Climate Change

Mando sets up company-wide greenhouse gas reduction goals and establishes core strategic tasks to contribute to the global efforts
to respond to climate change under Post-2020. Meanwhile, Mando promotes and manages outcomes of the climate change response system,
greenhouse gas management, and energy-saving activities at each worksite.

Operation
of a risk
management

Governance, strategy, risk management, and indicators, and to this end, the following activities are being carried out.

Announced Item Major Activities
1. Governance
  • · Preparation of a climate change management system linked to the working-level organization,
      with the Sustainable Management Committee as the highest decision-making body
2. Strategy
  • · Management system l Increased acquisition of international certifications and participation in
      initiatives and development of environment-friendly products
  • · Reduction l Promotion of greenhouse gas reduction activities at all business places
  • · PartnershipㅣManagement of partners’ climate change response measures and facilitation of
      an environment friendly society
3. Risk management
  • · Analysis of transition risks and physical risks related to climate change
  • · Review of management risks and integrated consideration into management activities
  • · Direct cost of responding to greenhouse gas regulations l
      CER expected to come down by 78,000 tCO2 in 2025 (cost of KRW 2.35 billion)
  • · Mid-term greenhouse gas reduction goal l Upper limit of emission (goal) for 2025: 61,772tCO2

Operation
of a risk
management
system

Mando manages climate change risks in four stages and reflects the results of periodic risk analyses
in business strategies. In 2021, Mando will start review performance and develop improvement measures
linked with specific risk management activities.

  • Analysis of
    climate change
    risks
    • Definition of related risks
    • Risk analysis(Cycle of
      occurrence, possibility,
      financial geographical-time
      impact of the risk, etc.)
  • Review of
    corporate
    response
    Establishment of strategy
    for each topic
    • Greenhouse gas reduction
    • Construction and operation
      of business places
    • Products and services
    • Technology R&D
    • Cost of climate change
      response
  • Risk
    management
    and response
    activity
    Specific management
    activities
    • Improvement of energy
      efficiency at business places
    • Expansion of
      renewable energy
    • Promotion of greenhouse
      gas reduction projects
    • Climate change initiative
    • Support for the reduction
      projects of partners
  • Monitoring
    and
    improvement
    of risk
    response
    • Monitoring of performance
    • Evaluation of activity results
    • Reflection and improvement
      of evaluation results
    • Establishment of the annual
      activity plan for next year

Management
of Greenhouse
Gas Emissions

Mando's direct greenhouse gas emissions (Scope 1) are generated by boilers, business vehicles, and
emergency power generators at worksites. Indirect emissions (Scope 2) are mainly related to
the power and steam consumption or hot water supplied from outside. Mando checks 15 items indirectly associated with greenhouse gas emissions from its business activities,
aggregates and manages all computable greenhouse gas emissions.

Energy
Management

Mando strives to achieve ‘Zero Waste Factories’ with reduction of power waste during non-operating hours
through the ‘Activities to Stop Five Wastes’ including shutoff of air valve in the production waiting line,
turning off the lighting, and prevention of idling of air conditioning devices.
Company-wide, Mando regularly operates the energy reduction council for each worksite and
reports the achievement rate of each team for energy reduction targets and plans.