WE CARRYTHE FUTURE
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ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG MANAGEMENTABOUT THIS REPORTESG PERFORMANCE

002

APPENDICES

Overview

Reporting Period and Boundaries

account of our key performances and achievements on ourformance from January 1, 2022 through December 31, 2022.

We are pleased to share with our stakeholders a transparent
journey towards ESG management through the 2022 HMM
ESG report. It details 5 material issues selected through themateriality assessment which reflects stakeholders’ opinions,and our activities and progress on those issues. We promise toactively communicate with stakeholders through the publication of annual reports and share our efforts to achieve sustainability in a reliable manner.

This report covers our sustainability activities and perSome of qualitative performance in the first half of 2023 is also
included to give readers a better understanding. As for quan-titative performance, three years of data is provided herein toenable readers to track the trends.

The scope of this report includes the activities and progress ofthe Headquarters, domestic and overseas offices and branches. In terms of the operation of ships and terminals, the reportcovers the activities of subsidiaries which are 100% owned

Reporting Principles and Framework

This report has been prepared in accordance with the Global

Reporting Initiative(GRI) Standards 2021. Along with this,by HMM. We added footnotes to some of data to specify theirscope when needed.

it takes into account the recommendations of the Task Force

Data Assurance

industry-specific standards of the Sustainability Accounting

dards Association, an independent verifier, in order to ensure

on Climate-related Financial Disclosures(TCFD) and theStandards Board(SASB). With regards to financial perfor-

mance, it is based on the consolidated financial statements incompliance with the Korean International Financial ReportingStandards (K-IFRS).

The data in this report have been verified by the Korean Stanreliability and fairness of this report. The third-party assurance
statement is available in the section of Appendices (p. 111).

For Inquiries

HMM ESG Team / hmmesg@hmm21.com

Interactive User Guide

2022 HMM ESG Report is published in an Interactive PDF format.
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information below.

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APPENDICESCONTENTSHMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG PERFORMANCEHMM OVERVIEWCEO Message005

ESG Highlights

009

Company Profile

006

SPECIAL ISSUEⅠ: Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts

Expand Eco-friendly Investment and Collaboration

ESG MANAGEMENT
ESG Management Strategy and Governance System

011

Materiality Assessment

014

Stakeholder Engagement

ENVIRONMENT

013

SOCIAL

SPECIAL ISSUE Ⅱ: Safety and Health Management

SPECIAL ISSUE Ⅲ: Reinforce ESG Partnership in the
Supply Chain

GOVERNANCE

SPECIAL ISSUE Ⅴ: Ethical Management

E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

031
035

036
037
042

051

Data Privacy and Information Security

ESG Team

027

Work-Life Balance

Our Impact on Local Communities

information below.

019

044

Customer Satisfaction

site. For more details, please see the contact

018

SPECIAL ISSUE Ⅳ: Human Rights Management
Human Resource Development

For additional information, please visit our web

APPENDICES

Transparent and Sound GovernanceRisk Management
Compliance

047

056
058
061

063
064
068
071
073

ESG KPI & Achievements

075

GRI Content Index

091

ESG Data

TCFD Index

077

095

Analysis of Climate Change-related Risks and Opportunities 096

SASB Index

098

ESG Response to Customers

101

UN SDGs(Sustainable Development Goals) Commitment
ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association Memberships
Greenhouse Gas Verification Statements
Third-party Assurance Statement

100

102
105
109
111

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information below.

ESG Team
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ESG MANAGEMENT

ESG PERFORMANCEAPPENDICESHMM OVERVIEW
005
006
009

CEO Message

Company Profile
ESG Highlights

004

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Company Profile
ESG Highlights

ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Dear esteemed stakeholders,site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

005

APPENDICESCEO Message

HMM OVERVIEW

For additional information, please visit our web

ESG PERFORMANCE

I would like to extend my sincere appreciation to all our stakeholders foryour unwavering support and trust.
Despite disruptions in the global supply chain and economic
slowdown, we are proud to report that we achieved record-high sales
and revenues last year. We also made remarkable progress in almost
all sectors including our corporate credit ratings and ESG ratings. In
particular, we made great strides in terms of ESG management bydisclosing our GHG reduction targets, placing orders for alternative
fuel-propelled ships, and launching an ESG Management Committee
and an ESG Team. These efforts laid the foundation for establishinga well-organized ESG governance structure and conducting humanrights impact assessments.
Looking back at the fierce past, we have clearly recognized that ESG
management should be our core strategy to evolve into a sustainable
company in the face of growing uncertainty.
This year marks the fourth anniversary of publishing our ESG reportsince 2019 when we released the first one. Providing stakeholders witha transparent account of our ESG performance and future plans, thereport is a manifestation of our unyielding will to move towards fullfledged ESG management.

Reinforcing climate action

In full endorsement of the international community’s agreement on
climate action, we have prioritized our response to climate change

and continued to reduce GHG emissions. To this end, we organized
an Alternative Fuel Task Force Team, ordered methanol-fueled ships,
and tightened GHG emission management standards. All these efforts
combined have put us on course for meaningful progress and, as aresult, we won the highest rating (A+) in the Environmental sectionof ESG assessment conducted by the Korea Institute of Corporate
Governance and Sustainability and ranked among top five companies
listed on the KOSPI. These achievements clearly demonstrate that weare recognized for our efforts. In the years to come, we will work at full
capacity to reach carbon neutrality by 2050 through a wide range ofactivities, which will be include analyzing the impact of climate change
on our finance, strengthening carbon emission management in the
supply chain, introducing electric trucks on a trial basis, operating
green terminals, adopting low-carbon fuel-powered vessels, securing
stable supply of fuels, and cooperating in carbon capture technology
development.

Strengthening ESG cooperation throughout the supply chain

In recognition of our long years of endeavors for win-win cooperation,
we were awarded a prize in the category of ‘sustainable win-win
cooperation between shipowners and shippers in ESG management’as the ’best practice of win-win cooperation between shipowners andshippers’ hosted by the Korea Ocean Business Corporation in 2022.
Going forward, we will never relent in collaborating with suppliers
across the entire supply chain ranging from upstream to downstream
so as to achieve a sustainable community. With a focus on suppliers
ESG risk management and their ESG capability enhancement, we
will look into the difficulties of all our suppliers from various angles,
contemplate the ways for shared growth, gear up for an uncertain
future, and shape a sustainable supply chain in coalition with them.

Promoting human rights management

HMM fully endorses the Universal Declaration of Human Rights,
the UN Guiding Principles on Business and Human Rights, andthe Fundamental Principles and Rights at Work declared by theInternational Labour Organization (ILO) and ratified by Korean
government. As part of the effort, we will expand the scope of humanrights impact assessment to evaluate the impact of our operations on
internal and external stakeholders and actively eliminate risk factors.
By doing so, we will enhance people-oriented management stepby step, putting the respect for all stakeholders’ human rights at ourheart. On top of that, all-out efforts will be put to make human rights
management system to permeate every corner of the company so thatdiversity is respected, and prevent any form of discrimination which
will be in compliance with global human rights-related initiatives, suchas the UN Global Compact Principles (UNGC).

Reinforcing occupational safety and health for our
employees and suppliers

Safety and health are essential values that we have persistently
pursued. Prioritizing safety and health, we will go the extra mile todisseminate the culture of safety and health across our business sites,
employees, and suppliers. In detail, we will establish a safety and healthrisk management system that also covers suppliers through which wewill identify key risk factors and come up with mitigation measures.
Additionally, safety and health training will be provided, and prevention
activities will be carried out along with more tightened supervision
to prevent serious accidents in advance. Through all these efforts
combined, we will make our workplace safer and more pleasant so thatthe company and our employees will grow in a sustained manner.

Enhancing ethical management

As we put ethical management at the heart of our management
philosophy, programs for fair transaction and anti-corruption will be
reinforced to ensure that risks are properly evaluated and corrections
are made. By doing so, we will earn more trust from all our stakeholders.
Furthermore, we will train all our employees of the headquarters,
subsidiaries, and overseas offices on ethics and anti-corruption toembed ethical management into every corner of the company.
In a time of transition, we will never relent in challenging ourselves.
Once again, I convey my deep appreciation to stakeholders for yourunwavering support and encouragement. We promise that we will
do our best to play our part with full responsibility in ushering in asustainable future in 2023. I look forward to your continued support on
this journey.
Thank you very much.
CEO of HMM Kyung Bae Kim

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APPENDICES

Company Profile
Overview

HMM provides the highest standards of service with over 100 vessels and logistics facilities, ship-ping routes that connect the world like a spider web, cutting-edge IT systems, and highly skilled
professionals. In March 2020, the name has been changed from Hyundai Merchant Marine Co.,

Ltd. to HMM Co., Ltd., which marked its new departure. On the basis of the network covering theentire world, HMM has maximized the value of its customers’ cargos. Going forward, HMM will

go to great ends to shape a sustainable future through advanced eco-friendly management andactive climate action, fulfilling its roles and responsibilities.

Container Shipping
Service(Financial performance: based on the consolidated financial statements)

Company name

HMM Co., Ltd.

Date ofestablishment

March 25, 1976

Operating income

KRW 9,951.6 billion

HQ location

108, Yeoui-daero, Yeongdeungpo-gu, Seoul, Republic of Korea

Global sales
Total assets

Total equity

Outstanding shares

Bulk Shipping
Service

KRW 18,582.7 billion
KRW 25,973.5 billion
KRW 20,687.9 billion
489,039,496 shares(common shares)

Other
Services

CEO

Kyung Bae Kim

Main Business

Maritime transportation

No. of employees

4,241 *As of December 31, 2022

Credit ratingA- (Korea Ratings, NICE Investors Service, Korea Investors Service)(Financial performance: based on the consolidated financial statements)

Sales

KRW

18,582.7billion

No. of global service
routesSales
KRW

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17,305billionWith vessels traveling between over 100 ports
on more than 60 service routes, HMM ships
goods to customer destinations at the appointed time. HMM’s network of key routes covers
North America, Europe, and Asia, and HMM
has expanded its scope to include emerging
markets including South America, Australia,
and Russia. In an effort to reduce its greenhousegas(GHG) emissions, HMM plans to switch toeco-friendly and high-efficiency container ships.

Sales
KRW

1,094.8billion

Since 1976 when HMM embarked on a tanker
ship business with three Very Large Crude-Oil
Carriers(VLCCs), it has operated a variety of fleets
including crude oil tankers, product tankers,
and LNG carriers. HMM boasts a competitive
fleet formation, efficient operation, and a stableproportion of long-term contracts, and thesestrengths underpin HMM’s optimal profit structure and professionality. In the years to come,
HMM will adjust itself to the fast-evolving external environment, thereby constantly sharpening its sales competitiveness.

Sales
KRW

182.9

Over

billionOperating its own terminals in Tacoma, USA and
Kaosiung, Taiwan, HMM has earned the reputation as an excellent terminal operator with its
state-of-the-art facilities, outstanding operational
efficiency, and seamless safety management.
HMM also plans to acquire additional terminal
stakes to vault into a global terminal operator.

60 routes

Fleet capacity

816,365TEUs*As of March 2023

Bulk cargotransport volume

27.16

million tons
KCGS ESG ratingA

No. of ultra-large container
vessels with a capacity ofover 15K

20 carriers*As of March 2023

Market share in thecontainer terminal service

3.1%

No. of terminals
operated3

terminals
EcoVadis ratingGoldHMM OVERVIEW

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HMM OVERVIEWCEO Message

Company Profile
ESG Highlights

ESG MANAGEMENT

Our Mission, Our Vision

What we envision as our future is a global marine shipping and logistics company providing a full suite of top-quality services. In order to realize our vision, ‘No.1 in customer trust, No.1 in employee
satisfaction, No.1 in green ships, a global leader in creating sustainable value for the world,’ we are striving to evolve into a global leader. To this end, we will lay the foundation for stable profit generation toachieve our mid- to long- term goals, make intensive investments to expand and polish our capabilities required to join the ranks of global top-tier marine shipping companies, and enhance our
ESG management to discharge our duties and responsibilities for the growth of the global community.

ESG PERFORMANCEAPPENDICESVISION

No.1 in customer trust, No.1 in employee satisfaction, No.1 in green ship,

A global leader in creating sustainable value for the world
MISSION

A global SCM partner that provides the most advanced solutions and sustainable transport

across shipping, ports, and logistics, leading to customer success, employee growth, and green growthin all areas of economy, society, and environment

STRATEGIESBusinessstrategies forcontainer and bulk
shipping
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information below.

ESG Team
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Green strategies
in response to
global climatechangeDigital strategies
in response toaccelerating digitaltransformation

Organizational
Strategies toenhance capacity
and improve
competitiveness

Investment
plans and financial
strategies based on
business strategies

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Company Profile
ESG Highlights

Global Network

With an extensive global network under 6 overseas headquarters which include 3 terminals, 24 overseas subsidiaries, 61 branches and offices, 6 joint ventures(JVs), and 56 third-party agencies, we arecommitted to providing the top-notch global maritime shipping and terminal services in the fiercely competitive shipping industry without borders. We are operating our own terminals and engaging inoperation of terminals as a shareholder by acquiring stakes in US Tacoma, Kaohsiung of Taiwan, Long Beach of US California, Algeciras of Spain, Rotterdam of Netherland, and Singapore.

ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

HMM WONDONGSAINT PETERSBURG
SCANDINAVIA

Europe Headquarters

GERMANYUK
BELGIUM

China Headquarters

FRANCE

VLADIVOSTIOK

China
Headquarters

ITALY

NETHERLANDSTTIASouth China
HeadquartersUAE

HUNCHUN INTERNATIONAL LOGISTICS

JAPAN

SOUTH CHINA
HONG KONG

INDIA

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information below.

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Network

Remarks

6 headquarters

Terminals

3 terminals· WUT,

KHT, HPC

Overseas Subsidiaries

24 subsidiaries

HMMA, HASATAIWANKHT(HMM Taiwan)
HPC

PHILPPINESTHAILANDTANCANG HMM
MALAYSIASINGAPORE

Southeast
Asia Headquarters

Overseas
Headquarters

WUT

VIETNAMSouthwest
Asia Headquarters

Category

America
Headquarters

TIANJIN INTERNATIONAL LOGISTICS

SHANDONG KYOUN HMM

AUSTRALIA

Shipping Agencies(included branches and offices)

61 agencies

JVs

6 JVs

· TANCANG HMM

Third-party Agencies· HMM WONDONG· SHANDONG KYOUN HMM· HUNCHUN INTERNATIONAL LOGISTICS· TIANJIN INTERNATIONAL LOGISTICS· INTERNATIONAL SHANGHAI SHPPING AGENCY

56 agencies

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Company Profile
ESG Highlights

ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESENVIRONMENTSOCIAL

GOVERNANCE

GHG intensity reduction rate

Lost Time Injury Frequency(LTIF)

Ethics and Anti-corruption training
completion rate

All fleets

48.1% Container fleets

Rate of securing low-carbon ships

2.2%

Alternative fuel-propelled ships(LNG, methanol-fueled ships, etc.)

Marine pollution accident

Zero

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information below.

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64.4

%

Onshore0.43

Offshore

PSC deficiency ratio

0.8

0.83

cases

Human rights impact assessment
conducted
ESG due diligence on partner
suppliers conducted

96.1

%

Percentage of business sites certified foranti-corruption (Trace)100%

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ESG MANAGEMENT

ESG PERFORMANCEAPPENDICESESG MANAGEMENT
011
013
014

ESG Management Strategy and Governance System
Stakeholders Engagement
Materiality Assessment

010

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APPENDICESESG Management Strategy and Governance System
HMM ESG Management Strategy System

HMM ESG Management Governance Structure

achieve our commitment, we have identified short-term and mid- to long-term strategic tasks forings. The committee is the highest decision-making body that sets and manages our strategic

HMM has defined our mission, vision, and core values to realize ESG Management. To

each of the three ESG areas; environment, social, and governance, to be accomplished by 2025. We

would like to share our commitment and actions towards ESG management with all stakeholders.
We will make every effort to become ‘a leader in the global shipping and logistics industry that creates sustainable future values’ through continuous innovation.
MISSIONA leader in the global shipping and logistics industry thatcreates sustainable future values

We established ESG Management Committee chaired by CEO in 2022 and held half-yearly meet-

direction of ESG management and key policies. The ESG Team, which is dedicated to ESG matters,
provides practical support while other related teams execute the key tasks related to ESG. We plan
to establish ESG Committee under the Board of Directors (BOD) in order to oversee significant ESG
matters at the BOD level.

ESG Management
Organizational Structure

ESG
Management
Committee

VISION

Based on continuous innovation and customized services, we strive to build a healthy market
ecosystem as a leader in the shipping and logistics industry. We pursue sustainable growth in all fields of
economy, society, and environment by communicating with various stakeholders.

Environment

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information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
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SocialSystematic eco-friendly
management and thoroughresponse to
climate change

Creating a sustainablecommunity

Reinforce carbon emissions
management
Increase investment and R&D ingreen ships and fuels
Enhance environmental
management through actions suchas preventing marine pollution

Tighten the safety and healthimpact management
Implement cargo protection and safe
operation of ships
Step up ESG cooperation throughout
all value chain
Promote responsible human rights
management
Nurture talents and advancehuman resource
management system
Establish a fair compensation systemand enhance welfare benefits
Expand social contribution andsocial impact
Fortify personal data protection andinformation security

Governance

Establishing soundcorporate governancebased on risk response
and ethicalcultureStrengthen the expertise of the BOD
Establish a transparent andsound governance
Enhance ethical management〮 Chair: CEO〮 Member: Executives in relation to ESG tasks

ESG Team〮 Support the practical duty of
ESG Management Committee

Relevant Teams〮 Execute the ESG tasks〮 Monitor the tasks

Roles of ESG Management Committee

Setting the strategic direction and establishing and overseeing key policies for
ESG management

Select and manage
key issues and risks
related to ESG

Review of
ESG management
strategies

Select key tasks todrive ESG management
and monitor the
performance

Prior review andapproval of ESG-related
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Performances and Goals of HMM ESG strategic Tasks
Category

Materiality Assessment

ESG PERFORMANCEAPPENDICES

Environment

Tasks

information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Governance

Reduction by 320,000 tons
(compared to BAU in 2022)

Based on Scope 1, 2

50% reduction (all fleets)
70% reduction (container fleets)compared to 2008 (by 2030)

48.1% reduction (all fleets)
64.4% reduction (container fleets)

Based on intensity

Rate of alternative fuel-propelled ships(LNG, methanol-fueled ships, etc.)
reaching 12%

2.2%

Based on the number of container
fleets (owned ships, BBCHP) /orders and charter contracts included

00

Lost Time Injury Frequency(LTIF)

Below 0.6

No. of major ship accidents(Loss cost of KRW 1billion or more)

Offshore: 0.83
Onshore: 0.43
Total: 0.77

00

PSC deficiency ratio

Maintaining below 1

0.8 cases

Rate of suppliers conducted
ESG assessment

Above 80%

72.3%

Above 60%

40.7%

Above 40%

33.3%

0

0

Above 95%

96.1%

100%

100%

Rate of securing low-carbon ships

Strengthening ESG cooperation
throughout the supply chain

Fortify personal data protection andinformation security

site. For more details, please see the contact

21.5% reduction compared to
BAU in 2030

Expand investment and
R&D in green ships and fuels

Promote responsible human rights
management

For additional information, please visit our web

Remarks

GHG reduction rate

Implement cargo protection andsafe operation of ships

Enhance ethical management

Mid- to long-term goals (by 2025)

Performances in 2022

Reinforce
GHG emissions
management

Reinforce the safety andhealth impact management

Social

KPIs

No. of serious accidents(fatalities)

Rate of suppliers conducted
due diligence

Coverage expansion of human rights
impact assessment
No. of confirmed data security
accidents

Ethics and anti-corruption training
completion ratio
Rate of business sites conductedethics and anti-corruption risk
assessment*by 2030 if necessary

Based on the purchasing amount ofmajor partners
Based on the purchasing amount ofmajor partners

Based on Trace certification

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HMM defines employees, local communities, customers, partners, shareholders and investors, and government and relevant organizations as key stakeholders. To actively communicate with these stakeholders, we are operating various communication channels. We are also striving to form a consensus on issues related to ESG management and build cooperative relationships through public disclosures,

meetings, and surveys. To ensure that communication opportunities are not limited during circumstances like the Covid-19, we have increased non-face-to-face communication channels such as video conferences.

Key Stakeholders
Employees

Customers

information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

013

APPENDICES

Stakeholder Identification and Communication

Partnerssite. For more details, please see the contact

ESG PERFORMANCE

Stakeholder Engagement

Local
communities

For additional information, please visit our web

ESG MANAGEMENT

Communication Channels〮 Labor union,
Labor-Management Council〮 Employee satisfaction
survey〮 Grievance Committee〮 Corporate Culture Change
Agent TF

〮 Internal communication
channel〮 Reporting system〮 Participation in local events〮 SNS(blog, Instagram, etc.)〮 Evaluation and due diligence on the ESG management status ofpartners〮 E-mail, call, face-to-face meeting(F2F meeting),
and video conference〮 Customer satisfaction survey

Governmentand relevantorganizations〮 Meeting〮 Investor relations (IR)〮 Commemorative event〮 Face-to-face meeting〮 Employee satisfaction survey (at least once a year)〮 Plogging campaign (once a year)〮 Support for children in and outside Korea〮 Funds for the restoration of areas affected byforest fires on the East Coast〮 Tree planting volunteer activities〮 <HMM X Beautiful Store>, a goods donation
campaign〮 Social contribution agreement signingceremony with ‘Good Neighbors’〮 Mural painting volunteer activities joined by
new employees〮 Ethics Hot Line through E-Procurement System〮 Shareholders' meeting〮 Labor-management council meeting (quarterly)〮 Waste PET resource circulation project atIncheon Port〮 NGOs, local organizations

Shareholders
and investors

Communication Activities〮 Disclosures〮 Investor meeting〮 Participation in the support for domestic girls
in the low-income family〮 Deposit sponsorship for Cheonghae Unit

〮 Transportation of international relief goods〮 Reports from partner suppliers through the Ethics Hot Line (at any time)〮 Inspection on partner suppliers through ESG management evaluation and due diligence (once a year)〮 Contract discussions, Follow-up of customers’ requests for cargo operation (at any time)〮 Q&A bulletin board on the website (supporting both customers and shareholders) (at all times)〮 Customer satisfaction surveys (at all times)〮 Shareholders' meeting (once a year)〮 Disclosures (regularly / at any time)〮 Q&A bulletin board on the website ( supporting both customers
and shareholders)〮 Corporate briefings (quarterly)〮 Investor meetings (at any time)〮 For domestic and foreign shareholders and potential investors(at any time)〮 Joint implementation of win-win cooperation programs with domestic small and medium-sized shippers (regularly / non-regularly)

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APPENDICES

Materiality Assessment
Double Materiality Assessment

HMM conducts a materiality assessment every year to identify and manage ESG(Environmental, Social, and Governance) issues that may impact the company’s businesses and stakeholders and to share this information transparently. In 2022, HMM conducted the assessment incorporated the idea of double materiality, which takes into account both the impact of a company’s business activities on society as a whole (‘in-side-out’ approach) and the impact of external environmental and social factors on the company’s financial condition (‘outside-in’ approach). Based on the assessment results, together with a thorough analysis of theenvironment in and outside of the company, such as internal and external stakeholders’ requirements, domestic and international ESG regulations, policies and initiatives, HMM selected material issues that should beprioritized for our ESG management.

Process of Identifying Material Issues
Formulation of
the Issue Pool

Analysis of theIssue Pool

Material Issues Derived from the Assessment

Formulate the Issue Pool with 19 Issues

After conducting a thorough analysis of maritime shipping and transportation issues identified by
ESG evaluation and disclosure agencies, reviewing material issues of the companies in the identical industry both domestically and internationally, analyzing media coverages, and assessing ourmanagement strategies and tasks, we have identified 19 issues and formed the issue pool.

We conducted the materiality assessment in consideration ofsocial·environmental and financial impacts of the 19 issues.

HMM’s Material Issues in 2022
Reinforcing climate action〮 Analysis of domestic and foreign ESG indicators〮 Analysis of domestic and foreign ESG indicators〮 Analysis of 559 valid articles exposed to themedia in 2022 through media research〮 Analysis of internal and external stakeholders’ survey responses〮 Benchmarking of the companies in theidentical industry〮 Analysis of internal and external stakeholders’ survey responses

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Selection of theMaterial Issues〮 Analysis of the latest global regulations
and ESG policy trends

Through the double materiality assessment that comprehensively considered the 'environmental·social impact' and 'financial impact' of the 19 issues, we finally identified five material issues that are required to be addressed with priority for our ESG management. We havefinalized the list after completing the validity and feasibility verification of the material issues
identified through the internal reviews.

Environmental/ Social Impact

Financial Impact

Promoting safety and health of employees and suppliers
Promoting human rights management
Enhancing ethical management

Reducing environmental impacts

Analysis of the financial
significances

Financial Impact

Strengthening ESG cooperation throughout the supply chain

HMM’s Other Issues in 2022
Analysis of the social·environmental
significances

Environmental/ Social Impact

Increasing investment and R&D in green ships and fuels
Advancing the environmental management system

Advancing the employee compensation and management system
Improving organizational culture and enhancing welfare benefits
Implementing cargo protection and safe operation of ships

Making industry-based social contribution to communities

Promoting customer safety and health and safeguarding human rights
Strengthening personal data protection and information security
Establishing a transparent and sound governance
Enhancing compliance

Advancing risk management system

Creating and distributing economic values

Reinforcing global market competitiveness(Tier 1): Top 5 issues in impact scores(Tier 2): Middle 7 issues in impact scores(Tier 3): Bottom 7 issues in impact scores

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ESG Management Strategy andGovernance System
Stakeholder Engagement

Management Measures for 2022 Five Material Issues
Management Aligned with ESG Initiatives

We have developed management measures for each of the five material issues based on their impacts in conjunction with global disclosure frameworks and initiatives.

Materiality Assessment

ESG PERFORMANCE

Material issues

APPENDICES
Reinforcing climate action

Promoting safety and health of
employees and suppliers

Strengthening ESG cooperation
throughout the supply chain

Promoting human rights
management

Scope of impact on key stakeholders
Employees

Shareholders/ investors

Customers

Partnercompanies

Local
Government
communities / regulations

Global disclosure frameworks and initiatives
GRI
GRI 201-2: Financial implications
caused by climate change
GRI 302: Energy

GRI 305: Emissions
GRI 403: Occupational health andsafetySASBSASB TR-MT-110a.1-4

TCFD

UN SDGs
Goal 7
Goal 13SASB TR-MT-320a.1,
SASB TR-MT-540a.1-3

GRI 308-2: Negative environmental
impacts in the supply chain

Goal 12

GRI 414-2: Negative social impacts inthe supply chain
GRI 405: Diversity and equal
opportunity

GRI 406: Non-discrimination

Goal 5
Goal 16

GRI 407: Freedom of association andcollective bargaining
GRI 408: Child labor

GRI 409: Forced or compulsory labor
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information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Enhancing ethical management

GRI 205: Anti-corruption

GRI 206: Anti-competitive behavior

SASB TR-MT-510a.1-2

Goal 16

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ESG Management Strategy andGovernance System
Stakeholder Engagement
Materiality Assessment

ESG PERFORMANCEAPPENDICES

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Activities and Performance for Material Issue Management

We also identify and analyze risk and opportunity factors of the five material issues in an objective manner through active communication with stakeholders, such as gathering their opinions. Based on this, wehave specified management goals for the five material issues and systematically managed them in conjunction with KPIs.
Material issues

Management measures of risks and opportunities

Reinforcing
climate action

Governments of major countries around the world, including Korea, have set a national goal of achieving carbon neutrality
by 2050 to overcome the global climate crisis. Accordingly, the role of companies in responding to climate change has been
all the more emphasized. HMM is taking climate action by establishing mid- to long-term goals and roadmaps against the climate crisis in response to the rising demand and interest in eco-friendly shipping from stakeholders. We are also actively participating in the global effort to combat climate change by securing eco-friendly ships and considering the establishment ofgreen services. Besides, we strive to address the climate crisis and execute ESG management practices by analyzing climate
risk and opportunity factors and reflecting them in our business strategies.

Promoting safety
and health of
employees andsuppliers

Safety and health of our employees are our top priorities in all business activities because a safe and pleasant workplace not only protects employees from accidents but also enhances work efficiency. To create a safe workplace, we established ‘Safety & Health Management Team’ and are reinforcing responsible management practices concerning safety and health by organizing management
system and enacting related management policies. In addition, through communication channels such as the Occupational Healthand Safety Commission, we are creating a safety culture that is active and friendly in which stakeholders, including customers andpartner companies, can participate. Also conducting workplace safety inspections regularly, we report major safety and health issues
identified to the management, establish improvement plans, and implement management activities.

Strengthening ESG
cooperation
throughout the
supply chain

We seek to build a sustainable supply chain through healthy partnerships with our partner companies. Accordingly, we haveestablished and implemented purchasing policies that include human rights and labor rights, safety and health, environmental protection, and ethical management. To avoid ESG risks in our supply chain, we require our suppliers to commit to
the Suppliers Code of Conduct. In addition, we are striving to raise awareness of ESG management and strengthen ESG capabilities throughout the entire supply chain by conducting ESG evaluation and due diligence on our partner companies.

Promoting humanrights management

We prioritize human rights awareness for all employees and stakeholders, as we understand that people are our greatest
asset and that the happiness of employees is crucial to creating sustainable value for the company. We uphold the fundamental principles of human rights, such as those outlined in the Universal Declaration of Human Rights and the UN Guiding
Principles on Business and Human Rights. We ensure that all employees and stakeholders are treated respectfully by specifying their rights in the HMM Human Rights Policy and Code of Ethics. Furthermore, we are dedicated to enhancing our humanrights management by conducting human rights impact assessments regularly, providing improvement guidelines to address any adverse incidents and implementing measures to reduce risks.

Enhancing ethicalmanagement

Establishing a transparent and ethical corporate culture is essential to create sustainable value as a trustworthy company.
Every year, we establish a roadmap for ethical management to ensure that our employees are committed to ethical practices
and report it to Ethical Management Committee for review and resolution. By conducting regular programs with respect toethics and anti-corruption for our employees, we also ensure that they comply with work ethics and carry out their duties
responsibly. We also conduct an ethical management awareness survey once a year so as to internalize ethical management
within our organization.

KPIs

GHG reduction rate

Performances in
2022
Reduction by
320,000 tons
(compared to
BAU in 2022)

Mid- to long-term goals
21.5% reduction
compared to BAU in 2030

48.1% reduction(all fleets),
64.4% reduction(container fleets)

Based on intensity,
50% reduction (all fleets),
70% reduction (container fleets)compared to 2008 (by 2030)

No. of serious accidents(fatalities)

00

Lost Time Injury
Frequency (LTIF)

Offshore: 0.83
Onshore: 0.43
Total: 0.77

Below 0.6

Rate of suppliers undergoing
ESG assessment

72.3%

Above 80%

Rate of suppliers undergoingsupply chain due diligence

40.7%

Above 60%

Extension the coverageof human rights
impact assessment

33.3%

Above 40%

Ethics and anti-corruption
training completion rate

96.1%

Above 95%

100%

100%

Rate of business sites
undergoing ethics andanti-corruption risk assessment

Reportingpages

19-26, 78

37-41, 81

42-43, 82

44-46, 83

64-67, 89

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ESG PERFORMANCEAPPENDICESESG PERFORMANCE
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information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

018

Environment

036

Social063

Governance017

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Environment

ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialGovernance

APPENDICES

Issue Importance

Responding in respect to issues of global warming and further evolving into an eco-friendly, low-carbon company has
become essential in the global arena. In accordance with the Paris Climate Agreement, the international community
requires all parties to present their GHG reduction targets and verify their implementations. It has also tightened theregulations to guarantee minimization of maritime transport's environmental impact.

HMM Approach

We have actively joined the effort to combat climate change and come up with countermeasures, minimizing the impactof our onshore and offshore transportation on the environment and climate so that we can display our full responsibility
for the environment. Under the goal of accomplishing carbon neutrality by 2050, we have set up our Green House
Gas Management System along with the establishment of an environmental management system that has guided us toaddress climate change, respond to relevant regulations, and step up our environmental accountability.

GHG intensity reduction rate of fleets(All fleets)

48.1(Container fleets)%

Amount of Spills/discharges

Zero

Rate of AMP consumption in the US West Coast
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information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com(Oakland)

94.3

Rate of securing low-carbon ships(Los Angeles/Long Beach)

%

64.4
2.2

%

%

019

90.9

027
%

031
035

SPECIAL ISSUE Ⅰ: Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts

Expand Eco-friendly Investment and Collaboration

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Environment> Special Issue I:

Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

ESG MANAGEMENT

ESG PERFORMANCE

SPECIAL ISSUE : :Ⅰ

Our Action on Climate Change
Net Zero Roadmap
Setting a Net Zero Roadmap

We fully endorse the international agreements regarding climate action. With the aim to transition to a low-carbon society, we declared 2050 Carbon Neutral and have established a roadmap to reducegreenhouse gases. In particular, we set a GHG reduction target that is stricter than the one established by the International Maritime Organization (IMO) in 2021 since it doesn’t meet EU targets or global levels.
Accordingly, we established action plans to accomplish this target.
Set up our target for
Net Zero

Methanol DF ships to be
operated on routes

2021

Reach Net Zero· 9 methanol DF ships with a capacityof 9,000 TEUs to be delivered

SocialGovernance

APPENDICES

019

APPENDICES

2024

2026

LNG DF ships to bedelivered·Two LNG DF ships with a capacity of 7,700 TEUs to be delivered(long-term charter ships)

2030
Achieve the 2030 midto long-term goals· 21.5% reduction compared to BAU* in 2030

: 2030 BAU 7,550,000tCO2e ⇨ 5,930,000tCO2e (Scope 1+2)
*BAU: Business As Usual· CO2 intensity emissions reduce by 50% (all fleets) and
70% (container fleets) compared to the levels of 2008

“We mitigated GHG intensity emissions by 64.4% in 2022
compared to 2008 in case of container fleets. We have

“We are considering joining the K-EV 100,

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information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Joining 2030 K-EV
100 under
consideration

a Korean transition project towards eco-friendly

vehicles 100% by 2030, in order to reduce carbon
emissions from vehicles.”

2050

Transitioning to
low-carbon andzero-carbon vessels
by 2030

already decided to introduce two LNG-fueled ships and ninemethanol-fueled ships, and will continue to adopt

low-carbon/zero-carbon ships to increase the proportion ofalternative fuel-propelled vessels by 12%(based on container fleets) in 2025.”

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SPECIAL ISSUE : :Ⅰ

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment> Special Issue I:

Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance2030 Strategies for Net Zero
Establishment of Mid- to Long-term Strategies for Net Zero by 2030

With the purpose of attaining our target of carbon neutrality, we have established the mid- to long-term
strategies for Net Zero by 2030 along with the detailed measures to reduce GHG emissions. In accordance

HMM Net Zero Plan

reduction compared to
21.5% BAU
in 2030 (Scope 1+2)

with the Paris Agreement, the global community is striving to limit the global warming below 1.5℃. In linewith the trend, we have established the following strategies: Green Energy, Green Design, Green Operation

and Green Tech. Based on these strategies, we will curtail not only our direct emissions from vessels but
also ones emitted within our supply chain in an active manner.
HMM Decarbonization Fuel Strategy

APPENDICES

LNG

Biofuel(Second and third
generation)

2030 BAU

7,550,000 tCO2e

MethanolAmmonia

2050
Net Zero

2030 GOAL

5,930,000 tCO2e

2021

2030

2050

Mid- to Long-term Strategies for Net Zero by 2030

We reviewed our reduction targets by identifying the Science Based Targets initiative (SBTi)* recommend-

ed goals and GHG reduction trend in the identical shipping industry, followed by the analysis of the eco-nomic feasibility and efficiency of our plan for GHG reduction. Based on the results, HMM’s Net Zero plan isestablished.

Green
EnergyGreen
Design-15.8 %

- 3.4 %

Transition to low-carbon /zero-carbon ships

Introduction of vessels thatmeet CII regulations

Green
Operation

Green
Tech

- 2.0 %

- 0.3 %

Operating ships at slower
and constant speed

Applying Energy Saving
Device (ESD)*SBTi: It sets a science-based target to limit global warming well below 2℃ and raises the bar to 1.5℃

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information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com(1,190,000 tCO2e)(260,000 tCO2e)(150,000 tCO2e)(19,000 tCO2e)HMM OVERVIEWWE CARRY
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SPECIAL ISSUE : :Ⅰ

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment> Special Issue I:

Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

Our Actions for Net ZeroHMM is gradually reducing its Scope 1 emissions from ships.

Transition to low-carbon/zero-carbon ships

SocialGovernance

APPENDICESGreen
DesignGreen
Operation

We mitigated GHG intensity emissions by 64.4% in 2022 compared to 2008 incase of container fleets. We have already decided to introduce two LNG-fueled
ships and nine methanol-fueled ships, and will continue to adopt low-carbon/
zero-carbon ships to increase the proportion of alternative fuel-propelled
vessels by 12% (based on container fleets) in 2025.

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Scope 2 Solution

Considering
the joining of
K-EV100

We are considering the joining of K-EV 100, a Korean transition project towards
eco-friendly vehicles 100% by 2030. Through this, we will review replacing ourcorporate cars with electric vehicles (EVs) and mitigate emissions from mobile
combustion.

Laying thefoundation
for RE100

We are reviewing the joining of a global campaign that encourages companies
to transit to renewable energy sources 100% for power consumption by 2050
and setting the foundation for this transition. Our office building in Yeouido isequipped with solar panels, and it generated 19,016kW in total in 2022, which
was used for lighting the building. We will actively expand the use of renewableenergy and its proportion.

Improvingenergy efficiency

Various efforts are also being made to reduce GHGs by enhancing energy
efficiency in the terminals we operate. These include the replacement of tower
lights with LED ones within the yards of TTIA, WUT and HPNT. At HPNT, we also
converted trucks running on the yard to use LNG instead of diesel to raise theirpower efficiency. The wind turbines installation at RWG and solar panels installation at TTIA are now under consideration. Likewise, we are committed to
improving the efficiency by generating electricity on our own.

Introduction of vessels that meet CII regulations

We comply with the Carbon Intensity Indicator (CII) regulations recommended
by IMO, and thus, we plan to replace our ships or recharter the ships with superior performance that meet the CII regulations. In addition, we will convert ships
for green fuel transition.

Operating ships at slower and constant speed

We monitor the speed of ships and reduce GHG emissions by running the ships
at slower and constant speed. We also developed a Carbon Intensity Indicator(CII) Simulation and Monitoring tool which enable us to figure out the optimum
speeds to meet the IMO requirements.

Applying Energy Saving Device (ESD)
Green
Tech

doing so, we are reducing our total GHGs, sincerely discharging our environmental responsibilities. The
following is our strategies for the mitigation of Scope 2 emissions.

Scope 1 Solution

Green
EnergyOur all-out efforts are also being made to curtail emissions from other sources outside of the ships. By

We are considering the application of ESD, an eco-friendly and high-efficiency
technology, into our vessels. Considering the economic feasibility of ESD
technologies, we will selectively use the technologies for engines andequipment in ships. We are looking forward to cutting down on GHGs throughimproving the energy efficiency of our ships.

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SPECIAL ISSUE : :Ⅰ

2022 HMM ESG Report

HMM OVERVIEW
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ESG PERFORMANCE
Environment> Special Issue I:

Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Our Efforts for Net Zero at HMM Terminals
RWG (Rotterdam World Gateway)

HPNT(HMM PSA New-port Terminal)

˙Diesel equipment (reach stackers, cars, terminal trucks) tobe replaced with battery equipment (to be completed in
2024/2025)
˙Onshore power supply to be installed upon the development of Phase 1.5
˙Wind turbines to be installed for self-power generation(under review)

˙Lightings replaced with LED ones (yard tower)
˙Onshore Power Supply installed
˙Yard trucks converted to use LNG fuels instead of diesel

˙Lightings replaced with LED ones (yard tower)

˙Lightings replaced with LED ones
˙Solar panels to be installed*

WUT(Washington United Terminals)

We reduce GHGs emissions from our headquarters as well as our manufacturing
process of purchased ships, containers, and existing parts. We are also
contemplating the ways of expanding the purchase, repair and maintenance ofthe products that emit less CO2.

Reducing
emissionsfrom business trips

We minimize the frequency of face-to-face meetings in an effort to curtail GHG
emissions generated during our business trips, such as emissions from
airplanes, railways and hotels.

TTIA (Total Terminal International Algeciras)*Solar panels installation in substations, buildings / areas for repair, and parking areas has resulted in a reduction of 100,000€ inelectricity bills per year and the mitigation of greenhouse gas emissions.

The following is our strategies for the mitigation of Scope 3 emissions.
Scope 3 Solution

Reducing
emissions frompurchased
products &services

Reducing
emissionsfrom capitalgoods

We will purchase products that emit less CO 2 during the manufacturing
process and expand the use of recyclable goods so as to mitigate GHG emissions
from the use of shipping and office suppliers. As part of the effort, we are using
eco-friendly materials (FSC-certified paper and eco-friendly soy bean oil) for the
production of 2023 calendars and daily planners, and providing tumblers to all
our employees so that they practice ESG management in their daily lives.

HMM will launch transportation service business on the basis of Electric Truck

HMM is planning to launch electric truck transportation business in the United States of America. To thisend, we have established MOU with the local company. We are planning to order electric trucks withinfirst half of 2023, and these are expected to be delivered to buckle down to the business between thesecond half of 2023 and the first quarter of 2024. Through the introduction of electric trucks, we plan

to make continuous efforts to build an eco-friendly inland transportation network and contribute to
reducing carbon emissions.

SUTAINABLE
FOCUS AREA

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information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
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Reducing
emissionsfrom waste
disposed byagencies

We preferentially select the waste management agencies which consider
recycling as their first option when disposing of waste generated from ships andheadquarters. Furthermore, we will expand the use of recyclable products.

: ENVIRONMENTAL

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ESG PERFORMANCE
Environment> Special Issue I:

Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICESNet Zero Roadmap Achievements
Scope 1 and 2 emissions

As a result of the implementation of HMM’s Net Zero Roadmap, HMM
generated 5,347,776 tCO2e in Scope 1 and 33,327 tCO2e in Scope 2 in
2022. HMM is transparently disclosing emissions as follows.
Scope 1 Emissions
Category

Mobilecombustion

Stationary
combustion

Ships, Vehicles, Terminals(gasoline)

Terminals (diesel andgasoline), Boilers / Cooking
facilities (LNG)

Scope 2 Emissions
Category

Purchased
power

Item

5,347,776 tCO2e

Proportion(%)

Emissions (tCO2e)100%

5,347,641

0.0%

135

Scope 3 emissions

HMM calculated Scope 3 emissions by setting categories andcalculation boundaries in consideration of the relation to andimportance of our businesses. Scope 3 emissions was verified by athird-party organization to increase objectivity and accuracy.

Scope 3 Emissions
Category
Upstream

Category 3. Fuel- and Energy-Related
Activities

Downstream

Category 13. Leased Assets

33,327 tCO2e
Item

Facilities (office buildings and terminals),
Terminal equipment

Proportion (%)

Emissions (tCO2e)100%33,327

Item

Emissions (tCO2e)

Category 4. Transportation and Distribution

729,053
643,197
148,508

For more details about Category 4, see GHG Assurance Statement on page 110

Roadmap for Advancement of Scope 3 Emissions Calculation

We plan to advance the calculation of Scope 3 emissions by defining the organizational scope under our financial control so that we can comply with
global guidelines on sustainability. Based on the analysis conducted last year of key emission sources that fell under the various Scope 3 categories,
we calculated and verified the emissions of key categories based on relevance this year. Furthermore, we plan to carry out a computerization projectthat enables us to collect data consistently regarding all our operations within the organizational boundary and to monitor them. Through this, wewill establish a GHG inventory system that covers Scope 1, 2, and 3, and accelerate our efforts to manage and reduce GHG emissions.
HMM Named as the Most Excellent Container Line with the Lowest Emissions on the East Asia - U.S. West Coast Route (2022 4Q)
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information below.

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Stage 1 (2022)
Identification of the scale of emissions for all
Scope 3 categories (initial screening)
Identification of major emission sources for Scope 3
based on headquarters

Calculation and verification of the emissions frommajor Scope 3 categories based on relevance
Based on the analysis of major emission sources based on theheadquarters, selection of major Scope 3 categories at thecompany-wide level and measurement of Scope 3 emissions
based on approximate data

In order to achieve Net Zero, HMM has set up the Scope 1 and 2
emissions reduction targets and its progress is reported every year.
On top of that, HMM has expanded the scope of its management toinclude Scope 3 along with the establishment of an integrated target
to be aligned with the global campaign driven by the international
community. Through all these efforts combined, HMM will fulfill its
responsibility as aworldwide shipping company.
GHG
Reduction Rate

Mid- to Long-term Targets (by 2030)
21.5% reduction compared
to BAU in 2030

50% reduction (all fleets)
70% reduction (container fleets)compared to 2008 intensity
emissions

For more details, see Scope 1 and 2 GHG Assurance Statement on page 109

Stage 2 (2023)

Our Progress against the GHG Reduction Targets

Stage 3 (2024)

Introduction of computerization for the calculation and management of company-wide
Scope 3 emissions
Introduction of a computerization system for calculating andmanaging Scope 3 emissions at the company-wide level,
including all subsidiaries in the consolidated
financial statements such as overseas offices(reinforcing bottom-up data)

Reduced bytons(compared to BAU in 2022)

320,000

48.1% (all fleets)
64.4% (container fleets)

Reduced byRate of Securing
Low-carbon
Ships

Mid- to Long-term Targets (by 2025)

Rate of alternative fuelpropelled ships(LNG, methanol-fueled ships, etc.)
reaching 12%2022 Performance

2022 Performance

2.2%

HMM Named as the Most Excellent Container Line with the Lowest
Emissions on the East Asia - U.S. West Coast Route (2022 4Q)

HMM was selected by Xeneta, an ocean and air freight rate analytics platformof Norway, as the most excellent green shipping company with the lowest carbon emissions among the container lines operating on the East Asia - U.S. West
Coast lane, based on Xeneta’s Carbon Emissions Index (CEI). HMM scored 70.2
points on the route, which is 27% lower than the average (96.2 points) of other15 shipping companies earned.

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2022 HMM ESG Report

HMM OVERVIEW
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Environment> Special Issue I:

Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Climate Change Response System

Analysis of Climate Change-related Risks and Opportunities

Organizing the HMM TFT for Climate Action

by climate change, conduct materiality assessments to figure out key risks and opportunities related toInvestment Officer and division heads related to ship investment. The TFT convenes meetings more thanIn accordance with the TCFD recommendations, we identify potential risks and opportunities posedinternal and external stakeholders, come up with countermeasures based on the impact they have on ouroperations, and report before and after taking measures to deal with the issues. This is our risk management system established in an organized manner, and based on this, we are expanding the scope of therisk management.

Going forward, we will acknowledge climate change-related risks as one of our material risks and integratethem into company-wide risk management system. In addition, we will advance the method of quantita-

tive impact assessment and refine our countermeasures based on the climate change scenarios that suitcontinue to actively promote decarbonization, such as conversion of ship fuels.

Relevant Teams

KPIs

Chief Maritime Office and R&D Team

Enhancing the efficiency of ship GHG intensity

Chief Bulk Business Office, Bulk Planning & Development Team,
Tanker Team, and Bulk Operation Team

Strengthening responses to environmental regulations

Container Planning Division and Fleet Management Team

Investments in Climate Action

E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

the management via the Future Strategy Committee on a monthly basis.
Structure of HMM Alternative Fuel Task Force TeamTFT Head

Chief Operating Officer

Investment Items(Financial performance: based on the consolidated financial statements)

Investment in new facilities (two LNG-fueled ships chartered)

Investment in equipment required for climate change response
within the existing ships
Total

Formulating measures to reach Net ZeroUnit

KRW million
KRW million
KRW million

Investments in 2022
524,940
5,777
530,717

Assistant Administrator

Head of Container Planning Division

Director Groupthe relevant teams.

ESG Team

reviewing the fuels to be used for converted ships or new additions. The meeting results are reported toan opportunity which can strengthen our competitiveness in the mid- to long-term. Therefore, HMM will

HMM sets annual goals and strives to achieve them by linking tasks to combat climate change with KPIs of

information below.

presentations for professionals regarding shipyards, ship classification, and engine makers while

strategy to respond to the risks on a more efficient manner. HMM believes that the climate change issue isManagement of KPIs Associated with Climate Action

site. For more details, please see the contact

twice a month to investigate the trend of GHG regulations and relevant technologies and to provide

our situation, thereby grasping the broader range of impact that climate change will have on our businessSee page 96~97 for more details

For additional information, please visit our web

Since April 2022, HMM has managed Alternative Fuels Task Force team (TFT), which is comprised of Chief

Working Level

Chief Maritime
OfficeR&D Team

Chief Container
Business Office
Fleet Management
Team

Liner Operation
Management Team

Chief Bulk Business
OfficeBulk Planning& Development Team

Chief Strategy and
Finance Office
Strategy Planning
Team

Investment Planning
Team
Purchasing TeamHMM OVERVIEWWE CARRY
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ESG MANAGEMENT

ESG PERFORMANCE

025

APPENDICES

SPECIAL ISSUE : :Ⅰ

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment> Special Issue I:

Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Monitoring GHG Emissions Reductions

Compliance with the IMO GHG Emissions Reduction Roadmap

Energy Efficiency Design Index (EEDI)

time Organization (IMO), we will tighten our management for the energy efficiency of operating ships andfuel efficiency of automobiles. It is applied to the ships that were built from 2013. HMM has also developed

In accordance with the GHG emissions reduction roadmap for ships adopted by the International Mari-switch to eco-friendly fuels. Additionally, we will increase the energy efficiency of new ships and actively

respond to the regulations on GHG emissions in the shipping industry through the carbon emissions trading system.

GHG emissions in real time. We ensure the objectivity of emissions data and calculations by conducting a

index and effectively analyzes vessels’ energy efficiency. HMM is also actively reviewing and applying thethird-party verification every year.

(1) GHG Inventory System

HMM has built and operated a GHG Inventory System to manage GHG emission sources by equipment,

process, and business site in a systematic manner. This system enables us to identify and manage directthat its calculation conforms to international standards including ISO 14064-1 and WRI GHG Protocol.

(2) Supply Chain Carbon Calculator

HMM independently develops, operates, and manages a system called Supply Chain Carbon Calculator
that automatically calculates GHGs emitted from the point of departure to the destination of cargo. The

calculation also covers GHGs emitted from inland transportation, including ships, trucks, and railways. We
designed this system to provide Carbon Footprint data requested by shippers, and the data is available on
the website. Despite this system was inspired by the methodology presented in Clean Cargo*, but HMM’s
proper coefficient was added to make it more accurate and reliable when calculating the emissions.

* Clean Cargo: It refers to a partnership that involves major brands, shippers, cargo carriers, and freight forwarders dedicated toreducing their environmental impact of the global shipping and enhancing the sustainability of the shipping industry.

information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com* EEDI (Energy Efficiency Design Index): It refers to a measure of the CO2 emissions per unit cargo volume (1 ton) and nautical mile insome designs as of January 1, 2013

CII and EEXI Compliance

We have in place the Green House Gas Management System which enables us to monitor and analyze ourfrom general power consumption. The system has been verified by the Korean Register of Shipping (KR)site. For more details, please see the contact

its own system that can calculate the EEDI* of the pre-existing ships to improve the energy efficiency.

Green House Gas Management System

GHGs emitted from fuels used for ships, terminals and office buildings as well as indirect GHG emissions

For additional information, please visit our web

HMM operates a system that calculates a vessel’s energy efficiency index, which is a similar concept to the

HMM manages vessel operational efficiency through our own EEOI (Energy Efficiency Operational Indicator)

use of optimal operation (including deceleration, constant speed), ESD* and alternative fuels in order tocomply with CII (AER)*. Furthermore, HMM is considering the installation of EPL* and ESD to comply withEEXI* while developing an IT tool for CII simulation through which HMM can simulate each ship, check if itmeets the requirements, and come up with measures according to the results.

* CII (Carbon Intensity Indicator): It refers to a measure of CO2 emitted per unit cargo volume (1 ton) and nautical mile based on therecords of transportation over the past one year and fuel consumption* ESD (Energy Saving Device): It means a device designed to mitigate energy consumption on board* EEXI (Energy Efficiency Existing Ship Index): It refers to a measure of the CO2 emissions per unit cargo volume (1 ton) and nauticalmile based on engine output as of January 1, 2023
* EPL (Engine Power Limitation): It refers to a device that limits engine power

Ship* Energy Efficiency**
Category

Fuel oil consumption per year

Unit

g/DWT*km

2020

2021

2022

0.842

0.843

0.840

* Based on HMM owned ships, Bare Boat Charter Hire Purchase (BBCHP), and Bare Boat Charter (BBC)**	The figures from 2020 through 2021 were adjusted under the same criteria due to the changes in the calculation standards forenvironmental performance

HMM OVERVIEWWE CARRY
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026

APPENDICES

SPECIAL ISSUE : :Ⅰ

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment> Special Issue I:

Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Efforts to improve Energy Efficiency
Measures to Reduce Water Resistance

Route Optimization

called Ship Energy Efficiency Management Plan(SEEMP) and applied it to the body of ships to reduce theshipping sector with cutting-edge IT technologies that include Artificial Intelligence(AI), big data, cloudAs frictional resistance takes up the largest portion of the whole friction, we have developed a method

friction. We also use various technologies to reduce hull resistance, such as using silicon paint, cleaning

the ship bottom, and cleaning the propeller. These methods help prevent organisms like barnacles,
seaweed, and microorganisms from attaching to the hull and increasing its resistance, thereby enabling
us to achieve better energy efficiency. Additionally, we are minimizing hull resistance through the
optimization of the ship trim. To this end, we hold regular discussions regarding our ships as well as charterederational aspects such as speed of operation, drainage, and weather based on the Ship Energy Efficiency

Management Plan(SEEMP) and by minimizing ballast water. We also reduce the operation time of the ballast water pump as much as possible while docking at a port. This way, we aim to lower the fuel consump-which make it possible for HMM to minimize fuel usage and optimize economic speeds. HMM also utilizes

the Energy Consumption Optimization System (ECOS) and Total Fleet Management System (TFMS) for the
optimal ship operation.

Ship Loading Optimization

With the purpose of securing the loading safety and efficiency at ports, we have introduced and let vessel

planners utilize the latest cargo loading program, called “Hi-stow” SW. This program enables the efficientcargo loading, which in turn leads to more space and reduce the loading times. Accordingly, we can meet

E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

erating costs.

we can to substitute Scope 2 by Scope 1. In particular, in 2022, voluntary endeavors were made to use AMP

In addition to trim optimization, ship operators can minimize hull resistance by considering various op-

makes voyage plans in consideration of key information such as weather conditions, lanes, and schedules,

ESG Team

optimal trim and route, enabling us to make optimized decisions that reduce power consumption and op-

Ballast Water Management

HMM improves the ship efficiency and optimizes the speed of ships through applying the SEEMP. HMM

information below.

analyzes optimal routes by collecting and unpacking vast amounts of data. This system helps us find theAlternative Marine Power Used When Docking at a Port

Speed Optimization, ‘System for Optimizing Energy Consumption’site. For more details, please see the contact

computing, and blockchain. We have developed a deep learning-based system called Vessel Insight thatships with the ship owners to find ways to better improve the energy efficiency.

tion and improve the energy efficiency of ships.

For additional information, please visit our web

To keep up with the fourth industrial revolution, we have equipped our work processes and the entire

our customers’ needs in an efficient manner. In addition, we remove unnecessary space when building

ships and design a structure that keeps up with the trend of cargo loading so that ship’s hardware can better accommodate the cargo.

With the purpose of reducing Scope 1 emissions from ships, we use Alternative Marine Power (AMP) where
and increase its portion at ports in Busan, Shanghai, and Yantian of China in addition to the West Coast of

the United States where the use of AMP is compulsory. Some of ships are planning to install electric heaters to ensure that we can put 'NO EMISSION AT PORT' into action.
Use of Alternative Maritime Power(AMP)
West Coast of the US
LA/LB
OAK

Unit
%

%

Goals

Over 80

Over 80

2020

2021

80.9

86.5

2022
90.9

73.1

84.9

94.3

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

Enhance Environmental Management

ESG MANAGEMENT

Environmental Management System

ESG PERFORMANCEHMM has established the environmental management policies and complied with the followings to deliv-

Environment

Special Issue I:
Our Action on Climate Change> Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

Environmental Management Policies

Environmental Management Strategies

er full-fledged environmental management.

environmental management up a notch, we have established an annual plan for environmental manageFurthermore, we haves looked into our operations, and products and services to identify any significant❶ We identify opportunities brought by climate change, and usher in a thriving future through environmental management.
❷ We disclose our GHG emissions in a transparent manner, and help our customers achieve sustainable growth.
❸ We ensure the compliance with laws and regulations worldwide, and continuous improvement.
❹ We combat climate change through eco-friendly investments.

only to the existing environmental regulations but also to new ones that are enacted. By doing so, we ensure our strict abidance by the regulations, and the prevention and minimization of environmental risks.

set up the goals for material environmental issues, monitored and assessed the results of implementa-

tions. In order to safeguard the ecosystems of local communities, we have observed the Clean Air
Conservation Act and invested in clean technologies, mitigating pollutants emitted from our operations.

environmental strategies and policies, and monitored implementation metrics through the Emergency

Response Committee, and the Shipboard Environmental Safety Committee, which are under HOS’s Environment and Safety-quality Committee. The relevant departments from HOS and HMM are in charge of

implementation, while the Quality Management Team manages waste and hazardous substances. The
R&D Team responds to environmental regulations, promotes activities to reduce air pollutants, and operates eco-friendly logistics system.

HMM Organizational Structure for Environmental Management(As of December 2022)

Environment
andSafety-quality
Committee

For additional information, please visit our web

We also make sure that we release air, water, and soil contaminants below the legal standards. In an effort

to manage air quality, we make full use of AMP when a vessel docks at a port, thereby minimizing GHG
emissions and fine dusts while installing EGCS* to reduce sulfur oxides. All these efforts combined havecontributed to improving local communities’ air quality. On top of that, efforts are being made tominimize the damage posed by ballast water to marine ecosystem through the installation of BWMS*.
When it comes to NOx regulations, we are equipped with SCR* equipment. In response to the IMO’s

regulations to cut GHG emissions from ships, we have established and implemented the plans to protect
the marine ecosystems of local communities.
* EGCS: Exhaust Gas Cleaning System
BWMS: Ballast Water Management System
SCR: Selective Catalyst Reduction

Establishment and Management of Environmental Management Key Targets

We have conducted environmental impact evaluations of our operations, products and services to identify their impacts on the environment and the likelihood of occurrence. Along with this, a wide range of action plans have been delivered to prevent environmental risks and reduce them to the minimum degree.
Moreover, we have monitored the performance indicators regarding the environmental risks identified

site. For more details, please see the contact

hmmesg@hmm21.com
http://www.hmm21.com

assessment. In addition, procedures have been established and implemented so that we can respond not

We aim to deliver company-wide environmental management in an organic manner. To this end, we have

❻ We solidify our partnerships to raise environmental awareness and sharpen required capabilities.

On the basis of our shipboard environment and safety management, we have developed company-wide

E-mailWeb siteenvironmental impacts that are likely to occur now or in the future, based on the environmental impact

Environmental Management Goal – Zero Environmental Law Violations❺ We create an environmentally friendly and sustainable environment.

Organization for Environmental Management

ESG Team

We have maintained the ISO 14001, an environmental management system. With the aim of taking ourment and managed Key Performance Indicators (KPIs) through constant monitoring and evaluations.

HMM Environmental Management Policies

APPENDICES

information below.

027

APPENDICES

Emergency Response
Committee

Shipboard Environment and
Safety-quality Committee

through annual environmental impact assessments, based on which we find the areas in need of
improvement and implement action plans.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

028

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment

Special Issue I:
Our Action on Climate Change> Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Performance Management to Achieve HMM’s Environmental Management Goals
Significant environmental aspects

Marine pollution caused byemergency situations such as
ship damage

Marine pollution caused byequipment failure

Air pollution causedby ship operation

Marine pollution causedby ship operation

Resource consumption
in the office

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Resource consumption in thecontainer M&R office* VECs: Vapour Emission Control System
PSSA: Particularly Sensitive Sea Area

Environment / energy Goals for FY2022❶	Prevent emergency situations and minimize damages❶	Optimally manage the pollution prevention facilities❶	Minimize fuel consumption and increase energy
efficiency❷ Minimize VOC emissions❸ Operate incinerators in compliance with law❶ Manage waste in compliance with law❷ Minimize waste oil generation❸ Manage ballast water in compliance with law❹ Operate EGCS (SCRUBBER) in compliance with law❺	Comply with regulations on the discharge of various
by-products generated during operation❶ Reduce oil consumption in business vehicles❷ Reduce power consumption❶ Prevent excessive water usage through water
management❷ Reduce oil consumption in business vehicles❸ Reduce city gas consumption

Monitoring index

Measures to achieve the goals〮 Conducting a risk assessment prior to operation

ZERO emergency situations

Maintenance and management of the pollution prevention facilities

Fuel intensity consumption
VECS* maintenanceZero violations of regulationsin operating incinerators

Treatment method

Amount of waste oil generated
Zero violations of regulations

1% improvement inenergy consumption

1% improvement inenergy consumption〮 Strict compliance of Bridge Navigational Watch guidelines〮 Improvement in emergency response capability through regular training〮 Ensuring route safety through in-route meteorological monitoring, cargo management, optimization of
the condition of navigation and engine equipment〮 Submission of information and improvement of facilities, if necessary, when laws and regulations arerevised〮 Provision of technical support and guidance upon the request from vessels〮 Regular tests and maintenance on pollution prevention equipment in a timely manner〮 Voyage optimization management (TRIM, draft, speed,
propeller immersion, etc.)〮 Compliance with SEEMP procedure〮 Implementation of VECs calibration〮 Efficiency management of ship equipment〮 Thorough check on sea areas where incineration isprohibited〮 Thorough implementation of separate collection according to
the Garbage Management Plan

〮 Compliance with ballast water management agreements and local regulations〮 Implementation of hull inspection〮 Minimization of volume through distribution and operation ofplastic compactors and shredders〮 Strict measurement and recording of each waste oil tank

〮 Optimization of the operating time of air purifiers considering
the quality of fuel oil〮 Check on the precautions for incineration〮 Compliance with the SOx emission control sea areasand control areas that ban the discharge of washwater when establishing the voyage plan
〮 Compliance with PSSA* and local regulations〮 Regular vehicle inspection and driving in regulated speed〮 Recommendation to use public transportation〮 Regular maintenance and efficient operation of facilities〮 Lights-out for unnecessary lights〮 Inspection of aged container washers and check the damageof washing hoses, check on them before cleaning〮 Turning off the vehicle engine when stopped formore than 5 minutes (reduction of vehicle idling)〮 Regular vehicle inspection and driving in regulated speed〮 Educating to close the door when heating〮 Monthly monitoring and management of water supply consumptions〮 Maintaining the set temperature of heating
equipment at 24℃

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

029

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment

Special Issue I:
Our Action on Climate Change> Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Environmental Management Activities

Environmental Management System

As a global comprehensive shipping and logistics company that offers top-notch transportation services
using a wide range of vessels, we uphold environmentally friendly policies and focus on energy efficiency. We
prioritize sustainable development principles to meet the needs of the present generation while also considering the environmental needs of future generations. In particular, we take our responsibilities transparently
and faithfully by identifying environmental impacts within our operations and sensing the needs of our
stakeholders. To that end, we have taken measures to reduce GHG emissions, prevent marine and air pollution, achieve zero oil spills, minimize waste generation, and save resources and energy in our ship operations
and subsidiary businesses. We also identify and evaluate environmental aspects that may occur during theoperation, building, remodeling, or repair of vessels, aiming to minimize environmental impacts. We adhere
to a world-wide environmental and energy regulations, as well as internal standards. We are committed tocontinuous improvement, pursuing our environmental and energy management.

ISO 50001(energy)

Energy system standard set byInternational Organization forStandardization (ISO)

Certified organization(expiration date)

HMM (Nov. 01, 2023)
HOS (Nov. 01, 2023)

Percentage of Workplaces
Conducted Environmental Risk
Assessment

Percentage of Certified Workplaces
ISO 14001(environment)

hmmesg@hmm21.com
http://www.hmm21.com

ISO 50001

67%(energy)

67%

33%

information below.

E-mailWeb site

Each vessel and team

CertifiedNotcertifiedSelecting the subjects of an evaluation

Conducting
Environmental
impact assessment

Certified organization(expiration date)

HMM (Nov. 01, 2024)
HOS (Oct. 25, 2025)
RWG (Apr. 05, 2025)

ESG Team

HMM’s Environmental Impact Assessment Process

HMM obtained ISO 14001 and ISO 50001 certifications, which are international standards for environmental
and energy management, internalizing the practices in our environmental management system.

Environmental management
system standard set byInternational Organization forStandardization (ISO)site. For more details, please see the contact

We conduct our own environmental impact assessment to identify the risks of significant environmental
aspects related to our activities, products and services, and evaluate the severity of the environmental
impact. The assessment is carried out in early December on a annual basis, led by the captain and theteam leader of each onshore department. We consider the whole process of our business activities, including sailing, anchoring, cargo management, equipment operation and maintenance, as well as all onshore activities, and check on water quality, waste, soil, noise, vibration, odor and other factors that
may affect the ecosystem. We then determine the likelihood and severity of each impact and devise
management measures. We also communicate with different levels and teams regarding critical environmental aspects.

Environmental Management Certifications

ISO 14001(environment)

For additional information, please visit our web

Conduct an Environmental Impact Assessment

67%
33%

CertifiedNotcertified

33%

Conducted Not
Conducted

Identifying environmental aspects

HOS Quality Management TeamIn case of events such as environmental pollution,
installation of new environment-related
facilities, and revision of environmental policy

Identifying environmental impacts
Preparing and sending an environmental
impact assessment report

Registering and keeping a register of significant environmental
aspects for environmental impact assessment
Environmental laws and requirements,
stakeholder requirements,
company instructions

Listing and sending a list of significant
environmental aspects

Establishingenvironmental
plans

Setting environmental goals
Setting environmental programs

Establishing environmental plans

Establishing environmental plans foreach vessel/team

Deliberation and approval(Environment and Safety-quality Committee)
Implementation

Analyzing and notifying bi-annual environmental performance

Yes

Gathering environmental performance details for each team/vessel
Analyzing the company’s environmental performance
Review and approval (Environment and Safety-quality Committee)

No

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

030

APPENDICESWE CARRY
THE FUTURE
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment

Special Issue I:
Our Action on Climate Change> Enhance Environmental Management
Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Eco-friendly Logistics and Transportation - ❶ Eco-friendly Transportation System

With the objective to create an environment-friendly transportation system, we have converted fossil
fuel-based stevedoring and transportation equipment in terminals into electrified and eco-friendly
fuel-based equipment. This continuous effort helps to reduce fuel oil consumption at terminals. Introducing
the automated yard cranes that operate using electricity as well as yard trucks that run on LNG-powered
are examples of our endeavors. In addition, we have installed solar panels on available space such as thegate roof, as part of our ongoing efforts to save electricity bills and increase energy self-reliance.

Eco-friendly Logistics and Transportation - ❷ Eco-friendly Automated Terminal

2022 Environmental Education Programs for Onshore Employees

OnshoreEnvironmental
Education• Automatic control of multiple cranes fromthe central control Room
• Improved driving efficiency• Prevention of human errors

Tandem Crane• Moving two 40ft-containers at once
• Improved driving efficiency• 50% reduction in energy consumption

Container automatic
identification device(OCR, RFID, RDT*, etc.)• Automatic tracking of container locationand movement route in container yard,
which is transmitted to the central controlroom• Increased operational efficiency by minimizing container movement• Energy saving effect

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

We provide a variety of educational programs to help employees understand the significance of addressing
environmental concerns and promote a shared understanding within our organization. We have organizeda total of three educational sessions by inviting external experts to discuss the importance of ESG management and carbon neutrality in the shipping industry. In particular, the special lecture, 'ESG & DT Management' was designated as mandatory education for all employees. We offer our working-level employees theopportunity to stay informed about our response to the IMO SOx regulation, eco-friendly ship technology,
and marine pollution prevention at all times. At the HOS Training Center, we equip personnel involved inmarine technology with practical job skills to improve their environmental safety management capabilities.
Our training includes ballast water management, marine environment management, and tanker operation
to prevent marine environment pollution. In 2022, we provided environmental training to employees working
in our business sites in Europe and Southeast Asia. Our goal is to gradually expand this training program in
the future.

General e-learning

˙Global management trends, successful ESG strategies

˙Survival strategy in the era of carbon
neutrality

˙Understanding and purchase of ship
fuel oil˙Ship inspection and ship building

˙Ship decarbonization technology
and fuel outlook
˙ESG practical course

˙Fundamentals of container ship
operation

˙Understanding of hazardous cargo

˙Eco-friendly and smart ship technology ˙Classification of hazardous cargoand practice˙Container ship operation management
˙Special lecture on hazardous
cargo management

2022 Environmental Education Programs for Offshore Employees
Offshore
Environmental
Education

Commissioned education

Internal education* OCR (Optical Character Reader): an optical character reader that reads the serial number written on the container with a camera
	RFID (Radio Frequency Identification): a wireless identification technology that exchanges data in the form of radio frequency
through media such as tags, labels, and cards with embedded semiconductor chips
RDT (Radio Data Transmission): a technology that enables wireless data transmission between mobile devices within a terminal

Environmental Education for Employees

˙ESG and DT management

Practical education on
shipping

We strive to increase the operational efficiency and minimize pollutant emissions at ports by building an
eco-friendly automated terminal. By implementing highly efficient equipment and utilizing an automated work
management system, operating costs such as labor and power can be lowered while simultaneously increasing
productivity and efficiency. Moreover, this approach can reduce carbon or pollutant emissions at the port.
Transfer Crane

ESG special lecture/external education

˙Basic education on tankers (oil tanker
and liquefied gas tanker)

˙Pollution prevention manager(regular / repeated training)

˙Ballast water management

˙First engineer’s duties

˙Tanker operation practice˙Safety seminar (vessel manager/
senior office/junior officer/staff
member)˙Duties around tankers (oil tanker andliquefied gas tanker)

˙Marine environment and management ˙New ship manager (captain/chiefpractices
engineer)
˙IMDG Code˙Chief officer’s duties

Environmental Education Status
Category

Environmental education completion rate (onshore+offshore)
Onshore employee
Offshore employee
Overseas corporation

Unit%

No. of people taking the course

PersonNo. of people taking the course

PersonNo. of people taking the course

PersonCompletion rate

Completion rate

Completion rate

%

%

%

2020

2021

2022

48.2

46.0

77.9

278

212

960

31.7

23.3

100.0

280

381

459

100.0

100.0

100.0

Not
implemented

Not
implemented

1,363

Not
implemented

Not
implemented

63.4

Remarks
ESG special lecture (ESG &DT management) in 2022
Mandatory education
targeting all employees

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Environment

Special Issue I:
Our Action on Climate Change
Enhance Environmental Management> Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ESG PERFORMANCE

031

APPENDICES

Mitigate Environmental Impact
Air Quality Management

Water and Waste Management

We strictly comply with the Clean Air Conservation Act and use various filters as well as Vapor Emission

We efficiently manage water resources that ships require from the ocean. We use recycled seawater andActivities and Measures to Reduce Air Pollution

Control System (VECs along with the installation of scrubbers and Selective Catalyst Reductions (SCRs) inorder to curtail air pollutants. By doing so, we make sure that our air pollutant emissions directly affecting
local communities are below the legal standards.

˙Reduction of emissions by installing scrubbers and using low-sulfur oil
˙Application of diesel engines mounted on ships

NOx emission
management

˙Improvement in fuel efficiency by converting fuel injection valves to thesliding type and installing engine control systems while applying selective
catalyst reduction(SCR) technology that drastically removes NOx forsome new ships

PM emission
management

˙Management of the energy consumption rate of a vessel to preemptively
respond to particulate matter(PM) regulations

Volatile Organic
Compounds (VOCs)
emission management

˙Installation of vapor emission control systems(VECs), on all oil tankers,
which control the emissions of harmful oil vapor generated whileloading cargo oil to an oil tanker, thereby protecting the atmosphericenvironment and creating a pleasant environment

Amount of Emissions

NOx emissions (excluding N2O)
SOx emissions into the air
PM emissions into the air

Unit

Tons
Tons

Tons

freshwater for cooling ship equipment while continuously monitoring the amount of clear water consumption to control the amount of heavy water generation as an effort to reduce environmental pollution.
When the scrubber cleaning water, used to cut the exhaustion of sulfur oxides, is discharged overboard,

with conventions and regulations in an effort to minimize environmental risks. On top of that, sewage gen˙Installation of scrubbers (sulfur oxide(SOx) emissions reduction device)in preparation for the IMO environmental regulations implemented in
2020

SOx emission
management

Activities to Manage Water Resources

we continuously measure the amount of acidity(pH), turbidity, PAH, and nitrate with an aim to comply

Mitigation Plans against Air Pollutants

Air Pollutant Emissions*
For additional information, please visit our web

ESG MANAGEMENT

2020

2021

2022

66,131

82,18392,522

7,139

9,068

10,206

4,957

6,140

6,905

* The amount of emissions have risen due to an increase in the number of operating vessels

erated from ships is treated and discharged through a sewage treatment system or stored and managed
in a separate holding tank. In the case of gray water released from cabins and galleys, we newly made adedicated holding tank in an active response to the regulations, such as the U.S. Vessel General Permit. On
land, we successfully reduced our water consumption by 30% after moving the head office building in July
2022, compared to the consumption in the previous one.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

032

APPENDICESWE CARRY
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HMM OVERVIEW
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ESG PERFORMANCE
Environment

Special Issue I:
Our Action on Climate Change
Enhance Environmental Management> Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Waste Management Plan and Activities

We have established and implemented a 'Waste Management Plan' to effectively manage waste generated by ships. Our plan covers the collection, storage, treatment, and disposal of all waste in compliancewith the MARPOL* annex. The entire process, encompassing waste generation, discharge, transportation,

The First Korean Shipping Company to Join ‘Waste Rope Resource Circulation Project'

and treatment, is monitored according to the company's waste management plan. Our goal is to minimize

waste and promote the recycling of waste generated by ships. We achieve this by implementing practices

such as separate waste collection and using plastic and can compressors. In addition, we have taken partin the Incheon Port Resource Circulation Economy Project*, which has gone beyond simple recycling activities on ships since 2022. In 2023, we became the first Korean shipping company to join the recycled raw

material production project using waste ship ropes, actively resolving the marine debris problem. Even
though there is little waste generated on land, including at the head office, we still allow waste treatmentcompanies to handle the disposal and recycling in the event when waste is produced. Also, since 2022, wehave been actively expressing opinions and monitoring construction contracts, including the restorationof the old office building, so that the involved companies sign contracts with waste disposal companies
insured for environmental investment liability.

* MARPOL: Also called MARPOL 73/78, the International Convention for the Prevention of Pollution by Ships was adopted by the International Maritime Organization(IMO) in 1973 and the related protocol in 1978.
* Project of producing clothing made from waste PET bottles collected from ships

Incheon Port Resource Circulation Economy Project

1

2

3

4

Collection ofwaste mooring ropes

Pre-processing

Productionof recycled
nylon

Productionof
clothinggoodsand
dailynecessities

HMM has partnered with Foresys to establish a circular economy
system that recycles waste ropes. This partnership has madeHMM the first Korean shipping company to recycle waste ropes.
Every 5 to 7 years, we replace the mooring ropes used to anchor
ships in port. This results in approximately 20 tons of waste fromworn-our mooring ropes every year. The project helped us establish a circulation system that produces recycled nylon raw materials after removing and processing salt and foreign substances on
the surface of discarded mooring ropes capitalizing on eco-friendly
technology. During the recycling process, approximately 80 to 90%
of waste mooring ropes, measured by weight, are transformed into
new products made of nylon, including clothing, goods, and daily
necessities.

Management and Recycling of Ship Waste Oil

HMM monitors the amount of waste oil (sludge, oily bilge water) generated and processed (discharging toshore reception facility / recycling) and sets specific targets for each vessel for thorough management andkeeps records for reference. We also maintain a close cooperative relationship with onshore waste treatment companies to process waste legally and efficiently.

Ship Recycling

To ensure safe and environment-friendly ship dismantling, we follow strict procedures that comply with

the International Maritime Organization (IMO) Ship Recycling Convention and EU Ship Recycling Regulations as well as our own procedures for ship dismantling. We put in significant effort to reduce employees’
Establishment and operation ofrecycling process

site. For more details, please see the contact

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Business agreement

safety risks and environmental pollution during the dismantling of old ships while also taking measures toprevent any potential accidents in advance.

Processing ofrecycled flakes

Production ofrecycled products(clothes, etc.)

Sales and support(HMM, Incheon
Port Authority)

For additional information, please visit our web
information below.

Collection of waste
plastics of ships

Production ofrecycled products(goods including bags)

Production ofrecycled products(clothes, etc.)

Ship Recycling Process
1
Material identificationand listing of hazardous substances(asbestos, PCBs,
ozone-depleting substances, etc.)

2Selection of the place
for scrapped ships
through preliminary
investigation3
Dispatch of qualified
supervisors foroverseeing the entire
process

4
Placement of allhazardous material
records and related
certificates on board
since December 31,
2020

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APPENDICESWE CARRY
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ESG PERFORMANCE
Environment

Special Issue I:
Our Action on Climate Change
Enhance Environmental Management> Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Hazardous Material Management

Blocking and Handling of Hazardous Chemicals
HMM prioritizes safety by thoroughly reviewing all chemical substances used in our business sites
and ships beforehand. Our goal is to prevent the use of hazardous chemicals and manage thechemicals we use in a systematic way. We prohibit the use of harmful paints, like TBT paints, which
can harm marine life and the attached marine organisms. Instead, we use eco-friendly antifouling
paints. We also utilize eco-friendly chemicals in cleaning ship equipment and use eco-friendly lubricant for equipment that has a risk of leakage overboard such as stern tubes*, bow thrusters*, andrudders*. For equipment that has outboard contact like wire ropes, we use eco-friendly grease.
* Stern tube: A tube which accommodates the propeller shaft, bush, and bearing. It is sealed with front and rear sealing and is filledwith lubricant with a higher static pressure than seawater.
*Bow thruster: A propulsion unit mounted in or on the bow of a vehicle, used for the berthing and deberthing. The berthing anddeberthing may be conducted by magnetic force without the aid of a tugboat depending on the magnitude of the thrust. It may also
be used for dynamic positioning.
*Rudder: A device usually installed behind a propeller for steering a ship.

Regular Inspections of Hazardous Chemical Substances
We mark and label to take precautions and accident prevention measures when transporting andstoring hazardous chemicals. Proper marking and labeling are also utilized to establish appropriate
countermeasures in case of emergencies. To ensure safety when handling and storing hazardous
chemicals, we attach durable labels that clearly classify risks according to the IMDG* Code. Additionally, we conduct regular inspections of dangerous materials to maintain safety standards.

* IMDG (International Maritime Dangerous Goods): An international guideline to the safe transportation that should be applied when transporting dangerous goods or hazardous materials by water on vessel, adopted by the International Maritime Organization(IMO) in 1965

Handling of Hazardous Chemicals
In accordance with the IMDG Code, we define hazardous chemicals(dangerous goods) as substances that may pose an immediate risk to human life, hull, cargo, and others due to their explosive,
flammable, toxic, and corrosive properties. To ensure safety for both employees and ships, we classify hazardous chemicals into 9 different grades and implement measures to isolate and separate
them. The shipping items that are restricted and prohibited are announced on our website. In compliance with the Occupational Safety and Health Act, we utilize Material Safety Data Sheets(MSDS)
to properly handle hazardous chemicals and avoid any potential accident.
Hazardous Chemicals Handling Process
1

2

3

4

5

Goods receipt
management

Warehousing
management

Goods issue
management

Usage andprocess
management

Check-upmanagement

Employee Training on Hazardous Chemical Handling for the Health and Safety of Customers

We offer IMDG training on hazardous cargo for the health and safety of customers to the workers who arehandling hazardous chemicals transported by ships. Our goal is to ensure the safe operation of ships. Therefore, we particularly educate our offshore personnel on the various types and definitions of dangerous cargo
carried on board ships. We also help them develop the skills to manage the safety of dangerous goods by providing a thorough understanding of the laws and regulations related to the Code. In 2022, we provided safety
training to all employees, including the ones overseas. As a result, a total of 460 employees received 1,581
hours of training, which marked a significant increase from the previous year. Through our training program,we aim to establish a consistent and structured approach to managing hazardous chemicals. We strive tospread a safety culture by raising safety awareness among the workers handling hazardous chemicals.
Training on Hazardous Chemical Handling*

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Occupational training on environment
Training on hazardous chemicalhandling for the health and safetyof customers

Onshoreemployee

Offshore
employee

Category

Training hours

Unit

2020

2021

2022

Hours

138

211

701

Hours

23

26

405

138

211

701

23

26

405

No. of participants

PersonNo. of participants

PersonTraining hours* The training programs include the training on dangerous cargo and safe transportation

HMM OVERVIEW

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ESG PERFORMANCE

034

APPENDICESWE CARRY
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Environment

Special Issue I:
Our Action on Climate Change
Enhance Environmental Management> Mitigate Environmental Impacts
Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICES

Biodiversity Conservation: Marine Ecosystem Protection
Mandatory Ballast Water Treatment System

Right Whale Protection

management system. Starting from September 2019, the International Maritime Organization(IMO) madethrough waters inhabited by these whales. Specifically, when navigating through the right whale protected

HMM complies with all laws and regulations to protect the marine ecosystem through our ballast water

it compulsory for ships to have a ballast water treatment system(BWTS) installed. This system disinfects

and purifies the ship's ballast water before it is discharged. After establishing and gaining the approval forour ballast water management plan, we are not only fully complying with the convention's provisions, butalso actively protecting the marine ecosystem.

Performance of Underwater Hull Cleaning Robots
To further strengthen the preservation of marine ecosystem, we have controlled biofouling, which isa form of pollution that occurs when barnacles, algae, and microorganisms attach themselves to thebottom of ships. To this end, we have replaced the bottom cleaning methods of all operating ships
with submersible robots since March 2020. We have developed a win-win collaboration system withlocal underwater robot companies that enables us to clean the bottom of vessels. This is done bytransferring the waste to a land purification system through a filtration system connected to the main
body. All 18 ship bottom cleaning operations in 2022 were completed(100%) using underwater robots, leading to reduced costs, more accurate cleaning, and fewer working hours required.
Hull Bottom Cleaning Using Underwater Robots (2022)

12

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Owned ships

6

In order to avoid vessel collision with right whales, we operate our vessels at low speeds when passingarea, we ensure that our ships travel at speeds of less than 10 knots and follow the mandatory ship reporting
system. Additionally, some ships have installed surveillance cameras on the bow to ensure safe navigation.

Marine Protected Areas for Right Whales (Southeastern United States)

Savannah
Brunswick

Fernandina

Jacksonvile

Port Canaveral

Chartered ships

R&D into Underwater Radiation Noise Measurement
HMM is actively researching ways to reduce the technical underwater noise generated by ships incompliance with the regulations set forth by the International Maritime Organization(IMO). To achievethis, we are currently developing a technology that utilizes sensors installed on board to measure andanalyze underwater radiated noise during ship operation. Our goal is to accurately predict and minimize the distant underwater radiated noise. We will be in continuous pursuit of minimizing underwater noise and safeguarding the marine ecosystem.

Calving and Nursery Grounds

November 15
through April 15
Southeast U.S. Seasonal
Management Area
Ports

Mandatory Ship Reporting Area
SE Seasonal Management Area

Biodiversity Risk Monitoring through Environmental Impact Assessment

To minimize the negative impact on the marine environment, we conduct an environmental impact

assessment. This helps us preserve biodiversity in case of environmental pollution accidents or changes,
such as installing new facilities for environmental purposes during ship operations.

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Environment

Special Issue I:
Our Action on Climate Change
Enhance Environmental Management
Mitigate Environmental Impacts> Expand Eco-friendly Investment andCollaboration

SocialGovernance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

Expand Eco-friendly Investment and Collaboration
Enter into Green Business and Develop Eco-friendly Projects

We strive to diversify business areas and expand the green aspects of our business by conducting external
cooperation research and national projects.

Research on carbon capture systems for ships
OCCS(Onboard Carbon Capture System) is expected to be an effective means of mitigating GHG emissions in ships. Therefore, we conducted a feasibility study with domestic ship equipment firms andshipyards. We are currently in the process of presenting ship demonstrations. Through the research, thecarbon capture value chain is expected to be established for ships.

Demonstration of ships with alternative fuel, ‘bio-heavy oil’
Biofuel is a carbon-neutral fuel that can be used immediately without any ship modifications. Since thedemonstration of biofuel ships in 2021, we have made company-wide efforts to establish a supply chain
and prepared for additional demonstrations of second-generation biofuel ships with high reductionsin GHG emissions. Our main goal is to satisfy our customers by providing shippers with GHG reductions
through biofuels.

Ammonia transport business
Demands for Ammonia is anticipated to increase due to its potentiality for replacing the conventionalsource of power as eco-friendly fuels for ships, but also due to the expansion of hydro value-chain, andincrease of combined power generation. We are continuously cooperating with potential shippers inpursuit of ammonia transportation and utilizing ammonia propulsion ships.

Liquefied CO2 transport businessAs part of the CCS(carbon capture storage) project for carbon reduction and net zero, we are consideringjoining a project to liquefy CO2 emitted from power generation and petrochemical companies. We arealso considering landfill it in waste gas fields or waste oil fields with energy producers and shipyards.
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

035

APPENDICESWTIV (Wind Turbine Installation Vessel) Project

There is a growing need for a dedicated vessel to install large-capacity offshore wind turbines as part ofa plan to increase the proportion of renewable energy production in the future. Accordingly, we are
exploring the possibility of building and operating this vessel in partnership with relevant companies
while identifying domestic and international demands.

Expand Green Collaborations

We are currently conducting various green research projects, while establishing internal and external networks.
HMM in National Research Projects
Cooperative Projects

Establishment of the R&D platform foran eco-friendly hydrogen fuel ship
(Jun. 2019 – Dec. 2023)

Development of ship efficiency
improvement technology to address the aging effect(Apr. 2020 – Dec. 2022)
Production and development of
new biodiesel technology(May. 2021 - Dec. 2024)
Development of technology tocommercialize smart containers(Apr. 2021 - Dec. 2024)

Development of high-voltage and large-capacity power
generation system technology(Ministry of Trade, industry and Energy)

Ships to respond to the IMO marine environmental protection
regulations(Jul. 2020 - Dec. 2023)
Thermoelectric power generation(May. 2021 - Apr. 2026)
Fouling organism treatment(Apr. 2021 - Dec. 2025)

Research Content

Establishment of a foundation for the development of key technologies for eco-friendlyhydrogen fuel cell propulsion ships
Development of navigation data analysis technology based on big data, analysis of vessel performance according to age changes and development of advanced technology,
identification of ways to improve the operating environment

Production of new biodiesel for ships and development of related technologies

Development of smart container structure and smart units(external communication,
GNSS positioning, solar power, refrigeration controller, smart sensor node, etc.),
development of service platforms, and demonstration test
Development of shaft generator technology using the output of the main
propulsion engine

Development of underwater radiated noise monitoring and noise reduction technology
Development and demonstration of the thermoelectric power generation systemutilizing industrial waste heat
Development of hull fouling organism treatment(removal, repair, treatment) technology

New External Collaboration Projects
Cooperative Partners

Samsung Heavy Industries(SHI)
Korean Register

Korean Register, Korea Maritime Institute(KMI)

Lotte Fine Chemical, Korea Shipbuilding & Marine
Engineering, POSCO, Korean Register, Lotte Global Logistics
DNV(Decarbonization Korea Network)
LR (LR Safetytech Accelerator Cargo Fire & Loss Initiative)

Research Content

Joint research and development of smart and eco-friendly ships(around view,
motion sensor, VR, AR, AI, etc.)
Research and development of green and smart ship technology
The research forum on alternative fuels in the shipping industry

Business cooperation agreement on green ammonia maritime transportation /bunkering

Information exchange between the DNV classification society and domestic shipping
companies on the regulations and technologies in relation to the reduction of GHG
emissions
Joining a global container ship safety initiative to reduce cargo fires and losses

HMM participates in the “Green Shipping Corridor”

HMM is participating in the Green Shipping Corridor, recommended by the U.S government, in an effort to pursuing a complete
decarbonization of the shipping industry by 2050. During the Conference of the Parties-COP27, which was the 27th meeting held
in November 2022, we have announced our official participation in the Green Shipping Corridor. Currently, we are reviewing the
project validation, and with the results, HMM will promote de-carbonized ship operations from Korea, Pusan to America, Tacoma,
port to port by 2030.

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036

APPENDICES

SocialESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialGovernance

APPENDICES

Issue ImportanceWith a rising desire to improve the quality of life for all, there is an increasing need for corporate social responsibility. In this context, companies can create social value and pursue ESG management by fulfilling the social responsibilities demanded by various stakeholders.

HMM Approach

We are committed to fulfilling various tasks to meet our corporate social responsibility, taking into account theperspectives of all stakeholders involved with the company. Our 'employees' safety and health are of utmost importance as they are vital to our business operations. We offer robust assistance to our 'partner companies' in ESG,
allowing us to fulfill the needs and expectations of our 'customers.' Additionally, we engage in social contribution
activities associated with the shipping industry, with the goal of creating a happy society that benefits 'global andlocal communities.' On top of that, we understand the significance of human rights for all stakeholders involved,
and therefore, we are implementing and advocating for a management system to safeguard these rights.
Lost Time
Incident
Frequency(LTIF)

Offshore

Onshore0.83
0.43

Rate of Labor union
membership

91.1

%

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Rate of suppliers conducted
ESG assessment

72.3

No. ofserious accidents

No. of information
security accidents

Zero
Percentage of interviews forregular performance andcareer management

100

037

Cost for social
contributions%

Rate of suppliers
conducted ESG due diligence

%

Zero
KRW

896.6

042
million

%

92.3

047
051

Human rights
education completion rate

40.7

044

056
058
%

061

SPECIAL ISSUE Ⅱ: Safety and Health Management

SPECIAL ISSUE Ⅲ: Reinforce ESG Partnership in the Supply Chain
SPECIAL ISSUE Ⅳ: Human Rights Management
Human Resource Development
Work-Life Balance

Customer Satisfaction

Our Impact on Local Communities

Data Privacy and Information Security

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Environment
Social> SPECIAL ISSUE Ⅱ:

Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

037

APPENDICES

SPECIAL ISSUE : : II

Safety and Health Management
Safety and Health Management System
Safety and Health Management Policies

We have established the safety and health management policies and shared with our stakeholders, suchas employees, customers, and partners, with the aim of ‘Enhancing Sustainability of HMM through Safety
and Health Management.’ We set safety and health as our top management goals, and we consistently

communicate with our employees and stakeholders to achieve these goals. We prioritize safety by adhering to regulations and proactively identifying and eliminating potential risks. We also facilitate communication on safety and health among all stakeholders involved to cultivate safety culture that is active andfriendly. We provide information on safety and health to maintain transparency, disseminating our firm

Safety and Health Management Goals

We successfully achieved our goal, ‘Zero serious accidents through preemptive safety and health manage-

ment’ in 2022. Moving forward, we aim to maintain this level of achievement in 2023 by establishing andimplementing four action plans.
Action Plans for Safety
and Health Management

Continued
success in achievingZEROcommitment to safety management and fulfilling our social responsibilities.

serious accidents

Safety and Health Management Policies
HMM does its best to systematically and continuously improve HMM ESQS System with the goal of ‘Enhancing the sustainabilityof HMM through environmental and safety management’ as a global shipping and logistics company that provides the besttransportation service with a variety of ships. To achieve this, HMM declares the following safety and health management policies, and all employees and stakeholders shall actively practice the following to make a safe and healthy HMM.
❶ HMM sets safety and health as its top management goals.
❷ HMM always shares safety and health goals, and values with its employees, partners and workers, while cooperating one
another to achieve the goals.
❸ HMM thoroughly complies with laws and regulations related to safety and health and prevents accidents in advance throughcontinuous evaluation and removal of risk factors.
❹ HMM operates various communications channels for safety and health in which stakeholders such as customers and partners
participate together and creates an active and friendly safety culture through smooth and free communication.

❺ T hrough effective education and training, HMM raises safety and health awareness of all employees and carries out continuous preventive activities to prevent serious accidents.

❻H MM guarantees transparency by disclosing safety and health management policies and related information to employees

and stakeholders and fulfills its social responsibilities by disseminating and implementing a firm will for safety management.

Safety control through theinternalization of safety andhealth management system(maintaining ISO 45001
certification)

Creation andinternalization ofautonomous safety culture(creating a safety culture
for employees and partnercompanies)

Ships
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Workplaces

HMM Safety
and HealthManagement

Employees

Stakeholders (customers,
partner companies, etc.)

Prevention of accidents
through continuous
on-scene inspections

Certification for Safety and Health Management System

We obtained ISO 45001 certification in 2019, through our ship management subsidiary, HOS, with thegoal of ensuring ship safety. In addition to that, we obtained ISO 45001 certification for our onshore sites
in 2022. As a result, we now apply safety and health management throughout the entire business, encompassing onshore and offshore workplaces.

ISO 45001 (safety and health)Scope of Our Safety and Health Management Policies

Prevention of accident
recurrence through theanalysis of occupational
accident data

Occupational safety andhealth management
system standard set byInternational Organizationfor Standardization (ISO)

Percentage of Certified Workplaces
ISO 45001(safety and health)

67%
33%

Certified organization(expiration date)

HMM (onshore) (Jun. 30, 2025)
HOS (ship) (Oct. 25, 2025)

CertifiedNotcertifiedHMM OVERVIEWWE CARRY
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SPECIAL ISSUE : : II

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
Social> SPECIAL ISSUE Ⅱ:

Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

Employee and Supplier Health and Safety Management Program

Organization for Safety and Health Management System

Our safety and health management is mainly operated by the Safety and Health Management Team under
the Safety and Health Management Department. We gather the perspectives of employees through communication channels, like the Occupational Health and Safety Commission, where employees and theirrepresentatives contribute. Additionally, we conduct regular safety inspections at the workplaces and report any safety and health issue identified to management. We then manage those issues by establishing
improvement plans. Besides, we annually assess the safety and health management practices of the companies we have contracted with to ensure that they meet our standards, and we support them to make an
improvement when necessary. This helps us maintain efficient company-wide safety management.
Organizational Structure for Safety and Health Management System

CEO

Safety and
HealthManagement
Department(As of March 2023)

Safety and
HealthManagement
Team(Chief Maritime
Office)Safety and Health Management Emergency Response System

We follow the emergency response manual to handle different types of emergencies, aiming to minimize
any damage caused by accidents through efficiently operating the emergency response system.
Emergency Response System(As of March 2023)

CEO

Head of Emergency Response
Headquarters
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

On-scene Support Team˙Support on-scene work

On-scene Response Team˙Supervise on-scene work
(e.g. prevention work)

˙Command business operation andestablish countermeasures
˙Report status and results to the
management

Emergency Response
Headquarters

˙Serve as a contact channel foron-scene support team・Establish life safety measures, etc.

Workplace Safety and Health Management

We enhance workplace safety measures for both onshore and offshore employees by proactively addressing potential risk factors. We conduct inspections of our onshore workplaces twice a year to identify andimprove risky areas. We also share information on harmful risk factors and provide safety rules for employees on business travels. For offshore workplaces, we regularly conduct vessel safety inspections to identify
and improve any risk factors.
On-scene (vessel safety inspection) Evaluation Process1

2

Inspect shipsafetyNotify inspection results
and request for
improvement
measures3
Submit, review,and decide on
improvement
measuresOn-scene Inspection (vessel safety inspection) Results in 2022
Inspection by external experts

Self-safety inspection

40 times per year

56 times per year

Workplace Safety and Health Risk Assessment

We conduct risk assessments twice a year, in thefirst and second half of the year, to identify any
potential risk in our business, and regularly inspect
our operations and take measures such as attaching warning signs to make improvements. In 2022,
the number of improvements made based on therisk assessment is as follows.
Number of Harmful Risk Improvement
Cases at Workplaces
Category
OnshoreOffshore

Unit

Cases
Cases

4

5

Request to
implement
improvement
measures

Implement improvement measures and report
implementation
results

Inspection by Safety and HealthManagement Department

5 times per year

Furthermore, the efficacy of the improvements
made based on the risk assessment is validated
during the subsequent risk assessment.
Percentage of Workplaces Conducted
Safety and Health Risk Assessment

67%
33%

No. of risk improvement cases(Revision of risk
assessment table, etc.)
1193
Implemented

Not
implemented

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SPECIAL ISSUE : : II

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
Social> SPECIAL ISSUE Ⅱ:

Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

24/7 Safety Emergency Response System

We aim to create a safety culture based on fundamental principles. To preemptively response to any

mitigate potential risks before proceeding with any contract, service or commissioning work. We evaluate

the Emergency Response Headquarters. Our goal is to minimize damages by swiftly communicating thehealth and safety management system (HSMS) has been established to provide safety-related information

Additionally, we maintain an emergency response system in case of emergency situations and manage
situation and taking necessary measures for the environment, safety, and health. Our focus is also on preventing accidents to ensure business continuity for our customers.
Emergency Response Monitoring Process
Emergency response drill

Conducting
emergency
training

Training by scenario· Onshore training (once)· Joint training with onshore andoffshore (twice)· Offshore training (occasionally)in compliance with international regulations

Taking improvement
measuresCheck of implementation (half yearly) in compliance with
the Serious Accident Punishment Act

site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

our major partner companies' ESG management and monitor their health and safety-related training. A
and rules when they visit our business sites for work. Our plan for 2023 includes providing safety culture
lectures to managers of partner companies with an aim to promote safety culture continuously. To implement our plan, we have allocated a budget.

Emergency response at work
Conducting risk assessment before
work (based on the checklist)

Planning
emergency training

Evaluating
the training

For additional information, please visit our web

committing to following safety laws and wearing protective gears. We also ask our partners to identify andsafety-related accidents, we conduct and analyze risk assessments and remove or mitigate risk factors.

Eliminationof risk factor

Process to Visit Hazardous Workplaces
1
Apply for approval (visit)

2

Send educational information(those who havenot completed
training)

3

4

5

Access and complete training

Issue thecertificate forcompleting thetraining

Visit an embarkation site

6

Make a gatekeeper andthe person in
charge check thecertificate

WORK

Execution of work
If additional risks
are identified

Enforcement of the ‘right to refuse
work’ and evacuation

Elimination of the risk factors and reassessment of the risks
Elimination ofrisk factors

Resumption of work and reporting after
the work is completed

Safety Culture Dissemination towards Partner Companies

We promote a safety culture across all areas where safety is crucial, including workplaces, employees,
and partners. To prevent accidents, we ask our partners to take safety and health compliance pledges,

Utilizing the Health and Safety Management System (HSMS)

In 2022, we developed the Safety and Health Management System (HSMS) to ensure the safety and healthof our personnel entering and exiting the workplace. Since 2023, we have started to utilize HSMS to pro-vide safety policies and rules to our personnel, which they can access through their mobile phones. This
helps them carry out their work safely and effectively on our workplaces. HSMS enables teams to evaluate

the safety and health practices of registered partners for contract, service, or commissioning work. The
system also registers safety and health-related data to ensure that the partner companies have the necessary capacity to work safely.

HMM OVERVIEWWE CARRY
THE FUTURE

ESG MANAGEMENT

ESG PERFORMANCE

040

APPENDICES

SPECIAL ISSUE : : II

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
Social> SPECIAL ISSUE Ⅱ:

Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Raise Employee Safety AwarenessWe offer safety and health training, disaster preparedness safety training, cardiopulmonary resuscitation training, and regular emergency response drills to improve the safety awareness of our employees. Additionally, we have revised our procedure for business travels to include a preliminary
risk assessment, which may help us respond calmly and effectively in case of accidents while ensuring safe travels.
Safety and Health Training
We provide safety and health training for employees and partners to minimize risks and promote asafety culture based on best practices. In order to offer effective training, we categorize employees
into onshore and offshore groups according to their work environment and job characteristics. Thisapproach enables us to customize the training contents to meet the unique needs of each group.
2022 Safety and Health Training Curriculum

Safety and
HealthTraining

Governance

APPENDICES
Legally mandatory training
Offshore
employees

Onshoreemployees

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Employeesof partnercompanies

In-house training

˙Safety training under the requirements of
˙Internal safety and health training for new
the Seafarers’ Act, the Ship Safety Act, thepersonnel on board
Maritime Safety Act, etc.
˙Regular safety and health training

˙Training for management and supervisors
˙Training upon hiring

˙Job training for appointed candidates

˙Business trip safety and health training forsemi-on-scene employees
˙Disaster preparedness safety training

˙Occupational safety rule training before
boarding

Safety and Health Training for Employees
Category

Completion rate of HMM safety and health training(onshore + offshore)
Onshore employees
Offshore employees
Employees of partner companies

No. of participantsCompletion rate

No. of participantsCompletion rate

Completion rate

Unit%

Person%Person2022 Performance

Remarks

100.0
960
100.0
959

%

100.0

%

100.0

Compulsory training
implemented for all
employees
Compulsory training
implemented for all
workers on board

Safety and Health Communication for Employees
We share our policies and goals as well as relevant regulations and manuals with our employees
through the safety and health bulletin board. We also collect feedback on safety and health issues
from our employees through the board. Moreover, we convene the Occupational Health and Safety
Commission meetings every quarter to hear the opinions of our members through onshore and offshore labor unions, and to discuss and implement improvement measures. For the offshore issues,
we further solicit field opinions through HOS, our ship management subsidiary. When our safety inspection personnel are on board, we interview on-scene managers as an effort to gather additional
field voices.

Performance of Safety and HealthCommunication Channels for Employees
Communication
channels
Occupational Healthand Safety
Commission
Safety and Health
Bulletin Board

Shipmanagement
Sub-contractor
Health and Safety
Council

2022 Performance

Remarks

4 times (quarterly)

Notification of safety andhealth related guidance,
hearing opinions ofinternal employees

Opinions
Annual captain review,of offshore
26 suggestions madeemployees
from crew members, etc.
heard

Percentage of HMM Onshore and Offshore
Workers Represented by the Occupational
Health and Safety Commission

100%

HMM OVERVIEWWE CARRY
THE FUTURE

ESG MANAGEMENT

ESG PERFORMANCE

041

APPENDICES

SPECIAL ISSUE : : II

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
Social> SPECIAL ISSUE Ⅱ:

Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

Safety and Health Communication for Partner Companies

We actively seek feedback from partner companies and stakeholders through a safety and health opinion

suggestion board on our website and gather opinions and implement improvement measures. We also
regularly consult with our partners to address their concerns and improve the overall safety and healthenvironment.

Performance of Health and Safety Communication Channels for Partner Companies
Communication Channels

Shipmanagement Sub-contractor Health and Safety Council
Safety and health meetings with partner companies

Unit

Times

2022 Performance
5

Times

RemarksMore than once per quarter
Half yearly2

management, including accidents at both onshore and offshore sites as well as partners. With the establishment and implementation of recurrent accident measures at our workplaces, we are lowering occu-

pational accident rates. We also organically cooperate with partners and hold regular meetings to prevent
occupational accidents on ships, our high-risk workplaces. To ensure the safety of partners’ employees,

we will include the current worker accident rate in our regular ESG assessments and due diligences, which
will help us monitor and effectively improve the employee accident rate.
Indicators of Occupational Accidents at Workplaces

OnshoreFor additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Offshore

LTIF

Accident rate
LTIF

Accident rate

Unit%

No. of accidents per 1 million
working hours
%

2020

2021

2022

9

5

3

Cargo Safety Management
Cargo Safety Management System

We occasionally and regularly perform safety checks to ensure the safe transportation of all types of cargo,

including dangerous cargo (DG) and general items. Our booking system is updated with database fromthe International Maritime Dangerous Goods Code (IMDG Code) and dangerous cargo regulations by eachwith DG cargo, we carefully review its declaration or packing certificate to ensure compliance with reg-

We have established and managed Key Performance Indicators (KPIs) for workplace safety and healthNo. of accidents per 1 million
working hours

Unit

Cases

occurrences, and meteorological conditions using the IVMS weather forecasting system. When dealing

Evaluation of Safety and Health Performance

Indicators

Category

No. of accidents at partner companies

shipping company and port. We also regularly check cargo securing conditions, temperatures, damage

Health and Safety Performance of Employees and Suppliers

Category

Number of Accidents at Partner Companies

2020

2021

2022

0.95

0.33

0.43

0.34

0.11

0.10

1.26

1.10

0.83

1.10

0.96

0.73

ulations regarding dangerous cargo. We also utilize manifests and checklists to proactively prevent any
potential accidents.

OnshoreShips

Generalcargo

Before shipping

During shipping

DG

Before shipping

Before shipping

Before unloading

During shipping

After shipping /during sailing

Cargo Safety Assessment

HMM conducts an internal audit annually and an external audit biennially to ensure the safe transporta-tion of ships and cargo in compliance with international regulations, including the ISM Code. Performanc-es are evaluated and monitored based on a five-criteria model that includes 'Extra Good,' 'Good,' 'Fair,''Poor,' and 'Bad.'

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management> SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

SPECIAL ISSUE : : III

Reinforce ESG Partnership in the Supply Chain
ESG Management in the Supply Chain
HMM’s Main Supply Chain

Fair and Transparent Selection and Assessment of Partner Companies

freight forwarders, feeder carriers, and fuel oil suppliers worldwide. Currently, the Purchasing Team over-

we regularly assess our suppliers based on factors such as quality, price, supply capability and financial

HMM's main supply chain network consists of container terminals, container depots, railroad companies,
sees sustainable purchasing policies that ensure HMM’s partner companies in the supply chain and com-

ply with international laws and social responsibilities regarding human rights, labor, safety and health,environmental protection, and ethical management. With the support and cooperation of related departments, HMM aims to create a corporate ecosystem that promotes sustainable growth.

Criteria of HMM's Major Suppliers

Criteria of major suppliers

Suppliers that account for more than 80% of the annual purchase amount by purchasing item

Purchasing items
Fuel
LubricantEquipment

Sustainable Purchasing Policies

rights and labor, safety, and health, environmental protection, and ethical management to manage ESG
concerns in our supply chain. We also encourage our partners to follow the Code of Conduct for a Partner❶ Human rights and labor

E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ment considering factors such as human rights and labor, safety and health, environmental protection,and ethical management while monitoring potential risks in the supply chain. Our aim is to continually
expand the number of companies assessed for ESG management. Besides, we have revised our contract

for suppliers to enhance the consideration of ESG factors, including environmental and climate change.
We have also included an agreement regarding the supplier's environmental and social responsibility

management policies, emphasizing the significance of ESG management and encouraging the develop-

ment of the supplier's capabilities. In the mid to long-term, we plan to establish procedures for rewarding
outstanding partners and providing training for those with higher risks.

igence was conducted on partners with high transaction amounts, and moving forward, we will conduct

ity to manage ESG issues. Therefore, we have established purchasing policies that encompass human

Sustainable Purchasing Policies and the Code of Conduct for a Partner Company

ESG Team

we strive to raise awareness of ESG management throughout the supply chain by assessing ESG manage-

We understand that collaborating with suppliers and partners strengthens our competitiveness and abil-purchasing policy to increase the purchase and the use of eco-friendly products for equipment.

information below.

status. We request improvement measures from companies that do not meet our standards. Moreover,Due Diligence on Supply Chain

the value of the supply chain by making responsible purchasing decisions and promoting sustainability.

products but also ethical standards and social responsibility. Furthermore, we have established a green

site. For more details, please see the contact

We select our partners through a fair and transparent process, using reasonable standards. Each year,

As a global shipping company, we aim to minimize sustainability risks in our supply chain and enhance

Company. Our employees in charge of purchases are required to consider not only the quality and cost of

For additional information, please visit our web

042

APPENDICES

A. 	Compliance with working
hours
B. Wages and benefits
C.	Prohibition of hiring children and management ofyouth workers
D. No discrimination
E. Prohibition of forced labor
F. Freedom of association and theright to collective bargaining❷ Safety and healthA. Occupational safety
B.	Prevention of occupational
accidents and diseases❸ Environmental protection
A.	Prevention of environmental pollution
B.	Energy saving andeco-friendly products
C.	Hazardous substances andeco-friendly products❹ Ethical management

A.	Transparent management
and prohibition of unfair
profits
B.	Protection of Intellectual
properties
C.	Protection of personal information

Percentage of companies that signed the revised contract including environmental / social clauses: 100%

In 2022, we performed a pilot due diligence to assess the ESG management of our suppliers. The due dildue diligence on suppliers that have actual or potential negative impacts by improving the supply chain

ESG assessment process. Our plan is to visit the workplaces of major suppliers and conduct interviewson their management status. This will cover various aspects such as human rights and labor, safety andhealth, environmental protection and climate change response strategies, and ethical management. If we
discover any supplier having areas to improve their practices, we will offer feedback and training materials
to support as a follow-up management action.
Supplier ESG Management
Category

No. of pledges to
the Code of
Conduct fora SupplierNo. of CSR reportissuance andimplementation
confirmations

Unit

2020

2021

2022

Cases

73

101

129

Cases

11

22

31

Rate of Suppliers
conducted ESG
Management
Assessment

72.3%

Rate of Suppliers
Conducted SupplierDue Diligence

40.7%

HMM OVERVIEWWE CARRY
THE FUTURE

ESG MANAGEMENT

ESG PERFORMANCEAPPENDICES

SPECIAL ISSUE : : III

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management> SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Shared GrowthAwarded a Plaque of Appreciation as the Best Partner of LG Electronics for 3 Consecutive
Years (2020, 2021, 2022)

LG Electronics has awarded HMM a plaque of appreciation for HMM’s exceptional efforts in promoting winwin cooperation with customers, regarding its support in emergency export shipments in the midst of thechallenging circumstances caused by the COVID-19 pandemic for three consecutive years in 2020, 2021,
and 2022.

Receiving 'Excellence Award' for 'Excellent Case Contest for Win-Win Cooperation between
Sippers and Ship Owners' in 2022, hosted by Korea Ocean Business Corporation (KOBC)
Following the 'Participation Award' in 2021
HMM has been recognized for its contribution to win-win cooperation, particularly for establishing a

new cooperation model that benefits all shippers through the collaboration with exporting companies.

HMM’s efforts were acknowledged with the ‘Excellence Award’ for ‘2022 Excellent Case Contest for WinWin Cooperation between Shippers and Ship Owners’ organized by Korea Ocean Business Corporation(KOBC). This marks the second consecutive year HMM has received an award in this contest, after having
won the 'Participation Award' in 2021.

043

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain> SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

SPECIAL ISSUE : : IV

Human Rights Management
Human Rights Management System

Human Rights Management Principles and Declaration

We uphold fundamental human rights principles, such as the Universal Declaration of Human Rights, UN
Guiding Principles on Business and Human Rights, and labor principles recommended by the Internation-

al Labor Organization (ILO) and ratified by countries. We also comply with human rights-related laws andregulations in the countries where we operate. Our human rights policies and Code of Ethics specificallyprotect and uphold the principle of respecting the human rights of all employees and stakeholders.
Scope of HMM’s Human Rights Management Policies
Partner companies
Customers
Local communities

HMM
Human Rights
Management

Employees
Shareholders
Suppliers

CEO Message on Human Rights Management
HMM will conduct people-centered management that respects human dignity and values. HMM will create a culture that values
human rights not only for its employees but also for all stakeholders related to corporate management. HMM will commit to thefollowing three promises.
First,

we will comply with human rights policies and guidelines.

Third,

we will recognize potential risks related to human rights and establish countermeasures.

Second, 	we will build an infrastructure based on a set of management systems designed to plan, evaluate, and improve
human rights promotion.
HMM will remain committed to complying with our social norms and responsibilities and realizing respect for human rights tobring about a better future.

HMM strictly prohibits all forms of forced labor and human trafficking. We do not require employees to
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

044

APPENDICES

surrender their identification cards, passports, or work permits as a condition of employment, nor do we

demand monetary deposits. Workers have the right to leave their jobs of their own free will and are free tomove around within their work and rest areas. We also have a zero-tolerance policy for child labor and only

hire individuals who meet the minimum age for employment as mandated by local and international laws.
Before signing a contract, we conduct age verification checks to ensure compliance with these regulations.

Detailed Guidelines for Human Rights Policies❶ Working hours
HMM adheres to working hours in compliance with the laws of each country.

❷ Minimum wage
	In compliance with Korea’s Minimum Wage Act, the Seafarers’ Act and the relevant laws of each country, HMM provides compensation equal to or greater than the minimum wage.
❸	Prohibition of child labor
HMM does not employ children and adolescents under the age of 15.

❹	Prohibition of forced labor	HMM acknowledges and respects the Universal Declaration of Human Rights and prohibits employees fromworking against their free will associated with mental and physical restraint, including modern slavery and human trafficking.
❺ Freedom of association
HMM does not penalize workers who form a union, join a union, or engage in union activities.

❻ Prohibition of discrimination and respect for diversity
	HMM treats all employees equally and with respect. HMM prohibits discrimination based on race, skin color, sex,
religion, political opinion, social origin, age, educational attainment, disability or any other basis.
❼ Safety and Health	HMM complies with laws regarding safety and health in the workplaces and applies a range of standards to prevent accidents and ensure a safe work environment.
HMM, Joining UN Global Compact (UNGC)
HMM has become a member of the UN Global Compact in 2023 to improve
its ESG management and practice social responsibility. As a member of the
UNGC, HMM plans to continue to improve ESG management capabilities
by promoting ‘responsible human rights management,’ one of HMM’s
core ESG initiatives. In particular, HMM plans to participate in campaigns
hosted by UNGC and considers active cooperation, with an aim to fundamentally prevent issues of child labor, forced labor, and human trafficking.
HMM’s goal is to be a global shipping company that upholds its commitment to corporate social responsibility while prioritizing ESG management.

*UN Global Compact (UNGC): The world's largest corporate sustainability
initiative launched by the United Nations (UN). An international agreement in which more than 20,000 member companies from 165 countries
around the world join, urging companies to practice social responsibility.

HMM OVERVIEWWE CARRY
THE FUTURE

ESG MANAGEMENT

ESG PERFORMANCE

045

APPENDICES

SPECIAL ISSUE : : IV

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain> SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

Prevention of Human Rights Violations
Human Rights Impact Assessment

Identification of Human Rights Risks and Mitigation Measures

man rights impact assessments. Through the assessments, we eval-human rights risks, however, we did recognize the need for a more robust culture to respect for human rights. Accordingly, we have implemented

To fulfill our responsibility to respect human rights, we conduct huuate the impact on the human rights of stakeholders and respondto any negative incidents that we identify. In 2022, we conducted

the human rights impact assessment for the first time and shared

the results with employees. Going forward, we will make necessary
improvements to address any issues identified.

Questionnaires for Human Rights Impact Assessment❶ Establishment of human rights management system❷ Employment and wage discrimination❹ Forced labor and child labor

Title system

	Improvement of the title system for horizontalorganizational culture⇨ Simplification of the title system from 6 levels to 2 levels

Promotion 	Improvement of a promotion system for fairdevelopment of all employees
systemHuman Rights Violations Remedy Process

Rate of Workplaces Conducted

our implementation.

67%
33%

Annual leave system improvements to enhance
working conditions

Mitigating
humanrights risks

Encourage to use annual leaves and guarantee the right to rest throughthe operation of annual leave system in units of 2 hours⇨ Improvement of annual leave system to be used in increments of
2 hour-unit

Receiving reports

Initial response· Receiving reports
through channels
such as Ethics
Hot Line, fax, ande-mail· Checking the credibility of the Report· Identifying ground
facts

Reportinginvestigation plans· Establishing formal
investigation plans
and reporting it to
the CEO

Conducting
investigation· Investigating on
factual details· Checking relatedparties andorganizational dataand conducting
interviews

Reportinginvestigation results· Reporting the detailed investigation
results to the CEO

Follow-up
for improvement· Taking follow-up
measures according to the results· Taking measures
such as improvement of work
procedures anddisciplinary actions

In 2022, we received a total of five grievances related to human rights through the Ethics Hotline and visits to responsible teams. We identified and in-site. For more details, please see the contact

hmmesg@hmm21.com
http://www.hmm21.com

System improvement to eliminate discriminatory
factors at workforced labor, or human trafficking, to the Ethics Hot Line.

assessments on a regular basis and gradually broaden the scope ofE-mailWeb site

HMM’s System Improvement for Mitigating Human Rights Risks

All employees of HMM around the world can report any human rights violation, such as workplace harassment, discrimination, child labor,

onshore and offshore employees. We will continue to conduct the

ESG Team

thereby maintaining an advanced human rights management system.

Remedy for Human Rights Violations❺ Working conditions

We conducted a first human rights impact assessment in 2022 for

information below.

improvements. We will continue to provide improvement guides and establish risk mitigation measures based on the results of our assessments,⇨ Establishment of fair promotion standards anddeliberation procedures suitable for each position❸ Labor unions and collective bargaining

Human Rights Impact Assessment

For additional information, please visit our web

In 2022, we conducted a human rights impact assessment for both onshore and offshore employees. Fortunately, we did not identify any serious

vestigated the reported cases and took disciplinary actions against the responsible individuals in accordance with the human rights violation remeConductedNotconducted

dy process. To prevent similar incidents from recurrence, we developed educational materials for each case and distributed them to our employees.

HMM OVERVIEWWE CARRY
THE FUTURE

ESG MANAGEMENT

ESG PERFORMANCE

046

APPENDICES

SPECIAL ISSUE : : IV

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain> SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

Human Rights Management Performance
Employee Diversity Management

We value diversity in various aspects, such as gender, nationality, age, and disability. As a global shipping

company, we operate in multiple countries, and thus it is important to us to respect race, nationality, andcultural differences with an open mind. We provide educational programs to expatriates in their hostcountries to promote cross cultural acceptance. Since 2021, we have established and provided a global

leadership training course for new expatriates to promote the development of and harmony with local residents.

Diversity Status at HMM
Category

Onshore employees

Offshore employees

Unit
%

%

(As of Dec. 31, 2022)
2020

2021

2022

34.4

35.5

36.1

1.9

2.3

2.5

51.2

50.8

50.8

16.2

18.2

17.4

37.2

35.9

35.2

36.5

39.5

34.7

%

5.9

6.0

6.1

14

14

14

No. of foreign employees

Person

1,027

1,202

1,039

135

145

132

No. of national veterans

Person22

22

29

Rate of female
employees

Overseas corporations
HOS

Company-wide

Rate of minority groups and vulnerable workers
Rate of female managers / senior managers*
No. of employees with disabilities
No. of elderly employees*

%
%

%
%

PersonPerson* Managers: at the managerial level or higher / Senior managers: executives at the general manager or office head level or higher* Elderly: (Onshore) Age above 55, excluding executives / (Offshore) Age above 60

Human Rights Education for Employees

Every year, we provide sexual harassment prevention, workplace awareness improvement, and workplace bullying prevention education to all employees in Korea.
Status of Human Rights Awareness Education
Education on sexual

Categoryharassment prevention
Education to improvedisability awarenessEducation on workplacebullying prevention

Onshore employees

Offshore employees
Onshore employees

Offshore employees
Onshore employees

Offshore employees

Unit

PersonPersonPerson99%

Offshore
employees

Completed

2021

2022

978

895

948

688

862

959

978

895

948

Person

688

862

959

978

895

948

Person

688

862

959

PersonCompletion Rate for Human Rights Education in 2022

Onshoreemployees

2020

100%

Completed

Overseas
corporations

85%

CompletedIn 2023, we will implement more comprehensive and strengthened human rights and leadership educa-tion to promote a culture of mutual understanding and consideration among those in charge. We will also
foster an attitude of mutual respect and cooperation and cooperative organizational culture among thosein non-executive positions. We have provided human rights education to all 23 of our overseas corporations in 2022. We aim to release two editions of a card newsletter that will focus on human rights in 2023.

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

One will come out in the first half of the year and the other in the second half. The newsletters will cover im-

portant topics such as preventing abuse of power and promoting respect for diversity. To further strengthen human rights sensitivity of our employees from overseas corporations, we will organize education andexchange sessions on this subject matter.

HMM OVERVIEWWE CARRY
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2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management> Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ESG PERFORMANCE

047

APPENDICES

Human Resource Development
Talent Development System
Fair Recruitment

HMM has a fair and systematic recruitment process to find and nurture talented individuals who can become shipping experts in the
future. HMM uses blind recruitment process to ensure no discrim-

ination based on factors such as nationality, race, religion, gender,

age, thereby preventing any unfair practices during the process. In
compliance with applicable laws, HMM has developed a practiceof minimizing the collection of personal information during docu-

ment screening. This includes avoiding the collection of family andphysical information as well as any information that is not relevant

HMM’s Recruitment Process
HMM’s recruitment process consists of 7 steps and covers all expenses associated with direct or indirect recruitment. To prevent childlabor, HMM verifies the age of applicants before hiring.
Recruitment Process (including job-guaranteed internship)
1

2

3

4

5

6

7

Application

Document
screening

Personality andaptitude Test*

1st
interview

2ndinterview

Healthcheck-up

Hiringto individual capabilities in order to eliminate any bias based on an* It includes AI capability test

ensure that personal information has no influence on employment

Improvement in Personnel Management Systemapplicant's background and to reduce unfairness with an aim todecisions. HMM conducts blind interviews in a fair and transparent

manner, making efforts to recruit talents suitable for HMM. In addition, HMM constantly communicates and collaborates with its
employees for the proper and timely recruitment.
Recruitment Information

We have worked with an external consulting agency to improve our personnel management system with the goal of fostering constant innovation, growth, and increased productivity among our employees. As part of this project, we made improvements on our title system and promotion system to ensure fair advancement opportunities for all employees within our horizontal organizational culture. We are taking steps toimprove our practices by incorporating the latest workforce trends and considering the opinions of both executives and employees. Our goal is topromote the growth of both the company and individuals, and to establish a fair and effective personnel system.

Category

Management areas

Recruitment scope

Recruitment
periodHMM

Container
Bulk
Maritime affairs
Management support
IT

Onshore job
Offshore job

Ad-hocShip management
Crew management
Crew education

Onshore job (HOS)
Offshore job (HOS)HOS

For additional information, please visit our web

ESG MANAGEMENT

Talent Development System and Education Program
Talent Development System for Onshore Employees

HMM has designed the Career Development Program (CDP) to manage the career growth of its employees. This program aims to enhance individual competencies and professionalism through various programs. Every year, each employee is required to prepare and submit a careerdevelopment plan, which helps effectively promote their career growths. HMM also maintains a comprehensive record of job performance inAd-hoc

formation for the purpose of talent development. The system that supports career development provides opportunities to systematically shift
positions and develop careers by offering differentiated strategies based on job performance and career goals.

Talent Development System for Offshore Employees

To offer comprehensive training in a step-by-step approach, HMM has organized a structured self-educational matrix to train competent shipping personnel who are accountable for ensuring the safety of ships and cargo, preventing environmental pollution, and safeguarding crew
members.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

048

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
Socialprogram analyzes the required competencies of each organization based on employees’ experience andskills and competencies needed to excel in their roles.

Tailored Talent Development System for HMM Onshore Employees
Position*

Onboarding(CDP) for each group.

Customized Courses Designed for Each Job Category and Level
Legally mandatory training

COP

Life cycle education

E-libraryFemale mentoring lecture

Insight seminar

One-day classSocial book club and book discussion

Biz email Workshop

Level
Duration(days) Captain 1st officer 2nd officer 3rd officer

3

Engine Room Simulator (ERS) training

3
1

Electronic Chart Display Information System (ECDIS TST)

1

IMDG Code

CNTR cargo handling
TK cargo handling
LNGC basic

LNGC cargo handling

Ballast water management
Safety officer

Global Maritime Distress and Safety System (GMDSS)
Safety and health education

On-board organizational culture improvement
Leadership and teamwork

Leadership and management skills

Training courses
Cultivation of new 3rd engineer

1

CNTR practical operation

Career Development Curriculum for Engineers

31

Bridge Team Management (BTM) for operation safety

Electronic Chart Display Information System (ECDIS Generic)hmmesg@hmm21.com
http://www.hmm21.com

Global PT Workshop(24K CNTR, VLCC, BULK, etc.)

E-mailWeb site

Education by each teamTraining courses

Ship handling simulation training by ship type

ESG Team

onboardPre-course for expatriates Global
ing training

Career Development Curriculum for Officers

Ship Handling Simulator (SHS) training

information below.

categorizes the curriculum into Biz School for all occupational groups, Sales School for sales groups, andStrategy School for non-sales groups. Additionally, we offer a learning roadmap for career development

GeneralTalent Development System for Offshore Employees at the HOS Training Center

Duties of candidates for promotion by levelsite. For more details, please see the contact

SocialSince 2020, we have provided personalized training courses through our 'Learning Curation' program. The

Learning
Curation

5
2
2
2
3
3
5
2
2
2
1
2
3
3

Duties of candidates for promotion by level
Electronic engine (ME/RT-Flex)

Refrigerated container maintenanceLarge engine open maintenance
Ship electrical practiceControl system

Maintenance techniqueHigh voltage operation
High voltage duty

Ballast water management
Safety Officer

Response to IMO environmental regulations
LNGC basic

LNGC steam plant

Safety and health education

On-board organizational culture improvement
Leadership and teamwork

Leadership and management skills

Level
Duration(days) Chief engineer 1st engineer 2nd engineer 3rd engineer
33
3
3
1
3
2
3
2
2
1
3
2
2
2
3
3
1
2
3
3

Biz School

˙Education for all job groups on communication, and profit andloss mindset by level of difficulty

Sales School

˙Education for sales positions

˙Programs related to sales and customer services (CS)Strategy School* In 2023, the education system will be revised due to the changes in the title system

Cultivation of new 3rd officer

For additional information, please visit our web

JuniorO.J.T

BridgeGlobal

E-Learning AccountStepupRetention
training

Staff

New
Team
team leader
leader leadership

Maritime practical education

Manager

Assistantmanager

New Executive
execu- leadershiptive

Learning curation

Deputy generalmanagerWork skills

Support with ‘certificate acquisition support
program’, Support in marine and finance skills

Generalmanager

Level

Support with language training throughphone and TOEIC test

Executive

Mentoring

APPENDICES

seas corporation employees. HMM’s training courses are designed to help the employees develop theNew
employee

Governance

HMM Learning Curation

HMM has a step-by-step talent training system that is tailored to the needs of onshore, offshore, and over-

Experienced employee

SPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management> Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Talent Development System

˙Education for non-sales positions

˙Planning and management strategies
˙Finance-related education

Learning Curation Performance

Biz School

Sales School

Strategy School

Total

Category

Unit

2020

2021

2022

2020

2021

2022

2020

2021

2022

2020

2021

2022

No. of operation

Program

16

19

17

8

8

4

7

10

5

31

37

26

257

254

276

75

81

57

111

104

51

443

439

384

Score

4.55

4.51

4.54

4.45

4.45

4.57

4.42

4.11

4.70

4.49

4.41

4.60

91

90

91

89

89

91

88

82

94

90

88

92

No. of participants
Average satisfactory
scores

PersonOut of 100 points

Expansion of Leadership Training by Position

Our leadership training is customized to the specific competencies needed for each position. In 2022, in
addition to regular training for executives and team leaders, we expanded leadership skill training to therole of middle managers for deputy general managers and general managers. On top of that, we provided

training for first-year assistant managers and managers to ensure they had the right attitudes and skills fortheir new titles. We plan to reorganize the leadership training system in 2023 to align with the updated title
system.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

049

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management> Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

Enhance Key Talents Management in Overseas Corporations

To ensure our company's sustainable growth and progress, we are enhancing our key talents management among local hires in overseas corporations which account for the majority of our sales. We haveinitiated a pilot training program for exceptional employees in each corporation, and we plan to establish

a comprehensive management and compensation system for them. As we move forward, we will strive toenhance the capabilities of overseas corporations by fostering stronger loyalty among our key employees
and improving overall business performance.

HMM’s Capacity Building Programs and Expected Effects
Capacity Building Programs

Expected Effects❶ Work rotation program❶ Improving job competency❷ Location exchange program❷ Increasing loyalty❸Outsourced training❸ Raising understanding of headquarters❹ Headquarters visit program❹ Strengthening collaboration capabilities❺ On-the-job training (visiting ships and terminal depots)❺ Enhancing leadership❻ Integrated training for headquarters and overseas employees❻ Providing motivation

Running the HOS Training Center

The HOS Training Center, a representative training institute in the shipping industry, promotes safe ship

operations by offering various practical training services to marine personnel through continued sup-Training Completion Rate of Offshore Employees
Category

Unit

Basic training

Competency improvement training
Legally mandatory training

2020

2021

2022

Person

1,534

1,804

2,669

351

642

1,113

Person

289

524

587

PersonLearning Roadmap and M-PEC

We actively support the professional capacity building of our employees. We launched the Maritime Prac-tical Education Certification (M-PEC) in 2021 to provide a clear learning roadmap for each job and certify
employees who have completed specific training. To date, 22 have earned this certification in 2021, 23 in
2022, totaling 45 employees. Our learning roadmap will be updated annually to include new development
courses, and we aim to increase the number of certification holders.

Expansion of Certification Acquisition Support Program

In 2021, we created the 'Certification Seekers’ Group*' program to help our employees become shipping
experts with advanced certifications in logistics management and international trading. In 2022, we ex-panded our support to include accounting and finance, enabling us to offer additional help in acquiring
accounting management level 1 and 2 as well as financial manager qualifications. Over the course of one
year, 107 individuals took part in the study, and 12 of them received relevant qualifications.
* Certificate acquisition support program, meaning ‘people preparing for certificates’

Supporting Certification Acquisitions

port and investment. The program is designed to support officers and engineers to develop their careers

Supportareas

through courses on jobs, improvements, specialization by ship type, and common competency.
Career Development Program for Offshore Employees
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Career Development
for Offshore
Technicians

OfficerEngineer

˙Job training

˙Education for improvement
˙Job training

˙Education for improvement

˙Specialized training for each ship type

Shipping/logistics

Accounting/finance˙Specialized training for each ship type

Advanced certifications inlogistics management andinternational trading

Accounting managementlevel 1 and 2, financial
manager qualification

˙Common competency training

˙Common competency training

Support with e-learning programs
related to certifications

Subsidizing Test fees upon acquisition

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

050

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management> Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

Performance Results of Employee Education

Global On-barding Training

We train junior employees on maritime affairs and logistics system to help them grow into shipping professionals. The employees are provided preliminary training regarding ship structure and safety precautions
at the HOS Training Center before boarding by ensuring safe and systematic education. The total numberof employees trained between 2017 and 2020 amounted to 89. The training will resume after the termination of the COVID-19 pandemic.

Global On-boarding Training Programs
GlobalOn-board
Training

Preliminary Training

On-board Training

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

rights training (sexual harassment prevention, disability awareness improvement, and workplace bullying prevention).
HMM’s Employee Education Performance Results

Total educational hours of overseas corporations

・ Ship structure and features

Total educational hours provided by HOS

˙Training on navigation and shipping (Busan-Shanghai route)・Shanghai Logistics System Tour

Education Satisfaction

Unit

Hours

Hours

Hours

Hours

2020

2021

2022

50,18055,62464,901

32,20342,70761,609115,534

18,13012,506

2,946

3,564

3,984

To constantly refine our education content and the way we train our employees, we ask the employees tosurvey their satisfaction level of the course after the completion. We pay attention to their feedback andopinions in regard of the content of curriculums, the applicability of content in their jobs, the expertise ofTraining for Expatriates

Having a broad network of overseas corporations across the globe, we dispatch expatriates to manage thecorporations abroad. They could take on various roles such as container business sales, operations, bulk
business operations, or management. In order to assist their smooth adaptation to new surroundings andtasks, we provide them with customized curriculums according to their roles and regions where they work.

instructors, and the way of operating courses so that we can offer better education.

Compensation and Reward

Performance Evaluation and Compensation Policy

We evaluate our employees’ performance twice a year to encourage them to improve their performance as well as to raise

the objectivity of the evaluations. We operate the objection system to ensure that the evaluation results are confirmed
through sufficient feedback during the evaluation process. We also operate a 360- degree assessment system for man-

Job Training Programs

OthersMandatory training courses(global mindset and attitude,
ethical management, etc.)

IT systems (Compass* training)
1:1 local language course(Chinese / Russian / Japanese)

Job training with task-related teams
Overseas corporation and workforce
management, global leadership, etc.

and requirements, such as onboarding training, leadership training, job training, global training, or ethics and human

Total educational hours of offshore employees

˙Maritime safety rules

Training Programs for Expatriates

information below.

ESG awareness improvement education. HMM’s employees are entitled to receive educational courses upon their needs

Category

resource management so that they can polish their local employee management skills.

site. For more details, please see the contact

HMM is providing a wide range of educational programs for its employees ranging from upskilling courses to ethical andTotal educational hours of onshore employees

As for new expatriates, we offer global leadership education that guides them through in labor and human

For additional information, please visit our web

Company-wide Employee Education

Understanding foreign cultures

Consultation with former expatriates
and mentoring program* Compass: Cloud-based self-shipping and logistics system developed by HMM

agers so that the coworkers’ opinions concerning their management capabilities are reflected. In addition, we make surefairness in our compensation policy. Taking into account the results of individual performance evaluations and compet-

itiveness of rewards, we provide different rewards. At the same time, we do not discriminate against any employees interms of wage plans on the grounds of gender, nationality, or social status, while monitoring the relevant systems such as
wage payment and compensation to ensure fairness.

HMM Employee Stock Ownership Plan

Aiming to raise a sense of ownership among our employees and build wealth by owning part of the company, we operate
an employee stock ownership plan. All our employees qualify for the plan except for the registered directors of HMM and

HOS. We have been managing the shares that our employees acquired when increasing capital by issuing new stocks in
2010, 2012, 2013, and 2015. As of December 31, 2022, the total employee shares amounted to 202,918.

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development> Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ESG MANAGEMENT

ESG PERFORMANCE

051

APPENDICES

Work-Life Balance
Improve Workplace Culture

Flexible Working and Work-Life Balance

Corporate Culture Change Agent TF, 1st WITHMM, Launched

ing into the organization and improving employee convenience. The staggered hours enable employees

elements into account, such as job position, job group, gender, and family composition, we selected 15 employees

We have been operating a staggered hours system for two reasons; embedding a culture of flexible work-

to select their commuting time, thereby relieving inconvenience of congestion and the risk of COVID-19.
Furthermore, we help our employees, who are juggling between work and childcare, balance themselves
between work and life. In addition, the PC-OFF system is up and running with the aim of abiding by the

52-hour-workweek rules, and at the same time, a system of two hours leave is also being operated to encourage employees to use their annual leave. The staggered hours system has resulted in relieved congestion and overcrowding, which, in turn, has reduced the fatigue of our employees while the PC-OFF system
has reduced excessive overtime working. The endeavors to guarantee the right of employees to take leave
have led to improved work engagement. All these efforts combined have culminated in a more efficientworking culture. We will continue to enhance the way we work to achieve efficiency and raise productivity.

Balance between Work and Family

We run statutory maternity protection systems, such as childbirth leave, childcare leave, and shorter work-

ing hours during pregnancy and childcare, thereby assisting pregnant employees and employees whoare bringing up their children in achieving a work-life balance and improving their work concentration.
Moreover, we established a parental leave replacement system for employees on parental leave so as tominimize workforce gaps and relieve employees of the burden of using their leave.
Provide gifts forchildbirth celebration

Install Breastfeeding rooms

Operate childcare centers

Subsidize the school fees for
employees’ children

Female Mentoring Lecture

As part of our effort to empower female employees, we have begun offering female mentoring lectures delivered by experts. The theme of the lectures has been selected according to the needs of female employees, such as female leadershipor how to balance between work and life. The lectures were followed by Q&A sessions to promote the communication
among employees. In 2022, a total number of 76 female employees participated, and female mentoring lectures will be
continued in 2023 with various topics.

With the aim of giving vitality to our culture, we have launched a ‘Corporate Culture Change Agent TF.’ Taking various
who voluntarily applied for the crew members of the TF. We then held a contest to name the TF and let the employees
select the name. As a result of the contest, the TF has got its name ‘WITHMM (WITH+ HMM)’ which delivers the mean-ing of going together. The TF has been carrying out a variety of activities. One of the achievements that the TF has
made was enhancing systems. For such achievements, the TF paid attention to each employee and made discus-

sions on the way of improvement. On top of that, it has operated ‘networking-type programs’ to build bonds among
employees and held diverse events to provide platforms for employees to communicate one another. In 2023, weplan to recruit additional members for the 2nd WITHMM and carry out a wide range of activities.
‘WITHMM’
Achievements
in 2022

Introduced Quarter Day Leave (two hours leave)
Implemented reverse mentoring
Expanded educational courses on e-Learning account
Provided education for at the team level

Operated networking-type programs
Held various events including family day
invitation events, year-end events, etc.

‘Power of HMM,’ a Campaign for Spreading a Positive Working Culture
The Corporate Culture Change Agent TF has launchedmonthly campaign series, ‘Power of HMM,’ to nurtureand maintain our cultural strengths. The campaign wascomprised of five themes; ‘mutual respect,’ ‘mutual
cooperation,’ ‘respect for diversity,’ ‘work engagement,’and ‘ethics.’ To embed these messages into every corner of the organization, we put up posters and banners
throughout the offices, made and distributed related
products, and held an event for employees to write theirmessages pledging to practice. We then compiled themessages and opened a webpage called ‘White Paper for
Positive Practice Culture’* so that all our employees canaccess these messages and be reminded of what positive
culture is.
*Webpage for Positive Practice Culture: http://www.hmmculture.com

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

052

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development> Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Communication-based Programs

Efforts are being made to boost communication among employees through various communication-ori-

ented programs. The representative example is one-day classes that offer various lectures on liberal artsand culture. Taking advantage of the spaces in our new office building, we provided multiple lectures suchas perfume making, leather crafting, and Christmas wreath making. The Busan Headquarters also offeredlectures on flower arrangement.

In addition, we operated a book discussion program, through which employees are provided books of various themes ranging from management and economy to self-development, and we shared their thoughtson the books each other. In 2023, we plan to introduce a new program utilizing lunch time called ‘Lunch
Lecture’ to offer lectures under extensive themes encompassing liberal arts, arts, and culture.

Managing Employee Satisfaction

We conduct a satisfaction survey every year to improve employees’ satisfaction levels. We gather mutual
evaluation and opinions from various perspectives, such as work cooperation and role satisfaction. We

Governancehave selected key factors from 28 teams that include human resource / labor management, welfare pro-APPENDICES

external cooperation, management improvement, and safety and health. This survey enables us to lookgrams, system infrastructure, planning, investment, finance, business management, legal compliance,
into our fundamental problems and we also hold presentations to share the results of the survey, followedby the establishment of a management system associated with organization performance. In 2022, all our

employees participated in the survey, and we will continue to survey on a regular basis so that we have aculture where we pay attention to the voices of our employees and reflect them in our operations.

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Employee Welfare

MVSAT System and Increased Data Provision for Offshore Employees’ Families

To make a better workplace for offshore employees, we transform our vessels into smart ships to raise
operational efficiency by equipping them with the latest satellite communication equipment and services
based on data communication. The adoption of a small satellite maritime communication system called
Maritime Very Small Aperture Terminal (MVSAT) allowed us to use VoIP, which, in turn, lowered phonebills. It also enabled us to build real-time networks between ships and the headquarters, and ships andships, resulting in a better efficiency of on-board work and navigation management. As part of the welfare
benefits for offshore employees, we have provided some of data communication functions for them freeof charge, and starting from 2022, we have scaled up the amount of data provided (5GB per capita permonth) so that they can contact their families, relatives, and friends.

Welfare Improvement for Offshore Employees

To improve the welfare of seafarers, we have reduced the work period required to qualify for paid
time off from six months to four months as part of our work-life balance policy.

Education for Re-employment

As it has become mandatory to provide assistance for re-employment pursuant in accordance withthe laws, we have furnished re-employment support services upon request among career design,
education on how to get a job, how to start a company, and outplacement services. In partnershipwith external professional agencies, we offer quality education and will continue to help the elderlywith re-employment support services.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

053

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development> Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

Employee Health Management System

When we relocated, we furnished the new office with ergonomically designed office furniture for the pre-vention of employees’ muscular skeletal disease. Starting from July 2022, we have also operated a healthcounseling center aimed at improving the health of employees and preventing diseases. The services

encompass health check-ups by health care managers, including blood pressure measurement and bodycomposition analysis, and health consultation. Medicines and first aid supplies are always available at thecenter. In addition to the operation of the health counseling center, we will reflect the results of the survey

on risk factors for muscular skeletal disease to plan a variety of health improvement programs in 2023 to
make a safer and more pleasant workplace for all our employees.
HMM Health Care Services for Employees

HealthImprovement•	Provide comprehensive
health check-ups for employees and their families•	Conduct a survey onrisk factors for muscularskeletal disease•	Examine the risk levels of
coming down with cardiovascular disease, andsurvey job stress levels
•	Follow-up the results ofhealth check-ups

Work
Environment•	Measure risk factors in
our work environment•	Conduct a survey onrisk factors for muscularskeletal disease•	Manage the stress levelsof onshore / offshore
employees

Group
Accident
Insurance•	Provide group accident
insurance to cover our
employees against cancer
diagnosis, death, or stressdisorder due to injury or
diseaseInfectious Disease Prevention

To prevent infectious diseases, we have been vaccinating all our employees against flu. We also offer speconfirmed cases to stem the contagion. We provide COVID-19 self-test kits at all times so that employees
can check whether they are infected. Additionally, we encourage employees to work from home or use

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Onshore employees

PersonOffshore employees

No. of employees
No. of employees
subject to check-up receiving check-up

Person

897

848

982

982

No. of employees
not receiving
check-up*

Remarks0Compliance with the
Seafarers Act

49* Reason for not receiving check-up: Legal requirements met (once every two years)

Intensify Health Monitoring for Offshore Employees

vention and the Maritime Labor Convention (MLC), we have constantly monitored seafarers, who live an
isolated life on board for a long period of time, and checked their compliance. Furthermore, we are trying

to expand quality mental health care as well as physical care services, and offering mobile (application /Kakao Talk), phone, and face-to-face consultation services.

HMM Employee Health Care Services for Offshore Employees

Onboard medical services

Medical support
Provision of products for noise management
Preventive measures for
Repetitive Strain Injury (RSI)

Stress management

Regular risk assessment
Treatment and management
according to evaluation results

Professional services
Psychological test
CounselingGroup psychology training

Moreover, we provide precise health check-up for offshore employees on vacation while regularly moni-Comprehensive Health Check-up

board, the Marine Medical Research Center guides us through in first aid and drug use by means of video

toring those on board, taking advantage of a marine telemedicine system. In the event of an emergency on

Safety and Health Act, we have stipulated that we provide regular comprehensive health check-ups in theinformation below.

Unit

flexible working hours to protect them against infectious diseases.

In addition to the mandatory health check-up for office workers (biennially) according to the Occupationalsite. For more details, please see the contact

Category

In accordance with the Standards of Training Certification and Watchkeeping for seafarer (STCW) con-cial paid leave to those who get a COVID-19 vaccine, those who are suspected cases, and those who are

For additional information, please visit our web

HMM’s Health Care Services for Employees

employment rules (Article 7, Paragraph 4) and the collective agreement (Article 60), and followed the rules.
Employees aged 35 or above

Subject to annual comprehensive healthcheck-up

Employees under 35

Subject to comprehensive healthcheck-up and general health check-up

Employee's family(1 person)
Every other year

We raised the check-up fee in 2021 and expanded the scope of check-up beneficiaries to cover expatriates

in 2022. We will review the status of diagnosed patients through medical consultations and consider expanding the coverage and raising the fee from multiple angles to provide more health care support.

meetings. In addition, we make sure that more vessels provide onboard medical services to give offshore
employees better access to medical services. On top of that, we put in place automated external defibrillators in ships to ensure that appropriate measures are taken within the golden times when there is an
employee who has a sudden cardiac arrest.
Medical Services on Board
Category

No. of ships providing medical services

Unit

Carriers

2020

2021

2022

9

11

18

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

054

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development> Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICES

Win-win Labor-Management Relations
Labor Union

Senior Employment Expansion

trust. Since the launch of the Onshore Employee Labor Union in September 2016, 86.1% of onshore em-

those who reach the retirement age in the current year, we select commissioned workers following the

HMM is committed to shaping our labor-management relations based on mutual understanding andployees have been the members of the union as of December 2022. 100% of offshore employees havejoined their union.

HMM Labor Union Membership
Category

Onshore employees
Offshore employees

Union Name

National Office Financial Services Labor
Union HMM Branch
HMM Seafarers’ Union

Date of Establishment

No. of Members*

September 2016

784 (as of December 2022)

December 1980

510 (as of December 2022)

site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

labor-management agreement. In addition, we strive to integrate and manage employees in a virtuous
cycle by passing on knowledge and know-hows or providing practical training.

CH8. Ship support workers, contract workers and commissions Article 71 Commissions❶ A person who has reached the retirement age may be commissioned to work after retirement if the company needs it.

❷ Separate standards apply to the treatment (e.g. salary, etc.) and working conditions of those hired on a consignment
basis.

* Criteria for labor union membership (onshore executives, team leaders, corporate leaders, offshore captains, and contract workers
excluded)

Grievance Handling Channels

Pay Close Attention to Employees through Labor-Management Council

ensure that they work in a pleasant environment.

We convene Labor-Management Council meetings every quarter with representatives from both management and employees. During these meetings, we gather employees’ feedback to identify their grievancesand suggestions and respond to their opinions to improve working conditions. The purpose of the Council

We are committed to addressing multiple complaints of our employees in an efficient and swift manner to
HMM’s Efforts to Resolve Employee’s Grievances

is to create a better work environment and improve labor-management relations.
2022 Improvement Cases through the Labor-Management Council

For additional information, please visit our web

We have hired more seniors according to the collective agreement for offshore employees. Among

Provided better
funeral services andrelated support

Expanded thecoverage of groupaccident insurance

Improved onboard
internet connection

OnshoreEmployees

Shortened offshore
employee’s boarding
periodTo make our grievance handling channel more accessible
to employees, we have appointed three members of the Labor-Management Council as grievance handling committee
members, taking into account their positions and gender while
operating a ‘HMM Grievance Counselling Office’ so that we canpay attention to employees’ complaints from multiple angles.
On top of that, we have introduced an Employee Assistant Program (EAP) in partnership with an external agency.

Offshore
Employees

We put in place a ‘Family Counselling Office,’ an organization staffed with two personnel, aimed at assisting offshore
employees in communicating with the management about
their grievances, working conditions or salaries. Furthermore,
offshore employees can receive psychological counselingto relieve their stress and deal with their emotional concerns
through a program called ‘Happy Smile.’ The results of grievance handling are notified within 10 days. We also hold regularinterviews to figure out their difficulties caused by daily work.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

055

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development> Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Grievance Handling Process and Achievements

Once we receive a report of grievance, the Grievance Committee or HMM Grievance Counselling Officeconducts an interview with the reporter and reviews what measures to be taken. Then, the Employee Re-

lations & HRD Team takes into consideration all the details of the report and takes final action. At the company-wide level, every effort has been made to inform employees of this grievance handling system aswell as to spread a culture where employees can freely express their thoughts and opinions. As a result, wereported, fixing them, and taking measures for improvement.
HMM Grievance Handling Process1

information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

3

2

Employees

Grievance Handling
Committee members or
HMM GrievanceCounselling Office

Employee Relations & HRD
Team

Report a grievance(Oral report, e-mail, phone call,messenger, etc.)

Have interviews with
reporters and consider
necessary measures

Take final action after theoverall review of the case

Offshore
employeessite. For more details, please see the contact

HMM Onshore Labor Union Collective Agreement
12

3

Wages, and terms andconditions

Working facilities andenvironments

Welfare facilities

we paid attention to their voices. Going forward, we never relent in quickly responding to the complaints

HMM Grievances Handled

For additional information, please visit our web

The labor unions bargain collectively with the company about the followings, and the outcomes are
stipulated in collective agreements.

see the number of reports on the rise in 2022 and all the issues were answered, which clearly shows that

Governance

APPENDICES

Collective Bargaining Coverage between Company and Labor UnIon

Onshoreemployees
Overseas
corporations

Category

No. of grievances

Grievance response rate
No. of grievances

Grievance response rate
No. of grievances

Grievance response rate

Unit

2020
3

2

15

%

100.0

100.0

100.0

5

1

1

%

100.0

100.0

100.0

14

14

9

100.0

100.0

100.0

Cases
Cases
Cases
%

2021

4

5

6

7

Coverage of the Labor
Union’s activities

Initiation andtermination of collective
agreement

Safety and health, andworkplace accidents

Other issues concerning
collective bargaining

HMM Offshore Labor Union Collective Agreement

2022

1

2

3

Coverage of the Labor
Union’s activities

Wages and severancepayWorking hours, holidays,
and leave

4

5

6

7

Welfare benefits

Occupational safety andhealth, and accident
compensation

Issues concerning collective bargaining

Labor disputes

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance> Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

Customer Satisfaction
Customer Satisfaction Management System
Strategies for Customer Satisfaction Services

Listening to and Handling the Voice of Customer (VOC)

strength of the extensive collection of more than 100 vessels, logistics facilities, various route networks,

in a more efficient manner. Customers can report their grievances through the customer support page on

HMM is committed to providing stable and outstanding services for customers across the globe on theand industry-leading IT systems and highly trained staff. HMM also operates a Voice of Customer (VOC) sys-

tem on its website to listen to the voice of customers and address their complaints, thereby better serving
HMM’s customers.

Seek for sustainablegrowth by offering services
tailored to customers

Economic value creation
Customer satisfaction management

information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

our website, and then our department in charge immediately deals with the case.

On a regular basis, we identify customers’ thoughts and opinions on service quality and systems by business, reflect them in our operations, and share what they expect of us with all employees. We then estabCustomer Management Performance Indicators

Deliver advanced integrated
environmental management andprovide safe logistics services
Eco-friendly logistics solutions, Safe
transportation On-time delivery

Maximize the value of customer
cargo through smart shipping
Digitalization of import and export
business
IT solution development

Customer Response Organization and Process

HMM has served as a strategic logistics partner for domestic and overseas customers, providing one-stop

services by operating a Strategic Customer Management Team that supports stable contracts and smooth

Category

No. of customer grievances received*
Handling rate

Unit

2020

%

127

178

158

100.0

100.0

100.0

Cases

* Based on complaints received via online channel

2021

2022

Activities to Improve Customer Satisfaction
Support for Carbon Footprint Program

shipping operations. HMM grasps customers’ needs first and is always quick in addressing all the issues

HMM operates and manages a system called Supply Chain Carbon Calculator that automatically calcu-

HMM will offer advanced logistics services to a wider range of customers.

portation by ships, trucks, and railroads. The data regarding emissions is available on the website. In 2023,

1

2

Needs received

Needs handled

Online channel, Homepage,
Local sites, etc.

Team concerned of the
Headquarters appointed(open channel)(quick response)lates GHGs generated from the point of departure to the destination of cargo, encompassing in-land transHMM will re-examine the existing system and renew it to make it more accessible to customers. HMM will

Customer Response Process

site. For more details, please see the contact

We operate a Voice of Customer (VOC) monitoring system to listen to and handle customers’ complaints

lish and take measures for the areas of improvement, and the results are reported to the management.

HMM Customer Satisfaction Strategies

that can occur during transportation to better satisfy our customers and earn more trust. Going forward,

For additional information, please visit our web

056

APPENDICES

3

Needs resolved(customer satisfaction)

Immediate response and action,
Collecting feedback and making
improvements

continue to provide customers with more accurate Carbon Footprint information.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

057

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance> Customer Satisfaction
Our Impact on Local Communities
Data Privacy and Information Security

Governance

Guarantee the Cargo Safety for Customers

To prevent accidents, such cargo fires or losses, we established internal procedures with the adoption of

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ers to know in accordance with the Information Protection Act. The disclosure

regarding safe cargo shipping and earned more trust from customers. Our commitment to safe operation

includes ① investments in data protection, ② data protection workforce, ③ data

played a great role in achieving HMM’s first core value of ESG management that is economic value creation

protection certification/evaluation and ④ data protection activity status. To

and customer satisfaction management.

Activities to Make Sure Cargo Safety by Freight
Dangerous cargo

Special cargo

˙Train 500 domestic and overseas dangerous cargo handlers on dangerous substances
˙Establish a database for dangerous substances and a screening system for prohibitedcargo
˙Tighten screening of the shipment of cargo likely to be on fire (lithium-ion battery,carbon, etc.) and implement limited and conditional shipping

˙Develop conformity and safety verification programs for the securing of OOG* & BB*
cargo
˙Check the compliance with international regulations (IMO CSS&CTU*) before cargo
approving˙Observe the Cargo Securing Manual (CSM)

Reinforceinternational
cooperation

information below.

public portal site (isds.kisa.or.kr) to satisfy the rights of customers and stakehold-freight by our ships to customers without any accidents in 2022. As a result, we delivered on our promise

General cargosite. For more details, please see the contact

We disclose the status of data protection in regard of risk management on thea monitoring system to meticulously identify risks by freight in advance, which enabled us to transport

APPENDICES

For additional information, please visit our web

Disclosure of Data Protection

˙Introduce container ship cargo securing programs to all ships

˙Select safe routes and prevent exposure to risks utilizing weather forecast when a bad
weather is expected

˙Frequently inspect cargo securing before and after a bad weather, and replace outdated materials
˙Join the international efforts to prevent maritime cargo losses which are on the risedue to the increasing number of large-scale ships, and establish partnerships
˙Join WSC–TopTier Project & LR Cargo Safety Initiative*
˙Join the Cargo Incident Notification System (CINS)* OOG (Out of Gauge) cargo: It means the cargo that exceeds the allowable weight or size, so should be loaded into special containers, such as Flat
Racks or Open Top containers.
* BB (Break Bulk) cargo: It refers to cargo that is shipped unpackaged, not inside pallets or boxes. It can either be in liquid or powder form.

* IMO CTU Code: The aim of this is to give advice on the safe packing of cargo transport units(container boxes) and the necessary precautions
while the IMO CSS Code provides the guidelines and standards on cargo stowage and securing, and calculation methods used for cargo securing arrangements.
* WSC-TopTier Project & LR Cargo Safety Initiative: It refers to a project driven by the World Shipping Council(WSC), which is aimed at seeking
cooperation among the members to analyze the causes of marine cargo losses and establish the countermeasures.

verify the data released, we have all the disclosed data audited by an inspection

company in data protection in advance to ensure the reliability and transparency
HMM data protection statusof the disclosure. We will continue to invest and work more to create a safer business environment and better serve our customers.

Compliance with the Anti-competition Laws to Enhance Customer Trust

In recent three years, we reached zero violation of the laws related to fair transaction, and zero breachof our internal rules except for the case investigated by the Fair-Trade Commission. There also were nocomplaints from our counterparties concerning the fair transaction breach. We actively responded tothe investigation by the Fair-Trade Commission, and then withdrew* from the Committee of Shipowners
for Asian Liner Service and the Korea Nearsea Freight Conference to provide fairer and more transparent
services to our customers. In addition, we formulated and distributed the guidelines on the contact withcompetitors to all our employees, and the guidelines require us to receive approval before contacting arival company and make a report on the result. In 2022, we opened a compliance portal site that incorpo-

rates the affairs of receiving approval in advance and reporting results into a system. In order to organize,
strengthen and improve the company’s compliance control system in various areas including fair transaction, external advisors were appointed to support complementary work. In 2023, we plan to conduct
training on competition law for all our employees to promote customer satisfaction.
* Membership of the Yellow Sea Liners Committee maintained for the passage between Korea and China

Activities for Data Privacy

We have established a management system in accordance with the Personal Information Protection Act
to protect our employees’ and customers’ data privacy. We are conducting regular inspections and risk as-

sessments on the system. The personal data policy is disclosed on our website, which covers the purposeof personal data collection and use, the status of being offered to third parties and contact information forthe department concerned. We protect the rights of our customers and employees by preparing a person-

al data collection consent form that meets legal requirements, requests for data access, correction anddeletion, suspension of processing and withdrawal.

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction> Our Impact on Local Communities
Data Privacy and Information Security

Governance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

058

APPENDICES

Our Impact on Local Communities
Social Contribution Promotion System

Direction for Social Contribution Activities -We are committed to social contribution, taking our full accountability as a global leader in the shipping

Plogging Campaign (bluehmming)

ment, ▲ Grow with local communities, and ▲ Join the global society. The ocean is our main stage where

paign in 2011 and changed the name into ‘bluehm-

Strategies and Directions for Social Contribution

industry. We are carrying out the activities in three directions, which are ▲ Protect the marine environour business is operated, therefore, all-out efforts are being made to protect the marine environment as aleading player in the maritime business. We are also carrying out projects to fulfill our social responsibilities to coexist with the local community. Additionally, we are planning activities that can be shared withlocal communities not only in Korea but also abroad.

With a focus on local communities and environmental protection, we are carrying out multiple projects
that leverage the nature of our businesses, the shipping and maritime businesses. The External Coopera-tion Office drives and leads company-wide social contribution activities, and also plans activities that can❶ Marine Environment Protection (Environment)

We initiated a non-face-to-face waste plogging camming’ that delivers the meaning of making a green

earth from 2022. The campaign is open to not only
our employees but also all citizens, so approximately
200 people posted their plogging activities on their

Instagram in 2022. We plan to conduct this bluehmming campaign every summer.

be joined by non-employees. Furthermore, we are supporting overseas corporations in voluntarily doing

Waste PET Resource Circulation Project at Incheon Port

our roles for global environmental and social issues.

bottles from ships that call at the Incheon Port and delivered them to a recycling company to make safety

activities for social contribution. We will continue to create social value, constantly asking ourselves about
HMM Social Contribution Strategies

It is an upcycling project that transforms PET bottles used on board into new items. We collected thevests for port workers. This project meant more than simply recycling because it created something new
and realized complete resource circulation.

Goal

Focus on the local communities and environmental
protection as a global leader in the shipping industry
PremiseShipping- and maritime- related contributions that take full advantage of our own businesses

Direction for Social Contribution Activities -❷ Win-win with Local Communities (Social)

Charitable Giving Campaign <HMM X Beautiful Store>

We ran a donation campaign where employees actively participated in by contributing about 200 items.
The proceeds from our own charity bazaar <HMM X Beautiful Store> and separate monetary contributions
were delivered to charity groups. We plan to continue this meaningful product sharing activities at the endof each year.

Environment
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

SocialGlobalMarine environment
protection

Win-win with local
communities

Join the global
society

Constantly deliver marine
environmental protection
activities as a key player inthe maritime industry

Fully discharge our social
responsibility by achieving theshared growth with local
communities

Support social contribution
activities in overseas as well as
in Korea

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

059

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction> Our Impact on Local Communities
Data Privacy and Information Security

Support for Worldwide Children

We have expanded the child support project, which was carried out through 1:1 Sisterhood relationship withoverseas children until 2021, to domestic children. We provide one-to-one patronage for overseas children

whereas domestic project aims to improve the overall parenting environment and protect the rights of children. In 2022, 80 new employees joined our sponsorship program thanks to the expansion of program scope.

Supporting Girls from Low-income Families (with Women's Society)We run the program to support domestic girls from the low-income family with the in-house women’s club called‘Women’s Society.’ We packed 500 boxes of female hygiene items and raised funds. These items were delivered to

Direction for Social Contribution Activities -❸ Join the Global Society (Global)

Transporting International Relief Goods

This is the social contribution activity that leverages our shipping business nature the most. We havealso joined the efforts to share the warmth with people in need around the globe. One of the examples isto deliver relief goods to people suffering from the recent earthquake in Türkiye and provide residential

containers free of charge. We also rendered marine and land shipping services to deliver goods to peo-

ple plagued by wars and poverty in Ukraine, Syria, and Jordan. We will continue to show compassion byreaching out to more areas in 2023 as well.

girls who cannot afford to purchase, and funds will be used for projects that aim to improve their living environment.

Governance

APPENDICES

Making a Contribution to the Cheonghae Unit of the Korean NavyThe Korean Navy’s Cheonghae Unit is a special force dispatched to protect national flag carriers travelling on theroute around waters near the Gulf of Aden of Somalia from the threat of pirates. HMM is the worldwide shipping

company travelling on the European routes, and whenever we pass through this area, we have received much help
from the Cheonghae Unit. As a token of our gratitude for their service, we have made a contribution to them.

Funds for the Restoration of East Coast Areas affected by Wildfire

A catastrophic wildfire occurred in the East Coastal areas in March 2022, which not only shocked Gangwon residents but also the entire population. To help the victims of the fire, we donated KRW 500 million. We will continue to make monetary and goods donations for disaster relief efforts both domestically and internationally.
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Winning a Citation from the Minister of Oceans and Fisheries for our Contribution to theFoundation of ‘Arms of the Ocean’We are honored to have received a citation from the Minister of Oceans and Fisheries for our contribution
to the foundation of ‘Arms of the Ocean’ founded by the Korea Shipowners’ Association. The foundation is
aimed at giving back profits and benefits earned through the shipping business to the public.

Overseas Corporations’ Social Contribution Activities

Our overseas corporations have also joined in activities for social contribution. In Dallas, the United States,
they joined the campaign to help children with heart disease, <Dallas Heart Walk>. Especially in 2022, theheadquarters also made a donation to reach out to more children. In Thailand and Vietnam, the overseas
corporations donated daily necessities to vulnerable people, orphanages, and children protection groups.
We promise that we will continue to give back and deliver volunteer activities in overseas areas where we
operate.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

060

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction> Our Impact on Local Communities
Data Privacy and Information Security

GovernanceSocial Contribution Activities Achievements

We put our best efforts into protecting our marine environment and growing with local communities both at home and abroad in a sustained manner through various activities in 2022, thereby delivering meaningful value.
We aim to continue our efforts by exploring ways to create greater value that takes advantage of our business nature and has a greater impact.
RegionPeriodAlwaysESG Team

Donations for disaster relief athome and abroad49

2500,000,000--

Agreement on social contribution with
Good Neighbors

8,000,000

37

2

80,000--Transportation of international relief
goods to Ukraine

9,625,425

317

2

Non-employees 267, Employees: 50

190,158,990--

Republic of Korea National Red Cross

Transportation of international relief
goods to Jordan

20,988,900

76-

18,004,035--

20,045,000--

25,000,000

25

2Thailand

12,943,08064-

September

The United States

66,625,000130-

October

Vietnam

3,842,952

23

-

June
AugustOctober

E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Total

126 participated, 128 sponsored(80 employees newly joined)

5,350,000

Augustinformation below.

KRW 400,000 X 12 months

Tree planting volunteer activities

Decembersite. For more details, please see the contact-

Remarks-

May

Overseas-

Hours(hours per capita)

126

November

For additional information, please visit our web

4,800,000

No. of participants(Person)

11,145,000

April

APPENDICES

Waste PET resource circulation
project at Incheon Port

Amount (KRW)

Support for children in and outside Korea

March

Domestic

Programs

Mural painting volunteer activities
joined by new hires

Plogging Campaign <bluehmming>

Charitable Giving Campaign<HMM X Beautiful Store>

Contributions for the Cheonghae Unit
Campaign to support girls
from low-income families

896,608,382

Domestic: 630/ Overseas: 217

KRW 5.35 million donated(Employees’ families included)

Funds for the restoration of
East Coast areas affected by wildfire
KRW 8 million donated

216 goods donated by 23 contributors, 53 people purchased,
KRW 365,000 worth of goods sold and other preparation expenses
HUMAN ASIA

KRW 25 million donated, 500 boxes of feminine
hygiene products packed
THB 532,961

USD 50,000 (Employees’ families included)

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities> Data Privacy and Information Security

Governance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

Data Privacy and Information Security
Data Privacy and Information Security Management System
Information Security Policy

HMM complies with international standards and related domestic and overseas laws for data security. HMM

performs diverse security activities across many areas including managerial, physical, and technological sectors,
and personal data. HMM’s data security policy is formulated based on the Personal Information Protection Act

which was the key deciding factor in Korea's appropriateness in regards to the EU GDPR*, the Act on Promotion ofInformation Security Industry, and the Act on Unfair Competition Prevention and Trade Secret Protection. HMM
also analyzes changing trends of laws to renew its policy on a yearly basis and ensure compliance with the laws.
*EU GDPR (General Data Protection Regulation): It refers to a Regulation in EU Law on data protection and privacy in the EU.

Data Privacy Management System
HMM operates the data protection management system in accordance with ISO 27001, an international standard for data security. HMM’s management scope includes managerial, technological,
and physical measures such as internal management planning, access control system operation,
security patch installation, and computer center access control.
PDCA-based Data Protection Management System

Maintain and improve themanagement system

Establish the operation plan ofmanagement system

ACT

PLAN

information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Information security system standard
set by International Organization forStandardization (ISO)Rate of Certified Workplaces
ISO 27001(information security)

Certified organization (expiration date)

CHECK

DO

67%
33%

HMM (Nov. 28, 2024)

CertifiedNotcertified

Activities for Data Privacy and Security
Information Security Risk Management

We have implemented a data privacy and protection management system that regularly evaluates risks.
To ensure our compliance with the relevant laws, we keep up with the changing trends of the laws andminimize legal risks. The technical diagnosis and supplementary measures for major systems are always
in progress according to our master plan. We continuously perform activities to reduce internal risks byconducting regular data security checks on third-parties such as our partners and internal security inspec-tion to those in charge of security system operation and security environment. In response to external
security threats, we deny unauthorized access whether it is intentional or not, and frequently inspect our

infrastructure and websites to identify vulnerable points through the 24/7 operation of a monitoring andcontrol system. On top of that, response procedures of data breach have been formulated in the event ofdata leakage, and a system is also up and running to disseminate the procedures to concerned depart-ments and organizations. Besides, we have established and implemented the plans to manage risks identified through the abovementioned process. Our process of information security risk management system
Realize and operate themanagement system

Information Security Certificates Obtained
site. For more details, please see the contact

ISO 27001 (Information security)

Information and Communications Network Utilization and Information Protection, the Act on the Promotion of

Monitor and overhaul the
management system

For additional information, please visit our web

061

APPENDICESIn 2018, we obtained the ISO 27001 certification, which is widely recognized in the information security sector
and enacted by the International Organization for Standardization(ISO) and the International ElectrotechnicalCommission(IEC). Since then, we have maintained the certificate through various activities regarding informa-tion security. We will take our information security management system up a notch to ramp up our internal control and security, and this will enable us to respond more efficiently to security threats and protect our assets.

is verified by a third-party organization, such as the ISO 27001 inspection, once a year.

Activities for Data Privacy

We have developed a privacy policy for services that require the collection of personal data. This policy isavailable on both internal and external websites. We ensure that we collect data only after receiving con-sent to data collection in accordance with the policy. We separate customer data that has not been used
for more than a year and keep it for a certain period of time in accordance with the laws and regulations. All
our employees and those who handles with personal data have signed a pledge to protect the company’s

significant trade secrets and personal data. The departments responsible for data privacy conduct an inspection and technological evaluation of the system once a year.

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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialSPECIAL ISSUE Ⅱ:
Safety and Health Management
SPECIAL ISSUE Ⅲ:
Reinforce ESG Partnership in
the Supply Chain
SPECIAL ISSUE Ⅳ:
Human Rights Management
Human Resource Development
Work-Life Balance
Customer Satisfaction
Our Impact on Local Communities> Data Privacy and Information Security

Governance

APPENDICESKey Activities for Information Security

We inspect our information security system at all times in order to manage risks and figure out technolog-

ically vulnerabilities. We also perform information security inspection activities for third parties such as
partners every year. To receive reports in regard of their concerns for information security in the interests ofstakeholders, we run a website for ethical management as well.
Key Activities and Details for Data Privacy and Protection
Key Activities

Data privacy policy management
Response to data breach

Vulnerable area diagnosis and measures taken
Risk management

Details

Revised the policy to keep pace with the changes in both external and internal
environments and established procedures
Responded to malicious code attacks and prevented data leaks

Assessed the infrastructure in accordance with certification standards andtook necessary actions
Established and executed plans for the risks identified

Training on Information Security

In accordance with the Act on Promotion of Information and Communication Network Utilization and Information
Protection and the Act on Personal Information Protection, we train our employees on data privacy and protection

once a year and create content tailored to our office environment to provide more efficient training. In order tomake our environment safer, we operate anti-virus programs, prevent ransomware attacks, and run a network
protection system. We also issue monthly ‘Security Newsletter’ that delivers recent trends and data protection

principles, thereby raising awareness of data protection among our employees. There were no fines incurred bypersonal data leakage and the violations of data protection-related laws. Going forward, we will constantly operate
our data protection management system to better satisfy our employees and customers with enhanced services.

Security Newsletter in December 2022

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Training on Data Privacy
Category

Training on (personal) data privacy

Data Leakages

Category

No. of data leaks

No. of customers’ data leaks

Fines incurred due to the breachof data leak-related laws

Unit

2021

2022

Times

Not provided

1

Unit

2021

2022

0

0

Cases

0

0

0

0

Cases
KRW

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063

APPENDICES

Governance

ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialGovernance

APPENDICES

Issue Importance

A company with sound corporate governance motivates its members to work towards the company's growth, lead-ing to better corporate performance and increased value. To achieve this, it is crucial to have an independent anddiverse board of directors (BOD). As the highest decision-making body, the BOD should be composed in a way thatallows for effective decision-making while ensuring the protection of stakeholders' rights and interests and super-vising management. It is vital for companies to acknowledge the significance of ethical management as a means ofenhancing corporate competitiveness, and it should become the fundamental philosophy of ESG management.

HMM Approach

To promote the independence of the BOD, HMM maintains a majority of outside directors among all board members.
In addition, the BOD operates various committees to ensure sound decision-making, improve operational efficiency,

and maintain mutual checks and balances between members. HMM has established a comprehensive ethical management system that encompasses the Charter of Ethics, Code of Ethics, Guidelines for Employees, and Anti-Corrup-

tion and Bribery Policy. The Ethical Management Committee ensures that ethical standards are met throughout theentire company.

Total number of Board meetings held

Completion rate of training on
ethics and anti-corruption

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

13

No. of committees within the BOD

times

96.1

Percentage of workplaces obtained
the anti-corruption certification(Trace)%100

Percentage of workplaces
conducted ethics andanti-corruption risk assessment

4
100

%

064
068

%

071
073

SPECIAL ISSUE V: Ethical Management
Transparent and Sound GovernanceRisk Management
Compliance

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Environment
SocialGovernance> SPECIAL ISSUE V: Ethical Management

Transparent and Sound GovernanceRisk Management
Compliance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

SPECIAL ISSUE : : Ⅴ

Ethical Management
Ethical Management System
Ethical Management Policies

Organizations for Ethical Management

Bribery Policy. Our Code of Ethics is regularly updated to comply with the global trends, both in Korea and overseas. Through this, we support

ment Committee meetings at least once a year to check ethical manage-

We follow a strict ethical management system based on the Charter of Ethics, Code of Ethics, Guidelines for Employees and Anti-Corruption andemployees to make ethical decisions by providing them with clear standards for ethical judgment and behavior. In recognition of the growing importance of ethical management, the Ethics Management Committee has integrated various policies and guidelines in the second half of 2022,

including the Charter of Ethics, Code of Ethics, Guidelines for Employees, Anti-Corruption and Bribery Policy, and Human Rights Policy, into theCode of Ethics. Furthermore, we have recently updated Code of Ethics, Guidelines for Employees and Human Rights Policy to stay current withthe latest trends. We also made sure the English version of Code of Ethics reflected the changes. This way, employees and stakeholders outside of

Korea can easily access and review the updated Code of Ethics. We also made sure to inform all employees about the revisions. We are planningto expand the scope and the contents of training on ethics and promotion programs.

Charter of Ethics❷ Code of Ethics❹ Anti-Corruption andBribery Policy❺ Human Rights Policy

Basic regulations that present
the direction of HMM’s ethicalmanagement principles

Respecting the human rights of
employees and stakeholders
and prevention of human rights
violations

HMM is sailing smoothly all over the world to provide its customers the best intransportation services utilizing HMM’s various vessels. To become a sustainable, first-class global company in the 21st century, HMM is committed to ethical business practices, and fulfilling its responsibilities as a corporate citizen
and contributing to the development of humanity.

site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ment performance and pursue new goals. We also set a goal to acquire theanti-corruption management system certification (ISO 37001) establishedby the International Organization for Standardization(ISO) by 2025 inorder to advance our ethical management system. In addition, we strive

to spread a transparent corporate culture in which employees put ethics

first by enacting and revising the Code of Ethics, implementing ethicalmanagement policies, and operating an Ethics Hot Line. In particular, weCorporate Legal Affairs Team and maintained reporting and processing❶ Charter of Ethics

Compliance with domestic
and international anti-corruption laws

With an aim to solidify ethical management, we hold the Ethical Manage-transferred our ethical management role from Corporate Audit Team to

HMM Ethical Management Policies

Ethical management
principles to realize HMM’s management philosophy

For additional information, please visit our web

064

APPENDICES❸ Guidelines for Employees

Specific value judgment standards tobe followed by all employees in HMM(prohibition of accepting valuables, etc.)

under the exclusive authority of Corporate Audit Team, aiming to enhance
our compliance system. The dualization of the ethical management
system will reinforce the transparency and reliability of the company byenabling each team to focus on its own ethical management tasks.

❻ Code of Ethics

The English version of Code of Ethics
for overseas local employees andstakeholders, presenting detailed
judgment standards to be followed by
the employees

Code of Ethics

Article 33. Fulfillment of obligations as a corporate citizen❶HMM contributes to social development through job creation and faithfultax payment by increasing corporate value and generating profits throughcontinuous growth.

❷ HMM’s employees fulfill their social responsibilities as corporate citizens bycomplying with all local laws and regulations both at home and abroad, andby not engaging in unlawful or unjust activities, such as money laundering,corruption, and embezzlement.

❸ HMM’s employees do not accept or give bribes, such as unreasonable moneyor valuables, and avoid any forms of corruption.

EthicalManagement
Committee
Frequency Semi-annually (It can be canceled if there is no special agenda)
Details	Approval of revisions to the Code of Ethics, reporting of ethics
policy performance and reporting results

Remarks	Committee members composed of CEO, Chief Operating Officer, and heads of related headquarters and offices

HMM Ethical Management Committee Meeting
Category

No. of Ethical Management
Committee meetings held

Unit

2020

2021

2022

Times

2

2

1

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APPENDICES

SPECIAL ISSUE : : Ⅴ

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialGovernance> SPECIAL ISSUE V: Ethical Management

Transparent and Sound GovernanceRisk Management
Compliance

APPENDICES

Activities to Enhance Ethical Management
Inspection of Corruption Risks through Internal Audits

Expansion of Programs for Systematic Ethi-

corruption risks and comply with business regulations and procedures. On top of regular audits that com-

All employees of HMM express their will to practice

HMM conducts regular audits of its organizations in and outside of Korea based on business plans to checkprehensively diagnose each organization, HMM is promptly responding to various corruption and unethical risks by conducting themed and special audits according to specific topics and issues.

We have established a corruption risk prevention system to manage corruption risk groups by type within
the organization identified through the regular internal audits. We have sharpened the capability to con-stantly prevent and detect corruption risks by establishing a regular monitoring system for significant risks
that may occur in the course of business through extracting and verifying each specific risk. In addition, achecklist is prepared and distributed monthly after selecting possible corruption risk factors for each busi-

ness area, including sales, operation, and management, so that the headquarters and each overseas corporation can autonomously inspect and control the risk level within the organization. The Corporate Audit
Team checks the results of control activities carried out by each organization based on the corruption risk

checklist. From 2023, the checklist operation method will be further strengthened, such as conducting
sample inspections of control activities.

Ethical risk assessment

100%

Percentage of workplaces
obtained the anti-corruption
certification (TRACE) in 2022

Anti-corruption risk
assessment

100%

ethical management by signing the Pledge of EthicalConduct every year. In 2022, not only employees at

ees at HOS, a subsidiary of HMM, participated in the
Pledge. Onshore employees signed them electron-

ically, and offshore employees signed them in theirhandwriting. In addition, in order to listen to andtake measures on employees’ grievances caused

during work, the annual ethical management awareness survey was expanded to include not only HMM
headquarters but also employees at overseas corporations and headquarters in 2022. We shared specificviolations of certain employees that had been identified with the Corporate Audit Team for taking inap-

propriate actions. We will further expand the scope of ethical management awareness surveys in order tointernalize the culture of ethical management.

Results of the 2022 Ethical Management Awareness Survey: Areas in Need of Improvement

100%

8%

6%

3%

1%

site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

0%Conducted

Not
conducted

0%
Conducted

Not
conducted

0%
CertifiedA pledge, including theprovisions of abiding
by the ethics on thecompany and partnercompanies, participated by all employees of
HMM and HOS

quarters and offshore employees but also employ-4%

For additional information, please visit our web

Ethics Compliance
Pledge

HMM headquarters, overseas corporations/head-

24/7 Monitoring System and Corruption Risk Checklist

Percentage of workplaces
conducted risk assessment
in 2022cal Management

Not
Certified

1%

11%

24%

42%

None

Mutual respect among employees

Contribution to the development of local and global communities
Creation of a transparent and fair-trade culture with stakeholders
Efforts for customer satisfaction / customer data protection

Protection of tangible and intangible company assets, including
operating expenses, office supplies and information
Practice of competition in good faith with competitors
Prohibition of sexual harassment
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APPENDICES

SPECIAL ISSUE : : Ⅴ

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialGovernance> SPECIAL ISSUE V: Ethical Management

Transparent and Sound GovernanceRisk Management
Compliance

APPENDICES

Training on Ethics and Anti-corruption

In order to raise awareness of ethics among our employees, we make all of our employees familiarize

themselves with the Code of Ethics and take an oath every year to practice ethical compliance. We also
distribute Ethical Newsletter to all employees once a month. In 2022, we provided ethical training for 36

newly joined employees while offering customized anti-corruption training to a total of 27 expatriates at
Europe Headquarters as well as Southeast Asia Headquarters, where there are high anti-corruption risks.
In 2023, we will continue to provide training with an expanded format, such as online training.

Onshoreemployees

Offshore
employees

Overseas
corporations

Signing the Pledge of Ethical Conduct and distributing the Ethical
Newsletter. Training on ethics to
be expanded in 2023

Replacing the training with personally making a pledge after
understanding the Code of Ethics
every year

Providing training on anti-corruption compliance for overseas
local employees at HMM Americas
Headquarters and Europe Headquarters

Status of Training on Ethics and Anti-corruption
Category

Company-wide completion rate of training on
ethics and anti-corruption
HMM onshore employees
HMM offshore employees

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Survey Result of Ethical Training and Promotion Activities in 2022

Overseas corporations
HOS

No. of ParticipantsCompletion rate

No. of ParticipantsCompletion rate

No. of ParticipantsCompletion rate

No. of ParticipantsCompletion rate

Unit

2020

2021

2022

%

80.8

97.9

96.1

877

909

960

%

100.0

100.0

100.0

688

862

959

100.0

100.0

100.0

1,421

2,099

1,985

65.4

96.2

92.3

185

171

170

100.0

97.2

98.8

PersonPerson%Person%Person%Result of ethicaltraining awarenesssurveyCompliance portal

Signing the Pledge of
Ethical Conduct
EthicalNewsletter

Not receiving
holiday gifts

36.0 %
91.0 %

87.5 %

89.0 %

Anti-corruption Inspection of Stakeholders

We do not cooperate with companies that have a record of or are suspected of engaging in bribery. We
also require our partner companies to comply with our anti-corruption guidelines if they do not have ananti-bribery and anti-corruption policy. We diligently monitor the activities of our partner companies,
and sign contract that explicitly states that we have the right to termination if the counterpart is found to

be involved in any bribery-related incident. In addition, when the company transacts with public officials
through a third-party agent, we conduct rigorous due diligence in accordance with our Anti-Corruption
and Bribery Policy.

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APPENDICES

SPECIAL ISSUE : : Ⅴ

2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCE

Receiving and Processing Reports

HMM’s Ethical Training and Promotion in 2022

Upon receiving a report, we forward it to the person in charge and initiate fact-checking procedures. We

conduct a thorough investigation of the report details and take follow-up actions such as improving work
processes and imposing disciplinary measures depending on each case.

Environment
SocialGovernance> SPECIAL ISSUE V: Ethical Management

Transparent and Sound GovernanceRisk Management
Compliance

APPENDICES

Ethics Compliance
PledgeTargetAll domestic employees, offshore
employees, local employees atoverseas sites, HOS employees
Document
Code of Ethics, Guidelines forcompetition law compliance,
Guidelines for contacting
competitors
Remarks
Once a year

Campaign to not receive
holiday gifts
MethodPortal banner posting andcompany-wide campaign
notification

Details
Guidance on receiving gifts
from stakeholders such as
partner companies
RemarksMore than twice a year

Ethical managementawareness survey

TargetAll domestic employees,
employees at overseas sites

Details
Survey on awareness of theCode of Ethics and ethics
programs, collection of suggestions from employees
Remarks
Training and promotion toraise awareness of ethics, andplans to expand the scope ofawareness survey

EthicalNewsletter

MethodCompany-wide distribution of
newsletter e-mails and upload
it on the ethical management
websiteDetails
Content to spread a culture of
ethics and compliance
Remarks
Monthly distribution

We are operating an Ethics Hot Line that allows all stakeholders, including employees, partner companies

and customers to report any incident of corruption, bribery, anti-competition, and unethical behavior. In
addition to the Ethics Hot Line, through HMM’s ethical management website (ethics.hmm21.com), which
is open to everyone, reports also can be submitted via mail, e-mail, or fax. We promptly forward the reportto the relevant teams and take appropriate actions. We also ensure strict confidentiality of the informant’s
identity and report contents in compliance with the Code of Ethics.

Receiving
reports

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com· Receiving
reports throughchannels such as
Ethics Hot Line,fax, and e-mailInitial response· Checking thecredibility of theReport· Identifying
ground facts

Reporting investigation plans· Establishingformal investigation plans andreporting it to theCEO

Conducting
investigation· Investigating on
factual details· Checking relatedparties and organizational dataand conducting
interviews

Reporting investigation results· Reporting thedetailed investigation results to
the CEO

We ensure the confidentiality of the reports and safeguard the informants from any adverse consequences. Our Code of Ethics specifies our duty to protect the informants in this regard.

Compliance with Ethical Management Laws
Implementation of the Anti-corruption and Bribery Policy

HMM has established and enforced an Anti-Corruption and Bribery Policy in Korean, English, and Chinesethat complies with the anti-corruption laws of each country. The policy guides all employees to conductbusiness activities in a legal and ethical manner.

Operation of Ethical Management Reporting Channel

Procedure to Make a Report on Ethical Management and Compliance

Informant Protection

Anti-corruption Certification

We strive to enhance business transparency by adhering to the ESG management standards of clients. We
have obtained a CR2 rating* from TRACE, a US non-profit organization that verifies and certifies annually

the adherence of multinational companies to anti-bribery compliance in governance, accounting, finance, media, and international sanctions, for the period from June 2022 to June 2023.

* TRACE rating system: CR1 (not applicable), CR2 (problem discovered(resolved)), CR3 (problem discovered(unsolved)), CR-3S (designation of companies subject to sanctions)

Measures on Anti-corruption Violations
Follow-up for
improvement· Taking follow-up
measuresaccording to theresults· Taking measures such as
improvement ofwork procedures
and disciplinary
actions

When we identify major violations, unfair matters, and breaches of various internal regulations/guidelines, including our Code of Ethics through internal audits, we immediately report to the management

and take disciplinary actions specified to each issue in compliance with the internal audit regulations. We

also take measures to prevent the recurrence of similar cases of non-compliance with laws and company

regulations, including ethical management violations, by reviewing the disciplinary action of the person
involved and improving work procedures. In addition, Corporate Audit Team selects and shares issues thatneed to be circulated/disseminated throughout the company. These includes issues raised during the audit or major violation cases that violated the ethical management practices. This is to prevent corruptive orunethical behaviors in advance and avoid any future repetitive cases.

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SocialGovernance

SPECIAL ISSUE V: Ethical Management> Transparent and Sound GovernanceRisk Management
Compliance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

Transparent and Sound Governance
Board of Directors Composition
Board of Directors Composition and Roles

Committees under the BOD

arching management issues as well as supervising directors and the management in terms of their performance.

for Outside Directors, Risk Management Committee, and Finance and Economy Committee). To ensure

HMM Board of Directors(BOD) serves as the top decision-making body, responsible for making decisions on overThe BOD consists of five directors: two inside directors and three outside directors, and diverse aspects are taken

into account including independence, expertise, and diversity when HMM appoints directors. In an effort to makethe BOD more independent, the ratio of outside directors is stipulated to maintain a majority of the total directors.
To prevent conflict of interests, HMM restricts directors from making deals related to the company’s businesswithout prior approval from the BOD and taking on a role in other companies in the same industry. HMM appoints

outside directors with expertise or experience in areas such as management, economics, law, or logistics to ensure
the expertise of the BOD.

HMM BOD Composition
Category

Name

Kyung Bae Kim

GenderMale

InsideDirector· HMM CEO

Roles and Responsibilities· Chairman of the HMM Board of Directors· Chairman of the Committee for Recommending
Candidates for Outside Directors· Chairman of the Finance and Economy Committee

Area ofSpecialty

Geun Woo Suh

Male

Male

· HMM Chief Operating Officer· Member of the Finance and Economy Committee· Member of the Committee for Recommending
Candidates for Outside Directors· Member of the Risk Management Committee· Chair professor, Department of Business Administration,
Dongguk University· Chairman of the Audit Committee· Member of the Committee for Recommending
Candidates for Outside Directors

OutsideDirector

Su Han Woo

Male

OverallManagement

2 years(until the dayof the regularshareholders’meeting in 2024)

Finance2 years(until the dayof the regularshareholders’meeting in 2025)

Logistics

2 years(until the dayof the regularshareholders’meeting in 2024)

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com· Member of the Committee for Recommending
Candidates for Outside Directors

Legal affairs

2 years(until the dayof the regularshareholders’meeting in 2024)· Member of the Risk Management Committee

For additional information, please visit our web
information below.

· Member of the Audit Committee

Woo Young JungMale

· Attorney at Law Firm Lee & Ko

· Member of the Audit Committee· Member of the Committee for Recommending Candidates for Outside Directors· Member of the Risk Management Committee

TenureOverallManagement· Member of the Risk Management Committee· Professor, Department of International Logistics, Collegeof Business and Economics, Chung-Ang University(As of March 2023)

2 years(until the dayof the regularshareholders’meeting in 2024)· Chairman of the Risk Management Committee

Jin Ki Parksite. For more details, please see the contact

068

APPENDICES

We have four committees under the BOD (Audit Committee, Committee for Recommending Candidates
expertise in terms of decision making as well as better operational efficiency, we empower the BOD bydelegating much authority to outside directors and making the roles and responsibilities of each member
clear so that they hold each other in check and balance. We don’t have a committee in charge of reviewing

and approving internal trades among our subsidiaries. However, as we are designated as a company be-longing to enterprise group subject to limitations on mutual investment by the Fair Trade Commission, we

make sure that there is a prior approval before an internal trade of certain amount, as well as guarantee adisclosure of the transaction in compliance with the Monopoly Regulation and Fair Trade Act.
HMM Committees Under the BOD
Category

Audit Committee
Committee for
Recommending Candidates
for Outside Directors
Risk Management
Committee
Finance and Economy
Committee

Content· Accounting and business audit· 3 outside directors· 10 meetings in 2020, 6 meetings in 2021, and 10 meetings in 2022
· Recommendation of candidates for outside directors· 2 inside directors and 3 outside directors· 1 meeting in 2020, 2 meetings in 2021, and 4 meetings in 2022

· Comprehensive management and control of potential management risks· 2 inside directors and 3 outside directors· 2 meetings in 2020, 2 meetings in 2021, and 2 meetings in 2022
· Delegation of normal board resolutions· 2 inside directors· Zero meetings in 2020, 2021, and 2022

Appointment Process of Outside Directors

When appointing outside directors, the Committee for Recommending Candidates for Outside Directors

recommends the candidates. The final selection is made at the regular shareholders’ meeting. Before
the selection of the candidates, the committee verifies whether they meet the legal requirements in ac-

cordance with the relevant laws and regulations. Information is provided in advance, such as candidates’
date of birth, main career, recent three-year transaction records, and relations with the largest shareholder

two weeks before the shareholders’ meetings pursuant to Clause 1 of Article 363 of the Commercial Act.
Furthermore, data concerning the activities of the Board of Directors including candidates for reappointment are offered to shareholders two weeks before the meetings.

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Environment
SocialGovernance

SPECIAL ISSUE V: Ethical Management> Transparent and Sound GovernanceRisk Management
Compliance

APPENDICES

Board of Directors Operations
Board of Directors Activities

Board of Directors Expertisemany issues regarding the affairs stipulated in the laws or the articles of incorporation, affairs delegated at

candidate pool of unregistered executives to select the most suitable person with the expertise in each

Our BOD convenes quarterly meetings and supplementary meetings when needed. It makes decisions on
the shareholders’ meetings, management policies and critical affairs for work implementation.

In order to ensure efficient BOD operation, we notify directors of convocation one week before the meeting. We also provide the details regarding the issues to be discussed in advance so that outside directors

can review the materials and make informed decisions, thereby fulfill their responsibilities. Furthermore,risk management status is reported monthly to the BOD to review non-financial risks.
HMM BOD Operations

Category

No. of BOD meetings convened

No. of agenda items deliberated

Attendance rate of outside directors

Unit

2021

2022

14

16

13

22

21

23

Cases
%

100.0

100.0

We stipulate that outside directors account for more than half of the total directors. The committees underthe BOD are composed of a sufficient number of outside directors to function independently from the
management and controlling shareholders. Additionally, we limit outside directors from taking on no
more than two roles as outside director or auditor to ensure they can properly fulfill their job as outside
directors of HMM.

Board of Directors

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Audit Committee

Committee for Recommending
Candidates for Outside Directors
Risk Management Committee

Unit

PersonPersonPersonPersonriences in areas including finance and accounting, economics, laws, logistics, and relevant technologies.
By doing so, the BOD is comprised of directors with professionalism in each area including finance, laws,

logistics, and shipping, which results in professional decisions on managerial issues. Moreover, training
organization is also operated to assist outside directors in their job, and outside directors can operate an
Advisory Committee consisting of external independent professionals when needed.
Training for HMM BOD
Item

Training program

Board of Directors Independence

Categoryments, such as the Commercial Act, are selected among those with profound expertise or extensive expe-

97.0** Director Gyu Bok Kim was absent from the meeting in March due to the COVID-19 confirmation

No. of Members of the Committees within the HMM BOD

field as an inside director candidate. In terms of outside directors, the candidates who meet the require-is provided to give them better understanding of HMM’s business and sharpen their expertise. A support

2020

Cases

For the purpose of appointing directors equipped with expertise, HMM has organized an inside director

No. of Inside Directors

No. of Outside Directors

2

3

0

3

2

3

2

3

2020
· Naming ceremony, online
training· Training on internal
accounting control system

2021

2022

· Education on ESG· Training on internal
accounting control system· Impact of the changes
in macro indicators andrequired countermeasures· Training on internal
accounting control system

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

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ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialGovernance

SPECIAL ISSUE V: Ethical Management> Transparent and Sound GovernanceRisk Management
Compliance

APPENDICES

Board of Directors Performance Evaluation and Remuneration

Establishment of HMM Corporate Governance Charter

The remuneration for HMM directors is determined within the remuneration limit approved at the generalrights and benefits of our customers, shareholders, and stakeholders and to ensure fair business opera-

Procedures for Board Evaluation and Remuneration

shareholders’ meeting. Remuneration for inside directors is paid in consideration of their position, expertise,contribution, the nature of their roles and performance outcomes in accordance with the remuneration

standards for inside directors. With respect to outside directors, remuneration is paid in consideration of theirroles and duties as well as other companies’ remuneration levels for outside directors. To secure their inde-

pendence, we do not provide separate bonuses. In accordance with regulations on disclosure on the stock
market, we release the data on our regular reports regarding the remunerations of more than KRW 500 million
provided. We plan to establish a set of standards for BOD performance evaluation in line with our mid- to longterm plan for governance to create a fair and objective evaluation and compensation system for directors.

HMM BOD Remuneration

Category

No. of inside directors

Total amount paid for inside directors

Average amount paid per inside director
No. of Audit Committee members

Total amount paid for Audit committee members

Average amount paid per Audit committee member* Retirement income included

Unit

2020

2021

KRW million

2

2

2

KRW million

865

1,025

1,384*

432

513

692*

KRW million

3

3

3

120

124

182

40

41

61

PersonPersonKRW million

We are committed to promoting communication with shareholders and enhancing actual shareholder
value. As part of the effort, shareholder return was carried out through cash dividends from business year
2021 through 2022, and the amount of dividends were determined based on profits, our investment plan,and the business landscape. We will consider a variety of return policies such as cash dividends to further
enhance shareholder value.

Cash Dividends for the Last 3 years
site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Category

Cash dividends per share

Total amount of dividends
Dividend yield*

Unit

KRW

KRW 100 million%

tions through the establishment of a transparent and sound governance structure, as part of strengthening our ESG management.

HMM Corporate Governance Charter
Category

Shareholders

Board of Directors

2022

Shareholder Return Policy

For additional information, please visit our web

We have established our Corporate Governance Charter in April 2023, which contains the will to protect the2020 Business Year

2021 Business Year-600

2022 Business Year
1,200

-

2,934

5,868

-

2.2

5.5

* Standard share for dividend yield = one-week average closing prices of the share before the dividend record date

Internal audit organization
Stakeholders
Disclosure and data release

Content· Shareholders’ rights and responsibilities, fair treatment· BOD’s functions and operations· BOD’s duties and responsibilities· Roles of outside directors· Roles and responsibilities of Audit Committee and external auditors· Obligations to protect stakeholders’ rights and fulfill social accountability as amember of local communities· On-time disclosure of salient affairs that have a greater impact on decisions ofshareholders and stakeholders

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ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialGovernance

SPECIAL ISSUE V: Ethical Management
Transparent and Sound Governance> Risk Management
Compliance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

071

APPENDICES

Risk Management
Integrated Risk Management System
Risk Management Operation Organization

Regular / Occasional Reporting of Risks

Management team, and each operation team under the BOD to support fast and systematic decision-month to the Risk Management Committee.

HMM has established and operated the Risk Management Committee, Risk Management Council, Risk
making and strengthen the management supervision of the BOD. Through the Risk Management

Committee, which was elevated to the position under the BOD in April 2018, overall risk management

and control are carried out, and the in-house risk management consultative body, which is chaired by

We regularly report the status of risk occurrence once a week to the Risk Management Council, and once a
Status of Non-financial Risks Reported to the Risk Management Committee in 2022
Category

Ship operation accidents

Cases

supervises the company's risks. Without establishing separate committees such as the Environmental

Compliance

Cases

Officer, and Chief Bulk Business Officer, Chief Strategy & Finance Officer, and Head of Legal Affairs Office,International situation

Compliance with the competition Law

and control non-financial risks such as climate change, environment, anti-corruption, and ethicalEnvironmental regulations (Climate change)

the Risk Management Committee and the Risk Management Council, which comprehensively supervise

this, a system has been structured to timely report risks that have a significant impact on the businessenvironment. Especially, the Risk Management Team and each risk operation team prevent the omissionof risks, detect risks in advance, and share relevant issues through cross-monitoring.

site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com· Risk detection and diagnosis· Immediate notification of theissue· Reporting issue notifications

Total

Cases

15
2

Cases

1
29

Integrated Risk Management Procedures

We have established an integrated risk management system to be able to preemptively identify and re-management, and we operate the Risk Management Council and Risk Management Committee to create
an environment in which the management’s decision-making can be reflected effectively.
Integrated Risk Management Process· Temporary committee
meeting (occasional)

Risk Comprehensive
Management TeamCases

tion, we have established an effective communication process based on the manuals for systematic risk

· Regular committee meeting(quarterly)

Risk-related team

Cases

Cyber attacks

as risk items to be managed, we comprehensively oversee the various impacts on the company. In addi-

Risk Management
Committee

Risk Management
Team

1
3

growth of the company. In particular, by combining financial and non-financial risks and designating themComprehensive Risk
Management and Control
Organization under the BOD

Risk OperationTeam

7

spond to uncertainties that arise during the process of business activities for the sustainable and stable

HMM Risk Management Organization and Reporting System
Risk

No. of Reports

Cases

Committee and Ethics Supervision Committee, HMM has an integrated risk management system throughmanagement. HMM also established risk reporting standards and procedures in advance. ThroughFor additional information, please visit our web

Unit

the CEO and composed of the Executive Vice President, Chief Container Business Officer, Chief Maritime

1

Risk Management
CouncilInternal Risk
Management Organization· Regular reporting through the
Risk Dashboard (once a week)· Occasional Reporting (for risks
requiring immediate notification)

Planning

We have established risk management procedures for planning, monitoring, analysis andevaluation, and response for the
integrated and systematic risk
management.

2

Monitoring

Each risk operation team should
establish a monitoring plan inadvance regarding the risk items
to be managed, such as themonitoring cycle, method, andcountermeasures.

3

Analysis and
Evaluation

Risk managers should evaluate
risks according to the evaluation
criteria and immediately implement risk responses according
to the evaluation results.

4

Response

After risk analysis and evaluation,
the risk is notified according to
the response criteria, and the Risk
Management Team convenes
the Risk Council according to thelevel of the risk and supports thedecision-making. As such, HMM
strengthens its risk management
by establishing systematic andstandardized risk management
procedures.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

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ESG MANAGEMENT
ESG PERFORMANCE
Environment
SocialGovernance

SPECIAL ISSUE V: Ethical Management
Transparent and Sound Governance> Risk Management
Compliance

APPENDICES

Risk Management Activities

Systematization of Integrated Risk Classification

We have classified risks into three categories according to their features: prior, regular, and follow-up

management, according to the characteristics of risk management items, and have systematized them for

integrated management. The risks subject to prior management include investment, oil price, terminal
operation, political landscape, and fraud risk. Those belonging to follow-up management include cash

flow, exchange rates, interest rates, share prices, transportation fees, chartered fees, accurate expense
payment, gains and losses, cyberattacks, material leakage, contracts, litigation, abidance by the competition law, compliance, insurance, and the media/public relations. Account receivable management, out-

standing chartered fees, accumulated cargos, ship operation accidents, monetary accidents, and ethicalmanagement and environmental regulations fall under regular management. In 2023, we plan to manage

the ESG-related risks as part of the company-wide risk management system by additionally subdividing
into climate change, human rights, safety and health, and supply chain risk items.
Integrated Risk Classification

Point of
Recognition

Features

Prior

Finance

Follow-up

RegularInvestment

MarketOperation

Legalcompliance

ESG-relatedIntegrated Risk Management System

Establish risk prevention strategies and analyze opportunity factors

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

In association with our business strategies
Stipulate risk management
regulations and manualTrain employees forinternalization

Operate a Dashboard
and risk database(DB)Manual for Risk Management, Internal Training and Improvement Activities

We have defined each stage of the risk management process step by step, documented it to formulate

a manual that guides employees in managing risks, and conducted internal training to share with the
Risk Management Team. To help employees in charge of the manual-based risk management of the Risk
Management Team, we recommend them to receive relevant training by external professional education
agencies more than once a year. In addition, the Risk Management Team is required to review the effi-

ciency and appropriateness of the entire risk management process once every half year, and to report theresults of the review and plans for improvement to the Risk Management Council. The improvement measures are reflected in the risk management regulations and manuals to be implemented.

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Environment
SocialGovernance

SPECIAL ISSUE V: Ethical Management
Transparent and Sound GovernanceRisk Management> Compliance

APPENDICESESG MANAGEMENT

ESG PERFORMANCE

Compliance
Compliance Inspection System

Revision of Guidelines for Compliance with Competition Law

To ensure that all executives and employees comply with the Competition Act (Antitrust Act), we have established guidelines for compliance with the Competition Act, which is revised and updated on a regularbasis. This guideline, based on the Code of Ethics and country-specific legislations applicable to individual
actions of the employees or all those who work for the company, applies equally to the business transactions with all company operations worldwide. It is applied to all business activities of the company without
exception and may result in a disciplinary action in case of violation. We ensure that all employees readthe guidelines for compliance with the Competition Act and sign the declaration of compliance with thecompetition law every year to provide clear guidelines for conducting their work. We also provide regulartraining on compliance with the competition law.

Operation of the Compliance Committee

We conducted an inspection of the compliance system related to the compliance control sector, revised
the compliance control standards and rules for implementation, and established a manual for compliance
control inspection in 2022. Through the revision of the compliance control standards, we have specified
the reasons for convening the Compliance Committee so that the Committee could be practically operated, and also have designated a compliance manager to perform compliance control functions as a member of the Compliance Committee. Additionally, we have informed all executives and employees that thecompliance officer may designate a staff as a compliance officer if necessary.

Compliance Operation Organization

HMM
CEO
Corporate Legal Affairs Team Leader
Assistant Administrator

Head of Human
Resources Office

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

073

APPENDICES

Head of IT Office

2021

2022

· Updated the guidelines for compliancewith the competition law· Prepared and distributed the guidelines
for contacting competitors for all employees and establishment of procedures forreporting when contacting competitors· Established a compliance portal tocomputerize procedure for approval/reporting when contacting competitors· Participated in THE Alliance legal committee activities for all employees· Prepared business combination part
under the competition law in 4 majorcountries (Korea, US, EU, China) throughresearch on the competition law· Trained on the competition law for head
office employees and overseas expatriates (892 people)· Participated in THE Alliance legal committee activities for all employees· Seminar on collusion in the shipping
industry (48 people from relevant teams)· Seminar to understand ESG-related laws(for Public Relations Office, Audit Office,Market Intelligence Team, BusinessSupport Team, Purchasing Team)· Participated in THE Alliance legal committee activities for all employees· Responded to investigations by the Fair
Trade Commission· Responded to investigations by overseas
competition authorities· Responded to competitors’ request
to submit data, such as US, Chile, andColumbia, in a timely manner· Revised compliance control standards
and rules for implementation and established a manual for compliance control
inspection

Internalization of Fair-Trade Culture

HMM joined the Maritime Anti-Corruption Network(MACN*) in September 2019 and has been proactively
participating in the global movement toward anti-corruption in the shipping industry with the member
companies.

ChairmanHead of Management
Improvement Office*MACN(Maritime Anti-Corruption Network): An organization working with major stakeholders such as the government and international organizations to identify and reduce the causes of corruption in the shipping industry. It was established in 2011 to identify the current situation of corruption risks and practices prevalent in the port, and to conduct activities related to education and improvement.

Vice Chairman
Chief of Safety and
HealthCompliance Manager Compliance Manager Compliance Manager Compliance Manager Compliance Manager

Inspection and Implementation of Compliance

2020

Regular Member of the Maritime Anti-Corruption Network(MACN)

Chief Operating Officer
Director of theBusiness Management
Head OfficeCompliance Implementation Status

Head of Legal Affairs
OfficeCompliance Officer

HMM, which runs business around the world, complies with the laws and regulations of each country and recognizes fair and transparent management as the top priority for the development of the company and securing
customer trust. With the compliance standards, HMM responds in advance to legal risks that may arise and regularly reports the operating status of the compliance system and inspection issues to the BOD every year.

Activities for Internalizing Fair Trade

We advise our employees to understand fair trade and undergo the pre-approval and reporting procedures of the Corporate Legal Affairs Team if they inevitably come into contact with competitors or public
officials while performing their work. In 2022, we established a compliance portal to manage the approval process that was previously conducted by e-mail, and through this, promoted the internalization offair-trade culture among employees. We also conducted competition law training for expatriates at theEuropean Headquarters as well as at the Southeast Asia Headquarters where have high risk of fair-tradeviolations. In addition, we distributed the revisions of the Fair Trade Act throughout the company to foster
employees’ awareness through the monthly Ethics newsletter.

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075
077

APPENDICES

091
095
096
098
100
101
102
105
109
111

site. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ESG PERFORMANCEAPPENDICESESG PERFORMANCE

For additional information, please visit our web

ESG MANAGEMENTESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks and Opportunities
SASB Index

UN SDGs (Sustainable Development Goals) Commitment
ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association Memberships
Greenhouse Gas Verification Statements
Third-party Assurance Statement

APPENDICES

074

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Environment

ESG PERFORMANCE

Category

GRI Content Index

GHG emission

TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

KPIs

GHG emissions intensity of fleets

Rate of securing low-carbon ships

Energy consumption

Total amount of energy consumed

Remarks

Reduced by 320,000 tons

Compared to BAU in 2022

Reduced by (all fleets) 48.1%,(container fleets) 64.4%

Compared to emissions in 2008

2.2%

Water resources
consumption

Total amount of service water
consumed

16,919 Tons

Biodiversity

Compliance with ballast water
management regulations

Zero breaches· NOx emissions· SOx emissions· PM emissions

Raw materials,
chemical substances,and waste

For additional information, please visit our web

Total amount of waste collectedLegitimate waste management

ESG Team

Rate of eco-friendly products purchased: raw and subsidiary materials(fuels, lubricants)

information below.

Eco-friendly logistics

Supply chain
ESG management

HMM offices
M&R offices and overseas
corporations included

KPIs

Rate of suppliers signed the Sustainable Procurement Charter / Code of
Conduct for a Partner company
Rate of suppliers signed the contracts
including the provisions ofenvironmental, and labor and humanrights protection
Rate of suppliers conducted ESG
assessment

Employee health andsafetyEmployee career
management andTraining

941Tons

21,568 Tons

Rate of waste oil generated

Category

Human rights
management
enhancement

92,522 Tons
10,206 Tons
6,905 Tons

Total amount of hazardous waste

site. For more details, please see the contact

Based on alternative fuel-propelled(LNG, methanol-fueled ships, etc.)
container fleets

18,315,212 MWh

0.840g/DWT*km

Total amount of non-hazardous wastehmmesg@hmm21.com
http://www.hmm21.com

2022 Performance

Intensity of fuel oil consumed

Air pollution

E-mailWeb site

075

APPENDICES

SocialScope 1 and 2 emissions

APPENDICESESG Data

ESG PERFORMANCEESG KPI & Achievements

ESG MANAGEMENTESG KPI & Achievements

ESG MANAGEMENTDiversity, equity, andinclusion

2022 Performance

Remarks

56.8%

100.0%

72.3%

Rate of suppliers conducted due
diligence

40.7%

Rate of human rights impact
assessment conducted33.3%

Ratio of workplaces conducted
human rights impact assessment
among the total

Lost Time Injury Frequency (LTIF)HMM Offshore 0.83
HMM Onshore 0.43

No. of injuries occurring per
1 million working hours

Lost Time Injury Severity Rate (LTISR)HMM Offshore 3.47
HMM Onshore 3.01

Training hours
Total Training expenses[Female employees]· Ratio of female employees to the total· Ratio of female senior managers* tothe total· Ratio of female directors to the totalboard directors

33.7 hours

No. of workdays lost per
1 million working hours

Average hours of training
provided per employee

KRW 3.98 billion

35.2%
6.1%
0.0%

*Female senior managers: above
division / office head

34.7%

*Elderly: aged 60 or older

20,298 Tons

Ratio of employees in minority andvulnerable groups (disabled,
foreigners, elderly*, and veterans)

Zero breaches

Rate of employee* gender wage gap

24.0%*HMM Onshore + Offshore, rate of
gap in base salary between maleand female employees

Customer healthand safety

1.9%

43.1%

Proportion of Eco-friendly
purchases out of total purchases

Data security

Cargo ship accidents

No. of data security-related accidents
confirmed

Rate of ISO 27001-certified workplaces

290 cases
Zero
33.3%

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Governance

ESG PERFORMANCE

Category

APPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

KPIs

2022 Performance

Ethical and anti-corruption training
completion rate

96.1%

management

No. of business ethics violations
reported through the whistle blowing
process

5 cases

Corruption

No. of corruptions confirmed

Zero

Rate of workplaces conducted ethicalrisk assessment

100.0%

Rate of workplaces conductedanti-corruption risk assessment

100.0%

Ethical management
Operation of ethics
report channel

Ethical risk assessment
Anti-corruption risk
assessment

Remarks

APPENDICES

076

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Economic Performance

ESG PERFORMANCE

Category

APPENDICESESG KPI & Achievements

No. of workplaces

ESG Data

GRI Content Index
TCFD Index

SASB Index

UN SDGs Commitment

Company
information

Awards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Indicators

Unit

2020

Total

Number10

36

29[Government]

Headquarters

Number1

1

1[Local communities]

HOS

Number1

1

1[Suppliers]

Overseas organizations

Number8

34

27

No. of service routes worldwide

NumberOver 60

Over 60

Over 60

Employee wages

NumberOver 100

Over 100

Over 100

Employee welfare expenses

TEU

700~
24,000800~
24,0001,700~
24,000No. of connecting ports

ESG Response to Customers

ESG Policy: Integrated Environmental Policy

077

APPENDICESESG Data

ESG MANAGEMENT

Analysis of Climate Change-related Risks
and Opportunities

ESG PERFORMANCE

worldwide
Products and services

No. of types of vessels owned
TEU capacity
Share of the global TEU capacity

DWT%

710,373

2.9

2021

819,7903.2

2022

816,365

Category

Indicators

HMM

Economic value
creation anddistribution

distribution to(9,918)98,290Social contribution expenses

million

KRW

42

95

897

Purchasing amountmillion

KRW

568,802915,9631,444,645

Wages and welfare expenses

million

KRW

109,298

193,119249,260

million

KRW

94,877

175,142

220,587

million

KRW

14,422

17,97728,673

Dividends and interests

million

KRW(26,715)(32,136)(356,307)

Corporate taxes

million

KRW

399

(259)

105

Social contribution expenses

million

KRW

0

0

0

Purchasing amountmillion

KRW

6,019

10,132

8,661

Wages and welfare expenses

million

KRW

13,407

17,584

19,888million

KRW

11,052

15,246

16,925

million

KRW

2,355

2,338

2,963

million

KRW

N/A

N/A

N/A

[Employees][Suppliers]
HOS[Employees]

Employee wages
Employee welfare expenses[Shareholders and investors]
Dividends and interests

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

2022

3,827

[Local communities]

3.1

2021

million[Government]

stakeholders

2020

KRW

Corporate taxes[Shareholders and investors]

Economic

performance

Unit※ Detailed financial data is available in the business reports on our website (https://www.hmm21.com/ir/disclosure/irDisclosure.do#)HMM OVERVIEW

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ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Environmental Performance
Our Action on Climate Change
Category

GHG Scope 1 emissions

GHG emissions
Scope 1,2

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements

Indicators

Category
GHG emissions
Scope 3

GHG Scope 2 emissions

Subtotal

Stationary combustion
Mobile combustion

Electricity (Purchased power)

GHG Scope 1, 2 emissions

GHG scope 1+2 emissions

GHG Intensity

GHG emission intensity

Indicators
GHG
Scope 3emissions

Upstream
Downstream

Unit

2020

2021

2022

4,863,896

5,462,335

5,347,776

20,792

793

135

tCO2e

4,843,104

5,461,541

5,347,641

48,07551,01733,327tCO2e4,911,971

5,513,352

5,381,102

2.7

2.7

2.7

tCO2e

tCO2e
tCO2e

gCO2eq/ton.kmCategory 3_Fuel-and Energy-Related Activities(Not Included in Scope 1 or Scope 2)

Category 4_Upstream Transportation and Distribution

Category 13_Downstream Leased Assets

Unit

tCO2e
tCO2e

tCO2e

Category

GHG emissions
reduction

Indicators

Unit

2020

2021

2022

tCO2e

N/A

N/A

320,000

All fleets

%

46.7

49.1

48.1

Container fleets

%

60.0

62.8

64.4

%

N/A

N/A

2.2

Total amountMWh

16,788,969

18,751,534

18,315,212

Total amount ofenergy used for ships

MWh16,605,976

18,521,740

18,176,158

Fuel oilMWh15,768,022

17,301,623

17,064,734

Diesel and gas oil for
ships

MWh

837,954

1,220,117

1,111,424

MWh

182,993229,794

139,055

MWh

77,32984,087

69,094

MWh

101,764

107,468

66,924

MWh

1,984

2,860

2,713

MWh

1,916

35,379323

g/DWT*km

0.842

0.843

0.840

Container liners

gCO2/ton·nm

N/A

N/A

17.2

Tankers

gCO2/ton·nm

N/A

N/A

2.0

Bulk liners

gCO2/ton·nm

N/A

N/A

2.4

GHG scope 1 and 2 emissions
reduced

Reduction rate compared to the BAU level

GHG emissions intensity
reduction rate of fleetscompared to the level of 2008

Rate of securing low-carbon ships(Alternative fuel-propelled ships)
Company-wide

2022
729,053

Vessel643,197
148,508
Amountof energy
consumedThird-party Assurance Statement

Energyconsumption

Total amount ofenergy used on land
Amount ofdiesel used

Amount ofpower used

OnshoreAmount ofgasoline used
Amount of
LNG used
Energy efficiency*

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Ship energy
efficiency

EnergyEfficiency
Design Index(EEDI) of newships*Environmental performance records from 2020 to 2021 adjusted due to the change in the calculation of environmental performance data

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

079

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental Policy

Enhance Environmental Management
Category

Environmental
management
systemcertification
Environmental
risk assessment

Environmental
complianceIndicators

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

2022

%

50.0

66.7

66.7

Workplaces
conducting
environmental
risk assessments

Company-wide

Rate of workplaces conductedenvironmental risk assessments

%

50.0

66.7

66.7

Amount of damage incurred byfinancial sanctions (fines, etc.)

KRW
million0

No. of non-financial sanctions(administrative measures, etc.)

Cases

0

No. of cases issued through thecompany-wide environmental
dispute resolution mechanism

Cases

0

Environmental
law violations

Company-wide

Company-wide

HMM
Onshoreinformation below.

2021

Rate of ISO 14001-certified
workplaces

Third-party Assurance Statementsite. For more details, please see the contact

2020

Company-wide

Greenhouse Gas Verification Statements

For additional information, please visit our web

Unit

ISO 14001certified
workplacesAwards, Initiatives and Association
Memberships

Environmental
education

Mitigate Environmental Impacts

Completion ofenvironmental
education

HMM
Offshore

Overseas
corporations

0

0

0

Environmental education
completion rate

%

48.2

Environmental education
completion rate

%

31.7

No. of participants

Person278

Environmental education
completion rate

%

100.0

No. of participants

Person

280

381

Not

Not

46.0

23.3

212

100.0

Environmental education
completion rate%

implemented implemented

No. of participants

Personimplemented implemented

Not

Not

Category

Indicators

Rate of scrubbers
installed(SOx regulations)
Climate action
Alternative
Maritime Power (AMP)

0

0

0

77.9

Air
pollution

Air pollutants
emission*

100.0

459

63.4

1,363

2020

2021

2022

Container liners

%

N/A

67.5

66.2

Bulk liners

%

N/A

21.9

50.0

LA / LB

%

N/A

86.5

90.9

OAK

%

N/A

84.9

94.3

NOx emissions (excluding N2O)

Tons

66,131

82,18392,522

SOx emissions into the air

Tons

7,139

9,068

10,206

PM emissions into the air

Tons

4,957

6,140

6,905

MT CFC-11eq

0

0

0

Amount of service water consumed

Tons

21,03921,66016,919

Offices (including HMM offices
and M&R offices)

Tons

20,17920,88915,762

Overseas corporations

Tons

860

771

1,157

Ozone-depleting substances
emissions**

960

100.0

Unit

Water
resources

Water consumption* The amount of emissions has risen due to an increase in the number of operating vessels** The amount of ozone-depleting substances used only for ships, not company-wide

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

080

APPENDICESWE CARRY
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Category

ESG KPI & Achievements

Wastegeneration*

Indicators

Company-wide

ESG Data

GRI Content Index

Hazardous
waste
generation

TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Nonhazardous
waste
generation

Vessels

Waste collection

Waste disposal

Training on
Hazardous
customer healthsubstanceand safety
management
management

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

18,93922,509Total amount of hazardous waste
generatedTons

13,33018,15021,568Tons

11,66915,956

18,567

1,012

1,346

1,851

Tons

271

357

534

Tons

38

44

57

340

447

558

715

762

899

Tons

138

173

188

Tons

335

472

616

Tons

8

10

14

233

107

81

Tons

34

27

42

34

27

42

Plastic (CAT. A)

Waste generated during
operation (CAT. F)

EcologicalimpactOnshoreOffshore

Ballast water
Environmental leakage
and discharge

Tons

Tons

Total amount of non-hazardous
waste generated

Tons

Domestic waste (CAT. C)

Tons

Food waste (CAT. B)

Waste cooking oil (CAT. D)
Cargo residue (CAT. J)

Onshore2022

14,078

Electric waste (I)

Waste

2021

Tons

Incineration ash (E)SASB Index

2020

Total amount of waste generated

Waste oil (A)Vessels

Unit

Expand Eco-friendly Investment and Collaboration

Total amount of waste generated

Tons

Total amount of waste collected

Tons

11,765

16,322

20,298

1,886

2,070

1,511

Tons

1,426

1,689

1,136

Tons

460

381

374

Hours

23

26

405

138

211

701

Hours

45

64

55

720

1,024

880

100.0

100.0

100.0

%

80.8

77.4

89.9

Cases

0

0

0

0

0

0

Headquarters

Total amount of waste disposed

Total amount of hazardous waste
disposed
Total amount of non-hazardous
waste disposed

Tons

No. of participants

PersonNo. of participants

PersonTraining hours
Training hours

Rate of Ballast water replacements

Rate of ballast water processing
implementations

No. of leaks to the environment
Total amount of leakage

%

m

3

Category

Eco-friendly
investment

Eco-friendly
product purchase

Indicators

Unit

2020

2021

2022

Eco-friendly investments

KRW million

92,031

136,050

547,819

Investments in climate action

KRW million

N/A

N/A

530,717

%

56.1

47.0

43.1

KRW billion

540

915

1,414

KRW billion

303

430

610

Ratio of amount of eco-friendly raw andsubsidiary materials purchased(fuels, lubricants) to the total
Total purchasing amount

Total amount of eco-friendly products
purchased

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

081

APPENDICESWE CARRY
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Social Performance

Safety and Health Management
Category

Company-wide

ESG KPI & Achievements
GRI Content Index
TCFD Index

HMM
Offshore

SASB Index

UN SDGs Commitment

ESG Response to Customers

2021

2022

N/A

0

0

No. of victims

PersonMarine disaster casualties classified as serious disasters

1.10
11
997

0.96
12
1,248

0.73
11
1,513

Person

0

0

0

0.25

0.22

0.17

1.26

1.10

0.83

3.20

2.92

3.47

Cases

11
0
8

12
0
7

11
0
4

Cases

0

0

0

Accident rate

Lost Time Injury Frequency Rate (LTIF)
Lost Time Injury Severity Rate (LTISR)
No. of offshore employee injuries

ESG Policy: Integrated Environmental Policy

No. of offshore fatal accidents
No. of work-related diseases

Awards, Initiatives and Association
Memberships
Third-party Assurance Statement

2020

Lost Time Incident Rate (LTIR)

Analysis of Climate Change-related Risks
and Opportunities

No. of casualties due to work-related diseases
Safety andhealthmanagement

Offshore employee working hours
Off-days due to injuries

Occupationalsafety andhealthAccident rate

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

No. of accidents per
1 million working
hours
No. of days lost per
1 million working
hours
Cases
Cases
Hours
Days
%

PersonLost Time Injury Severity Rate (LTISR)
No. of onshore employee injuries
No. of onshore fatal accidents

information below.

No. of incidents per
200,000 working
hours

Disaster casualties classified asserious disasters

Lost Time Injury Frequency Rate (LTIF)

site. For more details, please see the contact

PersonPersonLost Time Incident Rate (LTIR)

For additional information, please visit our web%

No. of accident victims
Total no. of employees

HMM
Onshore

Unit

Cases

No. of serious accidents
Total no. of employees*

ESG Data

Greenhouse Gas Verification Statements

Indicators

No. of work-related diseases

No. of casualties due to work-related diseases
Onshore employee working hours
Off-days due to injuries

PersonNo. of incidents per
200,000 working
hours

No. of accidents per
1 million working
hours
No. of days lost per
1 million working
hours
Cases
Cases
Cases
Cases

Hours
Days

*Total no. of onboarding crew employees including workers who are not part of our employees

8,736,408 10,943,280 13,266,904
28
32
46
0.34
0.11
0.10
3
1
1
877
909
960
0

0

0

0.19

0.07

0.09

0.95

0.33

0.43

86.41

30.90

3.01

3

1

1

0

0

0

1

0

0

0

0

0

3,147,760

3,074,760

2,326,797

272

95

7

Category

Indicators

Unit

No. of victims

PersonDisaster casualties classified
as serious disasters

PersonAccident rate

Total no. of employees

Lost Time Incident Rate(LTIR)
Overseas
corporations

Lost Time Injury Frequency Rate
(LTIF)
Lost Time Injury Severity Rate
(LTISR)
No. of accidents

No. of fatal accidents

No. of work-related diseases
No. of casualties due towork-related diseases
Safety andhealthmanagement

Working hours

Occupationalsafety andhealth

Off-days due to injuries

Accident rate

No. of accident victims
Total no. of employees

Disaster casualties classified
as serious disasters
Lost Time Incident Rate (LTIR)

HOS

Lost Time Injury Frequency Rate
(LTIF)
Lost Time Injury Severity Rate
(LTISR)
No. of accidents

No. of fatal accidents

No. of work-related diseases
No. of casualties due towork-related diseases
Working hours

Off-days due to injuries

2020

2021

2022

%

0.0

0.0

0.0

Person

0

0

0

2,174

2,182

2,150

0

0

0

0.0

0.0

0.0

No. of incidents per
200,000 working
hours

No. of accidents per
1 million working
hours

0.0

0.0

0.0

No. of days lost per
1 million working
hours

0.0

0.0

0.0

Cases
Cases

0

0

0

Cases

0

0

0

0

0

0

Cases

0

0

0

Hours

4,655,913

4,675,805

5,275,076

%

0

0

0

1.08

0.57

0.58

Person

2

1

1

185

176

172

0

0

0

0.96

0.00

0.00

4.80

0.00

0.00

No. of days lost per
1 million working
hours

954.46920.08306.95

Cases
Cases

2

0

0

Cases

0

0

0

0

0

0

0

0

0

416,990396,704

387,688

398

365

119

Days

PersonPersonNo. of incidents per
200,000 working
hours

No. of accidents per
1 million working
hours

Cases

Hours
Days

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

082

APPENDICESWE CARRY
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Category
Other safety management

ESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities

Indicators

Safety and healthmanagement

Ship safety and health

SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental Policy

Safety and healthmanagement
system certification

Greenhouse Gas Verification Statements

Safety risk
assessment

Awards, Initiatives and Association
Memberships
Third-party Assurance Statement

OHS management
system

ISO 45001-certified workplaces

No. of safety accidents

2020

2021

2022

Cases

32

27

27

Cases

0

1

0

PSC deficiency ratio

Cases

0.8

0.6

0.8

No. of PSC defects

Cases

47

70

101

No. of PSC detentions

Cases

1

2

0

Cases

2

3

4

No. of maritime accidents classified asserious accidents

No. of recommendations for the classmaintenance (regarding damages,
repairs, and investigation requests,
etc.)

Company-wide Rate of ISO 45001-certified workplaces

Employee health
Rate of workplaces conducted employee
and safety risk
Company-wide
health and safety risk assessment
assessment
Organizations
subject to OHS
management
systemUnit

Rate of workers who are not employees
Company-wide but are subject to the occupational safety
and health management system%

Reinforce ESG Partnership in the Supply Chain
Category

Indicators

Total no. of partner companies
HMM

Supply chain
management

Partners
management

%

HOS

25.0

33.3

66.7

25.0

100.0

33.3

100.0

66.7

100.0

information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

HMM supply
chain
assessment

2021

2022

Number

214

216

227

13

12

45

KRW million

568,802915,9631,444,645

KRW million

399,760

579,473

1,179,136

335

339

354

39

47

48

KRW million

6,019

10,1328,661

KRW million

3,613

6,215

6,741

Cases

73

101

129

%

37.0

47.0

56.8

%

100.0

100.0

100.0

Cases

11

22

31

Cases

0

0

0

%

0.0

0.0

0.0

%

0.0

0.0

0.0

No. of CSR report issuance and implementation confirmations

Cases

0

0

0

No. of suppliers conducted ESG assessment

Number

%

N/A

N/A

72.3

N/A

N/A

31

KRW million

N/A

N/A

853,023

%

N/A

N/A

40.7

Number

N/A

N/A

5

KRW million

N/A

N/A

480,243

No. of key partner companies

Total purchase amount from all partnercompanies

Total purchase amount from key partnercompanies

Rate of suppliers signed the Sustainable
Procurement Charter / the Code of Conduct
for a Partner company

Rate of suppliers signed the contracts including the provisions of environmental, andlabor and human rights protection
No. of pledges to the Code of Conduct for aPartner company

Supply chain due
diligence

2020

NumberNo. of CSR report issuance and implementation confirmations

Supply chain
ESG
management

ESG assessment

site. For more details, please see the contact

Total purchase amount from key partnercompanies

No. of pledges to the Code of Conduct for aPartner company

HOS

For additional information, please visit our web

Total purchase amount from all partnercompanies
Total no. of partner companies

HMM%

No. of key partner companies

Unit

NumberRate of suppliers signed the Sustainable
Procurement Charter / the Code of Conduct
for a Partner company

Rate of suppliers signed the contracts including the provisions of environmental, andlabor and human rights protection
Rate of suppliers conducted ESG assessment
Purchase amount from suppliers conducted
ESG assessment

Rate of suppliers conducted supply chain
due diligences

No. of suppliers conducted supply chain due
diligences
Purchase amount from suppliers conductedsupply chain due diligences

Number

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

083

APPENDICESWE CARRY
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Human Rights Management
Category

Human rights
impactassessment

Indicators

Rate of workplaces conducted humanrights impact assessment

Company-wide

Analysis of Climate Change-related Risks
and Opportunities
UN SDGs Commitment

Company-wide

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships
Third-party Assurance Statement

HMM Onshore

Human rights
education

HMM Offshore

Overseas corporations

HOS
HMM

Overseas corporations

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

No. of workplaces with a high riskof child labor

No. of workplaces with a high riskof forced labor

SASB Index

Greenhouse Gas Verification Statements

No. of workplaces where the freedomof association and collective bargainingof employees is judged to be seriously
violated

Human rights
violation
remedyHOS

HMMOverseas corporations
HOS

Human rights education completion rate
No. of participants
Human rights education completion rate
No. of participants
Human rights education completion rate
No. of participants
Human rights education completion rate
No. of participants
Human rights education completion rate
No. of participants

No. of Human rights issues reported

No. of discrimination incidents

Unit

2020

2021

2022

%

N/A

N/A

33.3

Number

N/A

N/A

0

Category

Indicators

2020

2021

2022

Person

3,924

4,129

4,241

No. of male employees

Person

2,466

2,645

2,747

No. of female employees

Person

1,458

1,484

1,494

No. of total employees

Gender

Unit

Number

N/A

N/A

0

Rate of male employees

%

62.8

64.1

64.8

Number

N/A

N/A

0

Rate of female employees

%

37.2

35.9

35.2

%

100.0

100.0

92.3

No. of employees aged under 30

Person

994

1,042

943

Person

1,750

1,933

3,916

No. of employees aged 30 to 50

Person

2,271

2,347

2,512

%

100.0

98.5

98.8

No. of employees aged over 50

Person

659

740

786

Person

877

895

948

Person

1,431

1,632

1,472

%

100.0

100.0

100.0

Person14

14

14

PersonNo. of employees with disabilities

688

862

959

Person

1,202

1,039

nonexecution

No. of foreign employees

1,027

nonexecution

85.4

No. of elderly employees

Person

135

145

132

Person22

2229

Person

221

237

242

Person

12

12

16

0

0

0

%

36.5

39.5

34.7

Ratio of female managers/senior
managers

%

5.9

6.0

6.1

No. of workers not included in theorganization

Person

218

195

328

%

nonexecution

1,837

100.0

100.0

100.0

Person

185

176

172

Cases

2

3

4

0

1

1

0

0

0

0

0

0

0

0

0

0

0

0

Person
%

Cases

Cases

Cases

Cases

Cases

nonexecution

Age

No. of minority and vulnerable
employees
Employeediversity

Employeediversity
statusCompany-wide

No. of employees who are national
veterans

Minoritygroup No. of female managers

No. of female senior managers

No. of employees from other socialPerson
ly vulnerable groups
Ratio of minority and vulnerable
workers to company-wide
employees

Type ofwork

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

084

APPENDICESWE CARRY
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Category

Indicators

No. of total employees

ESG KPI & Achievements

Gender

ESG Data

GRI Content Index
Analysis of Climate Change-related Risks
and Opportunities

HMM
OnshoreSASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental Policy

No. of employees with disabilities
No. of foreign employees

Minority
No. of elderly employees
group
No. of employees who are national
veterans
No. of female managers

Awards, Initiatives and Association
Memberships
Third-party Assurance Statement

No. of female employees

No. of minority and vulnerable
employees

TCFD Index

Greenhouse Gas Verification Statements

No. of male employees

Employeediversity

Type ofwork

Employeediversity
statusGenderNo. of female senior managers

No. of workers not included in theorganization
No. of total employees

No. of male employees

No. of female employees

No. of minority and vulnerable
employees
HMM
Offshore

No. of employees with disabilities
No. of foreign employees

Minority
No. of elderly employees
group
No. of employees who are national
veterans
No. of female managers

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Type ofwork

No. of female senior managers
No. of offshore workers included in HOS

Unit

2020

2021

2022

877

909

960

575

586

613

Person

302

323

347

Person

178

200

189

Person

7

7

7

0

0

0

PersonPersonPersonPerson19

29

4Person19

19

23

Person

133

145

155

Person000Person82

23

19

Person

688

862

959

675

842

935

Person13

20

24

Person

658

810

931

Person

0

0

0

609

774

880

PersonPersonPerson45

32

46

Person224Person221Person000Person

119

150

179

Category

Indicators

No. of total employees

GenderNo. of male employees

No. of female employees

No. of minority and vulnerable
employees
Overseas
corporations(HMM expatriates +overseas local
employees)

No. of employees with disabilities
No. of foreign employees

Minority
No. of elderly employees
group
No. of employees who are national veterans
No. of female managers

Employeediversity

Type ofwork

Employeediversity
statusGenderNo. of female senior managers

No. of workers not included in theorganization
No. of total employees

No. of male employees

No. of female employees

No. of minority and vulnerable
employees

No. of employees with disabilities

HOS

No. of foreign employees

Minority
No. of elderly employees
group
No. of employees who are national veterans
No. of female managers

Type ofwork

No. of female senior managers

No. of workers not included in theorganization

Unit

2020

2021

2022

2,174

2,182

2,150

1,061

1,073

1,057

Person

1,113

1,109

1,093

Person

589

615

342

Person

7

7

7

418

428

158

Person66

78

75

Person001Person869085

Person121216Person

17

22

130

Person

185

176

172

155

144

142

Person30

3230

Person6710Person

0

0

0

0

0

1

Person5

67Person111Person001Person000Person000PersonPersonPersonPersonPerson

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

085

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index

Human Resource Development
CategoryNew
recruitment

TCFD Index

Indicators

Company-wideNewrecruitment
status

HMM Onshore

HMM Offshore
Overseas
corporations
HOS

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

Company-wide

UN SDGs Commitment

2021

2022

393

500

522

66

70

87

Person

83

127

114

No. of new hires

Person

217

279

296

No. of new hires

Person

27

24

25

335

409

449

230

339

374

37

31

75

3.8

3.1

7.3

29

25

66

78.9

80.6

88.0

51

56

71

7.4

11.2

9.6

19

53

64

36.5

94.6

90.1

203

291

268

9.3

13.3

13.6

172

249

238

84.5

85.5

88.8

44

31

35

23.8

17.6

20.3

11

12

6

25.0

38.7

17.1

No. of new hires
No. of new hires

No. of turnover employees

No. of voluntary turnover cases

No. of turnover employees

ESG Response to Customers

ESG Policy: Integrated Environmental Policy

HMM Onshore

Awards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements

Turnover rate

No. of voluntary turnover cases
Voluntary turnover rate

Third-party Assurance Statement

No. of turnover employees

Turnoverrate

Turnover andvoluntary
turnover status

HMM Offshore

Turnover rate

No. of voluntary turnover cases
Voluntary turnover rate

No. of turnover employees

Overseas
corporations

Turnover rate

No. of voluntary turnover cases
Voluntary turnover rate

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

No. of turnover employees
HOS

Unit

2020

No. of new hires

Turnover rate

No. of voluntary turnover cases
Voluntary turnover rate

PersonPersonPersonPersonPerson%Person%Person%Person%Person%Person%Person%Person%Category

Indicators
Company-wide

2020

2021

2022

200,863

120,025

143,000

Hours

51.2

29.1

33.7

KRW million

2,093

2,869

3,976

Hours

50,18055,62464,901

Hours

57.2

61.2

67.6

KRW million

441.0

524.0

661.3

Hours

32,20342,70761,609

Hours

46.8

49.5

64.2

KRW million

1,525.0

2,205.0

3,082.3

Hours

115,534

18,13012,506

Hours

53.1

8.3

5.8

KRW million

82.2

106.3

184.6

Hours

2,946

3,564

3,984

Hours

15.9

20.3

23.2

KRW million

45.0

34.0

48.1

%

100.0

100.0

100.0

Person

3,120

3,986

5,366

Rate of workers with career or skill training

%

100.0

100.0

100.0

Job training completion rate

%

100.0

100.0

100.0

No. of job training participants

Person

946

1,016

997

Job training completion rate

%

100.0

100.0

100.0

2,174

2,970

4,369

Average training hours per employee
Total investments in training
Total Training hours

HMM Onshore

Average training hours per employee
Total investments in training

Total
training
statusTotal Training hours
HMM Offshore

Average training hours per employee
Total investments in training

Overseas
corporations

CareerDevelopment

Education
statusTotal Training hours
Average training hours per employee
Total investments in training
Total Training hours

HOS

Average training hours per employee
Total investments in training
Job training completion rate

Company-wide No. of job training participants
Job
training
status

HMM Onshore

HMM Offshore

Unit

Hours

Total Training hours

No. of job training participants

Person

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

Indicators

Unit

086

APPENDICESWE CARRY
THE FUTURE
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Category

Company-wide

ESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

CareerDevelopment

Employee
performance
evaluation

HMM
Onshore +Offshore

HOS

No. of people subject to performance
evaluation and management
Percentage of people who havereceived regular performance andcareer management interviews

No. of people subject to performance
evaluation and management

Percentage of people who havereceived regular performance andcareer management interviews

No. of people subject to performance
evaluation and management

Percentage of people who havereceived regular performance andcareer management interviews

2020

2021

2022

Person

3,924

4,129

4,241

%

N/A

N/A

100.0

Person

1,565

1,771

1,919

%

100.0

100.0

100.0

Person

185

176

172

%

N/A

N/A

100.0

Category

Indicators

2020

2021

2022

KRW million

58,194

97,413

118,257

Total wage of male employees

KRW million

44,972

77,112

88,575

Total wage of female employees

KRW million

13,222

20,301

29,682

KRW million

66

107

110

Average wage of male employees

KRW million

78

132

123

Average wage of female employees

KRW million

44

63

84

Ratio of women’s total wages to men*

%

44.0

52.2

31.6

Ratio of women’s basic salary to men*

%

35.4

32.6

30.4

KRW million

36,682

77,729102,330

Total wage of male employees

KRW million

36,07375,83399,756

Total wage of female employees

KRW million

609

1,896

2,575

KRW million

64

109

143

Average wage of male employees

KRW million

65

110

144

Average wage of female employees

KRW million

47

95

112

Ratio of women’s total wages to men*

%

27.8

13.5

22.5

Ratio of women’s basic salary to men*

%

25.4

12.9

17.6

Ratio of women’s total wages to men**
HMM
Onshore +Offshore Ratio of women’s basic salary to men**

%

35.9

32.9

27.0

%

30.4

22.7

24.0

Total wage of all employees

HMM
OnshoreEmployeecompensationsite. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Average wage of all employees

Total wage of all employees

Employeeremuneration

HMM
Offshore

For additional information, please visit our web

Unit

Average wage of all employees* Differences in wages due to position, years of service, and other factors are not considered** Average of HMM Onshore and HMM Offshore values

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

087

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Work-Life Balance
Category

Company-wide

ESG KPI & Achievements
ESG Data

HMM
OnshoreGRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental Policy

Maternity
protection
systemUse ofchildcare
leave

HMM
Offshoresite. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Grievance
handlingchanneloperation

HMM
OnshoreGrievance
handling

HMM
Offshore
Overseas
corporations
HOS

Category

Indicators

Unit

2020

2021

2022

KRW million

25,53730,00442,30075

No. of employees on childcare leave

PersonCompany-wide

37

21

22

KRW million

14,422

17,97728,673

Person36

20

20

HMM Onshore +Offshore%

19,98886.0

KRW million

13,030100.0

HMM Onshore

11,572100.0

Person82

5KRW million

2,850

4,947

8,685

Person8

13Overseas
corporations

KRW million

8,766

9,688

10,644

%

100.0

100.0

100.0

HOS

KRW million

2,349

2,338

2,963

Person

138

46

46

HMM Onshore +Offshore

%

71.4

92.1

91.1

%

60.7

88.2

86.1

%

100.0

100.0

100.0

Number4

4

4

Number

4

4

4

%

100.0

100.0

100.0

%

100.0

100.0

100.0

%

100.0

100.0

100.0

%

100.0

100.0

100.0

No. of employees returning fromchildcare leave

Percentage of employees who have worked
12 months after returning from childcare leave
No. of employees returning fromchildcare leave

Percentage of employees who have worked
12 months after returning from childcare leave

No. of people using childcare leave

Company
-wide

2022

70

No. of employees on childcare leave

HOS

2021

186

Percentage of employees who have worked
12 months after returning from childcare leave

Third-party Assurance Statement

2020

PersonNo. of employees returning from childcare
Overseas
leave
corporations

Greenhouse Gas Verification Statements

Unit

No. of employees on childcare leave

No. of employees on childcare leave

Awards, Initiatives and Association
Memberships

For additional information, please visit our web

Indicators

No. of people returned from childcare leave

Percentage of employees who have worked
12 months after returning from childcare leave
No. of grievance handled

Rate of responses to grievances
No. of grievance handled

Rate of responses to grievances
No. of grievance handled

Rate of responses to grievances
No. of grievance handled

Rate of responses to grievances

No. of grievance handled

Rate of responses to grievances

Person

124

43

43

%

98.4

91.9

60.5

Person3

12

Person

1

2

1

%

100.0

46.7

66.7

Cases
%

Cases
%

Cases
%

Cases
%

Cases
%

22

17

25

100.0

100.0

100.0

3

2

15

100.0

100.0

100.0

5

1

1

100.0

100.0

100.0

14

14

9

100.0

100.0

100.0

0

0

0

-

-

-

Welfarebenefits

Welfarebenefitexpenses

Labor union
membershipstatus

HMM Onshore

LaborManagement
Council status

Collective
bargaining
status

Welfare benefit expenses

Labor union membership rate

HMM Offshore
HMM Onshore

Labor union

Collective
bargaining

HMM Offshore

Total welfare benefit expenses

HMM Offshore

HMM

HMM Onshore
HMM Offshore

No. of Labor-Management
Council meetings held
Percentage of workers represented
by the official Labor-Management
Health and Safety Committee
Percentage of workers included in
official collective agreements on
working conditions

Percentage of employees coveredby collective bargaining** If the labor union membership rate exceeds 50%, collective bargaining is applied to non-union members in accordance with the relevant laws,
thereby it is replaced with 100%.

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

088

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Customer Satisfaction
Category

ESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities

Receivingandhandling
VOCs

Company-wide
Receivingcustomercomplaints

UN SDGs Commitment

Awards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Socialcontribution

Overseas
corporations

HOS

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

290

No. of VOCs received

Cases

1,336

2,274

1,427

VOC handling rate

%

100.0

100.0

100.0

Cases

127

178

158

Cases

1,209

2,096

1,269

Cases

0

0

0

Indicators

Operationof social
contribution
programs

2022

265

Our Impact on Local Communities

HMM

2021

332

HMM

Category

2020

Cases

HOS

ESG Response to Customers

Unit

No. of cargo accidents

Overseas
No. of VOCs received
corporations

SASB Index

ESG Policy: Integrated Environmental Policy

Indicators

Data Privacy and Information Security
Category

Indicators

Company-wide

Training on
Information Informasecurity
tion
security

HMM

Data protection and information security
training completion rate
No. of participantsCompletion rate for the training on dataprotection and the prevention of data
privacy violations
No. of participantsCompletion rate for the training on dataprotection and the prevention of data
Overseas
privacy violations
corporations
No. of participants

Unit

2020

2021

2022

No. of social contribution programs

Cases

4

8

12

No. of participants

Person

94

485

630

No. of social contribution programs

Cases

2

3

9

No. of participants

Person

17

29

256

No. of social contribution programs

Cases

4

0

0

No. of participants

Person34

00Information
security
management
systemcertification
Information
security
accident

Information
security
compliance

Unit

2020

2021

2022

%

99.5

99.9

65.8

Person

1,574

678

1,215

%

100.0

Not
implemented

98.2

Person910

implemented

Not

874

%

98.8

99.9

38.6

Person

664

678

341

ISO 27001
certification

Company-wide

Rate of ISO 27001-certified workplaces

%

25.0

33.3

33.3

Confirmation of
information
security
accidents

Company-wide

No. of confirmed information security
accidents

Cases

1

0

0

Amount of damage incurred by financial
sanctions (fines, etc.)

KRW
million

0

0

0

Cases

0

0

0

Cases

0

0

0

Accidents
andviolations
against information
security
laws

Company-wide

No. of non-financial sanctions (administrative measures, etc.)
No. of accidents raised through dispute
resolution mechanisms

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

089

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Governance Performance
Ethical Management
Category

Company-wide

ESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental Policy

HMM
OnshoreTakingEthicalethical andand antianti-corcorruption
ruptiontraining
training
programs

Overseas
corporations

Awards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

HMM
Offshore

HOS

Indicators

Ethical and anti-corruption training
completion rate
No. of participants
Ethical and anti-corruption training
completion rate
No. of participants
Ethical and anti-corruption training
completion rate
No. of participants
Ethical and anti-corruption training
completion rate
No. of participants
Ethical and anti-corruption training
completion rate
No. of participants

Unit

2021

2022

80.8

97.9

96.1

Person

3,171

4,041

4,074

%

100.0

100.0

100.0

Person

877

909

960

%

100.0

100.0

100.0

Person

688

862

959

%

65.4

96.2

92.3

Person

1,421

2,099

1,985

%

100.0

97.2

98.8

Person

185

171

170

Company-wide

Ethical
Ethical risk
risk assessassessment
ment

Company-wide

Rate of workplaces conducted ethical risk
assessment%

AntiAnticorruption corruption
risk assess- risk assessment
ment

Company-wide

Rate of workplaces conducted corruption
risk assessment*%

Company-wide

Rate of workplaces obtained
anti-corruption certification (TRACE)%

EthicalAntimanage- corruption
mentcertificacertification
tion

2020

%

ReportingOperation on ethicalof ethics
issuesmanagethroughment
the internalreportwhischannel
tleblowing
process

No. of business ethics violations reported
through the whistle blowing process

Transparent and Sound Governance

Cases

Category

Indicators

HMM

BOD
composition

2

2021

2022

2

2

2

No. of outside directors

Person

3

3

3

Years

0.0

0.0

0.0

Years

2.4

3.4

2.4

Person62

60

57

Person

8

7

12

%

2.9

1.5

2.9

No. of inside directors

Person3

4

3

No. of outside directors

Person

0

0

0

%

0.0

0.0

0.0

Unit

2020

2021

2022

Cases

14

16

13

Cases

4

4

4

Cases

10

12

9

Cases

22

21

23

0

0

0

96.0

94.0

100.0

100.0

100.0

97.0*

Ratio of female directors to thetotal board directors
No. of inside directors(local shipping agent)*

Overseas
No. of outside directors
corporations (local shipping agent)*

Ratio of female directors to thetotal board directors

HOS

Ratio of female directors to thetotal board directors* The value includes the cases where employees of the headquarters are listed as directors of overseas corporations.

Category
92020

PersonAverage tenure (average tenure of the BOD)
Board ofDirectors(BOD)

Indicators

Total number of board meetings
convened5

No. of regular board meetings
convened

100.0

100.0

100.0

* Based on the internal audit (HMM, HOS) and monthly corruption risk checklists (overseas workplaces)

100.0

100.0

100.0

100.0

100.0

100.0

Unit

No. of inside directors

Board ofDirectors
(BOD)

BOD
operation

HMM

No. of temporary board meetings
convened
No. of agenda items deliberated

Frequency of notifying the BOD regarding
climate-related issues
Average attendance rate of insidedirectors

Average attendance rate of outside
directors

Times/
Biannually%%* Director Gyu-Bok Kim absent from the temporary meeting in March due to COVID-19 confirmation

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

090

APPENDICESWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICES

Category

Indicators

ESG Data

TCFD Index

SASB Index

UN SDGs Commitment

ESG Response to Customers

Awards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Average attendance rate of outside directors
Total number of board meetings convened
No. of regular board meetings convened

ESG Policy: Integrated Environmental Policy

HOS
Board ofDirectors(BOD)

No. of temporary board meetings convened
No. of agenda items deliberated

Frequency of notifying the BOD regarding
climate-related issues

Average attendance rate of inside directors

Average attendance rate of outside directors
Total amount paid for inside directors

HMM

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com*Retirement income included

43

165

187

159

4

4

4

77.1

77.6

72.5

62.5

42.9

80.0

8

10

10

4

4

4

4

6

6

11

15

14

4

4

4

100.0

90.0

100.0

N/A

N/A

N/A

865

1,025

1,384*

433

513

692*

120

124

182

40

41

61

4,302

5,253

4,569

61

78

73

KRW
million

0

0

0

0

0

0

KRW
million

446

748

716

149

214

226

0

0

0

0

0

0

Cases

Times /
Biannually

%
%

Cases
Cases
Cases
Cases

Times /
Biannually

%
%

KRW
million

KRW
millionAverage amount paid per outside director

HOS

33

35

Average amount paid per outside director

Total amount paid for outside directors

Total amount paid for inside directors

information below.

46

38

KRW
millionTotal amount paid for inside directors

site. For more details, please see the contact

39

Cases

Average amount paid per inside director

Average amount paid per inside director
Board
Overseas
remuneracorporations
Total amount paid for outside directors
tion

For additional information, please visit our web

76

Cases

Average attendance rate of inside directors

BOD
operation

2022

81

No. of temporary board meetings convened
Frequency of notifying the BOD regarding
climate-related issues

Analysis of Climate Change-related Risks
and Opportunities

2021

77

Cases

Overseas
No. of agenda items deliberated
corporations

GRI Content Index

2020

Total number of board meetings convened
No. of regular board meetings convened

ESG KPI & Achievements

Unit

Average amount paid per inside director

Total amount paid for outside directors

Average amount paid per outside director

Compliance

KRW
million
KRW
million

KRW
million
KRW
million
KRW
million

KRW
million

KRW
millionCategory

Indicators

2020

2021

2022

0

0

0

Cases

0

0

0

Cases

0

0

0

Total financial losses due to legal proceedings KRW
millionregarding bribery and corruption*

0

0

0

Cases

0

0

3

No. of cases where employees were fired or
disciplined for corruption incidents

Anticorruption, Corruption
fair competi- incidenttionCompany
-wide

Unit

Cases

No. of confirmed corruption incidents

No. of cases where contracts with business
partners were terminated or not renewed
due to corruption-related violations

Total no. of legal actions (including bothcompleted and in progress) for anti-competitive behavior, antitrust, and monopoly
practices***  Disclosure of the total amount of monetary losses incurred during the reporting period as a result of legal proceedings regarding bribery,corruption and other unethical business practices. It includes all judgments and litigation in which the company has been involved, including
courts, supervisory bodies, arbitrators, etc. Loss includes all monetary obligations (regardless of verdict or sentencing) to the other party or others** Total no. of ongoing or completed legal actions against anticompetitive behavior and violations of antitrust laws in which the organization was
involved during the reporting period

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

091

APPENDICESWE CARRY
THE FUTUREGRI Content Index, TCFD Index, SASB Index and UN SDGs Commitment

HMM OVERVIEWGRI Content Index

2022 HMM ESG Report

ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

HMM has reported in accordance with the GRI standards for the period from January 1, 2022 through December 31, 2022

Statement of use
GRI 1 used

Applicable GRI Sector Standard(s)GRI Standard

GRI 2: General Disclosures

2-2

ESG Response to Customers

2-3

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

2-4
2-5

Greenhouse Gas Verification Statements

2-6

Third-party Assurance Statement

2-7
2-8
GRI 2: General

Disclosures 2021

2-9
2-10
2-11
2-12
2-13
2-14
2-15

For additional information, please visit our web

2-16

information below.

2-17

site. For more details, please see the contact

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Report to be made after the disclosure of the GRI Sector Standards in Shipping

Disclosure No.

2-1

UN SDGs Commitment

GRI 1: Foundation 2021

2-18

Disclosure Indicators
Organizational details

Entities included in the organization’s sustainability reporting

Reporting period, frequency and contact point

Restatements of information

External assurance

Activities, value chain and other business relationships
Employees

Workers who are not employees

Governance structure and compositionPage

2, 1116, 8, 42, 77, 82
83-84
83-84
68, 89

Role of the highest governance body in overseeing the management of impacts

11

Role of the highest governance body in sustainability reporting

Conflicts of interest

Communication of critical concerns

Collective knowledge of the highest governance body

Evaluation of the performance of the highest governance bodyN/A

No significant changes

2
2

68

Delegation of responsibility for managing impacts

Remarks

6-8, 77

Nomination and selection of the highest governance body

Chair of the highest governance body

Reason for Omission

68

11
11
68-69
11, 89-90
69
70

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

092

APPENDICESWE CARRY
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HMM OVERVIEW
ESG MANAGEMENTGRI Content Index

ESG PERFORMANCEGRI Standard

APPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

Disclosure No.

Information unavailable/
incomplete

The remuneration amount is being
reported, but the remuneration policy
will be improved in the mid- to longterm (target in 2025)

Information unavailable/ incomplete& Confidentiality constraints

Only the HMM's information available

Information unavailable/ incomplete& Confidentiality constraints

Only the HMM’s information
available

90

2-20

Process to determine remuneration

70

2-23
2-24
2-25
2-26

ESG Policy: Integrated Environmental Policy

Reason for Omission

Remuneration policies

2-22

ESG Response to Customers

Page

2-19

2-21

GRI 2: General
Disclosures 2021

Disclosure Indicators

2-27

Annual total compensation ratio

Statement on sustainable development strategy
Policy commitments

Embedding policy commitments

Processes to remediate negative impacts

Mechanisms for seeking advice and raising concerns

Compliance with laws and regulations

86
5
11, 37, 42, 44, 61, 64, 73, 102-104
11, 37, 42, 44, 61, 64, 73, 102-104
45, 54-56, 87-88
67, 76, 89
73, 90Awards, Initiatives and Association
Memberships

2-28

Third-party Assurance Statement

2-30

Collective bargaining agreements

55, 873-1

Process to determine material topics

14

Greenhouse Gas Verification Statements

2-29

GRI 3: Material Topics
GRI 3: Material Topics 2021

3-2

Membership associations

Approach to stakeholder engagement

List of material topics

108
13

14

Reinforcing Climate Action GRI 201: Economic Performance, GRI 302: Energy, GRI 305: Emissions
GRI 3: Material Topics 2021

GRI 201: Economic Performance

3-3

2016

201-2

GRI 302: Energy 2016

302-3

302-1
302-2

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Management of material topics

Financial implications and other risks and opportunities due toclimate change
Energy consumption within the organization

Energy consumption outside of the organization

Energy intensity

302-4

Reduction of energy consumption

302-5

Reductions in energy requirements of products and services

Remarks

15-16, 18
24
78
78
25, 7878
25-26

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ESG MANAGEMENT

ESG PERFORMANCE

093

APPENDICESWE CARRY
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEGRI Content Index
GRI Standard

Disclosure No.

Disclosure Indicators

Page

305-1

Direct (Scope 1) GHG emissions

305-2

Energy indirect (Scope 2) GHG emissions

23, 78305-3

Other indirect (Scope 3) GHG emissions

23, 78305-4

GHG emissions intensity

23, 78305-5

SASB Index

Reduction of GHG emissions

305-6

Emissions of ozone-depleting substances (ODS)

ESG Response to Customers

305-7

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

APPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities

GRI 305: Emissions 2016

UN SDGs Commitment

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements

GRI 3: Material Topics 2021

GRI 403: Occupational Health& Safety 2018

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

21-23, 78
79
31, 79Management of material topics

403-1

Occupational health and safety management system

37-39

403-2

Hazard identification, risk assessment, and incident investigation

38, 41

403-3

Occupational health services

38-40

Worker participation, consultation, and communication on occupational healthand safety

15-16, 36

40-41

403-5

Worker training on occupational health and safety

40

403-6

Promotion of worker health

53

403-7

information below.

23, 783-3

403-4

site. For more details, please see the contact

Remarks

Promoting Safety and Health of Employees and Suppliers GRI 403: Occupational Health and Safety

Third-party Assurance Statement

For additional information, please visit our web

Reason for Omission

403-8
403-9
403-10Prevention and mitigation of occupational health and safety impacts directly
linked by business relationships

Workers covered by an occupational health and safety management system

Work-related injuries

Work-related ill healthExcluded from the third-party
assurance

33, 4137
41, 8181

Excluded from the third-party
assurance

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

094

APPENDICESWE CARRY
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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

GRI Content Index
GRI Standard

Disclosure No.

Disclosure Indicators

GRI 3: Material Topics 2021

3-3

GRI 308: Supplier
Environmental
Assessment 2016

Management of material topics

308-2

Negative environmental impacts in the supply chain and actions taken

42, 82

GRI 414: Supplier Social
Assessment 2016

414-2

Negative social impacts in the supply chain and actions taken

42, 82

GRI 3: Material Topics 2021

3-3Strengthening ESG cooperation throughout the Supply Chain GRI 308: Supplier Environmental Assessment, GRI 414: Supplier Social Assessment

Page

15-16, 36

GRI 405: Diversity andEqual Opportunity 2016
GRI 406:
Non-discrimination 2016

GRI 407: Freedom of Association and Collective Bargaining
2016

405-1

Management of material topics

Diversity of governance bodies and employees

15-16, 36
83-84, 89405-2

Ratio of basic salary and remuneration of women to men

86

406-1

Incidents of discrimination and corrective actions taken

83

407-1

Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

45, 83408-1

Operations and suppliers at significant risk for incidents of child labor45, 83

GRI 409: Forced orCompulsory Labor 2016

409-1

GRI 3: Material Topics 2021

3-3

Operations and suppliers at significant risk for incidents of forced orcompulsory labor45, 83

Enhancing Ethical Management GRI 205: Anti-corruption, GRI 206: Anti-competitive Behaviorsite. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Remarks

Promoting Human Rights Management GRI 405: Diversity and Equal Opportunity, GRI 406: Non-discrimination, GRI 407: Freedom of association and collective bargaining, GRI 408: Child Labor, GRI 409: Forced or Compulsory LaborGRI 408: Child Labor 2016

For additional information, please visit our web

Reason for Omission

GRI 205:
Anti-corruption 2016
GRI 206: Anti-competitive
Behavior 2016

205-1
205-2
205-3
206-1

Management of material topics

Operations assessed for risks related to corruption

Communication and training about anti-corruption policies and procedures

Confirmed incidents of corruption and actions taken

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

15-16, 63
65, 8966, 8967, 9057, 67, 90

Excluded from the third-party
assurance

Excluded from the third-party
assurance

HMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements

TCFD Index
Category

Governance

ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

TCFD recommendations
a. Describe the board’s oversight of climate change-related risks
and opportunitiesb. Describe management’s role in assessing and managing climatechange-related risks and opportunities
a. Describe the climate change-related risks and opportunities the organization has identified over the short, medium, and long term.

Strategy

ESG Policy: Integrated Environmental Policyb. Describe the impact of climate change-related risks and opportunities on
the organization’s businesses, strategy, and financial planning.
c. Describe the resilience of the organization’s strategy, taking into
consideration different climate change-related scenarios, including a 2°C
or lower scenario.

Awards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Risk
managementb. Describe the organization’s processes for managing climatechange-related risks.

a. Disclose the metrics used by the organization to assess climatechange-related risks and opportunities in line with its strategy and risk
management process.

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

HMM conducts comprehensive risk management and controls through the Risk Management Committee under the Board of Directors.
HMM’s Risk Management Committee and the Risk Management Council oversees and controls risks, including non-financial risks such as
climate change and environmental risks.

To address the challenges and opportunities posed by climate change, HMM organized the Alternative Fuels Task Force Team (TFT), which
reports its progress and findings to the Future Strategy Committee every month. HMM plans to newly establish the ESG Committee, which is
expected to enable better management of climate change risks and opportunities.

Following the TCFD recommendations, HMM identifies and controls climate change risks and opportunities. HMM also conducts materiality
assessments with its internal and external stakeholders to determine the key risk and opportunity factors that affect HMM’s business. HMM
then develops response plans based on the qualitative impact of each factor, and monitors and manages the risks at different stages, suchas reporting on the status and progress while taking corrective actions as needed. This helps HMM to establish a systematic risk system andexpand the management scope.

HMM incorporates the results of the climate change analysis into HMM’s business, strategy, and financial plan and ensures their alignment.
HMM also estimates the potential financial losses and impacts from climate change and develops response plans accordingly in order tomake appropriate reports and take actions according to different scenarios of risks and opportunities.

HMM addresses climate risks by considering implementation risks, such as tighter regulations and policies on GHG emissions and reductions,and physical risks, such as extreme weather events and strong winds. In addition, HMM will seize related opportunities by using more efficient
processes and transportation means.

HMM comprehensively manages various impacts on its business by combining financial and non-financial risks, including climate change,a. Describe the organization’s processes for identifying and assessing climate into HMM’s risk management framework and designates them as HMM’s risk factors. HMM’s integrated risk management process consists ofchange-related risks.
four steps: planning, monitoring, analysis and evaluation, and response. HMM follows a manual for systematic risk management to ensure
consistency and effectiveness.

c. Describe how processes for identifying, assessing, and managing climatechange-related risks are integrated into the organization’s overall risk
management.

Metrics andtargets

HMM’s Responses

b. Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas(GHG) emissions, and the related risks.

c. Describe the targets used by the organization to manage climatechange-related risks and opportunities and performance against targets.

Page
71

11, 2424

71

24

24, 71

To support prompt and systematic decision-making and strengthen management and supervision of the BOD, HMM established the Risk
Management Committee, the Risk Management Council, the Risk Management Team, and Risk Operation Team under the BOD to ensurecomprehensive management and control of non-financial risks, including climate change.

71

HMM has an integrated risk management system that supervises and controls climate change-related risks led by the Risk Management Committee and Risk Management Council under the BOD, instead of having separate committees such as an Environment Committee.

68-69, 71

HMM monitors and controls Scope 1, 2, and 3 GHG emissions, GHG emissions per container fleet, fuel oil intensity consumptions, green investment expenses, and the number of workplaces obtained ISO 14001 certifications.

15-16,
78-80

Scope 1: 5,347,776 tCO2e
Scope 2: 33,327 tCO2e
Scope 3: (Category 3) 729,053 tCO2e (Category 4) 643,197 tCO2e (Category 13) 148,508 tCO2e
Associated risks include large-scale investments in new technology and alternative fuel-propelled ships, increase in fuel cost, and response
to carbon market in the process of implementing carbon neutrality by 2050, which may result in increased financial burden. There are also
reputational risk and image degradation in case of non-compliance with regulations and carbon neutrality.

23, 78

HMM aligns its climate change actions with the KPIs of relevant departments and sets annual targets to measure their performance. The KPIs
include enhancing the GHG efficiency of HMM’s ships, developing GHG net zero plans, and tightening compliance with environmental regulations.

16, 24, 75

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Analysis of Climate Change-related Risk Factors
Category

Key risk factors

Reinforcement ofregulations and policies on
GHG emissions

ESG PERFORMANCE
Policy andlegal

APPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
Analysis of Climate Change-related Risks
and Opportunities
SASB Index

Transition risks

UN SDGs Commitment

ESG Response to Customers

Market /Technology

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Reputation

Acute
Physical risks

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ESG PERFORMANCE

096

APPENDICES

Analysis of Climate Change Risk and Opportunity Factors

ESG MANAGEMENTTCFD Index

ESG MANAGEMENT

Chronic

Details

As the International Maritime Organization (IMO) strengthens its energy efficiency standards
as well as carbon emission reduction regulations(EEDI, EEXI, and CII*), we need to makesignificant efforts to meet the regulatory requirements such as ship output restrictions.
Starting in 2024, the shipping industry will be included in the EU-Emissions Trading System (EUETS), making it mandatory to manage GHG emissions from ships departing, calling, or entering
European waters.

Litigations on climatechangeCorporate activities that negatively impact climate change can lead to reputational damage,declination of brand value, and disruption of business operation, particularly if the company issubject to a lawsuit.

Sustainable finance

Investors' interest in sustainable finance, such as the Poseidon Principle**, a global initiative
promoting eco-friendly ship finance, is increasing. Accordingly, responding to eco-friendly
requirements related to ship finance is necessary.

Transition to low-carbon
technology for ships andterminal facilities

As the significance of low-carbonization of the value chain has become more highlighted
than before, various clients are requesting reductions in carbon emissions during cargotransportation. Accordingly, it is necessary to adopt low-carbon technologies to reduce
emissions from transportation services.

Growing demand forcarbon reduction fromstakeholders

The shipping industry faces growing pressure from key stakeholders to adopt a low-carbon
economy, which means reducing carbon emissions not only in shipping operations but also inother corporate activities.

Rising demand for green
fuel use

Fuel EU Maritime is a regulation that aims to achieve the EU’s carbon-neutral target bycontrolling GHG emissions and ship fuel for the shipping industry, starting from 2025. This
regulation mandated the reduction of ship emissions and the use of green fuel (RFNBO***).

Changes in consumer
behaviors / preferences,increased investor
concerns, or negative
feedbackAs the international community pays more attention to climate change issues, stakeholders expect shipping companies to comply with climate change-related regulations and assessments.
Failing to do so may result in various disadvantages such as reputational damage.

Financial impact

In case of non-compliance, sales may decrease due to fines and operation bans. Additionally,financial burdens are expected for investment in ship facilities and purchase of high-efficiency
ships in order to respond to regulations.
The implementation of the EU-ETS will require HMM to purchase emission permits or pay fines forexceeding emissions quotas when operating ships in European waters. HMM is expected to incur
costs for purchasing eco-friendly ships and investing in facilities to reduce GHG emissions from its
ships operating in European waters.
Climate change litigation is expected to bring about decreased sales due to legal expenses,
suspension of business, and damage to brand value. In order to prevent this, businesses are
expected to increase their financial burden by carrying out various activities to continuously
monitor corporate activities that may have an adverse impact on climate change and actively
respond to key stakeholders.

Financial institutions are expected to tighten debt repayment conditions for organizations that do
not comply with contracts or requirements related to emission reduction and management. This
could lead to additional costs for the procurement of eco-friendly ships and the introduction ofhigh-efficiency facilities that meet financial institutions' requirements for reducing GHG emissions.
Failure to meet low-carbon requirements in the transportation process can lead to a decrease insales and damage to reputation. To prepare for it preemptively, the company will have to invest inan emission reduction system for the eco-friendly terminal, upgrade or repair the existing ships tolower their emissions, and acquire new eco-friendly ships.

Key stakeholders demand to transition to a low-carbon system, or else the companies may facevarious disadvantages such as lower investment and sales. Therefore, HMM needs to undergo acomprehensive transformation at the corporate level. This includes reducing emissions in shipping
operations (by introducing green technologies for ships and terminals), as well as cutting downenergy consumption, and switching to renewable energy at the headquarters and branches, which
will require financial costs.

Non-compliance with the requirements of Fuel EU Maritime may result in penalties such as
imposition of fines. To comply with the regulation, it is expected to incur higher financial costs, suchas investing in eco-friendly ships, high-efficiency facilities, and green fuels.
When a climate change-related risk undermines brand reputation or value, it is likely to limit
financing and adversely affect customers’ preferences, which could result in a decline in sales. In
this regard, HMM is required to build capacity, secure expertise, and carry out various activities,
which will additionally put financial burden to the company.

Extreme weather
conditions (downpours,
typhoons, etc.)

Due to climate change, it is expected that extreme weather events accompanied by heavy
precipitation and wind, such as heavy rains and typhoons, will increase. As a result, damage
and loss of ships, ports and cargos, and delays in cargo delivery due to transportation
disruptions may occur.

Global average temperature rise

The rising average global temperature could increase power consumption to maintain theinside temperatures of ships, containers, terminals, and buildings.

It could lead to an increase in costs of cooling of the inside of ships, containers, terminals,
and buildings.

Sea level rise and ocean
current change

Constant rise of sea level stemming from climate change are likely to flood or do damage to
HMM's port facilities or infrastructure, which could restrict the availability of ports of eachcountry and the utility of port facilities, or cause instability of the facilities.

It could undermine the value of flooded assets, and incur the cost for recovery. The limited
availability of key ports would trigger another financial burden, causing costs of searching foralternative ports.

It will incur the costs for loss / damage recovery, and also compensation for delayed shipments, andcargo damage / loss. As it is required to insure ships against damage, the related costs are likely to
rise.

* EEDI(Energy Efficiency Design Index): It is an index formulated for new ships that estimate CO2 emissions during marine transportation to prohibit the delivery or operation of the ships likely to exceed the certain amount of emissions			
		 EEXI(Energy Efficiency Existing Index): It is a measure targeting for ships of 400 gross tonnage or above to prohibit the operation of the ships likely to exceed the certain amount of CO2 emissions during marine transportation 							 CII(Carbon Intensity Indicator): It is an index for ship energy efficiency based on annual fuel consumption, targeting for vessels above 5,000 gross tonnage, and a ban will be imposed on the ships whose efficiency ratings do not meet the standard in three consecutive years		** Poseidon Principles: It is a global framework for assessing and disclosing the climate alignment of financial institutions’ shipping portfolios in order to promote green transition in the marine transportation sector
		 The financial institutions joining this initiative are required to request marine transporters to set their GHG mitigation targets regarding ship finance and manage them 						*** RFNBO(Renewable Fuels of Non-Biological Origin): This refers to fuels produced using the combination of renewable energy sources including hydrogen, carbon, and nitrogen

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Analysis of Climate Change-related Opportunity Factors
Category

Key opportunity factors

097

APPENDICES

Details

Financial impact

Complying with international regulations in regard to ship energy efficiency requires theintroduction of high-efficiency equipment, which is likely to enhance ship fuel efficiency.

Reduced fuel costs are expected due to increased fuel efficiency and reduced fuel consumption.

As part of the efforts to mitigate GHG emissions, HMM can replace fuels for cranes, automobilesat ports, and internal-combustion engine equipment at terminals with electricity or electricityinternal combustion hybrid systems, thereby reducing fuel consumption of facilities emitting agreat amount of emissions.

Reduced fuel consumption of terminal equipment could lead to a decrease in fuel costs as well as
lesson potential risks posed by fuel price volatility.

Resource
efficiency

Utilization of highefficiency processes
and transportation
modes

EnergysourceSupport policy for ecofriendly, low-carbon
energy sources

The government is projected to scale up its subsidies given to the development of low-carbon
technologies for marine shipment as part of its policies to combat climate change.

The government subsidies could curtail low-carbon technology development costs, and theadoption of low-carbon shipping products and services would enable HMM to be more competitivein the market.

GRI Content Index

Products
and Services

Having an upper handby cutting productcarbon footprints

The introduction of low-carbon marine shipment services that meet the demand of customers
putting value on green logistics will enable HMM to secure competitiveness in terms of eco-friendly
services within the market.

The active adoption of low-carbon products and services sought after by customers could lead to arise in sales.

Analysis of Climate Change-related Risks
and Opportunities

Reputation

Growing investors’
expectations or
positive feedback

Active response to climate change and transparent disclosure of environmental management
will allow HMM to earn trust from key stakeholders. It is also likely to earn positive reputation and
expectation from investors about
environmental management.

Positive financial effects such as expansion of investment and improvement of investment
conditions are expected by securing a positive reputation through active response and publicity
related to climate change.

ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

TCFD Index

SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Opportunities

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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCESASB Index
SASB Code

2020

2021

2022

Page

tCO2e

TR-MT-110a.1

4,863,896

5,462,335

5,347,776

23, 78-

TR-MT-110a.2

Discussed

Discussed

Discussed

19-20, 23(1) Total energy consumed

MWh

TR-MT-110a.3

16,788,969

18,751,534

18,315,212

78(2) Percentage heavy fuel oil%

TR-MT-110a.3

-

-

-

-

No disclosure

UN SDGs Commitment(3) Percentage renewable%

TR-MT-110a.3

-

-

-

-

ESG Policy: Integrated Environmental Policy

Average Energy Efficiency Design Index (EEDI) for new ships

Grams of CO2 per
ton-nautical mile

TR-MT-110a.4

-

-

78

(1) NOx emissions (excluding N2O)

Tons

(Containers) 17.2
(Tankers) 2.0(Bulk liners) 2.4

No disclosure

TR-MT-120a.1

66,131

82,18392,522

79(2) SOx emissions

Tons

TR-MT-120a.1

7,139

9,068

10,20679(3) Particulate Matter (PM10) emissions

Tons

TR-MT-120a.1

4,957

6,140

6,905

79

Days

TR-MT-160a.1(1) Percentage of fleet implementing ballast water exchange%

TR-MT-160a.2

100.0

100.0

100.0

80

(2) Percentage of fleet implementing ballast water treatment%

TR-MT-160a.2

80.8

77.4

89.9

80

Cases

TR-MT-160a.3

0

0

0

80

m³

TR-MT-160a.3

0

0

0

80

TR-MT-320a.1

Offshore
employees: 0.25
Onshoreemployees: 0.19
Overseas
corporations:
0.00
HOS: 0.96

Offshore
employee: 0.22
Onshoreemployee: 0.0
Overseas
corporations:
0.00
HOS: 0.00

Gross Global Scope 1 emissions

ESG KPI & Achievements

Discussion of long- and short-term plan to manage Scope 1
emissions, emissions reduction targets, and an analysis of performance against those targets

ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities

GHG Emissions

SASB Index

ESG Response to Customers

Awards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Disclosure Items

HMM Response

Unit

APPENDICES

Category

Air Quality

Shipping duration in marine protected areas or areas ofprotected conservation status

Ecological Impacts(3) Total number of spills and releases to the environment(4) The aggregate volume of spills and releases to theenvironment
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Employee Health & Safety

Lost Time Incident Rate (LTIR)

No. of incidents per
200,000 working hours

-

-

-

-

Offshore
employee: 0.1
Onshoreemployee: 0.0
Overseas
corporations:
0.00
HOS: 0.00

81

Remarks

Net Zero Roadmap
establishedNo disclosure

Based on HMM
owned ships, BBCHP,
and BBCHMM OVERVIEW

ESG MANAGEMENT

ESG PERFORMANCE

099

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ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

SASB Index
Category

Business ethics

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Disclosure Items

SASB CodeTimes

TR-MT-510a.1

0

0

0

99

KRW million

TR-MT-510a.2

0

0

0

90

Cases

TR-MT-540a.1

0

1

0

%

TR-MT-540a.1

Number of Conditions of Class or Recommendations

Cases

TR-MT-540a.2(1) Number of port state control deficiencies

Times

TR-MT-540a.3

47

70

101

82

(2) Number of port state control detentions

Cases

TR-MT-540a.3

1

2

0

82

Number of calls at ports in countries that have the 20 lowest rankings in Transparency
International’s Corruption Perception Index

Total monetary losses due to legal proceedings associated with bribery or corruption
Number of marine casualties, percentage classified as very serious

Accident & Safety
Management

HMM Response

Unit

2020

2021

Page

2022

82, 99
0.0
-

8.3
-

0.0
-

-

Remarks

1 case out of
total 12

accidents in 2021
No disclosure

HMM OVERVIEW

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ESG PERFORMANCE

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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESUN SDGs(Sustainable Development Goals) Commitment

HMM is promoting various activities that align with the UN Sustainable Development Goals as well as its ESG management directions to join global efforts to achieve the UN SDGs.
UN SDGs

HMM’s Key Activities

Page

End hunger, achieve food security and improved nutrition, and promote sustainable agriculture· Support for domestic and overseas children· Transportation of international relief goods to Ukraine, Syria, and Jordan· Campaign to donate daily necessities for vulnerable communities,orphanages, child protection groups in Thailand and Vietnam

Ensure healthy lives and promote well-being for all at all ages

· Infectious disease prevention activities· Comprehensive health check-up system· Health care services for offshore employees· Participation in <Dallas Heart Walk> in Dallas, the United States

53, 59Ensure inclusive and equitable quality education and promote life-long learning opportunities for all· Company-wide talent development system· Overseas boarding training program, expatriate education, etc.

47-50

ESG Policy: Integrated Environmental Policy

Achieve gender equality and empower all women and girls· Ban on discrimination through the establishment of human rights policy· Female mentoring lectures· Participation in supporting girls from low-income families in Korea

Greenhouse Gas Verification Statements

Ensure availability and sustainable management of water and sanitation for all· Usage of seawater and recycled clear water when cooling ship equipment· Measurement of turbidity and pH levels when releasing scrubber wash water· Usage of wastewater treatment facilities to discharge sewage from ships

Ensure access to affordable, reliable, sustainable, and modern energy for all· Monitoring system for ship energy efficiency· Investments in eco-friendly vessels and fuels

Make cities and human settlements inclusive, safe, resilient and sustainable· Transportation of international relief goods to Ukraine, Syria, and Jordan

59

Ensure sustainable consumption and production patterns· Establishment of Sustainable procurement policy

42

ESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

Awards, Initiatives and Association
Memberships
Third-party Assurance Statement

Take urgent action to combat climate change and its impacts

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com· I mplementation of Net zero strategies including the efforts to improve energy efficiency· Disclosure the CDP climate change data

Conserve and sustainably use the oceans, seas and marine resources for sustainable development· Participation in R&D on the measurement of underwater radiated noise· Right whale conservation activities· Plogging campaign to purify the environment while jogging

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all
and build effective, accountable and inclusive institutions at all levels· Human rights impact assessments and actions to relieve human rights risks· Integration of the Code of Ethics based on the Anti-Corruption and Bribery Policy· Training on human rights, ethics management, and anti-corruption

59

44, 51, 59

31

25, 3519-23, 107

34, 5845, 64, 66

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101

APPENDICESESG Response to Customers

HMM OVERVIEW
Category

ESG MANAGEMENT
ESG PERFORMANCEESG

APPENDICESESG KPI & Achievements
ESG Data

TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements

SocialEmployee

For additional information, please visit our web
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Organizational structure to support ESG management11

ESG-related initiative memberships and implementations

107

Stakeholder Communication

13

20-21

GHG emissions measurement / disclosure

23

Strategies and investments for environmental sustainability

Supply Chain

24, 27, 35
31-32

Response to the IMO regulations

19, 21, 24-25, 27, 31-34

31, 103

Biodiversity / ballast water (BWTS)

26, 34

Employee ESG education

30

Recruitment process and managements system

47
51-53
50

Training to enhance job competency

47-50

Employee grievance handling

54-55

Supply chain management and sustainable procurement
policyCooperative activities for supply chain and support for
ESG management

SocialHuman rights

Local community

Governance

Ethics24

Sulfur oxides management (scrubber)

Results of training provided and satisfaction survey

Safety and health25, 56

Waste management / recycling

Working conditions and welfare benefits

Category

19-20, 23

Next-generation fuels / renewable energy

Environmental performance in conjunction with KPIs /compensation

Third-party Assurance Statementsite. For more details, please see the contact

11

CO2 footprint disclosure

Environment

Page

Mission, vision, and strategies for ESG management

SBTi-based GHG reduction targets

GRI Content Index

UN SDGs Commitment

Indicators

42
42-43

External certification

Verification

Indicators

Safety and health policy, and management of
indicators

37-41

Employee health care system and monitoring

53

Partner safety management

39

Human rights policy

44-45

Training on Human rights and respect for diversity

46

Social contribution promotion system

58

Social contribution activities

58-60

Ethical management policy / the Code of Conduct

64-66

Compliance management and anti-corruption
activities

Operation of ethics management report channel

67
67

Risk management system and activities

71-72

ISO 14001 (environment), ISO 50001 (energy),
ISO 45001 (safety and health),
ISO 27001 (information security),
ISO 28000 (logistics security)

105

TRACE, CO2 Reduce Management, PSA HSSE,AEO (cargo reliability, safety)

106

Third-party GHG assurance statements
Third-party assurance statement
ESG evaluations and awards

ESG EvaluationPage

ESG evaluation results from Korea Institute ofCorporate Governance and Sustainability

109-110111
107-108
6, 107

CDP evaluation results on climate change response

107

EcoVadis evaluation results

6, 107

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ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

ESG MANAGEMENT

ESG PERFORMANCEESG Policy: Integrated Environmental Policy
Greenhouse Gas Emission Reduction

Energy Consumption and Efficiency Management❶ Establishment of GHG Reduction Targets

To mitigate climate change, HMM manages the base emission factor (BEF) represented by ship type andsize on its own. HMM establishes and reduces ship GHG reduction targets, and makes continuous efforts to reduce GHG emissions through implementation of related projects.
Category

2030

Compared to BAU in 2030

Compared to Emission
Intensity in 2008

All fleets

Container fleets

21.5%
50%
70%

2050
Carbon Neutral❷ Establishment of GHG Reduction Strategies

E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

HMM develops and disseminates best practices including excellent cases of energy efficiency management.

❸ Hull Fouling Control

In terms of operation, it is important to manage hull contamination to prevent a decrease in ship
energy efficiency. Periodic inspection and hull cleaning can reduce the hull resistance of the ship.

Hazardous Substance Management

4.2 Alternative Fuel

ESG Team❷ Development of Best Practices

To respond to climate change, HMM establishes a Green Energy Efficiency Management System (GEEMS)
to monitor and analyze GHG emissions in real time while conducting a third-party verification in accordance with the ISO 14064 (voluntary GHG emissions verification standard) principle every year with an
aim to obtain the objectivity of emission calculation. HMM strives to manage it systematically to ensurethat it can be used for internal and external reporting to the company and to the government.

❸ GHG Emission Control

For efficient energy management and saving, HMM develops, verifies, and applies energy-saving facilities in consideration ofship characteristics by investing in R&D and developing new technologies with manufacturers and shipyards.

information below.

For efficient management of ship energy, HMM develops and applies a management system thatcan reduce energy costs by monitoring and analyzing energy efficiency in real time, such as a generalcontrol room and EEMS (Energy Efficiency Monitoring System).

❹ Excellent Ship Award System

4.1 Energy Saving Device

site. For more details, please see the contact❶ Energy Efficiency Monitoring

Based on the current status of GHG emissions of all fleets and future fleet plans, HMM establishes short-,
mid- to long-term GHG reduction strategies to achieve GHG reduction targets including international regulations.

❹ GHG Reduction Measures

For additional information, please visit our web

102

APPENDICES

To achieve substantial GHG reduction, HMM actively promotes the application of alternative fuels such as LNG andbiofuels, and further participates in the development of next-generation alternative fuels, such as hydrogen and ammonia
through R&D cooperation.
• A total of two long-term chartered 7,700 TEU LNG DF vessels are scheduled for delivery by the end of 2024.
• A total of nine newly ordered 9,000 TEU methanol DF vessels are scheduled for delivery in 2025 and 2026.

4.3 Introduction of Carbon Capture Unit

4.4 Offsetting via Carbon Credits and Implementation of GHG Reduction Projects

In order to encourage vessels to raise awareness of energy efficiency management, HMM introduces
vessel reward system for excellent ships.

❶ Ships Paint

The application of eco-friendly antifouling paints shall be expanded in order to prohibit the use ofpaints that not only adhere to marine organisms but also adversely affect marine organisms.

❷ Eco-friendly Chemicals

Chemicals used to remove scale and carbonized oil generated from various devices shall be replacedwith eco-friendly materials.

❸ Eco-friendly Lubricant

Lubricating oil used for lubricating the driving part connected to the hull and grease used for equipment exposed to the outside of the upper deck pose a risk of causing pollution to the marine environment if discharged outboard. Thus, eco-friendly lubricant shall be applied to prevent it.

❹ Inventory of Hazardous Materials (IHM) Management

In accordance with the IMO Ship Recycling Agreement and EU Ship Recycling Regulations, HMM
creates a list of hazardous substances generated from shipbuilding and dismantling. HMM manages
it through a third-party verification to comply with workers' safety and environmental management
measures.

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ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Waste Management❶ Oil Waste Management

HMM minimizes the generation of oily waste (sludge, oily bilge water) while thoroughly recording theamount of waste generated and treated in the course of the delivery to shore (land delivery andrecycling). The generated oil waste is monitored from generation to discharge, transport and treatment
to promote recycling, and is managed in accordance with the provisions of the annex to the MARPOL
convention.

❷ Waste Management

HMM establishes a Garbage Management Plan and manages the collection, storage, treatment, anddisposal of all waste generated by ships according to the provisions of the annexes to the MARPOL agree-

ment. HMM monitors the entire process from waste generation to discharge to transport and treatment
to reduce waste generation and to activate recycling, including the separate collection and the use ofplastic can compressors.

Water Resource Management❶ Fresh Water Management

HMM strives to reduce environmental pollution by controlling the amount of gray water generated
through continuous management of the freshwater consumption of ships.

❷ Scrubber Washing Water Management

When a ship discharges used scrubber washing water into outboard in order to reduce the emission of

sulfur oxides from the ship's exhaust gas, HMM continuously measures the levels of acidity (pH), turbidity,
PAH, and nitrate to comply with conventions and regulations, and to minimize environmental impact.

❸ Gray Water and Sewage Treatment

Sewage generated from ships is treated and discharged through a sewage treatment system or stored
and managed in a separate holding tank. For gray water discharged from cabins and galleys, a dedicated

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

holding tank shall be built to comply with regulations, such as US Vessel General Permit.

Control Requirements and Management of Air Pollutants❶ Ozone Depleting Substances

Deliberate release of ozone depleting substances (including maintenance, repair during use, orarrangement of equipment or facilities) is prohibited, and new installation of ozone depleting sub-stances on all ships is also banned. Equipment containing ozone depleting substances is delivered
to appropriate receiving facilities when removed from the ship.

❷ Nitrogen Oxide (NOx)

The NOx emission regulation is applied to diesel engines on board in accordance with MARPOL Annex VI (air pollution) and more strict regulations are applied in some emission control areas. Whenentering the emission control waters, HMM operates Selective Catalysis Reduction(SCR) to comply
with regulations by reducing NOx emissions.

❸ Sulfur Oxide (SOx)

The regulations on SOx emissions are applied to the oceans around the world according to MAR-POL Annex VI (air pollution), and more stringent regulations are applied in the seas with separately

designated emission control. There are two methods for reducing the amount of SOx to abide by
the regulations, the Exhaust Gas Cleaning System (EGCS) and the use of low sulfur fuel oil, which
are implemented differently for each ship.

❹ Fumes

As sanctions by the competent authority for the generation of fumes caused by the activities inports or on the coast are being strengthened, efforts shall be made to minimize the generation offumes during engine operation.

4.1 T
 he generator should avoid low / high load operation as much as possible and use MDO when inevitable.
4.2 In ports or coasts where the use of engines is frequent, HMM shall check whether fumes are generated. If
generated too much, HMM investigates and eliminates the root cause.

4.3 Shipboard incineration is prohibited in ports, harbors, and estuaries.

HMM OVERVIEW

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HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Local Ecosystem Protection❶ In order to comply with the Clean Air Conservation Act and reduce pollutants generated at the workplace,

HMM makes investment in clean production technology and thoroughly maintains air, water and soil pollutants that directly affect local environment below the legal standards.

❷ Alternate Marine Power (AMP)

HMM minimizes discharge of air pollutants such as GHG and fine dust by utilizing AMP during anchoring.

❸ Exhaust Gas Cleaning System (EGCS)

HMM installs EGCS to reduce sulfur oxides emitted from ships. EGCS has the effect of reducing the emission of fine dust, helping to manage air quality in local communities.

Biodiversity Protection❶ T o safeguard the sea water quality and marine ecosystem, HMM carries out environmental cleanup ac-

tivities every year through social contribution activities and strive to restore the ecosystem and preserve
biodiversity by efficiently utilizing natural resources and by-products.

❷ To prevent disturbance of marine ecosystem caused by foreign species attached to the hull, HMM applies

excellent antifouling paint to a ship and controls hull contamination on a regular basis. In addition, theMarine Growth Preventing System (MGPS) is installed to prevent marine organisms from entering theship.

❸ Ballast Water Management

 he International Maritime Organization (IMO) adopted the Ballast Water Management Convention toTprevent the sediment and marine organisms in seawater flowed into the ship ballast tanks from spreading on the shores of other countries and causing changes in marine ecosystems. HMM shall install andoperate ballast water treatment system on the ship in accordance with the Convention.

❹ Container Loss Prevention Management
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

 oading and securing conditions of containers are managed using the Cargo Securing Manual (CSM) andL
the Loading Computer, approved by the classification society. Preventive maintenance is introduced toperform regular lashing material maintenance. For more advanced lashing materials, HMM actively participates in the relevant research and development, and promotes the introduction.

❺ Double Hull ConstructionIn accordance with MARPOL ANNEXT I REG.12A, HMM builds a ship by applying a double hull structure sothat fuel from the fuel tank does not leak out of the ship in case of a collision or aground.

Ship Recycling❶ F or safe and environmentally friendly dismantling of ships, the procedure shall be carried out in accor-

dance with the International Maritime Organization (IMO)’s Ship Recycling Convention and EU Ship Recycling Regulations.

❷ IHM and SoC shall be prepared on board in new shipbuilding before the delivery.

❸E xisting ships respond to recycling requirements in compliance with international conventions andlocal regulations.

Customer Safety and Health

For the safety and health of customers, HMM manages hazardous substances in ships, establishes marine

safety rules, and conducts related training. In addition, HMM establishes a system to provide carbon footprints of the ship to customers.

Environmental Impact of Product Use

HMM collects data using GEEMS, a system developed in-house, and conducts environmental impact assessments such as sulfur oxide, nitrogen oxide, and GHG emissions. Evaluation data is certified by a certificationbody to provide reliable information. Certified evaluation data is officially disclosed for customers.

Building a Sustainable Supply Chain

In order to establish a sustainable supply chain, HMM operates a partner support program to ensure partnercompanies comply with international regulations and laws for all goods and services. HMM also carries out
activities to reduce environmental impact across supply chain through preferential transactions with thepartners supplying materials that are easy to recycle and reduce the use of hazardous substances, resources,and energy.

In addition, HMM manages GHG by using the Supply Chain Carbon Calculator, a system that automaticallycalculates the GHG generated from the point of departure to the destination, encompassing inland transportation such as trucks and railroads. HMM also provides a service that allows shippers to check the GHG emis-

sions generated at each transport section by entering the point of departure, destination, and cargo volume.
This enables them to select the route that generates the least amount of GHG emissions.

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ESG PERFORMANCE

105

APPENDICESAwards, Initiatives and Association Memberships
ESG Management Certifications

ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

ISO 14001 (environment)

Certified organization(expiration date)

ISO 50001 (energy)

Certified organization(expiration date)

Environmental management
system standard set byInternational Organization forStandardization (ISO)HMM (Nov. 01, 2024)
HOS (Oct. 25, 2025)
RWG (Apr. 05, 2025)

Energy system standard set
by International
Organization forStandardization (ISO)HMM (Nov. 01, 2023)
HOS (Nov. 01, 2023)

ISO 27001 (information security)

Certified organization(expiration date)

ISO 28000 (logistics security)

Certified organization(expiration date)

Information security systemstandard set by International
Organization forStandardization (ISO)HMM (Nov. 28, 2024)

Logistics security systemstandard set by International
Organization forStandardization (ISO)RWG (Mar. 31, 2025)

Greenhouse Gas Verification Statements
Third-party Assurance Statement

ISO 45001 (safety and health)
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Occupational safety andhealth management systemstandard set byInternational Organization forStandardization (ISO)

Certified organization(expiration date)
HMM (Jun. 30, 2024)
HOS (Oct. 25, 2025)
HPC (Dec. 27, 2024)
HPNT (Mar. 27, 2025)
RWG (Dec. 20, 2025)

HMM OVERVIEW

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ESG Management Certifications

ESG PERFORMANCETRACE (anti-corruption certification)

APPENDICESTRACE(Anti-Bribery Compliance Solutions)ESG KPI & Achievements
ESG Data

Certified organizations (expiration date)

TCFD Index

HMM (Jun. 14, 2023)
HMM (America), Inc., FEG SUCCESS, HYUNDAI COLOMBO, HMM America Shipping Agency, Inc., HYUNDAI BANGKOK, HYUNDAI JAKARTA, Washington United Terminals, Incs., HMM
Japan CO, Ltd., HYUNDAI DREAM, HYUNDAI HOPE, HMM (SG) PTE. LTD., HMM (Europe) Limited, HYUNDAI GOODWILL, HYUNDAI INTEGRAL, HMM (Hong Kong) Limited, HMM (Taiwan)Co., Ltd., HYUNDAI VICTORY, HYUNDAI DRIVE, HMM Shipping Agency CO., LTD., HMM (China) Co., LTD., HYUNDAI PRIDE, Hyundai Oakland, Chengdu HMM Documentation Service Co.,
Ltd., HMM (Germany) GmbH&Co.KG, Hyundai Vancouver, HMM Promise, HMM (Netherlands) Shipping BV, HMM (Belgium) Shipping, HMM Blessing, HMM Chittagong, HMM Shipping
France SA, HMM (Sweden) Shipping AB, Pacific Ace, HMM Dhaka, HMM (Malaysia) SDN. BHD., Pacific Pride, HMM SHIPPING VIETNAM COMPANY LIMITED, HMM (Italy) S.R.L., HMM Vladivostok Shipping, LLC, HMM Pacific Co. Ltd., HT Algeciras Co., Ltd., HMM (Management) GmbH, HMM (Australia) PTY LIMITED, HMM TERMINAL SINGAPORE, HMM (Philippines) Inc., HMM
Ocean Service CO., Ltd., KALAMATA 1 S.A., KIMOLOGOS S.A.

GRI Content Index
Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

CO2 Reduce Management

Certified organization(expiration date)

PSA HSSE

Certified organization(expiration date)

CO2 Reduce Management

Terminal RWG(Rotterdam, Netherlands)(Apr. 05, 2025)

PSA HSSE(Health, Safety,
Security, Environment
Management System)

Terminal HPNT
(Pusan, Korea)(no expiration date)

AEO (cargo reliability, safety)
AEO (Authorized
Economic Operator /excellent import andexport safety managementcompany)

Certified organization(expiration date)

HMM
Terminal WUT (Tacoma, USA)
(C-TPAT)
Terminal TTI (Long Beach, USA)
(C-TPAT)

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ESG PERFORMANCE

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Initiatives and External Performance
Initiatives

ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

Gold medal

HMM received a Gold medal, ranking among the top 3% of the world, in
the EcoVadis evaluation. EcoVadis evaluates ESG policies and performance of companies based on international sustainability standards

such as the Ten Principles of the UN Global Compact, the International
Labor Organization (ILO) Convention, the GRI standards, and the UN

Area

HMM’s Activities

Human rights,
labor,
environment,
and anticorruption

A participant of the world’s largest corporate sustainability
initiative aiming to provide feasible measures to accomplish
sustainability as well as to encourage companies to embed
the Ten Principles on human rights, labor, environment, andanti-corruption into their business management to achievesustainability

Environmental

A member of an international non-profit organization that focuses
on reducing GHG emissions from freight transportation.

principles for the implementation of business and human rights.

Environmental: A+
Social: A
Governance: B+

HMM obtained a Grade A in the ESG (Environmental, Social, Governance) management evaluation conducted by the Korea Institute ofCorporate Governance and Sustainability (KCGS). Having an Integrated

grade A means that HMM’s ESG management system is appropriately
established in accordance with the model standards of environment,

A member of the partnership of global major shippers, shipping
liners, and freight forwarders established to achieve the goal ofEnvironmental mitigating the environmental impact of global freight transportation and of promoting the sustainability of the transportationindustrysocial, and governance, and that HMM is less likely to undermine shareholder value due to non-financial risks.

A member of a global partnership formed under the goal of com-

Environmental mercializing Zero Emission Vessels (ZEV) for deep sea navigation
by 2030.

Climate Change: B

HMM obtained a Management level, Grade B, in the ‘2022 CDP Climate
Change Response Assessment’ conducted by the Carbon Disclosure
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

Ant-corruption A member of the Maritime Corruption Prevention Network

Project (CDP), a global sustainability evaluation agency. CDP provides

information to investors and financial institutions every year on climatechange response strategies, GHG emissions, and reduction efforts ofmajor listed companies around the world.

Labor andhuman rights

Signed a declaration to address the crew welfare issues and crew
shift issues caused by the COVID-19 pandemic

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ESG MANAGEMENTAwardsESG PERFORMANCE

Date

APPENDICES

2023.02

ESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

2023.022023.022023.01
2022.122022.122022.06
2022.06
2021.122021.092020.122020.112019.112019.082019.06
2018.062017.122017.012014.05

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

2014.012013.06
2013.01

Membership Status
AwardsBest shipping company in East Asia-US West Coast carbon emissions in the
fourth quarter of 2022

Awarded by
XenetaMinister of Oceans and Fisheries Award(Captain of HMM Rotterdam, Head of HOS Maritime Digital Team)

Ministry of Oceans andFisheries

Excellent participant in activating the intermodal transport system(HMM PSA New Port)

Busan Port Authority

Minister of Oceans and Fisheries Commendation on the occasion of the foundation of ‘The Arms of the Sea’ (the maritime industry public interest foundation)
Korea Maritime Award

Korea Sea Journalists
Association

Korea Ocean BusinessCorporation

27th Marine Day Bronze Tower Medal (Vice President Park Jin-ki)

Ministry of Oceans andFisheries

Korean New Deal of the Month

Relevant government
ministries

Outstanding Case Competition for Win-Win cooperation with shipowners /Participation Award

Digital Advertising Festival ‘2020 &Award’ / Grand Prix

Certified Excellent Shipping Company & Shipper (1st Grade)
Global Freight Awards 2019 / Environmental Award: Winner

Top award for the utilization of public data on oceans and fisheriesNo. 1 in schedule reliability

2018 ‘Recognized Performance’ Award

No. 1 in schedule reliability

No. 1 in schedule reliability

Outstanding Partner Award

Excellence in climate change response (4th consecutive year)
Summit Award for Economic Contribution

Carbon Management Leader Award

Korea Management
Certification

Korea

Korea Shipowners’ Association
KCCI Seoul Chamber ofCommerce & Industry

CINS (Cargo Incident Notification
SystemWLDL (World Liner Data Ltd.)

Lloyd’s Loading List

Ministry of Oceans andFisheries

LR (Korean Committee)

SeaIntelTargetCDP Korea Committee
City of Tacoma, US

CDP Korea Committee

Korea International
Trade Association

Korea Enterprise Federation

Ministry of Oceans andFisheries

SeaIntel

The Korea Shipowners' MutualProtection and Indemnity
Association(KP&I)

Korea Ship Managers' Association

Korea Digital Enterprise
Association

SeaIntel

Korea Shipbuilding & Offshore
Engineering (KSOE) CEO Forum
Korean Register

Korea Ocean BusinessCorporation

US Agriculture Transportation
Coalition

Association

Korea AEO Association

Ministry of Oceans andFisheries

Outstanding case competition for Win-win cooperation with shipowners /Excellence Award
Excellent company in safety management

Category

WSC (World Shipping Council)
Overseas

DNV (Korean Committee)
BIMCO (Baltic and International
Maritime Council)
INTERTANKO
ABS (Korean Committee)

ASA (Asian Shipowners’
Association) General Meeting
ASA SPC

HMM activities

Year joined

Vice Chairman

2021

Member2010

Non-executive board
member2000

Non-executive board
member2000

Member1994

Member1994

Non-executive board
member1980

Vice Chair

1976

Member1976

Member2017

Member2010

Classification member
Member2003
2000

Remarks

Former and current CEO forum in the
shipbuilding and offshore engineering
industry
Supervision of AEO periodic review

Classification society for ship operation

Association related to the Korean ministry of trade, industry and energy, andtrade information
Promoting the advancement of ship
management industry

Labor-management relations consultative group
Domestic shipping company
consultative group

Automatic membership based on annual revenue
Global initiative for safety and the prevention of cargo incidents

Consultative group of container carriers
around the world
UK classification society

Consultative group of container carriers
around the world

Classification
member

2000

Norwegian classification society

Member

1997

World largest consultative group for allcontainer / bulk shipping companies

Member

1997

Classification
member

1996

Member1993

Vice President

1993

World tanker shipowners’
association
US classification society

Shipowners’ association in
the Asia-Pacific region

Shipping policy committee within ASA

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

ESG MANAGEMENT

ESG PERFORMANCEAPPENDICES

Greenhouse Gas Verification Statement (Scope 1,2)

109

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT

ESG MANAGEMENT

ESG PERFORMANCE110

APPENDICES

Greenhouse Gas Verification Statement (Scope 3)
Verification Statement on 2022

Scope 3 Greenhouse Gas Emission Report

ESG PERFORMANCE

Verification Target

Verification Limitation

APPENDICES

Gas Emissions (hereinafter ‘GHG Inventory’) of HMM Co., Ltd. for 2022.

Assurance results contain inherent limits of uncertainty inherent in the company's own calculation

ESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Korean Foundation for Quality (hereinafter ‘KFQ’) has conducted a verification of Scope 3 Greenhouse
Verification Scope

standards. Depending on our own calculation standards, significant differences may occur in the

Verification of the Scope 3 greenhouse gas inventory was conducted on emissions from January 1 ,st2022 to December 31st, 2022 for all corporations with financial control of the company in the Category

Analysis of Climate Change-related Risks
and Opportunities

4 scope.

UN SDGs Commitment“WBCSD/WRI, Corporate Value Chain (Scope 3) Accounting and Reporting Standard”, “Guidelines for

SASB Index

Verification Criteria

ESG Response to Customers

Preparation of Environmental Performance Statements (MOE Notification 2021 65)”, and “ISO14064 3”.

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

In addition, the following criteria and coefficients used by the company were applied.
Criteria-ISO14064 1:2019, GHG Protocol Corporate Standard
Coefficient- 2006 IPCC Guidelines for National Greenhouse Gas Inventories- WRI GHG Protocol Quantis Scope 3 Evaluator- IEA (2022) Emission Factors
Level of Assurance

The verification was performed in accordance with the procedures specified in ISO 14064-3 and theassurance level of the verification was performed to satisfy the limited assurance level.
For additional information, please visit our website. For more details, please see the contact
information below.

ESG Team
E-mailWeb sitehmmesg@hmm21.com
http://www.hmm21.com

This verification is not intended to verify the validity of the calculation criteria set by the company itself.
emission calculation results, which may affect comparability.
Verification Opinions

Through the verification process according to the ‘ISO 14064-3’ KFQ could obtain reasonable basis toexpress following conclusion on the Greenhouse Gas Emission Report.

1) Scope 3 emissions for 2022 of compnay were properly calculated according to the verification standards.

2) For Scope 3 emissions, no material errors or omissions were found, except for emissions information not considered within the selected category range.

3) The criteria and process established or estimated/assumed by the company to calculate emissions
were transparently reflected in the internal calculation process.

* Scope 3 Emissions verification Results
4

Category

Upstream Transportation and Distribution

Scope 3 Emissions

643,197

May 25th 2023
CEO Ji-Young Song

Korean Foundation for Quality

HMM OVERVIEWWE CARRY
THE FUTURE
2022 HMM ESG Report

HMM OVERVIEW
ESG MANAGEMENT
ESG PERFORMANCEAPPENDICESESG KPI & Achievements
ESG Data

GRI Content Index
TCFD Index

Analysis of Climate Change-related Risks
and Opportunities
SASB Index

UN SDGs Commitment

ESG Response to Customers

ESG Policy: Integrated Environmental PolicyAwards, Initiatives and Association
Memberships

Greenhouse Gas Verification Statements
Third-party Assurance Statement

ESG MANAGEMENT

ESG PERFORMANCE

Third-party Assurance Statement
Dear Management and Stakeholders of HMM• Confirmation of HMM’s stakeholder participation and materiality assess-

Introduction• Analyses of articles related to HMM’s sustainability management publishedperform a third-party Assurance Engagement of ‘2022 HMM ESG REPORT’• Review of the consistency between the financial performance data and the com-

feasibility of the data contained in this Report. HMM has sole responsibility• Verification of consistency between environmental information disclosure

The Korean Standards Association (“KSA”) was commissioned by HMM to(the “Report”). KSA presents independent opinions as follows as a result offor content and performance contained in this Report.
Independence

pany's audit report/publicly announced data by Certified Public Accountant.

Impactdata and information provided by greenhouse gas verification inspector.

We verified that the Company is monitoring and assessing its impact on the• Examination of internal documents and basic materials.

Has HMM appropriately monitored its impact on the stakeholders?

stakeholders by conducting an enhanced verification of its standard busi-

ness activities. Furthermore, it has been verified that the Company appropriately publishes its findings in the Report.

priate descriptions in this Report as a result of our Assurance Engagement.

dards. Based on data HMM provided, we also confirmed a validity of the con-Assurance Standards and Level

This Assurance Engagement followed the AA1000AS v3 assurance standards

KSA reviewed the draft version of this Report to present our opinions as
deemed necessary. We were not aware of any significant errors or inapproAs such, we present our opinions of the 2022 HMM ESG REPORT as follows.

to provide Moderate Level assurance. We checked the four principles of

Inclusivity

information credibility of the Report. We also reviewed Universal Standard

ability?

inclusivity, materiality, responsiveness and impact in combination withand Topic Specific Standard whether the Report content was created in accordance with the GRI Standards.

Has HMM engaged its stakeholders in strategically responding to sustainKSA believes HMM is aware of the importance of stakeholder participationand is making an all-out effort to establish a process that will increase theirers make informed decisions?

Assurance Methodology

We used the following methods to gather information, documents, and evidence with respect to the assurance scope.

May 2023

Myung Soo Kang

KSA Chairman & CEO

and related organizations to receive diverse feedbacks and opinions.

The assurance scope is from January 1 2022 to December 31 2022 and thestakeholder engagement was limited to the materiality assessment process.

tents related to Universal Standards and Topic Standards.

holders and investors, customers, partners, local communities, government,
Materiality

data as well as financial data was verified, the scope of review concerning

We confirmed that this Report was prepared in accordance with GRI Stan-

participation. HMM has selected stakeholders including employees, share-accuracy and reliability of performance information contained in the report.

sustainability management. While the company’s environmental and social

hmmesg@hmm21.com
http://www.hmm21.com

ed inappropriately.

GRI Standards Disclosurebusinesses and programs, standards, and achievements of the Company’s

E-mailWeb sitedence that HMM's response to significant issues of stakeholders was report-

by domestic media outlets.

an assurance provider. Modifications were made of the Report content if

dermine credibility and integrity as an independent assurance agency.

assurance focused on systems and activities including policies and goals,

ESG Teamreflecting stakeholders’ opinions in the Report. We are not aware of any evi-

assurance on the Report. We have no other contract with HMM that may un-

mercial interest in businesses of HMM apart from undertaking a third-party

with four principles of AA1000AP (AccountAbility Principles) 2018, as well as theinformation below.

We verified that HMM responded stakeholders’ needs and interests through

Assurance Results and Opinions

Assurance Provider performed Type1 assurance that assessed compliancesite. For more details, please see the contact

ment process by sustainability expert.

As an independent assurance agency, KSA does not have any kinds of com-

Assurance Type and Scope

For additional information, please visit our web

111

APPENDICES

Has HMM included material information in the Report to help stakeholdWe are not aware of any significant omissions or exclusions of data that ismaterial to stakeholders. We verified that HMM conducted materiality as-

sessment with issues identified from analyses of internal and external environments and reported according to the result.
ResponsivenessHas HMM appropriately responded to stakeholder requirements and interest in this Report?

The Korean Standards Association (KSA), established as a special corporation inaccordance with the Law for Industrial Standardization in 1962, serves as a knowledge service provider that distributes and disseminates such services as industrial
standardization, quality management, sustainability management, KS certification and ISO certification. The KSA is committed to the sustainable developmentof Korean society as an ISO 26000 national secretary, certified GRI training partner,
AA1000 assurance provider, KSI (Korea Sustainability Index) operator, and UN CDM
DOE (development operational entity), and as an assurance provider of the Korean
government’s greenhouse gas energy target management system.

HMM Co.,Ltd.
www.hmm21.com