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

SHE Policy

Hanwha Defense is committed to do our best through the establishment, implementation, and continuous effort to improve our SHE management policy for the achievement of our vision as above and for sustainable development.
  1. 1. Priority safety, health and environment management
    The safety, health and environment of employees, contractors, customers, visitors and communities are top priority. No work shall be performed unless safety is ensured.
  2. 2. Comply with regulations and establish of safety culture
    As the member of our family and SHE community, all executives and employees shall comply with the related laws and all requirements and establish a proactive and preventative safety culture through communication.
  3. 3. Ensure preemptive stability and minimize environmental load
    Recognize and assess the risks and environmental impacts that may occur during all organizational activities. Try to eliminate risks and environmental impacts.
  4. 4. Secure competency and enhance voluntary participation
    All employees & contractors shall be equipped with the necessary capabilities through education and training, and be sure to participate in voluntary safety activities to prevent accidents.
  5. 5. Strengthen ESG management and Achieve social responsibility
    Promote ESG management activities actively for sustainable management and achieve social responsibility through win-win cooperation with local communities and stakeholders.
Seung Mo Kim
Hanwha Defense CEO
1st April 2021
Seung Mo Kim

SHE Policy


Hanwha Global is committed to creating a sustainable future through the establishment, implementation, and continuous effort to improve our SHEC management policy.
  1. 1. Make safety, health, environment our priority
    Ensure that the safety, health, and the environment of our employees, contractors, customers, visitors, and communities always come first and will not undertake a task unless its safety is ensured.
  2. 2. Comply with the law and establish a preemptive and preventive safety culture
    For all organizational activities including production, trade, research and construction will perform in law and establish a preemptive and preventive safety culture.
  3. 3. Minimize pollutant and allows low carbon, green growth
    Minimize greenhouse gas emissions and pollutants by using resources and energy efficiently and use eco-friendly alternative energy etc.
  4. 4. Secure SHEC capability and strengthen communication/participation
    Ensure all our employees have the necessary capabilities for SHEC management and actively promotes two-way communication as well as voluntary participation.
  5. 5. Achieve social responsibility and ensure transparency
    Make our SHEC Management performance public and strive to continually improve our SHEC management policy.
Maeng Yoon Kim
Hanwha Global CEO
29th March 2021
Maeng Yoon Kim
ECO-YHES

ECO-YHES

The “HES” in ECO-YHES stands for “Health”,
“Environment”, and “Safety” together with the
positive word “Yes” in the form of forest
(to represent the environment).
It is an inherent value of corporate management
for sustainable company development
and social responsibility.

Hanwha Corporation/Momentum continuously
promotes the following items in recognition of
the necessary principle of “fulfilling company
development and social responsibility” through
the company’s activities and services to prevent
pollution, damage, and minimize hazardous materials.

Fulfilling Company Development and Social Responsibility

Fulfilling Company
Development
and Social Responsibility

  • Continuous
    improvement of
    prevention of
    harm to personnel
    and damage
    to assets

    1. Provide education and training for all personnel to actively participate in

    2. Fix dangerous elements in all activities and facilities

    3. Improve dangerous and hazardous work environments and operate health -enhancing activities
  • Continuous
    low-carbon
    green growth
    and prevention
    of environmental
    pollution

    1. Minimize pollution emissions from waste

    2. Reduce greenhouse gas emissions and use energy efficiently
  • Environmental
    Health and Safety
    regulations and
    additional
    requirements

    1. Comply with Environmental Health and Safety regulations and additional requirements the organization agrees to comply

In addition we are building an efficient Environmental Health and Safety management system for our entire workforce and improving maintenance and results. We must carry out regular inspections. I am the head of the Environmental Health and Safety Team and the Environmental Health and Safety management representative, entrusted with those responsibilities and jurisdiction. On behalf of this organization, this policy should be communicated with all stakeholders upon request and all personnel so that it can be implemented.

Kyeong-seak Ok
Hanwha Momentum CEO
Kyeong-seak Ok

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

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.

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.

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.

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.

  • 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

Key Performance in Climate Change

  • image of icon
    CDP
    Information Disclosure
    Participation
    in climate change initiatives
  • image of icon
    288,038 tCO₂-eq
    GHG Reduction
  • image of icon
    95,602 tCO₂-eq
    Total GHG Emission
    (Domestic, Scope 1+2)

Key Performance in ESH Management

  • image of icon
    YHES
    Establishment of an integrated
    information system
    (YHES) for environment and safety
  • image of icon
    0 cases
    of serious accidents

ESH Management and Response to Climate Change

Environment
1) Greenhouse Gas Emissions
Unit 2018 2019 2020
GHG Emissions (Scope 1 + 2, Domestic) tCO₂-eq 102,662 180,086 95,602
Scope 1 (Direct GHG Emissions) 45,071 127,765 39,079
Scope 2 (Indirect GHG Emissions) 57,607 52,333 56,534
Scope 3 - - 984,497
Reduction of GHG Emissions 295,502 344,250 288,038
2) Energy Consumption
Unit 2018 2019 2020
Total Energy Consumption (Domestic) TJ 1,663 1,773 1,781
Electricity 966 1,073 1,160
Fuel 703 706 628
Others 4 4 4
Cost for Total Energy Consumption KRW 100million 259 238 236
Energy Consumption againstproduction costs* TJ/KRW 100million 6.42 7.45 7.55
Total Renewable Energy MWh 274 272 262

*Production costs: The sum of costs incurred in product production, such as material costs, labor costs, and expenses

3) Air Pollutants Emissions
Unit 2018 2019 2020
NOx Tons 26 32 41
SOx 1 1 1
Dust 8 6 9
4) Hazardous Materials
Unit 2018 2019 2020
Amount of Hazardous Materials used Tons 243,882 389,117 278,341
5) Water Consumption
Unit 2018 2019 2020
Total amount of water consumption Tons 1,807,551 1,857,542 2,045,577
Water Supply (Domestic) 86,248 79,132 62,856
Groundwater (Domestic) 361,611 366,160 595,126
Industrial water 1,359,692 1,412,250 1,387,595
6) Water Pollutants Emissions
Unit 2018 2019 2020
Discharge of Wasterwater Tons 653,822 589,711 566,952
Chemical Oxygen Demand (COD) 19 16 37
Biological Oxygen Demand (BOD) 8 10 20
7) Waste
Unit 2018 2019 2020
Total waste generated (Domestic) Tons 5,152 5,529 3,918
Total waste recycled 2,709 3,358 1,937
Landfill (General) 456 252 253
Incineration (General) 1,454 1,388 1,443
Landfill (Designated) 19 72 22
Incineration (Designated) 95 107 173
Others 419 353 91
Cost for Waste Disposal KRW 100 million 11 11 9
8) Environmental Training and Education
Unit 2018 2019 2020
Total hours of training and education Hours 18,440 9,272 20,722
Number of participating employees Persons 3,892 3,461 3,561
9) Environmental Investments and costs
Unit 2020
Environmental investments KRW 1 million 2,179
10) Environmental Regulations
Unit 2018 2019 2020
Number of environmental violations of legal obligations Cases 2 1 5
Penalty and fine for non-compliance with environmental regulations KRW 2,800,000 480,000 4,200,000
Safety and Health
1) Workplace Safety and Health
Unit 2018 2019 2020
Number of work-related accidents Direct Employees Cases 4 2 5
Contractors 2 2 8
LTIR (Number of lost time injuries for
the year * 1,000,000)/
(Total hours worked for the year)
Total 1.44 0.95 0.94
Direct Employees 1.38 0.74 0.46
Contractors 1.73 1.78 2.61
OIFR (Number of occupational diseases
for the year * 1,000,000)/
(Total hours worked for the year)
Total 0.00 0.00 0.00
Direct Employees 0.00 0.00 0.00
Contractors 0.00 0.00 0.00
2) Safety and Health Management System
Unit 2020
Number of ISO 45001 certified worksites Worksites 2
Number of OHSAS 18001(or KOSHA 18001)
certified worksites
4