Sustainability > Hanwha Energy

Faith and Fairness
We will make faith and fairness as the first virtues of
corporate management and comply with all the laws
and social norms in all our social activities as well as
economic activities. We will respect the order of the
market economy and reject unfair trading.

Use of Eco-friendly Products
We will make every effort to preserve the ecology
and environment through the use of environmentally
safe and friendly products and the efficient use of
resources and energies.

Credibility and Loyalty
For coexistence and coprosperity based on
credibility and loyalty, we will faithfully cooperate
with all stakeholders including customers,
shareholders, competitors, and partners.

Improvement of Enterprise Value
We will draw a clear line between public and private
matters, value the properties of our company,
and strive to raise our enterprise value.

Fair Trade
Through sound wealth and enterprise value
that have been created through fair trade,
we will contribute to the enhancement of welfare,
education, culture and employment in communities.

Ethical Values
We will respect all employees as entities with free
will, create a comfortable work environment,
and form an atmosphere in which we can grow as
corporate citizens with the right ethical conduct.
Respect and Trust
We always respect the opinions of our customers
and do our best to win and retain customers??
trust based on creditability and loyalty.

Management of Corporate Money
We will not use corporate money or valuables
for private purposes.

Fair Competition
We observe all applicable laws in our business
activities, respect business practices,
and pursue fair competition.

Fair Work
The provision or receipt of loans, personal credit
guarantee and gifts between employees
is prohibited in principle.

Fair Trade
We maintain mutual trust and cooperative
relationships with our partners through
transparent fair trade and pursue mutual growth.

Mutual Respect
We will not discriminate between our employees
on account of their academic background,
religion, sex or native place. We will do our
utmost to establish a sound work life through
mutual respect.

Prohibition of Abuse of Authority
We will not engage in improper practices to our
partners using our superior status, nor receive
money and valuables, treats, entertainment, or
other free services from partners.

Volunteer Services
We will actively participate in volunteer community
services for the disadvantaged around us and
neighbors in need.

Security
We will not reveal any internal secrets, incidents,
rumors or other confidential information about our
company or any information of our customers,
suppliers, competitors, etc. to unauthorized third
parties (including via e-mail, SMS, etc.).

Accident Prevention
We will do our best to prevent accidents,
through meticulous safety checks and
management while striving to preserve our environment.
Your report shall be kept confidential, however anonymous reports are not entertained.
We will check the facts about the reports and take measures in accordance with applicable laws and regulations as soon as possible,
and reply to informants about the results in a way that they want.
1. Content of Consultation
and Report
Obligations of principal contractor(no payment of subcontract money, no issuance of documents, no notification of inspection result, etc.)

Prohibited items of principal contractor(unreasonable rejection of receipt, unreasonable reduction of subcontract money, unreasonable intervention in management, etc.)

Violations of the Fair Trade Act such as cartel(price-fixing), unlawful internal trading and abuse of market dominant status

Other suggestions and reports about fair trade, subcontract and win-win partnerships
2. Protection of Informants
The identities of the internal and external informants will be thoroughly protected and the informants shall not suffer any disadvantages due to the content of their report.
3. Ethics Management Office
E-mail: hecaudit@hanwha.com

Tel: 044-850-3405

Ethics Management Office, Hanwha Energy Corporation, 411, Hannuri-daero, Sejong-si, Republic of Korea

ECO-YHES consists of the Y in "yes" and HES representing "health,
environment and safety." Designed in the shape of a forest
(symbolizing the environment), ECO-YHES is an over arching value
pursued by the Hanwha Group to fulfill its social responsibilities
and to achieve sustainable growth.

As the first in Korea, Hanwha Group began implementing "ECO-2000" program, the group-level
environment & safety activities, in 1991. In 2000, Hanwha Group selected environment,
safety and health as its major management mandate and subsequently announced "ECO-YHES,"
as the group-level environment, safety and health policy. .

Based on ECO-YHES, Hanwha Energy has established and is currently implementing mid- to long-term
improvement goals.
To fulfill its social responsibilities and to achieve sustainable growth, Hanwha Energy has acknowledged
the environment, safety and health as being part of the company's core values and therefore will exert
its utmost efforts as follows, to achieve its growth into a leader of the energy industry.

To promote pollution prevention and continuous environmental improvement in all stages of
corporate management in order to provide eco-friendly energy and services.

To increase safety and health by scientifically preventing potential elements of risk and pursuing continuous
improvement, thereby creating a pleasant work environment.

To recognize and strictly observe all environment, safety and health-related laws and stakeholder requirements
and to continuously improve management standards.

To strive for efficient use and preservation of resources and energy through the fundamental control of
all resources and energy required in all processes of corporate management.
Common for Environment, Safety and Health
Compliance with Legal Requirements: We will not only comply with the regulations on environment, safety and health of the national and local governments, but also establish and observe stricter internal standards. We will also take proactive measures towards various international regulations so as to voluntarily fulfill our corporate social responsibility.

Settlement of the Line Responsibility System: We are responsible for carrying out environment, safety and health regulations. The primary responsibility is on individuals and the management responsibility is on the corresponding Management Line. Therefore, the managers shall clearly define the roles and responsibilities by systematizing the organization and operating system. The performance shall be reflected in the individual and organizational assessment based on objective assessment methods and criteria.

Establishment of Emergency Response System: We will clearly define our response procedures to all possible environmental, safety, and health-related accidents and emergencies. We will minimize the effects of emergencies through continuous regular emergency trainings and make an effort to build pleasant, safe local communities by actively cooperating with the communities.
Environment
Establishment of Environment Management System: We will broaden our perspective from one-dimensional thoughts such as cost control and response to the environmental regulations, and integrate our environmental management system into every aspect of our corporate management. Furthermore, we will establish and operate organized and effective audit procedures to enhance the environmental standards.

Eco-friendly Production and Services: We will review the environmental impact in every aspect of our management activities in advance, including development, design, purchasing, production, sales, use, and disposal to provide eco-friendly products and services in consideration of the possible problems and their solutions.

Preservation of Global Environment and Prevention of Pollution: We will minimize emitting environmental pollutants through the reduction and effective treatment of pollutants from the entire business activities.

Resource and Energy Source Management: We will evaluate the appropriateness of all the physical resources applied to the entire processes of our business activities and practice the recovery, reuse, and recycling of resources for efficient energy use and reduction of energy consumption.
Safety
Eradication of Serious Accidents: Injuries and property losses should clearly be reported regardless of how serious they are, and the analysis of the causes and preventive measures should be carried out.

Reinforcement of Preventive Safety Activities: We will detect and evaluate any hazards in our work places through regular inspections and trainings, and remove them or improve safety facilities to prevent injuries or property damages.

Enhancement of the Safety Level of Partners: For the safety management of partners, we will disseminate our safety management system, and instruct and support our partners on safety improvement to maintain mutually beneficial partnerships. With this purpose, we will build a partner safety management system that can be operated properly and effectively according to business category and size.

Products and Services Safety: We will build a system to secure the safety and health of customers and communities who use our products and services, and make an effort to improve safety through continuous research and development.
Health
Maintenance of Comfortable Work Environment: To create a healthy, efficient work environment, we will continuously improve our work facilities and carry out organized health management for individual workers.

Occupational Diseases Prevention: We will build a rational management system to prevent occupational diseases and all workers must actively participate in this system. When any work-related injuries or occupational diseases are identified, the jobs of workers must be adjusted and rationally operated.

Health Improvement Programs: We will operate systematic programs to improve the health of workers and prevent the manpower losses of the company through preemptive and follow-up management.
Compliance with Safety Rules
Comply with safety rules and work procedures.

Inspection of Closed Spaces
Measure the oxygen and gas concentrations
before working in closed spaces.

Management of Protective Gears
Wear specified protective gears and manage
them thoroughly.

Inspection of Work in Elevated Places
Install safety facilities and connect belts for
working in elevated places.

Issuance of Work Permits
Prohibit work before issuance of work permit
and place the work permit at the site.

Blocking of Dangerous Materials
Block the power supply and remove dangerous
materials before starting work.

Prohibition of Single Person Work
Work by single person is prohibited.

Prohibition of Unauthorized Access
Prohibit unauthorized access to danger-marked
areas.

Inspection for Electrical Work
Always perform voltage detection and
grounding before electricity work.

Prohibition of Smoking
Strictly prohibit smoking except in
the specified areas.

Prohibition of Arbitrary Operation
It is prohibited to arbitrarily remove danger tags
or operate the equipment.
Goals of Safety and Health

Achieved PSM S grade in 2020

Safety and Environment accident Zero

How we make

Hanwha Energy established HEARs, its own safety, environment, and health system,
to establish a continuous accident-free and accident-free management system for all business sites.

Observe basic safety rules

Self-inspection of Safety and Environment

Conduct of emergency drill

Operation of Health Promotion programs

Operation of Safety Education programs

Operation of Safety Culture Settlement programs

In addition, we strive to raise awareness about safety and establish a safety culture in the workplace
by sharing cases of safety accidents and the operation status of HEARs at each factory every month
through the holding of the Safety and Environment Committee.
Goal of National Greenhouse Gas Reduction

Total Emissions of Greenhouse Gas by 2030 5.36 billion tons (37% reduction compared to BAU in 2030)

How we make

Hanwha Energy is leading the elevating Energy efficiency, reducing Greenhouse gas emissions through operating
cogeneration facilities which have high efficiency to produce heat and electricity to meet national emission goal.

In addition, We do our best to reduce CO2 by using Biomass fuel, operating Solar power plants and also doing
Clean Development Mechanism which certify reducing amount of CO2.

ENERGY

Cogeneration is a structure that produces heat and electricity at the same time as compared
to general power generation.
The energy use efficiency is more than 30%, which saves more energy than the individual supply method.
As a result, the energy saving is 15.8% compared to individual supply methods.

[Pic.] Comparison between General generation and Cogeneration Efficiency

[General generation]

Energy efficiency 49.9%

Electricity??49.9%, Fuel Energy(100%), Loss??50.1%

[Cogeneration]

Energy efficiency 80.7%

Electricity??42.1%, Heat??38.6%, Fuel Energy(100%), Loss??19.3%

[Department of Industry_ 4th Plan of CHP Energy distribution]

CO2

Hanwha Energy has a duty to follow emission trading system in accordance with the Law on Allocation
and Trading of Greenhouse Gas Emissions.
So we are trying to achieve the national greenhouse gas reduction target through systematic greenhouse gas
management, and also we are making every effort to be a company that contributes
to the national green growth policy.

To this end, we have continued to invest in renewable energy businesses and solar power plants
which are under construction and in operation are in all over the world like Japan, USA, Australia, Europe.

In addition, We built the world's first and largest 50MW hydrogen fuel cell power plant
in Daesan Industrial Complex.

Hanwha Energy has various partner support programs to promote mutual growth with our partners so as to enhance our competitiveness and practice win-win management under
the motto

Financial Support

We have formed and operate the win-win fund to
provide loans at low interests to our partners.

Technical Support & Quality Improvement

Provide guidance at partner sites when quality
problems occur.
Provide technical support through quality meetings.

Better Payment Conditions

Cash payment and shorter term of bills.
Early payment of funds for national holidays.

Support for manpower education and training

Provide online/offline training to improve the job
abilities of partner employees.
Carry out support programs.

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Hanwha Energy strives to provide a transparent framework for decision making that aligns with global standards.

So we established a voluntary compliance program, starting in July 2023, to strengthen our compliance management
through promoting a culture of compliance so that all executives and employees actively comply with the law and avoid any violations.

We strive to be a trustworthy company to our customers, partners, shareholders, employees, and other stakeholders by actively implementing
our compliance program.
Compliance Program (hereinafter referred to as CP) refers to an internal system that a company establishes and operates in its own to ensure compliance with fair trade laws and regulation in economic activities.
CP operations

1. Development and implementation of the CP standards and procedures

2. CEO??s declaration of and support for compliance

3. Appointment of the Compliance Officer

4. Well-publicized compliance handbook

5. Continual and systematic training and education programs

6. Internal monitoring system

7. Employee sanctions for non-compliance

8. Effectiveness evaluations and corrective actions
Prior Consultation System

Legal advices available at all-times

Prior legal review of contracts

Deliberation of transactions among related parties

CP Training

Company-wide basic training

Tier-specific/sector-specific training

Whistle-blowing System

All-time reporting channels

Employee sanctions for non-compliance
The Compliance Officer (responsible for the company-wide CP operations)

CP Team (responsible for all practical aspects of the CP operations)

Supports for CP operations

Legal support (Legal Team)

ESG Committee (Communications Team)

Deliberation of related party transactions (CHRO & CFO)

Diagnostics (PI Team)

Compliance Council (Operated by each sector within the company)

All Executives and Employees (the entity that implements the CP)
E-mail : hecaudit@hanwha.com

Tel : +82-44-850-3405

Address : Executive Office of Fair Trade Voluntary Compliance, Hanwha Energy Corporation, 411,
Hannuri-daero, Sejong-si, Republic of Korea

[Pic.] Comparison between General generation and Cogeneration Efficiency

CP operations