Environmental Policy

Based on the ISO 14001 Environmental Management System, the Company applies integrated environmental management to the Songdo and Wonju sites. This chapter explains the environmental management policy and its implementation framework based on ESRS E1 (Environment), in the order of Environmental Policy (E1-1), Environmental Investment Review (E1-2), Environmental Legal and Regulatory Management (E1-3), Mid- to Long-Term Goals (E1-4), and Financial Impact (E1-5).

1. Safety, Health & Environment Policy (E1-1)

The Company's environmental management begins with the following safety, health, and environment policy.

"The Company places the life and safety, health, and environment of all workers as the top priority of management, and exerts its best efforts to take the lead as a sustainable and eco-friendly global healthcare specialist company by actively promoting the highest level of workplace safety management, the health of its members, and the protection of the global environment."

This policy is embodied in five management principles.

First, based on the safety, health, and environment management system, optimal management goals and implementation plans are established, and a global-level safety, health, and environment management framework is constructed through regular monitoring and performance evaluation. Second, the Company faithfully complies with safety, health, and environment-related laws and regulations and faithfully performs its responsibilities and obligations regarding safety, health, and environment to establish a safety, health, and environment culture. Third, through active participation and consultation, the Company promotes prevention-oriented identification of hazards and risks and accident prevention activities to create a safe and comfortable working environment within the workplace. Fourth, the Company deeply recognizes the need for the health care of all workers and actively promotes health improvement activities for the best maintenance of their health, including the prevention of disease. Fifth, the Company actively practices eco-friendly management to optimize the use of resources and energy and minimize the emission of pollutants.

Environmental Education — Conducted Alongside Statutory and Management System Training

To ensure that the policy operates in the field, the Company runs statutory training and management system training in parallel. Statutory training includes 4 hours of Waste Discharger Education and Medical Waste Discharger Education (refresher training) every 3 years for waste handling personnel, and 2-day (14-hour) refresher training every 3 years for atmospheric and water quality environmental technicians. Management system training includes 1 hour or more annually of environmental policy and goal training and 1 hour or more semi-annually of environmental laws and regulations training for employees subject to the system.

2. Environmental Investment Review (E1-2)

The Company reviews environmental risks and opportunities in advance at the stage of new investments and new business reviews. The New Business Committee conducts ESG due diligence on investment cases, and investments equivalent to 1% or more of equity capital are determined through Board of Directors resolution. In addition, ESG verification is conducted on investee companies, applying environmental and social risk management standards across the investment portfolio.

3. Environmental Legal and Regulatory Management (E1-3 · ISO 14001)

Pursuant to the ISO 14001 standard guidelines, the Company operates a six-step integrated management framework to systematically identify and comply with domestic and international environmental laws and regulations related to its business activities.

Step 1, Legal identification and updating (semi-annually). Through the Ministry of Environment, Ministry of Government Legislation, and related cooperative bodies, the Company monitors enactments and amendments of laws applicable to its processes and products — including the Clean Air Conservation Act, the Water Environment Conservation Act, the Waste Management Act, and the Chemicals Control Act — and updates the "Environmental Law Register."

Step 2, Compliance evaluation and internal audit (June each year). In accordance with ISO 14001 management procedures, an internal compliance evaluation is conducted every June. Internal auditors directly verify whether the operation status of emission and prevention facilities of each business site (Songdo, Wonju) meets legal standards, and immediate corrective action is taken for identified potential risks.

Step 3, Proactive risk prevention. When introducing new processes or modifying facilities, environmental impact assessment and change management review are conducted in advance to verify legal compliance, and necessary permits are obtained proactively.

Step 4, On-site environmental monitoring (real-time). For air prevention facilities (adsorption towers) and wastewater management systems at the Songdo and Wonju plants, real-time monitoring is reinforced and the replacement cycle of consumables (activated carbon, etc.) is optimized to minimize pollutant emissions.

Step 5, Chemical substance management self-inspection (regular SHE Audit). To continuously meet the handling facility standards under the Chemicals Control Act, the Safety Management Team-led regular self-inspection (SHE Audit) is conducted to identify hidden risk points.

Step 6, Waste resource circulation and supply chain management. The Company advances the separation of major waste — such as waste synthetic resins generated in production processes — by composition to maximize the recycling rate.

4. Environmental Mid- to Long-Term Goals and Strategy (E1-4)

The Company is pursuing the following mid- to long-term initiatives in concrete terms, going beyond present-day management.

First, third-party verification of greenhouse gas emissions (to be completed in 2026). Third-party verification of Scope 1·2 emissions for fiscal year 2025 and of this Sustainability Report has been completed.

Second, completion of TNFD biodiversity assessment (May 21, 2026). Based on the TNFD LEAP framework, biodiversity and natural capital assessments for four business sites — Seocho Headquarters, Wonju Plant, Songdo Plant (Harmony Road), and Songdo No. 2 Plant — have been completed. The overall materiality is "Low," but the Songdo site is located 3.5–4.1 km from the Ramsar wetland (Songdo Tidal Flat) and 0.5–0.8 km from red-crowned cranes and black-faced spoonbills (endangered Class I species), and the Wonju Plant is adjacent to ecological natural map Grade 1, with location sensitivity of 4.5–5.0 (upper-middle range among IVD industry peers), making it subject to management. The detailed analysis (location maps, distribution of endangered species, and LEAP Assess priority recommendations for the four sites) is covered in the supplementary section of "Environmental Management Activities" (E3-4).

Third, mid- to long-term reduction roadmap. The Scope 1·2 reduction target, the Net Zero 2050 pathway, and the renewable energy transition plan are scheduled to be confirmed after approval by the Board of Directors and the ESG Council.

Fourth, eco-friendly certification of the Magok R&D Center (scheduled for completion in March 2027). The Company is simultaneously pursuing LEED (the U.S. green building certification) and G-SEED (the Korean green building certification) for the next-generation R&D base under construction in the Magok district, Gangseo-gu, Seoul. By applying RE100-oriented eco-friendly design, including renewable energy, high-efficiency HVAC, rainwater reuse, and EV charging infrastructure, the Company proactively addresses the 02-2 DMA Blind Spot E-03 renewable energy issue.

5. Environmental Financial Impact and Response Strategy (E1-5)

The Company quantitatively evaluates the financial impact of climate risks. Based on climate scenario analyses (1.5°C, 2.0°C) aligned with the TCFD, the Company is in the process of quantifying the financial impacts of physical and transition risks.