HYOSUNG TNC

The global spandex market leader Hyosung TNC has rolled out a variety of textile materials that are “world’s first feats” and “innovative”. Endowed with superior technology, quality and services, the company is leading the global textile market and continues to grow by constantly developing new products and exploring new markets, without resting on its laurels. Notably, the company strives to raise customer confidence and realize customer value by offering customer-centric and differentiated services based on quality and customer-centric management. It is also hard at work creating a virtuous cycle of sustainable renewable textile manufacturing by researching and developing eco-friendly textile materials, propelled by a sense of mission to ensure customer satisfaction and preserve the environment for future generations. As a result, Hyosung TNC has created the world’s first eco-friendly nylon yarn recycled from waste fishing nets, and commercialized the world’s first bio spandex. As a global spandex market leader, it is also the world’s first developer of eco-friendly catalysts necessary for manufacturing polyester textile and Korea’s first to develop nylon material for the inner-liner of fuel tanks used in hydrogen-fueled vehicles. Hyosung TNC has the most number of titles such as “world’s leading or first”. How has the company succeeded in being a global textile market leader? Here are the seven reasons. ① Integrated Textile Company A global textile maker with a wide spectrum of products including high-performance and eco-friendly yards Hyosung TNC is an integrated textile company that consists of three types of chemical fiber yarns, spandex, nylon, and polyester. To meet fast-changing customer needs, it constantly develops and ensures a stable supply of a broad portfolio of products including nylon, polyester and spandex, thereby maximizing customer confidence and satisfaction. As such, the company produces functionally optimized yarns including functional yarn that quickly absorbs and dries sweat and also protects the skin from UV exposure, in addition to sweat odor-reducing yarn, cooling yarn, 99.9% UV-blocking yarn and anti-bacterial yarn. Through these products, various eco-friendly, functional yarns create high added value to the customer as a global integrated textile maker. ② Strong Brand Awareness From global fashion brands to high-performance automobiles Lifestyle yarn “CREORA” is the leading global spandex yarn brand with the largest market share, and the unrivaled integrated yarn brand in South Korea that combines nylon and polyester. The global market-leading spandex that is used in the production of one-third of all stretchy garments worldwide has globally strong brand awareness. The eco-friendly brand “regen” offers sustainable yarns including polyester, nylon and spandex made of recycled waste, along with regen Bio-Based Spandex. regen is closely aligned with multiple global fashion and automobile brands that pursue the value of sustainability and is used in a wide variety of fields, elevating its profile as a global eco-friendly brand. ③ Value Chain Partnership Creating new values through shared growth with various partners and corporate clients Hyosung TNC does more than supply yarns to fashion brands, while it creates new values by building a value chain across the entire fashion industry. It not only works with major global brands to raise market awareness of eco-friendly materials for sustainable growth, but also helps small and medium-sized corporate clients grow their business by penetrating overseas markets and capitalizing on its global network to achieve shared growth. It has organized various programs including online trend expos and seminars to help small and medium-sized corporate clients find overseas buyers as they face headwinds from overseas expos being canceled due to the pandemic. Also, it is working with small fabric and sewing companies to help them expand their business globally. Moreover, Hyosung TNC recommends trends that can best fit each client, and makes customized proposals on development of new fabrics. It then introduces fabrics developed by its partners to major global brands, while constantly seeking to innovate in a bid to grow with its business partners and clients. ④ Fashion Design Center Hyosung TNC presents innovative ideas based on customers’ needs and trends. Hyosung TNC opened its “Fashion Design Center (FDC)”, an in-house R&D center to develop and roll out new products and innovative ideas, based on customer needs of materials and fast-changing fashion industry trends. The company also proposes trends in new materials with a focus on functional and eco-friendly innovative yarns, and promotes these trends on and offline to support the growth of other brands to secure market leadership in both the textile and fashion industries. ⑤ Continuous Innovation Innovation, the core value of Hyosung TNC that drives the company to establish multiple first-ever feats in the industry Owing to developing and producing countless innovative products, Hyosung TNC continues to be committed to R&D investments to continue creating new opportunities and satisfying the needs of consumers and the industry because innovation is never achieved overnight. It requires constant research and dedication over a long period of time. Hyosung TNC is fully aware that all these efforts add up to innovation. The R&D center is at the core of Hyosung’s portfolio that boasts so many “first-ever feats” in the industry, and it is the driving force behind building an innovative future for itself and consumers. ⑥ Brand/Retailer Collaboration Hyosung TNC is involved in active cooperation and creation of synergy effects to practice the value of “togetherness” Hyosung TNC is working closely with multiple brands, retailers and local governments. Particularly, it has been striving to enhance its corporate profile by pursuing active cooperation with global fashion brands, based on a variety of functional yarns. Recently, the company has successfully carried out a recycling project in which used plastic bottles were collected in Seoul and Jeju City and recycled into fabrics named “regen Seoul” and “regen Jeju”, respectively. Hyosung TNC is implementing cooperation projects with different brands based on eco-friendly yarns. As a result, many more global brands, local governments, corporations and non-profit organizations have offered proposals to work with the company. It is striving to relay the value of “togetherness” to consumers as a leader of eco-friendly fashion trends to create new values by working with other brands. ⑦ Global Network Leader Making strides to deliver ‘world’s first achievements’ and a leading global textile brand to reinvent itself as a “lifestyle facilitator” Hyosung TNC continues to secure its growth momentum in the global market by making investments in expanding its production capacity, and marketing and service areas worldwide. It is operating production centers, subsidiaries and branches in various global locations including the U.S., Germany, Spain, Italy, Brazil, Mexico, Japan, China, Taiwan and Vietnam. We have identified the seven key factors for Hyosung TNC to emerge as the industry leader in the highly competitive global textile market. Hyosung will not rest on its laurels with milestones of being the world’s first and leading brand in its market segments. Instead, it strives to bring greater satisfaction to customers and create more added values for them. Beyond building a global textile brand, Hyosung is determined to make innovations for the planet, and become a lifestyle facilitator that can benefit both humans and nature. For future generations and a healthy planet where people and nature can coexist, Hyosung TNC will continue to advance its track record of developing better technologies and responding to the demand and needs of future generations.

"Within the company, we utilize tumblers instead of paper cups. Employing tumblers is one of the most effortless methods to enact a zero-waste lifestyle." At Hyosung TNC, paper cups are nowhere to be found. This is due to their ongoing 'Eliminate Disposable Cups in the Workplace' campaign, aimed at reducing single-use items in daily life. In order to encourage participation in this campaign, employees have been provided with funds to purchase personal tumblers, and disposable items such as paper cups in break rooms have been eliminated. Initiated in May 2021, the campaign continues to this day. Approximately 190,000 paper cups were used in Hyosung TNC offices during 2020, which equates to an annual emission of roughly 2 tons of carbon dioxide. The collective efforts of individuals willing to endure minor inconveniences can result in a staggering reduction of 2 tons of carbon dioxide emissions – is that not truly remarkable? We gathered firsthand impressions from three employees actively participating in eco-friendly campaigns at a company that vigorously promotes environmentally conscious workplace culture. Q. What were your initial thoughts upon hearing about the 'Eliminate Disposable Cups in the Workplace' campaign? Employee A(): I was intrigued by the prospect of directly participating in 'ESG activities', which have been a rising issue. Although ESG activities are a global direction, I thought they had little direct relevance to my everyday life. However, through the in-house campaign, I found it fascinating that I could naturally contribute to ESG activities in my daily life and closely experience ESG endeavors. Employee B(): I knew that ESG activities were beneficial for the environment, but I didn't think there would be any direct benefits for me. Protecting the environment inevitably entails some inconvenience for people. But by using a tumbler instead of paper cups, I was able to gain financial benefits. The company could reduce the cost of purchasing disposable cups, and I could receive discounts at cafes by using a tumbler. I thought it was a good campaign since it reduced disposable cup expenses while directly contributing to environmental protection. Q. Were there any concerns among employees when they first heard about the campaign? Employee A(): When I first learned of the company's plans for the campaign, several concerns came to mind. The main reason we had failed to reduce the use of disposable items was the need to accept personal inconveniences. To carry out the campaign, we had to allocate sometime during work to wash cups and prepare mugs for client visits. Although seemingly trivial, changing our daily routines required us to develop a sense of purpose and adjust our mindset for participating in the campaign. Considering the negative impact of disposable items and the environmental benefits of using tumblers and mugs, I eventually decided to practice it. Q. What is the most significant change you've noticed since implementing the 'Eliminate Disposable Cups in the Workplace' campaign? Employee C(): Naturally, the amount of waste from disposable items has decreased considerably. In the past, I used 2-3 paper cups daily, but since the campaign, I've consciously avoided not only paper cups but also other disposable items. I initially thought of it as a small habit-changing campaign, but it seems to have gradually altered my environmental awareness. Q. If your environmental consciousness has changed, do you also practice this outside of work? Employee B(): I use a tumbler when I go to the gym for exercise, and I actively try to use a tumbler when visiting cafes outside of work. Some cafes even offer discounts when using a tumbler. In such cases, I feel proud to contribute to environmental protection while enjoying the added benefit of a coffee discount. Employee C(): Since becoming more aware of disposable items, I realized I use many of them when ordering delivery food. So, when I order food at home, I indicate 'no need for disposable items' in the request section. Washing dishes after eating may be a bit bothersome, but considering the impact these habits have on the environment, I'm happy to practice them willingly. Q. Your participation in the in-house campaign has contributed to reducing annual greenhouse gas emissions by 2 tons. You must be very proud. How do you feel about this achievement? Employee A(): Although it may seem like a small practice, it was even more meaningful that we could easily contribute to preventing environmental destruction just by participating. Before the campaign, I was well aware of the seriousness of environmental destruction through articles and documentaries addressing issues like the Amazon rainforest deforestation and the risk of polar bear extinction. However, I didn't actually practice environmental protection for reasons like lack of awareness or inconvenience. But with the company's active encouragement to use tumblers, a simple action, I was very proud to contribute to reducing greenhouse gas emissions. I also found it rewarding that small practices from my colleagues came together to achieve such significant results. Employee B(): The activity I started for participating in the campaign has now become my habit. I used to find washing tumblers bothersome, and carrying them around inconvenient, sometimes forgetting them, but now I always carry one when I go out. In addition to tumblers, I started using reusable items like hand towels instead of disposable ones. Practicing these habits, I feel like I have become more diligent than before. I am very proud to have recognized the necessity of environmental protection through the in-house campaign and to practice it even outside the company. Q. What other eco-friendly campaigns can be carried out in the workplace? Employee C(): I think implementing a 'Reuse One-sided Paper Campaign' would be beneficial. There is a lot of paper used only once and then discarded in office life, which feels wasteful. Actively encouraging the use of the blank side of printed pages could help protect the environment. Additionally, starting with small actions like unplugging unused power cords or using stairs for short-distance travel within the building could lead everyone to practice them, just like the 'Eliminate Disposable Cups in the Workplace' campaign. In addition to these efforts, Hyosung TNC has expanded the 'regen® Upcycling Campaign' to its business locations nationwide this year. The 'regen® Upcycling Campaign' is a PET bottle collection campaign where employees bring PET bottles, which are then exchanged for goods and bags made from Hyosung TNC's recycled polyester fiber, regen Polyester. Last year, about 9,000 PET bottles were collected, and this year's goal is to collect 15,000. The carbon reduction effect of this campaign is similar to the amount of carbon dioxide absorbed by approximately 70 pine trees in a year. There is a theory called the 'butterfly effect,' which states that a small flap of a butterfly's wings can cause a typhoon on the other side of the earth. Although it is currently a campaign limited to Hyosung TNC employees, their small efforts, when combined, can someday instill a belief in eco-friendliness among all members of every company. As this culture becomes established, wouldn't it lead to all people around the world actively practicing environmental protection? Today, as they dream of an eco-friendly future, Hyosung TNC employees continue to participate in eco-friendly campaigns.

Recently, the phenomenon of "eco-wakening" has been spreading, especially on social media. This trend signifies the increasing awareness and concern of people towards the destruction of nature. According to the World Wildlife Fund (WWF), environmental awareness and a sense of urgency have rapidly spread, with keywords such as "climate crisis," "biodiversity," "marine litter," and "environmentally friendly consumption" posted in YouTube comments. The public, now highly aware of environmental issues, seeks to consume products from "ethical companies" that go beyond being eco-friendly to becoming eco-necessary. In response to this demand, many companies are practicing ESG management. There are often companies that make not only genuine efforts to develop eco-friendly products but also lead ESG-compliant businesses to exert a positive influence, such as Hyosung. Hyosung goes beyond value-driven ESG management for social impact and creates eco-necessary products based on exceptional technology. Hyosung's technology is being utilized to achieve symbiotic purposes, specifically, to ensure that the future generations live in a more comfortable environment. Based on this technology, Hyosung aspires to reply to the needs of every generation’s future under Hyosung Group's ESG brand, RE:GEN. Hyosung achieving sustainable growth under the RE:GEN brand, with the purpose to ‘Reply to Every Generation’s Future For the sake of the future, it is crucial to confront reality first. In order to solve the global problems facing our generation today, innovative technologies are necessary. At the same time to enjoy current prosperity and wish for the well-being of future generations, these technologies must consider their environmental impact. What we need is an "ESG technology for every generation's future." Therefore, Hyosung is pursuing a realistic ESG strategy that combines Hyosung's technology to solve practical problems that will impact all generations' future. As the first step of this strategy, Hyosung Group has announced the RE:GEN branding, an ESG brand for the group. RE:GEN, which means "Reply to Every Generation's Future," is the direction that Hyosung intends to take in the future. In order to respond to a sustainable future for all generations. Hyosung is not simply engaging in ESG activities that are distinct from business, but continuing efforts in constant innovation and technological development based on its technological DNA. Hyosung aims to become a company that proposes innovative solutions for a better future for all generations. Hyosung's dedication to pursuing sustainability for every generation’s future Hyosung is pursuing sustainability through resource conservation and recycling, in the form of a circular economy. A circular economy cannot be created solely by Hyosung, but it rather requires collaboration among all stakeholders, from the supply chain to raw materials and end-users in establishing a perfect cycle. Hyosung is leading the way in this circular economy by building an eco-system with the goal of zero waste in this cycle. Carbon neutrality aims to increase the absorption rate of emitted carbon dioxide, ultimately reducing the actual amount of carbon dioxide emissions to zero. This carbon neutrality is achieved through various efforts ranging from resource conservation to energy efficiency throughout the entire production and consumption process. Hyosung is researching, developing, and innovating to minimize carbon emissions in its production processes and manufactured products, for the purpose of carbon neutrality. The scarce resources of the Earth we live in are rapidly depleting, and conventional fossil fuels and nuclear power are destroying the environment. New energy, which can replace them, such as renewable energy, is an essential field that must be developed for the future of the next generation. Sustainable new energy technologies cannot be achieved in a single moment. However, Hyosung’s DNA is essentially based on its efforts to achieve results through consistent efforts until hydrogen and renewable energy can replace fossil fuels and nuclear power. Hyosung aims to establish a value chain that covers materials, components, operational technologies, and distribution systems to commercialize and increase the efficiency of hydrogen and renewable energy. In addition, Hyosung strives to develop innovative technologies that minimize energy, resource usage, and harmful elements in all cycles of production and operation to reduce hazardous elements and conserve resources. Hyosung’s excellent technology in ESG management Hyosung TNC has pioneered environmentally friendly products, resulting in development of the wide range of eco-friendly polyester, nylon and spandex products domestically. Through the eco-friendly fiber brand regen, Hyosung TNC aims to create a virtuous eco-cycle for a more sustainable future. Hyosung TNC’s eco-friendly polyester yarn, 'regen Polyester,' utilizes useful components from discarded PET bottles, while 'regen Nylon' is produced by recycling discarded nylon or collecting discarded fishing nets to regenerate into environmentally friendly yarn. In addition, Hyosung TNC has developed 'regen Spandex' made from recycled spandex and regen Bio-Based Spandex' made from natural raw materials. Hyosung's environmentally conscious 'regen project' promotes a resource circulation system by recycling PET bottles collected from local governments such as Seoul and Jeju into recycled fibers and has gained recognition from consumers for the company's positive impact on the environment. Hyosung Advanced Materials has developed automotive carpets using recycled BCF (Bulked Continuous Filament) to reduce industrial waste and industrial Bio PET made from plant-based Bio EG and Bio TPA. Additionally, Hyosung Advanced Materials has developed an eco-friendly 'Dip' that does not use resorcinol or formalin, which not only reduces harmful substances within the production process but also extends the tire’s lifespan. The lyocell tirecord made from cellulose extracted from wood, reduces harmful waste generation, thereby preventing air and water pollution. Furthermore, the domestically developed ultra-lightweight high-strength carbon fiber 'TANSOME®' and steel cord contributes well to reducing carbon emissions by improving vehicle fuel efficiency. Hyosung Heavy Industries, a leader in domestic energy storage systems (ESS), supplies ESS for various purposes such as renewable energy integration, frequency regulation, peak reduction, and independent microgrids. The utilization of high-voltage direct current transmission (HVDC), which converts the high-voltage AC power from power plants into high-efficiency DC power, have opened up the possibilities for expanding the supply of renewable energy and increased the cross-border power interconnections. Hyosung Heavy Industries, which operates and constructs 700-bar hydrogen vehicle charging systems for next-generation eco-friendly hydrogen vehicles, has increased the convenience of hydrogen vehicle operation by supplying them to various places such as Hyundai Motor's Namyang Research Institute, Ulsan & Korea Expressway Corporation, and Hyundai Mobis. Additionally, Hyosung Heavy Industries has developed a smart grid technology, called the static compensator (STATCOM), which compensates for the relatively unstable power generation and supply of renewable energy. Hyosung Heavy Industries is the only company in Korea to possess the commercialization technology of STATCOM. The reason why Hyosung Chemical's polyketone brand, POKETONE™, is attracting more attention is because of its eco-friendliness. It captures carbon monoxide, the main culprit of air pollution, to create new resources. In addition, every time one ton of polyketone is produced, it reduces approximately 0.5 tons of carbon monoxide. Through the development of durable and eco-friendly technologies, Hyosung Chemical is contributing to reducing environmental pollution. Hyosung’s dynamic ESG activities Hyosung Group strives for sustainable growth from a long-term perspective, which is the ultimate goal of ESG management, making efforts to have a significant impact on social and environmental benefits. Hyosung aims to systematize and commercialize its technology to create a cycle structure that leads to environmentally friendly actions from raw materials to end-users. Moreover, Hyosung Group does not stop here. With its ESG brand RE:GEN, Hyosung seeks to show meticulous interest in many things we take for granted and execute meaningful projects for the future of the next generation. Furthermore, the future we dream of cannot be achieved solely by individual efforts. Hyosung seeks to discover RE:GEN Alliance brands that share its vision, and contribute practically to the world for better values and a better future together. Hyosung will support the growth and coexistence of the companies that have formed an alliance as a guaranteed brand of Hyosung RE:GEN Alliance. By thinking and executing for the future of the earth through an alliance, then a greener and more sustainable future will come. If the ocean becomes polluted, the fish and creatures within it disappear, causing the collapse of the marine food chain. Hyosung Group aims to take the first step towards a journey that benefits all generations and species beyond borders. To do so, Hyosung will become a RE:GEN GUARDIAN for biodiversity conservation and kick off the Seagrass Forest project. Under Marine Ecosystem Law, seagrass has been designated as a marine protected species and is recognized as a prominent source of blue carbon that plays a crucial role in absorbing carbon within the marine ecosystem. In order to conserve the habitat of these seagrasses, Hyosung has contributed to the Coastal Village Mutual Cooperation Fund. The fund that Hyosung contributed to will be used for various marine activities, such as "monitoring the distribution and habitat of seagrasses," "transplanting seagrass to locations for them to prosper," and "collecting abandoned fishing nets in the ocean." Furthermore, Hyosung is continuing its efforts to preserve the marine ecosystem by developing recycled fibers from discarded fishing nets. Hyosung's ESG activities are carried out in a practical and concrete way. Rather than simply offering abstract words such as symbiosis and sustainable future, Hyosung plans to contribute to creating a future where everyone can live together by developing tangible technologies that can be implemented directly. Hyosung will strive not only to provide convenient technologies for the current generation but also to create an environment where future generations can live with nature. With RE:GEN, which conveys Hyosung's unique philosophy and vision, together with technology, we will respond to the future of all generations.

Mankind and nature have always coexisted. Nature has always been an integral part of human existence and humans have been a part of nature’s history. Because mankind cannot exist without nature, mankind must find a way to coexist and prosper with nature. In order to create a natural environment where sustainability is guaranteed, the ability of individuals, enterprises and the world to coexist, the value of ‘togetherness’ is now more important than ever before. Many people around the world today are working feverishly to combat climate change on multiple fronts. All these human efforts are being made for the sake of one goal: ‘the coexistence of mankind and nature’. This goal is the very definition and objective of ‘living well together by helping each other’. There is a company that practices this value of ‘togetherness’, the very meaning of coexistence. That company is Hyosung TNC! According to the UN, the fashion industry is responsible for about 8-10% of CO2 emissions, the main cause of climate change. Hyosung TNC, which manufactures textile yarns for the fashion industry, is the world’s top maker of spandex. As a responsible member of the industry, the company has been introducing many types of eco-friendly products over the years with the hope of contributing to the mitigation of the climate change crisis. The brand that symbolizes the company’s efforts in this regard is regen®, a recycled yarn brand. To produce and supply regen®, Hyosung is collaborating with a slew of fashion companies and organizations and creating the value of mutual growth. regen® is not the only example of the sustainability drive being pursued by Hyosung TNC. Hyosung TNC is ceaselessly researching new ways of reducing carbon emissions throughout the lifecycle of its products. Today, we at Hyosung TNC intend to fully disclose the details of our environmental activities. Transition to environmentally-friendly fuels Hyosung TNC’s factories were able to reduce their greenhouse gas emissions significantly after switching to low carbon energy sources. The factories receive waste heat (a renewable energy source) from nearby household waste incineration centers, after which biogas generated by the anaerobic digestion tank of the wastewater treatment plant is fed into the boilers. The company’s Gumi factory has reduced its greenhouse gas emissions by replacing B-C oil with LNG and LPG gas. Until recently, B-C oil was widely used in the manufacturing sector because it was cheap and had high energy efficiency, but it was blamed for polluting the environment because it produced diverse pollutants including soot. Therefore, the Gumi factory gradually increased the substitution of B-C oil, the source of so many pollutants, and reached a milestone in November 2019 when it stopped using it completely. Hyosung TNC is paving the way forward as a global leader that considers the value of the environment, rather than as one that thinks only about minimizing costs to boost efficiencies. 1) Reducing GHG emissions through improved processes and the construction of a smart energy platform The environmental investment plan for each factory is the one thing that Hyosung TNC never forgets to prepare every year. The company is dedicated to reducing carbon emissions through energy savings that are concretized in the yearly environment investment plans. Every year, Hyosung implements the environment investment plan thoroughly and strictly according to the schedules set forth in the plan. Manufacturing processes are improved to cut down on energy usage rates, while equipment like motors, freezers and air compressors are replaced with high efficiency ones. In addition, in 2020, Hyosung TNC’s Daegu factory participated in the ‘Seongseo Industrial Complex Smart Energy Platform Construction Project’ launched by the Korea Industrial Complex Corporation. In this project, twenty instruments were installed in facilities that consume large amounts of electricity, and a Factory Energy Management System (FEMS) was set up in the factory. The FEMS is a system that enables energy to be used effectively in a factory thanks to the application of information communication technologies and computing software. It analyzes how much energy is used by a particular facility, forecasts the level of energy demand, and calculates the appropriate energy usage rate and costs. With the deployment of the FEMS, Hyosung TNC is able to operate its facilities more efficiently because it can determine in real time where and when energy is used and then make adjustments to the amount of energy to be supplied. 2) Building a GHG inventory at global factories Depending on the nature and scope of emission rates, greenhouse gas emissions can be classified into Scope 1 (direct emissions), Scope 2 (indirect emissions), or Scope 3 (other emissions). Hyosung TNC not only monitors and manages the scope 1 greenhouse gases directly emitted by its factories, but also manages indirectly emitted scope 2 greenhouse gases. To build an inventory of greenhouse gases at its global factories, and not just its factories in South Korea, the company calculates scope 1 and scope 2 emission rates at the factories run by its subsidiaries in China (Hyosung Spandex Jiaxing Co. Ltd.), Republic of Türkiye (Hyosung Istanbul Tekstil Ltd.), and Vietnam (Hyosung Dong Nai Ltd.). In the case of its domestic factories, Hyosung TNC even calculates its scope 3 emission rates (i.e. emissions across the entire value chain) voluntarily and reports the data to the Carbon Disclosure Project (CDP). With the aim of building greenhouse gas inventories and controlling the emission rates of all its global factories, the company is planning to gradually introduce the calculation of scope 3 emission rates to its other factories. By managing indirect emission rates and emission rates at its overseas subsidiaries, Hyosung TNC is working hard to reduce greenhouse gas emissions. 3) Gradual transition to environmentally-friendly businesses As mentioned earlier, Hyosung TNC is a global fabric producer that supplies, in close collaboration with global fashion brands, environmentally-friendly yarns made from recycled materials which are sold under the brand name regen®. Through ceaseless research and development activities, the company is also introducing an entire product lineup that will expand the functionalities of regen®-based products. For example, it supplies recycled yarn made from post-consumer waste materials (waste materials discarded by end consumers) such as PET bottles and used fishing nets, and pre-consumer waste materials (waste materials generated before a product reaches the consumer), with the latter being a by-product of the manufacturing process. Recycled yarns not only help to reduce the amount of waste buried in landfills, but also lower the use of petroleum resources during the production of normal yarns, which in turn naturally aids the environment because lower petroleum resource usage means lower carbon dioxide emissions and energy usage. Hyosung TNC is also leading the pro-environmental movement of the industry by manufacturing bio-based products, which require less water and generate less carbon than conventional yarns and are made from non-edible ingredients. 4) Spreading a pro-environment culture within the company In 2021, Hyosung TNC’s main office in Mapo-gu launched a campaign to reduce the use of disposable products that are indiscriminately used and thrown away in the office. This campaign involved the participation of all executives and employees working at the main office. Today, employees use their own personal tumblers (slightly less handy but longer lasting) rather than the disposable paper cups. By using personal tumblers as a substitute for easy-to-discard paper cups, the company anticipates that this will translate into a greenhouse gas emission rate reduction of around two tons per year, while costs can be saved for roughly 190,000 paper cups that were used in the main office each year. Another notable campaign is the ‘Internal campaign to reuse regen’ launched in 2022. For this campaign, which is now in its second year of operation, special bins have been installed in the company’s main office building in Mapo-gu to collect discarded PET bottles, which are then recycled and used as a material for making environment-friendly fashion items for distributing to employees. The PET bottles discarded in the office are also collected and recycled as Hyosung TNC’s environmentally-friendly regen® polyester yarn, which is used to make bags and t-shirts for the employees. In 2022, 8,831 PET bottles were collected - an effect equivalent to 37 pine trees absorbing carbon dioxide for thirty years. The campaign is continuously improving the brand awareness of regen®, the company’s flagship environmental brand, as well as cultivating a positive mindset among employees regarding their personal participation in the recycling of resources. Hyosung TNC also organizes an annual ideas contest with the aim of finding novel ways to reduce energy consumption and greenhouse gas emissions, in the hopes that increased awareness of the issue among employees could lead to deeper cuts in the company’s carbon dioxide emission rates. This ideas contest has produced some tangible results. For example, Hyosung TNC’s Nylon Polymerization Team at the Ulsan factory proposed the innovative idea of raising the production density of thickeners in the recovery process to reduce the use of energy. If this idea is realized, greenhouse gas emissions could be reduced by up to 8 tons in a single year, which is a big motivator for Hyosung TNC to review this idea in earnest. We live in an era of rapidly changing times and trends which inevitably lead to the production of huge amounts of disposable items, trash, and fast fashion (SPA). The resulting pollution poses a threat to the health not only of everyone now living on Earth but also to future generations of mankind. As if the pollution of land is not enough, the plastic waste that seeps into the oceans is creating huge offshore islands, and as the plastic exposed to sunlight cools, it discharges greenhouse gases. These greenhouse gases then reflect the sunlight back to the surface of the earth, making our world even hotter. After floating on the seas for a long time, waste materials eventually disintegrate into tiny pieces, which are then eaten by sea creatures who mistake them for food, with often disastrous consequences. Ultimately, these waste materials pass through the food chain and end up in the bodies of humans. This is a major problem that cannot be resolved through the efforts of one person or one organization alone. The problem requires the interest of the wider international community and commitment and efforts from all of us. This is why Hyosung TNC, as the world’s top producer of spandex, seeks to play an active role in tackling the problem with a sense of responsibility. In tune with its reputation as a global top player, Hyosung TNC will design a sustainable future for all generations based on its environment-oriented business, so that everyone can welcome a future in which they can live safely in a clean environment. At every moment, Hyosung TNC considers sustainable progress for all generations, present and future. Indeed, the choices we make as a business will always place “togetherness” in our pursuit of valuable customers like you who yearn for a brighter future.

“Green marketing, ESG marketing, a good consumption that incorporates environment-friendly aspects, meaning-out consumption”. The above buzzwords are always included in conversations about marketing and consumption trends today. As consumers are more directly experiencing the detrimental effects of climate change, their awareness of and interest in environmental issues have increased. The MZ generation has risen as the main active consumer segment, pursuing an environment-friendly lifestyle and prioritizing consumption habits or activities that minimize the footprint on earth. A growing number of people, including the next generation who believe in the importance of sustainable value consumption for the planet, are bringing about change, leading companies to assume more social and ethical responsibilities. In line with the trend of pursuing value consumption, companies are pursuing ESG management for the sake of the next generation and the environment, while also making substantial investments when it comes to research and development for sustainable growth engines. Also, an increasing number of people are taking small conscious steps in their daily lives, such as drinking from tumblers, using reusable mugs instead of disposable paper cups, and being less wasteful with consumables, such as food. These individual efforts and small gestures in practice are aggregating into a social trend, with companies also implementing sustainable management. What could be another example of this trend of behaving with a more environmentally conscious mindset? Clothing is one example. We wear it every day and it is indispensable in our lives. An increasing number of consumers are checking to make sure the fabrics used in articles of clothing are environment-friendly before purchasing them. How and where can we purchase clothing made from environment-friendly fabrics so as to contribute in a small way to environmental protection? We at Hyosung TNC can teach you how it’s possible. regen Ocean Nylon, the rebirth of waste fishing nets Waste fishing nets that threaten the marine ecosystem are recycled and made into environment-friendly fiber. In 2007, Hyosung became the world’s first company to succeed in commercializing the technology for making environment-friendly fiber from fishing nets that otherwise would have added to the destruction of the marine ecosystem. Back in 2007, environmental issues were not a top priority in people's minds but Hyosung was already at the forefront of developing environment-friendly products for the future generation. This is how Hyosung successfully launched the regen Ocean Nylon in the global market. Today the fashion industry has emerged as a strong advocate of the environment, and Hyosung has become a company celebrated by the industry for its environment-friendly products. Global fashion brands have taken heed of the growing consumer interest in ‘meaning-out consumption’ and the environment, and in response, they have announced plans to use eco-materials, including recycled materials. In the future, more apparel brands will switch to environment-friendly materials, with the recycle markets and upcycle markets both forecasted to expand. The pro-environmental shift gaining traction in the fashion industry is about to go mainstream in full scale. As an all-around materials company, including textiles, that makes the yarns essential for producing environment-friendly clothing, Hyosung TNC is dedicated to creating high-value products needed in our daily lives using recycled resources. regen Ocean Nylon is a prime example of this dedication. How great is it that by just using products made with environment-friendly materials that convey Hyosung’s genuine commitment to the environment in our daily lives, we have a role to play in the global campaign to save the earth? How is regen Ocean Nylon produced? In 2007, Hyosung TNC became the first company in the world to commercialize high-quality nylon made from discarded fishing nets. The fact that it is an environment-friendly yarn is impressive enough, but the quality of regen Ocean Nylon is also outstanding. Just how do waste fishing nets become Hyosung’s recycled nylon of the highest quality? Recycled nylon is made by flattening out the collected waste fishing net, cutting them into little pieces, washing them thoroughly to remove any impurities, and then restoring them into recycled nylon pieces. To set up a stable process for recycling this resource in South Korea, Hyosung TNC entered into a business partnership with Busan City and NETSPA and is presently producing regen Ocean Nylon by recycling discarded fishing nets. Busan has collaborated with local governments to establish a system for sorting out reusable fishing nets. While NETSPA is tasked with shredding and washing the sorted fishing nets, Hyosung takes over the highly sensitive and difficult process of depolymerization to produce the regen Ocean Nylon. The process of producing regen Ocean Nylon starts with collecting discarded fishing nets and includes several different impurity-removal steps, and thus is a costly and laborious endeavor. But at the end of the day, it contributes to reducing carbon emissions and preventing ocean pollution. The manufacturing process also lowers carbon dioxide emissions since it reuses resources, produces a high-value product through virtuous recycling, and has a positive footprint on the environment. Despite the complex business process and difficult preprocessing steps, regen Ocean Nylon was conceived owing to Hyosung’s determination and relentless efforts to bringing an environment-friendly nylon to the market. Exemplary definition of virtuous recycling: a culprit of ocean pollution is now being used to clean up the ocean. If you want to reduce ocean trash and protect the marine ecosystem, remember regen Ocean Nylon, the high-quality recycled nylon brand from Hyosung. Wearing clothes made from eco-friendly recycled nylon that substitutes traditional nylon can be your first step for reducing carbon emissions. Recycled nylon is more effective in protecting the environment because 1 kg of recycled nylon fiber can reduce 6.7 kg of CO2 which is well-known as a major greenhouse gas. However, Hyosung will not settle for just being a producer of recycled nylon. It is taking further steps by implementing and executing measures designed to protect the environment. It not only sponsors ocean cleanup activities of ocean conservation groups like ReDi and Ocean Care, but also produces lift bags, buoys, and collection nets made with Hyosung’s ocean-friendly recycled yarn (while also providing customer support). Hyosung and ReDi jointly held a plogging (a portmanteau of "plockupp" in Swedish meaning "pick up the grains" and "jogging" which blend to denote the act of picking up trash while jogging) event on the banks of the Hangang River, as part of Hyosung’s Sevit ESG Color Festival's environmental cleanup program. This is just one example of how Hyosung is venturing beyond just producing recycled nylon and actively supporting various ocean cleanup activities. As a producer of recycled environment-friendly fibers, the company is at the vanguard of the environmental movement. At the same time, Hyosung is also spreading the culture of green diving through environment conservation groups, to actively support the ocean cleanup efforts nationwide. These efforts show Hyosung’s devotion to the mission of environmental protection. Hyosung's environmental activities do not end here because the company announced that it is set to sponsor apparel made with OBP-certified recycled yarn at the International Marine Debris Conference, further showing the company's commitment to resolving marine environmental issues. This is why we are more excited about the milestones that will be set in the coming years by Hyosung in the arena of marine environmental protection. Through the process of developing and manufacturing recycled nylon, Hyosung is protecting the environment, while also exploring diverse approaches to making the oceans a lot cleaner for the next generation. Plastic and marine pollution are serious issues that are not far removed from us. Insofar as Hyosung is exerting voluntary efforts to safeguard the environment for our children’s future through continuous research and investments, shouldn’t everyone play a small role in our daily lives for the environment? To make sure the future generation will be able to live on a cleaner planet that does not get more polluted, Hyosung will relentlessly pursue its sustainable development of materials, with the aim of developing and researching materials for the next generation to create a sustainable future for them. In addition to sustainable material development, Hyosung, through its ESG brand RE:GEN, intends to earnestly fulfill its responsibilities as a company for the sake of nature, for the planet, and for the future of everyone inhabiting it. It is up to us to create a future where people, Earth, and all living organisms can coexist and all the possibilities on Earth will bear fruit only if we act together for the common good. To endow the future of the world we dream about to the next generation, we at Hyosung will stay committed to its promises and fulfill them.