Oxidizer (RTO) and Hybrid Thermal Oxidizer (HTO) facilities at a number of sites. These units reduce the emission of harmful substances. In particular, we have reduced atmospheric hydrocarbon emissions by 99.9%. In addition, waste heat from the units is captured and re-used leading to energy savings for those functions of approximately 50%.

– Investment in RTO and HTO Facilities – Status of Thermal Oxidation Facilities

Facility Intallation status RTO (Regenerative Thermal Oxidizer) Air pollutants and odorous substances are burned at high temperatures to decomposition. Waste heat is captured and re-used within the unit itself. ※ KIF2, KIF3: Installation completed ※ KIF6, KIF7: Installation is under consideration HTO (Hybrid Thermal Oxidizer) Air pollutants and odorous substances are burned at high temperatures to decomposition. Waste heat is captured and used in other parts of the facility. ※ KIF4, JMC: Installation completed

※ KIF: Short for Kyung-In Factory Incheon Factory (KIF1, KIF2)/ Ansan Factory (KIF3)/ Siheung Factory (KIF4, KIF5)/ Iksan Factory (KIF6)/ Yesan Factory (KIF7)

▪︎ Environmental impact target and performance management ▪︎  – Management of pollutant discharge after installation of KIF4 HTO (2022 performance) ▪︎

▪︎ Wastewater Treatment Facilities KISCO has its own wastewater treatment facilities in 3 of the 7 domestic factories in Korea. The other factories use local, joint wastewater treatment or consignment of waste treatment depending on the region and the type of wastewater. In order to reduce wastewater generation and water usage, KISCO continues to make efforts to reuse and recycle wastewater through self-treatment or consignment treatment.

▪︎ Wastewater Treatment Facilities Process

▪︎ Environmental data management

▪︎ GHG (t-CO2 eq) Emission Management

Emissions Unit/Year 2020 2021 2022 Direct Emissions(Scope1)¹⁾ t-CO2eq 6,901 9,333 8,435 Indirect Emissions(Scope2)²⁾ t-CO2eq 14,210 16,675 16,735 Total t-CO2eq 21,111 26,008 25,170 Sales Intensity³﹚ t-CO2eq/10 mil KRW 9.8 9.4 10.2

1) Scope 1 includes the carbon that is generated during the manufacturing of our products. Calculations are based on the Korean Ministry of 1)Environment Notice “Guidelines for Reporting and Certification of Emissions of Greenhouse Gas Emissions Trading System 1)(Ministry of Environment Notice) (No. 2021-10)”. The above greenhouse gas emissions are the sum of the total emissions limited 1)to the domestic business sites of KISCO and are not subject to the greenhouse gas emission trading system of the Korean Ministry 1)of Environment. 2) Scope 2: includes carbon generated from indirect sources, including that generated during the production of electricity and steam used 2)on our sites. 3) Sales intensity: Greenhouse Gas Total Emissions (Scope 1+2) / Total Revenue

▪︎ Air/water pollutant emissions management

Sort Unit/Year 2020 2021 2022 Air pollution¹﹚ NOx TON 6.0 12.0 7.5 SOx TON 1.5 0.7 0.1 Dust TON 3.2 1.6 1.5 Water pollution²﹚ TOC³﹚ TON – – 7.0 COD TON 3.8 9.2 8.6 BOD TON 2.2 5.4 3.9 SS TON 1.0 2.0 2.4

* In 2020, the productoin volume of each workplace decreased due to the influence of COVID-19. 1) Based on data submitted to the Korean Government Stack Emission Management System (SEMS) or self-measurement records measured 1) by an external company. The total emissions for each domestic factory are summed – – Self-measurement record (measurement of external companies) standard for workplaces with less than 3 types (KIF3,5,6,7) that are not – – subject to SEMS input 2) Based on data summed and submitted to the Korean National Pollutant Survey (water quality) and the total emissions of KISCO notified 2) by the wastewater plant or consignment treatment company – – Wastewater facilities, or with self-measurement records based on the data submitted to the Korean National Pollutant Survey – – Discharge water after treatment at a joint treatment facilities in the area 3) From 2022, the nationwide pollution source survey (water quality) management item will be changed from COD to TOC and reflected 3) in our management item. – – Errors were found in the calculation details of the existing posted content on water pollution substances, and it has been corrected.

▪︎ Water resources data

Sort Major Business Locations Sort Unit/Year 2020 2021 2022 Water Usage Incheon Factory¹﹚ Industrial Water TON – – – General Water TON 134,923 207,944 170,256 Gyeonggi factory¹﹚ Industrial Water TON 59,621 69,233 73,557 General Water TON 49,926 44,468 40,020 Iksan, Yesan Factory¹﹚ Industrial Water TON 2,819 6,214 7,155 General Water TON 9,979 8,474 10,321 Seoul Office¹﹚ General Water TON 5,017 4,664 2,920 Total Usage Industrial Water TON 62,440 75,447 80,712 General Water TON 199,845 265,550 223,517 Total TON 262,285 340,997 304,229 Wastewater Discharge²﹚ Total Discharge TON 170,630 242,221 217,337

1) Based on the water bill issued per business location 1)– Incheon (KIF1, KIF2) / Gyeonggi (KIF3, KIF4, KIF5) / Iksan, Yesan (KIF6, KIF7) / Seoul Office (Office building, Research institute). 2) Based on data summed and submitted to the Korean National Pollutant Survey (water quality) and the total emissions of KISCO notified 2) by the wastewater plant or consignment treatment company – – Wastewater facilities, or with self-measurement records based on the data submitted to the Korean National Pollutant Survey – – Wastewater joint treatment / consignment treatment facilities’ establishment is based on data on the bill

▪︎ Waste Management by Disposal Method

Type of occurrence Processing type Unit/Year 2020 2021 2022 General Waste Landfill TON 404 599 749 Incineration TON 405 461 395 Recycling TON 1,813 4,004 3,910 Subtotal TON 2,622 5,065 5,054 Designated Waste Landfill TON 1,467 964 767 Incineration TON 4,549 5,631 2,558 Recycling TON 5,448 5,734 7,644 Subtotal TON 11,463 12,329 10,969 Total Waste Generation TON 14,085 17,394 16,022 Waste Recycling Amount TON 7,261 9,739 11,553 Waste Recycling Rate % 52% 56% 72%

* Figures based on data submitted to Korean government system and from recycling companies * Recycled waste rate = recycled waste/total waste * We have updated the type classification errors and missing data from the existing posted content.

▪︎ Energy Consumption

Energy is mainly used for production. The energy sources are electricity, Liquified Natural Gas (LNG), steam, diesel and heating oils. To calculate the quantity of energy consumed in our production sites the amounts of electricity, LNG, diesel and heating oils are converted to terajoules of energy using conversion factors from the GHG protocol. These are reported in the following tables. KISCO determines our energy intensity using sales of production in metric tons as our denominator. Our energy intensity measure includes all types of energy for our operational emissions (Scope 1 and Scope 2). KISCO plans to report Scope 3 energy consumption in upcoming reports.

▪︎ Energy saving activities

In order to reduce energy use and respond to climate change, we are investing in facilities to improve energy efficiency. This includes smart eco-factory projects and running campaigns to reduce energy and water consumption.

▪︎ LED Light Replacement

–	Replacing halogen and incandescent bulbs with LEDs has led to a 40% reduction in electricity consumption
	for lighting : Expanding the application to more business sites

▪︎ Rainwater Harvesting

–	By converting sewage treatment facilities into rainwater collecting facilities, we enabled the re-use of
	collected rainwater for domestic and industrial water to minimize water consumption.
–	Collecting rainwater for use as process water in production activities

▪︎ External Wall Insulation

–	Upgrading the thermal insulation in the walls of our facilities has been carried out. We estimated that this will reduce
	energy consumption for heating and cooling in production by 38,089Kwh (reduce greenhouse gas emission by 17.5CO2eq.)

Before construction	After construction

▪︎ Energy Saving Campaigns

–	In-house energy efficiency campaigns are being run. These promote the maintenance of office temperatures
	of 26 – 28ºC in summer and 18-20ºC in winter.
–	We also promote powering off un-used equipment when absent.
–	Improve production equipment efficiency through regular maintanance checks.

▪︎ Environmentally Friendly Vehicle Ownership Ratio: 19%

–	Based on corporate-owned or registered vehicles (including registered forklifts).
–	Environmentally Friendly Vehicle Ownership Ratio = Number of Electric and Hybrid Vehicles / Total Number of Vehicles

▪︎ Energy usage management

* Calculations are based on the Korean Ministry of Environment Notice “Guidelines for Reporting and Certification of Emissions of Greenhouse Gas Emissions
– Trading System (Ministry of Environment Notice) (No. 2021-10)”.
* The above greenhouse gas emissions are the sum of the total emissions limited to the domestics business sites of KISCO and are not subject to
– the greenhouse gas emission trading system of the Korean Ministry of Environment.
* We have updated the previous post to include the missing data.
– 1) Unit: Energy Usage Total Emissions / Total Revenue

▪︎ Eco-friendly certification and initiative activities

As a member of the Global Green Certification and Related Initiative, we design and produce environmentally friendly and secure products.

Eco-friendly Certification

▪︎ bluesign®
KISCO has been certified as a bluesign® system partner since 2010. The bluesign® system is a sustainable certification system for the entire textile industry supply chain. The system oversees and manages production processes for five key areas: corporate resource productivity, consumer safety, air pollution, water pollution, and work health and safety, and independent audits identify improvements and validate processes. Over 200 of our textile dye products have been approved by bluesign®. More detailed information can be found via the link below https://www.bluesign.com/en

▪︎ GOTS (Global Organic Textile Standard)
The goal of GOTS is to define the requirements that organic textile products must meet, ensuring the safe use of textile products by ensuring that the entire process is environmentally and socially responsible from harvesting raw materials to final labeling. Our company has received GOTS certification for over 150 dye and ink products. KISCO’s compliance with GOTS is certified by ECOCERT. More information can be found via the link below. https://global-standard.org/

▪︎ ECO PASSPORT by OEKO-TEX®
ECO PASSPORT BY OEKO-TEX® is a chemical, dye and additive certification used in textile and leather production. This means that they are responsible for production and handling chemicals to protect people and the environment, and our certified dye and ink products are proof that they are suitable for sustainable textile production. Our company has passed the certification standard for over 30 ink products. More information can be found via the link below. https://www.oeko-tex.com/en/our-standards/oeko-tex-eco-passport

▪︎ Green Guard
GREENGUARD Certification is an environmentally friendly certification program issued by UL, a global safety standard certification organization, for indoor air quality. It evaluates and certifies various products such as building materials, office furniture, and electronic products to ensure compliance with indoor environmental and air quality standards. It rigorously measures the emission levels of volatile organic compounds, formaldehyde, respirable particles, and other substances that can cause allergies, respiratory disorders, and neurological disorders. Our UV ink product has passed the GREENGUARD Gold Certification standard, and you can find more details at the following link. https://www.ul.com/services/ul-greenguard-certification

Initiative Activities

▪︎ ZDHC
The ZDHC (Zero Discharge Hazardous Chemicals) Foundation is a cooperative organization composed of brands, factories, chemical manufacturers and certification bodies, aimed at minimizing environmental pollution throughout the textile industry and improving sustainable chemical management within the supply chain. Managing harmful substances in the manufacturing process is essential, and the foundation operates various programs to integrate regulatory targets and levels to apply them on-site. KISCO has been an active ZDHC Contributor since 2019. Over 400 of our dye and ink products comply with both product hazard and production environmental assessment criteria and are registered on the ZDHC Gateway. Further information can be found via the following link. https://www.roadmaptozero.com/

▪︎ SCTI
SCTI (Sustainable Chemistry for Textile Industry), launched in 2020, is an alliance of leading chemical companies that aims to enable the textile and leather industries to apply cutting-edge sustainable chemical solutions to protect factory workers, local communities, consumers, and the environment. Our company, along with Archroma Textile Effects, CHT Group, Pulcra Chemicals, Rudolf Group, and Tanatex Chemicals, is a founding member of SCTI. SCTI and its members are collaborating with bluesign® to develop the Sustainable Chemistry Index, a sustainability index for products and companies. More information is available via the link below. https://scti.org/

▪︎ Environmentally-friendly sales performance

* Yearly sales performance of products certified by third-party environmental certifications such as GOTS and ECO-PASSPORT
– The list of certified products may vary by year, and sales performance is calculated based on products certified in each respective year.
* Environmentally Friendly Sales Ratio = Environmentally Friendly Sales / Total Sales of KISCO