Supply Chain Management Policy
In 2025, Dongsung Finetec established its supply chain management policy to systematically apply ESG standards across all business
transactions with suppliers and to secure sustainability throughout the entire supply chain. The policy requires incorporating key ESG elements-environmental reporting, social responsibility, and governance transparency-into supplier selection and transaction management. It focuses
on identifying and managing potential risks in advance to build long-term, stable partnerships.
In conjunction with its Supplier Code of Conduct, Dongsung Finetec outlines the ESG management areas and detailed requirements
expected of its suppliers as follows. Based on the Responsible Business Alliance (RBA) Code of Conduct, these requirements provide
specific standards to support suppliers in achieving sustainable operations throughout the supply chain.
Labor: Respect for human rights, prohibition of forced labor, prevention of discrimination, compliance with working-hour
requirements, and provision of a living wageHealth and Safety: Elimination of workplace hazards, safe handling of chemicals and gases, provision of personal protective
equipment, and establishment of emergency response systemsEnvironment: Management of greenhouse gas emissions, waste, and water resources; compliance with environmental laws and regulations; and application of environmentally friendly materials and processes
Ethics: Prevention of corruption, fair competition, information protection, transparent management, and socially responsible
sourcingManagement System: Designation of an ESG organization and responsible personnel, operation of an internal audit system, and establishment of continuous improvement and reporting systems
Dongsung Finetec continuously monitors its suppliers and supports their improvement activities to help them meet the ESG management requirements outlined above. The Company also incorporates suppliers’ compliance with these requirements into its supplier evaluation
process.
Direction and Goals
Dongsung Finetec has established three staged goals to systematically manage supply chain operational risks that may arise from ESG issues. Through these efforts, we plan to continuously monitor and improve ESG performance throughout the supply chain and secure mid- to
long-term competitiveness.
[Supply Chain Management Roadmap]
Performance
Supply Chain ESG Assessment
To systematically manage sustainability risks across our supply chain, we have established an ESG assessment framework and operating
criteria for suppliers and conduct annual ESG assessments. The assessment covers the areas of environment, human rights and labor,
occupational safety, and ethics. Suppliers first complete an online self-assessment, and on-site assessments are conducted for those
identified as high-risk. Based on the assessment results, we provide guidance on addressing identified gaps and support ESG training and
consulting to strengthen sustainability capabilities throughout our supply chain. For environmental risk assessments, we comprehensively
consider industry-specific characteristics, including the chemical, manufacturing, and service sectors, as well as each supplier's environmental compliance history. Assessments are conducted based on criteria such as environmental management system certification, energy
management practices, pollutant emissions management, and the use of environmentally friendly fuels.
[Supply Chain ESG Assessment Process]
