2023 Coway Sustainability Report

GRI Index

Index	Description
Statement of use	The reporting organization, Coway, is reporting the applicable information in accordance with the Global Reporting Initiative (GRI) Standards 2021 — reporting principles when reporting sustainable management contents for the period from January 1, 2023 to December 31, 2023.
GRI used	GRI 1: Foundation 2021
Applicable GRI Sector Standards	As of the current reporting date (June 2024), standards that correspond to Coway's standards for classifying GICS industries have not been published, so they were thus not applicable

GRI 2: General Disclosures 2021
No.	Disclosure	Page	Notes
2-1	Organizational details	Story on Creation of Value - Introduction of Coway - Company Overview
2-2	Entities included in the organization’s sustainability reporting	About This Report
2-3	Reporting period, frequency and contact point	About This Report
2-4	Restatements of information	-	Data and performances changed from those of the previous year are indicated separately through annotations, etc.
2-5	External assurance	Independent Assurance Statement
2-6	Activity, value chains and other business relationships	Story on Creation of Value - Introduction of Coway - Business Model Story on Creation of Value - Introduction of Coway - Sustainable Competitiveness Story on Creation of Value - Introduction of Coway - Global Story of Coway Story on Creation of Value - Business Value Chain	Refer to the Annual Report
2-7	Employees	ESG Data - Social - Employee Status
2-8	Workers who are not employees	-	Corresponding information was not collected across all business areas due to relevant laws and business characteristics.
2-9	Governance structure and composition	Corporate Governance - Management Centered on the BOD - Composition of the BOD ESG Data - Governance - Board of Directors
2-10	Nomination and selection of the highest governance body	Corporate Governance - Management Centered on the BOD - Director Appointment Procedure Corporate Governance - Management Centered on the BOD - Expertise and Diversity of the BOD Corporate Governance - Management Centered on the BOD - Independence of BOD	Refer to the Annual Report
2-11	Chair of the highest governance body	Corporate Governance - Management Centered on the BOD - Composition of the BOD
2-12	Role of the highest governance body in overseeing the management of impacts	Corporate Governance - Committees under the BOD - Composition of Committees under the Board of Directors ESG Highlights - Sustainable Management System - Implementation System
2-13	Delegation of responsibility for managing impacts	Corporate Governance - Committees under the BOD - Composition of Committees under the Board of Directors ESG Highlights - Sustainable Management System - Implementation System
2-14	Role of the highest governance body in sustainability reporting	Risk Management - Company-wide Risk Management System - Management of Non-financial Risk - ESG Committee Meetings
2-15	Conflicts of interest	Corporate Governance - Management Centered on the BOD - Independence of BOD
2-16	Communication of critical concerns	Corporate Governance - Management Centered on the BOD - Operation of BOD Meetings Corporate Governance - Committees under the BOD - Composition of Committees under the Board of Directors ESG Highlights - Sustainable Management System - Implementation System	Refer to the Annual Report
2-17	Collective knowledge of the highest governance body	Corporate Governance - Management Centered on the BOD - Expertise and Diversity of the BOD
2-18	Evaluation of the performance of the highest governance body	Corporate Governance - Evaluation and Remuneration - Independent Director Performance Evaluation and Remuneration Structure Corporate Governance - Evaluation and Remuneration - CEO and Executive Performance Evaluation Structure
2-19	Remuneration policies	Corporate Governance - Evaluation and Remuneration - Independent Director Performance Evaluation and Remuneration Structure Corporate Governance - Evaluation and Remuneration - CEO and Executive Performance Evaluation Structure ESG Data - Governance - Remuneration of the Board of Directors	Refer to the Annual Report
2-20	Process to determine remuneration	Corporate Governance - Evaluation and Remuneration - Independent Director Performance Evaluation and Remuneration Structure Corporate Governance - Evaluation and Remuneration - CEO and Executive Performance Evaluation Structure
2-21	Annual total compensation ratio	Corporate Governance - Evaluation and Remuneration - Remuneration to Director ESG Data - Governance - Board of Directors Remuneration Status
2-22	Statement on sustainable development strategy	CEO’s Message (2024)
2-23	Policy commitments	Policies & Initiatives - Sustainability Policy
2-24	Embedding policy commitments	Policies & Initiatives - Sustainability Policy
2-25	Processes to remediate negative impacts	Risk Management - Company-wide Risk Management System - Risk Management Reporting Structure Risk Management - Management of Major Risks Risk Management - Management of Tax Risks - Tax Policy
2-26	Guidance for ethics-related matters and grievance handling mechanism	Ethical management - Ethics Diagnosis and Monitoring - Operation of Ethics Reporting Center ESG Data - Society - Employee grievance Process Status ESG Data - Governance - Ethical Management
2-27	Compliance with laws and regulations	ESG Data - Environmental - Environmental Regulations ESG Data - Social - Information Protection ESG Data - Governance - Compliance to Laws and Regulations	Refer to the Annual Report
2-28	Membership associations	Policies & Initiatives - Evaluation and Initiatives - Participation in Global Initiatives
2-29	Approach to stakeholder engagement	Stakeholders - Stakeholder Engagement and Material Topics
2-30	Collective bargaining agreements	-	Insufficient use of information due to multiple operation of unions

GRI 3: Material Topics & Topic standards
No.		Disclosure	Page	Notes
3-1		Process to determine material topics	Materiality Assessment - Materiality Assessment Overview - Double Materiality Assessment Process
3-2		List of material topics	Materiality Assessment - Result of Double Materiality Assessment
3-3		Management of material topics	Materiality Assessment - Management and Reporting of Material Issues
Material topic 1. Product Quality and Safety
GRI 416: Customer Health and Safety	416-1	Assessment of the health and safety impacts of product and service categories	Product Quality and Safety - Quality Management Activities - Quality Failure Prevention Program
Material topic 2. Customer Satisfaction and Service
GRI 416: Customer Health and Safety	416-1	Assessment of the health and safety impacts of product and service categories	Product Quality and Safety - Quality Management Activities - Quality Failure Prevention Program
GRI 418: Customer Privacy	418-1	Substantiated complaints concerning breaches of customer privacy and losses of customer data	ESG Data - Social - Information Protection
Material topic 3. Eco-friendly Products
GRI 301: Materials	301-1	Materials used by weight or volume	ESG Data - Environmental - Raw Material Consumption
GRI 301: Materials	301-2	Recycled input materials used	Eco-friendly Products and Resource Circulation - Resource Circulation - Product Life Cycle Management - Use of More Circulated Materials ESG Data - Environmental - Raw Material Consumption
Material topic 4. Climate Change Response
GRI 201: Economic Performance	201-2	Financial implications and other risks and opportunities due to climate change	Climate Change Response - Climate Change Response Strategy - Identification of Climate Risk Climate Change Response - Climate Change Response Strategy - Climate Scenario Analysis and Financial Impact Assessment
GRI 302: Energy	302-1	Energy consumption within the organization	ESG Data - Environmental - Energy Consumption
	302-3	Energy intensity	ESG Data - Environmental - Energy Consumption
	302-4	Reduction of energy consumption	Climate Change Response - Metrics and Reduction Targets - Greater Use of Renewable Energy - Plans for Investment in Renewable Energy ESG Data - Environmental - Energy Consumption
GRI 305: Emissions	305-1	Direct (Scope 1) GHG emissions	Climate Change Response - Metrics and Reduction Targets - GHG Emissions Management - GHG Emission Reduction Efforts ESG Data - Environmental - GHG Emissions – Scope 1
	305-2	Indirect GHG Emissions – Scope 2	Climate Change Response - Metrics and Reduction Targets - GHG Emissions Management - GHG Emission Reduction Efforts ESG Data - Environmental - GHG Emission - Scope 2
	305-3	Other indirect (Scope 3) GHG emissions	Climate Change Response - Metrics and Reduction Targets - GHG Emissions Management - GHG Emission Reduction Efforts ESG Data - Environmental - GHG Emissions – Scope-3
	305-4	GHG emissions intensity	ESG Data - Environmental - GHG Emissions
	305-5	Reduction of GHG emissions	Climate Change Response - Metrics and Reduction Targets - GHG Emissions Management - GHG Emission Reduction Efforts
Material topic 5. Waste Management and Resource Circulation
GRI 301: Materials	301-1	Materials used by weight or volume	ESG Data - Environmental - Raw Material Consumption
GRI 301: Materials	301-2	Recycled input materials used	Eco-friendly Products and Resource Circulation - Resource Circulation - Product Life Cycle Management – Use of More Circulated Materials ESG Data - Environmental – Raw-Material Consumption
GRI 306: Waste	306-2	Management of significant waste-related impacts	Environmental Stewardship - Waste Management - Waste Management System Environmental Stewardship - Waste Management - Waste Management Status Environmental Stewardship - Management of Hazardous Chemical Substances - Management of Hazardous Chemical Substances in Products Environmental Stewardship - Management of Hazardous Chemical Substances - Voluntary Agreement on the Safety Management of Household Chemical Products
	306-3	Waste generated	ESG Data - Environmental - Waste and Recycling
	306-4	Waste diverted from disposal (reuse, recycle, etc.)	ESG Data - Environmental - Waste and Recycling
	306-5	Waste directed to disposal (incineration, landfill, etc.)	ESG Data - Environmental - Waste and Recycling

Topic Standards Issue Subject to Report
No.		Disclosure	Page	Notes
Environmental
Water Resources Management
GRI 303: Water and Effluents	303-1	Interactions with water as a shared resource	Environmental Stewardship - Water Resources Management - Water Resources Management Strategy
	303-2	Management of water discharge-related impacts	Environmental Stewardship - Water Resources Management - Water Resources Risk Management Environmental Stewardship - Water Resources Management - Minimize Discharge of Water Pollutants
	303-3	Water withdrawal	ESG Data - Environmental - Water Resources Management
	303-4	Water discharge	ESG Data - Environmental - Water Resources Management
	303-5	Water consumption	ESG Data - Environmental - Water Resources Management
Biodiversity
GRI 304: Biodiversity	304-1	Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas	Climate Change Response - Biodiversity - Biodiversity Preservation Management Status - Distribution of Biodiversity by Business Site Climate Change Response - Biodiversity - Biodiversity Preservation Management Status - Distribution Chart by Business Site
	304-3	Habitats protected or restored	Climate Change Response - Biodiversity - Biodiversity Preservation Management Status - Activities Related to Preservation and Promotion of Biodiversity Climate Change Response - Biodiversity - Biodiversity Preservation Management Status - Efforts on Preservation of Biodiversity
	304-4	IUCN Red List species and national conservation list species with habitats in areas affected by operations	Climate Change Response - Biodiversity Preservation Management Status - Distribution Chart by Business Site Climate Change Response - Biodiversity - Biodiversity Preservation Management Status - Distribution Chart by Business Site
Social
Human Rights Management
GRI 408: Child Labor	408-1	Operations and suppliers at significant risk for incidents of child labor	-	By following the Employment Rules which comply with the Labor Standards Act of Korea, Coway has no business site where child labor can be used.
GRI 409: Forced or Compulsory Labor	409-1	Operations and suppliers at significant risk for incidents of forced or compulsory labor	-	By following the Employment Rules which comply with the Labor Standards Act of Korea, Coway has no business site where coercive rights regarding labor can be exercised.
Development and Management of Human Resources
GRI 401: Employment	401-1	New employee hires and employee turnover	ESG Data - Social - Recruitment Status ESG Data- Social - Employee Turnover and Retirement
	401-2	Benefits provided to full-time employees that are not provided to temporary or part-time employees	Employees - Organizational Culture and Welfare - Systems for Work and Life Balance - Family-friendly System Employee - Organizational Culture and Welfare - Welfare System
	401-3	Parental leave	ESG Data - Social - Parental Leave
GRI 402: Labor-Management Relations	402-1	Minimum notice periods regarding operational changes	Employees - Organizational Culture and Welfare - Sound Labor & Management Communication
GRI 404: Training and Education	401-1	Average hours of training per year per employee	ESG Data - Social - Employee Training
	401-2	Programs for upgrading employee skills and transition assistance programs	Employees - Employee Development - Employee Capacity Building
	401-3	Percentage of employees receiving regular performance and career development reviews	ESG Data - Social - Performance Evaluation
Diversity and Tolerance
GRI 405: Diversity and Equal Opportunity	405-1	Diversity of governance bodies and employees	ESG Data - Social - Employee Status ESG Data - Governance - Board of Directors
GRI 406: Non-discrimination	406-1	Incidents of discrimination and corrective actions taken	ESG Data - Social - Employee Grievance Process Status
Supply Chain ESG Management
GRI 204: Procurement Practices	204-1	Proportion of spending on local suppliers	ESG Data - Social - Supply Chain Management
GRI 308: Supplier Environmental Assessment	308-1	New suppliers that were screened using environmental criteria	Supply Chain - Win-win Cooperation - Partner Company Management System - Process of Selecting Partner Companies
GRI 308: Supplier Environmental Assessment	308-2	Negative environmental impacts in the supply chain and actions taken	Supply Chain - Supply Chain ESG Evaluation - ESG Risk Management in Supply Chain - Improvement Status
GRI 414: Supplier Social Assessment	414-2	Negative social impacts in the supply chain and actions taken	Supply Chain - Supply Chain ESG Evaluation - ESG Risk Management in Supply Chain - Improvement Status
Social Contribution Activities
GRI 203: Indirect Economic Impacts	203-1	Infrastructure investments and services supported	Local Communities - Social Contribution Activities and Outcome - Representative Programs ESG Data - Social - Social Contribution
GRI 413: Local Communities	413-1	Operations with local community engagement, impact assessments, and development programs	Local Communities - Social Contribution Activities and Outcome - Representative Programs - Contribution to the Local Community ESG Data - Social - Social Contribution
GRI 415: Public Policy	415-1	Political contributions	ESG Data - Social - Social Contribution	Coway complies with the requirements of related laws and regulations, including Article 32 of the Political Funds Act of Korea.
Safety and Health
GRI 403: Occupational Health and Safety	403-1	Occupational health and safety management system	Safety and Health - Safety and Health Management System - Safety and Health Management Policy Safety and Health - Safety and Health Management System - Dedicated Organization for Safety and Health Safety and Health - Safety and Health Management System - Safety and Health Management System Certification
	403-2	Hazard identification, risk assessment, and incident investigation	Safety and Health - Safety and Health Activities - Activities to Prevent Serious Accidents - Tool Box Meeting Safety and Health - Safety and Health Activities - Activities to Prevent Serious Accidents - Voluntary Safety Inspection Consulting Safety and Health - Safety and Health Activities - Safety and Health Risk Management
	403-3	Occupational health services	Safety and Health - Safety and Health Activities - Health of Employees
	403-4	Worker participation, consultation, and communication on occupational health and safety	Safety and Health - Safety and Health Management System - Dedicated Organization for Safety and Health – Operation of Occupational Safety and Health Committee
	403-5	Worker training on occupational health and safety	Safety and Health - Safety and Health Activities - Strengthening of Safety and Health
	403-6	Promotion of worker health	Safety and Health - Safety and Health Activities - Health of Employees - Employee Health Improvement Programs
	403-7	Prevention and mitigation of occupational health and safety impacts directly linked by business relationships	Safety and Health - Safety and Health Activities - Activities to Prevent Serious Accidents - Voluntary Safety Inspection Consulting Safety and Health - Safety and Health Activities - Safety and Health Risk Management
	403-8	Workers covered by an occupational health and safety management system	Safety and Health - In-house Business Partners’ Safety and Health - Management of In-house Business Partners' Safety Risks ESG Data - Social - Occupational Safety and Health
	403-9	Work-related injuries	ESG Data - Social - Occupational Safety and Health
Governance
Ethics and Compliances
GRI 205: Anti-corruption	205-1	Operations assessed for risks related to corruption	ESG Data - Governance - Ethical Management
	205-2	Communication and training about anti-corruption policies and procedures	Ethical Management - Internalization of Ethical Culture - Ethical Management Training for Employees Ethical Management - Internalization of Ethical Culture - Raising Awareness of Ethical Management ESG Data - Governance - Ethical Management
	205-3	Confirmed incidents of corruption and actions taken	ESG Data - Governance - Ethical Management
GRI 206: Anti-competitive Behavior	206-1	Legal actions for anti-competitive behavior, anti-trust, and monopoly practices	ESG Data - Governance - Compliance with Laws and Regulations
Risk Management
GRI 201: Economic Performance	201-1	Direct economic value generated and distributed	Story on Creation of Value - Business Value Chain - Major ESG Achievements in 2023 ESG Data - Economic - Summarized Consolidated Financial Statements
GRI 207: Tax	207-1	Approach to tax	Risk Management - Management of Tax Risks - Tax Policy
	207-3	Stakeholder engagement and management of concerns related to tax	Risk Management - Management of Tax Risks - Tax Policy
	207-4	Country-by-country reporting	ESG Data - Economic - Tax Report (Consolidated)

Reporting Frameworks