Responsible Supply Chain

1. Policy and Management (SC1-1 to SC1-4)

Based on the "Supply Chain ESG Evaluation Policy" and the "Supplier Social Responsibility Code of Conduct," the Company conducts regular ESG evaluations of key partner companies in consideration of transaction volume and risk. The evaluation items cover sustainability factors across the supply chain, including labor and human rights, occupational health and safety, environment, and business ethics. In 2025, the Company conducted desk-based ESG due diligence on 10 key domestic partner companies (applying the Supply Chain ESG Evaluation Process IS-ESG-SC), with a comprehensive average score of 76.4 points and 0 companies in the high-risk group (below 50 points). Some partner companies were found to require improvement in environment, occupational health and safety, and business ethics; improvement requests and follow-up monitoring will be conducted. The Company requires its suppliers to comply with the ESG Code of Conduct, including prohibition of forced labor and child labor, industrial safety and health management, compliance with environmental laws, ethical management, information protection, and conflict minerals management, and operates a system of regular surveys, on-site due diligence, assignment of evaluation ratings, and verification of the implementation of improvement actions. The Company also intends to gradually expand the scope of partner companies subject to evaluation (SC1-1).

Evaluations are conducted in accordance with the "ESG Supplier Management Procedure IS-ESG-SC." A system invitation e-mail is sent to the partner company contact, who then logs in, responds to and submits the survey; follow-up actions are taken in accordance with the results. The detailed assessment areas encompass labor and human rights policies, grievance handling, non-discrimination, prohibition of forced and child labor, wages and working hours, supply chain management, occupational health and safety, environmental management, and ethical management; where necessary, related supporting documents are obtained to verify the appropriateness of the evaluation (SC1-2).

To enable partner companies and stakeholders to raise complaints or violations, the Company operates an anonymous reporting system through four channels in accordance with its Responsible Raw Material Procurement Policy, with the internal audit function and the Purchasing Office handling received cases. Anyone may report through the online whistleblowing site (https://i-sens.co.kr/ethics_report/), e-mail (ethics@i-sens.com), telephone (02-910-0411), or mail (i-SENS Ethics Management Office, 43 Banpo-daero 28-gil, Seocho-gu, Seoul) (SC1-3).

In addition, the Company has enacted and implemented the "Supplier Social Responsibility Code of Conduct," and mandates social responsibility management by obtaining ESG Compliance Agreements from its suppliers. The Code of Conduct consists of six areas: stable supply and quality; human rights protection; safety and health; environmental protection; ethics and compliance; and non-use of conflict minerals 3TG (tin, tantalum, tungsten, and gold) (SC1-4).

2. Evaluation, Support, and Performance (SC2-1 to SC2-4)

In the 2025 environmental evaluation, 10 supplier companies received environmental impact assessments; the number of suppliers with actual or potential significant negative environmental impacts was 0, and there were no cases of improvement agreement or contract termination (SC2-1). In the social evaluation, of a total of 130 suppliers, 10 key partner companies received social impact assessments; the number of suppliers identified as having actual or potential negative social impacts and the number of suppliers with which the relationship was terminated as a result were both 0. In particular, the number of suppliers with confirmed human rights violations such as forced labor or child labor was 0, which is consistent with the 0 cases of supply chain child labor and forced labor violations disclosed in the Human Rights Management chapter (S3-3) (SC2-2).

The Company operates regular quality meetings with its partner companies to respond to quality issues and discuss improvement measures, shares customer requirements and regulatory information, and conducts collaboration activities to enhance the quality competitiveness of partner companies (SC2-3). In 2025, partner company complaints received and processed were both 0 cases (processing rate 0%). Separately, the Company does not currently operate a dedicated formal program to support partner companies' implementation of social responsibility; it is reviewing the establishment of guidelines and support measures to strengthen the ESG capabilities of partner companies (SC2-4).

3. Responsible Raw Material Procurement Policy

The Company's Responsible Raw Material Procurement Policy consists of five chapters: general provisions and purpose; definitions of terms; partner company requirements; operational processes; and grievance handling and improvement. The operational process operates in four areas. First, in the raw material procurement due diligence stage, the Company collects the CMRT/EMRT at least once a year and verifies conflict mineral non-use commitments and RMAP-certified smelters. Second, in the counterfeit parts and intellectual property check stage, the Company reviews country-of-origin certifications, serial tracking, and intellectual property infringement. Third, in the hazardous substance regulation compliance stage, the Company responds to REACH, RoHS, and TSCA regulations by collecting MSDSs and evaluating high-risk substances. Fourth, in the supply chain extension management and monitoring stage, the Company secures transparency in lower tiers of the supply chain, encourages participation in RMI and IRMA, and conducts third-party due diligence.