EHS Management Policy

Dongsung Finetec has established and implements an EHS management policy to maximize eco-friendly outcomes through our products and
technologies while minimizing environmental impacts. In particular, we strive to establish a global-level environmental management system in
the areas of climate change response, product eco-friendliness, resource circularity and efficient management, and eco-friendly workplace
management.

Direction and Goals

Dongsung Finetec promotes environmental management not only to comply with environmental regulations but also to reduce environmental
impacts across all business activities. We continually undertake improvement activities to minimize greenhouse gas emissions and regularly
monitor our greenhouse gas emission performance. In addition, we have set an emissions reduction target of 10% by 2030 compared to 2020, and are accordingly implementing necessary measures. We carry out environmental enhancement initiatives across the entire product lifecycle by promoting resource circulation and minimizing waste generation and the use of hazardous chemicals. In terms of waste management, we
implement reduction activities by establishing management plans and decreasing the generation of designated waste through solidification.
Furthermore, we maintain ISO 14001 certification and strengthen practical capabilities by providing regular environmental education for all
employees, workplace environmental managers, and suppliers.

[Environmental Management Goals and Performance]

Performance

Carbon Reduction

Waste Management

Management of Waste Streams and Internal Waste Classification

Dongsung Finetec classifies and manages waste generated in workplaces from the point of generation according to waste characteristics and hazards. Workplace waste is classified into designated waste and general waste, with designated waste being safely handled through licensed treatment companies approved by the Ministry of Environment. From the point of generation to final disposal, all processes are systematically
tracked in accordance with the Waste Control Act, and generation, transportation, and treatment records are reported through the “Allbaro”
system. In addition, we enhance transparency and efficiency in waste management by tracking and managing daily treatment volumes for both designated and general waste.

Increasing Waste Recycling Rates

Dongsung Finetec entrusts more than 90% of generated waste to recycling companies. Because waste generally has relatively high calorific value, the heat energy generated during incineration is recovered and reused as fuel for incinerators, thereby contributing to resource circularity and reducing energy consumption.

[Annual Waste Recycling Rate]

Wooden Pallet Circular System

As a facility subject to circular economy performance management, Dongsung Finetec operates a
reverse logistics갵based circular system for wooden pallets to reduce waste generated across
production and logistics processes. To prevent wooden pallets used in product shipment from
becoming single-use waste, all used pallets are fully collected after delivery to key customers
through our logistics network. The collected pallets are sorted and repaired by specialized external partners to ensure near-new durability before being reintroduced into production sites. Through
this closed-loop resource circulation system, Dongsung Finetec reduces waste wood generated in logistics processes and contributes to improved resource efficiency and minimized environmental
impact.

Wooden Pallet Recycling

[Wooden Pallet Recycling Process]

Transition to Reusable Transport Packaging (RTP)

Dongsung Finetec applies a reusable transport packaging (RTP) system, replacing paper-based
packaging to reduce single-use packaging waste generated during product shipment. In response to the tightening EU Packaging and Packaging Waste Regulation (PPWR), which increases requirements for reuse and circular use of transport packaging, we have proactively established a recovery system. A reverse collection system utilizing outbound logistics vehicles has been established for plastic packaging materials. Recovered plastic boxes are washed, sorted, and repaired by
specialized external partners before being reintroduced into production sites for reuse. Through
this circular packaging system, Dongsung Finetec reduces single-use packaging waste and
strengthens its resource circulation system.

Plastic RTP Recycling

[Recycling Process for Plastic Reusable Transport Packaging (RTP)]

Lifecycle Management of Refrigerant Waste

Dongsung Finetec has established and operates a lifecycle-based circular economy process
linking the supply, collection, purification, and reintroduction of refrigerants to expand resource
recycling and strengthen our circular resource system. As refrigerants can contribute to ozone
depletion and global warming if released into the atmosphere, Dongsung Finetec minimizes
environmental impacts by establishing systems for the safe collection, purification, and recycling
of waste refrigerants and extinguishing agents. In 2024, a refrigerant recycling facility with an
annual capacity of 720 tons was established at the Yeongnam Plant, providing a foundation for the purification and regeneration of waste refrigerants collected from buildings and industrial sites. In
2025, a FINEXG extinguishing agent purification facility with an annual capacity of 120 tons was
introduced, establishing a system capable of separating and refining residual refrigerants (e.g.,
R-22, R-123, R-124) from fire suppression system cylinders. Through these efforts, we produce
and supply reclaimed refrigerants, contributing to improved resource efficiency and reduced
environmental impact by minimizing external waste disposal and the use of virgin refrigerant
materials.

Refrigerant Recycling and Purification Facility

[Waste·FINEXG Refrigerant Recovery Performance]

Hazardous Chemical Management

BPA-Free Formulation Transition

Dongsung Finetec has restructured its production processes and formulation technologies to minimize the use of Bisphenol A (BPA), a regulated substance and a suspected endocrine-disrupting chemical, within its business operations. In 2023, we successfully developed and implemented a proprietary BPA-free formulation technology for mass production, excluding BPA used in existing products, thereby contributing to the reduction of hazardous chemical usage

[BPA-Free Formulation Transition Process]

Compliance with Hazardous Chemical Regulations and Establishment of Safety Systems

Dongsung Finetec strictly complies with relevant regulations-including the Chemical Control Act,
the Occupational Safety and Health Act, and the Act on the Registration and Evaluation of
Chemicals. When purchasing chemical substances, we assess their safety and identify relevant
legal requirements in advance through the CMS (Chemical Management System), ensuring
proper prior evaluation and management. Automatic alarm systems and leak detectors have been
installed to enable rapid response in the event of an incident. We continuously manage the risk of
hazardous chemical leakage through real-time monitoring systems and leak detection sensors,
thereby preventing potential accidents. Furthermore, to ensure worker safety, we have equipped
various emergency response supplies including emergency showers, absorbent pads, safety
boots, and respirators establishing a system that enables immediate response in emergency
situations.

Real-time Monitoring System Screen

On-Site Safety Management of Hazardous Chemicals

To safely manage hazardous chemical substances, Dongsung Finetec conducts regular and ad-hoc inspections of handling facilities. Regular inspections are conducted annually in accordance with statutory requirements and include examining facility safety, leak potential, and proper installation of warning signs. We also post Material Safety Data Sheets (MSDS) in all workplaces so that employees can immediately confirm chemical characteristics and handling instructions. Through these activities, we ensure on-site safety and prevent potential accidents.

Strengthening Hazardous Chemical Management Capabilities

Dongsung Finetec provides chemical safety training in accordance with legal requirements. Under the Occupational Safety and Health Act, employees receive MSDS training prior to being assigned to workplaces, ensuring they understand the hazards, risks, and emergency response procedures for the substances they handle. When information about hazardous chemical is updated, we provide immediate re-training. In addition, all employees and supplier workers receive annual worker education required under the Chemical Control Act. Each team annually reviews annual changes in chemical substances used in workplaces, and the EHS teams review quarterly legislative amendments to ensure legal compliance and maintain safety standards when handling hazardous substances.

[Hazardous Chemical Education Completion Status]