TCFD Index
This index integrates the implementation status of i-SENS, Inc. against the 11 recommendations across the 4 Pillars of the Task Force on Climate-related Financial Disclosures (TCFD). Although IFRS S2 (Climate-related Disclosures) announced by the ISSB in June 2023 has fully incorporated the 11 TCFD recommendations, this index is prepared as a 5-way alignment of TCFD ↔ IFRS S2 ↔ KSSB ↔ ESRS E1 to reflect direct TCFD reference demand from institutional investors, evaluation agencies, and overseas customers (Tokyo Stock Exchange Prime, Hong Kong HKEX, New Zealand XRB).
1. Key KPI Summary (2025)
Area | Key KPI | 2025 Actual |
Governance | Number of climate agenda items at the Board / ESG Council | — |
Strategy | Climate scenario analysis (1.5°C · 2°C · 3°C) | — |
Risk Management | Integration of climate into Enterprise Risk Management (ERM) | In operation |
Metrics & Targets | GHG Scope 1+2 (tCO2eq) | 8,025.655 |
Metrics & Targets | Scope 3 calculation scope | — |
Metrics & Targets | Net Zero target (Scope 1+2) | — |
2. TCFD ↔ IFRS S2 Alignment Declaration
In June 2023, the International Sustainability Standards Board (ISSB) announced IFRS S2, fully incorporating the 11 TCFD recommendations. From January 2024, TCFD was transferred to the integrated monitoring system under the IFRS Foundation, but this report retains a direct TCFD index for the following four reasons.
· TCFD disclosure obligation of companies listed on the Tokyo Stock Exchange Prime market (response to overseas customers and capital raising)
· Direct TCFD reference obligation under Hong Kong HKEX and New Zealand XRB
· Item-by-item TCFD scoring by ESG rating agencies such as CDP, MSCI, and Sustainalytics
· Acts as a benchmark for integrated mapping with EU CSRD ESRS E1, Korea KSSB SSDS S2, and IFRS S2
3. Governance (G1) — Board Oversight
Recommendation | TCFD G1 |
Requirement | Disclosure of board oversight of climate-related risks and opportunities |
Implementation Status | The ESG Committee under the Board of Directors oversees climate-related risks and opportunities. The chair is an independent director. Quarterly regular meetings plus ad-hoc meetings upon material events. See "ESG Management" (02-3) and "Board of Directors" (05-1). |
Evidence | Board minutes; ESG Committee operating rules |
IFRS S2 Mapping | IFRS S2 paragraph 6(a) Governance bodies and committees |
ESRS Mapping | ESRS 2 GOV-1 · GOV-2 · GOV-3 |
KSSB Mapping | KSSB SSDS S2 paragraph 6(a) |
4. Governance (G2) — Management's Role
Recommendation | TCFD G2 |
Requirement | Disclosure of management's role in assessing and managing climate-related risks and opportunities |
Implementation Status | The Environmental Management Team is in charge of the GHG inventory, energy efficiency, and renewable energy adoption at the operational level. Quarterly reporting to the CEO and submission of items to the ESG Committee. |
Evidence | Environmental Management Team organizational chart; KPI linkage system |
IFRS S2 Mapping | IFRS S2 paragraph 6(b) Management's role |
ESRS Mapping | ESRS 2 GOV-2 Information flow |
KSSB Mapping | KSSB SSDS S2 paragraph 6(b) |
5. Strategy (S1) — Climate Risk and Opportunity Identification
Category | Short Term (1–3 years) | Medium Term (3–10 years) | Long Term (11+ years) |
Physical risk | Increased heat-wave and peak-power costs at domestic sites | Increased frequency of typhoons and floods at Southeast Asia sales subsidiary and production bases | Changes in medical device demand structure due to sea-level rise and changes in infectious-disease patterns |
Transition risk | Indirect impact of the EU Carbon Border Adjustment Mechanism (CBAM) on the raw materials supply chain | EU CSRD ESRS E1 mandatory disclosure and carbon-pricing burden | Rising energy costs due to strengthened Net Zero policies in Korea, the EU, and the United States |
Opportunity | Low-power medical device R&D — strength of POCT portability | Expansion of the CGM and BGM home-care market (reduction of carbon from hospital travel) | Structural expansion of the diabetes and chronic disease market due to climate change |
*Given the characteristics of the medical device industry, i-SENS, Inc. belongs to a low-carbon industry group; however, indirect risks via the global supply chain (raw materials and overseas sales subsidiaries) are the main exposure.
6. Strategy (S2) — Business, Strategy, and Financial Impact
Impact Area | Qualitative Assessment | Quantitative Assessment |
Revenue | Increased demand for low-power POCT and CGM → opportunity for revenue expansion | Quantitative estimation planned for 2026 |
Cost | EU CBAM indirect impact + rising energy costs | Quantitative estimation planned for 2026 |
CapEx | Investment in renewable energy adoption and energy-efficient equipment | To be calculated upon establishment of the transition plan |
R&D | Strengthened R&D in low-power algorithms and small batteries | KRW 33.1 billion (10.5% of revenue, 2025; see 1704 Finance) |
Asset impairment | Assessment of physical risk exposure at domestic and overseas sites | No material impairment concerns |
7. Strategy (S3) — Climate Scenario Analysis (Resilience)
TCFD Strategy (c) · IFRS S2 paragraph 22 mandatory requirement. From the next report (2026), i-SENS, Inc. will adopt quantitative analyses applying NGFS (Network for Greening the Financial System) scenarios and the IEA NZE 2050 scenario.
Scenario | Definition | Key Assumption | i-SENS Resilience |
NGFS Orderly | Early and gradual 1.5°C policy implementation | Carbon price USD 130/tCO2 (2030) | Medical devices low-carbon → favorable qualitative assessment — quantitative analysis to be introduced in 2026 |
NGFS Disorderly | Delayed and abrupt 2°C policy implementation | Carbon price USD 200+/tCO2 (2030) | Some impact from supply-chain cost increases; qualitative assessment — quantitative analysis to be introduced in 2026 |
NGFS Hot House World | 3°C+ policy failure | Acceleration of physical risks | Expansion of the infectious-disease and chronic-disease markets / increased site physical risks; qualitative assessment — quantitative analysis to be introduced in 2026 |
IEA NZE 2050 | 2050 Net Zero pathway | 100% renewable electricity (2040) | Cost of RE100 transition at domestic sites; qualitative assessment — quantitative analysis to be introduced in 2026 |
7-A. Self-Scenario Analysis (Carried over from the 2024 Sustainability Report "Climate Change Scenario Analysis Report")
Before introducing quantitative analyses of NGFS and IEA NZE global scenarios in the next report (2026), this report carries over the body of the "Environment-related Financial Impact and Response Strategy" and the "Climate Change Scenario Analysis Report" from the 2024 Sustainability Report, and discloses an in-house three-stage short / medium / long-term scenario analysis. The analysis boundary covers four sites: Seocho Headquarters, Wonju Plant, Songdo Plant, and Songdo No. 2 Plant. The main energy use structure is electricity 91.1%, city gas 7.4%, and mobile combustion (company vehicles) 1.5%.
Stage | Physical Risk | Transition Risk | Opportunity |
Short term (1–3 years) | Electricity cost increase (Scope 2) — three plants ~5,000 MWh/year. 2024 electricity cost ~KRW 3.2 billion. A 10–20% increase by 2027 would add KRW 0.2–0.3 billion annually | City-gas and company-vehicle fuel costs (Scope 1) ~KRW 60 million. If a carbon tax is introduced, additional KRW 10–30 million annually | 5% energy efficiency improvement → annual savings of KRW 0.2–0.3 billion + 20–50% government support for energy efficiency / renewable subsidies for SMEs |
Medium term (4–10 years) | Concentrated rainfall at Wonju and typhoons at Songdo → power outages and production disruption / 1–2 days of production halt per year may cause revenue loss | 2030 NDC industry reduction pressure (purchase of emission allowances and reduction investment) + risk of revenue loss if overseas customers' carbon-footprint disclosure demands are unmet | Transition to solar / PPA renewables → long-term electricity price stabilization + potential new revenue from carbon-neutral medical devices |
Long term (11+ years) | Sea-level rise and changes in infectious-disease patterns → expansion of the chronic-disease market (two-way impact) | Mandatory Scope 3 disclosure (from 2027) — increased operating costs for measurement and management of the entire supply chain + capital investment for transition to eco-friendly manufacturing | Entry into new markets for environmental monitoring biosensors (carbon, air quality) + low-rate financing through green-bond issuance and ESG investment attraction |
7-B. 2030 Quantitative Financial Impact Estimates (Carried over from 2024 SR)
Category | Item | Estimated Scale in 2030 |
Cost | K-ETS allowance cost (10,000 tCO2eq × KRW 35,000/tonne) | ~KRW 350 million |
Savings | Electricity cost savings through RE transition | KRW 120 million/year |
Revenue opportunity | Increased orders through ESG-excellent supplier certification | +KRW 3.0 billion or more/year |
Financing | Interest-rate benefits from green-bond issuance (lower finance costs) | KRW 80 million/year |
*Figures may vary depending on scenarios and market conditions. Source: i-SENS 2024 Sustainability Report "Climate Change Scenario Analysis Report" 2.2.
[2025 Climate Change Scenario Changes]
Item | 2024 (Voluntary Disclosure) | 2025 SR | Type of Change | Reason for Change |
Disclosure basis | Self-scenario (voluntary) | TCFD-aligned · independent third-party assurance | Methodology upgrade | Alignment with international climate disclosure standards |
Scenario setting | Single, qualitative analysis | 1.5°C · 2.0°C × short / medium / long term | Scenario sophistication | Reflecting TCFD recommendations |
Baseline Scope 1+2 (2024) | 7,720 tCO2e | ~17,500 tCO2e | Restatement (GRI 2-4) | Energy 40,000 MWh and emission factor 0.4594 alignment |
Carbon cost (K-ETS) | KRW 350 million (purchase cost) | ~KRW 430 million (carbon-price exposure) | Redefinition · recalculation | Transition to an exposure basis + baseline correction (12,250t × KRW 35,000) |
RE electricity-cost savings | KRW 120 million | KRW 120 million (own solar 1.1 MW) | Clarification of calculation basis | Limited to own-generation portion |
ESG orders | +KRW 3.0 billion | KRW 3.0 billion (contracts including ESG conditions) | More conservative wording | Avoiding causation assertions, clarifying attribution |
Green-bond savings | KRW 80 million | KRW 80 million (KRW 40 billion issuance × greenium 20 bp) | Explicit assumptions | Transparency of formula and premises |
Assurance | Unverified (voluntary) | Independent third-party assurance introduced | Strengthened credibility | Improved disclosure credibility |
7-C. Quantitative Comparison vs. Baseline Year (2024 → 2025)
Against the baseline Scope 1+2 of approximately 7,720 tCO2eq set by the 2024 SR, the actual Scope 1+2 total in this report (2025) is 8,025.655 tCO2eq, an increase of +3.96%. This reflects a temporary operating burden over the same period due to the CGM line expansion at the Songdo No. 2 Plant (commissioned in 2023) and the start-up of construction works at the Magok R&D Center. The full-fledged reduction track to achieve the 2030 interim target of −30% in Scope 1+2 is disclosed under the Net Zero pathway in Section 11 Metrics & Targets (M3).
7-D. Schedule for Introduction of Global Scenario Quantitative Analysis
Quantitative analyses of three NGFS scenarios (Orderly, Disorderly, Hot House World) plus the IEA NZE 2050 scenario (impact on revenue, operating profit, and CapEx) will be introduced in the next report (2026) together with the SBTi (Science Based Targets initiative) verification application and the UK TPT (Transition Plan Taskforce) transition plan establishment as a package. The present report (2025) applies the transition relief under IFRS S2 paragraph C4 to satisfy Moderate Level assurance through a triple disclosure: qualitative analysis + in-house short / medium / long-term three-stage quantitative analysis + 2030 quantitative financial impact estimates.
8. Risk Management (R1 · R2 · R3) — Identification, Management, ERM Integration
Recommendation | Implementation Status |
R1 Identification and Assessment Process | The Environmental Management Team monitors GHG inventory, energy, and water use quarterly + external verification. New risks are submitted to the ESG Committee. |
R2 Management Process | Identified risks are subject to priority assessment (impact and likelihood) → mitigation actions are established → quarterly review. Integrated with "Risk Management" (05-3). |
R3 Enterprise-wide Risk (ERM) Integration | Climate risks are integrated and managed as one category of the Enterprise Risk Management (ERM) framework. Climate items are reflected in the four-axis impact matrix of finance, operations, reputation, and regulatory response. |
9. Metrics & Targets (M1) — Climate Measurement Indicators
Indicator | 2023 | 2024 | 2025 | YoY Change (%) |
Energy use (TJ) | 138.579 | 157.496 | 166.128 | 8.632 (5.48) |
Electricity use (TJ) | 127.856 | 143.565 | 152.417 | 8.852 (6.12) |
GHG intensity (tCO2eq / KRW 100 million) | 3.180 | 3.608 | 3.357 | −0.31 (8.59) |
10. Metrics & Targets (M2) — GHG Scope 1 · 2 · 3
Scope | Definition | 2025 (tCO2eq) | Calculation Standard |
Scope 1 | Direct emissions (site fuels and vehicles) | 731.690 | GHG Protocol Corporate |
Scope 2 | Indirect emissions (purchased electricity and heat) | 7,293.965 | GHG Protocol Scope 2 (location-based + market-based) |
Scope 1+2 total | - | 8,025.655 | - |
Scope 3 | Value chain (15 categories) | GHG Protocol Corporate Value Chain | |
└ Cat 1 | Purchased goods and services (raw materials) | - | |
└ Cat 11 | Use phase of sold products (CGM and BGM batteries) | - | |
Assurance | Third-party assurance (Reasonable / Limited) | Moderate | KMR AA1000AS v3 Type 2 |
11. Metrics & Targets (M3) — Targets, Performance, and Net Zero Pathway
Target Area | Baseline Year | Interim Target | Final Target |
Scope 1+2 absolute reduction | 7,720 (2024) | −42% (SBTi recommendation) | Net Zero (2050) |
Scope 3 absolute reduction | To be set after 2026 calculation | −25% (2030, carried over from 2024 SR) | Net Zero (2050) |
Renewable energy transition (RE100) | 3.61 | 60% (2030, carried over from 2024 SR) | 100% (2040, carried over from 2024 SR — RE100 completion target by 2045) |
Energy efficiency (tCO2eq / KRW 100 million) | 0.0735 (2024 baseline) | 0% (current) | −20% (2030, carried over from 2024 SR) |
Plan for strengthening in the next report: application for SBTi (Science Based Targets initiative) verification + establishment of a UK TPT (Transition Plan Taskforce) transition plan + improvement of the CDP Climate Change response grade.
12. Five-Way Mapping of TCFD ↔ IFRS S2 ↔ KSSB ↔ ESRS E1 ↔ CDP ↔ GRI 305
TCFD | IFRS S2 | KSSB SSDS S2 | ESRS E1 | CDP | GRI 305 |
G1 Board | 6(a) | 6(a) | GOV-1 | C1.1 | — |
G2 Management | 6(b) | 6(b) | GOV-2 | C1.2 | — |
S1 Risk and Opportunity | 10 | 10 | E1-2, E1-3 | C2.3, C2.4 | — |
S2 Financial Impact | 13~16 | 13~16 | E1-9 | C2.6 | — |
S3 Scenarios | 22 | 22 | E1-1, E1-9 | C3.2 | — |
R1 Identification and Assessment | 25(a) | 25(a) | IRO-1 | C2.1, C2.2 | — |
R2 Management | 25(b) | 25(b) | E1-3 | C2.2 | — |
R3 ERM Integration | 25(c) | 25(c) | GOV-5 | C2.2 | — |
M1 Metrics | 29 | 29 | E1-5, E1-6 | C4.2, C8 | 305-4 |
M2 GHG | 29(a) | 29(a) | E1-6 | C6.1, C6.3, C6.5 | 305-1, 305-2, 305-3 |
M3 Targets | 33~36 | 33~36 | E1-4 | C4.1, C4.2 | 305-5 |
13. Data Reliability (Assurance) and Plan for Strengthening in the Next Report
The quantitative indicators of this index (such as Scope 1+2 GHG of 8,025.655 tCO2eq) are based on source data of the i-SENS, Inc. Environmental Management Team and are included in the scope of KMR AA1000AS v3 Type 2 (Moderate) third-party assurance. Marker items such as −40% (2040, carried over from 2024 SR) will be progressively strengthened in the next report (2026).
· 2026 first priority: pilot calculation of Scope 3 Categories 1 and 11 + introduction of NGFS and IEA scenario analyses
· 2026 second priority: review of an internal carbon price (ICP) in the range of USD 50–75/tCO2
· 2027 target: application for SBTi (Science Based Targets initiative) verification + establishment of UK TPT transition plan
· 2028 target: upgrade GHG assurance grade from Moderate to Reasonable (High)
· Continuous operation: stepwise improvement of CDP Climate Change response grade from B to A−
Note: This index is operated as a sister index to the "TNFD Index" (natural capital), and the integrated treatment of climate and nature governance as a single channel by the ESG Council represents a differentiating element in the Company's global alignment.