PI 첨단소재

Environmental Management Policy

PI Advanced Materials connects people, society, and the world by realizing the potential of Polyimide
through creative innovation technology.

Environmental Management Policy

PI Advanced Materials has a social responsibility to minimize the impact of its business activities on safety, health and the environment.

PI Advanced Materials is a company that leads environmental protection through a sense of environmental responsibility. As a result, PI Advanced Materials is constantly working to identify and minimize the direct and indirect environmental impacts of its products.

To accomplish this, management will recognize environmental protection as a major factor in management activities, management will provide all necessary resources, and all executives and employees must practice the following.

Environmental Management System Certification (ISO 14001)

We faithfully comply with environmental laws, related requirements, and international agreements and
we strive to achieve more than legal requirements.

To reduce environmental risks, we strive for continuous improvement
by improving processes and implementing cutting-edge technology.

In order to minimize direct and indirect impacts on the environment, we carry out 3R (Reduce,
Reuse and Recycle) activities to minimize pollutant emissions and
contribute to the preservation of the global environment through resource conservation and energy reduction.

To ensure environmental management transparency, we disclose this policy internally and externally,
including to stakeholders, and actively collect their feedback.

To achieve the environmental management policy, we establish and implement a management plan,
as well as set goals and detailed goals.

All executives and employees receive documented safety, health, and environmental management system training
in order to implement, maintain, and develop this.

Risk Management for environmental change

Risk Management System

PI Advanced Materials is identifying risk factors that could alter the environment at business sites and local communities, as well as developing strategies to prevent and respond to them. These risks can be divided into ‘physical risks’ caused by physical changes due to leaks of chemicals and harmful gases, and ‘transition risks’ caused by policies and regulations arising during industrial transition and changes in technology, market, and reputation. We intend to establish a sustainable management system and manage the impact of each risk by analyzing its financial/non-financial impact and response direction.

Risk Management Process

PI Advanced Materials is working with the ESG team and other departments at each business site to prevent, monitor, and respond to environmental change risks. Risks are evaluated based on the time of occurrence (short-term, medium-term, long-term) and the size of risks and opportunities (financial impact, non-financial impact). Following that, we are working to establish a risk response through consultation with the working team and to derive new strategies by exploring opportunity factors.

Environmental Change
Identify risks

Continuous monitoring of the impact of each field due to environmental changes
Identify risks related to laws, regulations, market trends, etc.

Opportunity factors
Decision

Identify the expected timing of risk impact (short-term, medium-term, long-term) and financial impact
Assessment of identified risks and opportunities

Countermeasures
Proposal

Obtain feedback from working teams on identified risks.
Establish risk response strategy based on ESG strategy

Risk Management and
Opportunity Seizing

Risk management in accordance with the response plan
Assessment of progress
Establishment of future tasks

Risk Response Strategies related to Environmental changes

PI Advanced Materials understands the financial and non-financial impacts of risks related to environmental changes in business sites and local communities. While responding to identified risks, we are also working to seize new opportunities. PI Advanced Materials plans to strive for sustainable growth through risk management that considers environmental changes.

Division		Expected Risk	Potential Financial Impact	Response Direction	Duration
Physical Risk	Harmful gas Leakage	External leakage of harmful gases due to accidents	Economic and physical losses result from production delays caused by workplace damage.	Establish an emergency response system to prevent chemical accidents and conduct regular safety inspections and training	Short-term
	Harmful gas Leakage	External leakage of harmful gases due to accidents	Casualties occur due to inhalation of harmful gases		Short-term
	Chemical substance Leakage	External chemical leak due to accident	Economic and physical losses due to pollution in workplaces and local communities	Establish an emergency response system to prevent chemical accidents and conduct regular safety inspections and training	Short-term
	Chemical substance Leakage	External chemical leak due to accident	Casualties caused by chemical leaks	Installation of decontamination equipment to prepare for contamination accidents within each business site	Short-term
Transition Risk	Policies and regulations	Utilization of circular resources Regulations on waste discharge	Increased technological investment and business costs for waste recycling facilities	Investment in waste recovery facilities and high purity purification Cooperation with business partners	Mid to long term
		Chemical Regulations Increasing demand for non-hazardous chemical-free raw materials and auxiliary materials	Conversion costs incurred as a result of increased use of non-hazardous chemicals	Monitoring whether hazardous chemicals are added from the beginning of product development to the end product.	Mid to long term
		Strengthening environmental regulations	Fines and sanctions are imposed when illegal acts are detected	Legal review and policy reflection through ESG management system	Short-term
	Markets and Technology	Increasing demand for eco-friendly products that do not use hazardous chemicals, as well as products based on new and renewable energy.	Increased R&D costs to expand eco-friendly product portfolio	Development of substitutes for hazardous chemicals Development of new and renewable energy materials	Mid to long term
	Reputation	Call for global eco-friendly initiatives	Withdrawal of investment and loss of customers	Global initiative response and information disclosure review	Short-term

Environmental goals and Performance

PI Advanced Materials sets and responds to environmental goals every year to minimize environmental impacts during the production process.
By considering the production products and facilities at each business site, we set environmental goals that are optimized for ESG management. Furthermore, every year, performance is calculated through evaluation.
PI Advanced Materials plans to create an eco-friendly workplace by setting and complying with environmental goals every year.

Environmental goals of PI Advanced Materials in 2022

	Gumi Factory			Jincheon Factory
Target	Criteria	Target Level	Performance	Target Level	Target Level	Performance
Reduction of waste in raw units	Waste synthetic resin in raw unit (kg) (throughput/product production volume)	0.23	0.24	raw unit (kg) (throughput/production volume)	0.43	0.45
Reduction of waste in raw units	Waste organic solvent (kg) (throughput/MR production volume)	5.34	5.46	raw unit (kg) (throughput/production volume)	0.43	0.45
Energy savings	Electricity consumption in raw unit (MWh/kg) (electricity consumption/MR production)	0.04	0.05	Power usage in raw unit (TOE/ton)	5.27	6.27
Energy savings		0.04	0.05	LNG in raw unit (TOE/ton)	3.77	2.28
Reduce chemical emissions	Annual chemical emissions (ton)	7	8