Sustainability — SENSE for LIFE

Built on the foundation of integrity management, i-SENS embraces ESG not as a mere slogan but as an integral part of daily operations. We are advancing as a medical device leader that responds responsibly to the signals from our patients, society, and the planet. This chapter details our ESG governance framework, the structure and decisions of our Sustainability Council, our core policy areas, and the outcomes of our external sustainability assessments.

1. Sustainability Governance

The Company manages its sustainability initiatives through a structured, three-tier governance system: the Board of Directors at the apex, the ESG Council as the central deliberative node, and the ESG Task Force handling operational execution. The Board of Directors holds ultimate oversight, reviewing and approving material impacts, risks, and opportunities (IROs) regarding the economy, the environment, and human rights. The Board also bears final responsibility for ensuring the reliability and appropriate disclosure of the Sustainability Report.

The ESG Council, chaired by the CEO with the Ethics Management Office serving as the secretariat, deliberates on impact assessment results and improvement initiatives. The Council reports its findings quarterly to the Board of Directors, ensuring seamless alignment and oversight. Operational execution is driven by the ESG Task Force, which manages specific Key Performance Indicators (KPIs) across seven functional teams (HR/General Affairs, Safety Management, Production Management, SCM, IT, Marketing, and Management Planning). This governance structure is further reinforced by a six-step responsible-management due diligence process aligned with the OECD Guidelines for Multinational Enterprises and the UN Guiding Principles on Business and Human Rights. Furthermore, executive compensation is strategically linked to sustainability performance indicators, and all ESG risk management processes are objectively verified through independent consulting by Korea ESG Credit, an external ESG specialist organization.

[Figure 1-1] i-SENS ESG Governance Structure

2. Sustainability Council

The ESG Council serves as the Company's highest deliberative body for reviewing and deciding ESG strategic directions and material IROs, bridging the Board of Directors and the operational Task Force.

2.1 Launch and Composition

The ESG Council was officially launched on February 2, 2024. It is composed of one Chair and six division-specific expert members, covering six core functions of the Company: R&D, Production, Finance, Management Planning, Legal, and Sales. This composition allows ESG matters to be judged from multiple expert perspectives rather than being biased toward any single department.

2.2 Secretariat and Operational Support Organization

The secretariat of the ESG Council is led by the Ethics Management Office. The secretariat reviews agenda items in advance, manages minutes, and operates the reporting line through which the Council's discussion results are transmitted to the Board of Directors. The supporting body for execution is the ESG Task Force (operational). It consists of 7 teams — the HR & General Affairs Team, Safety Management Team, Production Management Team, SCM Team, IT Team, Marketing Team, and Management Planning Team — collecting quantitative performance indicators (KPIs), providing data needed for impact assessments, and executing the items decided by the Council in actual operations.

2.3 Meeting Operations, Authority, and Agenda

The ESG Council holds two regular meetings annually by default, with ad hoc meetings convened as material issues arise. The principal authority and agenda items addressed by the Council include:

1.     Reviewing semi-annual ESG performance and determining the next strategy.

2.     Determining ESG disclosure and external communication items (Sustainability Report, corporate website, EcoVadis response, etc.).

3.     Determining ESG-related corporate rules and policies (including Double Materiality Assessment results).

4.     Prioritizing material impacts, risks, and opportunities (IROs) and designating responsible departments.

2.4 Reporting to the Board of Directors

The Council's operating results and key internal control matters are reported to the Board of Directors via the following framework.

2.5 Performance Evaluation and Independent External Advisory

The Board of Directors and the ESG Council receive reports from responsible departments on how the Company's management activities affect the economy, environment, and people (human rights), then review and decide on issues requiring improvement. The adequacy of ESG risks and improvement activities is not relied upon based solely on the Company's internal judgment, but is objectively reviewed through independent consulting and evaluation by Korea ESG Credit, an external ESG specialist organization. Results are reported to the Board of Directors as necessary and reflected in governance decisions and the following year's ESG strategy and execution plan.

Major Sustainability Deliberations and Decisions (2025)

The Company holds two regular meetings annually and convenes ad hoc meetings as necessary to discuss and decide on key ESG matters.

[2025 ESG Council Activities by Session]

Sustainability Task Force (Operational) Activities

i-SENS' ESG Task Force (operational) consists of the Ethics Management Office secretariat and 7 departments (HR, Safety Management, Production Management, SCM, IT, etc.), operating on a monthly regular basis. Its main role is executing items resolved by the ESG Council in actual operations, managing quantitative performance indicators (KPIs), and responding to external assessments. In 2025, a total of 11 meetings were held. In the first half, the Task Force focused on building the foundation of ESG operations. First, it closed out 2024 performance and confirmed 2025 MBO site-level targets (Session 25-2, March), then conducted preliminary review for the 2nd Council meeting while deriving the 9 issues from the Double Materiality Assessment (DMA) (Session 25-3, April). The Task Force also conducted the first-half supplier ESG evaluation for 10 companies (Session 25-4, May) and completed preparations for ISO 14001 recertification (Session 25-5, June). In the second half, focus shifted to responding to external assessments. To prepare for the EcoVadis assessment, the Task Force conducted focused training for three consecutive months from September to November (Sessions 25-6, 25-7, 25-8), and during the reporting of the KCGS 2025 assessment results, confirmed that the integrated rating advanced one notch from B to B+. At year-end in December, the Task Force completed the annual environmental management settlement and pre-organized the agenda items to be pursued in 2026 (Sessions 25-10, 25-11).

3. SENSE for LIFE — Sustainability Management System

As a company whose core business is "Sensing," the Company defines its ESG philosophy as SENSE for LIFE — going beyond sensing patients' vital signs to also sensing the signals of the Earth, people, and trust, and aspiring to become "a responsible medical device company for life."

[Figure 3-1] SENSE for LIFE Sustainability Management Strategy Framework (Planet · People · Trust 3 Axes)

SENSE Planet — Environmental Responsibility that Senses the Earth and Life (E)

The Company operates an Environmental Management System (ISO 14001) and systematically manages its environmental responsibility. It calculates and reduces direct and indirect greenhouse gas (Scope 1·2) emissions from its sites and manages hazardous substances that may be contained in medical devices in accordance with international standards (REACH·RoHS·WEEE). The Company also reviews climate change risks based on the TCFD, safely treats medical waste while maintaining a system for circulating waste resources, and applies Eco-design that considers the environment from the product design stage. Going forward, the Company plans to establish a renewable energy transition roadmap and intensify waste reduction activities as key initiatives.

SENSE People — Social Responsibility that Senses the Health of Customers and Patients (S)

The Company pursues quality management with patient safety as the top priority and operates an Occupational Health and Safety Management System (ISO 45001) to create a safe working environment for employees. Human rights management is practiced based on international norms including the Universal Declaration of Human Rights (UDHR), the United Nations Global Compact (UNGC), the International Labour Organization (ILO), and OECD standards, and ESG evaluation and due diligence are conducted on the supply chain. In addition, the Company devotes efforts to information security and the protection of personal medical information, and continues healthcare contribution activities for local communities. Key initiatives include the operation of the supplier ESG evaluation system and the practice of human rights management.

SENSE Trust — Governance that Senses Stakeholder Trust (G)

The Company operates responsible governance through the ESG governing body and Board of Directors oversight system, and practices trustworthy management based on integrity management and the five principles of the Ethics Charter. To support this, the Company operates international management systems including anti-bribery (ISO 37001), compliance (ISO 37301), information security (ISO 27001), and business continuity (ISO 22301, BCMS). It also complies with global regulations in the medical device field (FDA, MDR, IVDR) and transparently discloses these activities through EcoVadis and the UNGC Communication on Progress (CoP). Key initiatives going forward are further strengthening ethics management and advancing the risk management system.

4. Sustainability Key Policies — 5 Areas

The Company pursues ESG management across five strategic directions. Centered on ESG management, the Company practices responsibility through specific activities across safety, health and environment; ethics and compliance; sustainable supply chain; human rights; and community contribution, as follows:

5. Safety · Health · Environment (SHE) Policy

Based on five management principles for safety, health, and environment, the Company operates the Occupational Health and Safety Management System (ISO 45001) and the Environmental Management System (ISO 14001) in an integrated manner. The starting point is placing the life, safety, and health of workers — both employees and partners — at the forefront of management. On this foundation, the Company practices management that prevents risks before incidents occur, strictly observes relevant laws and regulations, proactively cares for employee health, and considers the environment.

6. Ethics Charter

The Company's ethics management begins with the Ethics Charter, which embodies five core values. This Charter is a commitment regarding the attitude with which the Company conducts business and engages with stakeholders, as follows:

7. Anti-Corruption Charter

The Company's anti-corruption activities begin with the commitment to never tolerate corruption, and are operated based on five core principles: zero tolerance, pre-verification, dealer management, gift limits, and internal control. These principles are embodied in the following Anti-Corruption Charter.

8. Sustainable Supply Chain Policy

The Company operates a supplier ESG evaluation system, applies environment, human rights, and anti-corruption codes of conduct to Tier 1 suppliers, and proactively responds to the ESG requirements of global customers such as LifeScan.

9. Human Rights Policy and Human Rights Management Declaration

The Company practices human rights management that values human dignity and worth, and declares this human rights policy to fulfill its social responsibility regarding respect for human rights. To this end, the Company supports and complies with international conventions and guidelines related to human rights and labor.

Human Rights Management Declaration

i-SENS (hereinafter "the Company") guarantees human dignity and worth in all management activities, and employees comply with this human rights policy and practice human rights management by adopting it as the standard for their code of conduct and value judgment. This human rights policy applies to the Company's employees and is also recommended for compliance by all stakeholders in business relationships with the Company. The Company also helps employees more deeply understand and recognize human rights and provides education and information necessary for human rights management.

This human rights and responsible management policy does not rely solely on the Company's own standards but is grounded in the major norms agreed upon by the international community, ensuring its universality and reliability. The international standards the Company supports and complies with are as follows:

These international standards encompass the fundamental rights of human beings (UDHR), the procedures companies should follow to respect human rights (UNGP), international standards on labor (ILO), responsible business management principles (UNGC), and due diligence methods for examining risks across the supply chain (OECD). The Company comprehensively reflects these and consistently practices human rights protection and responsible management on the basis of international standards.

10. Community Contribution Policy

The Company's community contribution is based on its sense of mission as a global healthcare company and is carried out in accordance with the following five policies.

11. ESG External Assessments

External Assessment Results

As the Company solidifies its cooperation framework with its global partner LifeScan and accelerates entry into the European CGM (Continuous Glucose Monitoring) market, the Company is intensively strengthening its response capability for global ESG assessments.

In the Korea Institute of Corporate Governance and Sustainability (KCGS) assessment, the Company's integrated rating advanced one notch from the previous year to B+, recognizing improvements in governance and the overall level of ESG management.

In the EcoVadis assessment, the rating was adjusted from Silver in 2024 to Bronze in 2025. This does not reflect a regression in the Company's ESG performance but rather an upward adjustment of the rating baseline due to the overall improvement in ESG levels among participating global companies. The Company's absolute assessment score in fact improved year-over-year, and in response to changes in this relative assessment environment, the Company is reviewing its overall processes and further advancing its external response capabilities.

In addition, the Company faithfully submits the United Nations Global Compact (UNGC) Communication on Progress (CoP) every year, transparently disclosing its sustainability management performance. Key assessment and assurance status is as follows.