GS : ESG Report

GROW SUSTAINABLY, GS

2021 SUSTAINABILITY REPORT

GS is creating new life experiences and planning a better future for our customers.

ABOUT THIS REPORT

Overview

GS Holdings publishes the first sustainability report this year with the aim to share sustainable management activities and achievements with various stakeholders. We follow the ESG taxonomy to ensure the transparent disclosure of our company's environment, social, and governance aspects. In particular, we report on our company and affiliates' management approach (MA) to major issues identified based on our impact on business and social interest. We plan to publish annual sustainability reports as a channel for continuous communication with our stakeholders.

Reporting period

This document reports on activities from January 1 to December 31 2021, and it partly contains issues in the first half of 2022 concerning major activities and achievements. For quantitative performances, three-year data from 2019 to 2021 are presented to read the trends.

Scope of the report

The scope of this report includes the activities of GS Holdings and our subsidiaries. This year's report discloses performances of our energy affiliates including GS Energy, GS Power, GS EPS, GS E&R, and Incheon Total Energy Company. For some particular issues, we also include other affiliates such as GS Caltex, GS Retail, and GS Engineering & Construction given their direct and indirect influence within GS.

Standards and reliability

This report has been prepared in accordance with the Global Reporting Initiative (GRI) Standards' Core Option and meets the four AA1000APs (Inclusivity, Materiality, Responsiveness, and Impact). Financial information presented is based on consolidated financial statements, and non- financial information has been prepared based on the company's disclosure system applicable to the financial year. Notable particulars are noted as appropriate, and details on energy use and greenhouse gas emissions are based on the emissions verification results. To ensure the fairness of the reporting process and the reliability of the content, this report underwent independent assurance by an independent specialist (Korea Management Registrar). The Independent Assurance Statement can be found from the appendices.

Contact

If you have questions or need further information about this report, please contact us using the contact information provided below. We are eager to hear your feedback.

GS Holdings Sustainability Report Enquiries ｜ TEL. 82-2-2005-8106 ｜ [e-mail]

CONTENTS

INTRODUCTION		ESG COMMITMENT
CEO Message	05	Definition of GS Sustainability	16
Overview	06	Sustainability Strategy	17
Network	09	Environment Council	18
Business Portfolio	10	Environment Council History	19
Business Brochure	11	The GS Challenge	20
		52g (Open Innovation GS)	21

ESG FOCUS AREAS		ESG PERFORMANCE
Key Sustainability Issues of GS Holdings	23	Environment		26
Our Business Approach	24	- Environmental Management Policy	27
		- New Green Business Expansion	28
		- Activities to Reduce Environmental Impact	29
		Social		31
		- Human Rights Charter	32
		- Suppliers Code of Conduct	33
		- Mutual Growth		34
		- Social Responsibility	35
		- A Safe and Inclusive Workplace	36
		- A Workplace for Growth	37
		- CSR Activities		38
		Governance		40
		- Board of Directors	41
		- Independence	and Diversity Policy of	45
		Independent Directors	46
		- Ethics and Compliance Management

APPENDIX

Financial Performances	48
Environmental Performances	50
Social Performances	54
Governance and Stakeholders	56
GRI Standards Index	57
Independent Assurance Statement	59

INTRODUCTION

1. CEO Message
2. Overview

1. Network
2. Business Portfolio
3. Business Brochure

5

INTRODUCTION

CEO Message

Overview

Network

Business Portfolio

Business Brochure

ESG COMMITMENT ESG FOCUS AREAS ESG PERFORMANCE APPENDIX

2021 SUSTAINABILITY REPORT

GROW SUSTAINABLY, GS

CEO Message

"GS Holdings leads the change for a sustainable future."

Dear Stakeholders,

I would like to express my sincere appreciation for your interest and support in GS Holdings, and it is a pleasure to greet you through our first sustainability report.

The COVID-19 pandemic and climate change concerns have increased the amount of uncertainty, which has enhanced the importance of ESG and raised the level of its requirement both domestically and internationally. In order to satisfy corporate social responsibility for sustainable growth in addition to financial performance, we have been promoting ESG management in earnest since last year.

With our commitment to environmental responsibility, we made Grow Sustainably a core management value last year. From production to distribution, we strive for sustainable growth through environmental friendliness by reducing hazardous material emissions through efficient resource and energy use, improving consumer experience by presenting sustainable approaches (Improve), and developing new business models with AI, digital, and biotechnology.

In order to promote responsible ESG management, we established the ESG Committee under the GS Board of Directors in March 2021. Since 2022, the existing Environment Council has transformed into the ESG Council to actively address ESG demands from internal and external stakeholders. The ESG Council consists of ESG executives from major affiliates such as GS Caltex, GS Retail, and GS Energy. It discusses and shares ESG policies and implementation strategies. The ESG Committee implemented ESG standards pertaining to the environment, human rights, suppliers, and governance of our company in March, and the ESG Council was able to disseminate and utilize them among affiliates.

We conduct various venture investments with the aim of reaching environmentally sustainable growth. We are expanding our investment in innovative startups both domestically and internationally with the aim of discovering technologies and business models. This would bring innovation in fields such as Bio, Recycling, and Climate Tech through GS Futures, a U.S.-based venture capital, and GS Ventures, established in 2022. Additionally, we launched and operated our own initial venture discovery and development program called "The GS Challenge." in 2021. Using GS's infrastructure, we collaborated with venture firms developing environmentally friendly technologies such as Bio and Climate Tech, and gained valuable experience of coexistence with venture ecosystems while utilizing the resources of conglomerates.

We have enhanced our commitment to ESG management internally and externally through the publication of the sustainability report. We intend to expand ESG management for sustainable growth in the future, and we will provide the contents and achievements of ESG management activities with stakeholders through sustainability report every year. We ask for your continuous interest and encouragement in our efforts to build a brighter future.

Thank you.

GS Holdings President & Chief Executive Officer, Soon-KyHong