Environmental
Climate Change Response
Implementing annual goal-based management activities
for greenhouse gases and energy across all its business sites.
Promotion Strategy
Haesung DS conducts annual goal-based management activities for greenhouse gases and energy across all its business sites. In line with this, the company establishes greenhouse gas emission reduction targets in coordination with the annual management plan and carries out reduction activities to achieve the emission performance goals each year.
Furthermore, the emitted greenhouse gases are verified by a third-party organization.
Mid- to-Long-Term Goals
Reduce greenhouse gases by 50% (compared to 2018 levels) by 2040 and achieve carbon neutrality by 2050.
South Korea set a target to reduce greenhouse gases by 40% (compared to 2018 levels) by 2030. Driven by the growing demand for semiconductors, the company's product production has increased, and the company’s greenhouse gas emissions for 2023 (SCOPE 1 and 2) were recorded at 65,732 tCO2eq. In response, Haesung DS is increasing research and investment efforts to reduce greenhouse gas emissions and is incorporating the cost of purchasing carbon credits into our mid-to-long-term management scenarios for review. Additionally, Haesung DS is continuously advancing greenhouse gas reduction activities and investments in renewable energy, setting a mid-to-long-term goal of reducing greenhouse gas emissions by 50% (compared to 2018 levels), targeting 21,760 tCO2eq by 2040, to achieve carbon neutrality by 2050.
Vision: Building a Sustainable Environment Where People and Nature Coexist
2020
-
Establishment of Eco-friendly Infrastructure
-
- Operation of the environmental committee
- Development of mid-to-long-term strategy based on climate change scenarios
- Expansion of eco-friendly investments
2030
-
Establishment of Eco-friendly Management
-
- Formation of climate change response organization and development of specialized personnel
- Establishment of a company-wide KPI-based goal/performance management system
2040
-
Full-Scale Implementation of Eco-Friendly Management
-
- Expansion of portfolio for low-power, eco-friendly products and solutions
- Global value chain expansion in the renewable energy sector
2050
-
Realization of
carbon neutrality -
- 100% utilization of renewable energy
- Complete transition to an eco-friendly company
Key Regulatory
Compliance Strategy
| Relevant Regulations | Risks and Opportunities | Potential Financial Impact | Response Strategy |
|---|---|---|---|
| Carbon Neutrality and Green Growth Basic Act (for climate crisis response) |
|
|
|
| Energy Use Rationalization Act | |||
| Air Quality Preservation Act |
|
|
|
| Odor Prevention Act |
Risk Factors
Regulations /Agreements
The South Korean government has introduced new laws and regulations to address the climate crisis through carbon neutrality by 2050.According to the carbon neutrality scenario announced by the government in 2021, the national greenhouse gas reduction target for 2030 is set at a 40% reduction from 2018 levels. The increase in costs associated with the purchase of carbon credits and future carbon emissions-related strategy costs will place a burden on business operations.Additionally, the legalization of carbon neutrality in foreign markets may impact the company's efforts to acquire new customers and expand its operations abroad.
- Response Measures
- Haesung DS aims to align with the government’s 2050 carbon neutrality goal, integrating it into the company’s mid-to-long-term management strategy. The company will continue its greenhouse gas reduction efforts through increased eco-friendly investments and participation in related campaigns.
- Financial Impact
-
- Increase in carbon credit acquisition costs
- Increased costs for eco-friendly investment
- Time Frame
- Long-term
Market /Technology
As consumer awareness of environmental issues increases, there is a growing shift toward eco-friendly practices in Haesung DS’s key markets, including the automotive and IT industries.The increasing demand for related solutions due to the expansion of low-power products from upstream customers is impacting the company’s product portfolio.Additionally, the rising demand for eco-friendly certifications for business sites and products to maintain customer relationships is leading to an increase in business-related burdens.
- Response Measures
- Haesung DS will expand product development for low-power solutions and will review and obtain the necessary eco-friendly certifications to meet customer demands.
- Financial Impact
-
- Increased costs for eco-friendly certification
- Increased costs in product development
- Time Frame
- Long-term
Image
As the importance of corporate environmental management rises, there is an increasing demand from stakeholders, including investors and consumers, for detailed information regarding the company’s responsibilities. The disclosed information plays a critical role in how stakeholders assess the company’s sustainability.
- Response Measures
- Haesung DS will transparently disclose information about its environmental activities.
Additionally, it is addressing potential risks related to its external environmental activities’ reputation.
- Financial Impact
-
- Increase in costs due to expanded external activities
- Time Frame
- Medium-term
Extreme Weather Events
Haesung DS may incur damage due to extreme weather conditions such as heavy rains, snowstorms, and abnormal temperatures resulting from climate change. Additionally, issues related to raw material supply from domestic and international partner companies could lead to production disruptions and logistical instability.
- Response Measures
- Haesung DS conducts safety assessments and implements improvements across all business sites to prevent and minimize potential damage from extreme weather events. It is also diversifying its partner companies and securing preemptive inventory to mitigate raw material supply issues.
- Financial Impact
-
- Losses incurred due to production disruptions.
- Increased costs for facility repairs and installations
- Rising raw material costs
- Time Frame
- Medium-term
Heat Waves /Droughts
The scarcity of water due to climate change may lead to changes in national management policies and disruptions in water supply, resulting in increased costs in processes that rely on water. Additionally, rising temperatures associated with global warming may lead to higher energy costs to maintain temperature control at business sites.
- Response Measures
- Haesung DS is expanding its technological development and investment activities to reduce water usage and increase the rate of water reuse in the production process. Additionally, to lessen the burden of energy costs, the company is continuously increasing the proportion of renewable energy used at its business sites.
- Financial Impact
-
- Increased burden and costs associated with securing water supplies
- Rising energy costs for utility operations
- Increased investment costs for water recycling and renewable energy
- Time Frame
- Long-term
External Conditions
Instability in raw material supply and fluctuations in energy prices due to conflicts between nations may lead to disruptions in production. The instability in the supply of existing validated raw materials raises concerns about the use of alternative raw materials that may contain unverified harmful substances, potentially resulting in production delays and increased costs for verification.
- Response Measures
- Haesung DS proactively analyzes factors related to changes in external conditions in advance and prevents issues through the dual sourcing of raw material suppliers and the verification process for environmentally hazardous substances.
- Financial Impact
-
- Losses incurred due to production disruptions.
- Verification costs associated with the dual sourcing of raw materials
- Time Frame
- Medium-term
Opportunity Factors
Products
Haesung DS's main product is semiconductor package substrates, which are essential components in semiconductor production. With the increase in the adoption of electric vehicles due to various countries' eco-friendly policies in response to climate change, there is a growing demand for power semiconductors for automotive applications as well as solutions to improve energy efficiency in IT and electronic products.
- Response Measures
- Haesung DS will continue its sales activities and research and development efforts to meet customer solution requirements. By making proactive investments based on market understanding, the company will respond to increasing customer demand and expand into new business opportunities in the eco-friendly sector.
- Financial Impact
-
- Increased sales of key products
- Enhanced impact on corporate growth
- Time Frame
- Medium-term
Market
According to market research firm HIS Markit, the global electric vehicle market is projected to reach an average annual growth rate of 29% by 2030. Another market research company, Trendforce, forecasts that the average annual growth rate for power semiconductors will reach 48% by 2025. These projections are expected to have a positive impact on Haesung DS's revenue growth.
- Response Measures
- Haesung DS will establish an eco-friendly system throughout the entire process of developing, manufacturing, and disposing of automotive semiconductors and power semiconductors. This will involve minimizing the use of chemicals and resources to reduce the emission of pollutants, continuously improving environmental burdens.
- Financial Impact
-
- Increased costs for the development of eco-friendly products
- Increased investment costs for pollutant reduction
- Time Frame
- Medium-term