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Environment
Climate Change Response


Direction and Goals

In accordance with the Dongsung Group’s “2050 Carbon Neutrality Vision,” Dongsung Finetec established a target to reduce GHG emissions
by 1,266 tCO₂eq, equivalent to 10% of its 2020 GHG emissions, by 2030. The company continues to monitor changes in GHG emissions
associated with the expansion of its business and production activities, while identifying and implementing carbon reduction initiatives,
including energy efficiency improvements and improvements in production processes and logistics. The reduction effects of carbon reduction
initiatives are calculated and managed against a baseline, defined as the level of emissions before implementation or the estimated level of
emissions that would have occurred in the absence of the initiatives. Dongsung Finetec will continue to review its medium- to long-term GHG
emissions reduction approach, taking into account changes in its business environment and GHG emissions.


[Carbon Reduction Initiatives1)]

1) Restated data due to changes in calculation methodologies for individual initiatives and performance measurement criteria


Performance


Introduction of Inverter-Type Compressors

Dongsung Finetec proactively manages the risk of increased energy consumption that may arise from capacity expansion and continuous
production line upgrades. In particular, we have identified the air compressor system, which accounts for a significant portion of electricity
consumption at our sites, as a key energy-saving area. Accordingly, we replaced aging conventional compressors and introduced high-
efficiency inverter-type equipment in line with new production line expansion, which fundamentally reduces electricity waste, thereby reducing approximately 300 tCO2eq of greenhouse gas emissions annually.

Logistics Process Improvement

In 2023 , Dongsung Finetec pursued activities to reduce fuel consumption and lower greenhouse g as emissions by streamlining logistics
processes. Previously, operations involved re-packaging at an external warehouse, and transporting the materials back to the plant before final delivery, which resulted in the annual consumption of approximately 18,000 liters of fuel. Accordingly, we eliminated unnecessary transporta-
tion stages by improving logistics processes and streamlining delivery routes through direct supply channels. Through this improvement, we
reduced annual greenhouse gas emissions by 48 tCO₂eq.


Solar Power Generation Facilities

Dongsung Finetec is pursuing the installation of rooftop solar power generation
facilities (total capacity: 4.9 MW) at Anseong Plant 1 to reduce greenhouse gas
emissions from operations and enhance energy efficiency. The facility is expected to generate approximately 5,688 MWh of electricity annually, resulting in an estimated greenhouse gas reduction1) of approximately 2,600 tCO2eq. As of June 2026, the
project is undergoing on-site due diligence and structural review, and is being
advanced through subsequent safety inspections and construction procedures with the goal of commencing commercial operation within 2026. Upon completion, the
facility is expected to deliver tangible greenhouse gas reduction benefits.



1) Estimated electricity generation and associated annual greenhouse gas reduction may vary upon final design confirmation.

Proposed Layout of Solar Modules