Sustainable
Life Care Platform
SK shieldus 2022 Sustainability ReportAbout This Report

Contents

SK shieldus publishes its first sustainability report in 2022 to systematically manage and transparently disclose ESG(Environmental, Social, and Governance) management strategy and major tasks. We laid the foundation for ESG
management practice with the establishment of ESG management strategy in 2021. This report introduces our ESG
vision, strategic directions, and key areas based on SK's management philosophy. As the importance of non-financial
performance management grows, we also announce environmental, social, and governance performances in accordancewith global standards including GRI (Global Reporting Initiative) Standards through this report. We will publish annual
sustainability report to transparently disclose our ESG activities and results and expand communication with stakeholders.

1. About SK shieldus

2. ESG Strategy

3. Sustainable Fundamentals

CEO Message

13

ESG Strategy System & Major Performances

45

Governance05

Company Profile

15

Eco-friendly Management System

47

Risk Management09

ESG Highlights

Management Approach48
	Stakeholder Engagement &10[ESG Focus]

Eco-friendly Business Portfolio Management

04

Creating Social Value through Business
11
	ESG Management Activities

Materiality Assessment

Advancement of Environmental Management
Response to Climate Change
The Practice of Circular Economy

4. Factsheet

Social Impact Creation

51

Economic Performancestakeholders.

Management Approach

52

Environmental Performance

Enhancing Social Value

53

Social Performance

Reporting Principle[ESG Focus] O perating the EQST, a White Hacker Group

57

Governance Performance

Overview

in the Value Chain
20

This report focuses on the values and practices that we consider the most important, derived from the opinions of[ESG Focus] D igital Inclusion – Contributing toThis report was mainly prepared in accordance with a global reporting guideline GRI Standards: Core Option and also

Digital-Based Safety and Care

includes the status of implementation of SASB (Sustainability Accounting Standards Board) indicators.

The Practice of Customer-centered Management

5. Appendix

Creation of ECO Shieldus

Reporting Period

Safety & Health Risk Management

This report contains our sustainability management activities and performances from January 1 to December 31, 2021, and

59

GRI

61

SASB

62

UN SDGs-Related Activities

Responsible & Transparent Management

63

Independent Assurance Statement

Management Approach

65

Association Membership & Awards

Talent Management

the period of some information extends to the first half of 2022.

[ESG Focus] Ensuring Employee Rights

Reporting Scope

39

Reporting scope covers the head office (Pangyo, Samseong-dong, Customer Center, and Recycle Center), local head offices(Western Seoul, Eastern Seoul, Gyeongin, Gyeongwon, Yeongnam, Gyeongbuk, Chungcheong, and Honam), and branch

BOD-Centered Responsible ESG Management
Enhancing Ethics & Complianceoffices across the country. The scope of financial performance includes subsidiaries.

Transparent Management

Assurance
The objectivity, fairness, and credibility of contents were verified by Korea Management Register, a third-party assurance
agency. The assurance statement can be founded on pages 63~64.

Inquiries
Homepage: www.skshieldus.com
Department: ESG Office – ESG Promotion Team
Email: shieldus_esg@skshieldus.com

Interactive PDF User Guide
This report was published as an interactive PDF with functions suchas navigation to related pages and shortcuts to related information

Navigation
Go to cover page
Table of contents
Previous view

03

1
About SK shieldus
04

CEO Message

05

Company Profile09

ESG Highlights

10[ESG Focus] Creating Social Value through Business

11

ESG Management Activities in the Value Chain

04
SK shieldus
2022 Sustainability Report

CEO Message
We engage in four core businesses of Cybersecurity (Infosec),
Converged Security (SUMiTS), Physical Security (ADT Caps),
and Safety & Care. Recently, technologies such as AI, Digital
Transformation (DT), Cloud, and Quantum are applied to entire
business areas to further enhance our competence.

About SK shieldus
CEO Message
Company Profile
ESG Highlights	[ESG Focus] Creating Social Value
through Business	ESG Management Activities inthe Value Chain

The security business is recognized as a growing industry in
the era of convergence and digital transformation. In particular,
the vast wave of ESG serves as a significant opportunity for
SK shieldus, which protects the country's foundation and thepeople's lives. In fact, it can be said that the nature of SK shieldus'
business is deeply related to ESG. Because we have served asa social safety net to protect tangible and intangible assets andpeople's lives long before ESG became a rising issue. Based on
the nature of ESG-friendly business, we have established the
Financial Story management centered on ESG management andimplemented its methodology and promotion system.

ESG Strategy
Sustainable Fundamentals
Factsheet
Appendix

Dear stakeholders,I sincerely appreciate your trust in andencouragement to SK shieldus.
With the rapid changes in the business environment domestic andabroad, social interest in corporate ESG activities is growing. This
trend requires companies not only to fulfill their environmental andsocial responsibilities but also to establish a governance structurethat guarantees transparent decision-making. Accordingly, we
intend to further solidify our commitment to and responsibility for
ESG management through the first sustainability report.
SK shieldus is the “life care platform” company that ensures safety
and security in Korea in both the Real World and the Cyber World.

the growing insecurity amongst the single-person households,“Emergency Safety and Security Service” jointly conducted with
the Ministry of Health and Welfare, and senior care that combines
AI voice recognition and digital healthcare such as “NUGU Opal
Safe.” Furthermore, we are also actively engaged in building
a cyber safety net to respond to escalating cyber-attack issues
and ensure a safe business environment while taking the lead insharing cyber security knowledge for the public interest, such as
publishing a security guidebook and training security talent.
In terms of governance, we have established a transparent
governance structure by operating board committees underthe BOD and enhancing the professionalism, diversity, andindependence of the BOD, thereby promoting BOD-driven
responsible management. Compliance risk is systematically
prevented, monitored, and managed by advancing our ethicalmanagement and compliance system.

In the environmental area, resource and energy saving andefficient operation are promoted in overall business activities
to respond to climate change. We are also implementing ecofriendly management to minimize GHG emissions and pollutants
generation with the goal of achieving “Net Zero 2040.” To this end,
SK shieldus plans to fully exchange business vehicles into electricand hydrogen vehicles by 2040 and practices a circular economy
by recycling recovered devices and using eco-friendly packaging
materials.

SK shieldus will set ESG as the basis of management philosophy andinternalize ESG management in all business areas by continuing topromote various environmental, social, and governance activities.
We will solidify our dominance as the “Life Care Platform”
company based on this commitment and pursue co-prosperity
with suppliers, local communities, shareholders, employees, andcustomers. We ask for your encouragement and advice to help SK
shieldus create a sustainable future with all stakeholders throughour first publication of the sustainability report.

In the social area, SK shieldus is very proud of our contribution
to establishing a safety net that protects society from crimes andindustrial accidents and deeply recognizes social responsibility.
Accordingly, we endeavor to provide high-level security products
and services to ensure that customers are satisfied and confident.
Services aimed at protecting the socially vulnerable class will also
continue, including CAPS Home Service with Seoul City to address

Thank you.

August 2022
President of SK shieldus Park Jin-hyo

05
SK shieldus
2022 Sustainability Report

About SK shieldus
CEO Message
Company Profile
ESG Highlights	[ESG Focus] Creating Social Value
through Business	ESG Management Activities inthe Value Chain
ESG Strategy
Sustainable Fundamentals
Factsheet
AppendixCompany Profile
About SK shieldus

Our Vision

SK shieldus is a converged security provider with business capabilities in both cybersecurity andphysical security based on Big Tech. Now we are evolving into a Life Care Platform operator by
constantly expanding our business model in the areas of Safety and Care. Based on differentiatedservices through the organic connection of converged security, home security, cloud, and mobile
platforms and accumulated professionalism in the security business, we provide innovative products
and services using Big Tech such as AI/DT, Cloud, and Quantum.

SK shieldus is a combined word of “shield” and “us,” meaning to create an environment where customers,society, and all of us can feel safe. Our slogan “Technology for everyday safety” means a mission to
make a good society where “everyday safe” creates a “safe society” and a “safe society” can continue“sustainable tomorrow” through New ICT technology. To this end, SK shieldus has established five corevalues of HAPPI for actions and decision-making to practice sustainable management. Through this,we will continue to develop ourselves and pursue the happiness of stakeholders.

Company Overview
Core Values

Name

SK shieldus Co., Ltd.

CEOPark Jin-hyo

Establishment

Mar. 5, 2021 (integrated company) (Former Infosec: Jun. 26, 2000, former ADT Caps: Jan. 22, 1971)

Head Office23, Pangyo-ro 227beon-gil, Bundang-gu, Seongnam-si, Gyeonggi-do, Republic of Korea

Employees

6,563 persons (as of the end of 2021 including fixed-term workers)

Business
Domain1. Cybersecurity- Information security control and consulting, solution building, cloud security, mobile caresolution, etc.
2. C onverged security-S UMiTS that is based on an intelligent converged security platform; OT (Operational
Technology) security that provides security for industrial and production facilities, etc.
3. P hysical Security-U nmanned security and video control using AI-based CCTV and sensors, access security,
facility management service, etc.
4. Safe & Care
- Smart home safety, unmanned parking, unmanned stores, disinfection business, senior care

Subsidiaries

Capstec, inc., Infosec Information Technology(Wuxi)Co., Ltd., SK shieldus America, Inc.

Financial Status

Sales

Operating profit

Net profit

Total assets

Total equity

Credit rating

KRW 1,549.7 billion

KRW 121.9 billion

KRW 16.9 billion

KRW 3,265.2 billion

KRW 376.2 billion

AO(corporate bond)

H

A

P

P

I

Honesty

Accountability

Professional

Partnership

Innovation

We do ourbusiness honestly
and transparently
and are proud of it.

As a memberof society, we
contribute to social
development
beyondorganizational
growth.

We provide thebest quality
and the bestdifferentiatedservice throughceaseless efforts.

We create greatersynergy throughcommunicationand cooperation
based on mutual
respect.

We lead newchanges withforwarding
thoughts andtechnology.

06
SK shieldus
2022 Sustainability ReportCompany Profile
Introduction to Our Business

About SK shieldus
CEO Message
Company Profile
ESG Highlights	[ESG Focus] Creating Social Value
through Business	ESG Management Activities inthe Value Chain

SK shieldus has expanded its business capabilities and customer size focused on cybersecurity and physical security services. We are a leading provider of converged security markets combining the two sectors. We
generated sales from four sectors of cybersecurity, converged security, physical security, and Safety & Care.

1. Cybersecurity

2. Converged Security

Sustainable Fundamentals

Cybersecurity is a service to protect systems and communication networks against threats that may arise
from unauthorized access or various cyberattacks. It is categorized as information security services, cloudsecurity services, and mobile care solution services providing a full-service cycle including consulting,
Solution/SI, security control, and ISAC.

FactsheetBiz. Type

Converged security service provides customers' assets and safety with omnidirectional control and a
rapid threat response system using an intelligent platform against diverse and complex security threats.
Converged security service, which is focused on the intelligence platform of ICT Tech such as AI/Big
Data/Machine Learning, is categorized into converged security SI, industrial safety, OT security, andbuilding management services.

ESG Strategy

Service

Details

Appendix

Information
security
Cybersecurity

Consulting

Building an information protection system in consideration of thecustomer's security environment and providing information security
measures

Solution/SI1)

Supplying, building, and maintaining information security solutions fordomestic and global companies

Security
Control

Professional support for operation and management of customer's security
systemISAC2)IT technical support and failure response

Biz. Type

Converged
security

Service

Details

Converged
security SI3)

Enhancing the value of security services through integration between various
solutions

Industrial safety

Monitoring service of industrial accidents using IoT sensors for image
analysis and threat factors of industrial sites in high-risk manufacturing andconstruction businessOT4) security

Response to cyberattacks on industrial control networks and control systems

Building
maintenanceIntegrated management that provides convenience and security throughlinking between the facility operating system BAS5) and the security system

Cloud Security

Integrated services, including consulting, solution deployment, operation,and monitoring to protect data, applications, and infrastructure in a cloudenvironment3) System Integration

Mobile Care Solution

Vaccine and care services such as detection of mobile smishing andapplication, and family location notification service

Platform-based 4 Major Converged Security Service Areas

1) System Integration

2) Information Services Assistant Center4) Operation Technology5) Building Automation System

Industrial Safety
SUMiTS Safety

Converged Security SI
System Integration
Intelligence
Platform

OT Security
SUMiTS OT

SUMiTS

Collection → Analysis →Response process

Building Maintenance
SUMiTS FM

07
SK shieldus
2022 Sustainability Report

About SK shieldus
CEO Message
Company Profile
ESG Highlights	[ESG Focus] Creating Social Value
through Business	ESG Management Activities inthe Value Chain
ESG Strategy
Sustainable Fundamentals
Factsheet

Company Profile
3. Physical Security

4. Safety & Care

Physical Security is a service to prevent and defend against various security threats and manage thesafety of tangible and intangible assets owned by the state, businesses, and individuals. It is categorized
as Central Monitoring Service (CMS), which provides monitoring and dispatch security through remotesurveillance equipment based on wired and wireless communication, and facility management (FM),which provides facility management services.

Safety & Care is a crucial area of business model innovation for us to evolve into the "Life Care Platform"
and represents the highest growth rate. Our current growth is focused on smart home safety, unmanned
parking, and quarantine services. We also expect a high growth rate in the newly launched unmanned
stores and senior care.

Biz. Type

Biz. Type

Physicalsecurity

Service

Details

CMS[Central Monitoring Service]Detecting accident signals in real time through sensors andimaging devices to dispatch support and report to the relevant
authorities can be possible

FM[Facility Management]

Building and factory energy and facility management andsecurity

Appendix

Unmanned Security
Support for real-time monitoring of
security areas and quick dispatch
support with 24-hour control and
CCTV remote monitoring

Video Surveillance
Safe security area monitoringwith high-definition CCTV and
AI intelligent video analysis
technology

Access Control
Managing fingerprint and facialrecognition technology, bodytemperature measurement
solutions, access security, andattendance at once

Service

Details

Smart home safety

Service that provides identification of outside of front door andvisitor, facial recognition access function, courier monitoring,and 24-hour security dispatch service in emergencies

Unmanned parking

Service that provides construction and operation of unmanned
parking system (entry/exit system, unmanned settlement,
regular vehicle registration, etc.), including monitoring andemergency security personnel dispatch service

Disinfection

Service includes disinfection, pest control, insect repellent,
general sterilization, legal infectious disease sterilization, etc.

Unmanned store

Platform-based unmanned store-only integrated service thathelps store owners to operate their stores remotely 24/365 withconfidence

Senior care

Sharing and taking measures related to care, health, and safety
between nursing facilities and caregivers based on the platform

Safety & Care08
SK shieldus
2022 Sustainability ReportCompany Profile
Company History

About SK shieldus
CEO Message
Company Profile
ESG Highlights	[ESG Focus] Creating Social Value
through Business	ESG Management Activities inthe Value Chain

Former SK Infosec merged with former ADT Caps on March 5, 2021 and has conducted business as an integrated corporation with ADT Caps. On October 26, 2021, the company changed its name from ADT Caps to“SK shieldus.”

1984

1988

1999

2001

2002

- Started
unmannedmachine security
business- Established security teams- Security service for 88
Seoul Olympics (broadcast,security, guard, etc.)- Obtained ISO9001
certification- Established the first dual
control system in Korea(CMS Back-up System)- Opened a nationwide callcenter- Established PDA-based
dispatch system

ESG Strategy

1971

Sustainable Fundamentals- Established Korea
Security Corporation(formerly ADT Caps)

Factsheet
Appendix

2016

2000

2002

2003

2005

- Established
Infosec Korea
Co., Ltd.

- Designated as acompany specializing
in information security
by MSIT- Obtained Information
Security Management
System certificationfrom KISA- First private company in
Korea to join FIRST (Forumof Incident Response andSecurity Team) as a regularmember2015- Selected as a leader in- ADT Caps Recycle Center
contributing to the national
openedeconomy- Won the Minister- Selected as one of the top 100 Commendation for job
Korean brands in 2016
creation (MOEL)

2014

2008

- First introduced
LTE security line in
the industry- Changed company
name to ADT Caps
Co., Ltd.

2005- Launched CCTV
video surveillancesystem2017- Ranked 1st in brand customer
loyalty (unmanned security
service sector)

2017-Signed an agreement forsocial contribution withChildFund Korea- First joined the Global Cyber
Threat Alliance in Asia

2016

2015

2012

2011

- Won the Minister Award for
information security industry
development (MSIP)- Launched SK Infosec
Co., Ltd. after the merger
between Infosec and Bigen- Became the first
security company toachieve KRW 100 billion
in sales- Designated as a specialized- Won the Excellent
security control company (KOME) Prize at the- Designated as a personal
Information Security
information impact assessment
Awardsagency (MOIS)

2006- Obtained ISO27001
certification for the firsttime in the industry

2019

2020

- Selected as the best job creation company in Korea- Obtained ISO45001 certification-W on the National Police Agency Commissioner's Award
4 times (Korea Crime Prevention Awards)- Declared to become a Big Tech-based future security provider

2018

2019

2020

2021

- Won the Corporate Innovation
Grand Prize at the 2018 Security
Awards Korea- Won the Minister Prize at the Korea ICT
Innovation Awards (MSIT)- Obtained AWS Security
Competency certification- Launched SK shieldus with the merger between ADT Caps and
SK Infosec- Ranked 1st in KS-SQI (unmanned security sector)- Released SUMiT, a converged security brand- Won the Korea First Brand Award (7 consecutive years)

2018- Launched ADT Caps, anintegrated company between ADT
Caps and NSOK-Incorporated into SK ICT Family(SK Telecom became the largest
shareholder.)

2010

09
SK shieldus
2022 Sustainability Report

About SK shieldus
CEO Message
Company Profile
ESG Highlights	[ESG Focus] Creating Social Value
through Business	ESG Management Activities inthe Value Chain
ESG Strategy
Sustainable Fundamentals

ESG Highlights

E

Eco-friendly Management System

G

Social Impact Creation

Responsible & Transparent Management

Declaration of
Net Zero 2040

Securing and Nurturing Experts in
Building Social Safety Nets

(2030 Goal: 42% reduction compared to 2020)(White hacker / Cybersecurity / Tech / R&D)

Factsheet
AppendixS

Establishment of ESG Management
Decision-Making System(ESG Committee, ESG Office, ESG Innovation TF, etc.)stRanked 1 in 2021 Korean Standard

Establishment of a Plan forTransition to EVs(100% transition to EVs excluding emergency vehicles by 2030)

Service Quality Index (KS-SQI)

Won the Commissioner General's Award 4 times(Korea Crime Prevention Awards)

Seoul Mayor's Commendation in recognition

Advancement ofCompliance Management
Systemof expanding the culture of sharing

52 %Recycling rate of recovered equipment

Zero

ISO 45001(Occupational Health &Safety Management System)
certified

Expansion of Upcycling

Serious accidents
occurred

Expansion of Eco-friendly
Packaging

Plan for Shared
Growthsharing of research(99% in 2021)

EQST
results

established andexecuted

Publication of the First
Sustainability Report

Enhancement of EthicalManagement(Launch of Ethics Counseling Center)10
SK shieldus
2022 Sustainability Report

ESG Focus

Creating Social Values through Business

SK shieldus has about 110 white hackers, 900 cybersecurity experts, and 600 Tech./R&D experts. Based on this, the Life Care Platform service contributes to creating social value and fulfilling social
responsibilities in our daily lives.

About SK shieldus
CEO Message
Company Profile
ESG Highlights
[ESG Focus] Creating Social Value
through Business	ESG Management Activities inthe Value Chain

Sales in domestic information
protection consulting industry

No.1 for 17 consecutive years

Protection of
corporate and social
information

Korea’s Top 100 brands

ESG Strategy

Selected for 5 consecutive years

Sustainable Fundamentals
Factsheet
Appendix

Conducting cyber-infringement
threat research activities
Embodying smart office andfactory

Industrial experts
White hacker group EQST
About 110 persons
Cybersecurity experts
About 900 persons
Tech./R&D experts
About 600 persons

Cybersecurity

Physicalsecurity

Converged
security

Safety &CarePreventionof crimes

Providing security infrastructure
for crime-prone areas
Protecting mobile informationand providing vaccine app

Korea First Brand Grand Prize

No.1 for 7 consecutive years
2021 Korean Standard Service
Quality Index (KS-SQI)

No.1

Protection of
the vulnerable
classProviding safety solutions for sociallyvulnerable people
Providing care services by collaboratingwith public institutions

Recognition for spreading theculture of sharing
Seoul Mayor's Commendation
Award
Best job creation company
in Korea
Presidential Award
Korea Crime Prevention Award
4-time Winner of Commissioner
General's Award11
SK shieldus
2022 Sustainability Report

About SK shieldus
CEO Message
Company Profile
ESG Highlights	[ESG Focus] Creating Social Value
through Business	
ESG Management Activities inthe Value Chain

ESG Management Activities within the Value Chain
SK shieldus provides sustainable value to stakeholders by integrally managing ESG issues thatarise throughout the value chain. Particularly, our ESG management considers environmental
and social issues throughout the whole process of R&D, procurement, offering of products andservices, and responsibility activities.

In progress

Scheduled for future

ESG Strategy
Sustainable Fundamentals
Factsheet
Appendix01.

Developing technologies for information
security and physical security inenterprises and society

04.

Responsible
Activities

R&D

Activities of product responsibility to
improve customer satisfaction●E stablishing a Customer Experience Management(CEM) System● Developing CAPS Home AI Face Certification
Service Door Guard● Continuing CE innovation activities● Developing unmanned safety zone platform forunmanned shop operation

Procurement●A virtuous cycle system of customer satisfaction
surveys

Provision● Developing a universal AI image inquiry (people,
vehicles, intrusion) platform● Developing an AI Camera equipped with Smart
Intrusion Detection AI Algorithm● Advancing customer experience on digital contact

02.

03.

Shared growth with suppliers

Providing products and services inconsideration of social safety nets

● Applying ESG factors to Supply chain risk
management● Operating shared growth programs● Protecting national infrastructure and creating an environment for
crime prevention● Creating ECO shieldus● Ensuring a safe life for the vulnerable with safety and care services● Introducing and monitoring suppliers’ environmental
performance evaluation system●E nhancing human, facility, and information protection reliability inbusinesses and society● Reducing paper usage through digitalization●M inimizing environmental impact through user efficiency
enhancement service

12

2

ESG Strategy
13

ESG Strategy System & Major Performances15

Eco-friendly Management System

20

Social Impact Creation

39

Responsible & Transparent Management

13
SK shieldus
2022 Sustainability Report

ESG Strategy System and Major Performances

E

About SK shieldus
ESG Strategy

Eco-friendly
management
system	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
Responsible & Transparent Management

Zero Carbon-Footprint
Building an eco-friendly management system Promoting Net Zero 2040
•Practicing environmental management withan organization dedicated to an eco-friendly
environment•Introducing global standard certifications
and disclosing environmental management

Practicing circular economy•Reducing carbon emissions through physical •Expanding the reuse and recycling oftransition (electricity/hydrogen vehicle
recovered products
conversion, replacement of old equipment,•Managing environmental impact frometc.)
packaging•Improving building energy efficiency

Sustainable Fundamentals
Factsheet

S

Appendix

ESG Management
Strategy
Tech-based Life
Care Platform
Company

Social impact
creation

Inclusive Social Impact
Enhancing SV by expanding the social safety net•Spreading the culture of ESG management to suppliers for sustainablesupply chain management

Customer experience management•Health & Safety Policy-based management•Periodic risk assessment and monitoring•Innovating customer value based on customer experiencemanagement system•Managing customer risk systematically and protecting
customer information

G

Responsible &transparent
management

Creating ECO shieldus•Expanding the social safety net through the <Life Care
Platform> service•Creating social value through the nature of the business

Zero safety accidents through industrial safety management

Diversity & inclusion•Pursuing diversity and inclusion•Creating an employment and work environment without discrimination

Responsibility Shield Us
BOD-centered responsible ESG
management

Reliable management through risk
control•Enhancing the independence, diversity,and professionalism of the BOD•Risk and opportunity management
through the ESG Committee•Internalizing compliance for all employees•Strengthening employees’ ethicalawareness through ethical management
activities

Transparent management•Strengthening ESG disclosure•Reinforcing stakeholder
communication

14
SK shieldus
2022 Sustainability Report

ESG Strategy System and Major Performances
Direction

Major tasks

Key activities and initiatives

Establishing
Runs the ESG Committee under the board of directors. Established a system for environmental management by appointing a department andan eco-friendly
personnel in charge of ESG. Reviewing and promoting the introduction of international standards related to environmental management such친환경 경영체계
management system as environmental management system (ISO 14001) and energy management system (ISO 50001) as future tasks.
Eco-

About SK shieldus
ESG Strategy

friendlymanagement
system	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
Responsible & Transparent Management

Net Zero 2040

Planning to reduce direct greenhouse gas (GHG) emissions through replacing internal combustion engine vehicles into electric vehicles andreduce indirect GHG emissions through campaigns to improve lifestyle. Preparing a voluntary reduction scenario also.
By maximizing/efficiently collecting and recycling materials and equipment generated from security services and improving technology toPracticing a circularextend the product's life, we prevent waste generation by actively recovering, repairing, and reconstructing resources. In the future, we plan to
economyimplement a circular environmental system by promoting the use of eco-friendly packaging materials.

Sustainable Fundamentals
Factsheet
Appendix

SK shieldus’Commitment

Socialimpactcreation

Responsible andtransparent management

Enhancing SV bycreating social
impactIt's in the very nature of SK shieldus to pursue ESG, and our services provide the value of safety, security, and convenience to our society. SK
shieldus plans to continue to build social safety nets through services for the socially vulnerable such as smart home security and NUGU OPAL,
as well as through services for 'K-Cyber Quarantine' by training information security experts.

Customer Experience
Management

Established a channel where consumers can freely express their opinions and establishes guidelines with dedicated departments for smoothfollow-up. SK shieldus plans to upgrade its consumer satisfaction improvement program and monitor the implementation of follow-up measures.

Creating ECO
shieldusAims to create a healthy security industry ecosystem by providing customized education consulting, ESG information sharing, workshops,
and performance sharing meetings. SK shieldus will also introduce an environmental performance evaluation system for BP companies tostrengthen the management of ESG in the supply chain and monitor the issues to prevent them from recurring.

Zero safety accidents

Established a Health & Safety policy and conducts a yearly risk assessment to regularly check risks. Intend to create a healthy company by implementing
the obligations to take measures under the Occupational Safety and Health Act and establishing a system for severe accidents in the future.

Diversity &Inclusion

Created a workplace free of discrimination and bullying, complying with labor laws and regulations. Planning to expand the recruitment ofpeople with disabilities and women, and strengthen procedures to guarantee human rights.

BOD-centered ESG
management

The relevant regulations are enacted to form a board of directors centered on outside directors to enhance the reliability of corporate
management. Committees within the board of directors are established to strengthen their expertise, and ESG committees are newly established.

Reliable management Established a policy for compliance and ethics, and an advanced compliance system. Providing anti-corruption training regularly. Planning to
specify ethical management education contents and strengthen compliance with ethics regulations.
with risk control
Transparent
management

Disclosed corporate information, activities, and goals by ESG area on our website in detail and publish sustainability report. Planning to makeefforts to gather opinions by making communication channels for each stakeholder more concrete.

15
SK shieldus
2022 Sustainability Report

Eco-Friendly Management System
Management Approach

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System		 - Management Approach		 - Eco-friendly Business Portfolio
Management
		 - Advancement of Environmental
Management
		 - Response to Climate Change
		 - The Practice of Circular Economy
Social Impact Creation
Responsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

Recognizing the seriousness of the global climate crisis, 195 countries unanimously adopted the Special
Report on Global Warming of 1.5℃ at the 2018 Intergovernmental Panel on Climate Change (IPCC), making
carbon neutrality an irresistible wave of change worldwide. In 2021, Korea also enacted the Framework
Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis, strengthening measures
to reduce greenhouse gas (GHG) and adapt to the climate crisis, making it mandatory and legislated.
Accordingly, investors and customers ask for a transition to a low-carbon economy as a prerequisite forbuilding a sustainable society.
SK shieldus has been monitoring GHG emissions since 2020 and declared Net Zero 2040 in April 2022
to keep pace with the global response to climate change. We set a medium-term emissions target of
reducing GHG emissions by 42% compared to 2020. We also planned to change 65% of our operating
vehicles to electric vehicles and established external GHG reduction.
SK shieldus will continue to efficiently use resources and energy throughout the management activities
to minimize GHG emissions and environmental pollution and fulfill its environmental responsibilities.
We will also establish and operate a company-wide environmental management system for responsible
environmental management. Furthermore, we will contribute to the sustainable development of theinternational community by protecting the ecosystem and climate system for harmonious economic andenvironmental development.

Major Performances in 2021
Declaration of Net Zero 2040
(2030 Goal: 42% reduction compared to 2020)

Establishment of a Plan forTransition to EVs(100% transition to EVs excluding emergency vehicles by 2030)

52% recycling rate of recovered equipment

Expansion of Upcycling

Expansion of Eco-friendly Packaging(99% in 2021)

16
SK shieldus
2022 Sustainability Report

Eco-Friendly Business Portfolio Management
Minimizing Environmental Impact by Providing Services to Improve User Efficiency

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System		 - Management Approach		 - Eco-friendly Business Portfolio
Management
		 - Advancement of Environmental
Management
		 - Response to Climate Change
		 - The Practice of Circular Economy

SK shieldus is developing and providing various IT solutions for indirect reduction through improving user efficiency and internal reduction efforts to respond to climate change. T-Map Parking app contributes toreducing carbon emissions by allowing quick vehicle exits with its automatic payment feature, and by issuing electronic receipts. When setting a parking destination, it also helps reduce GHG emissions and reduce
fuel costs by linking with T-Map navigation, providing an optimal route, and thereby shortening the mile. SUMiTS FM offers optimal efficiency through machine learning-based pattern analysis and prediction, which
can save energy through usage analysis and energy efficiency evaluation. In addition, CAPS Smart Mobility Service enables efficient vehicle management and energy savings by managing vehicle driving records(rapid acceleration/braking, idling, fuel consumption, etc.) through collaboration with partners.

T-map Parking

SUMiTS FMCAPS Smart Mobility-Q uick entry & exit system without ticketing-S upport for stable unmanned operation service-2
 4-hour convenient and safe parking-P rofessional regular inspection and maintenance- Extending the life of office buildings through systematic building
and facility management- Reducing facility management costs with platform-based digitaltransformation- Improving the quality of life by increasing the comfort in thebuilding and minimizing facility disturbances- Providing 24-hour car-sharing service that allows sharing vehicles
through a smartphone anytime and anywhere-
Providing nationwide technical support infrastructure throughpartnership with automobile companies

Social Impact Creation
Responsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

17
SK shieldus
2022 Sustainability Report

Advancement of Environmental Management
Establishing Environmental Management System

Environmental Performance Management

ESG Strategy

Environmental Management Policy and Plan

Scope 1 GHG Emissions

	ESG Strategy System & Major
Performances
Eco-friendly Management System		 - Management Approach		 - Eco-friendly Business Portfolio
Management
		 - Advancement of Environmental
Management
		 - Response to Climate Change
		 - The Practice of Circular Economy

With responsibility for environmental protection, SK shieldus has established the following four
environmental policies based on basic principles of energy saving, efficient use, and minimizing
environmental pollution.

Since 2020, SK shieldus has calculated GHG emissions from business vehicles, head office, andbranch offices nationwide and reported the result every quarter. Scope 1 emissions, which are mainly
generated from business vehicles, amounted 11,647 tCO2eq in 2021, a decrease of 3.0% (366 tCO2eq)
from the previous year. We have been electrifying business vehicles to reduce Scope 1 GHG emissions
since 2021. We already replaced 20 patrols and AS vehicles and 15 motorcycles with EVs.

About SK shieldus

Social Impact Creation
Responsible & Transparent Management

01

Promoting
Net zero 2040

In recognition of the serious environmental problems caused by climate change,
SK shieldus has set a goal of achieving Net Zero in 2040 with active participationin government policies related to climate change to minimize environmental impact
and establishes a mid-to-long-term plan accordingly.

Sustainable Fundamentals
Factsheet

02

Appendix
Practicing circular
economy03

Practicing environmental activities indaily life

04

Engaging inenvironmental
management

We strengthen our material recycling capabilities by efficiently managing andrepairing recovery equipment generated in the business area. We endeavor to saveresources by utilizing eco-friendly packaging materials and inspecting excessive
packaging.

We continue developing/holding campaigns to establish a culture for environmental
protection within the workplace. We plan to monitor the usage of water, electricity,oil, and office supplies (paper cups, paper, etc.) to review/improve environmental
activities in the future.

We intend to establish environmental policies, goals, and procedures followinginternational standards to obtain ISO14001 certification by 2023.

•Preparing regulations and guidelines for environmental management•Building environmental management organizations and an evaluation system•Regular environmental inspection/audit(Unit: tCO2eq)
Scope 1 source

2021

2020

ChangeStationary combustion

162

145

17

Mobile combustion

11,485

11,868

-383

Total

11,647

12,013-366

Scope 2 GHG Emissions
Scope 2 is generated from power consumption at the head office and branch offices nationwide and forcharging electric vehicles necessary for business and dispatch. Scope 2 emissions in 2021 increased
5.5% (194 tCO2eq) from 3,697 tCO2eq in the previous year. We do not use steam to heat offices andbranches across the country.
(Unit: tCO2eq)
Scope 2 sources

2021

2020

ChangeElectricity

3,697

3,503

194

18
SK shieldus
2022 Sustainability Report

Response to Climate Change
Establishing Climate Change Goals

Climate Change Response Activities

ESG Strategy

Climate Change Goals and Directions

Plan to Replace Current Vehicles with Electric and Hydrogen Vehicles

	ESG Strategy System & Major
Performances
Eco-friendly Management System		 - Management Approach		 - Eco-friendly Business Portfolio
Management
		 - Advancement of Environmental
Management
		 - Response to Climate Change
		 - The Practice of Circular Economy

As the “Intergovernmental Panel on Climate Change (IPCC)” unanimously adopted the “Special Reporton Global Warming of 1.5℃” in 2018, lots of declarations on carbon neutrality are making around theworld. SK shieldus announced its intention to achieve Net Zero in 2040 to keep pace with the global
response to climate change. We set goals and strategies for reducing mid-to-long-term GHG emissions
accordingly. To reduce GHG emissions, we have established a plan to replace 65% of internal combustion
engine vehicles with electric vehicles by 2030. Through reviewing GHG reduction projects, we plan toreduce 42% of GHG emissions compared to 2020 by 2030.

SK shieldus is working on replacing its current vehicles with electric vehicles (EVs) and hydrogen fuelcell electric vehicles (FCEVs) to reduce CO2 in after-sales service (AS) vehicles, patrol vehicles, andmotorcycles. In 2021, we replaced 20 AS and patrol vehicles and 15 motorcycles to EVs as a response
to climate change. In 2022, we have established the 2030 Zero-Emissions Vehicles Replacement
Plan through the ESG Committee and the Board of Directors. In the plan, we have set the goal andaccordingly made a yearly plan to replace all our vehicles with EVs except for emergency vehicles. For
emergency vehicles that need to be dispatched, we have decided to revise the zero-emissions vehicle
replacement plan by monitoring the future supply of FCEVs and infrastructure expansion considering
the long charging time of EVs.

About SK shieldus

Social Impact Creation
Responsible & Transparent Management

Mid-term

Sustainable Fundamentals

Long-term

Improving Energy Efficiency in Buildings

Factsheet
Appendix

2020

2030

2040

Baseline

8,999 tCO2eq/year

0 tCO2eq/year

15,516 tCO2eq/year

Net Zero 2040 / Plan for reducing GHG① BAU(Business-as-usual) calculated for scope 1 and scope 2 by 2040
② Established reduction measures for scope 1 and scope 2 to achieve the goal of GHG neutrality in 2040
③ Established a mid-to-long-term plan that includes the reduction of GHG emissions, application period, andcosts based on the finalized plan
※ Scope 1 = Direct GHG emissions from sources (ex. vehicles) owned and managed by the enterprise
Scope 2 = Indirect GHG emissions from energy use, such as electricity
BAU = Total amount of GHG expected to be emitted if greenhouse gas reduction measures are not taken
Reviewing to join RE100 or K-RE100
Reviewing to join RE100, led by the global CDP committee, which is a campaign to commit to a transition of total
power use to 100% renewable energy by 2050, or join K-RE100, a Korean version of RE100.

SK shieldus intends to increase energy efficiency by reducing energy use to prevent expected warming
due to current climate change. To this end, we aim to optimize machine maintenance, install LED lights,
apply government policies, and so on. Specifically, we carry out an electricity-saving campaign such as
installing LED lighting when building new offices and turning off computers at work or the lights during
lunch time (12:00–13:00).

19
SK shieldus
2022 Sustainability Report

The Practice of Circular Economy
Direction of Virtuous Cycle of Resources

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System		 - Management Approach		 - Eco-friendly Business Portfolio
Management
		 - Advancement of Environmental
Management
		 - Response to Climate Change
		 - The Practice of Circular Economy
Social Impact Creation
Responsible & Transparent Management
Sustainable Fundamentals

We seek to enhance resource efficiency by maximizing the recycling materials and equipment
generated in the process of providing security services and extending product life through technologicalimprovements. To this end, we are strengthening the separate discharge of household waste generated
within our business sites. In particular, we are running an internal campaign to reduce the use of
unnecessary disposable items such as paper and plastic. From 2022, we plan to monitor household
waste emissions to strengthen our execution capabilities.

Strengthening Household Waste Management
Our company endeavors to minimize the use of paper by improving the electronic approval system.
In addition, we conduct 3R (Reduce, Reuse, Recycle) campaign that encourages the use of personal
tumblers, paper (A4, A3) reuse, separate discharge, and plogging. In addition, by changing the paperbox for collecting materials such as the cancellation of a contract to a timber box from 2021, we endeavor
to reduce the waste due to the discharge of paper boxes.

Waste management strategy
Expanding recycling of recovered equipment

Household waste management- Recovery of equipment/materials installed on thecustomer’s place at the end of the security service- Plan to resell reconstructed products at home andabroad from 2022

- Reinforcement of separate discharge of household
waste generated within the business sites- Improvement of employees' awareness andsystem of separate discharge

Factsheet
Appendix

Activities for Virtuous Cycle of Resources
Encouraging the Use of Eco-friendly Packaging Materials
Expanding Recycling of Recovered Equipment

SK shieldus has changed the product packaging material into eco-friendly materials since 2018. In 2021,

At SK shieldus, equipment recovered from customers at the end of security service is repaired andreused. Some products that cannot be reused are disposed of through a waste disposal company.
In 2021, 52% of recovered physical security equipment was converted to reconstruction products.
From 2022, we plan to promote the following three: the overseas sales of the recovered products, thediversification of the circularity by returning to recycled materials, and the expansion of upcycling.

we have reduced waste emissions by replacing packaging materials for IP cameras from PE foam to air
cells, and changing NVR packaging from whole coverage to only covering the corners, both of which
ultimately helped us reduce the volume of packaging materials used. As of 2021, we replaced 99% of
the packaging material with eco-friendly packaging materials. We plan to make efforts to expand ecofriendly packaging materials by replacing the box tape from vinyl with paper and styrofoam that is used
as an interior material for air cells.

20
SK shieldus
2022 Sustainability ReportSocial Impact Creation
Management Approach

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

A company's sincere activities benefit society economically, environmentally, and socially. It also serves
as a foundation for enhancing the happiness of stakeholders and the company's continued competitive
advantage. SK shieldus puts customer value as the top priority and practices customer-centered
management. We conduct a satisfaction survey at each stage of the customer journey, diagnose thecause, and perform improvement activities to reduce customer inconvenience and provide better service.
In addition, we maintain an ability-oriented principle to make our employees pleased. Based on a fair HR
system, all employees are practicing sharing and communication which leads to change and activation of
the work environment. We have made protecting the lives and safety of our customers, citizens, workers,
and employees a top priority and a basic principle of action in business activities; thus established a safety
and health management policy based on this. Furthermore, we secured the driving force of safety andhealth management by constructing a safety and health management system and a unified direction at
the company level.
Using technology to promote sustainability and safety in daily life, SK shieldus continues to promote the valueof the public interest in our society by creating social impact. We will continue to work hard to create a happysociety for all our employees, business partners, and stakeholders and find a way to grow with the community.

Major Performances in 2021
Securing and Nurturing
Experts in Building
Social Safety Nets
(White hacker/Cybersecurity/Tech/R&D)

Zero serious accidents
occurred

Ranked 1st in 2021
Korean Standard
Service Quality Index(KS-SQI)

Won the Commissioner
General's Award 4 times(Korea Crime Prevention
Awards)(In recognition of expanding
the culture of sharing)

ISO45001

EQST
Sharing ofresearch results

Plan for Shared Growthestablished andexecuted(Occupational Health & Safety
Management System)

certifiedSeoul Mayor's
Commendation

21
SK shieldus
2022 Sustainability Report

Enhancing Social Value
Social Contribution through Products and Services

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
AppendixCreating a Safe Environment from Crime
SK shieldus creates a safe environment from crime by serving in physical and cyber security businesses.
In close collaboration with the police and local communities, we not only contribute to local security but
also provide safety infrastructure to crime-prone areas and prevent women and children in their daily life
from potential crime. Recently there have been threatening crimes and social problems through mobile
phones, such as malicious apps, remote control apps, and SMS phishing. SK shieldus provides a freevaccine app ("Mobile Guard") that can detect malicious apps, SMS phishing, and remote-control apps
for all people to solve these problems. SK shieldus thrives on creating a society safe from diverse crimes,
which have been constantly changing and becoming more intelligent. In recognition of such efforts, SK
shieldus have won the Police Commissions Award at the “Korea Crime Prevention Awards” four times.

Launched “KARA,” a Private-led Ransomware Response Council
SK shieldus established and operated KARA (Korea Anti-Ransomware Alliance), a private ransomware
response council of 7 firms, including major Korean and foreign information protection companies andlaw firms, for information sharing, professional and comprehensive response to ransomware. Basedon the ransomware information owned by participating companies, KARA shares information by
publishing regular reports, analyzing ransomware issues, and assessing accident cases. It also plans toestablish a regular information sharing system with related organizations and promote exchanges with
global firms as well as participation in related councils. In addition, SK shieldus opened and is operating‘SK shieldus Ransomware Response Center (1600-7028)’ to receive incident reports 24 hours a day.

Improving the Reliability of Information Protection in Businesses and Society
SK shieldus, Korea's No. 1 cybersecurity provider, contributes to enhancing the reliability of information
protection for businesses and society by providing cloud and mobile security-focused services.
Particularly, we run the White Hacker Group (EQST), a group of security experts in cyber threat analysis
and research, taking the role of addressing cyber breaches, diagnosing vulnerabilities, and studying
hacking techniques. This allows us to work on strengthening the information security level of public
institutions and companies by providing information security services based on cyber-infringement
threat research activities. Moreover, to spread social value, we regularly publish reports containing thelatest hacking trends to disclose quality information to the public and corporate security personnel.

Physical Security

Cybersecurity

Converged Security

Safety & Care

Ensuring a Safe Life for the Vulnerable through Safety and Care Service
SK shieldus not only improves customers' lives through safety and care (S&C) projects but also
develops new solutions for the socially vulnerable, ensuring their safe lives through partnerships withlocal governments. As part of the new solutions for the socially vulnerable, SK shieldus has launcheda smartphone-based care service for the elderly, a safe solution for nursing hospitals, and a service forcreating an IoT-based safe village. In addition, we provide 911-linked care services in cooperation withlocal governments.

22
SK shieldus
2022 Sustainability Report

Enhancing Social Value
Spreading Community Impact

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

Strategy and Direction of Social Contribution
In terms of social contribution, SK shieldus actively supports social contribution activities as well as the participation of employees in connection with our local communities. Notably, we perform social contribution
activities related to the nature of its business as a security company and run a program for children who we can directly help in creating a sustainable future.

Major Social Contribution ProgramsChild-centered Social Contribution Activities

Social Contribution Activities Linked to the Nature of Business

Happy Donation, which began in 2017, is a donation program that
directly designates and supports about 10 children in need every
year under an agreement with ChildFund Korea (called the Green
Umbrella Children's Foundation) and is used in diverse fields
such as medical and education. We encourage our employees toparticipate in the program by disclosing the details of donations
every month. There are two types of donations by employees:'flat-rate donations' where they donate a certain amount, and‘small donations’ where they can set a cap on their salary and theamount below the cap is automatically donated. SK shieldus thenapply a matching grant method of donating the same amount as
the final collected amount of employee donation. It is to create a

The SK shieldus security team provides lectures on self-defense
and cardiopulmonary resuscitation to vulnerable groups (children,
women, the disabled, the elderly, etc.) and social service providers(medical staff, government employees, etc.). These lectures
include self-defense techniques, such as safety rules for crime
prevention and self-defense products practice programs basedon the expertise of security enterprises, as well as CPR lecturesconsisting of CPR, automatic defibrillator practice, Heimlich
method, etc., for quick responses in emergencies such as cardiac
arrest and airway obstruction. Particularly, self-defense and CPR
lectures have been continuously conducted by switching to online
classes despite the spread of COVID-19.

sense of belonging where our employees feel proud to participate
in the donation and that the company works with them.
The Elementary School Traffic Safety Campaign was introduced
in 2021. We signed an agreement with elementary schools near
the office building to provide traffic guidance once a week. After
traffic guidance, we take initiatives to keep the environment
clean by picking up garbage near the school, thereby improving
the educational environment for children. Various benefits
are provided to encourage the voluntary participation of ouremployees and to avoid it being out of obligation. In addition to
the flags and vests necessary for the program, we also provide
free cool clothes and hot packs to ensure the employees feel
comfortable doing such activities.

23
SK shieldus
2022 Sustainability Report

ESG Focus

Operating the EQST, a White Hacker GroupSK shieldus has established EQST, a cybersecurity specialist group of 110 white hackers, to contribute to building a secure cyber environment and acquire threat intelligence research capabilities.
EQST (Experts, Qualified Security Team) focuses on research activities related to security threats while executing businesses such as simulated hacking, as well as participating in various activities
based on the accumulated intellectual assets of EQST.
About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

Sharing EQST’s Research Outcomes
EQST Lab is actively researching and publishing significant security issues every year, including 'Open Source Software Security', 'Internet of Things Security', and 'Security Threats and Countermeasures in theContactless Era’. EQST possesses expertise based on continuous research and training on New ICT, malware, attack techniques, accident cases, and hacking defense technologies. Such expertise is used to analyze
new security vulnerabilities and technologies domestically and abroad. The research outcomes are disclosed to the public for free on the website.

● Holding Media Day● Distributing EQST’s Research Outcomes● Distributing Security Diagnostic Guides by Field

Held every half-year, Media Day discloses a security trend reportcontaining the threat information obtained from our information
security business and the forecast data for a future threat to the
public. This enables small businesses and other companies withweak security infrastructure to better cope with security threats.

EQST's findings include EQST Insight, a monthly threat
information analysis report, EQST Annual Report, and security
trends for the first half of EQST. We analyze security trends andvulnerabilities and share countermeasures against hacking
accidents through ‘EQST Insight’ published monthly.

EQST frequently distributes security guides in areas with notablesecurity issues. Remarkably, in 2019, we launched a free distribution of three security guidebooks for cloud service users for the
first time in the industry and have been at the forefront of sharing
security knowledge based on our expertise accumulated over theyears in the cloud security business. Recently, online work environments (i.e. remote working) have been established rapidly due
to the COVID-19 pandemic, accelerating the transition from allindustrial areas to the cloud. Meanwhile, the number of hacking
attacks targeting vulnerabilities in the cloud is increasingalong with growing security concerns. Therefore, we
published the “2021 Cloud
Security Guidebook” thatreflects the latest security
trends, focusing on public
cloud representative services, to prepare for security
threats caused by poor cloud
management.

24
SK shieldus
2022 Sustainability Report

ESG Focus

Operating the EQST, a White Hacker Group

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

Providing Cybersecurity Consulting Service

Training of Information Security Experts

With the emergence of various new services given the accelerationof digital transformation, hacking is becoming popular due tothe recent application of automation tools; thereby increasing
cyber threats to individuals and businesses. Accordingly, EQST
has prepared a vulnerability diagnostic platform (EAST VM). Our
platform provides customized services for each industry andcompany to automatically check for vulnerabilities in IT assets
and enable asset diagnosis in a cloud environment. In addition tosimply responding to cyber threats to the web and mobile, EQST
studies threats to new ICT and applies them to customers. It also
has a variety of industry-specific threat scenarios and diagnostic
methodologies. Based on this, we conducted more than 200
simulation hacking consulting services in Korea and abroad
and provided optimized guides for companies to self-checksecurity vulnerabilities and to establish countermeasures, suchas cybersecurity knowledge sharing activities for public interest
purposes and 'IoT Diagnostic Guide'.

Through the Learning Management System, EQST provides education to security experts and has been supporting them to systematicallyacquire the knowledge applicable immediately to the field. It includes practical assignments based on theories and case studies related tosecurity, such as cloud, web, and Android/iOS simulation hacking. In 2021, it trained and hired a total of 124 security experts.

EQST Group Security Expert TrainingYear

Training course

2017

KITRI's Information Security Expert Training Course

60

2018

KITRI's Information Security Expert Training Course

25

2020

4th Industrial Revolution Leader Training Course of the Ministry of Employment and Labor

2021

Learning Management System (LMS) Service
EQST strengthens the capabilities of security experts bysupporting the development of and providing them to major
universities free of charge. So that they can provide educational
programs using VODs linked with the self-developed learning
management system (LMS). This educational system develops
job expertise and expands knowledge and competency in various
fields by providing courses that include theories for mock hacking,practice, and evaluation; even to vulnerable groups who havedifficulty accessing specialized knowledge in the related field.

2022

Completed (persons)2220

2nd session of the Digital-related Core Talent Training Course (cloud converged security, data
security) of the Ministry of Employment and Labor

26

3rd session of the Digital-related Core Talent Training Course (cloud converged security, data
security) of the Ministry of Employment and Labor

13

4th session of the Digital-related Core Talent Training Course (cloud converged security, data
security) of the Ministry of Employment and Labor

19

5th session of the Digital-related Core Talent Training Course (cloud converged security, data
security) of the Ministry of Employment and Labor

22

6th session of the Digital-related Core Talent Training Course (cloud converged security, data
security) of the Ministry of Employment and Labor

23

Total

335

26

18

22

20

19

25
SK shieldus
2022 Sustainability Report

ESG Focus

Digital Inclusion – Contributing to Digital-Based Safety and Care

According to the Seoul Metropolitan Police Agency, home-breaking cases have increased 1.8 times over the past five years since 2016. Due to the reduced business network, for instance, social
distancing measures in response to the COVID-19 pandemic, the number of contacts with the elderly living alone and the disabled decreased. Depression and loneliness of such underprivileged
population emerged as a severe social problem, increasing the need to create a safe residential environment.
About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

IoT-based Care Services for the Elderly Living
Alone and the Disabled
In May 2021, SK shieldus participated in the ‘Emergency Safety andSecurity Service’ project hosted by the Ministry of Health and Welfare.
The core of this project is to provide services using IoT devices so thatthe elderly living alone and the disabled, exposed to many dangers
such as lonely death and fire, can quickly respond to emergencies.
Through this, we plan to detect fire and access, check the activities
such as heart rate, respiration, and sleep, and automatically monitor
for abnormalities to ensure a quick response with the 911 automatic
report function. We also support an emergency call button, so theperson affected can immediately call 911 in emergencies. Currently,
we are building services with the goal of installing an emergency
safety system for about 100,000 households by 2022, through which
we want to contribute to the rescue of the elderly and the disabledliving alone in emergency situations.

AI Service to Prevent Lonely DeathIn March 2021, SK shieldus launched the ‘NUGU OPAL’ safety service,
which is a fusion of ‘NUGU OPAL,’ a senior-specific AI service provided
by SK Telecom's NUGU device, and ‘24-hour care,’ which can always
monitor customers’ emergency situations, to prevent the lonely deathsof the elderly living alone. The AI speaker 'NUGU' provided to theelderly living alone not only has an emergency SOS call function but
also has various emotional care servicess. The services include healthto help their physical and psychological health, Fun & Joy for themto enjoy their time themselves, emotional conversations, religion, andmusic. This comprehensive Senior Care solution can prevent lonely
deaths, improve health, and provide emotional stability.

“Safe Village Sheriff” Project to Build a Social Safety Net

Female and Single-Person Household Support Service

In April 2022, we were selected as the main operator of the ‘Safe
Village Sheriff’ project with security expertise based on our cyberand physical security infrastructure and converged security
capabilities. This is to create a safe residential environment for singleperson households and build a social safety net. The ‘Safe Village
Sheriffs’ patrol 15 village districts designated by Seoul Metropolitan
Government every night (21:00 - 02:30), for major vulnerable areas
selected through a crime risk analysis. Simultaneously, they also
inspect for risk factors such as fire and conduct crime preventive
activities in residential areas and alleys. Also, through the ICT-based
operation management web and patrol management app built, we
can record and identify all statuses such as real-time patrol andstatus reports. The manager can also monitors and manages theactivity status of all 15 autonomous districts at once. In addition, theapp can also share images and photos in real-time with relevant
departments, enabling fast share of information within departments
in an accident or a crime scene discovery.

With the rising number of single-person female households
every year, the number of trespassing crimes against them is also
increasing steadily. However, many households are not able toafford security devices in their residences due to the cost burden. In
response, SK shieldus signed an MOU with the Seoul Metropolitan
Government in 2013 to provide home crime prevention services tofemale households. There are 3,000 targets including one female
household, single-parent families among legal single-parent
families, crime victims, and households composed of women only.
By paying part of the monthly fee, the target households are provided
the installation of home crime prevention devices as well as thelatest security crime prevention service to help women live a safe
life 24 hours a day. From September 2021, SK shieldus expanded its
business target from ‘single-person female households’ to ‘singleperson households’ regardless of gender. We also supported theinstallation of ‘CAPS Home’ by participating in the ‘single-personhousehold safety door guard project’ with the Seoul Metropolitan
Government. CAPS Home secures the safety of single-personhousehold by detecting roamers outside the front door, checking
videos in real-time, allowing two-way conversation, sending
emergency dispatches, and checking information on incidents andaccidents around the residence. A survey showed the satisfactionlevel of the respondents was 91.5%. By continuing its business for
citizens living in 8 districts across Seoul in 2022, SK shieldus thrives
to relieve the anxiety of single-person households, create a safe
living environment, and contribute to the establishment of a social
safety net.

26
SK shieldus
2022 Sustainability Report

The Practice of Customer-Centered Management
Customer experience management

About SK shieldus
ESG Strategy

CEM (Customer Experience Management) Framework

4 Core Values and CE Innovation Tasks

	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

The source of business and its growth lies in the continued creation of customer value. SK shieldus practices
customer-centered management to gain the trust of customers and advance into a sustainable society. We
have established the “CEM Framework,” which consists of the CE (Customer Experience) execution processthat leads to task selection, execution, inspection, and improvement, as well as the execution enhancing theprocess of listening to customer opinions, motivation, understanding from employees, and communication to
support it. Through this framework, we create a virtuous cycle of sustainable customer experience innovationthat enables organizations to voluntarily derive and implement ideas and actionable tasks.

In 2021, SK shieldus set the keywords 'Convenience, Trust, Innovation, Empathy' as the '4 core valuesof customer experience' and selected and promoted about 40 CE innovation tasks by diagnosing thecustomer voice and pain point in the entire customer journey. CE innovation tasks derived from eachorganization throughout the company share the progress and rate according to the ‘CE Innovation Task
Progress Management System’, managing the progress by a traffic light system. For tasks classified inyellow or red due to slow progress or problems, 'CE Innovation Problem Solving Task Force' is convened
to remove obstacles during the task progress and promote collaboration to carry them out quickly.

CEM FrameworkCEexecution
process

Appendix

Task
Selection

Task
Execution

Sustainable Fundamentals
Factsheet

Traffic Light Control System on CE Innovation Task Progress

Executionenhancement
systemListening &Reflecting VOCs

Convenience

Check &
Supplement

Motivating
Relevant Dept.

Positive experience Up (+)
Negative experience Down (-)

Sharing &Comm.
with Employees

Trust

Customervalue

SympathyInnovation

Traffic light

Definition

Progress rate●

Going Well

5% or more●

Need Speed

5% or less●

Not Gone0%↗

Gone to Next Step

Go to next stage

Fin

Finished

Completion

4 Core Values and Major Tasks in 2021

CE Innovation Council Operation
SK shieldus has a culture of customer experience innovation called Bar-raise* for customer-oriented
management. For all organizations to focus on bar-raise customer experience innovation, SK shieldus
operates the ‘Bar-raise Promotion Council’, a customer experience innovation meeting directly led by the
CEO and attended by key executives of the company. Through the Bar-Raise Promotion Council, we share
the trend of customer experience indicators, customer survey results, and VOC, and promote quick decisionmaking by discussing the agenda for innovative solutions to the root causes of customer experience issues.
* Bar-raise: Self-innovation of us constantly raising our own bar concerning the level of customer experience provided

Convenience

Renewal and upgrade of user manual, improvement of mobile CCTV video app speed
and stability

Innovation

Launch of AI-based innovative products (AI CCTV, etc.)

Trustsympathy

Transparent and clear billing process
Strengthening empathic communication with customers

27
SK shieldus
2022 Sustainability Report

The Practice of Customer-centered Management
Customer Experience Value Monitoring System

About SK shieldus
ESG Strategy

CE Index	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

SK shieldus has set the CE Index (Customer Experience Index) that affects the customer experience at eachstage of the customer journey of the service to continuously monitor the improvement progress. To thisend, we selected the customer’s direct satisfaction evaluation score or indicators representing the level ofcustomer service in each ‘customer journey stage’ divided into the contract, installation, opening, dispatch,
after-sales service, etc. We continuously monitor the trends for at least 12 to 18 months and manage theindicators to increase positive customer experience indicators while decreasing negative experience
indicators. In addition, we aim to remove the root cause of the problem by addressing the indicators that
improve slowly. For each indicator, we set a target level (Bar) and empirically monitor whether related CE
innovation tasks are improving the value of customer experience. Currently, in 2022, about 39 indicators
are set, 19 of which are reflected in KPIs for each organization and managed as a priority.

Sustainable Fundamentals
Factsheet
Appendix

VOC of inconvenience received to the customer center are collected asimportant data for customer experience innovation. We also make efforts
to maximize customer satisfaction by diagnosing the root cause andderiving the tasks to improve and solve the problem. In recognition of theefforts to improve customer experience, SK shieldus ranked first for two
years in a row (2021, 2022) in the unmanned security service sector of the
Korean Standard Service Quality Index (KS-SQI) hosted by the KoreanStandards Association.

Service Satisfaction Survey + Recurrence Prevention System

Customer-Oriented Contact Service Satisfaction Survey
SK shieldus regards the voice of the customer (VOC) and customer evaluation of our services as ourmost important assets. We have a ‘service satisfaction survey system’ for each service level to enhancecustomer satisfaction, based on the objective evaluation of customer expectations for products andservices, satisfaction compared to expectations, actual satisfaction, and recommendation intent.
The Service Satisfaction Survey System requests a satisfaction survey through text message assoon as an in-person or virtual service is completed. For customers with a 'dissatisfied customer' or'dissatisfied answer' among customer responses, employees on the field will promptly visit them after
a happy call through the customer center to solve the inconvenience, and we strive to prevent thesame or similar types of dissatisfaction from occurring. The VOC collected through this survey and theOffering of service

Satisfaction survey

Improvement of service level

Dissatisfied response

Recurrence prevention
activities

28
SK shieldus
2022 Sustainability Report

The Practice of Customer-centered Management
Customer Information Protection

About SK shieldus
ESG Strategy

Information Protection Organization and Management System

	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

SK shieldus intends to play a leading role as a security specialist within the group by creating a security
culture such as establishing security governance and elaborating security processes. SK shieldus has
obtained personal information protection/information security certification in Korea and abroad toverify suitability for periodic and regular information protection activities and enhanced the active andvoluntary security mindset of the employees through information protection campaigns and simulation
training. Furthermore, we have established and operated an information protection management
system that complies with relevant laws and group security compliance and responds to the European
General Personal Information Protection Act (EU GDPR) and China's Personal Information Protection
Act to effectively respond to the rapidly changing information protection environment in the era of the
Fourth Industrial Revolution and to protect information assets such as customer information, products,
and services from various security threats.

Sustainable Fundamentals
Factsheet
Appendix

Information Protection Organization
A Chief Information Security Officer (CISO) and a Chief Privacy Officer (CPO) are appointed to improve
the level of information protection in our organization, respond to internal and external security issues,and continue engaging in security activities. Additionally, we organized an information protection
organization under ESG, an information protection planning team, and a personal information protection
team in the information protection group to protect the organization and customer information. We
focus on strengthening work efficiency by operating an information protection consultative group andestablishing an in-house expert collaboration system.

Information Protection Organization
Organization dedicated to information
protection
ESG Office

Security Control Tower
We comply with regulations and group standards by establishing management systems such as
information protection policies, privacy policies, guidelines, and processes. We also conduct the groupbased security self-assessment, measure the level of security each year, and identify areas that need tobe supplemented and improved to strengthen our security system within the organization.

Information
Protection Group
CISO/CPO

Information Protection
Planning Team

Privacy Team

Securing Security Level Meeting Domestic and International Standards
We have obtained International Standard Information Protection Certification (ISO27001) and Korean
Personal Information and Information Protection Certification (ISMS-P). We perform information protection
activities to collect certification every year and conduct security reviews, monitoring, and technicalvulnerability diagnosis to meet security requirements in the administrative, technical, and physical areas.

In-house Expert Group
Security control
Analysis of violation accidents

Investment to Strengthen Internal Security Control and Response to External Infringement Incidents
We prevent security accidents and detect abnormal behaviors by applying ideal security solutions
to prevent internal leakage of important information and respond to external infringement incidents.
We actively respond to security incidents that are becoming more intelligent and sophisticated with
continuous security investments demanded by the organization.

Security diagnosis

Information Protection Committee
Chief Information Security Officer

CISO

Secretary

Information Protection
ManagerMemberHead of Division and Group

Information Protection Working Group
Information Protection Manager

Privacy Team/ Information Protection
Planning Team
Security Staff

Security staff of each department

29
SK shieldus
2022 Sustainability Report

The Practice of Customer-centered Management
Preventive Information Protection Activities

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

Security Campaign

SK shieldus revises and updates the security regulations that are the basis of information protection
activities every year. SK shieldus focuses on preventing accidents by reviewing security for all assets andsystems and improving potential risks to provide secure services. SK shieldus detects abnormal behavior
through security control monitoring and conducts activities to prevent infringement by checking Web,
App, Intra, and IoT equipment vulnerabilities and reviewing security in advance. SK shieldus periodicallychecks the possibility of personal information leakages, such as access to the personal information
processing system, personal information handler, and security policy exceptions. As a specialized
security company, we collaborate with departments in technical areas to perform security activities suchas security control, infringement response, and simulated hacking. In addition, SK shieldus strives tostrengthen the security awareness of all employees by conducting on-site inspections such as personal
information inspection, trustee inspection, and branch office inspection, simulating quarterly malicious
mail responses and conducts various types of programs, including education, campaign, and simulation
training to enhance the awareness of personal information and information security. Notably, training on
personal information protection is available on various topics, including mandatory legal training as well
as different levels from the basics to the advanced level for employees to choose from.
Information Protection Training
Training course (trainee)Content

Approach

Basic training on
information protection• Understanding of personal information protection• In-house security policy and process• Laws and regulations related to information protection• Security accident cases and responses•O nline lecture• Personal information handler-specific training• Inquiries related to personal information protection• VOC and security accident cases• Cases of violation of personal information protection•O n-site training• Implementation after
security check

All employees

Training on personal
information protection

Personal data handler in
BP/TSE/Sales etc.
Professional course forsecurity

IT/R&D/Security
workforce

Training on workplacesecurity

Partners at home andabroad• IT infra training – IT infra technology• Development security training – Secure Coding, etc.
• Training of information protection experts (40H/year)

Campaign Theme

Approach•D issemination of major
security guidelines•D issemination of security
accidents•P R for security accident
prevention•O peration of security newsletterand bulletin board•C reation of security posters•S ecurity quiz•C heck of life security and reward

Remarks•R egular operation of bulletin
board

•R
 unning campaigns at least oncea monthInformation Protection Outcomes
We obtained International Standard Information Protection Certification (ISO27001) and Domestic
Information Security Management System (ISMS-P), by conducting various information protection
activities that meet administrative, technical, and physical security requirements and maintain
information protection standard certification through follow-up and renewal screening every year.
Furthermore, we carry out self-assessment on the group security standard and have been evaluated to
improve the security level every year. In June 2022, we disclosed the information protection management
system and certification status to secure legal compliance for information protection.

정보보호 및
개인정보보호 관리체계 인증서•O nline lecture•C ommissioned lecture

1. 인

증

번

2. 업

체

3. 대

표

호 : ISMS-P-KISA-2020-026
명 : SK쉴더스(주)자 : 박진효

4. 인 증 의범 위 : 대표 홈페이지, 원격관제 서비스, 고객 IT 서비스
운영

5. 유

기

효

간 : 2020.07.29 ~ 2023.07.28

6. 심 사 수 행 기 관: 한국정보통신진흥협회

「정보통신망 이용촉진 및 정보보호 등에 관한 법률」
제47조 제1항, 같은 법 시행령 제47조,「개인정보 보호법」 제32조의2에 따라 위와 같이 정보보호및 개인정보보호 관리체계를 인증합니다.
2020년 07월 29일

•B efore and during the• Security requirements for each project stage
project• Customers’ security regulations and processes (by PM or•O n-site training
security manager)한국인터넷진흥원장

30
SK shieldus
2022 Sustainability ReportCreation of ECO Shieldus
Supply Chain Policy

About SK shieldus

SK shieldus has established and implemented various programs in each major area for shared growth of corporate value with its partners.

ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

Fair Trade/
EthicalManagement● Early payment of subcontract costs● Integration of procurement systems into OPEN4U● Compliance with the four major fair trade practices● Utilization of standard subcontracts● Operation of an ethical management system

Financial
Support● Expansion of shared growth fund andActiveCommunicationloan interest support● Shared growth council, survey● Shared Growth Day event● MBWA for business partners

Sustainable Fundamentals
Factsheet
Appendix● Reward to outstanding partners● SK ICT Pride Awards

Reward toPartners●S upport for commercial general liability for
installation works● Technology escrow in place● Prior agreement on request for/use oftechnical data

“Pursuing Shared Growth in
Corporate Value between
SK shieldus and Biz. Partners”

Technical
Support/Protection

WelfareBenefits
Support

Educational
Support● Shared Growth Academy● CEO seminar● Educational support for safety management● Support for medical checkups of partners’ CEOs
● Funeral goods support● Implemented● Due to be implemented

31
SK shieldus
2022 Sustainability ReportCreation of ECO Shieldus
Supply Chain Risk Management and Support

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

Applying ESG Factors When Selecting Suppliers
SK shieldus manages the risk of the supply chain by applying ESG management principles at all stagesof supplier selection, evaluation, and management. Furthermore, we are laying a solid foundation forcooperation by selecting and evaluating suppliers that fit our business direction through a fair process.
Particularly, in order to strengthen ESG management in the supply chain, we plan to review the
introduction of an environmental performance evaluation system for suppliers as one of the criteria for
selecting suppliers and continuously monitor whether discovered problems do not occur repeatedly.

Direction and Strategy for Shared Growth
To strengthen business competitiveness and implement ESG management, SK shieldus established atwo-way shared growth model to create an environment for mutual growth and a culture of win-win
development with suppliers. To this end, we are devoted to implementing the four systems of practicalmatters: signing contracts, selecting suppliers, running the Procurement Deliberation Committee, andissuing subcontracting transaction processes in written formats.

Shared Growth Program
SK shieldus plans to make shared growth an essential item for responsible supply chain management
and to form a dedicated organization. We also compile long- and short-term shared growth budgets
through the SCM group, plan a care program for small and medium-sized enterprises (SMEs), andconduct self-cleaning activities to comply with the Fair-Trade Act and the Subcontracting Act.
To manage and execute the program, we laid out core tasks for shared growth and specific activities tomonitor the status, setting fair trade/ethical management, financial (fund) support, and communication
activation as the core tasks. To achieve fair trade/ethical management, we have also introduced
the 'e-procurement systems,' and are running detailed programs with an ethics policy and relevant
guidelines in place.
Classification
Fair trade and ethicalmanagement

Contract
conclusion

Sustainable Fundamentals
Factsheet
AppendixFour
guidelines

Partner
selection•E stablishment of contract signing infrastructure (e-procurement system)•D etermination of an appropriate delivery date after sufficient consultation•P rior consultation with partners in case of short delivery time due to urgency•D etermination and adjustment of subcontract cost based on rational methods such asreflecting inflation•P rohibition of unfair cost reduction•O bjectivity and fairness in partner selection and cancellation criteria•D isclosure of supplier selection and cancellation criteria and result•O ffering of fair trading opportunities to registered partners

Operation of the
Procurement
Deliberation
Committee•O peration of in-house unfair trade monitoring mechanism (consisting of at least 5
members including procurement managers and executives)•R eview of supplier sanctions and objections•P enalty applied in case of violations by employees

Written issuanceand retention• 7 written issuances in the subcontracting process•C lear writing of statement subjects•R etention of 7 documents for mandatory issuance and 7 documents for subcontract
transaction (7 years)•S tipulation of 4 guidelines of the Fair Trade Commission•E stablishment and operation of ethical regulations and practice guidelines•O peration of channels for counseling and reporting on ethics

Fair Trade
Operating an “e-procurement system” and laying a foundation for shared growth by stipulating the four
guidelines of the Fair Trade Commission to establish fair trade culture

Programs• Introduction and operation of “e-procurement system”•T imely payment of subcontract costs

Financial support•E xpansion of loan interest support (using SKT’s Shared Growth Fund)•R eward to outstanding partners (for installation sector)•O peration of the shared growth council

Activation ofcommunication•E vents such as Share Growth Day•M BWA for partners (visit to partners)•P rovision of programs to improve the work competency of partners' employees

Others•W elfare support for business partners•E scrow service to protect core technologies of partners

32
SK shieldus
2022 Sustainability Report

Safety and Health Risk Management
Establishing Safety and Health System

Safety and Health Organization
We expanded the safety and health organization system consisting of the Control Tower and the teams
in charge of implementation to secure safety and health management capability.

About SK shieldus
ESG Strategy

Safety and Health Management System

	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

At SK shieldus, protecting the lives and safety of customers, citizens, workers, and employees is its
top priority and a basic principle of conduct. With the enactment of the Serious Accidents Punishment
Act, serious accidents are recognized as an overall management problem beyond a manager’s fault.
We have established the Safety and Health Management Policy to comply with the Serious Accidents
Punishment Act and to promote all employees' and stakeholders’ safety. To internalize the companywide policy, we built a safety and health management system to set a unified company-wide directionand enhance the driving force for safety and health management. Moreover, the five safety and healthmanagement policies measure organizational performance based on the relevant goals. In 2019, SK
shieldus received the international safety and health management system (ISO45001:2018) certificate
and has maintained it so that its employees and stakeholders can work in a safe, healthy environment.

Sustainable Fundamentals
Factsheet
Appendix현재 발행일자:인증 만기일자:인증서 식별번호:인증

2021년 11월 9일
2022년 11월 2일
10403502

최초 승인일자:ISO 45001 - 2019년 11월 3일

Control Tower
CSO
SHE Office

HQ Director

Regional Director* Safety and Health Manager* Safety and Health Manager

Branch Manager/
Group Leader at HQ* Supervisor

Teams in Charge of Implementation서다음의 경영시스템을 인증합니다:에스케이쉴더스 주식회사(13486) 대한민국 경기도 성남시 분당구 판교로 227번길 23

Occupational Safety and Health Committee
SK shieldus runs an Occupational Safety and Health Committee composed of labor and management
members to deliberate and decide on essential matters concerning the safety and health of theworkplace under Article 24 of the Occupational Safety and Health Act. The Occupational Health and
Safety Committee is held once a quarter and deals with matters necessary to maintain and promote
the safety and health of the employees.

로이드인증원은 위 조직의 경영시스템이 다음의 표준에 적합함을 인증합니다:ISO 45001:2018인증 번호: ISO 45001 – 00022631
동일한 인증서 식별번호가 부여된 첨부의 인증 부속서와 결합되어야 본 인증서는 유효합니다.

이 경영시스템의 적용범위는 다음과 같습니다:무인경비 서비스의 제공.

이일형
대표이사
Issued by: Lloyd's Register Quality Assurance (Korea) Ltd.
for and on behalf of: Lloyd's Register Quality Assurance Limited
Lloyd's Register Group Limited, its affiliates and subsidiaries, including Lloyd's Register Quality Assurance Limited (LRQA), and their respective officers, employees or agentsare, individually and collectively, referred to in this clause as 'Lloyd's Register'. Lloyd's Register assumes no responsibility and shall not be liable to any person for any loss,
damage or expense caused by reliance on the information or advice in this document or howsoever provided, unless that person has signed a contract with the relevant Lloyd's
Register entity for the provision of this information or advice and in that case any responsibility or liability is exclusively on the terms and conditions set out in that contract.
Issued by: Lloyd's Register Quality Assurance (Korea) Ltd., 17th Floor Sinsong Building, 67 Yeouinaru-ro, Yeongdeungpo-gu, Seoul, 07327, Korea for and on behalf of: Lloyd's
Register Quality Assurance Limited, 1 Trinity Park, Bickenhill Lane, Birmingham B37 7ES, United Kingdom
Page 1 of 2

Safety and Health Council
The SHE Portal on the in-house intranet is set to hear the voices of employees concerning safety andhealth. In addition, a safety and health council is organized in each business department to gather
opinions from all business partners. Furthermore, we have mandated safety and health inspections
so that excellent companies with great abilities and skills to take safety and health measures can beselected as suppliers to ensure our safety and health management level.

33
SK shieldus
2022 Sustainability Report

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

Safety and Health Risk Management
Safety and Health Risk Management

Emergency Response System

To manage safety and health risk, SK shieldus conducts risk assessments twice a year for businesses orworkplaces in the first and second half of the year through the guidance of the SHE office, improving andremoving harmful and risk factors through this. For large-scale construction and hazardous process workthat may contain hazardous elements, SK shieldus is reducing safety and health risks through a safety
review before contracting, such as working at height and working in hazardous locations and facilities.
Moreover, in accordance with ISO45001 (Safety and Health Management System) Risk Management
Regulations, we strive to prevent and reduce accidents not only for employees but also for other workers
concerned by identifying, analyzing, and responding to internal and external safety and health issues,
making risk action plans, and effectively verifying them every year.

SK shieldus established an accident response process based on four principles (taking measures on
the victim/site is the priority, prompt situational propagation, operation of a preliminary control room forpreemptive response, and overall operation of the CSO situation room) in preparation for emergency
situations. Before a safety accident occurs, we operate a preliminary situation room for preemptive
response, and after a safety accident occurs, the CSO spearheads the situation room to save victims
on-site and take onsite measures as the highest priority, and promptly disseminate the situation.

CSO(Head of Situation Office)Risk Assessment System
STEP 01

STEP 02

STEP 03

STEP 04

STEP 05

Head of SHE Office

Establish a risk
assessment
plan

Identify risk
factors

Estimaterisks

Establish andimplementrisk reduction
measures(Response Unit)

Define risks

Definerisks

Risk selection
through discussion
after identifying
attendees andconvening ameeting according
to schedule

Identification of
hazardous risks
in the workplacethrough visiting
inspection andsafety and healthchecklist, etc.

Calculation of risk
size by estimating
the likelihood andseverity of risk factors that can lead to
injury or disease

Selection and registration of majorrisks that require
immediate improvement amongrisk factors

Establishment of
the selected majorrisk improvement
plan and determination of execution
schedule

Management of Contract Risk with High-risk Groups
Sales department

Prior review department

DRC Operation TeamDRC Committee

Request for pre-sales
approval

Check on high-risk
groupsAdequacy review

Compliance review

Safety &HealthManager

Head ofeach Biz.
Group

Head of ESG OfficeCommunication Group

Legal Affairs

Corporate
CultureSupporting Organization

ControlGroup34
SK shieldus
2022 Sustainability Report

Safety and Health Risk Management
Safety and Health Programs

About SK shieldus
ESG Strategy

Safety and Health Check	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

SK shieldus conducts an on-site inspection of all workplaces semi-annually to ensure that therequirements of the Occupational Health and Safety Act and ISO45001:2018 are properly implemented
in the field, which enables the site members to be increasingly aware of the on-site safety. In addition,
SK shieldus conducts safety inspections of branch offices, vehicles, facilities, and safety equipment
regularly every month.

Sustainable Fundamentals
Factsheet
Appendix

Emergency Response Training
The company conducts emergency response training semi-annually according to the scenario manuals
for fire, earthquake, and disaster situations, focusing on responsible executives and emergency
response organizations at each business site. We continue making efforts to effectively protect the livesof our employees and the company’s facilities in an emergency through practical training.

Safety and Health Education
SK shieldus develops safety and health education content to raise employees' interest in safety andhealth and strengthen capabilities and offers online education to all employees every year. It involves
viewing past cases of safety and traffic accidents and finding out the problems and causes of the case,to reduce the occurrence of accidents. Furthermore, regarding motorcycle driving, since the risk of
injury in the event of an accident is high, and the risk is higher than that of other means of transportation,
employees take safety training at a motorcycle safety school.

Strengthening On-site Safety Management Activities
In February 2022, we carried out three activities, which include attaching stickers, posters, and banners,
and delivering safety messages to BP (Blue Patrol), TSE (Technical Service Engineer), sales, andinstallation managers to strengthen on-site safety management and raise awareness. We also had
safety communication sessions to hear the voices of all employees and announce the safety progress.

Employee Health Promotion
Various support programs are being provided to strengthen the health of our employees and to actively
respond to COVID-19. We support our employees and their family with annual medical expenses, checkups, and vaccinations. In addition, as part of the employee care program, we provide counseling formental health to help overcome post-traumatic stress disorder. Moreover, we established a COVID-19
response manual, carried out preemptive quarantine measures to actively respond to COVID-19, andgave out quarantine supplies to executives and employees. SK shieldus intends to actively plan various
health-enhancing activities to maintain the healthy lives of our employees.
Activities

Details

Supporting group accident
insurance and medical
expenses, health check-ups,
and vaccinations•Providing general and specialized medical check-ups and promotions for all
employees and their family annually•Providing medical check-ups for security guards before allocation

Member Care Program•A therapeutic system supported by employees deemed difficult to perform theirduties through interviews with the head of the department• Employees who witnessed an accident involving death while performing their duties,
perpetrators, and colleagues around them related to the deadly accident are eligible•P sychological counseling treatment at specialized institutions (within 500,000
won per accident), use of sick leave (within 15 days)•P roviding external specialized counseling institutions (EAP Association) andtreatment, and doctor’s consultation and hospital treatment desired by employees

Active measures for
COVID-19•E
 stablishing a manual that identifies the health trends of employees and how to
respond step by step•P reemptive quarantine measures: regular and frequent quarantine anddisinfection, heat check when entering a building, restriction of passengers inelevator, closure of rest facilities and control rooms•Creating a digital work culture through preemptive telecommuting•S ecuring and distributing quarantine supplies (masks, thermometers, handsanitizers, disinfectants, etc.)•Encouraging employees to work from home

Safety Campaign
Campaigns are underway to prevent and reduce serious injury accidents during the period of frequent
accidents (summer/winter) due to seasonal factors. During the campaign period, we award the bestperforming team out of regional divisions by assessing indicators for accident management and accident
prevention. In this way, we help raise the awareness of traffic safety.

35
SK shieldus
2022 Sustainability Report

Talent Management
Securing Talent

Fostering Industrial Experts

ESG Strategy

SK shieldus Recruitment Principle

Employee Development System

	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

SK shieldus has a principle to provide equal opportunities and fair evaluation based on competence
when hiring talented people. Based on this principle, we pursue fair procedures for ability-centeredrecruitment, such as prohibiting requests for personal information unrelated to job competency andminimizing required documents. We also signed an MOU with several universities and institutions toactively recruit talent based on their ability. Furthermore, we do not discriminate against the educational
background, gender, physical condition, social status, etc. to provide equal opportunities. To make asociety where diversity is respected, we strive to increase the proportion of employees with disabilities
by creating jobs and establishing standard workplaces for those with disabilities.

SK shieldus provides a variety of training for employees to develop their job competencies and careers.
The training system is divided into common competencies, leadership skills, and job competencies soeach employee can diagnose his/her competence and receive training that suits one’s level. We plan tosystemize it further so that employees can arrange and prepare in advance for a future job transfer andcareer development.

About SK shieldus

Sustainable Fundamentals
Factsheet
Appendix

Recruitment of the DisabledClassification

Unit

2021

2020

2019

Number of employees with disabilities

Persons

103

93

70

Rate of employees with disabilities

%

1.6

1.4

1.1

Efforts to Secure Excellent Talent
SK shieldus strives to create jobs for young talented people through various recruitment programs thattarget young people interested in information security. In 2021, we nurtured talents specializing in information
security through industry-university cooperation with major universities including Seoul Women's University.
We also passed on our business know-how through practical experience at EQST to about 50 trainees,
thereby enhancing their practical competency. In the end, we hired 10 trainees from this program. In 2022,
we plan to hire 45 talented people by operating SK shieldus’ six-month program linked with the Korea
Information Technology Research Institute (KITRI) to secure talented control experts.
Classification

Department

Trainee(persons)

Schedule

Seoul Women's University

Information
Security

31

Sep. 16 ~ Dec. 31, 2021

Korea National University of
WelfareInformation
Security

15

Oct. 20 ~ Dec. 31, 2021

KOREA University Sejong
CampusArtificial Cyber
Security

7

Nov. 15 ~ Dec. 31, 2021

Training
courseTraining
hours

Employee Training System and Content
Classification

Main Content

Commoncompetencies• Running a company-specific online learning site.
- Provides 1,100 company-produced content and 7,500 common learning contents that are continuously
updated.
- Provides an environment where employees can learn at any time: they can directly search for necessary
materials to strengthen their job-related capabilities using this system.

Leadershipcompetencies• Leadership training in headquarters and regional headquarters: training for organization, performance, andemployee management.
• Next generation leader training: Composed of pre-training and leadership development of key competencies
to select and nurture competent next team leaders and branch managers.
• Leader Book Learning training: Knowledge content for leadership, management, humanities, and business.
• Competency-enhancement program for PM and intermediate managers: Enhancing leader's performance
management feedback capabilities for customized coaching.
• Coaching program: Enhancing leader's performance management feedback capabilities for customized
coaching.

Job
competencies• CE (Customer Experience) communication training: Developing capabilities for employees of regional
divisions to practice CE communication.
• TSE candidate training: Providing opportunities for developing physical security tech experts and career of
employees.
• Security instructor training: In-house human resource training to secure the qualification of mechanicalsecurity instructor at the physical security site.
• External training support system: Supporting the cost of external training, conferences, forums, etc.,
depending on the team's needs and discretion.
• Certificate Support Scheme: Supporting costs to obtain necessary qualifications for work (e.g. AI-, Cloud-,and ICT-related certificates).

New
employeecompetencies• New employee training course: Regular training to establish identity, develop and select safety, services, andoccupational capacity for new security employees.
• OJT & mentoring system: Instructing new employees abilities required to perform their duties and inducing
adaptation.

Hires
5

Web
MobileTheory: 36H
Practice:
24H

1
4

36
SK shieldus
2022 Sustainability Report

Talent Management
Employee Training Programs

Employee Evaluation and Compensation

Various Job Training Courses
We operate an average of 450 in-person and online courses yearly to strengthen our employees' job
skills. Various types of training based on practical skills are provided, such as simulation hacking, cloud,big data, blockchain, and AI. As of 2021, 2,400 students took the course annually.

Evaluation System
SK shieldus operates an MBO (Management by Objectives)-based evaluation system in which
employees set their work plans and achievement standards. Through this system, employees reflect
on their performance to achieve the organization's vision and strategy. It establishes an "evaluation
policy" considering the characteristics of the organization unit, closely evaluates the performanceof the employees' work, and sets the competency to be achieved by each job/position in common.
Additionally, SK shieldus introduced the subordinate and peer evaluation system (evaluating peers) in
2021 to run a more objective evaluation system from various perspectives. The multi-rater system, whichis evaluated by employees at the senior/junior level, colleagues, including oneself, helps complement
the limitations of one-sided evaluation and strengthen the employee's capabilities.

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

Providing Education Systems Linked with HR System
By establishing an education category within the in-house HR system, Shieldus In, we offer various
educational management functions linked to HR records. It allows employees to freely register forclasses, check education status, and manage qualifications and completion history related to annual
education.
Operating Cloud School System
We utilize the practice-based Cloud School program to train people specialized in the cloud field
and manage our HR pool. We select a small number of elite people with business-specific security
capabilities to provide systematic training programs within and outside of the company. Even after
completing the programs, we continue to manage our employees to enable continued learning invarious aspects, such as obtaining certificates, supporting them to engage in club activities, mentoring,allowing them to work on the cloud pilot project, and granting related tasks.

Compensation System
SK shieldus operates a performance-based compensation system, which is linked incentives andsalaries with the evaluation results of employees.

Commissioned Training for Competence Development
We support our employees to take consignment education and acquire certificates to ensure theylearn outside of the company. As of 2021, about 320 employees conducted self-directed competency
development via the system.

Classification

Details

Annual salary

Implementing performance-based compensation in connection with company management
plan and individual evaluation

AIP

Providing motivation for performance as an incentive reward system according to the company
goal achievement rate

Commission

Offering compensation according to individual sales performance (for sales positions)

Reward (CSR)

Providing annual and occasional rewards based on KPI achievement and organizational
contribution

37
SK shieldus
2022 Sustainability Report

Talent Management
Ensuring Work-Life Balance

Operating Cultural Dating Program
SK shieldus run a cultural dating program to support employees' happy work-life balance. This program
consists of various cultural activities such as experiential activities and watching movie, participatedby many executives and employees. Since the COVID-19 outbreak in 2020, “virtual” classes were
held based on the telecommuting trend, such as leather crafts and traditional alcohol making. As
the COVID-19 social distancing was completely lifted in May 2022, we have begun to hold in-person
events for employees. SK shieldus has been actively conducting in-person participatory cultural dates
including employees, families, and couples through a cinema date in June (over 700 attendees) and asports date in July (over 350 attendees).

About SK shieldus
ESG Strategy

Maternity Protection and Work-Life Balance	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management

SK shieldus actively implements a work-family balance
support system, such as parental leave and shorter working
hours during pregnancy and childcare, to lessen the burdenof childbirth and childcare on employees and let themconcentrate on their work. We also operate a system toencourage the use of vacation by designating a Happy Rest
Day so that employees spend enough time resting with
their families. In addition, various family-friendly programs,
including family invitations and camps, are available andrecognized for their excellency externally. We were selected
as the labor-management culture excellent company in 2010
for the first time and were also selected in 2013 and in 2016
for three consecutive times. we were certified as a familyfriendly company for the first time in 2017 and extended thecertification in 2020.

Sustainable Fundamentals

Number of Employees Who Used Work-Life Balance Program11)

Factsheet
Appendix

Employee Benefits

2021

2020

2019

Total

108

98

87

Male

59

67

60

Female4931271) Employees who took parental leave, maternity leave, working-hour shortage during pregnancy/childcare, family care leave/leave, etc.

We are implementing a medical subsidy system, which reduces medical expenses for executives
and employees and support healthy and stable work life. We subscribe a group accident insurance
to support diseases and unexpected accidents. Through such system, we strive to provide practical
help to employees by expanding the scope of coverage for employees and their family. In addition,
we operate a retirement pension system to allow our employees to prepare for stable retirement life.
We also operate an interim settlement of retirement allowances to support employees in unexpected
situations.

38
SK shieldus
2022 Sustainability Report

Talent Management
Innovating the Way of Working

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
		 - Management Approach		 - Enhancing Social Value
		 - [ESG Focus] Operating the EQST, aWhite Hacker Group		 - [ESG Focus] Digital Inclusion –Contributing to Digital-Based Safety
and Care		 - The Practice of Customer-CenteredManagement
		 - Creation of ECO Shieldus
		 - Safety & Health Risk Management
		 - Talent Management
		 - [ESG Focus] Ensuring Employee
RightsResponsible & Transparent Management
Sustainable Fundamentals
Factsheet

SK shieldus constantly thrives to improve the way our employees work to improve the quality of life while
creating a Digital Work environment.

Work
from Anywhere01

Worksitechange-R educe commuting timeby directly going to work-R educe unnecessary overtime

02

Commuting to
the field- Decrease: Commuting/moving/unnecessary overtime- Increase: Field working hours

03

Mobile office
operation-S hared desking at the head office(Samsung-dong)-U tilization of branch offices nationwide

04

Flex-timework: Creation of digital work
environment

Increase of employee
satisfaction

Improving
Performance

Appendix-D ecrease: Commute time-U tilization of Smart work tools(Cloud PC, Video Conferencing)

ESG Focus

Ensuring Employee Rights

SK shieldus runs a bottom-up communication channel where employees share their
feelings of inconvenience, complaints, and improvement matters; thus respect ouremployees’ human rights and create a pleasant workplace for all. The employee
communication channel is available as on-site visits, meetings, and online reporting
channels. All employees can share their opinions on inconveniences at any time throughthe online reporting channel. In the future, we will plan mid-to-long-term tasks ofhiring more people with disabilities and more women and establishing procedures forguaranteeing the human rights of foreign workers.

Sympathy tok Sinmungo (anonymous) channel

Labor-management council meeting

Employee Communication Channel- Higher
work immersion
05

Work fromhome: Time design and efficient use→ Securing self-development time
: Tailored to work and lifestyle

ChannelTargetCycle

Management method

Gong-gam Tok Inquiry/Suggestion All employees

Regularly

Reply within 24 hours

Gong-gam Tok Shinmungo(anonymous)

All employees

Regularly

Collecting posts every week and disclosing
company replies on the Gong-gam Tok

On-site visit

All employees

Occasionally

Delivery of company replies to relevantorganization

Meetings by department, team,and branch

Members of eachorganization

Bimonthly

Gathering opinions and preparing replies

Labor-management meeting byregional HQ and group

Members of eachorganization

Quarterly

Gathering opinions and preparing replies

39
SK shieldus
2022 Sustainability Report

Responsible and Transparent Management
Management Approach

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
Responsible & Transparent Management
		 - Management Approach		 - BOD-Centered Responsible ESG
Management
		 - Enhancing Ethics & Compliance		 - Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

Recently, the demand for improving corporate governance and expanding the scope of disclosing ESG
information has become apparent as a prerequisite for responsible activities of trustees following the
introduction of Social Responsibility Investment (SRI) and stewardship codes. In Korea, a corporate
governance disclosure system has been introduced that requires companies to report the compliancestatus of core principles on corporate governance to the Korea Stock Exchange. Thus, a sound governancestructure with transparency in corporate management has become the basis for sustainable growth.
SK shieldus seeks to establish a transparent governance structure of the board of directors, a leading
decision-making body composed of directors and management with diversity, independence, andexpertise, to strengthen compliance management to establish itself as a more trusted company.
We promise to comply with laws and regulations and practice the value of coexistence with various
stakeholders by enacting the compliance ethics regulations, appointing a compliance officer, andadopting ethical management.
SK shieldus will disclose management information transparently by implementing an advanced
governance structure, deliberating on core ESG policies centered on the board of directors, andreinforcing ESG monitoring from a company-wide perspective. Thus, we will strengthen communication
with stakeholders, including shareholders and investors, create financial and social values at the sametime, and contribute to harmonizing the present and future happiness of all stakeholders.

Major Performances in 2021
Establishment of ESG Management
Decision-Making System

Advancement of ComplianceManagement System(ESG Committee, ESG Office, ESG Innovation TF, etc.)

Publication of the First
Sustainability Report

Enhancement of EthicalManagement(Launch of Ethics Counseling Center)40
SK shieldus
2022 Sustainability Report

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
Responsible & Transparent Management
		 - Management Approach		 - BOD-Centered Responsible ESG
Management
		 - Enhancing Ethics & Compliance		 - Transparent Management
Sustainable Fundamentals
Factsheet

BOD-Centered Responsible ESG Management
Establishing Governance Operation Direction

Establishing and Operating the ESG Committee

SK shieldus established four directions, which are board-centered responsible management, board
expertise and diversity, board operation, and board independence. SK shieldus intends to establish atransparent governance structure and implement sustainable management.

ESG Practice System and Organization

Direction of Governance Operation
BOD-centered Responsible Management
Implementing the BOD-centered responsible management by securing independence
and strengthening the expertise of the BOD, the supreme decision-making body

Operation of Board Committees

Operating board committees with expertise to supervise the management

SK shieldus aims to create financial and social values by promoting ESG management centered on
ESG committees under the board of directors and achieving sustainable growth that harmonizes
stakeholders' present and future happiness. The ESG Committee reviews ESG-related strategies andthe status of implementing the ESG policy. In addition, the ESG Committee deliberates and decides onmatters that the Committee deems necessary concerning ESG as significant agenda items. In 2021,
ESG Committee discussed establishing the ESG management system, establishing a health and safety
management system and progress, upgrading the ESG compliance system, and setting Net Zero 2040
goals and mid-to-long term reduction plans.
ESG Promotion Organization

Appendix

ESG Committee

Enhancement of the Expertise and Diversity of the BOD

Considering diversity in the director appointment process to reflect the interest ofvarious stakeholders (50% female among non-executive directors)
Reinforcement of the Independence of the BOD

Organizing a certain percentage of outside directors to enable independent
decision-making in important decision-making

ESG Office•Directing ESG Management
plan/promotion

ESG Promotion
Team•Operation ESG Committee
and councils and report to thecommittee

ESG Innovation TF

E Module

S Module

G Module

41
SK shieldus
2022 Sustainability Report

Enhancing Ethics and Compliance
Operating Ethical Management System

About SK shieldus

Establishment of Ethical Management Policy

ESG Strategy

In the event an employee is in an ethical conflict regarding job
performance, SK shieldus requires that one judges and acts
based on the ‘Code of Compliance and Ethics.‘ We share the basic
direction of the company’s ethical management with stakeholders
through the ‘Code of Compliance and Ethics.’ The ‘Code ofCompliance and Ethics’ defines the ‘Ethical Behavior to Customers,
Companies, Subcontractors, Colleagues, and General Life’ norm
and guides specific practices in each area.

	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
Responsible & Transparent Management
		 - Management Approach		 - BOD-Centered Responsible ESG
Management
		 - Enhancing Ethics & Compliance		 - Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

1. Ethical behaviors
for customers

1-1. Respect for customers
1-2. Offering accurate information
1-3. Equal treatment
1-4. Grievance handling
1-5. Customer information management

2-1. Compliance with anti-corruption regulations
2-2. Compliance with conflict of interest regulations
2. Ethical behaviors 2-3. Fair job execution
for the company 2-4. P rohibition of misuse of corporate assets andinformation
2-5. Appropriate ID and password management
3-1. Prohibition of unfair purchasing
3. E thical behaviors
3-2. Prohibition of power abusing
for suppliers
3-3. Prohibition of unethical behaviors
4-1. Mutual respect
4-2. Prohibition of informal gatherings
4-3. Prohibition of gifts and money transactions
4. Ethical behaviors
4-4. Prohibition of sexual harassment
for colleagues
4-5. Prohibition of discrimination
4-6. P rohibition of requests for money orentertainment
5. Ethical behaviors 5-1. General principles
in daily life
5-2. Political activity and donation

Ethical Management System
SK shieldus operates an organization dedicated to ethical management to effectively deal with ethical risks through a virtuous cycle ofthe ethical management process of “Prevention-Detection-Respond.” To prevent ethical risks, SK shieldus conducts ‘Ethics Management
Survey,’ ‘Ethics Management Practice Workshop,’ and ‘Online Ethics Management Practice Training’ for all employees every year. We
provide guide on ethical violations and such situations that occur frequently at work through regular or monthly customized education,such as ‘Ethical Management Practice Letters,’ ‘Compliance Ethics Webtoon’, ‘Mutual Respect Webtoon,’ and ‘Diagnosis of Mutual
Respect.’ Through this, we endeavor to improve the level of ethics among employees and spread the culture of ethical management.
Moreover, SK Group operates and manages the ‘Ethics Management Information/Consultation Channel (https://ethics.sk.co.kr)’ thatallows all stakeholders of SK shieldus to consult anonymously. We also provide information and consultation channel links to thecompany's website (PC version/mobile version) and in-house intranet. An whistleblower protection program (protecting whistleblower
status and prohibiting disadvantages/retaliation measures caused by reporting) is also operated to ensure that whistleblower areprotected from disadvantages, and we discover issues based on the reported matters and take measures, such as establishing action
items on issues.

Framework

Area

Code of

Code of Ethics

Prevention

Detection

Diagnosis / Survey

Reporting channels

Individual

Training•Ethical management practice guidebook- Reflecting ethical management practice survey
results

Response
Prevention•Ethical management practice survey (once a year)•Ethical management practice workshop (once a year)•Ethical management practice letter (12 times a year)

Detection•Group-based integrated reporting channel•Whistleblower protection guideline•Inspection of the self-cleaning system

Response•Punishment•Improvement of RM system in vulnerable areas

Punishment

Organization

Feedback

EthicsAction Programs

AuditsFollow-up measures

Regular monitoring

SystemContent sharing/ trainings improvement

Applying to prevention

Infrastructure

42
SK shieldus
2022 Sustainability Report

Enhancing Ethics and Compliance
Enhancing Ethical Management Activities

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
Responsible & Transparent Management
		 - Management Approach		 - BOD-Centered Responsible ESG
Management
		 - Enhancing Ethics & Compliance		 - Transparent Management
Sustainable Fundamentals
Factsheet
Appendix

SK shieldus provides anti-corruption education regularly to establish regulations on compliancewith ethics and strengthen ethical compliance of all executives and employees. Especially, we selectitems that employees must keep in mind among the compliance ethics regulations, striving to foster
ethical awareness among all employees by announcing/providing ethical management letters,
law-abiding ethics online cartoons, and mutual respect online cartoons. In addition, to listen to ouremployees' voices regarding ethical management and to raise the level of practicing corporate ethicalmanagement, we run a system where employees can inform or consult anonymously and conduct
surveys to reflect to improve organizational culture activities. Furthermore, we receive the consent form
for ethics practice from suppliers and strive to prevent all corruption by requesting transparent and fairparticipation in transactions. For improved ethical management in the future, SK shieldus will specify
ethical management education contents to further strengthen ethics and compliance.

Major Activities

Details

Operation ofreporting andcounselingsystems•Operating on/offline channels for all stakeholders to report and consult on ethicalmanagement•Opened “Ethics Counseling Center” in 2021 to enable anonymous counseling in real-timewith the leaders of ethical management group

Strengthening
awareness of
ethics•Basic training for all employees at the group level (online)•Specialized education by/for leaders•Announcing/providing ethics management letter, compliance ethics webtoon, mutual
respect webtoon, etc.

Ethicalmanagement
survey•Annual employee survey•Reflecting survey results in ethical management system and corporate culture
improvement activities

Disseminationof ethicalmanagement to
suppliers•Request for participating in ethical management practice by sending out a letter denying
holiday gifts/money and valuables on traditional days, operating a bribery reporting
center, and receiving a pledge on ethics practiceCompliance System Operation
Compliance Risk Management System
Regulations on fair competition, anti-corruption, and environmental protection are becoming stricter
around the world, and corporate social responsibility serves as a vital factor of corporate management.
As a consequence, SK shieldus adopted the Compliance Program (CP) in 2016 to strengthen compliancemanagement in compliance with all laws and regulations. We will continue to advance our compliancemanagement framework to systematically prevent, monitor, manage, and respond to compliance risks.
Advanced Compliance System
Compliance
check

Contract control/ legal review• Prior inspection • Management
on affiliates’
and review oftransactions
standard and• Inspection on
non-standard
subcontracts
contracts• Inspection on• Seal
Security Services management
Industry Act•Legal review

Regulation
management

Information
protection• Enactment andamendment ofcorporate rule• Operation ofcomplianceguideline• Information
protection
management
systemCompliancecheck

Anti-corruption•Safety and health • Ethical management
management
systemsystem•Due diligence by athird party•Report on gifts andentertainment•Conflict of interest
reporting process• Collusion prevention
process

Compliance Organization
We appoint the Compliance Officer to ensure compliance with all laws and regulations of the company.
The Legal Group is a department dedicated to compliance management that provides employees witheducation and supports compliance practices, establishing CP regulations, detailed guidelines, andvarious compliance guidelines.

Compliance Officer (Head of ESG Office)Legal Affairs Group•Operation and support of compliance program- Planning of compliance program- Compliance program training and compliance activity support- Prevention of violations of laws through compliance check- Creation and distribution of compliance guideline, etc.

43
SK shieldus
2022 Sustainability Report

About SK shieldus
ESG Strategy
	ESG Strategy System & Major
Performances
Eco-friendly Management System
Social Impact Creation
Responsible & Transparent Management
		 - Management Approach		 - BOD-Centered Responsible ESG
Management
		 - Enhancing Ethics & Compliance		 - Transparent Management
Sustainable Fundamentals

Enhancing Ethics and ComplianceTransparent Management

Compliance Guideline

Enhancing Disclosure of ESG Performance

As part of the advanced compliance for ESG management, the Self-Compliance Guidelines, without
being limited to fair trade, have been with designed new provisions that include the safety of employees
and the people, reflect the revision of relevant laws and regulations. The guideline is used to understandthe regulatory environment and comply with applicable laws. SK shieldus produces and distributes thecompliance guidelines, presenting clear standards of fair trade behavior to the employees and hence
striving to prevent risks from violating fair trade laws.

Enhancing Disclosure of ESG and Stakeholder Communication
SK shieldus publishes annual sustainability report to communicate with various stakeholders anddiscloses corporate information, objectives, and activities for each ESG field in detail, through which
diverse stakeholder opinions are reflected in our management activities.

Enactment and Amendment Process of Compliance Guideline
Reflection of accurate
information on aregular basis
Plan to create
compliance guideline

Creation of guideline

Distribution ofguideline

Continuous
improvement

Factsheet

Publication and disclosureof sustainability report

Appendix

Ethics and Compliance Training
SK shieldus provides ethics and compliance training to its employees every year. In 2020 and 2021, thetraining was conducted online due to the COVID-19 situation. Various contents are selected every year
to enable our employees to practice compliance ethics management. Furthermore, we designed online
cartoons on the matters related to complying with the Fair Trade Act and posted them on the website
for easy access for employees.

Prevention, Monitoring, and Response System for Compliance Risks
SK shieldus establishes compliance control standards as company regulations and conducts
compliance inspection activities based on them. Subcontracting transactions and expenses are thekey monitoring fields, and we are determined to prevent the risk of violation of the law in advance byidentifying the matters that the company must observe according to the relevant regulations.

•Publishing sustainability reportto transparently disclosesustainability management
activities and performances toshareholders and stakeholders

Disclosure ofenvironmental information•Actively establishing andimplementing environmental
management goals anddisclosing the process

Enhancement of stakeholder
communication•Disclosing corporate
information, goals, andactivities for each ESG
field in detail and reflecting
stakeholders’ opinions throughcommunication•Conducting IR conference
twice

44

3

Sustainable Fundamentals
45

Governance47

Risk Management

48

Stakeholder Engagement & Materiality Assessment

45
SK shieldus
2022 Sustainability Report

Governance
Board of Directors

About SK shieldus
ESG Strategy
Sustainable Fundamentals
GovernanceRisk Management
	
Stakeholder Engagement &Materiality Assessment
Factsheet
Appendix

Board Committees

Establishing the BOD-centered corporate governance, SK shieldus operates the BOD consisting of 7
directors including 4 non-executive directors as of the end of March 2022. This structure meets therequirement stipulated in Article 21 of the articles of incorporation that the BOD shall be composed of
3 to 10 members and the number of non-executive directors shall be at least 3 or a majority. Although
SK shieldus is an unlisted company, it conforms to the ratio of non-executive directors in the BOD oflisted companies as stipulated in Article 542-8 of the Commercial Act. In addition, two out of four nonexecutive directors are female, satisfying the requirement that the BOD cannot consist of only a specificgender under Article 21 of the articles of incorporation. Under Article 25 of the articles of incorporationand the BOD regulation, Kim Jong-il, a non-executive director, was appointed as the BOD Chairman in
December 2021, to strengthen transparency and independence.

Article 30 of the articles of incorporation stipulates that the Audit Committee, Nominating Committee,
and other committees deemed necessary by the BOD can be established by the resolution of the BOD.
SK shieldus currently operates board committees as follows.
Board Committees

BOD Operation
Appointment of Directors
Directors are appointed at the general shareholders' meeting as stipulated in Article 21 of the articles
of incorporation, the representative director is appointed by the resolution of the BOD among theappointed directors. Non-executive directors are appointed at the general shareholders’ meeting
after being nominated by the Nominating Committee in accordance with Article 5 of the Nominating
Committee regulation. The number of non-executive directors to be appointed shall be at least three
and a majority of the BOD members, as stipulated in Article 21 of the articles of incorporation.

•Composition: 6 registered directors besides the Chairman

Shareholders’ Meeting •Authority: Deliberate and decide on important matters of company
management in accordance with the Commercial Act,
articles of incorporation, and committee regulations

Board of Directors

Audit Committee

Nominating Committee

ESG Committee

Internal Transaction
Committee• Composition: 3 members
besides the Chairman• Composition: 2 members
besides the Chairman• Composition: 3 members
besides the Chairman• Composition: 3 members
besides the Chairman• Authority: Audit on
accounting and businessin accordance with thearticles of incorporationand committee
regulations• Authority:
Recommendationof candidates to beappointed at theshareholders’ meeting• Authority: ESG strategy
establishment andreporting the result to
the BOD• Authority: Deliberationof transactions between
affiliates as stipulated in
the Commercial Act, theCommission regulations, etc.

CEO

BOD Composition1)
Name

Director

GenderPosition

Term

Professionalism

CareerPark Jin-hyo

Executive Director / CEO

Male

Member of the Nominating Committee & ESG Committee

Dec. 2020 ~ Mar. 2023

Corporate management, network technology

Director of ICT Center, Director of Network Technology Center, SK Telecom

Kim Yong-hwan

Other Non-standing Director Male

Member of the ESG Committee

Dec. 2020 ~ Mar. 2023

Corporate investment

Current) CEO, Macquarie Asset Management

Song Jae-seung Other Non-standing Director Male-Spe. 2021 ~ Sep. 2023

Corporate value assessment

Current) CIO1 MD, SK Square / Director of Corporate Development Group, SK Telecom

Kim Jong-il

Non-executive Director

MaleChairman of the BOD / Chairman of the Nominating Committee / Member of the
Audit Committee / Member of the Internal Transaction Committee

Dec. 2021 ~ Mar. 2023

Financial expert

Current) Professor in Accounting, Catholic University of Korea / CPA (EY, Deloitte)

Kim Bum-soo

Non-executive Director

MaleChairman of the Audit Committee / Member of the Nominating Committee /Member of the Internal Transaction Committee

Dec. 2021 ~ Mar. 2023

Information protection

Current) Dean of Graduate School of Information, Yonsei University / Vice-Chairman of Data
Governance & Privacy, OECD

Yoon Hye-seon

Non-executive Director

FemaleChairman of the Internal Transaction Committee / Member of the Audit Committee
Dec. 2021 ~ Mar. 2023
/ Member of the ESG Committee

Legal affairs / ESG

Current) Professor, Hanyang University Law School / Advisory Member, Financial Services
Commission, Anti-Corruption and Civil Rights Commission, etc.

Kang Hyun-jeong Non-executive Director

FemaleChairman of the ESG Committee / Member of the Audit Committee / Member of
the Internal Transaction Committee

Legal affairs / information protection

Current) Attorney, Kim & Chang Law Firm / Member of Dispute Mediation Committee, Financial
Supervisory Service

Dec. 2021 ~ Mar. 2023

1) As of March 2022 (including consecutive terms)

46
SK shieldus
2022 Sustainability Report

About SK shieldus
ESG Strategy
Sustainable Fundamentals
GovernanceRisk Management
	
Stakeholder Engagement &Materiality Assessment
Factsheet
Appendix

Governance
BOD Performance

Enhancing the Independence and Professionalism of the BOD

The BOD of SK shieldus deliberated and concluded a total of 71 agendas in 2021, including the approvalof the merger contract in January, by convening 20 meetings. The resolution of the BOD prescribedin the articles of incorporation requires the attendance of a majority of directors and the approval of amajority of present directors, except in cases where the relevant laws or the BOD separately strengthen
the resolution requirements.

The articles of incorporation stipulate that non-executive directors who are experts in finance,
information protection, and law occupy a majority of the BOD in order to ensure independence andtransparency. Particularly, the BOD is chaired by a non-executive director for independent operation.
The ESG Committee comprises two non-executive directors who are experts in law, information
protection, and ESG; one other non-standing director, and finally the CEO. The Nominating Committee
consists of two non-executive directors and the CEO. When it is necessary to appoint non-executive
directors, the Nominating Committee evaluates and confirms the candidates managed by the company
and submit them to the general shareholders’ meeting.

In addition, it is stipulated that directors who have an conflicts of interest in a resolution of the BOD
cannot exercise their voting rights on the agenda. If directors do not attend the meeting in person,
they may exercise voting rights by attending the meeting through a communication method (online)that transmits and receives voice at the same time. From 2021 to the end of March 2022, the directors’
average attendance rate was 99%. SK shieldus will continue to operate the BOD in a reasonable andtransparent manner to enhance corporate value.

Major Deliberation and Conclusion Agendas of the BOD
No.

Major agenda

Conclusion

1

Approval of the conclusion of the merger contract

Passed2

Convocation of general shareholders’ meeting

Passed3

Establishment of the ESG Committee and appointment of members

Passed4

Approval of the establishment of a U.S. subsidiary

Passed5

Approval for operation of incentive pay in 2021

Passed6

Appointment of the Chairman of the BOD and enactment of the BOD regulation

Passed7

Establishment of the Audit Committee and appointment of members

Passed8

Amendment of the ESG Committee regulation

PassedLiability Insurance for Directors
We subscribe to executive liability insurance every year in preparation for guaranteeing economic
damages arising from any misconducts that may occur during the director's performance in corporate
management; in other words, if a company or a third party is liable for damages due to a violation ofduty, negligence, carelessness, false statements, negligence of work, omission of work, etc.

BOD Compensation
Performance Evaluation and Compensation for the Management
SK shieldus measures the performance of the CEO and management; remuneration is paid according
to the executive management regulation and executive severance pay regulations approved by the
BOD and general shareholders' meeting. Performance evaluation is conducted comprehensively byconsidering both financial and non-financial performance, and registered executives are paid within
the limit of director remuneration limit approved at the annual general shareholders’ meeting. The BOD
regulation amended in December 2021 stipulated that the remuneration of the CEO and executive
directors should be approved by the BOD every year along with the annual management plan, whichstrengthens transparent management and the authority of the BOD. As ESG management's impact
on corporate sustainability intensifies, we plan to include ESG management items in the performance
evaluation indicators of the CEO and management from 2022.

47
SK shieldus
2022 Sustainability Report

Risk Management
Risk Management

Risk Response System

About SK shieldus
ESG Strategy

Risk Management System

Sustainable Fundamentals

SK shieldus defines risk an occurrence of a possible financial event that negatively affects theachievement of a company's strategy or management goals, or the possibility of such events. We pursue
growth and stability by eliminating uncertainty in the corporate environment through continuous risk
control. In particular, a risk management system was built to preemptively identify internal and externalrisks and establish and implement countermeasures. Risks occurring in each organization initially go
through an internal reporting process and a committee within its jurisdiction according to their typeand level of importance. After this, they are finally reported to and managed by the board of directors.
SK shieldus will continue to develop this management system to minimize diverse and complex risks
that may occur in the business.

GovernanceRisk Management
	
Stakeholder Engagement &Materiality Assessment
Factsheet
Appendix

SK shieldus classifies risks into three stages and establishes a risk response system for each stage. Thus,
we operate the RM W/G (Risk Management Working Group), an organization that responds to eachtype of risk. The organization in which the risk has occurred shares risk situations immediately with thecompliance teams at initial reporting as well as working closely with RM W/G to ensure quick response.

Risk detection /occurrence•Situation sharing /Each department•Response /Finance Group

Customercentered Mgt.
Group

SCM Group

Level 1

Level 2

Level 3

cooperation

CEO

Supplier Risk

Severity judgment•Risk Level Judgment

Board of Directors

Customer Risk

customer response• Response /cooperation request

RM W/G[3]Financial Risk

Customer Protection
CenterBusiness Risk

BusinessGroup

Safety &Health Risk

SHE OfficeCompliance
Risk

Legal Affairs
Group

EM System[1]Operation of Crisis
Response Situation
Room [2]Risk response andmanagement

Completion[1] An abbreviation of Emergency Management, which is a company-wide RM system with upgraded crisis response compared to theregular RM system in case of a serious crisis.
[2] The Crisis Response Situation Room is composed of the CEO, the head of the Situation Office in charge of the risk, and theCompliance Team leader (※ Operation of the Situation Room).
[3] Risk Management Working Group refers to the person in charge of risk response in each organization according to the type of risk.

48
SK shieldus
2022 Sustainability Report

Stakeholder Engagement & Materiality Assessment
Stakeholder engagement

About SK shieldus
ESG Strategy

SK shieldus defines stakeholders as all subjects who directly or indirectly affect corporate management activities. Key stakeholders are classified into employees, customers, shareholders & investors, partners,
government agencies, communities/NGOs, and media. We have communication channels for each stakeholder to collect opinions, making every effort to reflect key opinions in management activities.

Sustainable Fundamentals
GovernanceRisk Management
	Stakeholder Engagement &Materiality Assessment
Factsheet
Appendix

Stakeholders

Employees

Customers

Shareholders / Investors

Suppliers

Communication channel•Stakeholder survey•Customer satisfaction survey•Information disclosure on the•Events for suppliers (Shared•Employee satisfaction survey•VOC on the website

website•Stakeholder survey

Growth Day, etc.)•Visit to suppliers•Stakeholder survey•Labor-management councils(including management
council, labor-management
co-prosperity committee,
regular councils)
Expectations

Government•Stakeholder survey•Stakeholder survey•Social contribution partner

meeting•Spread of GWP culture•Product responsibility•Career development and•Business innovation for•Product responsibility•Reinforcement of supply

enhancement•Customer service
enhancement•Establishment ofenvironmental management
systemeconomic value creation•Enhancement of nonfinancial risk management•Establishment of climatechange response system and
GHG emission control

enhancement•Ethical management
enhancement•Cooperative labormanagement relations

chain management•Energy saving•Reduction of waste discharge

becoming business expert•Workplace safety and healthmanagement

Local communities / NGOs

•Enhancement of impact on

local communities

49
SK shieldus
2022 Sustainability Report

Stakeholder Engagement & Materiality Assessment
Materiality Assessment

About SK shieldus
ESG Strategy

Materiality Assessment Process

Sustainable Fundamentals

SK shieldus conducted materiality assessment to identify key ESG issues. Through analysis of the corporate status and business environment, we composed the issue pool and implemented analysis of media risk,
analysis of global standards and assessment indicators, analysis of benchmarking, a survey of internal and external stakeholders, and internal response level analysis. Material issues were identified through theanalysis of likelihood and impact from the risk perspective. Those key ESG issues were reviewed by the ESG Committee and activities by each issue is disclosed to stakeholders in a transparent manner.

Factsheet
Appendix

Materiality Assessment Result
Rank Material issue1

Enhancement of ethical management

Materiality Assessment Matrix
Reporting Content
scope

GRI

Page

●

2 ESG Strategy – responsible & transparent management – enhancing ethics &compliance-P.41-43

2 ESG Strategy – social impact creation – increasing social value-

P.21-22, 25

403

P.32-34

305

P.18

2

Enhancement of product responsibility◉

3

Reinforcement of workplace safety andhealth management●

4

Establishment of climate change response
system and emissions control◉

5Energy saving●

2 ESG Strategy – eco-friendly management system – eco-friendly businessportfolio management, response to climate change

302

P.16, 18

6

Business information for economic value
creation●

2 ESG Strategy – eco-friendly management system – eco-friendly businessportfolio management

-

P.16

7

Establishment of a culture of GWP●

2 ESG Strategy – social impact creation – talent management401

P.37-38◉

2 ESG Strategy – social impact creation – the practice of customer-centered
management-

P.26-29404

P.35-36

-

P.47

-

P.21-22, 25-

P.30-31-

P.45-46

8

Enhancement of customer service

9

Employee competence development andbusiness expert cultivation●

10

Enhancement of non-financial risk
management●

11

Implementation of strategic social
contribution activities◉

12

Reinforcement of supply chain management◉

13

Efficient composition and operation of the
BOD

14
15

Reduction of waste generation
Establishment of environmental
management system●

2 ESG Strategy – social impact creation – safety and health risk management
2 ESG Strategy – eco-friendly management system – response to climate change

2 ESG Strategy – social impact creation – talent management
3 Sustainable fundamentals – risk management
2 ESG Strategy – social impact creation – increasing social value
2 ESG Strategy – social impact creation – creating ECO shieldus
3 Sustainable fundamentals - governance

1st Tier

Stakeholder Interest

GovernanceRisk Management
	Stakeholder Engagement &Materiality Assessment

10

2 ESG Strategy – eco-friendly management system – the practice of circular
economy

306

P.19

◉

2 ESG Strategy – eco-friendly management system – advancement ofenvironmental management

-

P.17

*○ External ● Internal ◉ Internal & External

8

4

21

26

25

6

15 11
14

18
20

1
7

13

24

●

2

5

19

3
9
12

16

22
23
17

2nd Tier

Business Relevance● Economy ● Environment ● Society ● Governance50

4Factsheet51

Economic Performance

52

Environmental Performance

53

Social Performance

57

Governance Performance

51
SK shieldus
2022 Sustainability Report

Economic Performance
Indicator

Unit

ESG Strategy

Number of employees

Sustainable Fundamentals
Factsheet

About SK shieldus

Economic Performance
Environmental Performance
Social Performance
Governance Performance
Appendix

Main category

Corporate profile

Medium category

Subcategory

Reporting scope1)

2021

2020

2019

2021

2020

2019

Persons

6,563

6,497

6,342

◉

◉

◉

Number of worksites

Places

106

104

103

◉

◉

◉

Domestic infrastructure and worksites

Places

103

103

102

◉

◉

◉

Overseas infrastructure and worksites

Places

3

1

1

◉

◯

◯

Number of countries where worksites arelocatedPlaces

3

1

1

◉

◯

◯

Sales

KRW million

1,549,714

314,698

270,423◉◯◯

Total equity

KRW million

376,182

343,945

96,719◉◯◯1) Reporting scope: ◉ : SK shieldus or ADT Caps+Infosec • : ADT Caps ◯ : Infosec

52
SK shieldus
2022 Sustainability Report

About SK shieldus

Environmental Performance
Main category

Medium category

Subcategory

ESG Strategy

Total GHG emissions

Sustainable Fundamentals
Factsheet
Economic Performance
Environmental Performance
Social Performance
Governance Performance

GHG emissions

Appendix

Direct GHG emissions

Indirect GHG emissions

Energy consumption
Energy use

Energy intensity

Reporting scope1)

Indicator

Unit

2021

2020

2019

2021

2020

2019

GHG emissions (Scope 1 + Scope 2)

tCO2eq15,344

15,516

Uncalculated

◉

◉

-

GHG emissions intensity (Scope 1 + Scope 2)

tCO2eq/KRW
100 million

1.00

4.93

Uncalculated

◉

◉

-

Total Scope 1 emissions

tCO2eq11,647

12,013

Uncalculated

◉

◉

-

Scope 1 emissions intensity

tCO2eq/KRW
100 million

0.75

3.82

Uncalculated

◉

◉

-

Total Scope 2 emissions (location-based)

tCO2eq

3,697

3,503

Uncalculated

◉

◉

-

Scope 2 emissions intensity (location-based)

tCO2eq/KRW
100 million

0.24

1.11

Uncalculated

◉

◉

-

Total energy consumption

TJ

266.4

268.9

Uncalculated

◉

◉

-

Electricity consumption – head office

TJ

47.8

45.8

Uncalculated

◉

◉

-

Electricity consumption – local office

TJ

29.4

27.4

Uncalculated

◉

◉

-

Fuel consumption - LPG

TJ

136.5

145.8

Uncalculated

◉

◉

-

Fuel consumption – diesel

TJ

13.3

11.4

Uncalculated

◉

◉

-

Fuel consumption – gasoline

TJ

36.2

35.6

Uncalculated

◉

◉

-

Fuel consumption – LNG

TJ

3.2

2.9

Uncalculated

◉

◉

-

Energy consumption intensity

TJ/KRW 100
million

0.02

0.09

Uncalculated

◉

◉

-

1) Reporting scope: ◉ : SK shieldus or ADT Caps+Infosec • : ADT Caps ◯ : Infosec

53
SK shieldus
2022 Sustainability ReportSocial Performance
Unit

2021

2020

2019

2021

2020

2019

ESG Strategy

Total training expenses

KRW

1,138,642,918

1,220,249,144

1,749,618,129

◉

◉

◉

Sustainable Fundamentals

Employees who completed training

Persons

6,598

4,873

4,851

◉

•

•

Factsheet

Total training hours

Hours

2,408,270

1,403,424

1,397,088◉••

Total training hours (by job) – head officeHours963,308561,370

558,835◉••

Total training hours (by job) – local officeHours

1,444,962

842,054

838,253◉••

Total training hours (by gender) – male

Hours

2,191,526

1,319,219

1,313,263◉••

Total training hours (by gender) – female

Hours

216,744

84,20583,825◉••

Average training hours per employee

Hours/Person

365

288

288

◉

•

•

Employees who completed human rights training

Persons

7,022

5,221

5,220

◉

•

•

Ratio of employees who completed human rights training

%

100.0

100.0

100.0

◉

•

•

Employee satisfaction level (out of 5)

Point

3.56

3.62

3.47

◉

•

•

Employee satisfaction survey response rate

%

37.5

52.5

58.4

◉

•

•

Union membership

Number of union members (total)

Persons

2,629

2,586

2,718

◉

•

•

Employees subject tocollective agreement

Number of employees subject to collective agreement

Persons

5,894

4,156

4,168

◉

•

•

Ratio of employees subject to collective agreement

%

100.0

100.0

100.0

◉

•

•

Economic Performance
Environmental Performance
Social Performance
Governance Performance

Employeetraining

Medium category

Subcategory

Reporting scope1)

Indicator

About SK shieldus

Main category

Employee training programs

Appendix

Human rights
management

Human rights violation prevention
programs

Labormanagement
relations

Labormanagement
relations
Performance

Employee satisfaction

1) Reporting scope: ◉ : SK shieldus or ADT Caps+Infosec • : ADT Caps ◯ : Infosec

54
SK shieldus
2022 Sustainability ReportSocial Performance
Unit

2021

2020

2019

2021

2020

2019

ESG Strategy

Number of permanent employees

Persons

5,792

5,641

5,436

◉

◉

◉

Sustainable Fundamentals

Number of temporary employees

Persons

771

856

900

◉

◉

◉

Factsheet

Permanent employees - male

Persons

5,240

5,126

4,957

◉

◉

◉

Permanent employees - female

Persons

552

515

479

◉

◉

◉

Temporary employees - male

Persons

719

795

832

◉

◉

◉

Temporary employees - female

Persons

52

61

68

◉

◉

◉

Number of full-time employees

Persons

6,533

6,478

6,335

◉

◉

◉

Full-time employees - male

Persons

5,941

5,904

5,789

◉

◉

◉

Full-time employees - female

Persons

592

574

546

◉

◉

◉

Number of part-time employees

Persons

30

19

1

◉

◉

◉

Part-time employees – male

Persons

18

17

0

◉

◉

◉

Part-time employees – female

Persons

12

2

1

◉

◉

◉

Number of female managers

Persons

25

20

15

◉

◉

◉

Ratio of female managers

%

6.7

5.7

4.7

◉

◉

◉

Number of female technical workers

Persons

271

238

204

◉

◉

◉

Ratio of female technical workers

%

16.1

15.4

14.4

◉

◉

◉

Number of female non-technical workers

Persons

333

338

343

◉

◉

◉

Ratio of female non-technical workers

%

6.8

6.8

7.0

◉

◉

◉

Number of employees with disabilities

Persons

103

93

70

◉

◉

◉

Ratio of employees with disabilities

%

1.6

1.4

1.1

◉

◉

◉

Economic Performance
Environmental Performance
Social Performance
Governance Performance

Medium category

Subcategory

Reporting scope1)

Indicator

About SK shieldus

Main category

By contract type

Appendix

Employeediversity

By position

By jobBy diversity indicator

1) Reporting scope: ◉ : SK shieldus or ADT Caps+Infosec • : ADT Caps ◯ : Infosec

55
SK shieldus
2022 Sustainability Report

About SK shieldus
ESG Strategy
Sustainable Fundamentals
Factsheet
Economic Performance
Environmental Performance
Social Performance
Governance Performance

Social Performance
Main category

Medium category

Employeecompensation

Female basic salary to male

Turnover rate
and year ofservice

Subcategory

Turnover

Employee subject toparental leave

Appendix

Employee who usedparental leave

Ratio of employee who
used parental leave
EmployeewelfareUse of parental
leave

Return to work afterparental leave

Ratio of return fromparental leave

Working after returnfrom parental leave

Indicator

Unit

2021

2020

2019

Ratio of female basic salary to male

%

92.1

100.2

Number of employee turnovers

Persons

977

Number of male employee turnovers

Persons

Number of female employee turnovers

Reporting scope1)
2021

2020

2019

95.4

◉

•

•

969

1,185

◉

◉

◉

861

864

1,063

◉

◉

◉

Persons

116

105

122

◉

◉

◉

Employees subject to parental leave - total

Persons

1,202

1,180

1,164

◉

◉

◉

Employees subject to parental leave – male

Persons

1,152

1,149

1,135

◉

◉

◉

Employees subject to parental leave – female

Persons

50

31

29

◉

◉

◉

Employees who used parental leave - total

Persons

84

69

72

◉

◉

◉

Employees who used parental leave - male

Persons

53

58

57

◉

◉

◉

Employees who used parental leave - female

Persons

31

11

15

◉

◉

◉

Ratio of employees who used parental leave - total

%

7.0

5.8

6.2

◉

◉

◉

Ratio of employees who used parental leave – male

%

4.6

5.0

5.0

◉

◉

◉

Ratio of employees who used parental leave – female

%

62.0

35.5

51.7

◉

◉

◉

Employees who returned to work from parental leave - total

Persons

46

49

62

◉

◉

◉

Employees who returned to work from parental leave – male

Persons

36

37

31

◉

◉

◉

Employees who returned to work from parental leave – female

Persons

10

12

31

◉

◉

◉

Ratio of return from parental leave - total

%

73.0

67.1

91.2

◉

◉

◉

Ratio of return from parental leave – male

%

70.6

61.7

83.8

◉

◉

◉

Ratio of return from parental leave – female

%

83.3

92.3

100

◉

◉

◉

At least 12-month work after return from parental leave - total

Persons

40

38

48

◉

◉

◉

At least 12-month work after return from parental leave – male

Persons

32

29

23

◉

◉

◉

At least 12-month work after return from parental leave – female

Persons

8

9

25

◉

◉

◉

87.0

77.6

77.4

◉

◉

◉

Ratio of employees with at least 12-month work after return from%parental leave - total

1) Reporting scope: ◉ : SK shieldus or ADT Caps+Infosec • : ADT Caps ◯ : Infosec

56
SK shieldus
2022 Sustainability Report

About SK shieldus
ESG Strategy
Sustainable Fundamentals

Social Performance
Main category

Employeeevaluation

Medium category

Subcategory

Regular evaluation on employee
performance

Factsheet
Economic Performance
Environmental Performance
Social Performance
Governance Performance
Appendix

Occupational
health and safety

Occupational accidents

Occupational health and safety training
and committee

Local
community
impactSocial contribution expense

Social contribution performance

Information protection and response
activities
Information
protection
Information protection performance

Indicator

Unit

Reporting scope1)

2021

2020

2019

2021

2020

2019

Number of employees who received regular performance evaluation Persons

5,881

1,444

1,354

◉

◯

◯

Ratio of employees who received regular performance evaluation

%

100.0

100.0

100.0

◉

◯

◯

Industrial accident rate

%

0.61

1.09

0.78

◉

•

•

Severity rate of injury

%

0.074

0.136

0.108

◉

•

•

Labor loss days

Days

1,633

2,249

1,788

◉

•

•

Toral labor hours

Hours

22,199,664

16,551,192

16,483,176

◉

•

•

Number of work-related injuries

Persons

40

53

38

◉

•

•

Lost time injury frequency rate (LTIFR)

-

0.72

1.87

2.18

◉

•

•

Occupational illness frequency rate (OIFR)

-

0

0

0

◉

•

•

Number of work-related fatalities

Persons

0

0

0

◉

•

•

Participants in safety staff trainings

Persons

2

0

0

◉

•

•

Number of Occupational Safety & Health Committee meetings

Times

3

3

4

◉

•

•

Cash

KRW

85,430,366

78,948,110

73,911,864

◉

•

•

Project cost

KRW

1,721,597

929,516

3,017,161◉••

Employees’ social contribution

KRW

13,994,060

15,046,408

25,470,648

◉

•

•

Total participation hours

Hours

1,042

1,352

2,328

◉

•

•

Total participants

Persons

391

320

362

◉

•

•

Ratio of information security audits

%

100.0

100.0

100.0

◉

◉

◉

Worksites certified for information security

Persons

12

12

12

◉

◉

◉

Training completion rate of information protection training targets

%

100.0

100.0

100.0

◉

◉

◉

Number of personal information leakages

Cases

0

0

0

◉

◉

◉

Number of information security violations or cybersecurity accidents Cases

0

0

0

◉

◉

◉

Total penalty or fines due to information security violations or
cybersecurity accidents

KRW

0

0

0

◉

◉

◉

Number of customers affected by data leakage

Persons

0

0

0

◉

◉

◉

1) Reporting scope: ◉ : SK shieldus or ADT Caps+Infosec • : ADT Caps ◯ : Infosec

57
SK shieldus
2022 Sustainability Report

About SK shieldus

Governance Performance
Main category

Factsheet
Economic Performance
Environmental Performance
Social Performance
Governance Performance

Subcategory

Composition of the BOD

ESG Strategy
Sustainable Fundamentals

Medium category

Diversity of the BOD
BOD structure
and composition
Independence of the BOD
BOD operation

BOD meetings

Appendix

Stakeholder
engagement

Frequency by stakeholder engagement
type

Indicator

Unit

Number of the BOD members

Reporting scope1)

2021

2020

2019

2021

2020

2019

Persons

7

7

3

◉

◯

◯

Number of female directors

Persons

2

1

0

◉

◯

◯

Ratio of female directors

%

29.0

14.0

0.0

◉

◯

◯

Number of non-executive directors

Persons

4

0

0

◉

◯

◯

Ratio of non-executive directors

%

57.0

0.0

0.0

◉

◯

◯

Number of the BOD meetings held

Times

20

11

5

◉

◯

◯

Stakeholder engagement method and frequency byengagement type – employees

Times

6

6

6

◉

•

•

Stakeholder engagement method and frequency byengagement type – customers

Times

8

8

8

◉

•

•

Stakeholder engagement method and frequency byengagement type – shareholders & investors

Times

10

4

4

◉

•

•

Stakeholder engagement method and frequency byengagement type – suppliers

Times

6

6

1

◉

•

•

1) Reporting scope: ◉ : SK shieldus or ADT Caps+Infosec • : ADT Caps ◯ : Infosec

58

Appendix
59

GRI

61

SASB

62

UN SDGs-Related Activities

63

Independent Assurance Statement

65

Association Membership & Awards

5

59
SK shieldus
2022 Sustainability Report

GRI■ Universal Standards (GRI 100)
Code

Description

SK shieldus' response Verification

About SK shieldus

102-1

Name of the organization

5pg

ESG Strategy

102-2

Activities, brands, products, and services

Sustainable Fundamentals

102-3

Factsheet

102-4

Appendix
GRI
SASB
UN SDGs-Related Activities
Independent Assurance Statement
Association Membership & Awards

Code

Description

SK shieldus' response VerificationV

102-43

Approach to stakeholder engagement

48pg

V

5-7pg

V

102-44

Key topics and concerns raised

49pg

V

Location of headquarters

5pg

V

102-45

Entities included in the consolidated financial statements

5pg

V

Location of operations

5pg

V

102-46

Defining report content and topic Boundaries

2pg

V

102-5

Ownership and legal form

5pg

V

102-47

List of material topics

49pg

V

102-6

Markets served

5, 51pgV

102-485, 51pg

V

No restatements dueto the first report

V

102-7

Scale of the organization

Restatements of information

102-8

Information on employees and other workers

5, 51pgV

102-49Changes in reporting

No changes due tothe first report

V

102-9

Supply chain30-31pgV

102-50

Reporting period

2pgV102-10Significant changes to the organization and its supply chain8pg

V102-51

Date of most recent report2pg

V102-11

Precautionary Principle or approach

47pg

V

102-52

Reporting cycle2pg

V102-13

Membership of associations

65pg

V

102-53

Contact point for questions regarding the report2pg

V102-14

Statement from senior decision-maker

4pg

V102-54Claims of reporting in accordance with the GRI Standards

2pg

V

102-16

Values, principles, standards, and norms of behavior

5, 41pgV

102-55

GRI content index

59-60pgV

102-56External assurance

63-64pgV

103-1

Explanation of the material topic and its Boundary

49pg

V

103-2

The management approach and its components

15, 20, 39pg

V

103-3

Evaluation of the management approach

None

V

102-17

Mechanisms for advice and concerns about ethics

42pg

102-18Governance structure

40, 45pg

102-20Executive-level responsibility for economic, environmental, andsocial topics

40pg

102-22Composition of the highest governance body and its committees

45-46pg102-23Chair of the highest governance body45pg

102-30Effectiveness of risk management processes

47pg

102-32Highest governance body's role in sustainability reporting

40, 45pg

102-33

Communicating critical concerns

45pg

102-34Nature and total number of critical concerns

46pg

102-40

List of stakeholder groups

48pg

V

102-41

Collective bargaining agreements

65pg

V

102-42

Identifying and selecting stakeholders

48pg

V

V

60
SK shieldus
2022 Sustainability Report

GRI■ Economic (GRI 200)

■ Social (GRI 400)

Code

Description

SK shieldus' response Verification

Code

Description

SK shieldus' response Verification

201-01

Direct economic value generated and distributed

5, 51pg

401-1

New employee hires and employee turnover

55pg

401-2

Benefits provided to full-time employees that are not provided to36-37pg
temporary or part-time employees

V

Factsheet

401-3

Parental leave

37, 55pg

V

Appendix403-1

Occupational health and safety management system

32pg

V

403-2

Hazard identification, risk assessment, and incident investigation 33pg

V

403-3

Occupational health services

34pg

V

403-4

Worker participation, consultation, and communication on
occupational health and safety

32, 56pg

V

403-5

Worker training on occupational health and safety

34, 56pg

V403-6

Promotion of worker health

34pg

V

403-7

Prevention and mitigation of occupational health and safety
impacts directly linked by business relationships

34pg

V

403-8

Workers covered by an occupational health and safety
management system

33pg

V

403-9

Work-related injuries

56pg

V

403-10Work-related ill health

56pg

V

404-1

Average hours of training per year per employee

53pg

V

404-3

Percentage of employees receiving regular performance andcareer development reviews

56pg

V

405-1

Diversity of governance bodies and employees

54, 57pg405-2

Ratio of basic salary and remuneration of women to men

55pg

412-2

Employee training on human rights policies or procedures

53pg

418-1

Substantiated complaints concerning breaches of customer
privacy and losses of customer data

56pg

About SK shieldus
ESG Strategy
Sustainable Fundamentals

GRI
SASB
UN SDGs-Related Activities
Independent Assurance Statement
Association Membership & Awards■ Environmental (GRI 300)
Code

Description

SK shieldus' response Verification

302-1

Energy consumption within the organization

52pg

V

302-3

Energy intensity

52pg

V

305-1

Direct (Scope 1) GHG emissions

17, 52pg

V

305-2

Energy indirect (Scope 2) GHG emissions

17, 52pg

V

305-4

GHG emissions intensity

52pg

V

V

61
SK shieldus
2022 Sustainability Report

SASB
Software & IT Services

About SK shieldus
ESG Strategy
Sustainable Fundamentals
Factsheet
Appendix
GRI
SASB
UN SDGs-Related Activities
Independent Assurance Statement
Association Membership & Awards

SASB Topic

Code

Category

Description

SK shieldus’ response

Environmental Impact of Hardware
Infrastructure

TC-SI-130a.1

Quantitative

Total energy emissions

52pg

TC-SI-220a.1

Qualitative

Description of policies and practices relating to behavioral advertising and user privacy

27-29, 56pg

TC-SI-220a.3

Quantitative

Total amount of monetary losses as a result of legal proceedings associated with user privacy

56pg

TC-SI-230a.1

Quantitative

Number of data breaches

29, 56pg

TC-SI-230a.1

Quantitative

Number of users harmed

56pg

TC-SI-230a.2

Qualitative

Description of approach to identifying and addressing data security risks, including use of third-party
cybersecurity standards

28-29pg

TC-SI-330a.3

Quantitative

Percentage of gender and racial/ethnic group representation for technical workers

54pg

TC-SI-330a.3

Quantitative

Percentage of gender and racial/ethnic group representation for all other employees

54pg

Data Privacy & Freedom of Expression

Data Security

Recruiting employees, managing
employees, and inclusion

62
SK shieldus
2022 Sustainability Report

About SK shieldus
ESG Strategy
Sustainable Fundamentals
Factsheet
Appendix
GRI
SASB
UN SDGs-Related Activities
Independent Assurance Statement
Association Membership & Awards

UN SDGs-Related Activities
UN SDGs

Detailed activities

Page

Goal 3
Good health andwell-being- Active implementation of work-family balance systems such as parental leave and reduction of working hours during pregnancy and childcare- Designating ‘Happy Comma Day’ encouraging the use of leave for employees to have enough rest and time with family

37pg

Goal 4
Quality education- Cultivation and recruitment of a total of 124 security experts through the 2nd session of the Digital-related Core Talent Training Course (cloud converged security, data security) of the Ministry of
Employment and Labor- Offering of information security know-hows to around 50 students through industry-university cooperation with major universities including Seoul Women’s University and recruitment of 10 ofthem as our employees in 2021
- Plan to hire 45 talents by operating a 6-month recruitment-linked program with the Korea Information Technology Research Institute (KITRI)

24, 35pg

Goal 5
Gender equality- Two female directors (29%) out of all directors, and two females out of four non-executive directors in the BOD

45, 57pg

Goal 7
Affordable and clean
energy- Establishment of a plan to convert emergency dispatch vehicles and motorcycles into electric and hydrogen vehicles to reduce CO2 emission- SUMiTS FM contributes to energy saving by monitoring and remotely controlling heating, cooling, and lighting in buildings and by automatically switching to power saving mode when inactive.
- Improvement of energy efficiency by optimizing machinery operation in buildings, installing LED lights, and automatically turning off lights- Promotion of conversion of business vehicles into electric vehicles since 2021 to reduce Scope 1 emissions and completion of converting 20 patrol cars and 15 motorcycles into electric vehicles

16-18pg

Goal 8Decent work andeconomic growth- Ratio of male to female base salary in 2021: 92.1%

55pg

Goal 10
Reduced inequalities- Set the expansion of employment of the disabled and female talent and establishment of human rights guarantee procedures for foreign employees as a mid- to long-term task
- Establishment of the hiring principle which does not discriminate against academic background, gender, physical condition, and social status to provide equal opportunities; and highemployment rate of high school graduates and vocational college graduates shown by real statistics- Increasing the proportion of employees with disabilities by promoting the establishment of standard workplaces for the disabled.

35, 38, 54pg

Goal 11
Sustainable cities andcommunities- 3R (Reduce, Reuse, Recycle) campaign execution that encourages separate waste disposal as well as the use of personal tumbler and recycled paper- Traffic guidance campaign once a week in time for school attendance by signing an agreement with an elementary school near the head office building

19, 22pg

Goal 12
Responsible consumption
and production- Efficient management of recovered equipment and materials from customers at the end of security service- Change of product packaging material to eco-friendly materials since 2018. In 2021, replacement of PE foam-based IP camera packaging material with air cells, and reduction of package volume
and have waste disposal by applying NVR packaging material only to corner cover.

19pg

Goal 13
Climate action- Declaration of Net Zero 2040 vision and GHG reduction goals and strategy in accordance with global climate change response

18pg

Goal 16
Peace, justice andstrong institutions- Hiring principle that does not discriminate against academic background, gender, physical condition, and social status to provide equal opportunities- Establishment of a practice guide that prohibits discriminatory treatment as an ethical behavior toward colleagues- Compliance check on subcontract transactions and security business related legal risks based on the compliance control criteria- Establishment of the compliance and ethics regulation stipulating anti-corruption, fair job performance, and prohibition of unfair purchasing practices. Distribution of ethical behavior guides forcustomers, the company, suppliers, colleagues, and daily life. Annual ethics and compliance training, and survey on ethical management- Receiving a consent form from suppliers on business ethics and transparent transaction, including no gift on national holidays and operation of a reporting center in case of receiving gifts

31, 35,41-43pg

63
SK shieldus
2022 Sustainability Report

Independent Assurance Statement
To readers of SK shieldus sustainability Report 2022

About SK shieldus
ESG Strategy

Introduction

KMR's Approach

Sustainable Fundamentals

Korea Management Registrar (KMR) was commissioned by SK shieldus to conduct an independent
assurance of its sustainability Report 2022 (the “Report”). The data and its presentation in the Report isthe sole responsibility of the management of SK shieldus. KMR’s responsibility is to perform an assurance
engagement as agreed upon in our agreement with SK shieldus and issue an assurance statement.

To perform an assurance engagement within an agreed scope of assessment using the standards
outlined above, our Assurance Team undertook the following activities as part of the engagement:

Factsheet
Appendix
GRI
SASB
UN SDGs-Related Activities
Independent Assurance Statement
Association Membership & Awards

Scope and Standards
SK shieldus described its sustainability performance and activities in the Report. Our Assurance Team
carried out an assurance engagement in accordance with the AA1000AS v3 and KMR’s assurance
standard SRV1000. We are providing a Type 2, moderate level assurance. We evaluated the adherence
to the AA1000AP (2018) principles of inclusivity, materiality, responsiveness and impact, and thereliability of the information and data provided using the Global Reporting Initiative (GRI) Index provided
below. The opinion expressed in the Assurance Statement has been formed at the materiality of theprofessional judgment of our Assurance Team.
Confirmation that the Report was prepared in accordance with the Core Options of the GRI standards
was included in the scope of the assurance. We have reviewed the topic-specific disclosures ofstandards which were identified in the materiality assessment process.
■G RI Sustainability Reporting Standards■ Universal standards■ Topic specific standards- Management approach of Topic Specific Standards- GRI 302: Energy- GRI 305: Emissions- GRI 401: Employment- GRI 403: Occupational Health and Safety- GRI 404: Training and Education
As for the reporting boundary, the engagement excludes the data and information of SK shieldus’
partners, suppliers and any third parties.

■ reviewed the overall Report;■ reviewed materiality assessment methodology and the assessment report;■ evaluated sustainability strategies, performance data management system, and processes;■ interviewed people in charge of preparing the Report;■ reviewed the reliability of the Report's performance data and conducted data sampling;■ assessed the reliability of information using independent external sources such as Financial
Supervisory Service’s DART and public databases.

Limitations and Recommendations
KMR’s assurance engagement is based on the assumption that the data and information provided by
SK shieldus to us as part of our review are provided in good faith. Limited depth of evidence gathering
including inquiry and analytical procedures and limited sampling at lower levels in the organization
were applied. To address this, we referred to independent external sources such as DART and National
Greenhouse Gas Management System (NGMS) and public databases to challenge the quality andreliability of the information provided.

Conclusion and Opinion
Based on the document reviews and interviews, we had several discussions with SK shieldus on
the revision of the Report. We reviewed the Report’s final version in order to make sure that ourrecommendations for improvement and revision have been reflected. Based on the work performed,
it is our opinion that the Report applied the Core Option of the GRI Standards. Nothing comes toour attention to suggest that the Report was not prepared in accordance with the AA1000AP (2018)
principles.

64
SK shieldus
2022 Sustainability Report

About SK shieldus
ESG Strategy
Sustainable Fundamentals

Independent Assurance Statement
Inclusivity
SK shieldus has developed and maintained different stakeholder communication channels at all levels
to announce and fulfill its responsibilities to the stakeholders. Nothing comes to our attention to suggestthat there is a key stakeholder group left out in the process. The organization makes efforts to properlyreflect opinions and expectations into its strategies.

Factsheet
Appendix
GRI
SASB
UN SDGs-Related Activities
Independent Assurance Statement
Association Membership & Awards

Competence and Independence
KMR maintains a comprehensive system of quality control including documented policies andprocedures in accordance with ISO/IEC 17021·2015 - Requirements for bodies providing audit andcertification of management systems. This engagement was carried out by an independent team ofsustainability assurance professionals. KMR has no other contract with SK shieldus and did not provide
any services to SK shieldus that could compromise the independence of our work.

Materiality
SK shieldus has a unique materiality assessment process to decide the impact of issues identified on its
sustainability performance. We have not found any material topics left out in the process.

July 2022 Seoul, Korea

ResponsivenessSK shieldus prioritized material issues to provide a comprehensive, balanced report of performance,
responses, and future plans regarding them. We did not find anything to suggest that data andinformation disclosed in the Report do not give a fair representation of SK shieldus actions.
ImpactSK shieldus identifies and monitors the direct and indirect impacts of material topics found through themateriality assessment, and quantifies such impacts as much as possible.

Reliability of Specific Sustainability Performance Information
In addition to the adherence to AA1000AP (2018) principles, we have assessed the reliability of economic,
environmental, and social performance data related to sustainability performance. We interviewed thein-charge persons and reviewed information on a sampling basis and supporting documents as well
as external sources and public databases to confirm that the disclosed data is reliable. Any intentional
error or misstatement is not noted from the data and information disclosed in the Report.

CEO

65
SK shieldus
2022 Sustainability Report

Association Membership and Awards
Association Membership

About SK shieldus

No.

Content

Association

Date

ESG Strategy

1Regular member of FIRST (first in Korea among private companies)

FIRST

May 10, 2005*

Sustainable Fundamentals

2

Regular member of CTA (first in Asia)

CTA

Jun. 13, 2017*

Factsheet

3

AWS Technology Partnership (Advanced)

AWS

Nov. 2019

Appendix

4

AWS Consulting Partnership (Advanced)

AWS

Apr. 30, 2021

5

Microsoft’s MPL (Managed Partner List)

Azure

Jan. 01, 2022

GRI
SASB
UN SDGs-Related Activities
Independent Assurance Statement
Association Membership & Awards* As of the press release dateAwardsNo.

AwardAwarded by

Date

1

Won the “First Brand Award” for 8 consecutive years

Korean Customer’s Forum2015 ~ 2022

2

Selected in the corporate social contribution sector of the “Korea Crime Prevention Award” four times (the only private security company)

Korean National Police Agency

2016 ~ 2018 / 2020

3

Won the President Prize for the best job creation in Korea

Ministry of Employment and Labor

Aug. 2019 / Jul. 2020

4

Won the 2021 AWS Technology Partner of the YearAWS

May 12, 2021

5

Ranked 1st in the unmanned security service sector of KS-SQI (ADT Caps)

Korean Standards Association

Jul. 01, 2021

6

Won the Seoul Mayor’s Citation in recognition of spreading the culture of sharing

Seoul Metropolitan Government

Dec. 03, 2021

Certification
No.

Certification

Certified by

Date

1

ISO/IEC27001: International Certification on Information security management system

BSI Korea

Jul. 27, 20182

ISO45001:2018: International Certification on Occupational health and safety management systems

LRQA Korea

Nov. 03, 20193

AWS Security Competency

AWS

May 21, 2020

4

ISMS-P (Personal Information & Information Security Management System)

Korea Internet & Security Agency

Jul. 29, 2020

5

Designated as a Information Security Service Provider for Information Infrastructure

Ministry of Science and ICTMar. 09, 2021

6

Designated as a Professional Security Control Company

Ministry of Science and ICTMar. 09, 2021

7

Designated as a Personal Information Impact Assessment Agency

Personal Information Protection Commission

Mar. 19, 2021