SCM

Evaluation for Supplier Registration and SCM Risk Management

We uses traditional standards such as quality, delivery, price, and business performance as well as ethical management levels such as environment, safety, legal requirements, human rights, and labor when registering and evaluating suppliers. In addition, the same criteria as above are applied to the regular evaluation of suppliers, and this result is reflected in the review of the renewal contract.

Green Purchase Policy

Hyosung TNC Co., Ltd. adheres to the following principles in purchasing activities to fulfill its responsibilities to users and society of our products through green purchasing activities that contribute to resource conservation and minimize environmental impact.

1. 1) To save resources, avoid unnecessary purchases so that the remaining amount is not available.
2. 2)

   In addition to quality and price, we review the environmental quality of products and give preference to eco-friendly products.

   The meaning of 'eco-friendly product' refers to a product that can contribute to saving resources and reduce environmental pollution compared to other products or services for the same purpose and falls under each of the following items :

   ① Products with environmental mark certification in accordance with the <Environmental Technology Development and Support Act>
   ② Excellent recycled products in accordance with the <Act on the Promotion of Resource Saving and Recycling>
3. 3) In order to expand green purchasing, we will make continuous efforts to discover products that use less toxic chemicals, products that reduce waste, and products that reduce resource consumption.
4. 4) We share our green purchasing policy with our suppliers and encourage activities to improve the environmental quality of our products.

Code of Conduct for Hyosung TNC Suppliers

Hyosung TNC is pursuing sustainable growth as well as a company trusted by the people. As a result, we recognized that suppliers are the source of corporate competitiveness and established the 'Code of Conduct for Hyosung TNC Suppliers'. Through this standard, we not only establish a transparent and fair business relationship between Hyosung TNC and its business partners, but also recommend standards for fulfilling social responsibility to all business partners that do business with Hyosung TNC. This Code has been prepared by reflecting international standards such as the Universal Declaration of Human Rights adopted by the United Nations General Assembly, the ten principles of the UNGC, key conventions proposed by the International Labor Organization (ILO), and the OECD Guidelines. If there is a conflict between the norms and local laws, the stricter standards will take precedence. Hyosung TNC presents the following code of conduct to fulfill its social responsibilities, such as ethical business operation, respect for human rights of business partners, establishment of a safe working environment, and responsibility for environmental management together with business partners.

Ethics and Fair Trade : We promise to establish a transparent and fair trade culture and actively participate in ethical management.

1. ① Anti-corruption : In all processes related to business, such as bidding, signing a contract, and executing a contract, indirectly or indirectly providing money, entertainment, gifts, convenience, etc., or prohibiting unfair demand.
2. ② Fair Trade and Competition : Comply with regulations and standards related to fair trade and competition in the bidding process, and bear any disadvantages such as suspension of trade and contract termination in case of unfair behavior.
3. ③ Customer Satisfaction : Providing the highest level of quality and service for customer satisfaction.
4. ④ Conflicts of Interest : Preventing contracts that may result or involve conflicts of interest between individuals and businesses.
5. ⑤ Intellectual Property Protection : Suppliers protect Hyosung TNC's intellectual property rights and protect all information of subcontractors.
6. ⑥ Personal information protection : Protect personal information of all stakeholders, including suppliers, employees, and consumers.
7. ⑦ Report anonymity and non-retaliation : Operate channels for internal and external stakeholders to report misconduct by employees and protect the identity of the informant so that workers do not fear retaliation.
8. ⑧ Prohibition of illegal procurement : Prohibition of the use of all raw materials and raw materials acquired through illegal and unethical methods such as conflict minerals.

Human Rights and Labor : We respect the human rights of our employees and do not treat them inhumanely.

1. ① No discrimination : Unfair discrimination based on race, language, religion, ethnicity, disability, politics, academic background, and age.
2. ② Fair compensation : Provides fair compensation based on individual ability and performance in fair working conditions.
3. ③ Freedom of assembly and association : Freedom of association for assembly without threat of retaliation or intimidation.
4. ④ Improving the working environment : guaranteeing the working hours determined by the country of operation and providing regular paid leave.
5. ⑤ Prohibition of compulsory and child labor : Compliance with the minimum employment age standard in the business country and prohibition of compulsion to work against employees' free will.
6. ⑥ Protection of property rights: Suppliers respect all intellectual property rights of Hyosung TNC and secondary suppliers.
7. ⑦ Privacy: No interference with employee personal information and privacy such as family, home, and communications.

Safety and Health : Prevent workers' accidents and occupational diseases by identifying risk factors in the workplace.

1. ① Improving the working environment: Creating a pleasant working environment so that employees can work in a healthy and safe manner.
2. ② Prepare for emergencies : Prepare a response plan for each emergency and improve effective evacuation capacity through evacuation drills.
3. ③ Prevention of Industrial Accidents: Efforts to Prevent Industrial Accidents and Occupational Diseases.
4. ④ Hygiene management : The toilets, drinking water, and dormitories used by employees are managed hygienically.
5. ⑤ Safety and Health Education: Provides safety and health information that workers need to know.

Environment: We meet the environmental standards of all products and services we provide, and strive to minimize environmental impact.

1. ① Compliance with environmental laws and regulations : Acquire legally required licenses, as well as identify and comply with the latest legal revisions
2. ② Reduction of environmental impact : efforts to reduce the use of resources and energy used in the process
3. ③ Hazardous Substance Management : Thorough management of hazardous substances harmful to human body or environment
4. ④ Air Pollution Management : Monitoring of air pollutants and prevention facilities used in the process
5. ⑤ Water management : minimize the use of water used in the process and monitor emissions within baseline

The code of conduct for suppliers will be regularly revised, and the revised matters will be announced through the Hyosung TNC website [Win-Win Management] → [Supply Chain Management].
In addition, Hyosung TNC or a third-party evaluation agency of Hyosung TNC may request evaluation and site visits to check compliance with the code of conduct of suppliers.

Document History
Hyosung TNC Supplier Code of Conduct: Announced on August 30, 2019