2022

Pulmuone
Integrated Report

Pulmuone
Integrated ReportAbout this Report
This report is a comprehensive compilation of Pulmuone’s financial performance and CSR (Corporate Social Responsibilities) activities during the reporting
period. We have strived to report our value-creating activities, financial and non-financial outcomes, and performances in each area of ESG (Environmental,
Social, Governance) management from a balanced perspective in terms of the company’s social responsibilities related to stakeholders including customers,
shareholders, local communities, suppliers, and company members.

Principles and Standards
This report was prepared based on the framework of the International Integrated

only significant activities and progress up to June 2023 are included. Pulmuone Corporate

Reporting Council (IIRC) in accordance with the Global Reporting Initiative (GRI)

has published this report every year since 2006.

Standards. In addition, it covers Pulmuone’s business activities by the United Nations
Sustainable Development Goals (UN SDGs), indices pursuant to the recommendationof TCFD (Task Force on Climate-Related Financial Disclosures), the global disclosure
standards for non-financial reporting requirements, and SASB (Sustainability
Accounting Standards Board) standards. The financial data in this report is presented
in accordance with the standards of the Korean version of the International Financial
Reporting Standards (K-IFRS) for consolidated financial statements.

Third-party Assurance of the Report
In order to ensure that the contents of the report are objective, fair, and reliable, we
commissioned the KMR (Korea Management Registrar) to provide the assurance ofthe reliability of the report. The assurance statement can be found on Page 110 of thisreport.

Reporting Scope and Targets
The scope of this report includes Pulmuone Corporate and its 31 consolidated
subsidiaries, including both domestic and overseas business operations. Any
discrepancies in the scope have been annotated.

Reporting Period and Cycle
This report covers data for the fiscal year from January 1, 2022 to December 31, 2022.
Key quantitative data is presented to show the trends over the past three years,
including the previous two years. In order to provide information in a timely manner,※ Contact Information
For any questions or feedback you may have regarding this report, please contact
us using the contact information below.
- E-mail : esg@pulmuone.com- Tel : +82.2.2040.4400- (06367) ESG Management Team, TISO Office, Pulmuone, 280, Gwangpyeong-ro,Gangnam-gu, Seoul

Contents

Interactive User Guide

The 2022 Pulmuone Integrated Report has been
prepared in an interactive PDF format to make it

About this Report

02

part.3

Pulmuone with ESG

Special: Digital Transformation(DX)more accessible for stakeholders. Click the icons to

Pulmuone Spirit & ESG Management

navigate and search for details within the report,

Environmental Management

open linked webpages, watch videos, and more.

Social Responsibility Management

part.1
Contents: Go to the Contents pageCEO Message

Previous Page

Pulmuone Corporate

About Pulmuone
06
08
18

Materiality Assessment

GovernanceRisk Management
Corporate Ethics

34
36
41
52
69
76
79

Next Page
Searchpart.4

Link: Go to an external page(e.g., Pulmuone Corporate website)
Additional Info:
View additional information (e.g., notes)
Video: Watch related videos

Performance
Fact Book

part.22022 Key Topic

Topic 1. Sustainable Foods
Topic 2. Human Rights Management
Topic 3. Safety and Health in the Workplace

22
25
29

Appendix86102

To Create Healthy Tomorrow for the People and Planet with Wholesome Foods•CEO Message•Pulmuone Corporate- About Pulmuone
Company Profile- Meaning behind Pulmuone- 2022 Financial Status

Part 1

About Pulmuone- Mission & Value Statements- CSR in the Articles of Incorporation
CSR Management
Principles of Wholesome Foods- Path of Growth- Global Network- Key Areas of Business•Selection of Material Topics- Materiality Assessment

2022 Pulmuone Integrated Report

About Pulmuonee a e2022 Key TopicP m one or orate

ater a t

Pulmuone with ESG

Appendixe mentCEO Message

Pulmuone, paving
the way for asustainable future

Message
From the CEO

For Me,For the Planet062022 Pulmuone Integrated Report

About Pulmuonee a e2022 Key TopicP m one or orate

ater a t

Pulmuone with ESG

Appendix07

e mentDear Stakeholders,It gives me great pleasure to present the 2022 Pulmuone Integrated Report.
This is our 16th report since the publication of the first sustainability report in 2006. We have highlighted our progress toward achieving both financial and non-financial goals, andprovided clear insight into our ESG performance for our customers, shareholders, local communities, suppliers, and employees.
The report is divided into three sections: a corporate introduction to Pulmuone, “2022 Key Topic,” and “Pulmuone with ESG.” In the “2022 Key Topic” section, we covered three areas:“Sustainable Food,” “Respect for Human Rights,” and “Safe and Healthy Workplace.” Pulmuone's DX (digital transformation) strategy and commitments to ESG value creation arepresented in the "Pulmuone with ESG" section. I hope this integrated report provides a comprehensive perspective on what we have achieved in the past year and what lies ahead as wemove toward a sustainable future.
Dear Stakeholders,
Despite the global economic downturn, we achieved KRW 2.8383 trillion in sales and continued to grow in major global markets such as the U.S., China, and Japan, as well as in thedomestic market, while overcoming challenges and globally expanding our ESG philosophy. In recognition of our efforts, we were awarded an A rating for ESG by MSCI (Morgan Stanley
Capital International) and named the “Most Respected Company in Korea” for the 17th consecutive year. We believe this is the valuable outcome of our commitment to both social
responsibility and fiduciary duties as a corporate citizen in the global community.
Dear Stakeholders,
We understand that this year will be another challenging one for us, but we will strive to create the momentum for sustainable growth to achieve profitable sales of KRW 3 trillion for the
first time based on our new value system and articles of incorporation. Together with restructuring unprofitable businesses, products, channels, and services, we will dramatically expand
the supply chain and infrastructure, and drive innovation to further enhance the plant-based product portfolio and the animal welfare initiatives, contributing to the profitable sales growth
as our top priority. In the global markets, we aim to turn around our businesses in the U.S., China, and Japan based on our investment master plan, while expanding our presence inSoutheast Asia, Canada, and Europe.
To remain agile and adapt to digital transformation (DX) and Industry 4.0, we are driving digital and process innovation, and leading the transformation to open a new era of the global
food industry.
By focusing on ESG under the mission of "creating healthy tomorrow for the people and planet with wholesome foods," we will continue to work toward becoming the No. 1 wholesome
food brand and global ESG leader.
We would appreciate your continued interest and support as we pave the way toward a sustainable future for people around the world.
Thank you.

July 2023
Lee Hyo-yul
General CEO of Pulmuone Corporate

About Pulmuone

2022 Pulmuone Integrated Reporte a e2022 Key TopicP m one or orate

ater a t

Pulmuone with ESG

Appendix08

e mentPulmuone Corporate
About Pulmuone

Pulmuone is a leading Korean provider of fresh wholesome foods, especially tofu andbeverages, and operates sustainable food businesses in a wide range of fields, including
healthy functional food, school meal service, concession facilities, eco-friendly food
distribution, spring drinking water, and fermented dairy products. Starting from its
establishment in the U.S. in 1991, as well as in Korea, Pulmuone has advanced to otheroverseas markets, including China in 2010, Japan in 2014, and Vietnam in 2019.

Company name
Headquarter location
Business site
Date of foundation
Number ofsubsidiaries
CEO
Win-win growth index
Key business locations
WebsiteKorean : ㈜풀무원English : Pulmuone Corporate730-27, Samyang-ro, Daeso-myeon,
Eumseong-gun, Chungcheongbuk-do
280, Gwangpyeong-ro, Gangnam-gu, Seoul
May 31, 1984
31 companies(0 listed company, 31 unlistedcompanies / based on the 2022 Business Report)* Excluding the holding company, 100% owned by
Pulmuone Food and Culture Co. Ltd. as of 2022
Established Pulmuone Together as a subsidiary

Lee Hyo-yul“Excellent”(Pulmuone Foods)
South Korea, U.S., Japan, China, Vietnam
www.pulmuone.co.kr

Meaning behind Pulmuone

2022 Financial Status“Pulmu” is a tool that blows air into a forge in a blacksmith’s workshop. Aged tools are given new life as they are heated(as of December 31, 2022, consolidated financial statement)

and forged during the process. The late Director Won Kyung-sun came up with the name “Pulmuone,” in the hope that his

Total assets : KRW 2,049,217,755,236

farm could breathe new lives into people, just like “Pulmu.” Pulmuone blows the bellows that take care not only of us andCredit ratings :our families, but also of the health of our planet.
SymbolThe symbol of Pulmuone visualizes a harmonious life ofpeople and nature that represents the company’s aim to“create healthy tomorrow for the people and planet withwholesome foods.” The rhythmic curve with slightly
raised ends symbolizes a healthy smile of nature andpeople, as well as “One Big Bowl Full of Nature.”- Pulmuone Corporate : Korea Investors Service BBB+ /NICE Investors Service BBB+

Logotype
Flexible, friendly, natural, and pleasant Pulmuone. The
letter shape with serifs gives the feeling of refined,
friendly handwriting. It expresses Pulmuone’s wish totake a step closer to its customers to deliver what theywant from their perspectives.

- Pulmuone Foods : Korea Investors Service A- /NICE Investors Service ASales : KRW 2,838,303,860,365
Operating profit : KRW 26,331,500,743
Net profit of current period : KRW -36,967,492,015
R&D investment : KRW 27.6 billion (1.00% of sales)2022 Pulmuone Integrated Report

About Pulmuonee a e2022 Key TopicP m one or orate

ater a t

Pulmuone with ESG

Appendixe mentMission & Value Statements
Based on our corporate spirit,

Pulmuone’s Value System“Love for Our Neighbors, Respect

Pulmuone Spirit

for Life,” in May 2022, Pulmuone

Love for Our Neighbors, Respect for Lifeestablished a new corporate value
statement that defines our mission,

Missioncore strategies, and core values.

To Create Healthy Tomorrow for the People andPlanet with Wholesome Foods

Our mission is “To Create Healthy
Tomorrow for the People andPlanet with Wholesome Foods.”
We promote “Plant Forward,”

Plant
Forward“A n i m a l W e l f a r e ,” “ H e a l t h yExperience,” and “Eco-Caring”

Animal
WelfareHealthy
Experience

EcoCaringas our core strategies to achieve
our mission. In order to put ourCore Strategies

strategies into practice, everyone
at Pulmuone values "Trust" tokeep promises to customers,“Passion” to continue to challenge
and innovate, and "Excellence" tocreate differentiated results.

Trust

PassionExcellence

Keeping
promisesto customers

Continuing tochallenge andinnovate

Creating
differentiatedresults

Core Values09About Pulmuone

2022 Pulmuone Integrated Reporte a e2022 Key TopicP m one or orate

Pulmuone with ESG

ater a t

10

Appendixe ment

CSR in the Articles of Incorporation
In March 2019, Pulmuone specified its economic, social,and environmental values in its Articles of Incorporation,

From the Pulmuone Articles of Incorporation

which is unprecedented for a for-profit company. This
serves as the foundation for a corporate commitmentthat will not change over time or with a change of CEO. Inet t e ea t an

a

ne

First
of o r c tomer a o r to

r or t anroe t e e t roct anMarch 2022, the Preamble to the Articles of Incorporation
was updated to include the company’s founding
philosophy and mission, customer value creation, andways of working in a narrative format, and to define theSeconde rotect man r t an romote er t n t e ork ace F rt ermore
e ro e e a o ort n t e an n e t n an
ort t e ro t of o r em o ee

value orientation for key stakeholder groups: customers,
employees, suppliers, local communities, shareholders,e romote fa r tra e an et ca

Third
ract ce an m t a ro t

t o r

er an

artnerand the environment.
※ Click here to view the Pulmuone Articles of Incorporatione ea

oc a contr

Fourtht on act t e toort o r oca comm n t eFifthe en ance o r cor orate a e an ro eta na e enef t to o rt ro
rat ona an tran arent
ne mana ement
Sixth
e en re t at o r roce e an o tcome are e

are o erne to rotect t e en ronmenter ce

2022 Pulmuone Integrated Report

About Pulmuonee a e2022 Key TopicP m one or orate

Pulmuone’s TISO Charter
We pledge to adhere to the following principles to create economic, social and environmental values.
Trusted by customers
We innovate corporate business management by pursuing the health and happiness of customers as our top priority.
We listen to our customers to provide products and services that enhance their satisfaction.
Appealing to shareholders
We oppose all forms of corruption and disclose the business management information
in a transparent manner under reasonable governance.
We comply with laws and regulations and increase our corporate value to provide shareholders with sustainable benefits.
Loved by local communities
We use resources efficiently and protect the environment throughout the entire process from sourcing to manufacturing,sales and disposal. We take the initiative in philanthropic activities for the sustainable growth of local communities.
Working with suppliers
We trade with suppliers on an equal footing in a fair manner as our companion that jointly pursues LOHAS values.
We support suppliers to strengthen their competitiveness and cooperate with them for mutual growth.
Keeping our employees happy
We protect human rights, respect diversity, and provide fair opportunities to support the growth of employees.
We ensure the safety and health of our employees and support them to improve work-life balance.

ater a t

Pulmuone with ESG
e mentAppendix11

2022 Pulmuone Integrated Report

About Pulmuonee a e2022 Key TopicP m one or orate

ater a t

Pulmuone with ESG

Appendixe mentPrinciples of Wholesome Foods
Pulmuone conforms to its own standards for wholesome foods for the health and happiness of our families,
which are more stringent than the relevant government regulations. In addition, we provide transparent information on all processes from manufacturing to distribution,
so that anyone can understand what ingredients and methods were used in the production stage.

Principles of Wholesome Foods for Me and the Planet
1. Nutrition Balance
We provide products with a balanced nutrition and diet.
2. Eco-Caring
We comply with eco-friendly design of manufacturing processes and facilities,
as well as packaging principles.
3. Clean LabelWe ensure strict compliance and transparency, observing “Clean Label” standard,
when it comes to ingredients and additives.

With the “Clean Label,” Pulmuone takes a step forward in the wholesome food industry.
It is a standard for ingredients and additives we use in our products, and food companies
around the world are trying to apply the system to disclose and to minimize additives
and processing. We are committed to leading the wholesome food industry based on thefollowing principles.
First, we use only ingredients and additives carefully selected based on rigorous principles
and standards.
Strict internal standards along with the Pulmuone NO-NO List have been established to prevent theuse of 115 types of harmful substances including synthetic preservatives, synthetic sweeteners,
synthetic antioxidants, colorants, and bleaching agents.
Second, we provide full disclosure of our ingredients and additives.
The ingredients and additives listed on product labels are often compressed. We understand ourobligation to provide correct information about the food we supply, and our customers have the rightto make informed choices, so we have established a system* that allows consumers to check thedetails of ingredients and additives used in our products on our website.
* Scheduled to launch in Q3 2023.

12

About Pulmuone

2022 Pulmuone Integrated Reporte a e2022 Key TopicP m one or orate

Pulmuone with ESG

ater a t

13

Appendixe mentPath of Growth
In 2022, Pulmuone reached annual sales of more than KRW 2,838.3 billion (consolidated) with its products and services that embody the values of "Safety," "Trust," and "Health" in line with
our principles of wholesome food.
Focusing on door-to-door salesof healthy foodAdvancing distribution system that
focuses on food

Diversifying through joint ventures and M&A

CAGR

CAGR

CAGR

CAGR

52%

24%

14%

10%

Expanding to businesses overseas and taking a leap forward as a global company

ae
KRW

Foo man fact r nae
KRW 1,940 billion

er ce

ae
KRW 1,600 billion

t on

t er

2014

2016

t
n

c

co
r

a
o
a
re

re

Pe
kn

co
a

e

ca
e

a

F

n

ce
er

n

on
e
on
e

m

m
P

2018

2020

2021

2022

or o tat eem
an rofe
a
Fo
em on
n
a
e
te ent
m
et
na
m
Pr
oc
ne
am
on
e
o
a
nc
or
e
or
P
at
e
P a
m
on
a
e ar
n
at of
ta c e
er
na
ef
oo k
an
ra a
n

2013

an

2012

an
on
eP

e
m ne
ar e
ke
t
re
Pa
rk

nt
o
c

re

to
ra
n

to
ne

m
P
re
c

2009 2011

an
ce

a

eo
n

at
er
on
e

n

e
t
n

2008
re
co o
m
an n
F
n
t
e

2005

at
to

2004

oo

to
a
co o
m
an n

to
ne

t

re

2003
m
er
ce

1995

Fo
o

1991

(2008)(2003)

ran

1984 1985 1986Farmfreer mea arFor c ketnt for ceraPero m c
m
a
on
Fo
ct
eo
n
r
e
an
P
cf
m
oo
ta
on
rte
ee
to
n
f
Pu P
f m
m
lm ulman oo euo ufa
to ne onect
fo org en
rm an zr
P ic f yme ne nm oo foon d m ode F er an
FoP
o ge d
m o d
n
e
on
a
e
at
er
ar
n
t
P
e
m
on
te
e
re
P
en
m
on
ce
eo
n
t
e
m to
ar ck
ke
t
P
m
on
o
fre
eF
oo
an

1982

ae
(2011)KRW 900 billionae
KRW 550 billion(1992)

1981(2018)(2013)ae
KRW 1,430 billionae
KRW 100 billion

billion(2022)(2015)

c

tr

t

enera

re
en

Foo

2,838.3

ae
KRW 2,272 billion

oor to oor a e

2022 Pulmuone Integrated Report

About Pulmuonee a e2022 Key TopicP m one or orate

ater a t

Pulmuone with ESG

Appendix

14

e mentGlobal Network
Since its initial entry into the global market with the establishment of a U.S. subsidiary in 1991, Pulmuone has established overseas subsidiaries in China, Japan, and Vietnam, expanding
its global presence. Based on these global outposts, we set the principles and standards of wholesome foods, leading the paradigm of the food industry, and driving innovation to ensurethat our plant-based protein and HMR (Home Meal Replacement) businesses lead to meaningful growth in demand. We are localizing our strategies by analyzing the food culture of eachcountry in the alternative meat sector.

SOUTH Pulmuone operates in the sectors of fresh food and
KOREA beverages, health functional foods, food service andconcession, sustainable food distribution, drinking water,
and fermented dairy product. Our major domestic businesssites include the following:
Pulmuone Business Sites

Pulmuone
Foods

Eumsung Tofu Plant
PPEC Chuncheon
PPEC Uiryeong
PPEC Eumsung Fresh
NoodlePPEC Eumsung Sprout
PPEC Global Kimchi
Sinseon Natto
Pulmuone Kibun

Logistics

Subcategory
Tofu
Ice/tofu
Tofu
Fresh noodle,
ramen, RM
Vegetables
KimchiNattoFish cakeFoods and beverages(green juices)
Logistics
Fresh foods, beverages
Salad

OthersManagement ofagricultural products

Production

Health functional foodPulmuone Waters

Production

Beverages

Danone Pulmuone

Production,
R&D

Fermented milk

Pulmuone Together

Production

Ice packs, etc.

LOHAS Academy

Others

Education

Corporate Technology Office
Museum Kimchigan

R&D
OthersR&D
MuseumGAP Center

Others

Production

Pulmuone Green Juice
Exofresh Logistics
Foodmerce
PTA Agricultural Union
Corporation

Pulmuone
Health &LivingPulmuone
WatersDanonePulmuone
PulmuoneFNC
LOHAS
AcademyCategory

Pulmuone Health & Living

Pulmuone Corporate Technology Office
The Corporate Technology Office develops fresh and safe new products in compliance with the company’s principleof wholesome foods, using safe ingredients and healthy materials for balanced nutrition. In addition, the office
introduces advanced food processing technologies, explores natural ingredients, and plays the role of maintaining
food safety and quality control to achieve the best quality consumer satisfaction both at home and abroad.

※ Excluding office Sites

LOHAS Academy
LOHAS Academy is a place for learning where one can participate in the habit training program to learn andpractice the LOHAS values. It is a healthy and educational place in nature that promotes sustainable growth, and it
helps employees learn and understand the company’s mission. The training course focuses on five habits (dietary,body, mind, environmental, and learning habits) to promote Pulmuone’s mission, core strategy, and values.

Museum Kimchigan
Pulmuone acquired “Museum Kimchigan,” the first kimchi museum, in 1987 to promote one of the most popular
traditional Korean foods to both Koreans and foreigners by providing lively interactive exhibitions and various
experiential programs.

2022 Pulmuone Integrated Report

About Pulmuone
e a e

U.S.

Pulmuone established a local subsidiary, Pulmuone USA, Inc., in Los
Angeles in 1991 and acquired Nasoya, the No. 1 tofu brand in the U.S.,

2022 Key TopicP m one or orate

Chinaater a t

Pulmuone with ESG

Appendix15

e mentIn 2010, Pulmuone Food was founded in Beijing and Shanghai followed by
Pulmuone Health & Living in Chongqing in 2013, expanding its presencefrom VitaSoy in 2016 to step up as a leading tofu brand in North America.

in China. In 2022, KRW 30 billion was invested to build Beijing Plant #2,

Since then, the business has grown through the launch of Plantspired, awhich is 1.5 times the size of Beijing Plant #1. Equipped with eco-friendly

brand specializing in plant-based foods, and it has entered all 200 stores

facilities and cutting-edge processes, the new plant has increased annualof WaBa Grill, an American wellness restaurant chain. It is also expanding

tofu production by eight times. The second plant produces packaged andits business in the refrigerated dumpling, Asian meal kit, and sauce

processed tofu, as well as plant-based protein drinks, while the first plant

markets.

is dedicated exclusively to fresh HMR, accelerating the expansion of the
fresh convenience food market in China.

Japan

Established in 2014 by acquiring Japan's No. 1 and No. 4 tofu companies,
Asahico is Pulmuone's local subsidiary in Japan, and targeting the plant-

Vietnam

Following the United States, China, and Japan, Pulmuone selected
Vietnam as its base for overseas expansion and completed thebased protein market by combining the technologies from both countries.

incorporation of a local subsidiary in December 2019. Currently, Pulmuone

In November 2020, the newly launched "Tofu Bar" was named "CVS

Zone is in operation to sell products to large distribution channels in(Convenience Store) Best Hit Product of 2021"* just over a year after its

Vietnam, including Lotte Mart, and plans to establish itself as a premium

launch. Tofu Bar is a stick-shaped tofu containing 2.7 times more protein

food brand in the market.

than Kinugoshi tofu.** By identifying local consumer trends for healthysnacks, the company has sold over 10 million units in just over a year
since its launch, despite being sold exclusively in certain stores. Asahicoplans to add two more lines at local production facilities and expand sales
channels to promote plant-based foods, including tofu bars.
* Source: Nikkei Trend, Japan's leading business magazine / ** Tofu cut after hardening the high-concentration soymilk

2022 Pulmuone Integrated Report

About Pulmuonee a e2022 Key TopicP m one or orate

ater a t

Pulmuone with ESG

Appendixe mentBusinesses & Brands
Pulmuone's business, starting with wholesome food products, is now expanding beyond dietary habits and culture to the lifestyle and well-being area.
Classification

Mata Brand

Corporate Information

Business Models

Pulmuone
Foods

Pulmuone’s representative company specializingin the fresh food and beverage business

Manufactures and sells tofu, vegetables, raw
noodles and frozen rice, provides logistics services
for cold, frozen and room- temperature storage, anddelivers personalized diet subscription service

Pulmuone
Health &LivingA business that provides solutions
for customers' healthy lives andsustainable values

Health functional food, skin care products

PulmuoneFood &
CultureA business that provides healthy experiences ofdaily life through sustainable healthy eating andrealization of diverse and happy cultural spaces

Provides food services at school, expressway rest
areas and concession facilities, and healthy daily life
experiences in cultural spaces

Pulmuone
WatersNo. 1 in the global drinking water market, adrinking water company established by a joint
venture between Nestle Waters and Pulmuone

Manufactures and sells drinking water products,
sells deep-sea mineral water and soft drinks

Pulmuone
Green Juice

A manufacturer and seller of natural green
vegetable juice that delivers nutrients from fresh
fruits and vegetables to customers

Manufactures and sells functional beverages

Master, Product Brand, Store Brand

BI LOGO

16

2022 Pulmuone Integrated Report

About Pulmuone
CEO Message

Classification

Mata Brand

2022 Key Topic

Pulmuone Corporate

Corporate Information

Business Models

DanonePulmuoneA specialized yogurt company established by thejoint venture between Danone, the No. 1 company
in the field of fermented dairy products, andPulmuone

Manufactures and sells fermented dairy products

Pulmuone
Foodmerce

A company specializing in providing food brandtailor-made to customers’ life cycles and total foodmaterials

Supplies food ingredients to meal services,
restaurants and raw material markets

USA
Pulmuone
U.S.A.

A general food company that produces and sells
tofu, soybean, processed food, pasta, sauce, andready-to-bake products

Manufactures and sells tofu, kimchi, meatalternatives, chilled/frozen pastas, sauces, etc.

Pulmuone
Foods(China)A general food company that retails fresh
refrigerated foods such as soybean foods, noodles,
home meal replacements (HMRs), etc., and roomtemperature health-oriented foods such as
beverages and snacks throughout China

Manufactures and sells various food products
such as noodles, rice cakes, kimchi,
frozen dumpling, tofu, etc.

AsahicoA fresh food specialist company with the best tofu
and fried tofu manufacturing technology in Japan

Manufactures and sells tofu and fried tofu products

Pulmuone with ESG

Appendix

Materiality Assessment

Master, Product Brand, Store Brand

17About Pulmuone

2022 Pulmuone Integrated Reporte a e2022 Key TopicP m one or orate

Pulmuone with ESG

ater a t

18

Appendixe mentMateriality Assessment
In accordance with the principle of materiality provided by GRI (Global Reporting

Material Issue Selection Process

Initiative), a global sustainability disclosure guideline, Pulmuone selects material issues
based on its annual double materiality assessment. The social and environmental impactsof our business operation are considered from an inside-out perspective (customers,

Step 1

Step 2

Step 3

Step 4Creating a pool of
28 issues

Conducting surveys with stakeholders
and relevant organization

Selecting material
issuesSelecting key issues

shareholders, academics and experts, local communities, suppliers, and employees) andthe financial impacts and risks that external factors may have on our business activities
are considered from an outside-in perspective. As a result, three material issues havebeen selected: Sustainable Foods, Human Rights Management, and Safety and Health in
the Workplace. Material Issues have been approved by the Board of Directors.

ISSUE Pool
No.

Issue

Finance

Society/
Environment

Analyze material issues of the previous
Select 10 material issues throughyear and internal/external issues inanalysis of domestic and international
the industry, and benchmark major
guidelines and indicators such as GRI,
domestic and international companies TCFD, and SASB, stakeholder surveys,
and conduct surveys (January 20,
and internal business strategies.
2023 – February 3, 2023).

Page

No.

Issue

15
16
17
18
19
20
21
22
23
24
25
26
27
28

ESG management and win-win growth with suppliers
Anti-corruption, ethics, and compliance
Work environment and organizational culture
Social value creation (e.g., local community, IBM)
Information security and privacy
Biodiversity
Hazardous chemical management
Talent development
Labor-management relationships
Communication with customers
Global competitiveness
Advanced governance (led by the holding company)
Shareholder-friendly management
Talent acquisition and retention

1

Key issue

Sustainable Foods

2224

2
3
4
5
6

Key issue
Key issue
Material issue
Material issue
Material issue

Human rights management
Safety and health in the workplace
Health of customers, quality and safety
Response to climate change
Circular economy

2528
2931
58-60
45-47
4850

7

Material issue

Sustainable supply chain management

6365

8
Material issue
Responsible raw material management
9
Material issue
Digital transformation
10 Material issue
Sustainable packaging
11
Sustainable use of water
12
Corporate-wide financial/non-financial risk management
13 Expertise, transparency, diversity and independence of the BOD
14
Communication of non-financial performance

Analyze material issues of theprevious year and internal/
external issues in the industry, andbenchmark major domestic andinternational companies.

63-64
3435
49
50
76-78
7273
8697

※ Level of impact

Top

FinanceHigh

MediumSelect 3 key issues and report on
details based on top-ranked issues
and corporate-wide strategies.

Society/
Environment

Page
6366
7983
5456
6768
62
51
51
5253
57
61
15
69
75
53

Low

2022 Pulmuone Integrated Report

About Pulmuonee a eMateriality Assessment

P m one or orate

ater a t

Pulmuone with ESG

Appendix19

e mentKey and Material Issues by Stakeholder Group10m act of P m one on eo e an t e en ronment

2022 Key Topic

1

15

16

20

21

18

3

4

5

6

7

8

11

22

23

24

26

14

12

17

Sustainable Foods

customers, suppliers, environment, shareholders, andemployees

2

Human rights management

customers, suppliers, environment, shareholders, andemployees

3

Safety and health in the workplace

suppliers, local community, and shareholders

4

Health of customers, quality and safety

customers, suppliers, and shareholders

5

Response to climate change

customers, environment, and shareholders

6

Circular economy

suppliers, local community, environment, andshareholders

7

Sustainable supply chain management

suppliers and local community

8

Responsible raw material management

customers, suppliers, and shareholders

9

Digital transformation

customers, suppliers, and shareholders

10 Sustainable packaging
18

27

28

m ortance an

2

1

m act on P m one f nance9 13

customers, environment, and shareholders

Part 2

2022 Key Topic•Topic 1. Sustainable Foods•Topic 2. Human Rights Management•Topic 3. Safety and Health in the Workplace2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topico cta na e Foo

Topic 1

Pulmuone with ESG
o c
man

t

ana ement

22

Appendixo cafet anea t n t e

ork ace

Sustainable Foods

Why It Matters
Global sustainable food market forecast
The global sustainable food trend isdriving the growth of the alternative foodand meat substitutes markets.
The share of plant-based meat substitutes is expected to grow to 79% by 2025.

Domestic meat substitute market forecast
In South Korea, the market for plantbased meat substitute for reducing GHG
emissions is expected to grow along withthe expansion of the value consumption
trend as consumers continue their meatoriented consumption.

Efforts to reduce GHG emissions in the foodindustry
FAO (Food and Agriculture Organization of theUnited Nations) * and governments (2050 Carbon
Neutrality and Green Commission) are calling
for the reduction of GHG emissions across the
manufacturing, distribution, and production
systems in the food industry.

Policies & Strategies
Policies on sustainable wholesome food : Pulmuone is committed to creating wholesome foods for the people and theplanet. Based on our corporate spirit, “Love for Our Neighbors, Respect for Life,” we are developing wholesome foods,
going beyond the standards for safe and trusted food to offer sustainable food that is good for our bodies and theenvironment. The goal is to use more plant-based ingredients and, for animal-based ingredients, to increase the use ofcertified (animal welfare, ASC/MSC, etc.) ingredients with sustainable attributes. Plant-based foods provide nutrientsthat support our health and make the planet more sustainable, while improving animal welfare to provide safe animal
products and protect the environment.
Strategies on sustainable foods : Sustainable foods have been introduced to consumers under the Pulmuone Jigusikdan
brand. We are expanding our product offerings with its sub-brands, "Plant-based Jigusikdan," which uses only plant-based
ingredients, and "Animal Welfare Jigusikdan," which uses mainly animal welfare ingredients. In line with the technology
and sustainable food standards, we developed plant-based meat substitutes, tofu noodles, animal welfare nuggets, andsous vide chicken breasts, and expanded the Jigusikdan product lineups to include fried rice, dumplings, tofu noodles, andsauces for rice bowls. The brand focuses on creating nutritious and healthy flavors and textures to appeal to a wide rangeof consumers, from vegans to flexitarians, and the younger generations that sees values in maintaining a healthy diet. Our
specialized healthy menu consisting of Jigusikdan products has been welcomed with great enthusiasm, and we plan toraise awareness and make it more accessible for consumers.

Major progress in 2022 and plans for2023
Goal: increase the share ofsustainable food
- Progress in 2022: 52%- Plan for 2023: 54%

Managing Department& SystemManaging Department

General CEO

CTO (Corporate
Technology Office)P&P Development
1 TeamCorporate Technology Office : Corporate
Technology Office is an R&D center
that develops products in line with
Pulmuone's wholesome food principles
to promote safe and healthy ingredientsand balanced nutrition for consumers.
The office introduces cutting-edge foodprocessing technologies, discovers naturalingredients, and conducts food safety andquality control to deliver the best qualitythat satisfies consumers around the world.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topico cta na e Foo

Pulmuone with ESG
o c
man

t

ana ement

23

Appendixo cafet anea t n t e

ork ace

Attributes & Systems for Sustainable Foods
Sustainable foods are made from sustainable ingredients and processes that promote healthy circulation for the planet and for the people. We are increasing the use of plant-based
ingredients, and for animal-based ingredients, we prioritize those produced in an environment that respects the dignity of animal life. We are committed to providing nutritionally balanced
foods under the Pulmuone Nutrition Standards and to ensuring eco-friendly manufacturing, packaging, and distribution processes. As part of our efforts to promote sustainable foods, we
provide plant-forward foods and animal welfare foods with these attributes.

Sustainable Foods
Plant-Forward Foods

Animal Welfare Foods

Foods made with less animal-based ingredients and more plant-based ingredients

Foods with emphasis on sustainable animal ingredients

Plant-Based Foods

Animal Welfare Foods

Foods made entirely from plant-based ingredients with animal-based ingredientscompletely replaced with plant-based ones. It embodies the vegan concept of
replacing animal-based ingredients with plant-based ones, such as tofu, grains,vegetables, and fruits. It puts emphasis on nutritional value by increasing protein
and reducing carbohydrates through cutting-edge technology.

Foods made from animal welfare-certified ingredients for meat, birds, and eggs.
We are committed to reducing the use of animal-based ingredients that cause ahigh carbon footprint. They include animal welfare-certified raw foods, primaryprocessed foods, and fresh RM products.

Plant-Forware Fresh RM

Sustainable Seafoods

Fresh ready meals made from mostly plant-based ingredients with some animalbased components. Only animal-based sauce and a limited amount of broth areused. All animal-based ingredients are certified for animal welfare.

ASC/MSC certified raw ingredients such as fish and seafood are mainly used.
They include ASC/MSC-certified raw foods, primary processed foods, and fresh
RM products.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topico cta na e Foo

Goals & Progress
Goals
Achieve 60% sustainable foods by 2025

Action Plans
Increase the substitutes for animal-based foods,
expand the global markets and distribution
channels, and secure plant-based food production
facilities at overseas sites (South Korea, U.S.,
China, and Japan).

Progress Monitoring
In June 2022, we set mid-term goals and discussed
detailed action plans in mid-term business strategy
meetings with executives from each business
unit across the company. The progress will bemonitored at an annual mid-term strategy meeting.

Pulmuone with ESG
o c
man

t

ana ement

24

Appendixo cafet anea t n t e

ork ace

Main Programs
Sustainable Foods: Based on the world's leading tofu manufacturing and plant protein R&D technology,
Pulmuone is developing sustainable food strategies and launching sustainable product brands. We arefocusing on expanding high-protein, plant-based food sectors using tofu and gaining competitive edges in the
global market to contribute to the health of consumers and the sustainability of the global environment whilepaving the way for the food market.
Plant-forward Foods: Pulmuone's plant-forward foods are divided into plant-based foods and plant-forward
FRM. Plant-based Foods put emphasis on nutritional values, such as high protein, by replacing animal-based
ingredients with plant-based ones using cutting-edge technology. Plant-forward FRM contains a certain
amount of animal-based sauces and broths without meat pieces in consideration of the dietary practices inSouth Korea.
Animal Welfare Foods: Pulmuone's animal welfare foods are made from animal-based ingredients withsustainable attributes and are divided into Animal Welfare Foods and Sustainable Seafood. They containanimal-based ingredients that are certified for their sustainability and ASC/MSC. Pork, chicken, fish, and eggs
are used as animal-based ingredients instead of beef to reduce carbon emissions. Pulmuone is working on thestrategies to increase the use of animal welfare foods among raw material producers and discover new farms
in order to promote animal welfare.
Vegan Restaurant "Plantude": In May 2022, Pulmuone became the first major food company to open a vegan
restaurant, "Plantude," which was certified by the Vegan Standard Certification, providing a service that allows
anyone to experience and enjoy delicious and affordable vegan meals. The name “Plantude” is a portmanteauof the words "Plant" and "Attitude," meaning that it serves delicious and enjoyable plant-based meals with thegoal of protecting the earth and the environment. To be certified as a vegan restaurant, all menu items mustbe certified vegan, and we are leading the way toward popularizing veganism by offering a variety of dishesfeaturing our plant-forward foods, including plant-based meat substitutes. Our goal is to develop and expand
the place into a complex cultural space where customers can experience and share a healthy, sustainable andeco-friendly lifestyle in their daily lives.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topico cta na e Foo

Topic 2

Pulmuone with ESG
o c
man

t

ana ement

25

Appendixo cafet anea t n t e

ork ace

Human Rights Management

Why It Matters
Institutionalization of Human Rights Management

Companies have various groups of stakeholders, including customers, shareholders, employees, suppliers, and local communities. Thereis a growing demand to support human rights for suppliers and local communities in addition to employees, leading to more stringent regulatory requirements. EU countries require companies
to conduct human rights due diligence in their business operations, including supply chains, and France, Germany and others have passed legislation and are promoting EU-wide directives
on mandatory human rights due diligence. At Pulmuone, we are committed to creating a healthy and sustainable business environment by respecting the diversity of our stakeholders andprotecting their rights without any unfair discrimination.

Progress in 2022 After conducting human rights due diligence at two business sites in 2022, the BOD declared its focus on human rights management and updated the Code of Conduct for
Suppliers across the group. Plan for 2023 Conduct human rights due diligence at three or more business sites in 2023.

Policies & Strategies
Pulmuone's corporate philosophy is based on inclusive culture and principles that considers all stakeholders. In particular, its human rights management
starts with preventing and addressing violations, and respecting diversity. In recent years, human rights and diversity issues have become increasingly
important for companies, even leading to regulatory requirements. Since 2018, Pulmuone has established and updated its human rights policies andofficially supported international human rights and labor standards based on the Universal Declaration of Human Rights, the United Nations Guiding
Principles on Business and Human Rights, and International Labor Organization Conventions. Furthermore, we have also established and promoted
the principles of human rights management throughout our supply chain. We are committed to realizing global-level human rights management in the
aspects of human rights, labor, environment, and anti-corruption. To this end, principles and standards have been established to prevent discrimination

Managing Department& SystemManaging Department
General CEO
CSO(Corporate Strategy Office)in employment and work environment while implementing relevant systems and training programs. Under the domestic laws against discrimination
including the Labor Standards Act and the Equal Employment Opportunity and Work-family Balance Assistance Act, we apply rational standards to all
aspects of HR management, including hiring, training, compensation, and promotion. We have also stated in our company regulations that we do nottolerate any unfair discrimination for reasons of race, gender, age, religion, social status, hometown, educational background, marriage, pregnancy,
childbirth, medical history, nationality, or disabilities (adopted Article 5 of the Pulmuone Rules of Employment), and we are committed to eliminating

TISO Management
Department
TISO
Management Officediscrimination for many years. Since 2018, we have disclosed the procedures to remedy sexual/non-sexual harassment, and human rights violations
in our workplace, implemented a one-stop management process to take prompt action, and organized the Gender Equality Center and the GrievanceCounseling Center with the Human Rights Management Team, a dedicated organization.

Human Rights
Management Team2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topico cta na e Foo

Pulmuone with ESG
o c
man

t

ana ement

26

Appendixo cafet anea t n t e

ork ace

Goals & Progress
Goals
Identify Risks and Establish Strategies for Improving Human Rights Management
Pulmuone is committed to creating an environment where all employees, suppliers, customers, local communities, and other stakeholders affected by its business operation are respected as individuals
and are not subjected to inhumane treatment.
Action Plans
Human Rights Due Diligence & Risk Mitigation
Pulmuone assesses the causes of human rights violations and identifies areas of improvement to mitigate risks at its major business sites at least once a year. In 2022, human rights due diligence wasconducted at two business sites, and starting from 2023, we plan to include three or more business sites by categorizing risks by business. For instance, in March 2022, we participated in the “Private
Company’s Human Rights Management Pilot Program” organized by the National Human Rights Commission of Korea to analyze the negative impacts on the human rights of key stakeholders in theentire process, from manufacturing and production to sales and distribution, of tofu, our main product, and to keep track of our response and set up plans for improvement.
Progress Monitoring
In response to the plans, we completed the implementation of short-term action plans including the Board of Directors' Declaration on Human Rights Management and the revision of the Supplier
Code of Conduct for all members of the group. An FGI survey on human rights risks was also conducted to keep track of corporate-wide human rights issues, analyze the causes, and devise plans for
improvement. Based on these action plans, we managed to enhance our human rights management system and transformed it into a more transparent and reliable process. Various activities were
presented as best practices at the Human Rights Management Forum organized by the National Human Rights Commission of Korea in July 2022 and the Corporate Human Rights Seminar hosted by the
Ministry of Justice in October 2022. To mitigate risks associated with human rights, we established policies covering all employees and suppliers through a dedicated team of experts, and introduced aremedying process to address human rights violations.
* Due Diligence Process: Pulmuone conducts due diligence at least once a year to identify risks and vulnerable groups in implementing the principles of human rights management and to prevent and mitigate negative factors. Risks andvulnerable groups that may arise in the course of business are analyzed and dealt with through improvement activities while monitoring the progress to create a culture of human rights.

Plans

Due Diligence

Organizing teams

Orientation, goals, needs, and methods

Analyzing risks

Communication survey

Setting targets and scheduling

Sharing and discussing results

Methods

Due diligence result report

Reporting Results

ReportingresultIdentifying
areas ofimprovement
and planning
for action

Performance Results

Following up on
the progress

Disclosing
information
about vulnerable
groups andoutcome ofactions

ManagingchangesAbout Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topico cta na e Foo

Pulmuone with ESG
o c
man

t

ana ement

27

Appendixo cafet anea t n t e

ork ace

Main Programs
Compliance with the Human Rights Management Principles: While Pulmuone's Risk Management Committee draws up Human Rights Management Principles and responses
to potential issues, the Human Rights Management Committee handles violations to ensure their objective and neutral review and response. Any stakeholder who has
witnessed or experienced violations against the principles can file a case to the Grievance Counseling Center and ask for prompt actions.
Reporting and Remedying Human Rights
Violations: Through the official on/offline
channels, 20 cases of non-sexual harassment
and 7 cases of sexual harassment in theworkplace were reported and handled. To
prevent recurrence, the cases were processed
into communication contents and sharedwith employees through training materials,
newsletters, and in-house programs.
(Online Counseling/Reporting Channel:
https://cp.pulmuone.kr:3444/cyber/))

Grievance Counseling and Reporting Procedures
Reporter

F n a r e ance

Handling organization
GrievanceCounseling Center

Human Rights Management
Committee

ece t on n e t at oneence

ak n ec on on o at onan recommen at on

ot f cat on of n e t at on
re t an re o t on

Within10 daysar n t e act on an

eck n act on an re

Respondentm ementat on of arecommen e
an

t

o e

Human Rights Training: Pulmuone organizes statutory training programs to prevent sexual harassment in the workplace and raise awareness about disability every year. In 2018,
Pulmuone established the Gender Equality Center to provide counseling and address sexual harassment as a one-stop process, and expanded its scope to cover counseling and training
on gender discrimination. In 2021, in addition to mandatory training sessions, we developed and organized our own training program titled "Prevention and Elimination of Harassmentin the Workplace" for all employees, including those with temporary employment status. In 2022, 99.4% of the employees completed the training. To further raise awareness andencourage participation, we are publishing letters on preventing sexual / non-sexual harassment, and gender discrimination in the workplace twice a month. The topics include humanrights-related laws, company regulations, cases of violations, and disclosure of remedying procedures. We also organized events to raise human rights awareness, such as the “3rdAnniversary Event Commemorating the Enforcement of Article 76-2, Prohibition Against Workplace Harassment, of the Labor Standards Act” on July 16, the “Gender Equality UP
Campaign to Commemorate Gender Equality Week” from September 1 to 8, and the “Declaration of Human Rights Day Event” on December 10.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topico cta na e Foo

Pulmuone with ESG
o c
man

t

ana ement

28

Appendixo cafet anea t n t e

ork aceEnhancing Human Rights Management
In recent years, there has been a growing social interest in the human rights of stakeholders as part of ESG management. Since 2018, Pulmuone has established human rights policies toensure the safety and health of its employees and to help them maintain a healthy work-life balance. Currently, we are focusing on improving our human rights management in line withnew laws, policies, and global standards. In particular, we officially declared "human rights management" as a high priority at the board meetings in 2022 and announced our support for
global human rights initiatives. We also strengthened our implementation process by updating our internal regulations and established plans for improvement and future directions byconducting due diligence. Going forward, we will continue to expand the scope of due diligence to include the supply chain and share reports in accordance with global standards (UNGPs
or CHRB Guide). In the process, we will make sure to secure channels to promote communication with our stakeholders on human rights issues.
Internal

External•••

n ance
ment

•
•

⇨ on

ec are P m one t a e ectte
man r t mana ement nm Foo on t e n ter a arreate t e enter for
P

an

man

t an

er t

c o e re ort on man r t mana emento ne t e Pr ate om anmantana ement P ot Pro ram o tet e at ona mant omm on of orea•B
ec areman r t mana ement a r or t•
ate t e re at on on man r t•mana ement ara ment e a ara ment n ork ace•••

n ance t e reme n rocer an e on ne tra n n on ara ment n t e ork ace
ent o t en er e a t r e ance co n e n etter

c an

• ne
ntro ceman r t mana ement•
ent f e cor orate
e man r t r k• r an e a cam a n to re ent ara ment n ork ace

Pulmuone Spirit: Love for Our Neighbors, Respect for Life

2022 Pulmuone Integrated Report

Topic 3

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Topic 1.
Sustainable Foods

Topic 2.
Human Rights Management

29

Appendix
Topic 3.
Safety and Health in the Workplace

Safety and Health in the Workplace

Why It Investment in Safety Culture
Matters Safety and health management in the workplace is a key to minimizing losses and maintaining a high level ofproductivity by preventing disasters and protecting employees. With the enforcement of the Serious Accidents
Punishment Act in 2022, the scope of safety management was expanded to suppliers, and the importance of raisingawareness about safety and the prevention of accidents was also emphasized. As a result, safety leaders in the industry
have increased their investment and assigned more resources in managing leading indicators and safety risks.

Safety Budget in 2023

Mid-term Target(2026)

KRW 4,034 million

Accident Rate 32% ↓(27%↑from 2022)

Severity Rate of Injury

Target for 2023
Accident Rate 16%p ↓55% ↓(compared to 2019)(compared to 2022)

Occupational Safety & Health System
Occupational Safety & Health Policy
Pulmuone aims to create a safe and healthy business environment by responding to changes inindustrial safety regulations, such as the Serious Accidents Punishment Act, and by reducing theaccident rate. To this end, we have strengthened internal industrial safety governance, reflectedsafety management standards in automated facilities, enhanced our own safety and healthaudits, improved the operation of the Safety Committee for each site, and strengthened the safety
management process during construction.

Internalization

Participation and communication with workers: Quarterly Industrial Safety and HealthCommittee*_review and resolution on major safety and health issues, monthly Factory Safety
Committee chaired by the plant leader_reflection of feedback on safety and health, anddevelopment of ESH system risk report menu to encourage communication about on-site risks
and improvements.

Occupational Safety & Health Management System
Pulmuone has acquired and maintained the occupational health and safety management system(ISO45001) certification, the internationally recognized standard for safety and health, and has met therequirements of the occupational health and safety management system by obtaining certificationsfor 16 domestic production and logistics sites, including the headquarters. The ESH Department
is in charge of environmental safety and health management at all business sites. Discussions onenvironmental safety and health are regularly held at the Industrial Safety and Health Committee andthe Session D meeting where the CEO and executive management establish and review corporatewide environmental safety and health strategies. With the Industrial Safety Working Group and theFactory Safety Committee in business units, we constantly review and discuss safety and healthrisks that occur or may occur at the site. Safety management and auditing are key activities for the
implementation of occupational safety initiatives, achievement of goals, and risk management.

Shared ESH KPI pool for each business unit in 2022, implemented/inspected/
evaluated actions to reach safety targets (accident rate, risk assessment, safety
programs, theme inspection, improvement on non-conformity)* Composed of an equal number of company representatives and representatives of employees according to the Occupational Safety and Health Act.

Risk
Management

Risk assessment and identification
Establish procedures

Assessment criteria according to the risk level of eachbusiness unit process

Conduct regular andongoing risk assessments

Organize training andrecord results

Enhanced contractor safety management: implemented work permit/suspension process,evaluated suppliers (average score of 67 points (C rating) for 15 manufacturing companies),
rated "inadequate" in safety and health performance level
Improved safety guidance inspection system: conducted on-site inspections according to thefrequency and types of accidents (Food and Culture)
Established/piloted a health management program process: 220 participants during 1st–4th
periods, overall improvement in risk factors for metabolic syndrome, and 29% reduction in thenumber of people with metabolic syndrome.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topico cta na e Foo

Goals & Progress
Goals
Reduce the accident rate by 50% compared to 2021
Action Plans
Implement and reflect safety and health levelevaluations (safety and health management system/
performance level/operation management/accident
occurrence) of suppliers on a regular basis.
Progress Monitoring• Status of the 2022 Safety and Health Assessment
7 manufacturing sites and 11 suppliers• Corporate-wide Accident Rates in 2022
Target: 0.68% (0.67% in 2021)
Performance: 0.71%• Severity Rate of Injury in 2022
Target: 0.10 (0.12‰ in 2021)
Performance: 0.16‰
Plans for Improvement- Prioritize and integrate of action plans with scoring
less than 60 points in the safety and health levelassessment for "intensive management" (2022)- Reflect the results of the safety and health assessment on regular supplier evaluations (2022)- Include corporate-wide C-level safety indicators forrequired KPIs (2023)

Pulmuone with ESG
o c
man

t

ana ement

30

Appendixo cafet anea t n t e

ork ace

Main Programs
Corporate-wide Risk Assessment• Results of risk assessment activities in 2022: completed improvement of 2,580 out of 2,826 identified as risk
factors (91.3%).
• Risk assessment awards in December 2022: 25 supervisors were awarded with KRW 5 million in prizes for
identifying risks and making improvement.
Quantified Targets for Improving Risk Factors• Goals to guide for the inclusion and mandate of risk assessment (improvement) in the ESH KPI pool for eachproduction site: Target A: improvement rate of 95% or more, Target B: improvement rate of 80% & 30-70 risk
factors identified
Risk Management Committee• Corporate-wide risk management (quarterly crisis level monitoring, including securing extra volumes,
enhancing on-site safety activities, and minimizing facility downtime, which are key risks in the
manufacturing/logistics business) to reduce risk factors through weekly unannounced site inspections with
the Safety Planning Team every month.
• Conduct emergency response drills (e.g., fire, gas leak, power outage, and confined space) at least annuallyat each business site. (ISO Emergency Preparedness and Response Procedures_ESP-86-A01)
Advancing and Expanding Health Management Programs• Established and piloted health management programs with the goal of managing the screening rate andpositive diagnosis rate (57%) under the corporate-wide plan from 2022.
• 220 employees participated in the health management program (1st–4th phases), and improved the overallrisk factors for metabolic syndrome (reduced the number of employees with metabolic syndrome by 29%)
Internal Audit• Completed audits of the Serious Accidents Punishment Act (25 sites), ESH laws and regulations (7 sites), andESH systems (8 sites, ISO14001/45001 internal audits), and improved all identified deficiencies.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topico cta na e Foo

Investigations & Procedures• Injuries or illness requiring medical treatment for less than one day: Report the incident within 24 hours.
• Serious accidents lasting for more than 7 days: Safety Planning Team conducts an investigation, and reports
and shares it on a corporate-wide level.
Safety Training• Manufacturing/logistics/R&D/service business units: Completed legal safety and health training at the timeof recruitment/on a regular or special basis.
• Food/Foodmerce/Health & Living/Green Juice Corporation: Expanded safety and health training for office
workforce from 2022.
• Manufacturing/logistics supervisors: Training via e-learning in 2021 and 2022 due to COVID-19 and internal
training organized by the Safety Planning Team in 2023 (16 hours).
* Training content: Accident investigation, laws and regulations, Pulmuone safety programs (autonomous
safety management, downtime, ESH system, accident cases).
• In addition to the mandatory training, the Safety Planning Team organized workshops for ESH staff (Serious
Accidents Punishment Act, BBS) and construction safety training (subject to the issuance of manufacturing
and logistics work permits)
Improving Safety and Health in Supply Chain: Updated the Safety and Health Section in the 2023 Pulmuone
Employee Standard Contract*Article 63 of the Standard Contract (Others)⑦ While performing this contract, including entering the logistics center for the manufacturing and deliveryof the subject matter, the supplier shall comply with the Occupational Safety and Health Act, and they
will maintain and promote the safety and health of workers by ensuring that they wear safety protective
equipment and comply with safety rules to prevent occupational accidents. OHS standards review is includedin the procurement and contracting requirements.

Pulmuone with ESG
o c
man

t

ana ement

31

Appendixo cafet anea t n t e

ork acePart 3

Pulmuone with ESG•Special: Digital Transformation(DX)- Information Security•Pulmuone Spirit & ESG Management- Sustainable Supply Chain- Pulmuone Spirit & Human Rights
Management- Internalization of ESG Management- Social Value Creation•Governance- Governance- Communication with Stakeholders- Equity Structure- Goals for Sustainable Growth- Composition of the BOD•Environmental Management- Environmental Policies- Independence, Diversity andExpertise of the BOD- Policies & Governance- BOD Operation & Performance- Progress in Environmental Management- Protection of
Shareholders Rights- Response to Climate Change- Resource Circulation- Eco-friendly Packaging•Social Responsibility Management- Talent Development- Evaluation & Compensation•Risk Management- Risk Management Governance- Risk Management Frame- Major Risks•Corporate Ethics- Working Environment- TISO Management- Communication with Employees- Fair Trade- Win-win Labor-Management Relations- Compliance- Products & Services- Tax Policies- Communication with Customers

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernance

Specialkana ement
ana ement

Appendix

34

n ronmenta ana ement
or orate t cDigital Transformation(DX)Pulmuone uses digital transformation to create new values by providing innovative digital experiences to stakeholders in and outside the organization. Since digital transformation can
improve work efficiency and enable data-based control of non-financial risks in ESG management while creating new social and environmental values through innovation in customer
experience, we plan to complete the DX platform by 2025, with the goal of making it available in everyday lives. In 2022, we carried out tasks to enhance operational excellence withthe goal of innovating business experience. In 2023, we plan on implementing tasks to improve our customer service and strengthen our internal digital expertise in order to innovate
the experiences of our customers and employees.

Progress in 2022

Corporate-wide DX/PI (Project Innovation) initiatives in 2022: 40 DX/PI initiatives, 46 initiatives for improvement

Policies & Strategies
DX Policies
In response to the growing demand for effective implementation of DX to gain competitive advantages, Pulmuone has set
a vision for 2023. Our DX implementation is categorized into three main areas: CX (Customer Experience), BX (Business
Experience) and EX (Employee Experience). They embody our commitment to driving innovation-based growth by providing
unique digital experiences in the daily lives of customers and employees.

DX Strategies
Pulmuone started the DX/PI project in 2019 and established the Pulmuone DX Platform Strategy in 2021. By integrating
and connecting data and systems and building a service platform for each business unit, we are able to drive innovation tocreate synergies across the company, and utilize DX technologies such as AI (artificial intelligence), mobile, IoT (Internet ofThings), and RPA (robotic process automation) to improve the productivity of our employees.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix35

n ronmenta ana ement
or orate t c

Goals & Progress
Goals
Transform work processes based on corporate-wide digital platform/data and AI strategy by 2025.
Transcend the limitations of a food company and step up as a food platform provider to innovate the customer experience.

Progress Monitoring
Category

DX Platform

Key Projects
by Business
Unit

AI-Powered
Projects

Project

Progress

AI Review System (AIRS)• Collected and analyzed reviews of major online shopping retailers through AI learning• Expand product categories (learning attributes other than taste)⇨ Acquired/analyzed over 3.5 million pieces of data from 8 channels

Digital Smart Factory• Built MES (Manufacturing Execution System) and coordinated with quality
management (8 Pulmuone production sites, 6 suppliers)⇨ Centralized control of major issues based on real-time data, and improved the
productivity• Expand Smart Factory based on data analytics

Digitization of E2E Purchase Process• Systematized the entire purchasing process• Enhance market analysis with internal and external data

CDA Platform-based Implementation
Planning• Set implementation directions• Plan and phase 4P (Promotion, Place, Price, Product) based scenario

LOHAS Care Personalized Nutrition
AI/IoT Services• Implemented personalized services• Expand IoT data coordination, apply AI algorithmic analysis, and create data-driven(e.g., medical checkup results, medications, allergies) through mobile apps (Perpack)dietary recommendationsFNC Service Platform• Provided meal service and collected personal preference through a mobile app (Desil) • Improve the service⇨ Subscribers: 6,136, Verified Users: 4,966, DAU*: 1,153• Expand target business sites (Target: 50 in 2023)

Automation of Indication Review• Automated legal indication review process, automatically review the latest legal information• Collect legal information and manage risk with RPA⇨ Reduced lead time for review by 26% (16.9→12.5 days)

FDD Customer App Development• Developed KakaoTalk-based mobile app led by the HQ• Expand the D2C** channels by developing FDD app⇨ Improved average monthly retention rate (1.5%↑ for members, 17.5%↑ for external malls)

Logistics Innovation• Built FC (Fulfillment Center) conversion system at Yongin Logistics Center• Expand the logistics center

Optimization of Marketing Allocation• Sales staffs based on AI analytics (e.g., on-site data and external variables(e.g., weather, region)) ⇨ Up to 48%↑ in sales• Increase the auto allocation (70%↑) in the metropolitan area
• Increase product categories

Prediction of Drinking Water
Customer Center STT (Speech-to-Text)

Plan for the Future• Predicted demand for drinking water by corner/menu through AI learning withmore than 100 variables• Converted VoC to text ⇨ 100% complete• Increase the locations with drinking water prediction (about 30)• Implement TA (Text Analyze)**** Daily Active Users / ** Direct to Customer / *** Process of providing insights by analyzing the language converted to texts

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix36

n ronmenta ana ement
or orate t c

Pulmuone Spirit and Human Rights Management
Pulmuone Farm and Corporation
Pulmuone originated from Pulmuone Farm, which was

A Conscious Farmer

established and operated by the late Director Won Kyungsun in 1955. Pulmuone Farm was a community where
people who had nowhere to go, including war orphans,

Changing the World and People!

lived together. He founded the “Jeong Nonghoe” andThe Beginning and Evolution of Pulmuone Farm

started the first organic farm in Korea in 1976, when1955

everyone was crying out for more food. In 1981, Pulmuone
first organic specialty store that has now become one

Cleared 33,057.8512m2 of land in Bucheon, Gyeonggi-do, named it Pulmuone Farm,and built a community where orphans and those who had lost their homes can live
after the war.

of Korea's most beloved companies that also globalizes

1976

opened Pulmuone Organic Produce Farm Shop, Korea’s

wholesome food products. To this day, the spirit of “loveMoved to Yangju, Gyeonggi-do and founded Korea's first organic farmers' association,
Jeong Nonghoe, and began organic farming to promote the Pulmuone spirit, "Love for
Our Neighbors, Respect for Life."

for our neighbors, respect for life” has been inherited anddeveloped into the Pulmuone spirit that must be followed
to provide products and services. Based on this spirit,
we pursue our mission of serving as a company that“creates healthy tomorrow for the people and planet withwholesome foods.”

ontr te to rea n t e
a e of man ea t an
ta na t n o r oc et

The Beginning and Evolution of Pulmuone Corporate
1981
Started Pulmuone Farm Organic Market in 33 m2 of space in Apgujeong-dong.

1984Founded Pulmuone Food (listed on the Korean Exchange in 1995).

2021
Expanded into the U.S., China, Japan, and Vietnam, and currently operates in thefood and beverage manufacturing and distribution, food service, cultural space, andlifestyle service industries.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernance

ana ement
ana ementk37

Appendixn ronmenta ana ement
or orate t cLove for Our Neighbors, Respect for Life
Pulmuone's respect for people comes from its founding spirit, "Love for Our Neighbors, Respect for Life." First, the spirit of “Love for Our Neighbors” is the passion to deliver fresh and safe
food, backed by a strong commitment to make wholesome foods for you and your family. Second, the spirit of “Respect for Life” comes from the desire to love and protect nature, the sourceof life, and the promise to consider and practice environmental protection in all processes and outcome of our business operation. We can only live as human beings by saving nature. That is
why we are committed to recognizing and fulfilling our responsibilities toward all our stakeholders, including the supply chain, consumers, local communities, and our planet.
Stakeholders of Pulmuone

Internal Stakeholders

External Stakeholders

Economic Responsibilities

Social Responsibilities

Environmental Responsibilities

Suppliers

Pulmuone

Employees

Supply Chain
Business Partners(e.g., JV)

Shareholders

Markets
Consumers

Local Communities
Governments

B2B
Customers

PlanetMedia

Societies

Partnerso rce

at ona

man

t

omm

on of orea

e to

man

t

ana ement

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

38

n ronmenta ana ement
or orate t c

Internalization of ESG Management
ESG Management Strategies

ESG Management System

Pulmuone's ESG management is embedded in the company's mission, core strategies, andvalues. Our core strategies for fulfilling the corporate mission, “Plant Forward,” “Animal
Welfare,” “Healthy Experience,” and “Eco-Caring,” aim to realize a sustainable tomorrow where
both people and the planet are well-protected by considering plant-forward and animal welfarebased products, services that offer a healthy experience to customers, and processes andoutcomes that are beneficial to the environment.

Pulmuone has established and operated its management system to strengthen its corporatewide non-financial (ESG) performance and strategic application. We are striving to maximize
economic, social, and environmental value creation by systematically managing non-financial
performance through the efficient operation of the ESG Committee under the BOD and CEO
meeting, as well as the working group. Our goal is to advance our ESG management byimplementing internalization tasks to achieve ESG management goals and establishing a nonfinancial performance management process based on the ESG Department.

Core Strategies

ESG Management Decision-Making Process
Board ofDirectors

Plant-Forward

Animal Welfare

Healthy Experience

Create desirable products and dietsby minimizing the use of meat for
the health of both humans and Earth(if inevitable, using animal welfarecertified meat or eco-friendly seafood)and using sustainable plant-based raw
materials.

Provide products that respect the
dignity of animals as living creaturesand reduce harm to health anddamage to the ecosystem caused byindustrial livestock farming practices,
indiscriminate capture, and factorytype fish farming.

Provide products and services
that can prolong health-adjusted
life expectancy by improving thehygiene of individuals and their living
conditions, and help people develop
healthy and hygienic lifestyles.

Eco- Caring

Business Value Chain
Eliminate or minimize harmful factors that impact the health of the ecosystem
across the business value chain, from sourcing to production, packaging, sales, anddisposal.

ESG Committee

CEO Meetings
Session A(Mid-term Strategy)

Session B(Business Plan)

Session C(HR Management)

Session D(Overall ESG & ESH)

Corporate Strategy Office / TISO Management Office TISO Management Department / ESG Management Team

ESG Working Group (Business Unit)

Subsidiaries(Pulmuone Foods, LOHAS Academy, cd's Associates, Danone Pulmuone, Pulmuone Water, Pulmuone Health & Living, Pulmuone Food and Culture)2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

39

n ronmenta ana ement
or orate t cCommunication with Stakeholders
In our Articles of Incorporation, we define our six key
stakeholder groups, including customers, shareholders,
employees, suppliers, local communities, and theCommunication Channels for Stakeholders
Category

Overview

environment, and declare specific commitments andpledge actions that we will deliver. They have direct orindirect impact on our sustainable management activities.
We ensure full transparency of our strategies, major
activities, performances, and plans for our stakeholders.

Shareholders &Investors

Stakeholders can access the overall management of ouroperation at any time through social media and othercommunication channels.

Communication Channels
Common Channels

Customers

Employees

Suppliers

Local Communities

Individual Channels

Individuals (or institutions) that own
or are planning to own one or moreshares of stock in Pulmuone•Open shareholders’ meeting•Integrated report for open
shareholders’ meeting•NDR / IR meetings

Consumers who purchase products
and services manufactured andprovided by Pulmuone•Customer Satisfaction Center•e-Fresh monitor•Homemaker monitor•Customer satisfaction survey

All members of the company who
work together to achieve the mission
and vision of Pulmuone

All companies and their employees
involved in the process of
procurement, manufacturing, sales,transport, and facilities of Pulmuone
products and services
All individuals and institutions that
affect and are affected by Pulmuone's
business, including the government,
relevant institutions, NGOs, volunteer
organizations, and local residents ofregions of its business sites•Pulmuone website(www.pulmuone.co.kr)•Social media(Facebook, Twitter, Instagram, etc.)
and Blog•Integrated Report•Official YouTube channel(https://www.youtube.com/ user/
pulmuonelove)•Company portal(KWP, Knowledge Worker Platform)•Labor-Management Council•Meeting with the General CEO•Grievance Counseling Center•Human Rights Management Committee•Environmental Safety Committee•Meeting with suppliers•Partners Day•ONE, THE PULmuone Partners Meeting•Pulmuone Sourcing Portal(sp.pulmuone.co.kr)•Work-related meetings (at the request of
relevant institutions and organizations)•Meeting with local residents (regular/temporary)•Meeting hosted by the General CEO•Associations, workshops, and conference•Regular meetings with volunteer
organizations

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernance

UN SDGskana ement
ana ement

Appendix

40n ronmenta ana ement
or orate t c

Pulmuone has declared its support for the UN Sustainable Development Goals (SDGs) and engaged in various activities. The Sustainable Development Goals are
the common goals of the international community to promote universal peace and create a sustainable planet through not only economic growth but also harmony
between people, the environment, and society. The UN has proposed 17 goals and 169 detailed indicators as an action plan for sustainable development by 2030.

Goal 1. End poverty in all its forms everywhere: Provide education and support for thepoorest and most vulnerable to overcome poverty

Goal 2. End hunger, achieve food security and improved nutrition and promote sustainableagriculture: Invigorate the agricultural ecosystem by expanding the adoption of GAP
for agricultural products and promoting mutual growth

Goal 3. Ensure healthy lives and promote well-being for all at all ages: Spread good dietary
habits and healthy lifestyle based on sustainable wholesome foods

Goal 4. Ensure inclusive and equitable quality education and promote lifelong learning
opportunities for all: Strengthen capacity of employees and encourage selfdevelopment

Goal 5. Achieve gender equality and empower all women and girls: Develop female leadersand help women achieve success both at work and at home

Goal 6. Ensure availability and sustainable management of water and sanitation for all:
Build a system for managing the quantity and quality of water resources

Goal 7. Ensure access to affordable, reliable, sustainable, and modern energy for all: Useeco-friendly energy sources and expand the use of renewable energy

Goal 8. Promote sustainable and inclusive growth, full and productive employment, anddecent quality job opportunities for all: Constantly create jobs for youth andincrease the employment of the elderly and the socially disadvantaged

Goal 9. Build resilient infrastructure, promote inclusive and sustainable industrialization,and foster innovation: Strengthen internal and external activities for thedevelopment of the food industry

Goal 10. Reduce inequalities within and among countries: Implement and spread humanrights advocacy in business operation such as respect for human rights
management

Goal 11. Make cities and residential communities inclusive, safe, resilient and sustainable:

Contribute to creating a culture of a sustainable living by spreading the corporate
spirit, “Love for Our Neighbors, Respect for Life”

Goal 12. Ensure sustainable consumption and production patterns: Develop and expand
sustainable food products in line with plant-forward and animal welfare concepts.

Goal 13. Take urgent action to address climate change and its impacts: Establish a risk
management system for climate change and come up with countermeasures

Goal 14. Conserve and sustainably use the oceans, seas, and marine resources forsustainable development: Strengthen education programs about water
environment and expand the MSC/ASC certification for fishery products

Goal 15. Protect, restore, and promote sustainable use of terrestrial ecosystems,

manage forests sustainably, combat desertification, reverse land degradation,and protect biodiversity: Minimize business impacts on the environment

Goal 16. Promote peaceful and inclusive societies for sustainable development, provide
access to justice for all, and build effective, accountable and inclusive institutions
at all levels: Realize justice through compliance and ethical management

Goal 17. Strengthen the means of implementation and revitalize the global partnershipfor sustainable development: Conduct joint R&D projects with governmental
agencies and cooperate with NGOs to promote CSV

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

41

n ronmenta ana ement
or orate t cEnvironmental Management
Pulmuone minimizes its impact on the environment across all business activities. We have implemented a standardized environmental management system, which systematically controls emissions
and discharged substances by regularly monitoring the discharge route and amount of air pollutants, harmful chemicals, and waste. We are also expanding relevant facilities and carrying out
environmental improvement activities. We also clean up nearby areas on a regular basis. In order to realize the corporate mission, “To Create Healthy Tomorrow for the People and Planet with
Wholesome Foods,” we are pursuing strategies that incorporate the unique values to respond to climate change, such as expanding products to respond to climate change, reducing energy andwater consumption, reducing greenhouse gas emissions, and recycling. We have also set targets to reduce energy and water consumption, greenhouse gas emissions, and waste at the source asof 2022 by expanding renewable energy, investing in high-efficiency facilities, and promoting action plans to reduce water consumption and circulate resources. Our goal is to expand the reduction
strategies by product, logistics, and packaging category and implement them at a corporate-wide level by setting mid- and long-term targets up to 2026.

Environmental Policies
Pulmuone has established environmental strategies
to fulfill its corporate mission, "To Create Healthy
Tomorrow for the People and Planet with Wholesome
Foods." When it comes to products, we respond toclimate change by expanding our eco-friendly products
lineup, setting targets for reducing energy and water
consumption and greenhouse gas emissions in the
production stage, building a management system topromote strategies that incorporate our own values
in response to climate change, and continuing tosupport the expansion of renewable energy andresourcification of waste.

Energy and Greenhouse Gas Operation Sector :We are expanding the application of renewable energy and increasing efficiency
by utilizing EMS (Energy Management System) as areas of focus, while
replacing outdated facilities with water-saving facilities, implementing watersaving projects, and expanding water recycling in the water operations sector.
Waste Operation Sector : We are expanding the resource circulation of saleable
byproducts, and utilizing IoT and smart factory technologies to reduce losses
during processes.
Packaging Sector : With "Eco-Caring," which prioritizes environmental impact,
as a core strategy, we are promoting the use of eco-friendly certified materials,
designing recycling technologies, and reducing the use of plastic. We managed
to reduce the amount of plastic used by 104 tons by removing plastic trays (forthe noodle product line) in 2022 compared to 2021. We are also developing
sustainable packaging materials such as bioplastics (salad), recycled PP
packaging (tofu, natto), and single raw material PE packaging (two types ofplant-based Jigusikdan dumplings).

Product Sector : We are expanding our product lineups forclimate change mitigation and planning to increase the shareof sustainable food products in sales from 44% to 60% within
3 years while gaining competitive advantages in our animal
welfare products by building large-scale animal welfare
farms.

Use of eco-certified materials

Eco-Caring

Designing eco-friendly recycling
technologies
Reducing the use of plastics

Amount of plastics
reduced in 2022

104tons(compared to 2021)

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

42n ronmenta ana ement
or orate t c

Goals

Risk Management in Response to Environmental Regulations

In order to minimize environmental impacts across all areas of our business, we establish
mid- and long-term action plans and keep track of our environmental management goals
at Session D meetings, which are attended by the General CEO and executives, and thequarterly Environmental Safety Committee meetings. Environmental management is carriedout by setting short-, mid- and long-term action plans with focus on raw materials, production
processes, packaging, and logistics.

Pulmuone ensures full compliance with ESH-related laws and regulations. We arecommitted to internalizing the ESH culture by establishing policies, regulations, procedures,and standards to manage risks and apply more stringent requirements. Based on thepolicies, the ESH Department, ESG Management Team, and Legal Team collaborate tomonitor environmental laws and regulations, and conduct regular and ongoing analysis atdomestic and overseas business sites to check the status of risk management. When newenvironmental regulatory risks arise, we take immediate action and update our policies andregulations through prompt decision-making process by the Crisis Management Committeeor the Environmental Safety Committee.

Workflow
Pulmuone assesses and manages the environmental benefits of sustainable food and works
on systematic action plans to promote and internalize ESG management and respond to risks.

Installed wood pellet boilers at Uiryeong Tofu Plant to reduce GHG emissions-> Reduced by 2,643tCO2

Environmental Management Workflow

Ingredients

Fresh

Substitution

Sourcemanagement

Removed plastic trays to reduce the use of plastics -> Reduced by 104 tons

Climate change
Risk management

Used 11 TJ of renewable energy

Process
Process
improvement

Expandingsustainable foods

Response toregulations

PackagingEco-friendly

Reducing
packages

EPR cost

Logistics/Distribution
Vehiclesubstitution

Response toregulations

Progress in 2022

ESG management

Climate change
Increased
opportunities

Plan for 2023
Reduce GHG emissions by 4.2%
(intensity, compared to 2022)
Reduce 269 tons of plastic

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

43n ronmenta ana ement
or orate t c

Policies & Governance

Progress in Environmental Management

Policies

Environmental Training

Pulmuone is committed to taking actions against climatechange and resource depletion by reducing energy
consumption, improving energy efficiency, protecting water
resources, and recycling waste. The goal is to further
strengthen our ESG capabilities at a corporate-wide andbusiness unit level by reducing the environmental impactof our business operation throughout the entire productlife cycle and promoting systematic efforts from a Plan-DoCheck perspective to strategically utilize corporate-wide, nonfinancial goals and performance.

In December 2022, Pulmuone conducted the Pulmuone Online ESG and Environmental Training for all employees of the company.
The training was conducted for two weeks with a wide range of training content focusing on the background, basic concepts, andtrends of ESG management, advanced best practices, and the importance of climate change. The contents were prepared througha business agreement with the National Environmental Education Center of the Ministry of Environment. In May 2022, we formeda partnership titled “Environmental Education Partnership for a Sustainable Future” with the Ministry of Environment’s Korea
Environmental Education Center and pledged to support educational programs to raise awareness.

Environmental Management Governance

Progress Monitoring & Feedback System

In order to promote BOD-led environmental management,
Pulmuone reports environmental performance, goals, andplans to the Board at the beginning of each year, and reviews
and approves related policies, risks, and strategies at the ESG
Committee meetings. The BOD holds a CEO meeting (SessionD) twice a year and an Environmental Safety Committee
attended by the CEO and executives four times a year as the
CEO has the roles and responsibilities to secure executive
power by making decisions on the detailed direction of actionplans approved by the BOD. In particular, ESH KPIs aremanaged at a corporate-wide level by the Environmental
Safety Committee to align our environmental management
practices with the goals.

Pulmuone organizes quarterly Environmental Safety Committee meetings with executives to discuss environmental safety-related
performance, important issues and actions, targets for each area of improvement, and progress. Next, Session D* is organized by
the General CEO and attended by C-level executives from each business unit to share performance status and review plans forpromoting ESH practice, and report to resolve major issues at the ESG Committee and the BOD meetings, which are the highest
decision-making bodies and processes.

Case studies of advanced global
companies that focus on corporate
ESG management and climatechange strategies

Recognizing and changing lifestyle,industry, and policies to reach carbon
neutrality and the 1.5 °C goal267

1.5 hours per employee,
400.5 hours in total

ESG Management Training

Climate Change

Number of Employees Who
Completed Training

Total Number of Hours

Category

Frequency

Objectives & RolesTop Decision-Makers

BOD

Quarterly or more

Report on investment plans and results of activities to promote
environmental safety managementBOD

ESG Committee

Semiannual or more

Share the corporate-wide ESG management strategy and the progress oftasks for each major issue

Committee

Session D

Semiannual

Share performance and review plans for ESG and environmental safety
initiatives by business unit

General CEO

Environmental Safety Committee

Quarterly

Review corporate-wide environmental safety strategy and major initiatives

General CEO

Manufacturing Site Workshop

When required

Discuss workplace environmental safety issues and challenges

ESH Department.

Manufacturing/Logistics ESH
Working Groups

When required

Build a safety-oriented culture based on the ESH action plan and discuss
compliance practices

ESH Department.

Non-manufacturing ESG Working
Group

When required

Promote working-level discussions to build a safety-oriented culture in eachbusiness unit

ESH Department.

Decision-making Process of Environmental
Safety Management
Dedicated environmental departments of
Pulmuone Corporate and its subsidiaries
collecting key environmental safety issues
Environmental Safety Committee (quarterly)
Session D (semiannual) / ESG Committee

Board of Directors

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

44n ronmenta ana ement
or orate t c

Eco-friendly Product & Service Certification

Investment in Environmental Facilities

Pulmuone has environmental management systems that comply with ISO14001, a global
standard for environmental management systems, and ISO45001, a standard for safety andhealth management systems, and has obtained the corresponding certifications. ISO14001
and ISO45001 are international standards established by the ISO (International Standard
Organization) and provide criteria for all aspects of company operations, including management
systems, production, and service, in the areas of environment, safety, and health. We obtained
ISO14001 certification for our domestic manufacturing and logistics companies and the Corporate
Technology Office in 2015, and ISO45001 certification in 2018, maintaining them to date.

In 2022, Pulmuone invested in a solar collection system with a capacity of 20 tons of hot water(1,479 kWh/day) at the Pulmuone Kibun site, and expanded solar power generation facilities witha capacity of 100 kW at PPEC Eumsung Fresh Noodle and Danone Pulmuone, and 117 kW at theAnsan Rest Area.

LEED Certification
Pulmuone's state-of-the-art R&D center, Corporate Technology Office, is the first food research
institute in South Korea to acquire a Gold rating from LEED (Leadership in Energy andEnvironmental Design), a global green building certification. Gold is the second-highest level of
LEED certification after Platinum and is highly difficult to obtain. The acquirement of a Gold ratingfrom LEED by Pulmuone is a first for a food research institute in Korea, and it is the highest
rating ever received by any R&D centers including non-food sectors in the country.

Eco-friendly Process Management
In order to reduce GHG emissions during the process, Pulmuone is increasing the number ofsites with EMS (Energy Management System) as part of its the mid- to long-term strategy andcollecting big data to build eco-friendly processes. Going forward, we will continue to reduce
GHG emissions by using more renewable energy, developing innovative processes, and applying
new technologies. We are also improving efficiency and managing facility maintenance withthe focus on refrigeration, boilers, and air conditioning, pipes and wires by thermal imaging
diagnosis, recovery and reuse of waste heat, and EMS operation.

Violations of Environmental Laws and Regulations
There was no violation of environmental laws and regulations in 2022.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

45

n ronmenta ana ement
or orate t c

Response to Climate Change
Governance

Risks & Opportunities

Pulmuone oversees and manages issues regarding climate change with its Board of Directors
as the highest decision-making body. The BOD makes decisions by considering climate change
impacts on the business and its stakeholders. To establish firm leadership in the managementof climate-related risks, opportunities, and activities, we assign the responsibility to the ESG
Committee (meeting held twice a year), and the ESG Committee's secretary and executives in theenvironmental sector report to the ESG Committee.

Pulmuone defines the financial or strategic impact from climate change-related risks andopportunities for all business sites, including Pulmuone Foods, and reviews the materiality ofeach issue and its impact on business and society with the Risk Management Committee andthe ESG Committee. Depending on the materiality of the issue, the committees assign the roleof establishing response strategies to dedicated departments and report issues with significant
business impact to the BOD.

The ESG Management Team and the ESH Department have been organized as operators forplanning and responding to climate change, and meetings are held for each business unit toensure the dissemination and secure the capability to execute the tasks. GHG emissions, projectprogress, and climate change issues are reported to the Environmental Safety Committee atleast quarterly. Important issues regarding strategies, goal setting, and disclosure are discussed
at Session D, a CEO meeting for social responsibility and environmental management. Any issues
that may arise from the construction of new facilities and factories are reviewed in advance by
the Investment Review Committee.
Climate Change & ESH GovernanceAccording to our risk management process and manual, we monitor climate change-related risks,and responses and GHG reduction measures are implemented in consideration of the national
reduction plans under the Paris Agreement, the IPCC (Intergovernmental Panel on Climate
Change) assessment reports and RCP (Representative Concentration Pathway) scenarios, theIEA (International Energy Agency) energy technology outlook, and the KETEP (Korea Institute ofEnergy Technology Evaluation and Planning) technology roadmap.

Risk Identification Process

Open Shareholders’ Meeting

BOD

BOD

Identification and Assessment of
Risks and Opportunities

ESG Committee
Investment Review Committee
CEO Meeting (Session D)

Executive Meeting
Environmental Safety Committee

TISO Management Department

ESH Department

ESG Working Group

Environment Working Group

Business Units Pulmuone Corporate, Pulmuone Foods, Danone Pulmuone, Pulmuone Waters, LOHAS CareManagement of Risks andOpportunities• Continuously monitor and assess climate change risks with relevant
departments based on environmental or safety management systems(e.g., ISO14001, ISO45001)• The ESH Dept. monitors energy consumption, GHG emissions, renewableenergy use, climate change impact, and Scope 3 emissions• Discuss and manage the issues at regular meetings such as the Environmental
Safety Committee and Session D• Discuss and make decisions on climate change risks and opportunities with the
ESG Committee

Integration of Corporate-wide Risk • Consider the direct and indirect impacts of climate change on the foodManagement Processindustry, and incorporate them into the risk management framework

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernance

Response(Transi-tion risk)

Financial Impact

Pulmuone's Responses❶
Policy/legal(Risk) Violations of laws on climate change
and litigation costs(Risk) Investment in financial resources for
Scope 3 GHG assessment• Management of multiple emission facilities eventhough the company is not subject to GHG
emission management• Expansion of GHG emission management at all
business sites• Preparing guidelines for advanced managementof Scope 3 emissions❷
Technology(Risk) Increase in short-run production costs
due to investment in power facilities• Monitoring of renewable power generation costs• Adoption of electric carts(Opportunity) Growth of the market for
LCA-based, low-emission products(Risk) Rising raw material costs due to increased
demand for high efficiency and eco-friendliness(Risk) Negative impact on corporate credit rating
and overseas exports due to climate change
response and environmental impact(Risk) Physical damage at business sites
or production facilities caused by abnormal
weather(Risk) Rapid change in raw material prices due
to climate change(Risk) Increased operating costs of businesssites such as cooling and heating systems(Risk) Change in sourcing origin due totemperature increase(Risk) Change in precipitation patterns• Securing low-emissions technology at all stagesof the process(e.g., plant-forward foods, vegan foods)• Carbon reduction management of sustainable foods• Disclosure of information on climate change
responses according to the TCFD framework• CDP participation❸
Market❹Reputation❺
Acute
Adaptation(Physical
risk)

Impact❻Chronic❸

Short- Mid/term longterm• Diversification of raw material supply and demand• Regularly checking of supply plan
• Establishing and monitoring price prediction
model scenarios• Improvement in utility facilities at business sites• Implementation of emergency scenarios forclimate emergencies❷ Investment for energy transition❺❶n ronmenta ana ement
or orate t c❸ Changes in consumer behavior❻

Probability

Pulmuone has set three strategic directions in response to climate change. ▲ Expanding
renewable energy (energy transition) and improving energy efficiency to reduce Scope 1 andScope 2 emissions. ▲ Promoting low-carbon business strategy to reduce Scope 3 emissions.
▲ Including climate change response in KPIs for the management and executives to encourage
proactive response to climate change.

Expanding Renewable Energy and Improving Energy Efficiency
Pulmuone is committed to increasing the use of renewable energy and improving the energy
efficiency of its facilities. As a result, the share of renewable energy has been increased to 5.0%of the total energy used in 2022 (at food manufacturing sites). However, due to the impact of the
expansion of the Pulmuone Foods production facilities and the increase in production volume,
we exceeded our goal of increasing the total energy unit by 2.0% in 2022 by 0.5%.
Going forward, we will continue to promote energy transition and plan to transition to renewableenergy at our business sites by 2050. We are considering the use of hydrogen burner technology
to replace thermal energy while expanding renewable energy with a focus on solar power, which
has become more economically viable due to rising electricity prices and falling LCOE.

Low Carbon Business Strategy❶ Climate change disclosure regulation❷❹

ana ement
ana ement

46

Climate Change Response Strategies & GHG Reduction Activities

Climate Change Risks and Opportunities
Risk CategorykAppendix❹ Climate change response reputation❺ Acute damages caused by climate change❻ Chronic damages caused by climate change

In 2022, Pulmuone launched “Jigusikdan” products, which are based on plant-based ingredients,
to reduce methane emissions from livestock farming, thus reducing GHG emissions throughout
the product life cycle. The sales of “Jigusikdan” has accounted for approximately 7-8% of thetotal sales of the food business, and we will continue to drive its growth by introducing various
meat substitute products this year.
Green transportation and waste reduction are also major parts of our low carbon businessstrategy. Eco-friendly transportation is being implemented across all areas of our business2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

47

Appendixn ronmenta ana ement
or orate t cManaging Climate Change Indicators and Objectives
operation, including electric and hydrogen-powered trucks and electric carts (door-to-doorsales). In terms of waste reduction, we are working on using lightweight, label-free waterbottles and bioplastic trays, while setting up plastic and waste management strategies tomanage them separately.

Managing Climate Change Performance
Pulmuone manages overall ESG performance, including targets and achievement levels in response
to climate change, as KPI for management, executives, and those in charge of the Risk Management
Department. This KPI is reflected as an important factor in determining the annual salary increase
for the next year. Employees are encouraged to participate in climate change response activities
as we present the Environment & Safety Award annually to one employee in each division who
demonstrate excellent performance. In 2022, a total of 8 employees received the award.
Incentive for Environment and Safety Management
Environment & Safety
Best Practice Award

Category

Environment & Safety Award

Eligibility

Operations & Field Management
Team Members
PositionsType

Monetary Reward

Annual rewards for those who
contribute to reducing carbon
emissions and improving the ecofriendly performance of products,
Description
packaging, and business sites (KRW
500,000 per person)

Executive CfS

GHG emissions have been increasing in recent years due to the expansion of new production
facilities and growing output. However, Pulmuone is committed to reducing GHG emissions
by improving the efficiency of its production processes and working on renewable energy
projects. The target in response to climate change in 2022 was to suppress the increase in GHG
emissions per unit of output below 1.8%, but it took longer than expected to efficiently operate
the new facilities, resulting in an increase of 3.2% compared to 2021. This was about 1.4 percent
higher than the target level.
* In 2023, Pulmuone expanded the scope of GHG management to all business sites, including overseas sites, andrecalculated GHG emissions for 2021-22.
This indicator and target management are based on the existing calculation scope (domestic manufacturing sites).

Pulmuone’s mid-term goal for climate change response is to achieve 4.67 tCO2eq/KRW 100
million in 2026, a reduction of about 16% from 5.55 tCO2eq/ KRW 100 million in 2022, and its
long-term goal is to achieve net-zero greenhouse gas emissions by 2050. We are currently
advancing our GHG roadmap and reduction portfolio, and plan to change from managing GHG
emissions on a per-unit intensity basis to a gross basis.
GHG Emission Reduction Target

COO & Executives

Monetary Reward

Monetary Reward

Special rewards for those who
actively engage in eco-friendly
activities including climate change
response in the field, proactively
identify and prevent risks, and quickly
deal with risks (KRW 1 million perbusiness site, KRW 300,000 perperson)KPI quantitative indicators] GHG
emission intensity for the share of
renewable energy generation

Year

Unit

(Performance)

2022

2023

2024

2025

2026

GHG Emission Intensity

tCO2eq/KRW 100M

5.55

5.32

5.09

4.88

4.67

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

48

Appendixn ronmenta ana ement
or orate t cResource Recycling
Pulmuone is committed to recycling resources based on recycling or upcycling technologies instead of single use consumption. To this end, various programs have been implemented
throughout the entire product process, such as reducing wastewater generation and increasing water reuse, minimizing waste from the product planning stage while reducing the useof hazardous chemicals, and launching R&D projects to develop recycling processes for food waste.

Resource Recycling Policy
In 2022, Pulmuone announced its corporate mission, “To Create Healthy Tomorrow for the People and Planet with Wholesome Foods,” and has operated its business with a focus on resource recyclingfrom the product planning stage through production to final disposal stage to support the mission. The direction of our resource recycling policy is ▲ increasing the use of materials and applying resource
recycling from the product planning stage to make it easier for consumers to recycle, ▲ optimizing water usage in the manufacturing process, and ▲ minimizing wasted materials through recycling.
Resource Recycling Policies

Scope of Resource Recycling
c c nRecycling
Suppression
Ingredients

Safe HandlingTransportation

Manufacturing/
Processing

Distribution

ta na e Packa nIncrease the use of recyclable materials in consideration of recyclingfrom the product planningstage and make it easierfor consumers to recycle.

Optimize water usage
in the manufacturingp r o c e s s a n d m i n i m i ze
impact on communities by
setting high standards for
wastewater.

Minimize wasted materials
through recycling.

a teana ement

ater e o rce ana ementem ca

ana ementBoer tConsumption

Disposal

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix49n ronmenta ana ement
or orate t c

Sustainable Packaging
Recognizing the seriousness of environmental pollution caused by packaging materials, as the quality of life improves and lifestyles change due to industrial development, it becomes essential to take amore proactive approach so that we can pass Earth to future generations. Considering the characteristics of industries that make daily products such as food and beverages that are used and discarded
every day, we are promoting eco-friendly packaging policies and continuously introducing more efficient measures to develop eco-friendly containers at the product development stage.

Goals & Plans
In order to maintain a virtuous cycle of packaging materials for a more sustainable future where people and nature coexist, we have established three principles of sustainable packaging: ▲ use ecocertified materials, ▲ design eco-friendly recycling technologies and ▲ reduce the use of plastic, and created a roadmap for more sustainable eco-friendly packaging.
Action Plans

Objectives

1. Use eco-certified materials- Use eco-friendly bio-based and biodegradable packaging materials• Apply bio-based materials to tofu trays and beverage bottles in 2023

2. Design eco-friendly recycling technologies- Use physically and chemically recycled materials for a virtuous cycle of resources- Design packaging with a single material to make it easy to recycle• Introduce and apply PCR products to natto in 2023
• Change film packaging using a single material by developing a barrier by 2025

3. Reduce the use of plastics- Replace plastic materials and the weight of packaging, and minimize unnecessary packaging(use paper materials and plant-derived materials, reduce packaging size and thickness)• Replace plastic trays with paper ones in ready meals by 2023

Progress in 2022
Completed packaging technologies: bio-plastic, recycled PP packaging, single-material PE packaging (goal achieved)
Reduction of plastics: 104 tons/year2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

50

n ronmenta ana ement
or orate t c

Waste Management

Water Resource Management

Pulmuone recycles recyclable food waste generated during
the production process, and this is recognized as a resource
recycling under the "Circular Resource Recognition Program."
We are contributing to the reduction of environmental impact
by recycling waste that would otherwise be disposed of in
landfills or incinerated.

Water is an essential resource for our production and business operations, and directly linked to the risk of natural disasters. In the foodindustry, which requires large amounts of clean water, it is more likely to impact biodiversity in our local communities. Therefore, wehave set our own standards for water management that are higher than the legal requirements and are actively investing in the process.

Goals & Plans
In order to minimize the environmental impact from waste
generation, Pulmuone applies the principles of strict waste
separation and collection at all of its business sites, and has
set a waste reduction target of 7.8% per unit in 2022. We aremaking steady progress in improving the unit level of waste byidentifying recyclable waste and taking the lead in minimizing
food waste by introducing advanced food processors.

Progress in 2022
Waste reduction : 1,122 tons compared to 2021
(Including the amount recognized as recyclable resources)
9.0% reduction in raw materials (1.2% over the target)
Expanded the scope of recyclable resources : Eumsung Tofu
(2020), Fresh Noodles/Uiryeong Tofu (2021),

Goals & Plans
Pulmuone maintains its permissible levels of environmental pollutants at its sites that discharge directly into water systems at 50%of the legal limit or agricultural water quality standards. To this end, we are investing in improving wastewater treatment facilities
and optimizing their operations. However, it is difficult to directly reuse the water used in the production of our products. Therefore,
we are focusing on the method of reusing water indirectly.
Action Plans

Objectives

1. Increase water reuse- Invest in facilities for reusing water for utilities, cleaning andrestrooms• Circulate defrosted water in the unit cooler• Reuse RO backwash and wash water for cleaning• Reuse bean juice cooling water for wastewater treatment plants,
cooling towers, and restrooms

2. Optimize operations for using water resources- Support measures to reduce water consumption- Introduce facilities for optimizing water consumption• Change the process during the vegetable growing process• Standardize bean cleaning process• Improve the cooling system for the concentration line

3. Establish wastewater standards above the legal limit- Operate wastewater treatment standards over the legal limit tominimize the impact on the ecosystem• Analyze water quality on a regular basis and invest in water
treatment facilities

Progress in 2022

Zero Food Waste from Uiryeong Tofu : 47.45 tons/year

Water consumption intensity : 6.2 tons/tons(water consumption/production),
Reduced by 2.9% (1.3% over the target)
Water consumption : Reduced by 162,000 tons/year**At manufacturing sites*At manufacturing sites

Doan Green Juice(additionally recognized in 2022, 1,107 tons/year)

Water Tank Cooling(Installed coolers)

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix51

n ronmenta ana ement
or orate t c

Chemical Management

Biodiversity

Pulmuone is committed to managing chemicals in theprocess of formulating, producing, and selling food products.
We conduct regular surveys of all chemicals used in our
workplaces, and we continuously update our management
standards by reducing the concentration of chemicals andreplacing them with substances that are proven to beharmless.

At Pulmuone, we recognize the benefits and impacts of ecosystems and biodiversity, and engage in activities for conservation andsustainability.

In order to prevent risks associated with product quality,
safety, and environmental pollution from the use of chemicals,
we have established a set of principles, and strictly
implement the approval and permission process for the useof new chemicals. All chemicals used in the workplace comply
with legal standards for storage, use, and disposal, and weapply internal standards that are more stringent than thelegal limits.

Environmental Education for Coexistence with People and Nature
Under our corporate mission, “To Create Healthy Tomorrow for the People and Planet with Wholesome Foods,” we havebeen carrying out various activities to respect biodiversity and promote its values. The Pulmuone Foundation has organizedenvironmental education programs such as "Good Cleaning Class," "Blue Sea Class," "Viruses and Earth Environment Class," and"Pick-up Campaign" for preschoolers and elementary school students. Going forward, we will continue to make a difference througheducation so that future generations can make our environment more sustainable and promote the coexistence of people and nature.

Good Cleaning Class
Educating students on cleaning by
making cleaning fun and cultivate thehabit of cleaning

Blue Sea Class
Online and offline education programs
to raise awareness of the importanceo f c o ex i s t e n c e w i t h t h e s e a , t h eseriousness of marine pollution, andactivities to protect the ecosystems

Viruses and the Earth Environment Class
Teaching about the causes of viral
infections and providing information on
how to prevent them from a scientificand environmental point of view

Pick-up Campaign
A follow-up program to environ-mental
education where children learn to pickup trash in their daily lives(Online program created in 2021 due to COVID-19)

Progress in 2022
Good Cleaning Class: 538 sessions, 12,187 participants(reached 108% of the target)

Viruses and the Earth Environment Class: 63 sessions, 1,618
participants (reached 126% of the target)

Blue Sea Class: 168 sessions, 3,985 participants(reached 168% of the target)

Pick-up Campaign: 19 times (reached 128% of the target)About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

52

Appendixn ronmenta ana ement
or orate t cSocial Responsibility Management
At Pulmuone, we support the growth of our employees. By creating a culture of learning and organizing competency training programs, we foster professionalism and support selfdevelopment and growth, which can lead to a virtuous cycle, enhance job satisfaction, and ultimately achieve the goals.

Talent Development
Talent Development System
In order to help our employees
to achieve their best job performance, we have developed aset of policies to strengthen
employee capabilities using
online and offline channels,
and support various educationand training programs. We areorganizing a wide of range oftraining programs for leaders
and team members including
female leadership courses
for diversity, and liberal arts
courses on the subjects ofhumanities and science. We
also provide KRW 1.2 million
per employee per year tocover training expenses tosupport their self-development.
Employees can use the fund to
take online and offline courses
such as E-learning or purchasetraining materials and books.

Corporate-wide Learning System
On-Boarding

Leadership Skills

Job Skills

Humanities/Science/Trends Self-directed

1stExecutive
management(O~EO)

2nd
Executive management OJT

Senior executive management course

3rdPCL
courseMiddlemanager Introductory(M/S)

Practitioner(P1-P3)training
LOHAS
for new
Academyhires /
POP
courseCorevalue
courseLeader's
managercoursePerforFemale
manceleaderDX
coaching
ship
FT
Leader course course Advan- course Education
ced

MKT
forum

Leaderpreparation
courseComBiz.
panyPL
Comwidemun- course DIPS
marketingicationcourse

FT
Basic

SERI
CEO

PBP course

Product
CusLeadertomer
1)
2)
ship
Intimacy

TrendsLiberal arts
courseOperational
3)
Excellence

SERI
PRO

HPO
develop-ment
supportHuman
LiteracyBiz. Trend

History, philosophy,
literature/science

Technology/social change

1) Marketing, R&D, 2) Sales, CS 3) Production, Logistics, SCM support organization, etc.

Developing
competencies
of knowledge
workersAbout Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

53

n ronmenta ana ement
or orate t c

Evaluation & Compensation
Goals & Plans
Pulmuone has developed digital talent training programs in line with the positions and roles of individuals.
Digital talent is divided into four groups: DX Leader, DX Tech Expert, DB Biz Expert, and DX Citizen. The goal
is to foster organizational members who understand the DX flow, have DX literacy, and are able to change
the way they work. The data analysis training program is designed to select personnel to work on DSF(Digital Smart Factory), acquire data analysis methodology, and identify and perform real-world tasks overthe course of 5 months.

Performance & Monitoring- Number of employees who participated in training courses (cumulative): 12,014 employees/ Training
hours: 86,449 hours / Average training hours per person: 13.2 hours
Digital Talent Development Plans
Pulmuone digital talent (categorized by target)

Subject to Digital Academy

Provided with external course if required

Category

Pulmuone leadership group

Definition

Deliver tangible results insupport of Pulmuone DX
strategy

Implement digitalproducts

Digitize the existingvalue chain

Innovate daily work
process

TargetTeam Leaders & Executive
Officers

Digital Innovation Office /IT OfficeDX platform organization

All other employees

DX Leader

DX Tech Expert

DX Biz Expert

DX key talent

DX platform building/utilization Relatively low relation to DX

DX Citizen

Training course will be provided
separately to executives and team leaders.

Management System
CSO(Corporate Strategy Office)(President)

Management by objectives
The annual target for major businesses and related competencies for eachindividual/team leader and higher-level employees are reflected in CfS (Career for
Success), an individual performance target. Performance management is conductedsemiannually so that each individual's performance is linked to the achievement ofteam’s target. CfS is evaluated once a year, but the progress is reviewed quarterlyor semiannually to manage, update, and supplement the process. This helps tomaintain a momentum and ensure more efficient performance management.

Evaluation of Organizational Contribution(Team-based performance appraisal)•Divided into 4 groups based on positions and roles (subject to talent development except for DX Tech Experts who
are trained by external IT training institutes)

General CEO

Pulmuone discusses ways to ensure fair HR management and support talentdevelopment at the corporate-wide level through Session C, an executive HR council
organized by the General CEO.

Learning Innovation Manager(Managing Director)

HR Development
Team

Based on the CfS evaluation results, the relative contribution of each division andteam is evaluated and divided by the team average to ensure fair evaluation.

360 Degree Multidimensional Evaluation
We have introduced a new evaluation method where feedback is provided
from various perspectives, including the employee, supervisor, colleagues, andsubordinates, rather than leaders unilaterally evaluating job performance. Then, thefeedback is collected and the identity of the evaluators remains anonymous.

Fairness and Diversity
Pulmuone does not tolerate any kind of discrimination for reasons of gender, origin,and disability, and strives for fair and reasonable evaluation and compensation. At
the same time, we are committed to promoting female leadership in order to achieve
our goal of 30% female executives by 2026 to support gender equality.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix54

n ronmenta ana ement
or orate t cWorking Environment
For the healthy growth and continuous development of employees, Pulmuone creates a work environment where employees can immerse themselves in their work and operates various
programs to support work-life balance.
Pulmuone Working Environment Programs•Reduced work hours for pregnancy/
parenting•Leaves for childbirth, paid parental
leaves (52 weeks,) leaves for prenatal
check-up•Childbirth leaves for spouse,family care leave•Childcare assistanceFamily- •Nursing
rooms
friendly•In-house daycare center
Programs•Congratulatory money for childbirth•Tuition for children•Congratulatory money for school
enrollment•Congratulatory money for marriage(5 anniversaries-worth)•Support for disabled children•Support for funeral arrangements

A family-friendly system
Training•LOHAS nutrition counseling
Healthcare •Group insurance and individual pensions•Medical check-ups

Reduced Working Hours During Pregnancy
We apply reduced work schedule of up to 2 hours per day without loss of pay to our female
employees during the first 14 weeks of pregnancy or after 34 weeks, which is beyond thestatutory requirement period. This is to preserve the purpose and effectiveness of the system tocover the case where pregnancy is found late in the first trimester and take pre- and postnatal
leave beforehand.

Leaves for Prenatal Check-up
We offer leaves for prenatal check-ups for spouses to support gender equality in response to
the increasing roles of men in childbirth and childcare.

Lifestyle•Optional Welfare Points•LOHAS Points•Assistance for purchasing the company
products•Public interest loans•EAP (Employee Assistance Program,
psychological counseling)

Rewards•Long-term employment awards•Excellent conduct awards

Leisure •Support for condominium
Programs •Support for club activities•Leaves for family-related matters•Annual leaves, summer vacation leaves,
Leavesofficial leaves& Work•Remote work, flexible work schedule
Schedules(Optional work hours, discretionary work
hours, flexible commuting)•E-learning expense support•Foreign language training support

In-house Daycare Center
We operate a 495m2 in-house daycare center on the fourth floor of our Suseo Office in Seoul.
The daycare center uses eco-friendly materials and has an open space (Dodamtteul) whereparents and children can play together, considering the health and emotional developmentof children. It is under the management of Hansol Hope for Education Foundation to support
the continuity of education from ages 1 to 5 through high quality curriculum and educational
programs.

Support for Children's School Enrollment
We allow employees to apply for leave once in March when their child enters elementary school
and choose either work from home or take five days of unpaid leave, which helps ease theburden of employees who have preschoolers.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

55

Appendixn ronmenta ana ement
or orate t c

Work-Life Balance Programs
LOHAS Nutrition Counseling
The LOHAS Nutrition Counseling Program is designed to provide employees with personalized
health solutions based on their conditions, including body composition and blood pressure.
LOHAS Dietary Assessment Test is conducted by a clinical nutritionist at our workplace andconsists of an 8-week program (5 sessions at 2-week intervals) and follow-up sessions (4sessions at 1-month intervals).
Any Pulmuone employee can join the program.

EAP (Employee Assistance Program)
The EAP (Employee Assistance Program) is designed to help employees who are experiencing
psychological distress to restore their quality of life through counseling, and improve
productivity by helping them to be more engaged in their job. Up to 8 EAP sessions areavailable for individuals along with group counseling for each unit.

Insurance and Pension Programs
In addition to medical insurance, industrial accident compensation insurance, employment
insurance, and national pension, Pulmuone provides insurance and pension programs tohelp our employees prepare for unexpected accidents, which may occur during work, and life
after retirement. To promote employee benefits, we have purchased group insurance policies
to provide compensation in the event of an accident or illness. We also have a DB (defined
benefits) pension system that provides company support until the time of retirement and can be
paid even after retirement.

2022 Defined Benefit (DB) Pension Management
No. of pension policy holders

395

Amount under management (KRW 1M)

20,611* Pulmuone Corporate2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix56

n ronmenta ana ement
or orate t cCommunication with Employees
Employee Communication Policy (Channels & Goals)
The members of Pulmuone are key stakeholders who work together with the aim of achieving the company's mission and vision. The understanding and cooperation of employees are essential forthe company to successfully make major decisions and implement its policies. With this in mind, Pulmuone engages its union representatives in the communication process by sharing information
through a quarterly labor-management council meeting when any significant changes in business operation are expected. In addition, we leverage multiple communication channels to share thecorporate vision, aspiration, management status, and other information with employees, giving them a sense of ownership and an opportunity to participate in the management process.

In-house Communication Channels / Activities

Feedback Program & Performance※ Consensus through online and offline communication channels

OnlineCommunication through Green Table Content in
2022

KWP,
Knowledge
WorkerPlatform

LaborManagement
Council

Meetingwith theGeneral CEO

GrievanceCounselingCenterHuman Rights
Management
Committee

Environmental
SafetyCommittee

OfflineChuseok holiday session through [Bringing a
Healthy Tomorrow] in 2022 (monitoring system)

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

57

n ronmenta ana ement
or orate t c

Win-win Labor-Management Relations
Labor-Management Policy

Communication Status

Pulmuone guarantees its employees the freedom of association and the right to collective
bargaining in accordance with Article 20 of the Universal Declaration of Human Rights and theILO* Fundamental Conventions (Freedom of Association and Protection of the Right to Organize
Convention). In accordance with the Constitution and the Trade Union and Labor Relations
Adjustment Act, Pulmuone fully guarantees its employees the right to establish a labor union or
another form of representative body, giving every employee the right to join a labor union.

Pulmuone holds the Open Committee every quarter to deal with employees' grievances, listen to
their complaints about labor practices that management did not understand, and share solutions
for resolving them. The Open Labor-Management Committee means a labor-management
council defined by the Act on the Promotion of Worker Participation and Cooperation. In order toprevent safety and health issues at the business sites, Pulmuone has organized the Industrial
Safety and Health Committee at the legally subjected sites and held quarterly meetings. We
also have the Factory Safety Committee and the Industrial Safety Working Group for domestic
manufacturing and logistics business sites, including other business sites.

Joining Labor Union and Collective Bargaining Rates
Under its own labor union rules, Pulmuone employees are entitled to join a labor union. We
prioritize safety and security in the workplace and ensures full compliance with occupationalsafety laws and provide a safe working environment to protect our employees from risks
caused by their work. Collective bargaining takes place when renewing the collective agreementand determining a wage increase. Wages and collective agreements are determined in evennumbered years; on odd-numbered years, only wage agreement is renewed. Every union
member is subject to the collective bargaining agreements made by each respective union, andthe company maintains good faith in collective bargaining process with labor unions.

Labor union membership rate
Category

Unit

2020

2021

2022

Labor union
membership rate

%

83.2

88.4

87.9

* Membership qualification: all employees in domestic production facilities

Grievance Handling Process
1. Complaint received

A labor commissioner raises a complaint on behalf of members, which isincluded in the agenda.

2. Complaint handled

After checking the facts, the issue is assigned to relevant departments to takenecessary measures.

3. Feedback

Outcome is disclosed at the next quarterly labor-management council meeting.

4. Objection

Employees who do not agree with the outcome can raise objection.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

58

n ronmenta ana ement
or orate t c

Products & Services
Sustainable Food Policy
It is essential to establish a corporate-wide management system for sustainable foodproduction as it requires thorough hygiene, safety, and nutrition throughout the entire process,from raw materials and manufacturing processes to packaging, logistics, and storage. Since its
foundation, Pulmuone has been committed to providing wholesome foods for consumers andtheir families and establishing a rigorous system for food safety management and infrastructure
for the compliance with these standards.

Food Poisoning Prevention System
The food poisoning control team has classified foods which are manufactured, distributed, and sold in allof our business sectors. This classification work is based on the types of ingredients, possibility to affectthe hazardous level in food manufacturing processes, and ways the food is consumed by consumers. We
also conducted more rigorous food poisoning prevention management for high-risk products. For these
activities, we have benchmarked the USDA's* on-site management system at its production front-lineby dispatching monitoring personnel to suppliers that use or produce ingredients with the risk of foodpoisoning to conduct on-site quality management. We also launched the IoT-based (Internet of Things)
real-time monitoring system to control CCP** processes and microorganisms in the production process.
* U.S. Department of Agriculture, **Hazard Analysis and Critical Control Point

Food Poisoning Prevention Process
Step Classification
Evaluation of potentially1hazardous foods
2

Resident management

3

Preventive care

4

Full inspection

5

Real-time monitoring

Description
Evaluating potentially hazardous foods for new products, evaluating potentiallyhazardous foods for retail products
Conducting resident management of production suppliers based on the results
confirmed through Pulmuone’s evaluation of potentially hazardous foods
Applying EPM (Engineering Project Management) to suppliers that manufacture “readyto-eat (RTE) foods with no sterilization process after packaging” and “foods that canbecome re-contaminated in the environment from heat treatment to packaging process”
Conducting full inspection of potentially hazardous foods that are manufactured,
produced, and distributed in Steps 1–3
Establishing and operating CCP real-time monitoring system

Promotion of Health & Nutrition
Pulmuone has established the Pulmuone Nutrition Management Standards to reduce theconsumption of sodium and sugars and implement nutrition management programs for its
products. Based on the new standards, the Corporate Technology Office selected product groups
that tend to add sodium, sugars, and saturated fat in the process of production and set a limit tothese ingredients per serving to ensure compliance with the standards.

Goals & Plans
It is essential to establish a corporate-wide management system for sustainable food production
as it requires thorough hygiene, safety, and nutrition throughout the entire process, from raw
materials and manufacturing processes to packaging, logistics, and storage. Since its foundation,
Pulmuone has been committed to providing wholesome foods for consumers and their families
and establishing rigorous food safety management schemes and infrastructure to maintain thesestandards.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix59

n ronmenta ana ement
or orate t cExpansion of Personalized Health Functional Food Market
There is a steady increase in demand for tailor-made foods for individuals that recommend customized diets and nutrients for customers’ health. In July 2022, Pulmuone Health & Living launched
the "My Personalized Nutrition Assistant" app which analyzes individual health data with AI customized algorithms based on its existing personalized health functional food service. Going forward,
we are going to expand the market for personalized food that provides customers with peace of mind, personalized dietary recommendations, and management.
Main Features of My Personalized Nutrition Assistant App
My Personalized NutritionAssistant App
My data accumulation (medical check-up and medication, questionnaire)•Integrated algorithm to recommend health functional foods through expert advice•Personal health monitoring (medical check-up, medication information, microbiome) Measurement of change inhealth status & community

Measurement of change
in health status & community

Personalized recommendations fordisease prevention•Checking changes in health through microbiome•Individual and intergroup health challenge community•Personalized diets based on an individual's gut
microbiota + health functional foods

AI health coaching•ICT + IoT-based super-personalized
AI health coaching

IOT

Daily health data
• ICT: Body fat, diets, steps, sleep• ICT dispenser: Real-time health information

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

60

n ronmenta ana ement
or orate t cExpansion of Design Meal Care Market

Progress in 2022

As a total dietary healthcare platform, Design Meal offers customized meals for infants (babyfoods, infant foods), care meals (Medi Care, Senior Care), and nutrition/calories balanced meals(weight control meal plan, etc.) designed for customers with different life cycles. Going forward, we
will continue to expand our dietary healthcare sector to meet more personalized consumer needs
and develop into special medical applications.

Pulmuone conducts more than 22,000 safety and health impact assessments every year,
prioritizing food safety as the largest risk in the food industry, in order to ensure the safety of ourcustomers, build trust and create values.

Design Meal App

No. of Safety & Health Assessments over the Past Three Years
Design Meal
Customized
meals for babies
and infantsCare meals

Meals withbalanced
nutrition/ calories

Baby foods,
infant foods(main dish, side
dish, snack,beverage,etc.)

Senior Care(senior friendly
foods), Medi
Care (medical
nutrition
products, dietary
management
foods,
supplementary
foods)

Salad, one bowl
meal (deopbap/
deopmyeon),lunchbox,
beverage, snack,
HMR, etc

Senior Care Meals• Introduced in October 2021, designated products #1-8 under
Elderly-Friendly Welfare System -> designated 16 additional products
in 2022 (confirmation required)

Medi Care Meals• Launched Diabetes Care Meal in July 2021 -> Growth by 3.4 times
in the first half of 2022 (vs. 2021 H2)• Launched Dietary Meal Service for Cancer Patients (dietary meal
management food for cancer patients) in November 2022

2020

2021

2022

23,83422,01722,885* Based on the number of samples commissioned to the Laboratory Information
Management System (LIMS) used by the Food Safety Center.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix61n ronmenta ana ement
or orate t cCommunication with Customers
Pulmuone recognizes the voice of the customers as valuable assets to keep customers satisfied and improve their experience with its products. Through various communication channels
including Customer Satisfaction Center, Q&A section on the website, social media, online shopping malls, and chatbots, we collect feedback, complaints and suggestions, and use them tomake improvements.
Customer Communication Policy
We are committed to minimizing customer complaints by analyzing the voice of the customers collected through the Customer Satisfaction Center, a department dedicated to customer satisfaction,
identifying the causes of their complaints about products and distribution, and preventing recurrence (mid- to long-term goal: maintain the customer satisfaction survey score over 93).
Complaints Handling Process※ Go to Customer Satisfaction Center

Pulmuone complies
with the Consumer
Dispute Resolution
Criteria for each
item and endeavors
to resolve disputes
between consumers
and companies.

①

②

③

④

⑤

Reception

Site visit

Analysis of cause

Taking measures

Reporting to customers

Email, Website, ARS
Call, Visit, Post

Quick visit (regional
franchise managers
and CS staffs)and
situation identification

Quality Management
Office, Factory QA, Food
Safety Center

Cause analysis,countermeasures andeducation to prevent
recurrence

Compensation based onreporting results andthe Consumer Dispute
Resolution Criteria

Progress in 2022
VOC Data Collect Results in 2022
Total

161

Research Orders
beforeandpurchase payment

18

35(Unit: 1,000 cases)

Use ofproducts

Delivery27

25Servicemanage- Company
ment

15

93.8
2021

41

Managing Department & System
General CEO

Results of CS Center's Satisfaction Survey

CSO (Corporate Strategy Office, President)(Unit: point)

92.1
2022

* Customer satisfaction scores differ from those in the 2021 Integrated Reportdue to a change in the methodology for calculating customer satisfaction.
SCM Planning Office (Vice President)

CS Department

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

62

Appendixn ronmenta ana ement
or orate t cInformation Security
Pulmuone is taking proper security measures to protect
customer personal information, company assets and trade
secrets including recipes for major products with thegrowing risk of cybersecurity threats, and is strengthening
the information protection organization that can manageand operate the security infrastructure. We are taking
administrative, technical, and physical protection measures indomestic and overseas business units by appointing a Chief
Information Security Officer (CISO) who supervises information
protection work with specialized knowledge and a Chief Privacy
Officer (CPO) who supervises personal information work. We
have also established a Risk Management Committee attended
by executives from each business unit to deliberate and decide
on major information protection issues.
In order to manage customer information and information
assets more systematically and efficiently, Pulmuone has
established its own information protection regulations, policies,and guidelines. The regulations include the highest standards ofgood conduct that employees must follow for the protection of
personal information and information security, and the personal
information protection policy and information protection policy
allow employees to work more securely by specifying further
details.
Pulmuone Information Protection Regulatory System
Information Protection Regulations
Privacy
PolicyInformation
Protection Policy

15 Relevant
Guidelines

Goals & Plans
In order to manage customer information and information assets more systematically and efficiently, Pulmuone has establishedthe information protection regulations, policies, and guidelines. The regulations include the highest standards of good behavior
that employees must follow for personal information protection and information security, and the personal information protection
policy and information protection policy allow employees to work more safely by further specifying the details.
1. Introduced an integrated log management system to enhance cyber breach response capabilities : An integrated log management system has been
established to secure visibility into cyber threats and security violation of customer data and trade secrets. The logs of individually operated information
security systems are collected and managed, enabling accurate and fast analysis through correlation analysis among events.
2. Advanced security systems : Outdated security systems have been replaced with the latest ones, such as IPS* and internal firewall, to detect and defend
against new threats. By upgrading the security systems, we are able to respond to cyber-attacks and secure service availability.
3. Strengthened internal security authentication : 2 factor*** based on FIDO*** has been applied to key systems that hold trade secrets and personal data. By
applying enhanced user authentication, we have strengthened security against phishing, social engineering, and brute force attacks.
4. Enhanced the training for personnel with access to personal information : A curriculum for personal information is conducted twice a year according to thecharacteristics of each job (e.g., roles, legal entity) based on the company's current status.
5. Vulnerability testing and simulated hacking on external web services : Vulnerability testing and simulated hacking of websites are conducted for major
customers and suppliers followed by necessary actions on detected vulnerabilities.
6. Established and revised security regulations and policies : The security regulations, guidelines and privacy policy, which serve as the basis for security andprivacy activities, have been updated to reflect changes in regulations and the business environment.

Progress in 2022
In November 2022, Mr. Song Ki-jung,
Pulmuone's CISO (Chief Information
Security Officer), was awarded a citationby the Ministry of Trade, Industry
and Energy for his contribution to theprotection of industrial technologies andnational development.

Management System
General CEO
Risk Management
Committee

CISO

CPO of Business Unit

Security Manager
Personal information part

Information protection partSecurity Manager ofBusiness Unit

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix63n ronmenta ana ement
or orate t c

Sustainable Supply Chain
Pulmuone actively promotes mutual growth with its suppliers to ensure sustainability in its supply chain, while protecting the human rights of all stakeholders and building an eco-friendly
supply chain.

Sustainable Supply Chain Policy
Pulmuone's entire business activities, such as manufacturing products and providing services, are closely linked to various supply chains. All stakeholders affected in this process should be
respected as human beings, and should not be treated mentally or physically in an inhumane way. The management of environmental and social impacts and risks that may occur in all processesof product and service production, such as procurement, transportation, manufacturing, and logistics of raw and auxiliary materials, is essential not only for Pulmuone, but also for all suppliers andstakeholders. Pulmuone is making various efforts to build a sustainable supply chain.

Responsible
Procurement

Pulmuone Purchase Policy
The Purchase Policy applies to all direct and indirect purchases of goods and services by the employees of Pulmuone and all its business units (subsidiaries). It states rules on purchase practices such as theprohibition of unfair acts and bribery and security of supplier information (Chapter 5), matters related to the management and support of suppliers including performance evaluation (Chapter 8), and definitions
and management processes for types of risks and other ESG factors such as compliance, human rights, ethics, and environment (Chapter 9).
* 2022 key raw material purchases (Unit: EA) - Eggs: 21,527,240 / - White beans: 13,222,370 / - Soybeans: 3,271,967

Green Purchase Guidelines
Pulmuone has established guidelines to consider eco-friendly practices and materials from suppliers in the early stages of the purchasing process to minimize the impact of food on the human body and theenvironment, efficiently use limited resources and create a sustainable environment and human life.

Code of Conduct for Suppliers
Pulmuone established a Code of Conduct for Suppliers to help our suppliers fulfill their corporate social responsibility and ensure that suppliers agree to comply with it while doing business with us. The
Code of Conduct for Suppliers specifies Pulmuone’s requirement for our suppliers to build a safe working environment, respect the human rights of their employees, and fulfill their environmental obligations,while conducting their management activities in an ethical manner. Pulmuone amends the Code of Conduct through ongoing communication with suppliers and visits the supplier's operations to conduct due
Audit
Diagnosis diligence to make sure they abide by the code.
/AuditPulmuone Food Safety Management System
Pulmuone conducts supplier audits once a year based on the checklist of 220 items in 17 sections from the PFSMS (Pulmuone Food Safety Management System) Manual. This is a set of guidelines for
Pulmuone's food safety practice that reflects international standards, such as ISO 22000, FSSC 22000, ISO/TS 22001-4, SQF, and BRC, based on domestic laws and regulations and HACCP. To help suppliers
understand, apply, and comply with the PFSMS, we have developed a manual that defines the requirements of each section and distributed them through our sourcing portal and food safety conferences.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix64

n ronmenta ana ement
or orate t c

Mutual Growth System
Our goal is to grow together with our supply chain while considering their sustainability. Various support programs have been implemented to help with their finance, training, equipment, and certification. In
recognition of these efforts, Pulmuone Food gained the "Excellent" rating in the Shared Growth Index, which is a comprehensive performance evaluation of shared growth and fair trade agreement.
Supportfor
MutualGrowthMutual Growth Operation System
Pulmuone operates the Mutual Growth Office and the Mutual Growth Committee as its consultative body with the aim of implementing fair subcontracting and realizing mutual growth with partners. The
Mutual Growth Committee holds a fair trade meeting on a monthly basis to prevent any violation in subcontracting and proactively deal with suppliers’ opinions and operates and supports various programsfor mutual growth.
General CEO

CSO (Corporate Strategy Office) (President)

TISO Management Office (Vice President)

Management Diagnosis Department (Managing Director)

ESG Supplier Management System
Planned Areas

Executed Areas

Identify supply chain

Establish policies

Evaluate ESG risks

Review evaluation
results and feedback

Establish ESG policies
for supply chain

Set targets and cycles

Analyze final data
(identifying risks)

Recommend
improvement measures(high safety risks)(Internal) Add points
for suppliers with ESG
training and analysis

Set directions

Set the scope of compliance and methods

Conduct online selfevaluation

Produce the results

Support one-point
consulting(External) Reflect the
selection of win-win
support programs

Select areas ofmanagement(e.g., Critical Supplier)Conduct due diligence

Share results and mitigate risks

Reflect performance

Set monitoring/
disclosure cycleAbout Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

65

Appendixn ronmenta ana ement
or orate t c

Win-win Cooperation

Pulmuone has planned and implemented a project for an ESG (Environmental, Social andGovernance) diagnosis support targeting its suppliers from the second half of 2021 in order toshare its experience and know-how with suppliers in the pursuit of ESG. However, in light of thereality that most of our suppliers are small and medium-sized companies, we are focusing on
providing supports to help them promote optimized ESG management.

To ensure fair trade with suppliers and subcontractors, Pulmuone has adopted four main
action plans to promote win-win cooperation between large companies and SMEs (guideline)
established by the Fair Trade Commission.

No. of companies

Risk Monitoring of Supply Chain Sustainability

High risk group
20.8%

Potential risk group75%

Low risk group
4%

0

0
10~20

20~30

30~40

40~50

50~60

60~70

Score

The key action plans based on the ESG analysis of suppliers in 2022 include ▲ raising
ESG awareness, ▲ supporting the improvement of ESG management capabilities, and ▲implementing a system for measuring GHG emissions. To raise ESG awareness, we supported
ESG and environmental training in December 2022 and will support one-point ESG consulting
for suppliers in 2023. The GHG emission monitoring system is currently under construction and
expected to be completed in the second half of 2023. Suppliers will be able to access the system
to manage their own GHG emissions.

Four Areas of Action for Mutual GrowthCategory

Description

1. Practices to conclude desirable contracts for mutual cooperation between
large companies and SMEs

•Establish infrastructure for concluding a contract•Conclude a contract guaranteeing self-determination•Diligently carry out contract based on the agreement andrelevant laws and regulations

2. Practices to ensure fair selection (registration) of suppliers•Promote fairness in the standards and procedures forselecting a supplier•Establish standards for canceling supplier registration andfairness in procedures

3. Practices to install and operate internal subcontracting review committee•Organize an internal subcontracting review committee•Conduct preliminary review for selecting a supplier,contracting, and determining price•Conduct preliminary review for the standards and proceduresfor contract termination of suppliers

4. Practices to correctly issue and conserve documents in subcontracts•Issue various documents in the process of subcontracting•Conserve issued documents•Establish the practice of issuing and conserving documents

Progress in 2022
Mutual Growth Programs
Shared Growth Fund(raised by Pulmuone)
Financial support
for suppliers

2.5

rect

ort
e

on

120 m on4 on

ort

Payment throughWin-win Payment System

232.5

on

Building digital clusters

6 com an e
120 m on

AQS* certification

3 com an e

Status of Critical Suppliers (as of June 2023)
No. ofsuppliers

597

companies

No. of criticalsuppliers

44 (18.5%)

companies※ Scope of suppliers: Suppliers managed by the CSO(Corporate Strategic Office) and suppliers for directpurchase(Excluding those not subject to management[e.g., one-time/short-term contractors])

Support for “tomorrow's
fill deduction”

2

er

orte

* Animal Quarantine Service

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernance

Response to
FSVP**/HARPC***

18 com an e

Direct support

120 m on

for

ta c

ter

k

ana ement
ana ement

66

Appendixn ronmenta ana ement
or orate t c

Grievance Handling for Suppliers
We have online channels for communication with suppliers to collect reports andsuggestions, and resolve disputes. We also make sure our employees promote the grievance

Mixed support

4

on

for m t a ro t f n

Technical data
deposit agreement

1 ca e 248 farmchannel when signing contracts through the Sourcing Portal and Shared Growth Newsletter.
In 2022, there was one case of supplier grievance raised through the grievance channel andno safety and health-related case. 100% of the supplier grievances were resolved.

Training for domestic green bean producers

Grievance Handling Process for Suppliers** Foreign Supplier Verification Program*** Hazard Analysis and Risk-based Preventive Controls

Suppliers
Reports/
Suggestions

Training Support for Suppliers in 2022
No. of programs

Pulmuone
Confirm reports/suggestions

4
Training hourso r

No. of participating employees of suppliers392

art c ant

Notify of
the result

7

Implement
mediation

Notifyof the result

Dispute Resolution Process with Supplierseon

No. of suppliers participating in training

12

Deliberate

If necessary for case,submit to the Fair
Trade Committee

No. of training sessions

ro ramReview validity

381

er

Request for
dispute resolution

Check the claims

Review validity

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix67

n ronmenta ana ement
or orate t cSocial Value Creation
Pulmuone's social contribution is aligned with CSV (Create Shared Value) which is based on sustainable social value creation instead of one-off projects. We define and implement CSV
strategies for Pulmuone and the Pulmuone Foundation to create economic values and even meaningful social values through our intrinsic business. Pulmuone generates economic values
by providing products and services with LOHAS spirit to customers, while the Pulmuone Foundation contributes to creating social values through LOHAS social contribution programs. Both
Pulmuone and Pulmuone Foundation build a virtuous circle for CSV through their core businesses, thereby contributing to the improvement of human health and the sustainability of Earth.
Goals and Plans
CSR Policy In line with our mission, “To Create Healthy Tomorrow for the People and Planet with Wholesome Foods,”
the Pulmuone Foundation conducts social contribution activities by raising awareness among people of all ages on the
The Pulmuone Foundation fosters global citizenship andknowledge and lifestyle that contribute to sustainable growth in the areas of healthy food, environment, and society.
helps children contribute to creating a sustainable world
through food, environment, and social education for
Pulmuone Foundation Value Systemchildren and people of all ages. We organize conscious
education programs with a focus on healthy food in
MissionOur mission is to create a sustainable world where people and people, and people and nature coexist.
consideration of individual health and the environment, as
well as programs on knowledge and lifestyle to support
Vision10-year change through education for the next generationa sustainable environment. By conducting education
to promote a healthy society, we are contributing to
Individual
Environment
Societysustainable growth through scientific thinking, a sense of
Preserveahealthyenvironment
Achieveahealthysociety
Increase
healthylife
expectancy
community, and respect for diversity.
Business
Provide education projects for 600,000
people by 2030 to increase healthy life
expectancy of individuals

Alignmentwith SDGs

Areas

Provide education projects for 300,000
people by 2030 to contribute to the
reduction of GHG emission

Provide education projects
for 100,000 people by 2030
to realize a sustainable community

Social Education
In 2022, we launched Education for Empathy and Coexistence, a community
program based on scientific thinking. The Pulmuone Foundation is committed tocreating a sustainable community through education.
Program

GOOD HEALTH
AND WELL-BEINGQUALITYEDUCATIONQUALITYEDUCATION

CLEAN WATER AND
SANITATIONRESPONSIBLE
CONSUMPTION
AND PRODUCTION

Plant-forward,
Nutritional balance

Healthy lifestyle

Animal welfare• Wholesome food education
for kids• Wholesome food education
for adults• Wholesome food education
for senior citizens• Kimchi school education• Good Cleaning Class• Viruses and EarthEnvironment Class• Wholesome food education
for animal welfare

CLIMATE ACTION

LIFE BELOW
WATER

LIFE ON LAND

Eco-friendly• Blue Sea Class• Viruses and EarthEnvironment Class• Pick-up Campaign

QUALITYEDUCATION

REDUCEDINEQUALITIESCommunity awareness

Humanities andscientific thinking

Education for Empathy and CoexistenceFor

Elementary school students (ages 8~13)

GoalCreate sustainable communities by fostering a sense ofcommunity and scientific thinking• Child and Youth Peace Education(new))Description• 2 sessions for each group of students• Understanding the concept of hate and discrimination throughmedia literacy and fostering empathy and a sense of community
with keywords: Self-reflective consciousness, mirror neurons,
metacognition, and scientific thinking.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

68

Appendixn ronmenta ana ement
or orate t c

Progress in 2022

Wholesome Food Education Project
Wholesome food education for
adults (parents, teachers)

ProgramWholesome food education for kids

For

Preschool children (ages 6~7)
Elementary school students(ages 8~13)
Elementary school students(ages 9~11) and their parents

Parents, childcare providers,dietitians, college students

Goals

Understand wholesome food andform good dietary habits early inchildhood

Implement parents’, teachers’, anduniversity students’ healthy dietary
habits as good food guides

Descrip-tion•One or two sessions for target•Four programs: Nutritional
Balance and Sense of Taste, Food
Labeling, Animal Welfare, ParentsChildren•Education on wholesome dietary
habits, cooking practice

Wholesome food education forsenior citizens

2022 Results of Wholesome Food Education
Category•One session•Dietary habits to lower sugar
intake•Education on GL diet theory•211 diet-related education,cooking practiceSenior citizens (ages 65+)

Develop a good lifestyle (diet,sleeping, and exercise) for theelderly to improve their health•Healthy lifestyle education•1:1 personalized nutrition
counseling•Integrated dietary habit
improvement program(e.g., provision of essential healthfunctional foods, etc.)

Wholesome
Food

Category

Wholesome
Food

Program

BeforeAwareness (K)After
ChangeBeforeAttitude (A)After
ChangeBeforeBehavior (P)After
Change1. Nutritional Balance andSense of Taste

63.4

84.6

21.2▲

57.5

75.9

18.4▲

68.8

77.5

8.7▲

2. Food Labeling

67.0

95.0

18.0▲

35.7

69.5

33.8▲

35.8

59.3

22.5▲

3. Animal Welfare

62.5

84.5

22.0▲

40.6

80.2

39.6▲

53.8

62.0

8.2▲

4. Parents-Children

62.6

91.9

29.3▲

61.3

71.8

10.5▲

73.0

83.3

10.3▲

Average

64.1

85.2

21.1▲

45.9

75.2

29.5▲

55.4

67.3

11.9▲

Program
1. Nutritional Balance andSense of Taste
2. Food Labeling
3. Animal Welfare
4. Parents-Children
Average

Satisfaction

Recommendation

87.4

80.4

87.3
92.6
87.8

78.0
88.6
79.9

Environmental Education Project
Cleanup Campaign

Elementary school students(ages 11~13)

Preschool children(ages 6~7)
Elementary school students(ages 8~13)

Good Cleaning ClassFor

Preschool children(ages 6~7)
Elementary school students(ages 8~13)

Elementary school students(ages 11~13)

A healthy lifestyle education
program to build cleaning
habits in early childhood

Prevent viral infectious
Help protect the marine
Spread the culture of ecodisease by educating on theenvironment by raising
friendly practice throughcauses of viral infection andawareness on the importancepreventive measures based voluntary environmental cleanof the ocean and the severity
up activities
on science and environmentalof marine pollution
perspectives•One session for each groupof students•Cleaning habit education to
help children enjoy the dailyclean-up•How to ventilate, tidy up,
sweep, and wipe away andtackle the problem of fine dust

•One session for each groupof students•Learn about the importanceof the ocean•Learn about the seriousnessof marine plastic pollution•Teach how to care for andpreserve the ocean

Goals

Descrip-tion

Blue Sea Class

Viruses and EarthEnvironment Class

Program•One session for each groupof students•Causes of viral infections
and prevention of COVID-19
infection•Causes and prevention of
zoonoses•School clean-up: Cleaning
activity around the school•Pulmuone clean-up:
Environmental clean-up
activities for me and theearth to practice in daily life
through an online platform

2022 Results of Environmental Education
Category

Environment

Category
Environment

Program

BeforeAwareness (K)After
ChangeBeforeAttitude (A)After
ChangeBeforeBehavior (P)After
Change1. Good Cleaning Class

63.8

79.8

16.0▲

64.2

72.6

8.4▲

64.8

68.6

3.8▲

2. Blue Sea Class

84.1

90.0

5.9▲

57.0

66.0

9.0▲

69.4

75.3

5.9▲

3. Viruses and EarthEnvironment Class

79.0

89.1

10.1▲

55.7

65.0

9.3▲

52.3

57.4

5.1▲

Average

71.6

83.9

12.3▲

61.0

69.6

8.6▲

64.3

68.6

4.3▲

Program
1. Good Cleaning Class
2. Blue Sea Class
3. Viruses and EarthEnvironment Class
Average

Satisfaction
82.6
85.6

Recommendation
74.9
79.0

81.6

76.7

8.3

76.3

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix69

n ronmenta ana ement
or orate t cGovernance
Governance
Pulmuone Corporate Governance Charter
Under its corporate governance charter, Pulmuone is committed to taking the lead in establishing effective corporate governance to protect the rights and interests of its shareholders,customers, employees, suppliers, local communities and other stakeholders through fair, transparent, and responsible management under the supervision of its independent Board of Directors.

Pulmuone CEO Meetings
Pulmuone holds CEO meetings to intensively discuss major management issues that

Session A

Establish strategies to achieve mid-term strategic goals and discuss major issues

Session B

Check the status of the annual business plan and discuss major issues

including the general CEO, check the status of each major management issue, discuss

Session C

Check the status of talent management and discuss major issues

related risks, and set goals and make decisions until the next meeting. Meetings for

Session D

Check ESG management and environment/safety/heath-related status and discuss
major issues, decision-making, and matters submitted to the board meetings

are categorized as Session A (mid-term strategy), B (annual business plan), C (talentmanagement), and D (ESG and environment/safety/health). The CEOs of each business,

Sessions A through D are held twice on a semiannual basis.

Equity Structure
Equity Structure and Dividend Policies
Pulmuone Corporate has established an operating holding
company that meets global standards by holding 100% of theshares of all of its subsidiaries and sub-subsidiaries*. Its agile andeffective decision-making system prevents any conflict of interest
among shareholders and unifies the company by establishingthe “One Company” system. In November 2022, Pulmuone
Food and Culture established Pulmuone Together as a wholly
owned subsidiary with the goal of providing jobs for people withdisabilities and employing various types of professionals.
* Excluding joint ventures

Pulmuone Equity Structure (Summary)
Pulmuone Foods Co., Ltd.
(100%)

Pulmuone
VietnamCo., Ltd.(100%)

Pulmuone
Green Juice
Co., Ltd.
(100%)

Pulmuone Food and CultureCo., Ltd. (100%)

FoodmerceCo., Ltd.
(100%)

Pulmuone
U.S.A., Inc.
(100%)

Pulmuone Health and Living
Co., Ltd. (100%)

AsahicoCo., Ltd.
(100%)

Shanghai
PulmuoneFoods Limited(100%)

Danone Pulmuone Co., Ltd.
(69.3%)

BeijingPulmuone
Green Foods
Limited(100%)

Pulmuone
Foods
Production
SubsidiaryGroup**

Pulmuone Waters Co., Ltd.
(70%)

Exofresh
Logistics
Co., Ltd(100%)

PulmuoneFoods China
Limited(100%)** The companies included in the manufacturing subsidiaries and the respective shares are as follows: PPEC Chuncheon/Uiryeong/Eumsung Fresh Noodle/Eumseong Namul (100%),
PPEC Global Kimchi Co., Ltd. (50%), Sinseon Natto Co., Ltd. (81%), PTA Agricultural Union Corporation (99.9%), Pulmuone Kibun Co., Ltd. (66%), and Pulmuone IN (100%).

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

70n ronmenta ana ement
or orate t cComposition of the Board of Directors
Pulmuone invests its utmost efforts to build advanced governance with review and balance between the BOD and the management and to enhance shareholder value. As of June 2023, there area total of 10 directors at Pulmuone, and the ratio of independent directors is 70.0% (7 directors). Nam Seung-woo, other non-executive director, was appointed as the Chairperson of the BOD, and
Lee Kyoung Mi was appointed as the independent lead director at the general meeting of shareholders in March 2022. The term of directors is 3 years, and they may be re-appointed at the general
meeting of shareholders. However, the term of an independent director cannot exceed six years in accordance with the Commercial Act.
Board Members
Job Title

As of end of March 2023
Name
Lee Hyo-yul

Gender (Age)Male(66)

Date of Appointment

Major Experience

No. of Other Mandates*

No. of Shares Owned

13.03.29**

Present: General CEO of Pulmuone Corporate
Former: CEO of Pulmuone Foods Co., Ltd.

N/A

85,750N/A

0Executive Director
Other Non-executive
Director

Independent Director

Lee Sang-boo

Male(61)

18.03.30

Present: Pulmuone Corporate Strategy Officer
Former: Pulmuone Food & Culture Business Support Officer

Nam Seung-woo

Male(71)18.03.30

Former: General CEO of Pulmuone Corporate

N/A

21,735,780

Lee Kyoung Mi

Female(49)19.03.29

Present: Professor at Business School of Seoul National University
Former: Professor at Yonsei School of Business

10

Kim Young Whan

Male(66)

20.03.27

Present: Director/CEO of AIRI
(Artificial Intelligence Research Institute)
Former: CEO of KT Networks

1

0

Shim Sue Ohk

Female(61)20.03.27

Present: Professor of EMBA at Sungkyunkwan University
Present: Independent Director, Lotte Shopping
Former: Senior Executive Vice President of Samsung Electronics
Global Marketing

10

Won Hye Young

Male(72)

21.03.25

Present: Co-president of Well Dying Movement
Former: Member of the National Assembly of the Republic of Korea

00

Han Chan sik

Male(55)

22.03.30

Present: Attorney, Kim and Chang
Former: Chief Prosecutor of Eastern District Prosecutor’s Office00

Kim Woo jin

Male(53)

22.03.30

Present: Professor of Finance, Seoul National University Business
SchoolPresent: Member of Discipline Committee at Market OversightCommission in Korea Exchange
Present: Member of Compliance Committee at Samsung

00

Lee Ji yoon

Female(58)22.04.27

Present: Non-executive Director, Korea Hydro & Nuclear Power Co., Ltd.
Present: Executive Advisor, FleishmanHillard Seoul
1
Former: Chairperson at Seoul Facilities Corporation0* Pursuant to Article 34 of the Enforcement Decree of the Commercial Act, one is allowed to serve as a director, executive, or auditor of only one other company.
** Lee Hyo-yul, Executive Director, was appointed as a CEO on Feb 28, 2017.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

BOD Committees

71

Appendixn ronmenta ana ement
or orate t c

As of end of March 2023

Committee

Composition

Roles

Members

Business Management Committee

2 Executive Directors

Handling business management affairs delegated by the BOD

Lee Hyo-yul (Chairperson), Lee Sang-boo

Compensation Committee

3 Independent Directors

Pre-deliberation on executive remuneration, severance pay, and stock option grant, etc.

Won Hye Young (Chairperson), Shim Sue Ohk, Han Chan sik

Independent Director Recommendation
Committee

4 Independent Directors

Recommending independent directors

Kim Young Whan (Chairperson), Lee Kyoung Mi, Han Chan sik,
Kim Woo jin

Independent Director Evaluation
Committee

3 Independent Directors

Self-evaluation on activities of independent directors and the BOD

Lee Kyoung Mi (Chairperson), Shim Sue Ohk, Lee Ji yoon

Audit Committee

4 Independent Directors

Auditing the company’s accounting and business (Exercise of statutory powers e.g.,
auditing the execution of directors’ duties and appointment of external auditors)

Kim Woo jin (Chairperson), Kim Young Whan, Lee Kyoung Mi, Han
Chan sik

Strategy Committee

1 Other Non-Executive Director / 2 Executive
Implementing annual and mid-term business plan, pre-deliberation on core M&A
Directors / 4 Independent Director

Nam Seung-woo (Chairperson), Lee Hyo-yul, Lee Sang-boo, Shim
Sue Ohk, Won Hye Young, Kim Woo jin, Lee Ji yoon,

ESG Committee

1 Executive Director / 4 Independent
Directors

Monitoring sustainability management strategies and directions

Shim Sue Ohk (Chairperson), Lee Sang-boo, Kim Young Whan,
Won Hye Young, Lee Ji yoon

Pulmuone General CEO Recommendation
Committee

1 Non-Executive Director / 2 Independent
Director

Managing and recommending capable candidates for General CEO position

Nam Seung-woo (Chairperson), Lee Kyoung Mi, Kim Young Whan

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix72

n ronmenta ana ement
or orate t c

Independence, Diversity, and Expertise of the BOD
Independence of the BOD

Proportion of Independent Directors
To ensure that the board can serve its roles as an independent decision-making and oversight body, Pulmuone aims to maintain that independent directors comprise at least 50% of theboard. Currently, the proportion of independent directors on the board is 70%.
Appointment Procedures and Independence Requirements
The Independent Director Recommendation Committee, composed solely of independent directors, reviews and nominates candidates for board membership who would be appointed at
the general meeting of shareholders. When submitted to the general meeting of shareholders for approval, each members are individually elected through separate agenda to ensure theshareholder's right. All independent directors are required to meet the independence requirements under the Commercial Act and global governance standards.
Independent Lead Director System
In accordance with Article 5-2 of the Board of Directors Regulations, we have a system where the independent lead director convenes and presides over the independent directors to obtain
their opinions or to request a briefing on major business management issues from the top management. Currently, Lee Kyung-mi serves as the independent lead director.
Independence Requirements for the BOD
1. Independent directors are directors who are not currently serving or have served within the last 2 years as directors, executive directors or employees in the regular business of the company.
2. Independent directors are directors who are not the principal, his/her spouse, lineal ascendants, and lineal descendants.
- In cases where the largest shareholder is a corporation, independent directors must not be directors, auditors, executive directors or employees of the corporation.
3. Independent directors are directors who haven’t received compensation of more than KRW 80 million (USD 60,000) from the company, a parent company, and a subsidiary for 12 months within the last three years(including the principal and his/her family).
4. Independent directors are directors who are not the spouses, lineal ascendants, and lineal descendants of directors, auditors, or executive directors of the company.
5. Independent directors are not directors, auditors, executive directors or employees of a parent company or a subsidiary company of the company.
6. Independent directors are directors who are not an advisor or consultant of the company.
7. Independent directors are directors who don’t have a material interest in the company, such as relationships with the company’s clients and suppliers.
8. Independent directors are not an employee of a corporation that has an agreement with the company to provide advisory services as a main legal advisor or business consultant.
9. Independent directors are directors who don’t have a material interest in the NGOs that receive a significant amount of grants from the company.
10. Independent directors are not directors, auditors, executive directors or employees of any other company for which directors, executive directors and employees of the company serve as directors and executive directors.
11. Independent directors are directors who do not have conflicts of interest, defined as actions that would violate the independence of the BOD.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

73

Appendixn ronmenta ana ement
or orate t cDiversity and Expertise of the BOD
Pulmuone is expanding the expertise of its Board of Directors to support BOD-centered management. Taking into account the business strategy, the nature of the industry, and changing market
conditions, we have defined the specific competencies required to serve as members of the board and fulfill its roles of making decisions and overseeing business operation. The skills and diversityof the board are presented in the Board Skill Matrix below. When nominating and appointing directors, we consider the diversity of their experience and background, including areas of expertise,gender, age, region of origin and ethnicity, and plan for succession to achieve an optimal skill mix based on the Board Skill Matrix.
Board Skills Matrix
Category

Lee Ji yoon

Lee Hyo-yul

Lee Sang-boo

Other Nonexecutive Director
Nam Seung-woo

●

●

●

●

Independent Directors
Lee Kyoung Mi

Kim Young Whan

Shim Sue Ohk

Won Hye Young

Executive Directors
Han Chan sik

Kim Woo jin

Career and Experience
BOD

●

CEO

●

●

●

Expertise●

Accounting/FinanceMarketing/ Communication

●

●
●

●

●

●
●

Laws/Risks●

Government/Policies●

IT/Security/DX●

ESG
Independence

●

●

●

●

●

●

●

●

●

●

FemaleMale

Female

Male

Male

Male

Female

Male

Male

Male

49

66

61

72

55

53

58

66

61

71

4

3

3

2

1

1

1

10

5

5

Diversity
GenderAge
TenureAbout Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek74

Appendixana ement
ana ementn ronmenta ana ement
or orate t c

BOD Operation and Performance
BOD Activities

Evaluation and Remuneration of the BOD

The Board of Directors meetings are convened by the Chairperson in accordance with the Boardof Directors Regulations. The board holds five regular meetings a year and special meetings
as required. As the highest decision-making body, the board reviews and makes decisions on
its management, finance, business plans, and performance in accordance with the Articles ofIncorporation. It also plays a role in the sustainable management which is specified in Article 3-5 ofthe Board of Directors Regulations.

Since 2020, Pulmuone has conducted a comprehensive evaluation on the operation andactivities of the independent directors and the Board of Directors once a year through the
Independent Director Evaluation Committee. The Independent Director Evaluation Committee
is composed of 3 independent directors, and the board evaluation is conducted with a total of
21 questions in 4 areas. The results are then disclosed on the website, and they are used tofurther enhance the strengths of Pulmuone's BOD operation, contribute to the improvement of
its weaknesses, and determine the limit of remuneration.

Roles of the Board of Directors in Sustainable Management

Category

2. Help the management to recognize important objectives
3. Provide input and feedback on sustainable corporate strategies
4. Establish and oversee strategies to communicate the company's objectives throughout the organization
5. Provide input and feedback on the resource allocation

Date

2022

2021

2020

Composition and Roles

4.71

4.56

4.81

Independence

4.72

4.59

4.64

4.50

4.50

4.59

4.69

4.78

4.68

Efficiency
BOD Committees

BOD Meetings and Agenda in 2022
Meeting※ BOD Evaluation Table and Results

Results of BOD Evaluation

1. Review, guide, discuss, and verify the strategic directions of the company's long-term plans

Unit

Points** Scale of 1 to 5

AgendaAttendance Rate

1st Regular Meeting Feb 24, 2022

Approval of the 39th financial statements

Approved: 10 / Reported: 8

100%

1st Special Meeting Mar 30, 2022

Approval of intercompany transactions with directors Approved: 4 / Reported: 1

70.0%
90.9%

2nd Regular Meeting Apr 28, 2022

Report on the results of the values system consultation Reported: 5

3rd Regular Meeting Jun 23, 2022

Mid-term business strategy report

Reported: 1

90.9%

4th Regular Meeting Jul 28, 2022

Plans to improve the BOD operation

Approved: 1 / Reported: 4

81.8%

5th Regular Meeting Oct 27, 2022

Revisions to regulations for the ESG Committee

Approved: 3 / Reported: 5

90.9%

6th Regular Meeting Dec 1, 2022

Approval of 2023 financial targets in business plan

Approved: 1 / Reported: 6100%

BOD Meeting Attendance Rate
Category

Unit

2022

2021

2020

Average BOD Meeting
Attendance Rate

%

90.0

90.3

89.5

* Pulmuone guides all directors to an annual minimum attendance rate of 75% for the BoD meetings.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix75

n ronmenta ana ement
or orate t c

Protection of Shareholders' Rights
Stock Ownership

Shareholder Return for the Last 3 Years

Pulmuone is a company listed on the stock market, and the total number of shares as ofDecember 31, 2022 is 42,155,122 (38,120,542 common stocks and 4,034,580 preferred stocks).
Of these, 4,034,580 redeemable convertible preferred shares were fully redeemed and canceledon March 23, 2023 using distributable earnings (retained earnings), resulting in a total of
38,120,542 shares outstanding as of the date of this integrated report. Pulmuone's corporate
information is available on the company website, the Financial Supervisory Service's DART(Electronic Disclosure System), and the Korea Exchange's electronic disclosure system.

BusinessYear

Major Shareholders

2022
2021
2020

Month ofSettlement

12
12
12

Type of Shares

Stock
Dividends

Cash Dividends
Dividends per ShareTotal Dividends

Dividend Yield

Common stock-102

KRW 3,751 million

0.9

Preferred stock

-

347

-

-

Common stock-102

KRW 3,751 million

0.6

Preferred stock-347

KRW 1,400 million

2.0

Common stock-102

KRW 3,802 million

0.6

Preferred stock-347

KRW 1,400 million

2.1(As of December 31, 2022)

Category

Shareholders
Nam Seung-woo
Other shareholders(more than 5% of IBK Green Private Equity Funds Joint Venture
shares)Hanmaeum Peace Research Foundation*

No. of Shares
21,735,780
4,034,580
3,809,060

Percentage (%)
51.6
9.6
9.0

* Resolved to change the name of the organization from the Hanmaeum Peace Research Foundation
to the Hanmaeum Foundation on March 28, 2022.

Category

Shareholders
No. of minority Total no. ofshareholders shareholders
Minority shareholders
53,52053,525Percentage
(%)
99.99

No. of Shares
No. of minority Total no. ofshareholders shares issued
9,115,645
40,805,422

Percentage
(%)
22.34

**Pulmuone ensures one voting right per share, and there are no other stocks that restrict voting rights, such as golden shares.

Dividend Policy
We have established and implemented a dividend policy that pays a certain amount of cash
dividends per share to ensure stable financing and to respect the shareholders' rights to receive
returns on their investment. The dividend limit is calculated in accordance with Article 462-1 of
the Commercial Act and Article 19 of the Enforcement Decree of the same Act, and within thelimit, we pay dividends regardless of our business performance. We plan to maintain this policy
until 2026.

Enhancing the Shareholders' Rights
Improvement on the System
At the 2023 General Meeting of Shareholders, Pulmuone amended its Articles of Incorporation toelevate the approval body for reducing the Board of Directors’ responsibilities and authorizing
financial statements to the General Meeting of Shareholders. We have also changed the authority
to decide on retirement benefits for advisors and consultants from the CEO to the Compensation
Committee, which is composed solely of independent directors.
Shareholder Return
At the 2023 General Meeting of Shareholders, Pulmuone lowered the limit on directors' remuneration
by 30% compared to the previous year. We also maintained the dividend at last year’s level within thedividend payout ratio, despite the challenging business environment this year.
Disclosure and Communication
With the recent emphasis on responsible investment, we recognize that not only institutional
investors, such as the National Pension Service, but also private shareholders are showing growinginterest and expectations for non-financial (ESG) information from companies. Since 2007, we havepublished annual integrated reports to share our non-financial performance and data every year. We
also actively participate in external ESG assessments such as CDP and S&P CSA (formerly DJSI) to
disclose information on our corporate sustainability performance to shareholders and investors. Goingforward, we will continue to support communication and transparency in our business operations.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix76n ronmenta ana ement
or orate t c

Risk Management
Risk Management Governance
Organization and Reporting System
For effective and independent risk monitoring and management, Pulmuone operates its Risk Management Committee for each business unit and at the corporate-wide level, and conducts pre- andpost-management activities for corporate-wide risks that may undermine its sustainability.
Business-unit Risk Management
The RM (Risk Manager) for each business unit identifies and evaluates risks from the perspective of the business environment and internal operations, and confirms the risk pool after approval by the
representative. We conduct monthly or quarterly monitoring and evaluation of the level of risks (Attention, Caution, Alert, Danger) according to the preset cycle, report the results to the Risk Management
Committee of the relevant business unit, and then implement measures according to the level of risk.
Corporate-wide Risk Management
Corporate RM (Management Diagnosis Department of Pulmuone Corporate) shares the monitoring results of risks rated “High” among the risks that are regularly monitored by business unit with the Corporate
Risk Management Committee. In addition, the Corporate Risk Management Committee conducts regular reports on risk factors that require constant management from a corporate-wide perspective, as well asreports on monitoring results for “High” rating, and provides reports on risk factors that require discussion and management by each business unit to fulfill its roles and responsibilities as the highest decisionmaking body for risk management.

Risk Managers
Category

Leaders

Roles

Reporting System

General Risk Management

Lee Jeong-eon(Management Diagnosis Dept.)• Secretary of Corporate Risk Management Committee• Approve corporate-wide risk management policies

Management Diagnosis Dept. → TISO Management Leader → Head of CSO→ General CEO and BOD

Risk Management Monitoring

Jeong Yeon-seung(Corporate RM)• Review risk management performance by business unit (subsidiary) andsubmit agenda to the Corporate Risk Management Committee• Disseminate and review decisions and activities of Corporate Risk
Management Committee

Corporate RM → Management Diagnosis Dept. → TISO Management Leader(CCO) → Corporate Risk Management Committee → Audit Committee• Identify operational and design defects and direct improvement
measures through risk-based audit

Management Diagnosis Team → Management Diagnosis Dept. → Head of
TISO Management Dept. (CCO) → Head of CSO → Audit Committee

Risk Management Audit and Due Yoon Tae-seok, Team Leader
Diligence(Management Diagnosis Team)

Risk Training for Independent Directors
All matters related to risk management are reported to the Audit Committee (under the BOD), which oversees and makes decisions on important issues. Therefore, risk training is organized for themembers of the Audit Committee to enhance their expertise and help them perform their roles as committee members. In 2022, all four independent directors of the Audit Committee completed
training and learned about the background and the managerial skills of the internal accounting management system.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix77

n ronmenta ana ement
or orate t c

Risk Management Frame
For ongoing risk management, Pulmuone has identified the risk pool to be monitored, based on its business characteristics, through risk identification, evaluation, response, andmonitoring. Prevention and follow-up measures are also in place. In order to identify risks without any duplication or omission, and enhance management efficiency, Pulmuone divides therisks into four types: Governance risks (corporate governance, ethical management), strategic risks (corporate social responsibility, external environment, business planning, management
strategy), operational risks (food safety, occupational safety and health, sales and marketing, product development, supply chain), infrastructure risks (legal, compliance, finance, HR, public
relations, IT). We have developed an optimized response plan after categorizing the identified risks into four types based on the level of uncertainty and controllability: Contingency Plan,
Response by Scenario, Indicator Management, and Rigorous Control.

Corporate Risk Management Operational Frame

CTO

Food Integration
MBU

LOHAS Safety Innovation
Committee

Sales FU / Marketing
Division Meetings

Food and Culture, LOHAS Care, FDD, ORGA, CO FU,
Danone Pulmuone, Pulmuone Waters

CSO

Corporate
Risk
Management
Committee

Risk Management Committee for each business unit
ReportReportRisk Manager (RM) by business unit (identification/collection of monitoring results, issues and new risks, *operation of the Committee)
Risk Owner (Approval of monitoring results)
Risk Officer (Review of monitoring results)
Risk Practitioner (Regular monitoring of risks)

OrganizeandreportissuesRegularly
identify/
reportrisks① Select key risks by business unit and collectand report monitoring results② Identify key issues in business units and submit
to the Corporate Risk Management Committee③ Select agenda items by risk theme inbusiness units and support reporting
Management Diagnosis Dept. (Corporate RM)* The Committee’s operation: Select agenda items regularly/irregularly, operate report by theme, collect and report the results of regular monitoring ← Corporate RM
supports the operation of the Risk Management Committee for each business unit.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix78

n ronmenta ana ement
or orate t c

Major Risks
Pulmuone has established mid- to long-term response strategies by identifying emerging risks that may have a significant impact on future business and analyzing the economic,
environmental, and social impacts and major opportunities and threats. By doing this, we strive to develop our ability to proactively respond to risks that may arise in the future and toturn crisis into opportunity.
Category

Definition and Impact

Organization

Policies

Litigation risks

Risk of financial or non-financial loss due to legal disputes with stakeholders

Legal Dept., TISOManagement Office1) Identifying major domestic and global risks
2) Strategic response for appropriate dispute resolution_ factual and legal analysis
3) Minimizing risks in collaboration with experts if necessary

Workplaceenvironmental safety
management

Realization of zero tolerance for workplace accident and establishment of onsite safety culture
Aggravated punishment for an employer regarding safety accidents and impact
on the internal and external corporate image

EHS Dept.
(Safety PlanningTeam) Integrated
Manufacturing
Headquarter(Each business site)1) Self-assessment of business sites using the checklist (laws and company guidelines)
2) Raising awareness on safety management by conducting an audit for each corporation/business site3) Unscheduled safety inspection and guidance inspection with external companies

The stabilization of the supply and demand of raw materials due to the increasein major raw materials have a significant impact on essential profit and loss.

Strategic Purchasing
Office, Business-unit
Purchasing Department

1) Monitoring the status of agricultural production areas and securing additional agricultural
production areas with rising raw material prices,
2) Checking the expected timing of inventory depletion through performance managementcompared to the raw material usage plan, and planning responsive actions3) Flexible response such as diversification of agricultural production areas and suppliers inconsideration of the timing of inventory depletion

Food safety control

As the continuously worsening trend of humid and hot weather in summer andthe transition to a subtropical climate pose a risk to our key strategy, “Fresh
Ready Meal,” proactive measures for food safety are required. Ensuring safety
as a food company is an essential part of risk management for sustainability,
and abnormal climate conditions and environmental changes require proactive
approaches involving continuous improvement and new technology

Food Safety Office1) Pulmuone manages food hygiene and safety across the company as led by the Food Safety
Department of Pulmuone Corporate Technology Office, the company’s control tower forfood safety management
2) A real-time control system, a general management system, a permanent inspection
system, or a change management system is selected, depending on the type of the food,and is then implemented to exercise food safety control over food production processes.
3) Real-time temperature control is in place for logistics centers, transportation vehicles,delivery vehicles, and affiliated store vehicles so that temperature deviation that may
occur during distribution and transportation can be managed in advance

Climate risks

Management is required to maintain the business environment and continuity
as the possibility of natural disasters increases due to climate change. Legal/business risks that may arise in the process of response activities may also
have a financial impact.

ESH Dept.
(Environmental
Engineering Team),
Integrated Production
Headquarter(each business site)

1) Management of domestic GHG emissions
2) Water risk evaluation
3) Product Carbon Footprint (PCF) management, etc.

Stabilization of supply
and demand of raw
materials due to rising
raw material costs

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernance

Corporate Ethics
TISO Management
TISO Management System
TISO Code of Conduct
In pursuit of TISO management, we have established and implemented our Code of Conduct, which stipulates behavioral rules for employees
to follow. It covers how to handle work orders that hamper fair work practices, as well as external activities and consumer information
security. It also covers the prohibitions on preferential treatment, anti-trust acts (e.g., collusion with competitors), wielding of unfair influencefor personal interest, receiving of corrupt profit, other improper actions with stakeholders, other acts that harm the company, personal use ofclassified information, hiring of employees in other companies, falsifying of documents or statistics, and false reports.

Code of Practice for TISO Management
The "Code of Conduct Practice Handbook" has been prepared to help employees better understand the "TISO Code of Conduct" by offering
more detailed explanations about fair and transparent work processes, the prohibition of using one's authority at work for personal gain,
work discipline, behavior and conduct to be avoided among employees, making accurate and truthful reports, protecting company andconsumer information, whistleblowing, and rewards. It clearly defines types of misconduct that can be committed unknowingly, as well as
material breaches, such as bribery or corruption, that undermine TISO principles. Employees are under supervision to comply with theseclear rules and procedures.

Transparent Donation Process
Pulmuone does not engage in any kinds of lobbying or political donations in strict compliance with Article 31 of the Political Funds Act, which
prohibits political donations by corporations or groups. When making decisions to sponsor or donate money for initiatives, we consider
industrial relevance, alignment with our mission, improvement of our own or the industry's ESG capabilities, and contribution to achieving
common goals such as the Paris Agreement and the SDGs. We also ensure that donations are not used as a means of bribery or can serve
as a cause of corruption, and we specify the decision-making process and R&Rs for donations in our corporate-wide LOAs while making
sure that they are drafted, reviewed, approved, and executed transparently and independently. In the first half of 2023, we joined the CGF(Consumer Goods Forum), a global meeting of leading food manufacturers and retailers. As an official accelerator of the RtZ (Race to Zero),a global net-zero initiative under the UNFCCC (United Nations Framework Convention on Climate Change), which has declared the goal of
reducing carbon emissions by 50% by 2030 to achieve the 1.5℃ science-based target. Going forward, we will continue to support the CGF and
its members to help achieve the target set by the Paris Agreement.

kana ement
ana ement

Appendixn ronmenta ana ement
or orate t c

79

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

80n ronmenta ana ement
or orate t c

Internalization of TISO Management
Dedicated Organization

Compliance Training

Pulmuone has appointed the TISO Management Leader as the CCO (Chief Compliance

Pulmuone organizes compliance training to internalize TISO management. In 2022, we

Officer) to oversee its ethical practices on a corporate-wide level with the support fromconducted training on the Subcontracting Act for shared growth with suppliers, along

the Management Diagnosis Department, TISO Management Department, and the Legalwith training on the Franchise Business Act, anti-collusion, and the Act on Fair Labeling

Department. In addition, R&R and reporting systems for violations of the Code of Conduct

and Advertising. We have also published CP newsletters to facilitate the process ofand internal audits have been established and managed through corporate-wide LOAs (thecommunicating the regulatory changes to our employees and taking actions to ensure

Letter of Agreement; Company-wide rules for vesting and delegation.)compliance.

TISO Management Organization

2022 Compliance Training Programs

TISO Management Leader (CCO, Chief Compliance Officer)

Management Diagnosis
Department
Internal Audit

TISO Management Department
Investigation of Violations of
TISO Management Regulations

Legal Department
Compliance Control

Training Subject

No. of Participants

Training Hours per Person

Subcontracting Act

20

18

Franchise Business Act

24

6

Fair Trade Act

318

23

E-commerce--

Ethics/Anti-corruption/Compliance/
Human Rights

51

4

Total

1,427

72

Coordination with Employee Performance Evaluation
We include KPIs for our core competency values-Trust, Passion, and Excellence—in
our performance evaluations. For the value of Trust, we use compliance with the TISO
management regulations (including the TISO Code of Conduct) as an indicator, aligningcompliance with the performance evaluation. By doing so, we put emphasis on the ethicalpractice and compliance and integrate them into our organizational culture.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix81

n ronmenta ana ement
or orate t cFair Trade
Fair Trade Policy
Pulmuone's fair trade policy is the strategy for promoting the TISO management for
suppliers. Pulmuone identifies business and voluntarily improves business management
for fair and transparent corporate activities under the Fair Trade Act, thereby preventing
violations of fair trade laws in advance and establishing an organizational culture thatcomplies with competition law requirements.

Fair Trade Practice Programs
Category
Providedistinctive
valuesConsumers

Unfair Trade Practices
In accordance with Article 13 (Payment of Subcontracting Payment) of the Fair
Transactions in Subcontracting Act ① that specifies, "Where a prime contractor entrusts
a subcontractor with manufacturing, etc., the prime contractor shall pay the subcontract
consideration by no later than the earliest date for payment fixed within the extent of 60days from the date of receipt of subject matter, etc." Pulmuone keeps the payment date inconsideration of subcontracts for its suppliers. In addition, we are committed to preventing
the violation of fair trade practices in advance by regularly holding fair trade deliberation
meetings. We also visit and inspect partner companies to prevent any unfair transactions
or corrupt practices.

Competitors• We increase productivity through process innovation and provide high-quality products andservices at a reasonable price.
• We provide products and services in accordance with Pulmuone's principles to help ourcustomers live healthier lives.

Correct labeling • We honestly disclose information under the New Full Labeling System.
and advertising • We eliminate false, misleading, or exaggerated labeling and advertising.
Protect
consumers

Business
Partners

Guidelines• We respond swiftly and properly to consumers' reasonable requests.
• We limit our use of consumers' information, and do not collect or expose such information
without their consent.

Select partners
in accordancewith thepredetermined
standards• We provide equal opportunities based on our principles and procedures.
• We select business partners in accordance with the transparent and objective criteria definedby an internal council.

Comply withtrade principles• We avoid unfair transactions that abuse our position, including unfair refusal of business deals,
forced terms and conditions, and discriminatory treatment.
• We comply with the internal procedures in each stage of business transactions and voluntarily
examine these procedures using checklists.

Mutual growth• We develop and provide customized programs to strengthen the capacity of business partners,
including training and technical support.
• We create opportunities for regular interactions with business partners for win-win growthand cooperation.

Prohibit unfair
collective
actions• We do not set trade conditions jointly with other companies regarding the prices, types, andstandards of products.
• We comply with the "Pulmuone Guidelines for Communication with Competitors" regarding
competitor companies.

Prohibit
attracting
clients andcustomers in an
unfair method• We do not provide or receive unfair requests, money, gifts, or entertainment offerings,
especially from stakeholders in connection with business transactions.
• We do not offer excessive benefits compared to normal practices to attract the clients andcustomers of competitor companies.

Engage incompetition ingood faith• We do not collect, misuse, or leak the technologies and data of business competitors.
• We do not circulate false information to slander other companies.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

82

Appendixn ronmenta ana ement
or orate t cCompliance
Whistle Blowing

Regular and Special Audit

Whistleblowing System and Reporting Channels

All our business sites must undergo regular audits based on the plan reported to and approvedby the executive management. This is intended to prevent the potential risk of corruption andpolicy violations, increase the efficiency of risk management activities and processes, andassess the adequacy of expenditures. This process analyzes the cause of risks and issues andprovides reasonable measures for improvement, focusing on the prevention of recurrence andrisk factors.

As a means of practicing TISO management, our internal reporting system allows us to receive
reports of violations from internal and external stakeholders via phone, mail, website, andintranet. We conduct thorough investigation based on the reports under the TISO regulations
and take strict disciplinary actions against violators.

Protection of Reporters and Rewards
The protection of whistleblowers is our highest priority when it comes to dealing with reports
on violations. Therefore, it is important for us to raise awareness of whistleblowing andbuild trust in that their identities are kept secret. To this end, we published the Guidelines for
Whistleblower Protection through the Cyber Audit Office and make continuous improvement on
our management systems and processes through regular training and active communication.
We also reward whistleblowers based on the level of disciplinary actions to encourage more tocome forward.

2022 Internal Audit Results
Actions
Classification and Definitions

TISO Management Report and Counseling Center
Address

Management Diagnosis Dept. / TISO Management Dept. of Pulmuone Corporate, 8F,
Rosedale Bldg., 280 Gwangpyeong-ro, Gangnam-gu, Seoul, South Korea

Cyber Audit
Officehttps://cp.pulmuone.kr:3444/cyber/(Unit: case)

Audit

Monitoring

Request for
Inspection/
Clarification

Process
Improvement/
Correction/
AdditionInternal
Control
Improvement/
Correction/
Addition

Periodic
Audit

Periodic or recurring audit with a
specific theme each year

1

3

-

Risk-based
Audit

Audit for risk management andprocess enhancement through risks
identification and assessment

4

17

-

Internal
Control
Audit

Audit for reviewing the completenessand effectiveness of internal
accounting control systems

20

-

24

682

279

-

Audit for monitoring the payment
Corporate made by all employees using
Credit Card corporate credit cards and taking
corrective actions

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

ec ata ran format on
P m onertoc a e ontana emento ernancek

ana ement
ana ement

Appendix

83

n ronmenta ana ement
or orate t c

Tax Policy
Pulmuone abides by the country's tax laws and fulfills its obligation to pay taxes imposed on its profits. To this end, we established the tax policy and regularly provide the relevant
education program to the employees in charge of accounting and tax affairs. When necessary, we receive consultation from external experts, including law, accounting, and tax firms.
Tax Policy
Basic Principles• Pulmuone strives to comply with domestic and foreign tax laws and regulations and files a tax report and pays taxes in a transparent and fair manner.
• In accordance with its TISO management principles, Pulmuone responds to requests from the tax authorities sincerely with mutual respect, and fulfills its obligation to cooperate in tax matters without
concealment, distortion, or exaggeration.
• Pulmuone will actively respond to changes in tax laws in each region and swiftly apply these changes in its business.
Risk Management• Pulmuone will minimize unexpected tax risks across all business operations.
• Pulmuone will constantly make company-wide efforts to build the external compliance inspection system, provide internal education, and set consistent business management standards. We will consult
and cooperate with external experts to identify tax risks and upgrade our tax policy.
• Pulmuone will meet all tax reporting and payment deadlines, and keep the evidence and reasons for decisions made for business contracts in the form of documents.
Eradication of Tax Avoidance• Pulmuone will maintain a normal investment and trade structure that conforms to the intent of the tax law in regard to transactions with third parties and/or special affiliated parties.
• Pulmuone will maintain fair prices in trade with third parties and/or special affiliated parties in accordance with the relevant regulations in Korea, while following the OECD guidelines and BEPS standards
for international trades at normal prices.
• Pulmuone will not become a tax haven or take advantage of tax structures without commercial substance.
Transfer Price Policy• The transfer price refers to the price applied to an international transaction of raw materials, products, and services with overseas subsidiaries or affiliates. Global companies often adjust the transfer
price to alleviate their tax burden, which has become an issue in the industrial sector. Upholding its principles of transparent and sincere tax payment, Pulmuone prohibits transfer pricing in favor of thecompany under any circumstances. We set the transfer price strictly in accordance with the OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations and local tax laws ineach country. Therefore, we pay tax on our business profit under the national tax law.

Part 4

Appendix•Performance- Economic Performance- Social Performance- Environmental Performance- Awards and Certifications- Business Agreements•Fact Book- GRI Index- TCFD Index- SASB Index- Independent Auditor Report- Report on the Operating Status of the Internal
Accounting Management System- Audit Committee’s Internal Accounting
Management System Evaluation Report- Independent Assurance Statement- GHG Emissions Verification Statement- Global Initiatives and Memberships- Pulmuone SHE Policy- Pulmuone Declaration of Human Rights Management- Who Prepared This ReportAbout Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance86

Fact Book

Performance
Economic Performance1)
Unit

2022

2021

2020

Key Financial Performance

Unit

2022

2021

2020

Creation and Distribution of Economic Values

Sales

KRW million

2,838,304

2,518,896

2,311,200

Customers

Sales

KRW million

2,838,304

2,518,896

2,311,200

Operating income

KRW million

26,33238,51445,970

Employees

Salaries

KRW million

377,244335,749

336,373

Net operating income

KRW million-36,967304

11,834

Employee benefits

KRW million

67,42952,701

48,087

Contributions to defined
contribution plan

KRW million

2,660

759

610

Expense related
to defined benefit plans

KRW million

30,43228,39230,020Stock settlementbased equity incentive
compensation

KRW million

223

885

308

KRW million
Shareholders Cash dividend
and Investors%
Cash dividend payout ratio

3,751

5,151

5,199

-10.1

1,694

43.9

Creditors

Interest cost

39,17029,052

27,204

Unit

2022

2021

2020

Summary of the Consolidated Financial Statements
Current assets

KRW million

752,346

710,996

630,383

Non-current assets

KRW million

1,296,872

1,258,376

1,063,190

Total assets

KRW million

2,049,218

1,969,373

1,693,573

Current liabilities

KRW million

892,670

803,842776,833

Government

Corporate tax

Non-current liabilities

KRW million

609,901

575,740

403,801

Suppliers

Purchasing total

Total liabilities

KRW million

1,502,571

1,379,582

1,180,635

Controlling company interests

KRW million

412,260

466,587

450,085

Local
Communities

DonationsNon-controlling interests

KRW million

134,387

123,204

62,853

1) Based on Strategic Purchasing Office data / 2) Based on the business report

Total equity

KRW million

546,647

589,791

512,939

1) Prepared based on the K-IFRS consolidated financial statements. Refer to the business report for more financial data.

KRW million

11)

2)

KRW million

18,554

13,2056,122

KRW million

624,012917,326

832,546

KRW million

1,995

2,144

1,883

2021

2020

Unit

2022

Stock Information
Par value

Total shares issued

Closing price

KRW

500

500

500

Share(s)43,504,822

43,504,822

43,004,819

Common shares1)

Share(s)38,120,542

38,120,542

38,120,539

Preferred shares2)

Share(s)4,034,580

4,034,580

4,034,580

Others3)

Share(s)1,349,700

1,349,700

849,700

KRW

11,20017,30016,5501) Total number of common shares issues do not include treasury shares.
2) Preferred shares are redeemable convertible preferred shares.
3) Other treasury shares (non-voting shares) not included in capital stock but included as other paid-in capital.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance87

Fact Book

Social Performance
No. of shares
Stock Ownership

Percentage (%)1)

Largest shareholder and relatedparties

Unit

2022

Person(s)6,544Employees
22,891,960

54.3

21,735,780

51.6

Nam Miri-nae

236,040

0.6

Kim Myeong-hee

82,9900.2

Others837,150

2.0

Nam Seung-woo(largest shareholder)

Total no. of
employees1)
No. of employees
by contract type

Permanent employees

Person(s)5,130Fixed term employees2)

Person(s)1,414No. of employees
by ageBelow 30

Person(s)

880

30s

Person(s)1,796National Pension Service

1,937,483

4.6

40s

Person(s)1,532

IBK Green Equity Funds Joint Venture

4,034,580

9.6

50s

Person(s)1,582Hanmaeum Foundation2)

3,809,060

9.0Over 50

Person(s)754Treasury shares

1,349,700

3.2

R&D

Person(s)391Institutional investors

555,084

1.3

Manufacturing

Person(s)1,510Foreigners

387,157

0.9

OthersIndividual shareholders

7,190,098

17.1

1) December 31, 2022
2) On March 28, 2022, the name changed from the Hanmaeum Peace Research Foundation to the Hanmaeum Foundation.

No. of employees
by job category

No. of employees
by management
level

Person(s)

4,643

3)

Executive

Person(s)109Manager4)

Person(s)348Senior

Person(s)1,141Staff and others

Person(s)4,9461) As of the end of the year2) Based on the Act on the Protection of Fixed-term and Part-time Employees
3) Executives, independent directors, advisors, etc.
4) Team leaders, part leaders, etc.

Unit

2022

2021

2020

Total R&D cost

KRW million

27,65528,47633,083Government subsidies

KRW million

25

187

156

R&D Cost
1)1) Total R&D cost is calculated based on the total amount of R&D spent before deducting government subsidies.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Unit

2022

Diversity and InclusivenessRatio of female employees1)

Recruitment and Retirement

88

Fact Book

Unit

2022

Person(s)1,6351), 2)New hires%

57.6

Ratio of female
employees by job
category

Revenue generating department2)

%

59.4

FemalePerson(s)790

STEM3)

%

29.2

Male

Person(s)845Ratio of female
employees bymanagement level

Executive%

18.3

No. of employees

Person(s)1,408Manager%

21.8

Senior5)%

40.9

Person(s)287Compensations for Executive
female employees
Manageragainst male
employees4)
Non-managerial positions6)

%

77.5

Regular retirement

Person(s)92Disciplinary dismissal

Person(s)2Advised resignation

Person(s)193Involuntary turnover rate

3)

%

20.38

Person(s)1,121Voluntary early retirement

Person(s)0Voluntary retirement

Person(s)

1,121

%

79.62

Employees with disabilities
Veterans%

Involuntary
turnover

98.0

%

79.0

Person(s)85Person(s)Turnover andretirement

20

Voluntary turnover1) All employees
2) Manufacturing, sales, and marketing
3) Science/technology/engineering/math related departments
4) Pulmuone Corporate, Pulmuone Foods, Danone Pulmuone, Pulmuone Waters, and Pulmuone Food and Culture5) Senior level is the first level of managerial position
6) Senior level, employee level, and others

3)

Voluntary turnover rate1) Including domestic companies
2) Excluding inter-company turnover3) Among resigned or retired employees

Unit

2022

2021

2020

No. of employees subject to evaluation

Person

4,290

2,954

3,033

No. of evaluations conducted

Person

4,054

2,827

2,825

%

94

96

93

Employee Performance Evaluation

Percentage

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Performance

Unit

2022

Pay1)
Average basesalary2)

Average basesalary for
managers2)
Average basesalary fornon-managers2)

Fact Book

Unit

2022

2021

2020

Human rights impact No. of own operations
assessment
No.of suppliersSite(s)Site(s)

2
24

0
0

0
0

Human rights
grievance handling

Case

27

23

13

Human Rights
FemaleKRW

30,395,484

Male

KRW

42,211,832

%

72.01

KRW

96,954,195

Female pay against male pay
Average basesalary forexecutives2)

89

Appendix

FemaleMale

KRW

125,610,967

FemaleKRW64,447,672

Male

KRW

FemaleKRW

66,641,995

Human rights
grievance handlingby issue

29,338,597

No. of cases
reported
No. of cases
resolved
Percentage
Discrimination in
workplace
Sexual harassment
Non-sexual
harassment in theworkplace
Others

Case

27

23

13

%

100

100

100

Case

01)

0

0

Case

71)

3

2

Case

20

1)

20

11

Case

0

0

0

Male

KRW

36,285,999

Averagecompensation for
executives3)

FemaleKRW

110,718,242

Male

KRW

142,143,252

Unit

2022

2021

2020

Averagecompensation for
managers3)

FemaleKRW

75,159,623

Family-friendly Programs

Male

KRW

76,703,908

FemaleKRW

33,410,964

38
90

34
79

33
87

Male

KRW

42,266,948

No. of children cared by the in-house daycare center
KRW
No. of employees on maternity leave
Person(s)No. of employees who returned to work from
Person(s)Maternity leavematernity leave%
Ratio of return-to-work from maternity leave

Averagecompensation for
non-managers3)

1) Pulmuone Corporate, Pulmuone Foods, Danone Pulmuone, Pulmuone Waters, and Pumuone Food & Culture2) Based on annual salary3) Based on annual salary and incentives

1) A total number of 27 complaints(sexual/non-sexual harassment, discrimination) were reported, 16 of which were confirmed as valid breaches.

Parental leave

No. of employees on parental leave
Person(s)No. of employees who returned to work from
Person(s)parental leave%
Ratio of return-to-work from parental leave
No. of employees who have worked over 12months after parental leave
Ratio of employees who have worked over
12 months after parental leave

Reduced work hours
Male(paid)
FemaleTotal cost of benefits
1) Domestic workplaces

1)

41

30

45

45.6
258

38.0
231

51.7
218

89

115

102

45.9

50.2

68.5

Person(s)

56

89

79

%

61.5

78.8

96.3

Person(s)Person(s)Person(s)1401467,429192
1752,70117
1
16
48,087

KRW million

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Unit
Employee Training

2022

1)

No. of participants (cumulative)
Total training cost

Person(s)KRW12,014

No. of suppliers

510,320,975

KRW/
Person77,983

Total training hours

Hour(s)86,449Training hours per person

Hour(s)/
Person13

Session(s)81) Pulmuone Corporate in 2021, domestic corporations in 2022
2) Once a month from May to December for TISO Management Dept. (14 employees)

Fact Book

Unit

2022

2021

2020

Sustainable Supply Chain

Training cost per person

ESG training2)

90Company(ies)

597

879

896

Pulmuone Foods

Company(ies)

312

588

628

OthersCompany(ies)

285

291

268

Company(ies)

18

25

14

No. of new suppliers with direct
procurement1)
Total amount ofpurchase fromsuppliers
Total amount ofpurchase fromSMEs

KRW million

624,012917,326

832,546

Pulmuone Foods

KRW million

513,373

829,088765,144

OthersKRW million

110,639

88,23867,402

KRW million

421,678

506,930

465,309

Pulmuone Foods

KRW million

377,718

351,020

349,494

OthersKRW million

43,960155,910

115,815

1) Companies who signed contract for direct procurement in 2022 (the number of "new supplier registered" in the 2021 Integrated Report
includes those with indirect procurement)About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Unit

2022

2021

2020

Shared GrowthTechnical support

Support for benefits

Unit

2022

2021

2020

Overall assessment No. of suppliersCompany(ies)of suppliers
No. of suppliersCompany(ies)with "Good" rating

307

282

229

81

74

41

%

26.4

26.2

17.9

No. of programs

Program(s)

4

2

1

No. of training
sessions

Rating

Good

Good

Good

Fair tradecomplianceassessment

RatingExcellent

Good

Good

Total amountraisedKRW
million

10,00010,00010,000

Amount raised byfinancial institutes

KRW
million75,000

7,500

7,500

Session(s)

7

4

3

Amount raised by
Pulmuone

KRW
million

2,500

2,500

2,500

No. of participants Company(s)

381

324

213

Amount spent

KRW
million

4,500

No. of employees
from participants

Person(s)

392

339

213

Total training hour Hour(s)

12

9

6

Financial support for quality
improvement
Consulting anddiagnostics support

Fact Book

Shared Growth

Shared growth and Shared growthfair trade
ratingSharedgrowth fund

91

4,000

5,000

KRW
million

121

293

176

Company(ies)

69

56

222

Product andservice quality

Company(ies)

45

56

222

Others (safety,
health, CSR)

Company(ies)

24

0

0

No. of technicalsupport cases

Case(s)

75

59

37

Amount oftechnical support

KRW
million

345

884

928

Technical data
deposit support

Case

1

1

1

Support for
improvingproductivity

Case

6

6

7

Case

5

7

2

Percentage ofsuppliers with
"Good" rating
Training support
for suppliersAbout Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Unit

2022

2021

2020

Safety and Health92

Fact Book

Unit

2022

2021

2020

No. of internal ethics and compliance
auditsCase(s)576Site(s)555Person(s)

20

29

200

Hours (per person) Hour(s)

18

4

8

340

203

1,400

Compliance Check and Training

Pulmuone1) Total working hours
Occupational disasters

Hour(s)

14,294,400

14,027,520

14,232,960Case(s)

53

49

41

0.71

0.67

0.55

Corruption risk
assessment

Assessed business
sites

0.74

0.70

0.58

Compliancetraining

No. of persons(cumulative)

0.16

0.12

0.20

0

0

0

0.00

0.00

0.00

Occupational accident
rate2)
Case(s)/200,0000
hours

LTIR3)
Severity rate

4)

Person(s)Fatality
Occupational fatality rate
Suppliers5) Total working hours

Hour(s)8,325,120

6,138,240

6,339,840

Occupational disasters

Case(s)

55

35

23

Occupational accident
rate

%

1.27

1.09

0.70

Case(s)/200,0000
hours

LTIR
Fatality

Person(s)Occupational fatality rate

1.32

1.14

0.73

0

0

0

0.00

0.00

0.00

1) Recalculated at a corporate-wide level, including overseas operations (data differs from the 2021 Integrated Report)
2) Accident rate based on the Occupational Safety and Health Act, including disease rate3) Lost Time Injury Rate
4) Ratio of lost workdays per 1,000 hours worked5) Suppliers resident in our production facilities

Subcontracting Act No. of persons(cumulative)

Person(s)Hours (per person) Hour(s)

18

4

8

Person(s)

6,360

0

0

Hours (per person) Hour(s)

23

0

0

No. of persons(cumulative)

Person(s)

0

12

30

Hours (per person) Hour(s)

0

2

2

Person(s)

102

2,880

0

Hours (per person) Hour(s)

4

12

0

72

160

720

Unit

2022

2021

Fair Trade Act

No. of persons(cumulative)

e-Commerce

Ethics/anticorruption/compliance/
human rights

No. of persons(cumulative)

Franchise Business No. of persons
Act(cumulative)

Person(s)* Only certain business sites are reflected in the last year's Integrated Report -> Updated to the corporate-wide level this year (includes data from 2020)

Unit

2022

2021

2020

Safety Management System

Compliance report

ISO45001

Legal measures

OHSAS18001/
KOSHA18001

Certified businesssites

Site(s)

16

16

16

Certified businesssites

Site(s)1

1

1

No. of reports on corruption or bribery

Case(s)03No. of investigations on corruption or bribery

Case(s)03No. of corruption or bribery cases
confirmed/resolvedCase(s)03About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Unit

2022

2021

2020

Legal and Regulatory Violations
Case(s)Violations of social laws andregulations

Case(s)0

Violations of economic laws andregulations

Case(s)Violations of product and service safety
and health-related laws and regulations
Violations of product and service
information and labeling-related laws
and regulations
Violations of marketing andcommunication-related laws andregulations

Mock training/
exercise formalicious email

2020

Case(s)

0

1

0

0

0

Case(s)

0

1

0

0

0

3

No. of information security breaches orcyber security incidents

Case(s)020Case(s)000Case(s)

0

0

0

Unit

2022

2021

2020

0

0

0

No. of security personnel

Person(s)Case(s)5

32

Budget spent

KRW 100
million

2

1

1

0

1)

0

Information
security budget
and investment

Investment

KRW 100
million1

2

2

Personnel

Person(s)532Case(s)

1

2022

2021

2020

Training hours

Hour(s)1

1

1

Training sessions

Session(s)

16

2

1

No. of participants Person(s)

305

97

22

Hour(s)1

1

2

Training sessions Session(s)

3

1

2

No. of participants Person(s)

167

72

133

2

2

2

No. of training
sessions

2021

No. of violations of PI(personally identifiable) information

Unit

Training hours

2022

No. of violations of privacy protection

0

Information Security Training

Privacy protection

Unit

0

0

1) 1 case of violation of fair trade: Pulmuone Foods was ordered for correction under the Franchise Business Act (December 30, 2021)

Information
protection

Fact Book

Violations of Information Security

Violations of environmental laws andregulations

Legal actions against unfair practices(e.g., anti-trust, anti-monopoly)

93

Session(s)Information Security Operation

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

94

Fact Book

Environmental Performance
Unit

2022

2021

2020

1), 2)

2022

2021

Other GHG Emission Details

Scope 1tCO2eq58,64656,07518,735

Pulmuone Foods

tCO2eq48,522

46,921

15,926

OtherstCO2eq

10,123

9,155

2,809

tCO2eq98,82896,17949,464tCO2eq64,75362,611

36,590

Scope 2
Pulmuone Foods
OthersScope 1+2
Pulmuone Foods
Others
GHG intensity

Unit1), 2), 3)

GHG Emissions

Corporate-wide based on sales

tCO2eq34,07533,56812,873tCO2eq

157,473

152,254

68,199tCO2eq113,275

109,532

52,517tCO2eq44,19842,722

15,682tCO2eq/
KRW 100M

Pulmuone Foods- based on
production

tCO2eq/ton

Scope 3

5.548
0.985

6.044
0.916
549,368

33,937

Pulmuone Foods

tCO2eq531,118

500,01333,921OtherstCO2eq49,63849,356

23

2021

2020

Reduction of GHG Emissions
4)

Amount of GHG emissions reduced

tCO2eq

2,643

9,076

1) Calculated based on the national GHG control guidelines and IPCC guidelines.
2) 2021-2022: both domestic and overseas sites (corporate-wide); 2020: domestic production facilities and selected sites
3) Includes the performance of Exofresh's transportation and distribution and waste generated at business sites (mixed waste plastics only).
Expanded to 7 categories in 2021 and 2022 to recalculate the data
4) Other reductions due to the approval of the externalization of emission credits at the Uiryeung Tofu Production Facilities of Pulmuone Foods.

Category 4.
Upstreamtransportation anddeliveryCategory 5.
Waste generation
Category 6.
Business trips

0.440

580,7562022

Subtotal(Category 3~7, 12)
Category 3.
Fuel and energy

2.951

tCO2eqUnit

Emissionverification
data(a)-Category 7.
Commuting
Category 12.
Disposal of products
soldInternallymanageddata(b)tCO2eq54,17051,895

Pulmuone Foods

tCO2eq46,31544,479OtherstCO2eq

7,856

7,416

tCO2eq

5,504

5,317

Pulmuone Foods

tCO2eq

3,327

3,236

OtherstCO2eq

2,177

2,081

tCO2eq34,27533,048

Pulmuone Foods

tCO2eq34,27533,048OtherstCO2eq00

tCO2eq

5,464

5,828

Pulmuone Foods

tCO2eq

4,113

4,242

OtherstCO2eq

1,351

1,586

tCO2eq

1,292

1,210

Pulmuone Foods

tCO2eq548

707

OtherstCO2eq744

503

tCO2eq163

163

Pulmuone Foods

tCO2eq30

30

OtherstCO2eq133

133

tCO2eq

7,473

6,329

Pulmuone Foods

tCO2eq

4,022

3,216

OtherstCO2eq

3,451

3,113

tCO2eq526,586

497,473

Pulmuone Foods

tCO2eq484,804

455,533

OtherstCO2eq41,782

41,940tCO2eq580,756
531,118
49,638549,368
500,01349,356

Category 1.

Emission verification + internallymanaged data (a+b)

Pulmuone Foods

tCO2eqOtherstCO2eq1) Include both domestic and overseas business sites (corporate-wide)2) Disclose 7 out of 15 categories selected for having a significant impact on Pulmuone, and third-party assurance was conducted for 6 categories excluding Category 1.
3) The above GHG emissions may not be accurate with a margin of error of ±1 tCO2eq due to being rounded to the nearest whole number.

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Unit

2022

2021

2020

1)

Energyconsumption by
sectorEnergy intensity

TJ

2,983

2,880

691

TJ

1,153

1,101

351

Indirect energy
consumption

TJ

1,830

1,779

340

Pulmuone
Foods

TJ

2,079

2,006

592

TJ

904

874

98

Corporatewide - based on
sales

TJ/KRW
100M

0.105

0.114

0.030

PulmuoneFoods - basedon production

TJ/ton

0.018

0.017

0.005

TJ

58

54

3.68

TJ

5

4

2.12

Bio

TJ

47

44

0.00

Renewable energy
generatedSolar(consumption)

Unit

2022

2021

2020

1,000 tons

7,668

7,330

3,556

1,000 tons

4,828

4,459

-

Groundwater

1,000 tons

2,549

2,617

-

Surface water

1,000 tons

292

254

-

Water Resource Management

Direct energy
consumption

OthersFact Book

1)

Energy Consumption
Total energy
consumption

95

Water withdrawal(by source)

Water withdrawal(by company)2)

Water
consumption3)

Others

TJ

6

5

1.56

Percentage of power grid2)

%

96.8

97.0

98.9

Percentage of renewable energy
consumption

%

1.936

1.866

0.533

1) 2021-2022: corporate-wide (2021 data has been adjusted according to the new criteria), 2020: based on certain domestic production
facilities and business sites2) (indirect energy consumption - renewable energy generation)/indirect energy consumption

Amount of water
discharged4)

Water stress5)(High/ExtremelyHigh regions)

Municipal
water supply

1,000 tons

7,668

7,330

3,556

Pulmuone
Foods

1,000 tons

5,086

4,974

-

Others1,000 tons

2,582

2,357

-

1,000 tons

1,243

1,123

797

Pulmuone
Foods

1,000 tons

807

641

-

Others1,000 tons

436

482

-

1,000 tons

6,425

6,207

2,759

Pulmuone
Foods

1,000 tons

4,279

4,333

-

Others1,000 tons

2,146

1,875

-

withdrawal

1,000 tons

1,013

1,376

285

%

17.94

13.82

8.02

Percentage ofwithdrawal

1) 2021-2022: corporate-wide (2021 data has been adjusted according to the new criteria), 2020: based on certain domestic production
facilities and business sites
2) Aggregated from 2021
3) Difference between water intake and discharge by company
4) Amout of water returned to the source of extraction at similar or higher quality as raw water extracted(only applies to surface water and ground water) (ton) : 2022 - 980,203; 2021 - 1,1016,906; 2020 - 1,150,243
5) WWF Water Risk Filter, (Domestic - Manufacturing) Chuncheon Tofu Ice, Global Kimchi, (Domestic - Logistics) Yangji Logistics,(Domestic - Rest Area) Yiseo Sang, Yiseo Ha, Hampyeong Sang, Gwangju Sang, Gwangju Ha, Yangpyeong Sang, Yangpyeong Ha,
Uijeongbu Sang, Byeonae Ha, Oidong Ha, Uiwang, (US)Fullerton, (China)BeijingAbout Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Performance

Unit

2022

2021

2020

1), 2)

Waste Management
Amount of waste
generated

OthersGeneral waste(recycled)

Pulmuone
Foods
OthersGeneral waste(landfilled)

General waste(incinerated)

2021

2020

Ton(s)

26,105
10,06424,893
10,361

15,292
13,002Ton(s)

16,041

14,5332,290

Ton(s)

25,55324,24515,089Ton(s)

9,830

10,105-

Designated waste(incinerated)

PulmuoneFoods

Ton(s)

7

7

3

Ton(s)

0

0-

OthersDesignated waste(others)

Ton(s)

7

7-

Ton(s)

1.23

0.97

0.00

PulmuoneFoods

Ton(s)

0.56

0.00

-

OthersTon(s)

0.67

0.97

-

%

98.03

97.66

98.74

%

98.03

98.15

-

15,72314,140

-

0.15

0.50

1.00

PulmuoneFoods

Ton(s)

0.00

0.00

-

OthersTon(s)

0.15

0.50

-

Ton(s)

507

575

187

Ton(s)

198

191

-

Food waste recycling rate1) Domestic business sites2) 2021~2022: corporate-wide (2021 data has been adjusted according to the new criteria), 2020: based on certain domestic production
facilities and business sites

Pulmuone
Foods

Pulmuone
Foods

Pulmuone
Foods
OthersDesignated waste(landfilled)2022

Ton(s)

OthersDesignated waste(recycled)

Unit

Ton(s)

OthersGeneral waste(others)

Fact Book

Waste Management
Ton(s)

PulmuoneFoods

96

AppendixTon(s)

309

383

-

Ton(s)000

Ton(s)00-

Ton(s)00-

Ton(s)

37

65

11

Ton(s)

36

64-

Ton(s)

1

1-

Ton(s)

0

0

0

PulmuoneFoods

Ton(s)

0

0-

OthersTon(s)

00-

Waste recycling
rate

Pulmuone
Foods
OthersAmount of food waste generated

%

98.03

97.30

-

Ton(s)

15,355

14,598

7,868

%

99.85

99.88

99.5

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Unit

2022

2021

2020

1)

Water pollutant
discharge

Unit

2022

2021

2020

Endangered
species near
the site

Species

44--

Protected
wildlife near
the site

Species

45--

Biodiversity

NOx

Ton(s)

14.07

2.00

0.00

SOx

Ton(s)

0.49

17.00

20.00

Dust

Ton(s)

0.71

1.00

1.00

Biochemical
OxygenDemandTon(s)

424

363

324

Chemical
OxygenDemandTon(s)

99

135

143

Suspended
SolidsTon(s)

191

180

198

Total NitrogenTon(s)

21

24

22

Total
PhosphateTon(s)

2

2

3

1) Certain domestic business sites (manufacturing, logistics, CTO)
2) Discharge from 4~5 types of air emission facilities are included from the second half of 2022. Operations exempt from mandatory
installation of emission control system are included from 2021

Unit

2022

2021

2020

ISO14001

Sites

13

13

13

GBCI (Green
Business
Certification)

Sites

2

2

2

Case

18

12

12

Environmental Certifications
Environmental
Certifications

Fact Book

1)

Pollutant Management
Atmosphericpollutantemission2)

97)

Others1

1) Product certifications (e.g., EPD (Environmental Product Declaration), Carbon Trust)

Biodiversity

1) Endangered species designated by the IUCN (International Union for Conservation of Nature) or nationally protected species

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

98

Appendix
Performance

Fact Book

Awards and Certifications
Certifiedin January 2022

Korea Environmental Industry
and Technology InstituteCertified by the Ministry of Environment for eco-friendly
Bio-PET salad containers for the first time in Korea…
Bio-PET is 100% recyclable and contains 30% sugarcanederived extract, which can reduce CO2 emissions by 20%
during the entire process of manufacturing, distribution,and incineration. The Bio-PET eco-friendly salad container
was certified by the Korea Environmental Industry andTechnology Institute of the Ministry of Environment.

AwardedDanone Pulmuone Greek P u l m u o n e w a s n a m e d
Yogurt brand, the No. 1 Greek the Statista Top 100 ESG
yogurt brand in Korea for C h a m p i o n s b a s e d o n
8 consecutive years (2014– a n a l y s i s o f 3 0 m e t r i c s
2021, according to Nielsen across more than 1,250
RI), won the 2022 Consumer companies
Choice Brand Award.
Statista, Hankook Ilbo
and Korea Times

in January 2022

Korean Federation of
Design Industry Associations

Pulmuone Green Juice's CleanseLab Series won the
Package Design Beverage category at the 10th ItAward for its excellent design with emphasis on fresh
ingredients.

Certifiedin May 2022

Chosun Ilbo, Ministry of Trade,Industry and EnergyAwardedin May 2022

Vegan Standard
Certification

Pulmuone opened Plantude, the first vegan certified
restaurant in the food industry...Plantude is the firstvegan certified restaurant. To be certified as a vegan
restaurant, the entire menu should consist of vegan food.
It is a rigorous certification that examines not only the
primary ingredients, but also the cooking environment,
including kitchen equipment, cookware, and utensils.

Awardedin January 2022

Ministry of Agriculture, Foodand Rural Affairs

Awarded by the Minister of Agriculture, Food and Rural
Affairs in recognition of the globalization of kimchi.
Contributed to the development of the agriculture,
forestry, and livestock food industries by joining the
National Food Cluster’s project for the globalization ofkimchi.

Awardedin October 2022

Korea Marketing
Association

Danone Pulmuone won the top honor at the 10th Korea
Brand Awards. Recognized for expanding the eco-friendly
label-free product line and stepping up as a sustainability
leader in the industry. Three flavors of “Hanki Oat” and“I Love Yogurt” also went label-free, reducing 74 tons ofplastic use per year.

Awardedin February 2022

Organic Life

Pulmuone won the Minister of Environment Award at the2022 Korea ESG Management Awards.

Awardedin October 2022

Korea ESG Award
Organization Committee

Pulmuone won the Chungbuk Governor's Award at the
1st Korea ESG Management Awards in recognition of its
excellent ESG management.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Certifiedin March 2022

Carbon Trust

Pulmuone was certified for Carbon Footprint Measured
with its 6 types of Activia Cup Yogurt... The Activia Cup
yogurts were certified for Carbon Footprint Measured
by the Carbon Trust, the UK's leading environmental
certification body.

Awardedin December 2022

Ministry of Trade, Industry andEnergy, Ministry of SMEs and Startups

Yoo Won-moo, the TISO Management Leader, wasrecognized… by the Minister of Trade, Industry, andEnergy for his contribution to enhancing competitivenessand promoting sustainable practices in the industry.

Certifiedin April 2022

Korea Food Safety Management
Certification Authority

Pulmuone Eumseong Logistics Center (Exofresh
Logistics) in Chungbuk, Korea and Yangji Logistics Center(Pulmuone Foodmerce) in Yongin, Gyeonggi-do became
the first food logistics centers to obtain HACCP (Hazard
Analysis and Critical Control Point) certification from the
Korea Food Safety Management Certification Authority.

Certifiedin December 2022

Korea Fair Trade Commission,
Korea Consumer Agency

Four subsidiaries of Pulmuone were certified for
CCM (Consumer Centered Management). Leading theconsumer-oriented culture... Pulmuone Health and Living,
Orga Whole Foods, and Foodmerce have been certified for
CCM for 7 consecutive years, and Pulmuone Green Juice
for CCM for 2 consecutive years.

Awardedin May 2022

Ministry of Food andDrug Safety

Recognized by the Chungbuk Governor for its strong
commitment to creating a safe food environment with
Pulmuone LOHAS Academy and Samsam Meal Center on
the 21st Food Safety Day.

Awardedin February 2023

Korea Package Design Association,
Ministry of Trade, Industry and Energy,
Korea Design Agency

Pulmuone Green Juice won the Korea Package DesignAwards with four products at the 31st Korea Package
Design Competition. This is the fifth time for Pulmuone
Green Juice to win the award after winning in 2016, 2017,2019, and 2021. Daily Morning Probiotics won the BronzeAward while 4 types of Handy Meal Series, Hyeolhaeng
Green, and Water Jelly Apple and Collagen won the Pack
Star Award.

Awarded99

Fact Book

in May 2022

Ministry of Food andDrug Safety

Lee Sang-Yoon, the head of Pulmuone Corporate
Technology Office, received the Presidential Award at the
21st Food Safety Day. Recognized for contributing to theimprovement of food safety through HACCP (Food Safety
Management Certification Standard) and global quality
system certification and support for microbial technology.

Awardedin March 2023

Korea Management
Association Consultants

Pulmuone was named the All Star of the Most Admired
Korean Companies for the 17th consecutive year
for the first time in the industry. The company has
been recognized for its strong commitment to social
responsibilities based on its love for neighbors andrespect for life since its foundation.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

100

Fact Book

Business Agreements

Pulmuone and the Korean Diabetes Association signed apartnership agreement to improve diets for people withdiabetes. As an official sponsor of diabetics in Korea,
Pulmuone Food provides foods and information for people
with diabetes.
Korean Diabetes Association

January 2022

Pulmuone and the Ministry of Environment signed apartnership agreement to cooperate on environmental
education to support a sustainable future. Nine companies
signed the agreement, with Pulmuone being the only
general food company to sign.
Ministry of Environment

June

Pulmuone and CESCO signed an MOU to collaborate on
Innovative Total Hygiene Solution for Food Quality and
Safety Management.
CESCO

August2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

101

Fact Book

Pulmuone and the Korea Employment Agency for Persons
with Disabilities signed an agreement to establish
Standardized Subsidiary Workplace for People with
Disabilities to create jobs.

Pulmuone and Jeollabuk-do signed a partnership agreement
to collaborate on R&D projects to develop sustainableseafood products.

Pulmuone Waters and World Vision, an international relief
and development NGO, signed a sponsorship agreement to
supply drinking water for children.

Korea Employment Agency for Persons with Disabilities.

Jeollabuk-do

World Vision

September

January 2023

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

102

Fact Book

Fact BookGRI Index
Topic

Disclosures

Page

Note

Topic

The organizationand its reporting
practices

Activities andworkers

Governance

Disclosures
2-22

GRI 2:General Disclosures 2021
2-1

Organizational details

2, 8, 14-17

2-2

Entities included in the organization’ssustainability reporting

2, 8, 14-15, 69

2-3

Reporting period, frequency and contact point 2

2-4

Restatements of information2

2-5

External assurance

111

2-6

Activities, value chain and other business
relationships

16-17, 69, 91

2-7

Employees

87

2-8

Workers who are not employees

87

2-9

Governance structure and composition

70-73

2-10

Nomination and selection of the highest
governance body

72

2-11

Chair of the highest governance body70, 722-12

Role of the highest governance body inoverseeing the management of impacts

38, 71, 74

2-13

Delegation of responsibility for managing
impacts

38

2-14

Role of the highest governance body insustainability reporting

74

2-17

Collective knowledge of the highest
governance body

76

2-18

Evaluation of the performance of the highest
governance body

74

2-19

Remuneration policies

53, 742-20

Process to determine remuneration

53, 742-21

Annual total compensation ratio

89

2-23
Strategy, policies
and practices

Stakeholder
engagement

2-24
2-25
2-26
2-27
2-28
2-29
2-30

Disclosures onmaterial topics

3-1
3-2
3-3

Agriculture,
Aquaculture andFishing

13.9

201-1
Economic
Performance

201-2
201-3
201-4

Market Presence

202-1

Page

Statement on sustainable development strategy

7, 10-1122, 25, 29, 41, 48, 49, 69, 79,
Policy commitments
81, 113, 114-115
24, 27-28, 30-31, 38, 43-44,
46-47, 49-51, 53, 60, 65-66,
Embedding policy commitments
68, 74-75, 80, 82
Processes to remediate negative impacts
27, 82, 66
Mechanisms for seeking advice and raising concerns 27, 82, 66
Compliance with laws and regulations
93
Membership associations
112
Approach to stakeholder engagement39, 56
Collective bargaining agreements
57
GRI 3: Material Topics 2021
Process to determine material topics
18
List of material topics
18-19
Management of material topics
22, 25, 29
GRI 13: Agriculture, Aquaculture and Fishing Sectors 2022
Food security

50, 96

GRI 200: Economic
Direct economic value generated and86
distributed
Financial implications and other risks and45
opportunities due to climate change
Defined benefit plan obligations and other55
retirement plans
Financial assistance received from87
government
Ratios of standard entry level wage by gender
89
compared to local minimum wage

Note

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Topic

Anti-corruption

Anti-competitive
Behavior

Tax

Disclosures

Page

205-1

Operations assessed for risks related tocorruption

82

205-2

Communication and training about anticorruption policies and procedures

80

205-3

Confirmed incidents of corruption and actions
82, 93
taken

206-1

Legal actions for anti-competitive behavior,anti-trust, and monopoly practices

93

207-1

Approach to tax

83

207-2

Tax governance, control, and risk
management

83

207-3

Stakeholder engagement and management of83
concerns related to tax

Note

Emissions

Biodiversity

Direct (Scope 1) GHG emissions

Page

305-2

Energy indirect (Scope 2) GHG emissions

94

305-3

Other indirect (Scope 3) GHG emissions

94

305-4

GHG emissions intensity

94

305-5

Reduction of GHG emissions

94

Emissions of ozone-depleting substances(ODS) -305-7

Nitrogen oxides (NOx), sulfur oxides (SOx),
and other significant air emissions

97

306-1

Waste generation and significant wasterelated impacts

48, 50306-2Management of significant wasterelated
impacts

48, 5095

306-3

Waste generated

96

302-2

Energy consumption outside of the organization -306-4

Waste diverted from disposal

96

306-5

Waste directed to disposal

96

308-1

New suppliers that were screened using
environmental criteria

63-64

308-2

Negative environmental impacts in the supply
65
chain and actions taken

Energy consumption within the organization

Waste

302-3

Energy intensity

95

302-4

Reduction of energy consumption

46

303-1

Interactions with water as a shared resource

50

303-2

Management of water dischargerelated
impacts50

303-3

Water withdrawal

95

303-4

Water discharge

95

303-5

Water consumption

95

304-3

Habitats protected or restored

51

304-4

IUCN Red List species and national
conservation list species with habitats inareas affected by operations

97

N/A

Supplier
Environmental
Assessment

Fact Book

Note

94

305-6

302-1

Water andEffluents

Disclosures
305-1

GRI 300: Environmental

Energy

Topic

103

N/A

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Topic

DisclosuresPage

GRI 400: Social
401-1
Employment

Labor/
Management
Relations

87
54-55

401-3
402-1

Minimum notice periods regarding operational 57
changes

54-55

Occupational health and safety management 29-31
systemidentification, risk assessment, and403-2 Hazard
30incident investigation
403-3 Occupational health services
30, 55Worker participation, consultation, and403-4 communication on occupational health and29
safetytraining on occupational health andOccupational
403-5 Worker
31
safetyHealth and Safety403-6 Promotion of worker health30, 55
Prevention and mitigation of occupational
403-7 health and safety impacts directly linked by30
business relationships
covered by an occupational health403-8 Workers
29, 31and safety management system403-9 Work-related injuries
92403-10 Work-related ill health
92
hours of training per year per
404-1 Average90
employee
Training andfor upgrading employee skills and 52-53
404-2 Programs
Educationtransition assistance programsof employees receiving regular404-3 Percentage
performance and career development reviews 88
405-1 Diversity of governance bodies and employees 73, 88
Diversityand Equal
Ratio of basic salary and remuneration of
405-2
89Opportunity
women to men
403-1

Topic
Nondiscrimination

New employee hires and employee turnover
Benefits provided to full-time employees thatare not provided to temporary or parttime
employees
Parental leave

401-2

Note

Disclosures

Page

406-1

Incidents of discrimination and corrective
actions taken

89

Securitypractices

410-1

Security personnel trained in human rights
policies or procedures

-

Local
Communities

413-1

Operations with local community engagement,
impact assessments, and development
51, 67-68
programs

414-1

New suppliers that were screened usingsocial criteria

63

414-2

Negative social impacts in the supply chain
and actions taken

65

415-1

Political contributions

79

416-1

Assessment of the health and safety impacts
of product and service categories

12, 60416-2

Incidents of non-compliance concerning thehealth and safety impacts of products andservices

93

417-2

Incidents of non-compliance concerning
product and service information and labeling

93

417-3

Incidents of non-compliance concerningmarketing communications

93

418-1

Substantiated complaints concerning
breaches of customer privacy and losses ofcustomer data93

Supplier Social
Assessment
Public Policy

Customer Healthand Safety

Marketing andLabeling

CustomerPrivacy

104

Fact Book

Note

none

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

TCFD Index
Recommendations

Governance

Recommended Disclosures

Page

a. Describe the board’s oversight of climate-relatedrisks and opportunities.

45

b. Describe management’s role in assessing andmanaging climate-related risks and opportunities

45

a. Describe the climate-related risks and opportunities
the organization has identified over the short, medium, 45-46
and long term.
Strategyb. Describe the impact of climaterelated risks andopportunities on the organization’s businesses,
strategy, and financial planning

45-46

c. Describe the resilience of the organization’s strategy,
taking into consideration different climate-related
45
scenarios, including a 2°C or lower scenario.
a. Describe the organization’s processes for identifying
45
and assessing climate-related risks.
b. Describe the organization’s processes for managing
Risk Management climate-related risks.

45

c. Describe how processes for identifying, assessing,and managing climate-related risks are integrated into 45
the organization’s overall risk management.
a. Disclose the metrics used by the organization toassess climaterelated risks and opportunities in linewith its strategy and risk management process.
Metrics andTargets47

b. Disclose Scope 1, Scope 2, and, if appropriate, Scope
3 greenhouse gas (GHG) emissions, and the related
94
risks.
c. Describe the targets used by the organization to
manage climate-related risks and opportunities andperformance against targets

46-47※ Pulmuone will publish the TCFD Report in the second half of 2023, some of which are included in this report.

Note

Fact Book

105

About Pulmuone

2022 Pulmuone Integrated Report

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

106

Fact BookSASB Index
Topic

Code

Metric

Page

Note

Topic

Processed Foods(1) Total energy consumed
EnergyFB-PF-130a.1 (2) Percentage grid electricity
Management(3) Percentage renewable95

Product
Labelling &Marketing9595"(1) Total water withdrawn; % of each inregions with High or Extremely High Baseline 95
Water Stress"

Water
resource
management

FB-PF-140a.1 "(2) total water consumed; % of each inregions withHigh or Extremely High Baseline Water
Stress"93

Description of water management risks and
FB-PF-140a.3 discussion of strategies and practices tomitigate those risks

50

Food
SafetyFB-PF-250a.4

Health &Nutrition

FB-PF-260a.2

MetricNumber of incidents of non-compliance
FB-PF-270a.3 with industry or regulatory labelling and/or
marketing codes

Packaging
Discussion of strategies to reduce theLifecycle
FB-PF-410a.2 environmental impact of packaging
Management
throughout its lifecycle(1) Total number of notices of food safety
violation received

93(2) Percentage corrected

93(1) Number of recalls issued

-

none

(2) Total amount of food product recalled

-

none

Discussion of the process to identify andmanage products and ingredients related
to nutritional and health concerns among
consumers

58, 60

Environmental& Social
Impactsof Ingredient
Supply Chain

FB-PF430a.2

Ingredient
Sourcing

FB-PF440a.2

Activity
Metrics

Page
93

Total amount of monetary losses as a result
FB-PF-270a.4 of legal proceedings associated with labelling 93
and/or marketing practices

95

Number of incidents of non-compliance
FB-PF-140a.2 associated with water quality permits,standards and regulations

FB-PF-250a.3

Code

49

Suppliers’ social and environmental
responsibility audit non-conformance rate
and associated corrective action rate for (a)major non-conformances

65

Suppliers’ social and environmental
responsibility audit non-conformance rate
and associated corrective action rate for (b)minor non-conformances

65

List of priority food ingredients and discussionof sourcing risks related to environmental
63
and social considerations

FB-PF-000.B Number of production facilities※ Reported on metrics applicable under the laws and regulations of Korea.

2

Note

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

107

Fact Book

Independent Auditor Report
Pulmuone Corporate
To the Shareholders and the BOD of Pulmuone Corporate■Opinion on Audit
We have audited the consolidated financial statements for Pulmuone Corporate and its subsidiaries (hereinafterreferred to as the “Company”). The consolidated financial statements consist of the consolidated statement offinancial position as of December 31, 2022, as well as the consolidated statements of comprehensive income,the consolidated statements of changes in stockholders' equity, the consolidated statements of cash flow, for theyears that have since ended, and notes to the consolidated financial statements including a summary of significant
accounting policies. In our opinion, the consolidated financial statements fairly present, in the light of materiality,
the financial position of the Company as of December 31, 2022, as well as its financial performance and its cash
flows for the years that have since ended in accordance with Korean International Financial Reporting Standards.
■Basis for Audit Opinion
We conducted our audits in accordance with the Korean Standards on Auditing. Our responsibilities under thesestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of this audit report. We are independent from the Company in accordance with the ethicalrequirements of the Republic of Korea in regard to the audit of the financial statements and have fulfilled otherethical responsibilities in accordance with the prevailing audit regulations. We believe that the audit evidence wehave obtained is sufficient and appropriate to provide a basis for our audit opinion.
■Key Audit Matters
Key audit matters are the most significant in the auditor’s professional judgement for the audit of the financial
statements of the current period. These matters have been addressed in forming our opinion from the perspectiveof our audit of the consolidated financial statements as a whole, and we do not provide a separate opinion onthese matters.
Impairment Test of Cash-Generating Units■Reasons for Determining the Key Audit Matters
As disclosed in Note 16 to the consolidated financial statements, the Company has identified indicators of
impairment in its U.S. and Japanese subsidiaries, which are independent cash-generating units, and the carrying
amounts of the operating assets attributable to these areas are significant.
Furthermore, as disclosed in Note 18 to the consolidated financial statements, the Company performs an annual
impairment test for cash-generating units to which indefinite-lived intangible assets, such as good will, have been
allocated and their carrying amounts are material.
We have determined the key audit matters given that it involves significant judgment and assumptions bymanagement, including estimates of future cash flows, growth rates, and discount rates, when testing theimpairment of the above cash-generating units.
■Methods of Addressing the Key Audit Matters
To address the key audit matters, we have:- Evaluated the qualifications of external experts consulted by the Company- Determined the Company's cash-generating units and reviewed the appropriateness of the net assets allocatedto each cash-generating unit
- Evaluated the appropriateness of the models used in valuation- Checked whether the estimates of future cash flows are consistent with the business plan approved by the
management- Verified the accuracy of the valuation calculations and reviewed the appropriateness of the value throughsensitivity analysis■Other Matters
The consolidated financial statements of the Company for the year ended December 31, 2021 have been audited
by other auditors in accordance with the Korean Standards on Auditing, who expressed the opinion that it wasappropriate in the auditor’s report dated March 22, 2022.
■Responsibilities of the Management and the Governing Body for the Consolidated Financial Statements
The management is responsible for the preparation of these consolidated financial statements and fair disclosureof the data in accordance with the Korean International Financial Reporting Standards. The management isalso responsible for the internal control determined as necessary to enable the preparation of the consolidated
financial statements that are free from material misstatement due to fraud or error.
In preparing the consolidated financial statements, the management of the Company is responsible for assessing
the Company's ability to continue as a going concern, and disclosing matters related to the going concern, whereapplicable. Unless the management either intends to liquidate the Company or to cease its operations, themanagement is also responsible for the use of the existence of going concern in the accounting.
The governing body is responsible for overseeing the financial reporting procedure of the Company.
■Our Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to secure reasonable assurance about whether the consolidated financial statements as a

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

whole are free from material misstatement due to fraud or error, and issue an auditor's report that includes
our opinion. Reasonable assurance implies a high level of assurance, but it does not guarantee that an audit
conducted in accordance with auditing standards will always discover a material misstatement. Misstatements
may arise from fraud or error. Misstatements are considered material if they can be reasonably expected,
individually or collectively, to influence the user’s economic decisions made on the basis of these consolidated
financial statements.
As part of an audit in accordance with the prevailing audit standards, we exercise professional judgment andmaintain professional skepticism throughout the entire audit process. We also perform the following:• We identify and assess the risks of material misstatement of the consolidated financial statements, whether due
to fraud or error, and design and perform audit procedures to address those risks. In addition, we obtainsufficient and appropriate audit evidence to provide the basis of our audit opinion. The risk of failing to discovera material misstatement due to fraud overweighs the risk resulting from an error, since fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the breach of internal controls.
• We understand the necessity of internal control related to the audit in order to design audit procedures that areappropriate for the circumstances. However, it is not intended to express an opinion on the effectiveness of theinternal controls.
• We evaluate the appropriateness of accounting policies applied for the preparation of the consolidated financial
statements and the reasonableness of accounting estimates with the related disclosures made by management.
• Based on the appropriateness of management's use of the existence of going concern in the accounting andthe audit evidence collected, we make conclusions on whether there exists a material uncertainty related toevents or conditions that may give rise to significant questions about the Company's ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor
report regarding the relevant disclosures from the consolidated financial statements and modify our opinion incase such disclosures are found inadequate. Our conclusions are based on the audit evidence obtained up to thedate of our auditor report. However, future events or conditions may cause the Company to cease to exist as agoing concern.
• We evaluate the overall presentation, structure, and content of the consolidated financial statements, including
the disclosures, and review whether the consolidated financial statements represent the underlying transactions
and events in a fair manner.
• We obtain sufficient and appropriate evidence related to the Company's financial information or business
operations within the group to enable us to express an audit opinion on the consolidated financial statements.
We are responsible for the direction, supervision, and performance of the group audit and are solely responsible
for our audit opinion.

108

Fact Book

We communicate with the governing body of the Company regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal controls
identified during our audit.
In addition, we provide a statement to the governing body informing that we comply with the ethical requirements
related to our independence and communicate with the governing body any relationships and other matters and,
where applicable, the relevant institutional safeguards that are considered relevant to our independence.
From the matters communicated with the governing body, we determine the most significant matters in theaudit of the consolidated financial statements of the current period, recognizing them as the key audit matters.
We describe these matters in our audit report unless the law precludes public disclosure of the matter or, in
extremely rare circumstances, we conclude that a matter should not be communicated in our report because theadverse consequences of doing so would be reasonably expected to outweigh the benefit of public interest bysuch communication.

The partner in charge of the audit resulting in this independent auditor's report is Jeong Yang-soo,
CPA.

100, Hangang-daero, Yongsan-gu, Seoul
March 22, 2023

Samil PwC
CEO Yoon Hoon-soo

This audit report is valid as of March 22, 2023. Events or circumstances may occur since the dateand have a material effect on the consolidated financial statements of the Company, and this may
result in a revision of this audit report.

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

Report on the Operating Status of the Internal
Accounting Management System
Report on the Operating Status of the Internal Accounting Management Systemby the CEO and the Internal Accounting Manager

109

Fact Book

Audit Committee’s Internal Accounting
Management System Evaluation Report
Audit Committee's Internal Accounting Management System
Evaluation Report

To the Shareholders, the BOD, and the Audit Committee of Pulmuone Corporate

To the Shareholders and the BOD of Pulmuone Corporate

The CEO and the internal accounting manager evaluated the design and operation status of the internal accounting
management system for the fiscal year ending December 31, 2022.

The Audit Committee evaluated the design and operation status of the company's internal accounting management
system for the fiscal year ending on December 31, 2022.

Responsibility for the design and operation of the internal accounting management system rests with the management of
the company, including the CEO and the internal accounting manager.

Responsibility for the design and operation of the internal accounting management system rests with the managementof the company, including the CEO and the internal accounting manager, and the Audit Committee is responsible formanagement and oversight.

For the preparation and disclosure of reliable financial statements, the CEO and the internal accounting manager
evaluated whether the company's internal accounting management system is effectively designed and operated toprevent and detect errors or irregularities that may cause distortion of the financial statements.
The CEO and the internal accounting manager used the “Conceptual Framework for Design and Operation of Internal
Accounting Control System” (or the name of the specific system used) presented by the Internal Accounting Management
System Committee as a reference for the design and operation of the internal accounting management system. In
addition, the “Evaluation and Reporting Best Practices for Internal Accounting Management System” (or the name of thespecific system used) presented by the Internal Accounting Management System Committee was used as an evaluation
standard in evaluating the design and operation status of the internal accounting management system.
From the evaluation of the design and operation status of the internal accounting management system conducted by
the CEO and the internal accounting manager, we have found that as of December 31, 2022, our internal accounting
management system is effectively designed and operated from the perspective of materiality based on the “Conceptual
Framework for Design and Operation of Internal Accounting Control System” (or the name of the specific system used).
The CEO and the internal accounting manager confirmed that the report was not falsely stated or indicated, and that thematters to be stated or indicated were not omitted.
In addition, the CEO and the internal accounting manager confirmed that the report does not contain or indicate facts
causing any serious misunderstanding, and the report was checked and reviewed in person with due care and diligence.

14, Feb, 2023

CEOInternal Accounting Manager

Lee Hyo-yul (Signature)

Lee Jeong-eon (Signature)

Based on the operation status report of the internal accounting management system submitted to the Audit Committeeby the CEO and the internal accounting manager, the Audit Committee evaluated whether it is effectively designed andoperated to prevent and detect errors or irregularities that may cause distortion of the financial statements and enable
the preparation and disclosure of reliable financial statements, and whether the internal accounting management system
actually contributes to the preparation and disclosure of credible accounting information.
In addition, the Audit Committee checked whether anything was falsely stated or indicated, or whether any matters to
be stated or indicated were omitted in the operation status report of the internal accounting management system, andreviewed whether the correction plan of the internal accounting management system could actually contribute to theimprovement of the company's internal accounting management system.
The company used the “Conceptual Framework for Design and Operation of Internal Accounting Control System”
presented by the Internal Accounting Management System Committee as a reference for the design and operation of its
internal accounting management system.
The Audit Committee used the “Evaluation and Reporting Best Practices for Internal Accounting Management System”
presented by the Internal Accounting Management System Committee as an evaluation standard in evaluating the designand operation status of the internal accounting management system.
The Audit Committee has found that as of December 31, 2022, the company's internal accounting management system is
effectively designed and operated from the perspective of materiality based on the “Conceptual Framework for Design
and Operation of Internal Accounting Control System.”

14, Feb, 2023
Chairman of the Audit Committee Kim Woo-jin (Signature)2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

110

Fact Book

Independent Assurance Statement
To readers of 2022 Pulmuone Integrated Report■Introduction
Korea Management Registrar (KMR) was commissioned by Pulmuone to conduct an independent• SASB Sustainability Disclosure Topics & Accounting Metrics• TCFD recommendations

assurance of its 2022 Integrated Report (the “Report”). The data and its presentation in the Report is thesole responsibility of the management of Pulmuone. KMR’s responsibility is to perform an assurance

As for the reporting boundary, the engagement excludes the data and information of Pulmuone’ partners,

engagement as agreed upon in our agreement with Pulmuone and issue an assurance statement.

suppliers and any third parties.

■Scope and Standards■KMR's Approach

Pulmuone described its sustainability performance and activities in the Report. Our Assurance TeamTo perform an assurance engagement within an agreed scope of assessment using the standards outlined

carried out an assurance engagement in accordance with the AA1000AS v3 and KMR’s assurance

above, our Assurance Team undertook the following activities as part of the engagement:

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 the reliability• reviewed the overall Reportof the information and data provided using the Global Reporting Initiative (GRI) Index provided below.

• reviewed materiality assessment methodology and the assessment report

The opinion expressed in the Assurance Statement has been formed at the materiality of the professional• evaluated sustainability strategies, performance data management system, and processes

judgment of our Assurance Team.

• interviewed people in charge of preparing the Report• reviewed the reliability of the Report's performance data and conducted data sampling

Confirmation that the Report was prepared in accordance with GRI standards 2021 was included in• assessed the reliability of information using independent external sources such as Financial

the scope of the assurance. We have reviewed the topic-specific disclosures of standards which wereSupervisory Service’s DART and public databases

identified in the materiality assessment process. We also confirmed that the report was prepared inaccordance with the TCFD recommendations and SASB.

■Limitations and Recommendations
KMR’s assurance engagement is based on the assumption that the data and information provided by• GRI Sustainability Reporting Standards 2021

Pulmuone to us as part of our review are provided in good faith. Limited depth of evidence gathering• Universal standards

including inquiry and analytical procedures and limited sampling at lower levels in the organization• Topic specific standards

were applied. To address this, we referred to independent external sources such as DART and National- GRI 200(Economy) : 201, 205, 206, 207

Greenhouse Gas Management System (NGMS) and public databases to challenge the quality and- GRI 300(Environment) : 302-1, 302-3, 302-4,303, 305, 306, 308

reliability of the information provided.

- GRI 400(Social) : 403, 405, 406, 410, 414, 416

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance■Conclusion and Opinion

111

Fact Book■Reliability of Specific Sustainability Performance Information

Based on the document reviews and interviews, we had several discussions with Pulmuone on

In addition to the adherence to AA1000AP (2018) principles, we have assessed the reliability of economic,

the revision of the Report. We reviewed the Report’s final version in order to make sure that ourenvironmental, and social performance data related to sustainability performance. We interviewed therecommendations for improvement and revision have been reflected. Based on the work performed, it isin-charge persons and reviewed information on a sampling basis and supporting documents as well as

our opinion that the Report applied the GRI Standards. Nothing comes to our attention to suggest that theexternal sources and public databases to confirm that the disclosed data is reliable. Any intentional error

Report was not prepared in accordance with the AA1000AP (2018) principles.

or misstatement is not noted from the data and information disclosed in the Report.

Inclusivity
Pulmuone has developed and maintained different stakeholder communication channels at all levels to■Competence and Independence

announce and fulfill its responsibilities to the stakeholders. Nothing comes to our attention to suggest

KMR maintains a comprehensive system of quality control including documented policies and proceduresthat there is a key stakeholder group left out in the process. The organization makes efforts to properlyin accordance with ISO/IEC 17021·2015 - Requirements for bodies providing audit and certificationreflect opinions and expectations into its strategies.

of management systems. This engagement was carried out by an independent team of sustainability
assurance professionals. KMR has no other contract with Pulmuone and did not provide any services toMateriality

Pulmuone that could compromise the independence of our work.

Pulmuone 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.
Responsiveness
Pulmuone 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 Pulmuone’ actions.
ImpactPulmuone identifies and monitors the direct and indirect impacts of material topics found through themateriality assessment, and quantifies such impacts as much as possible.

September 2023 Seoul, Korea

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

GHG Emissions Verification Statement

Fact Book112

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

113

Fact Book

Global Initiatives and Memberships

Pulmuone supports and associates with various initiatives to improve its own ESG capabilities andthose of its industry and to achieve global goals.
Global Initiaitves• UN SDGs• UN Universal Declaration of Human Rights• ILO International Labour Organization

Industrial
Associations, etc,

• BEST ESG Forum (The Institute for Indusrial Policy Studies)• CGF(The Consumer Goods Forum)• Korea Chamber of Commerce and Industry• Korea Food Industry Association• Korea Fair Competition Federation• Korean Society of Food Science and Technology• Korea Employers Federation• The Korean Museum Association• Korea Industrial Technology Association• The Korean Society of Food Science and Nutrition• Korea Soybean Society• Environmental Compulsory Education• Korea Exchange• Korea Listed Companies Association• International Society of Life Sciences of Korea

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

114

Fact Book

Guideline on Pulmuone Environmental, Safety, Health

Guideline on Pulmuone Environmental, Safety, Health
To practice the mission of ‘the company that makes a healthy tomorrow for people and the planet withwholesome foods,’ we will enhance the sustainability of the Earth’s environment in the process of
production and sales of products and services and push ESH management to enhance the environmental
security performance, ensuring that people and the Earth are healthy. In addition, Pulmuone will comply
with ESH regulations applied to our company and other requirements.
■Compliance• Reduce non-financial risks regarding product and service products and improve brand value by operating
environmental security management system.
• Employees of Pulmuone perceive the ESH management system in the whole business activity and voluntarily
explore and improve risk factors, improve their health, reduce energy and water, save energy, and recycle.
• This guideline is strongly recommended for suppliers, service providers, contractors, and individual
contractors to apply, thus protecting the environment and creating a safe work environment.

■Product and service• Reduce environmental effects in the whole process from the design of products and services to production,
logistics, use, and disposal and take the lead in eco-friendly products and services.

■Production facility, business facility• The company consistently improves the environment of workplace through education and inspection toprovide all employees with a safe and healthy work environment in Pulmuone.
• Pollutant emission standard is ½ of the legal standard and wastewater discharged to the stream is managedby agricultural water standard.
• The outcome regarding water, energy, climate change, environmental safety, waste, and production
environment is evaluated regularly and disclosed to internal and external stakeholders.

■Logistics and distribution• Recognize the environmental effects regarding greenhouse gases and packing material reusability andestablish plans to improve them.

■Waste management• We manage the waste occurrence history of Pulmuone and set the goal to lessen the volume. Regarding
food loss and waste, Pulmuone complies with more strict standards.
• We measure and manage the loss and waste volumes with the life cycle of each food category andmanage them by setting the reduction goal.
• We push for recycling food loss and waste, share the related programs with suppliers, and pursue thesustainable industry ecosystem.

■Product and service suppliers and partners (JV, license, outsourcing partner, etc.)• Suppliers and business partners of Pulmuone comply with environmental safety regulations and otherrequirements, thus mutually cooperating and improving the management level.

■Due diligence and M&A• When due diligence and M&A kick in, Pulmuone will weave this ESH guideline into the evaluation
process to ensure that it is reflected in all enterprises.

■Local community• Pulmuone pursues environmental protection and CSR by cooperating with the local community to fulfill
responsibility

Pulmuone Co., Ltd. CEO

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

115

Fact Book

Pulmuone Respect for Human Rights Declaration

Pulmuone Respect for Human Rights Declaration■PledgePulmuone create healthy tomorrow for the people and planet with wholesome food.
We officially support international human rights and labor standards based on• The Universal Declaration of Human Rights• UN Guiding Principles on Business and Human Rights• OECD Guidelines for Multinational enterprises• UNGC UN Global Pulmuone Compact 10 Guidelines• Convention on the Rights of the Child• ILO’s eight fundamental conventions
and obeys the labor laws of all countries and regions running the business to put emphasis on human dignity
and value and fulfill social responsibility.
Declaration of Human Rights Respect is the basis for respecting humans and protecting the human rights ofstakeholders and we adhere to the following.
■Responsibility
Pulmuone's Respect for Human Rights Policy applies to Pulmuone employees, and also we follow it based on
Pulmone's CSR Charter when dealing with all stakeholders and business partners.
Pulmuone encourages business partners to respect international standards regarding human rights andPulmuone’s Respect for Human Rights Policy, sharing this declaration with all stakeholders who are influenced
by our business activities and contributing to awareness and its expansion.
■Basic Principles
1. Human respect• Pulmuone respects all employees and stakeholders as a human being and strives to foster a working
environment free of physical and emotional inhumane treatment and threats such as coercion and abuse.
• Pulmuone understands that business activities across product development and product and service provision
may affect the human rights of employees and stakeholders potentially and actually and manages risks.
• Pulmuone strives to actively remedy when the violation of human rights takes place.

(Date enacted: Oct 27, 2022)• Pulmuone abides by internationally qualified human rights standards and regulations applied in
all places where business is taking place and seeks directions to comply with global human rights
standards.
• When it comes to risks that may bring about serious human rights violations, the company deals withthe risks as an important management issue.
2. Employment and working conditions without discrimination• Pulmuone does not discriminate against employees by gender, race, belief, religion, physical condition,level of education, age, birth region, country of origin, political views, disability, or medical history andoffers employment opportunities and working condition equally.
• Pulmuone respects the personality of members and treats them fairly and reasonably according totheir capabilities and performance.
• Pulmuone aims to ensure the protection of maternity and work-family balance stipulated in related
laws including Equal Employment Opportunity and Work-Family Balance Assistance Act and does notdiscriminate against women in terms of childbirth leave and childcare leave.
3. Ensure the freedom of association and collective bargaining• Pulmuone ensures that employees establish unions and membership freely and activities of unions do
not lead to disadvantages.
• Pulmuone ensures the right of collective bargaining through the representative of a union. In addition,
Pulmuone must not refuse to conduct collective bargaining and respect and implement the outcome ofcollective bargaining sincerely.
• Pulmuone provides the representative of a union with the information and resources necessary to
carry out union activities.
4. Prohibition of Forced Labor and Observance of Work Hours• Pulmuone observes work hours in accordance with Labor Standards Act and shall not force a worker

2022 Pulmuone Integrated Report

About Pulmuone

2022 Key Topic

Pulmuone with ESG

Appendix
Performance

to work against his/her own free will.
• Pulmuone shall not force a worker to work against his/her own free will, including trafficking, slavery, debt
labor, and forced labor caused by mental and physical imprisonment.
• Pulmuone strives to allow wages and benefits of employees to exceed the minimum level stipulated in labor
regulations of each country and region.
5. Prohibition of Child Labor• Pulmuone pursues the eradication of child labor.
• According to the standards of ILO, Pulmuone strictly prohibits the labor of any person younger than the ageof compulsory schooling and any person younger than the age of 15. (Apply local law or acts when the age
criterion is stricter.)• When a child younger than the age of 15 was employed, we check the child, help them to get back to his/herhome, and encourage them to complete the compulsory schooling.
• Pulmuone never establishes the transaction relationship with enterprises conducting child labor.
6. Ensure Industrial Safety• Pulmuone offers hygienic working conditions and ensures the rights of safety and the right to rest.
• Pulmuone provides separate safety equipment and safety education when workers work in dangerous
working conditions.
• Regarding the accidents and diseases that occurred at the workplace, Pulmuone takes action according torelated regulations including Occupational Safety and Health Act.
• Pulmuone identifies and controls the harmful and risky factors of all stakeholders, establishing the systemand fostering an environment ensuring safety.
7. Responsible supply chain management• Pulmuone guarantees equal opportunity in all business relations and conducts transparent and fair business.
• Pulmuone informs business partners in cooperation and business relations of the human rights policy andsupports and cooperates with them for implementation. In addition, in a case of violation of human rights in

116

Fact Book

business relations, we listen to the opinions of a lot of stakeholders and come up with remediation.
• When serious human rights violations committed by business partners are not corrected, we will stopbusiness relations.
8. Human rights protection of local residents• Pulmuone respects and protects the right to live, safety right, and property rights and is careful not toinfringe on human rights.
9. Ensure Environmental right• Pulmuone establishes and maintains the environmental business system and consistently discloses
related information internally and externally.
• Pulmuone must stick to a precautionary approach regarding environmental issues, establishing an
emergency plan to prevent and ease severe environmental damage and environmental disaster.
10. Customer Satisfaction and Personal Information Protection• Pulmuone endeavors to establish and act on strict principles regarding product development andservice provision to ensure the health recovery, health enhancement, and happiness of customers.
• Pulmuone protects the personal information of customers acquired during business activities inaccordance with personal information protection acts.

Pulmuone co., Ltd. General CEO Lee Hyo-yul

Team/Department/Divisions participating in the publicationof the Report (on the last page)ana ement P ann n eam
ana ement on t n e artment
P rc a n nno at on e artment
nterna ontro a at on eamt a ro t ff ce
ta trateeam
e a e artment
Bran eamoo afet eam
afet P ann n eam
on o ate cco nt n eam
P ann n entere ect for man
t ana ement eam
P ann n eam
e e o ment eam
F n n e artment
nformat on ec r t eamom anceort eamco fr enr c t re an F er e
Packa n e earc eam
er ea or orat on
P eam
n ronmenta n neer n eam
Beam
B o afet eam
P ann n eam
omm n cat on eam
F B nee artmente earc eam

eam

P P e e o ment e artment
We would like to thank you all of who directly or indirectly contributed tothe publication of the Pulmuone 2022 Integrated Report.

Pulmuone Co., Ltd.
F o e aeBnan

eon roan nameo

m one co kreIntegrated Report Department Pulmuone TISO Management Office / TISO Management Secretaria ESG Management TeamPulmuone Co., Ltd.
F o e aeBnan

eon rom one co kr
an nameoeIntegrated Report Department Pulmuone TISO Management OfficePulmuone Co., Ltd. www.pulmuone.co.kr
8F, Rosedale Building, 280 Gwangpyeong-ro, Gangnam-gu, Seoul | Tel 02-2040-4400

This report was printed on eco-friendly paper in soy oil ink.