1. Objective

HD HYUNDAI INFRACORE drives sustainable growth with the environment as a top priority. This is to create a sustainable world with the happiness of customers, business partners, shareholders, and various stakeholders in society through environmentally friendly corporate activities.

2. Scope

The HD HYUNDAI INFRACORE environmental management policy is applied to all members, subsidiaries, and partners of HD HYUNDAI INFRACORE. In addition, we expect our customers and business partners to participate in compliance with environmental policies.

3. Governance

HD HYUNDAI INFRACORE conducts final deliberations, resolutions, and decisionmaking by the ESG Committee, a committee under the board of directors, to promote company-wide environmental management. The CEO makes decisions on main issues for environmental policy implementation and reports key issues to the top decision-making bodies, the Board of Directors and ESG committees, to help them make decisions.

4. Implementation of Environmental Management Policy

HD HYUNDAI INFRACORE officially supports international environmental declarations, criteria, and standards, minimizes environmental impacts during the enterprise activity process, builds a system based on areas related to the environment, and systematically manages overall processes such as status checks and performance management based on internal policies. In addition, we have established and implemented EHS management policies in order to pursue social value as the first priority through environmental management.

1) Environmental Management System

• HD HYUNDAI INFRACORE systematically establishes and periodically evaluates the entire process from setting environmental management goals to planning, implementation, and improvement to minimize the environmental impact of production activities and business facilities.
• All HD HYUNDAI INFRACORE sites are based on compliance with environmental regulations and establish and comply with ISO 14001 by establishing environmental management systems and internal standards.

2) Product

• HD HYUNDAI INFRACORE actively strives to develop products that are environmentally friendly to minimize impacts on the environment and improve sustainability so that the fundamentals of our lives can be passed on to the next generation.
• HD HYUNDAI INFRACORE introduces eco-friendly innovative products such as electrification, alternative fuels, unmanned technologies, improved fuel efficiency, and emission reduction technologies, and strives to create sustainable development for a better future by providing smart construction solutions.

3) Production

• HD HYUNDAI INFRACORE defines environmental management as a key challenge throughout production activities and business facilities and preserves the global environment by reducing greenhouse gases and minimizing pollutants.

Greenhouse Gas/Energy

In order to reduce greenhouse gas emissions in response to climate change, we will do our best to improve energy efficiency and expand renewable energy throughout the entire process of product development, procurement, production, logistics, use, and disposal.
In addition, we will continue to carry out activities with the goal of all sites meeting RE100 in 2040 and carbon neutrality in 2050 by regularly monitoring emission target performance, strengthening investment in energy-saving production processes, and expanding the introduction of renewable energy.

Water/Wastewater

We are striving for efficient use of water resources such as reducing water usage and expanding water reuse.
We are reducing emissions and pollutants by improving the wastewater treatment system, and we will establish a water resource data management system for all sites to promote improvement activities to achieve water goals.

Waste

Regular internal and external verification is conducted, with the establishment and operation of management standards for storage, transportation, and disposal to minimize waste generation and to have effective waste disposal of waste created during the operation of the project.
In addition, recycling of generated waste is considered a priority, and performance is managed on a monthly basis for expected generation and reduction plans.

4) Management

Based on its environmental management goals, HD HYUNDAI INFRACORE is stepping up its enterprise-wide efforts to minimize environmental impact. In addition, we strive to strengthen communication by transparently disclosing detailed items and the performance of environmental management to various stakeholders such as customers and investors according to global standards.

Green Marketing

Based on its environmental management goals, HD HYUNDAI INFRACORE is stepping up its enterprise-wide efforts to minimize environmental impact. In addition, we strive to strengthen communication by transparently disclosing detailed items and the performance of environmental management to various stakeholders such as customers and investors according to global standards.

Reinforce Communication

We are trying to reflect the needs of various stakeholders, strengthen communication, and transparently disclose our environmentally friendly management activities through integrated reports and ESG evaluations of external organizations.

Green Supply Chain and Distribution

For a sustainable supply chain, we define ESG accountability compliance requirements for all partners and operate green purchasing guidelines to meet customer satisfaction and social responsibility through obtaining parts and producing the product in an environmentally friendly way.

Due Diligence, Mergers, and Acquisitions

When pursuing mergers and acquisitions, we conduct a Due-Diligence to identify potential risks that do not meet environmental laws or environmental management system standards and reflect them in the calculation of corporate value.

5) Chemical Substance Management Policy

HD HYUNDAI INFRACORE operates a Material Information Management System to prevent the use of certain substances in products sold and to help all partners comply with the requirements to respond more proactively to national/regional environmental protection.

1. Responds to environmental regulations such as RoHS, REACH (SVHCs), TSCA, and PFSA.

2. Puts the utmost efforts into designing eco-friendly products, evaluates and improves the environmental impact of the entire process, and prohibits and restricts the use of harmful substances in the products.

3. Contributes to the safety of customers and minimizes the impact of ecosystems caused by harmful substances in products.

Section 1 Purpose

HD HYUNDAI INFRACORE Co., Ltd. (hereinafter referred to as the “Company”) aims to fulfill its social responsibility by meeting national policies by enacting green purchase guidelines and producing clean production and eco-friendly high-quality products in order to pursue environmentally friendly management.

Section 2 Subject of Application

It targets all materials (direct materials, indirect materials, facility materials) of all products purchased for the purpose of producing the company's products.

Section 3 Definition of Terms

1. The term “green product” means products under Article 66 (4) of the Framework Act on Carbon Neutrality and Green Growth to Cope with Climate Crisis or the following products.

1-1. (Environmental Labelling Products) Products certified for eco-labeling by improving the environmental performance of products compared to other products of the same purpose pursuant to Article 17 (1) of the Environmental Technology and Industry Support Act.

1-2. (Low Carbon Products) Products that reduce greenhouse gas emissions under subparagraph 9 of Article 2 of the Framework Act on Low Carbon, Green Growth according to the standards determined and announced by the Minister of Environment among products certified for environmental product declaration (EPD) under Article 18 (1) of the Environmental Technology and Industry Support Act.

1-3. (Excellent Recycling Products) Recycling products and products conforming to the same certification standards determined and announced by the Minister of Trade, Industry and Energy pursuant to Article 33 of the Act on the Promotion of Saving and Recycling of Resources and Article 15 of the Industrial Technology Innovation Promotion Act.

1-4. Other goods recognized by the head of the purchasing department

• ① Products that are easy to reuse, recycle, and reuse
• ② Products with low energy consumption
• ③ A durable product
• ④ Products that reduced resource consumption by reducing the size and weight of the product
• ⑤ Products that do not use other hazardous substances, etc
• ⑥ Other similar products

2. The term “green purchase” refers to the purchase of goods prescribed in subparagraph 1.

- The term “head of the purchasing department” refers to the head of the department that performs purchasing affairs on behalf of a company.

Section 4 Roles of Each Body

1. Company’s Purchasing Division

1.1. Establishing standards for green purchases, establishing and managing purchasing procedures, and managing purchase performance of green products

1.2. Environmental review and preferential treatment of green products in addition to quality and price when purchasing goods

1.3. Education in and out of the company and internal and external promotion related to green purchases

1.4. Reporting of annual performance and company announcement

2. Supplier company

2.1. Presenting evidence of green products when signing a product

2.2. Notifying the company when major environmental information of the delivered product is changed after the contract

2.3. Notifying of the purchase status of green products at the request of the company

2.4. Other items that needed in green purchases

Section 5 Purchase of Green Products

1. One can purchase the product that is most suitable for the purpose of purchase among green products by comparing the quality and price of the product one wants to purchase

2. When selecting a supplier through bidding, additional points can be given to green products compared to non-green products.

3. Exceptions for purchasing green products

• If the item of the product one wants to purchase does not have a green product
• Where a product is eligible for a green product line, but there is no product corresponding to the item of the green product one wants to purchase
• Where it is difficult to purchase green products due to their significant deterioration in quality, etc.
• Where it is deemed difficult to purchase green products due to unavoidable reasons, such as the occurrence of urgent demand
• Where urgent demand arises for restoration of damage caused by natural disasters
• Where it is determined by the head of the purchasing Division by other matters

Section 6 Incentives and Preferential Policies

1. Rewards and support may be provided to Supplier company recognized for their excellent performance by diligently fulfilling the obligations of these guidelines.

2. The company may reward departments or individuals who have discovered and accurately implemented green purchase cases

1. Purpose of Enactment

HD HYUNDAI INFRACORE aims for the best safety standards for us under the core value of .Safety for all’. It also promotes the safety of customers, society, and even humanity with safe products and services. The purpose of this safety and health management policy is to protect the safety and health of all stakeholders, including HD HYUNDAI INFRACORE executives, partners, and customers.

2. Scope of Application

The HD HYUNDAI INFRACORE Safety and Health Management Policy is to all members, subsidiaries, and partners who conduct business activities of HD HYUNDAI INFRACORE. In addition, we expect our customers and business partners to participate in compliance with the safety and health management policy.

3. Promotion Department

HD HYUNDAI INFRACORE establishes a Safety and Health Management Committee and conducts final deliberations, resolutions, and decisions on safety and health. The Chief Executive Officer (CEO) checks the adequacy of implementation of health and safety policies and systems, and supports top decision-making bodies, the Board of Directors and the Safety and Health Management Committee, to make decisions on key issues.

4. Safety and Health Management Policy

All HD HYUNDAI INFRACORE workplaces establish and comply with safety and health management systems along with domestic and foreign laws and regulations related to safety and health, and safety and health management standards and guidelines (ISO 45001, etc.)

1) Prevention of Serious Accidents

HD HYUNDAI INFRACORE has established and operated the headquarters’ planning inspection and compliance risk diagnosis system to prevent serious and industrial accidents. The results of safety and health activities are managed as major performance indicators, and we strive to strengthen autonomous safety and health capabilities through active participation and activities of management, such as the CEO-led EHS steering committee.

Management of Workplace Hazards (Risk Assessment, etc.)

All executives and employees participate in regular risk assessments, and executives and employees discover and improve more than two risk factors every year. We are striving to improve potential risk factors through risk factor self-management activities.

Support on Partner’s Safety and Health Systems

HD HYUNDAI INFRACORE forms a safety and health consultative body with its inhouse partners to share safety and health issues and information once a month. We support safety and health consulting for major partners and work together to establish and strengthen safety and health systems.

2) Prevention of Fire Explosion

HD HYUNDAI INFRACORE operates an in-house integrated control center to prevent fire explosions and strives to ensure safety at workplaces and surrounding areas through emergency response systems, real-time transmission of disasters and emergencies, and rapid response.

Fire Prevention and Inspection

HD HYUNDAI INFRACORE continues to invest and improve firefighting facilities to prevent electricity, overheating, and dust-related fires and strives to eliminate vulnerable areas through its own fire prevention inspection twice a year and special diagnosis by external experts.

Emergency Response Training

HD HYUNDAI INFRACORE strives to improve its ability to respond quickly in the event of an emergency by conducting and evaluating emergency response training for all executives and employees twice a year.

3) Spreading Safety Culture

HD HYUNDAI INFRACORE was the first to establish a labor-management joint safety culture organization in Korea and continuously strives to establish and settle the human-centered safety culture to the overall business under all executives and employees’ agreement that “I” am the subject of change for the settlement of the safety culture.

Strengthening safety leadership

HD HYUNDAI INFRACORE strives to take the initiative in every decision to put safety first by management establishing and complying with the safety code of conduct on its own and presenting EHS management direction as a propagator of safety value.

BBS (Behavior Based Safety) Activities

All executives and employees promise and practice core safety actions and strive to establish autonomous safety culture internalization through safety conversations with colleagues.

4) Health Promotion Activities

HD HYUNDAI INFRACORE provides a safe and pleasant working environment and maintain a healthy working life for workers.

Occupational Disease Management

Work environment measurement and harmful factors surveys are conducted to prevent occupational diseases such as noise-induced hearing loss and musculoskeletal conditions, and EHS, labor unions, field managers, and production managers operate consultative bodies for improvement activities. The company strives to prevent noise and musculoskeletal burdening processes through reviewing from new equipment admission and designing to pre-EHS review.

Health Promotion and Job Stress Management

We strive to create a healthy company until retirement age by promoting the management of the three major diseases that usually occur to executives and employees, mental health, and job stress management.

1. Purpose of Enactment

HD Hyundai Infracore; Hereinafter referred to as ‘Our company’ enacted this policy for biodiversity protection and to review and asses possible risks of the loss of biodiversity throughout business operation. The policy was enacted with reference to CBD(Convention on Biological Diversity) of international society, Convention on International Trade in Endangered Species of Wild Fauna and Flora and IUCN(Guidelines for Applying Protected Area Management Categories) of International Union for Conservation of the Natural Resources.

2. Applied Area

Biodiversity Protection Policy applies to Internal and external businesses, executives and employees and subsidiaries of our company. In addition, our company recommends this policy to be adopted by stakeholders including consumers and partner companies. Our company carries out Biodiversity Protection activities based on this policy, however, local Acts and regulations should take precedence.

3. Governance

1) Responsibility

Our company deliberates on and votes for the direction, plan, and implementation of biodiversity protection strategy in our ESG Committee, the supreme decision-making body. In addition, our company controls and supervises the plan and activities for biodiversity protection through the ESG Committee which the CEO and major decision makers participate in.

2) Implementation

Our company carries out work through the division that manages biodiversity protection activity. The division assesses the risks of biodiversity loss, and implements the activities needed for biodiversity protection.

3) Grievance procedures and receipt

Our company operates channels through which domestic and overseas stakeholders can make complaints regarding biodiversity loss which occurs during the operation of our business. Our company prepares measures for the reported complaints, and if our company worries that the reported cases may have a significant impact on the local society or damage the reputation of our company, we will discuss proper measures through the supreme decision-making body, the ESG Committee.

4. Education and Information Disclosure

1) Education

Our company educates executives and employees as well as domestic and overseas stakeholders about biodiversity protection, leading to increased awareness and allowing them take biodiversity protection into consideration while working.

2) Information Disclosure

Our company discloses the status of biodiversity protection activities through external channels such as the integrated report and homepage which domestic and overseas stakeholders can easily access.

5. Principles of Biodiversity Protection

1) Considering International CBD and protected area of IUCN¹, we strive to protect biodiversity

2) Preventing NNL(No Net Loss); the loss of biodiversity in our operations, implementing protection activities for biodiversity, and achieving increase in NPI(Net Positive Impact) by 2050.

3) Supporting for initiatives for protecting biodiversity.

¹ International Conservation Area (IUCN Category Ia etc.), Primoridal Integrity Area(IUCN Category Ib etc), National Protected Area (IUCN Category II etc.), National and Cultural Relics Area (IUCN Category III etc.), Species/Habitat Management Area (IUCN Category IV etc.)

6. Implementation Framework

Our company operates an implementation framework to protect biodiversity near the workplacebased on the principles of biodiversity protection. We follow our implementation framework when launching new businesses and divesting from current businesses. In addition, if stakeholders including state agencies and local communities suggest any concern about the loss of biodiversity as a result of our operations, our implementation framework will also manage this. Through this process, we are able to establish indicators and set goals for managing biodiversity, and implement mitigation measures for conservation, restoration and expansion and establish a monitoring system based on these indicators.

• Assessing Risk of Biodiversity
• Management of Indicators and Goals
• Implementation of Mitigation Measures
• Monitoring System Based on Indicators

1) Assessing Biodiversity Risks

Based on the LEAP(Locate – Evaluate – Assess - Prepare) approach of TNFD (Taskforce on Naturerelated Financial Disclosures) framework, we determine the degree of vulnerability, dependency and influence, and draws prior management areas, determining the impact on natural capital by distinguishing risk and opportunity through an analysis of scenarios.

2) Establishment of Indicators and Management of Purpose

(1) Establishment of Indicators : Our company establishes and manages indicators throughout the business through the assessed result of biodiversity risks. In addition, we identify protected species and protected areas of analysis boundaries for domestic and overseas operations and manage reservation of population and areas.

(2) Management of Purpose : Our company establishes mid to long term goals for protection of biodiversity throughout our business and periodically inspect the implementation status. We establish goals by combining the assessed result, domestic and overseas regulations and opinions of stakeholders.

3) Implementation of Mitigation Measures

Based on the indicators and purposes established previously, implements mitigation measures localbasis for for conservation, restoration to expansion if necessary, enacts to minimize the negative impact on business operation cooperating with the stakeholders.

4) Monitoring Based on Indicators

Periodically inspect the adequacy of quantitative management indicators and implementation status and progress for the purpose continuously monitoring the effectiveness of mitigation measures for conservation, restoration and expansion.

* This policy was enacted on March 25, 2024.