01. CEO Statement Despite global efforts for sustainability, our planet is constantly facing existential threats: depletion of natural resources, environmental pollution, global warming, and more. These global challenges affect the way we manage our operations as well as the way we do business within global supply chain, and their impact will only continue to intensify over time. At KMW, we understand that our business operates in this complex reality. We believe that we can, and should make a difference. As a company, we will address the rising challenges and opportunities with a systemic and longer-term perspective. We will stay committed to our shared responsibility of building a more sustainable world for the next generation.

02. Energy and Climate Change Through the adoption of the Kyoto protocol in 1997 and its entry into force in 2005. Also, through the adoption of Paris agreement in 2015 and its entry into force in November 2016, KMW will strive to reduce absolute GHG emissions by 50% and contribute to limit the global average temperature rise to 1.5℃ or lower in 2030.

In line with our commitment, we ensure that our business is conducted in a way that conserves energy and reduces greenhouse gas emissions. We have adopted various new systems, including Greenhouse Gas Inventory and Carbon Management System in 2010 and Green SCM in 2015. In 2021, KMW is on track to make all criteria a reality that will reduce 50% of carbon emission by 2030. Standard for reducing carbon emissions will be applied to all employees and overall business operations and processes.

03. Carbon & Energy Management In keeping with our sustainability commitment, we created a QS team for carbon management. At KMW, every team is given the responsibility and authority to plan and manage energy consumptions and carbon emissions. We also announced “Carbon Management Guide” for KMW employees to follow.

The biggest sources of emissions at KMW are LNG and purchased electricity. That’s why we are mainly focusing on reducing emissions from stationary combustion (direct emissions) and electricity consumption (indirect emissions). By controlling the energy usage, we were not only able to reduce carbon footprint but also achieve productivity enhancement and cost-saving effects across the board. But we still have more to do. We will continue to demonstrate environmentally responsible practices and lead by example.

04. EHS Management Starting with Dongtan Factory, the first KMW site to earn ISO 14011 certification in 2001, KMW has acquired ISO 14001 certification for all of its business sites in Korea. Since 2012, we have successfully expanded the case to overseas sites, setting up well-functioning environmental management systems with ISO 14001 certification. In 2013, we launched an integrated verification and audit system to effectively manage environmental compliance and performance of KMW suppliers.

We created special groups dedicated to monitor and manage environment compliance in each team, and established a wide variety of training programs to educate and empower our employees on sustainability. We have digitized documents containing information on chemical substances using the MADAMSII system to closely keep track of and comply with environmental regulatory updates in Korea and abroad.

We take an agile and systematic approach toward environmental issues. Our efforts include: building internal process to enable fast response to domestic and international regulatory changes, prohibiting the use of ozone depleting substances and four conflict minerals, and applying eco-friendly product design for easier recycling.

05. Quality Management We are committed to delivering products of the best quality and performance to our customers, by constantly pursuing perfection and optimization in every aspect—from design, procurement to manufacturing process.

06. Conflict Minerals KMW is making various efforts to prevent the use of 3TG (gold, tin, tantalum, tungsten) and cobalt extracted from mines owned by armed groups in conflict-affected areas. With increasing expectations by stakeholders on reliable and transparent sourcing, we are continuously increasing the number of CFS (conflict-free smelters) within our supply chain for responsible mineral procurement.

● KMW’s Conflict Minerals Management Policy

As a responsible corporate citizen, KMW’s policy is to eliminate the use of conflict minerals contained in our products that directly or indirectly finance or benefit armed groups in the conflict zones.

    ㆍ KMW will implement procedures compliant with and in support of the activities of the prohibit the use of conflict minerals.
    ㆍ KMW will urge its subcontractors(suppliers) to purchase conflict minerals from smelters certified by the Conflict-Free Smelter Program.
    ㆍ According to the internal standard of audit, KMW will conduct the evaluation on its suppliers regarding conflict minerals.


● Compliance with our suppliers

KMW applies the same criteria for its conflict mineral management to all suppliers and requires them to abide by KMW's Conflict Minerals Management Policy.

    ㆍ Our suppliers shall not use all minerals from conflict affected smelters.
    ㆍ Our suppliers need to have policies in place to reasonably assure that products and components supplied to KMW are not sourced from conflict minerals.
    ㆍ Our suppliers are requested to carry out and meet their due diligence obligations along the supply chain. This includes the implementation of measures which ensure
        that the minerals used by suppliers - particularly gold, tin, tantalum, tungsten and cobalt - do not contribute to the direct or indirect support of armed conflicts
        or are in connection with violations of human rights.
    ㆍ Our suppliers shall take corrective action in a timely manner when it discovers that it is not a verified smelter through EICC/GeSI Conflict-Free Smelter Program.