ENVIRONMENT

▪︎ EHS, Environmental Organization

▪︎ Environmental Performance Management System:
▪︎ Sustainable Management and ESG Certification Status

In addition to the global standard certifications ISO 9001, ISO 14001 and ISO 45001 for environmental and occupational health and safety management, KISCO has sustainability certifications applicable to each industry that we work in. We incorporate these regulations into our management practices for sustainable management.

▪︎ 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

KISCO has obtained ISO 14001 certification, a global standard certification for environmental management systems, at some of its facilities and has established the integrated ‘KISCO Safety, Health, and Environment Management Policy’. This policy is deployed across all facilities. We also operate environmental monitoring systems and chemical management systems to efficiently monitor energy resources, pollutants, chemicals and other environmental-related aspects and to manage environmental risks in real-time.

▪︎ 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 Policy

KISCO aims to grow together with its partners by building a sustainable supply chain based on mutual cooperation, with a strong focus on human rights and the environment. KISCO is committed to recognizing and managing supply chain transparency and continues to improve its ESG-related risk assessment system each year — not only evaluating financial and quality risks related to product supply, but also strengthening diagnostic criteria for non-financial risks such as human rights and environmental impact.

▪︎ Supplier Code of Conduct
KISCO’s Supplier Code of Conduct was established to ensure that suppliers uphold human rights and environmental values while pursuing mutual respect and co-prosperity with KISCO. The goal is for suppliers to participate in creating sustainable value through social responsibility. KISCO’s suppliers are required to comply with this code. ▸ Download Supplier Code of Conduct

▪︎ Supply Chain Risk Management Process
KISCO regularly assesses and manages risk factors within its supply chain. To ensure transparency in these evaluations, multi-layered evaluation methods are used. The company continues to advance its processes to build a more responsible supply chain.

▪︎ Environmental Impact Management

▪︎ Pollutant Emissions Management Activities

KISCO strictly complies with legal emission standards for air and water pollutants and has established even stricter internal management standards to further minimize the release of environmental pollutants.

▪︎ Reduction of air pollutant emissions

KISCO establishes internal management standards that are more stringent than the legal emission standards and continues to invest in facilities to prevent air pollution, aiming to minimize the emission of air pollutants.

▪︎ Investment in RTO and HTO Facilities

In order to prevent air pollution and to enable energy savings through the reuse of waste heat, RTO (Regenerative Thermal Oxidizer) and HTO (Heat Transfer Oxidizer) facilities have been installed. These facilities reduced hydrocarbon emissions by 99.9% and save approximately 50% of energy usage for heating by utilizing recovered waste heat.

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. ※ Installation confirmed for KIF6 plant by 2025 ※ Installation under review for KIF7 plant 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

▪︎ Environmental Impact Target and Performance Management ▪︎  – Management of pollutant discharge after installation of KIF4 HTO ▪︎

▪︎ Steam recycling from HTO operation at KIF4
– A total of 419 MT of recycled steam in 2024 was used to produce hot water, which was reused as cleaning water.

▪︎ Reduction of Water Pollutant Emissions

To minimize the discharge of water pollutants, KISCO establishes and manages more stringent internal management standards than the legal discharge limits specific to each area where its facilities are located. Recycled water is used in many areas and some domestic facilities have their own wastewater treatment plants.

▪︎ Wastewater Treatment by Business Site
Among KISCO’s seven domestic manufacturing sites, five are equipped with in-house wastewater treatment facilities. Wastewater and waste liquid are actively reused and recycled.

Category Business Site In-house Wastewater Treatment Facility KIF1, KIF2, KIF3, KIF4, KIF6 Regional Joint Wastewater Treatment KIF4 Commissioned Waste Liquid Treatment KIF2, KIF5, KIF6, KIF7

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

▪︎ Wastewater Treatment Process

▪︎ KISCO Resource Circulation

KISCO reviews the recycling of waste resources, such as byproducts and waste materials, that are generated during manufacturing processes. We aim to expand the practice of resource circulation through continued reuse and recycling of waste resources.

▪︎ Process for Reviewing Waste Recycling

▪︎ 22024 Waste Resource Recycling Cases and Performance
– Reuse of Steam Condensate: 10,037 tons
– Reuse of Excess Steam during HTO Operation: 419 tons
– Recycling of Waste Organic Solvents and Residual Liquids: 97 tons

▪︎ Environmental data management

▪︎ GHG (t-CO2 eq) Emission Management

Emissions Unit/Year 2022 2023 2024 Direct Emissions(Scope1)¹⁾ tCO2eq 8,423 7,210 7,038 Indirect Emissions(Scope2)²⁾ tCO2eq 15,473 14,847 15,199 Total tCO2eq 23,897 22,058 22,237 Sales Intensity³﹚ tCO2eq/10 mil KRW 9.5 10.2 9.3

– TCalculated based on national methodology from the Ministry of Environment’s notification: Guidelines on Emissions Reporting – and Verification for the Greenhouse Gas Emissions Trading Scheme (MOE Notification No. 2021-10) – The aforementioned greenhouse gas emissions refer to the total emissions aggregated from the domestic business sites of KISCO, and neither – the aggregated emissions nor individual sites are subject to the Ministry of Environment’s greenhouse gas emissions trading system. 1) Scope 1: Carbon emissions potentially generated during the manufacturing process of LNG, gasoline, diesel, and the company’s products, 1) calculated based on chemical formulas. 2) Scope 2: Calculated based on the supplier’s invoices for electricity and steam usage. 3) Emissions intensity = Total greenhouse gas emissions / Total revenue.

▪︎ Management of Air and Water Pollutant Emissions

Sort Unit/Year 2022 2023 2024 Air pollution¹﹚ NOx TON 7.5 3.5 5.8 SOx TON 0.1 0.9 1.4 Dust TON 1.5 0.8 0.7 Water pollution²﹚ TOC³﹚ TON 7.0 4.7 4.8 BOD TON 3.9 2.0 3.5 SS TON 2.4 2.2 2.2 Wastewater discharge volume⁴﹚ Total discharge volume TON 223,440 216.327 223,865

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. 4) The total discharge volume of each domestic business site of Kyeongin Yanghang, as notified by the submitted data from the nationwide 4) pollution source survey (water quality) and by the joint or consigned treatment facilities: – – For businesses with wastewater treatment facilities and self-measurement record books, based on the submitted data from the nationwide – – pollution source survey. – – For businesses with joint or consigned treatment facilities, based on the data provided in the notification.

▪︎ Waste Management by Disposal Method

Type of occurrence Processing type Unit/Year 2022 2023 2024 General Waste Landfilling TON 749 400 227 Incineration TON 395 351 244 Recycling TON 3,910 3,689 3,523 Neutralization Treatment TON – – 80 Subtotal TON 5,054 4,440 4,074 Designated Waste Landfilling TON 767 694 443 Incineration TON 2,558 3,031 1,437 Recycling TON 7,644 5,698 7,310 Neutralization Treatment TON 369 369 663 Subtotal TON 11,338 9,792 9,822 Total Waste Generation TON 16,392 14,232 13,896 Waste Emissions Target TON 17,322 17,072 16,946 (Emission Volume Ratio Compared to Target) % 95% 83% 82% Waste Recycled Volume TON 11,553 9,387 10,832 (Waste Recycling Rate) % 70% 66% 78%

* Calculated by aggregating data from the Allbaro System reports for waste generation by KISCO’s domestic sites, and data * from waste disposal/recycling invoices issued by consigned processors. * Recycled waste rate = recycled waste/total waste * A new category for “neutralized waste” has been added.

▪︎ Ratio of Eco-Friendly Vehicles Owned

KISCO continues to replace newly acquired or outdated business-use vehicles with eco-friendly models to reduce environmental impact.

구분 2023 2024 Ratio of Eco-Friendly Vehicles Owned 27% 35%

* Based on vehicles owned or registered under the corporation’s name * Eco-Friendly Vehicle Ownership Ratio = 25 electric/hybrid vehicles / 71 total vehicles (as of 2024)

▪︎ Energy and Water Resource Usage Reduction Activities

KISCO practices energy efficiency improvements for climate change adaptation, investing in facilities to reduce energy usage, implementing smart eco-factory projects, and conducting campaigns for household energy and water usage reduction. In addition, it sets energy and water resource reduction targets for each facility based on production plans, establishes activity plans for reduction, and manages performance accordingly. Some facilities also use recycled steam for all steam required for manufacturing.

▪︎ Performance of Greenhouse Gas Reduction Projects through Energy Savings

Each KISCO manufacturing site operates GHG reduction projects through energy savings. Sites establish their own KPIs for reducing energy use and track reduction results through efforts such as introducing high-efficiency equipment/parts, process optimization, process improvement R&D, recycling, and the use of renewable energy. 2024 Greenhouse Gas Reduction Project Results

▪︎ External Wall Insulation

KISCO has implemented insulation on its exterior walls, resulting in an annual energy saving of 65,801kWh for heating and cooling needs.

Before construction	After construction

▪︎ Rainwater Harvesting

Through the Smart Eco-Factory project, KISCO converted sewage treatment facilities into rainwater utilization facilities. Collected rainwater was then used for production processes, thereby reducing the consumption of tap water. * In 2024, rainwater reuse volume was 216.0m³, achieving 80% of the target.

▪︎ Energy Usage Management

* Guidelines on Reporting and Verification of Emissions under the Emissions Trading Scheme” (Notification No. 2021-10) (2022 basis)
* 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.
1) Unit: Energy Usage Total Emissions / Total Revenue
2) The amount of energy from renewable sources provided by the supplier

▪︎ Water Usage Management

Sort Major Business Locations Sort Unit/Year 2022 2023 2024 Water Usage Incheon Factory¹﹚ Industrial Water TON – – – General Water TON 170,256 156,798 153,612 Gyeonggi factory¹﹚ Industrial Water TON 73,557 69,706 72,616 General Water TON 40,020 24,595 30,101 Iksan, Yesan Factory¹﹚ Industrial Water TON 7,155 11,749 10,165 General Water TON 10,321 9,333 8,834 Seoul Office¹﹚ General Water TON 2,920 3,267 3,598 Total Usage Industrial Water TON 80,712 81,455 82,781 General Water TON 223,517 193,993 196,145 Total TON 304,229 275,448 278,926 Water Usage Targets Total TON 363,258 310,297 312,604 Achievement Rate % 116% 111% 111% Reuse of Water Total Discharge TON – 3,570 3,650

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).

▪︎ 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 40 ink products. More information can be found via the link below. https://www.oeko-tex.com/en/our-standards/oeko-tex-eco-passport

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 Signatory Chemical Formulator 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

KISCO calculates its eco-friendly sales based on the annual sales performance of products certified by third-party environmental standards such as GOTS and ECO-PASSPORT. In 2024, the number of products certified with GOTS increased by approximately 30% compared to the previous year, resulting in growth in both eco-friendly sales volume and ratio. KISCO plans to continue expanding its portfolio of certified eco-friendly products.

1) Certified products may vary by year, and sales performance is based on the products certified for each specific year.
2) Environmentally Friendly Sales Ratio = Environmentally Friendly Sales / Total Sales of KISCO