Heesung Catalysts has worked to address environmental challenges in industrial settings through catalyst technology, while also pursuing greater sustainability across its overall management — from building safe workplaces and fostering a fair organizational culture to establishing a transparent governance structure. To share these ESG* efforts and key achievements from 2025, Heesung Catalysts has published its 「2026 Sustainability Report」.

The report covers a wide range of sustainability initiatives, including eco-friendly technology development and climate change response in the environmental domain, as well as safety management, human rights management, and ethical management.

*ESG: Environment, Social, Governance

Following the publication of its first Sustainability Report in 2025, Heesung Catalysts has released another report in 2026, building ESG disclosure into a regular process of review and communication.

This report identifies key ESG issues based on stakeholder feedback and materiality assessments, and systematically presents major achievements alongside future improvement plans. It offers a comprehensive look at how Heesung Catalysts has practiced responsible management across environmental, social, and governance domains, guided by its vision of becoming “a catalyst-based eco-friendly technology leader realizing a carbon-neutral society.”

ESG Strategy Framework

Heesung Catalysts’ ESG strategy is built around three pillars — Environmental, Social, and Governance — all connected toward a single vision: “a catalyst-based eco-friendly technology leader realizing a carbon-neutral society.”

Heesung Catalysts pursues its sustainability management across all three domains through three strategic directions.

First, building a carbon-neutral implementation framework. Heesung Catalysts works to reduce carbon emissions at industrial sites through catalyst technology, while simultaneously developing the systems needed to achieve carbon neutrality at its own facilities. The goal is to become “a sustainable company pursuing eco-friendly transition.”

Second, advancing ESG-based social responsibility management. With the goal of becoming “a company that practices transparent and fair social responsibility management,” Heesung Catalysts fulfills its social responsibilities across all aspects of its operations, including employee safety and human rights, a fair organizational culture, and mutual growth with business partners.

Third, establishing a sustainable eco-friendly business framework. For the first two strategic directions to translate into meaningful outcomes, they must be underpinned by an ethical and transparent management structure. Heesung Catalysts manages this strategy in connection with quantitative targets: achieving a GPTW score of 80 or above, maintaining a zero-accident workplace, and obtaining an AA rating from the Korea ESG Standards Institute.

2025 ESG Highlights

Heesung Catalysts has pursued a range of ESG initiatives across its environmental, social, and governance domains to support sustainable growth. Below are the key ESG achievements from 2025, as featured in the 2026 Sustainability Report.

Environmental

• Establishing and implementing a 2030 greenhouse gas reduction plan
  Heesung Catalysts set a target to reduce greenhouse gas emissions by 20% by 2030 and has been advancing mid-to-long-term carbon reduction initiatives, including improvements to process and facility efficiency and enhanced energy data management.

• Strengthening the foundation for renewable energy transition through K-RE100 membership
  By joining K-RE100, Heesung Catalysts has established a basis for expanding renewable energy use and strengthened the implementation framework for eco-friendly facility operations and energy transition.

• Conducting Life Cycle Assessments (LCA) for key components
  Heesung Catalysts conducted life cycle assessments for key components, analyzing environmental impacts across raw material sourcing, production, use, and disposal stages, and advanced its product environmental impact management system.

• Applying an eco-friendly product design process
  Heesung Catalysts introduced an eco-friendly product design process that incorporates environmental considerations from the earliest stages of product development, and pursued the development of sustainable raw materials to strengthen product competitiveness.

• Participating in a voluntary agreement to reduce particulate matter
  Heesung Catalysts joined a voluntary agreement to reduce particulate matter emissions and has been carrying out activities to lower air pollutant levels, with plans to continue these efforts going forward.

Social

• Recognition for commitment to safety management
  In recognition of its efforts to strengthen hazardous material safety management through field-focused activities — including the elimination of potential hazards, regular inspections, and emergency response drills — Heesung Catalysts received a commendation from the Chief of Siheung Fire Station.

• Establishing a human rights management system
  Heesung Catalysts built a human rights management framework to protect employee rights and prevent human rights risks, through the adoption and declaration of a Human Rights Charter, operation of a grievance handling system, and delivery of statutory and human rights education.

• Conducting human rights impact assessments and status surveys
  Heesung Catalysts carried out human rights status surveys and impact assessments across 27 departments company-wide, examining human rights issues throughout its organizational culture and working environment.

• Zero grievances filed
  Heesung Catalysts operates a grievance handling system to gather employee input and address issues proactively. No grievances were filed during the reporting period.

Governance

• Building a compliance management system
  To put into practice a management approach grounded in law and principle, Heesung Catalysts established an ethics and compliance guideline and set out the standards employees are expected to uphold in the course of their work.

• Embedding an ethics and compliance culture
  Heesung Catalysts runs ethics pledge programs and training courses for all employees, strengthening the institutional foundation needed for ethics and compliance to take root across every aspect of the business.

• Spreading a culture of ethical management
  To prevent unethical conduct and foster a transparent organizational culture, Heesung Catalysts operates reporting channels including a cyber whistleblower system, and continues to promote awareness of ethical management throughout the organization.

The ESG initiatives carried out across environmental, social, and governance domains have also produced meaningful results in external evaluations.

In 2025, Heesung Catalysts received a B rating in the CDP* assessment and ranked in the top 7% globally in the EcoVadis evaluation. The company was also assessed in the top 1.3% in the Hyundai Motor and Kia supply chain ESG audit, and received a Level 2 rating in the KODATA ESG evaluation.

*CDP (Carbon Disclosure Project): A global platform for corporate climate-related disclosure and assessment.

A Message from the ESG Manager

What were the key considerations that shaped the development of the 2026 Sustainability Report? We asked the ESG team directly.

🙋‍♂️Comment from the ESG Manager

“With the publication of our second Sustainability Report in 2026, we were able to manage and present our ESG activities in a more systematic manner than ever before, while demonstrating meaningful progress across key areas.

The preparation process was challenging, requiring us to collect environmental data from each business site, organize it from an ESG perspective, and verify its accuracy in accordance with GRI Standards. However, the process also provided valuable insight into how ESG has become increasingly embedded throughout Heesung Catalysts. It was especially encouraging to see employees across the organization recognize the importance of ESG and actively incorporate it into their daily work.

This Sustainability Report serves as an important milestone in assessing our ESG performance and identifying opportunities for further improvement. We will continue to strengthen our sustainability management framework through ongoing monitoring and transparent disclosure of our ESG activities.”

*GRI(Global Reporting Initiative) Standards: The most widely used international framework for sustainability reporting.

Heesung Catalysts’ ESG Journey

Heesung Catalysts will continue to practice responsible management not only through its technological contributions in the environmental domain, but also across safety, human rights, ethics, and governance — building a stronger foundation for sustainable growth.

For more details on Heesung Catalysts’ ESG strategy, key achievements from 2025, and future improvement plans, please refer to the Sustainability Report.