Environmental Management Policy

LX International has formulated its environmental management policy that shapes an environment where human and nature coexist. A variety of activities will carry on to ramp up sustainable environment according to the following policy.

1. Compliance with environment laws

We strictly comply with local and overseas environmental laws and agreements, and work together with local communities and customers to shape a sustainable society and environment.

2. Environmental management promotion

We establish a well-organized environmental management process to manage company-wide environmental data including our subsidiaries, as well as to enhance them.

3. Environmental impact minimization

We preserve biodiversity in the regions where we operate, and minimize our environmental impacts such as pollutants.

4. Eco-friendly culture dissemination

We train our employees to understand the significance of preserving the environment and engage in activities to improve it.

5. Environmental data disclosure

We publish a sustainability report to disclose our environmental data in a transparent manner, thereby earning greater trust from our stakeholders.

Mid- to Long-term Environmental Management Goals

LX International has defined the directions for environmental management and the key strategies that will guide us through the systematic management of our environmental impacts, and the subsequent key tasks have been derived to attain the strategic goals. These tasks are being executed in line with the goals and plans over the short- mid- and long-term periods. Going forward LX International will make the all-out efforts to deliver the tasks and achieve our strategic goals, thereby taking our environmental management capabilities to the next level, and advance our entire environmental management system.

Legal and Regulatory Compliance Strategy

We have a strategy in place to build an infrastructure designed to preemptively respond to any international environmental regulations, which is a crucial step for launching new business platforms and solutions, and pioneering new markets.

We conduct periodic audits to ensure complete compliance with any environmental laws and regulations. This is to maintain consistency with any environmental policies for sustainable management, and to ensure we are strictly following the appropriate methods and procedures to pass on providing a better environment for future generations.
We conduct robust safety and environmental audits twice a year at our headquarters to verify registration and management of chemicals, the appropriateness of environmental permit registration and renewal, the installation and management of environmental protection facilities for air and wastewater, review and self-measurement of the emissions of major pollutants, the reporting of a legal performance, the recycling activities of waste, and whether the subcontracting reports have been filed for hazardous chemicals handled by our partners.
(Relevant Laws and Regulations: Chemical Substances Control Act, Act on the Registration and Evaluation of Chemicals, Waste Management Act, Framework Act on Carbon Neutrality and Green Growth for Coping with Climate Crisis, etc.)

Sustainable Procurement

LX International is committed to minimizing its environmental impact through the procurement of environmentally sustainable products, aiming to contribute to a healthier environment and an enhanced quality of life.
To foster a culture of sustainable consumption, we have established internal standards for Sustainable Procurement in line with international ESG practices, and we are actively working to expand our use of eco-friendly products across all business operations.

[Definition of Environmentally Sustainable Products]

① Products certified with the Korea Eco-Label in accordance with the Framework Act on Environmental Technology and Industry

② Excellent Recycled Products (GR Products) certified under the Act on the Promotion of Saving and Recycling of Resources

③ Low-Carbon Certified Products in accordance with the Act on the Promotion of Purchase of Green Products

④ Products certified under newly introduced environmental certification programs by public institutions, other than those listed above

⑤ Other products that meet the following environmental criteria and are approved as environmentally sustainable by the company’s internal experts:

1) Products free from hazardous substances, including the six restricted substances under the RoHS Directive, asbestos, and other environmentally harmful materials

2) Products that support waste reduction through packaging minimization and reusable or returnable containers

3) Products that emit significantly fewer toxic or polluting substances into air or water during use or disposal, and pose minimal risks to ecosystems and human health

4) Products with low energy consumption and reduced global warming potential throughout their life cycle

[Green Procurement Performance]

LX Pantos, a subsidiary of LX International, is implementing Green Procurement by replacing raw materials in existing products with environmentally friendly alternatives.
Key items include recyclable cushioning materials and recycled stretch film.

Environmental Management Organizational Structure and Their Functions

LX International built newly environmental system by establishing the organization dedicated to environmental management, including the subsidiaries. And we are trying to minimize our environmental footprint over the areas of toxic substances, waste, air pollutants, resources management. Also, we are expected to monitoring our environment performance by this integration data management, complying with the laws and regulations, increasing communication with the stakeholders.

Environmental Impact Data Management

Recycling of Wastes

Improving the Eco-friendliness of Packaging Materials

LX Pantos, our subsidiary, is expanding various activities within its business process to fulfill environmental management. We are leading the way in eco-friendly logistics by changing 80% of our product materials from vinyl and plastic to eco-friendly packaging materials such as paper cushioning materials, bubble paper, and paper tape. We are also continuing our efforts to reduce greenhouse gas emissions by changing some of our domestic truck transportation to rail transportation, which is an eco-friendly transportation method.

Environmental Management for Partner Companies

We strive to fully evaluate the environmental management capabilities of our partners when selecting their suitability as a new business.
Our evaluation and support for these partners is an important process to emphasize sustainable management and environmental responsibility, as well as to identify and support our partners that align with our environmental preferences.

• 1. We consider companies with environmental responsibility and management capabilities.
• 2. We formulate the evaluation criteria such as compliance with environmental regulations, environmental risk, energy efficiency, waste management, and the prevention of environmental pollution.
• 3. We evaluate the environmental management of our partners based on the information collected for the evaluation. We may engage in additional activities such as paying visits to the sites and conducting interviews if necessary.
• 4. We may consider future management plans and support for the benefit of improvement and recommendations if necessary.

Climate Change Response Activities

LX International has developed a carbon neutral roadmap using science-based targets for mitigation (SBTi) as a guide to meet the goal of limiting the global average temperature increase to 1.5℃ set out in the Paris Climate Agreement. To achieve our 2050 net-zero target, we are committed to managing greenhouse gas emissions across our value chain, while simultaneously enhancing our environmental and social impact by expanding our portfolio of environmentally sustainable businesses.

Reductions