2025-26 Hanmi Pharm ESG Report

ENVIRONMENTAL

Climate Change Response & Environmental Management

Ⅰ. Governance

Hanmi Pharmaceutical operates the hEHS Committee, led by the CEO, for clear and distinct environmental management, including carbon neutrality and climate change response. The hEHS Committee, established in 2019 as the first EHS (Environment, Health, Safety) overarching organization in the Korean pharmaceutical industry, identifies negative factors and opportunities related to environmental risks such as carbon neutrality and minimizing environmental impact, and establishes period-specific strategies and plans. Hanmi Pharmaceutical emphasizes the role and responsibility of management for effective carbon neutrality and climate change response. The CEO has overall responsibility and authority for final decision-making on environmental management matters and serves as the chairman of the hEHS Committee.
Furthermore, major environmental management issues are regularly reported to the Board of Directors at least once a year. In 2025, information such as greenhouse gas emission status (SCOPE 1&2&3) was reported, and the company plans to establish an ESG Committee within the Board of Directors in the future to strengthen its decision-making structure.

Decision-making Structure

Climate Change Management Committee

Method	Frequency
Board of Directors	Regular report once a year
hEHS Committee	Committee operates once semi-annually

Role of dedicated organization

Category	Role
Board of Directors	ㆍManagement and supervision of key environmental management strategies and plans
CEO	ㆍResponsibility for final decision-making on environmental management matters ㆍApproval of environmental management goals and action plans
ESG Group	ㆍEstablishment of key environmental management strategies and plans ㆍEnvironmental management monitoring ㆍOperation of communication channels for each business site
hEHS Committee	ㆍReview/examine environmental management policies and plans related to greenhouse gas, water, wastewater, etc.
Dedicated Environment, Health, & Safety Department	ㆍImplement detailed environmental management activities such as waste, water quality, and air pollution
Dedicated Energy/GHG Department	ㆍImplement detailed energy/greenhouse gas management activities for equipment, production, and utility facilities
Dedicated department within Business Support Division	ㆍSupport for environmental management activities

ⅠⅠ. Strategy

ⅠⅠ-(1) Carbon Neutrality Detailed Strategy

Hanmi Pharmaceutical has established detailed carbon neutrality strategies, reflecting the government's policy direction for renewable energy-centric energy transition.
Hanmi Pharmaceutical plans to fully initiate the adoption of renewable energy in 2026, targeting RE50 by 2035 and RE100 by 2040. Furthermore, by 2040, the company aims to not only achieve RE100 but also complete its carbon neutrality (Net Zero) implementation through the introduction of eco-friendly facilities. Carbon neutrality is a critical issue for the survival and growth of all, and thus it is a global challenge that must encompass not only companies but also their supply chains and local communities. Accordingly, the introduction of renewable energy is a core strategy that reflects Hanmi Pharmaceutical's commitment to carbon neutrality and social responsibility, spanning across the company, its supply chain, and the broader community.

Hanmi Pharmaceutical Scope 1 & 2 Carbon Neutrality Roadmap

Approximately 95% of Hanmi Pharmaceutical's greenhouse gas emissions originate from Pyeongtaek Bioplant and Paltan Smart Plant. Accordingly, the company is promoting the introduction of renewable energy centered on these two sites and has calculated a BAU (Business As Usual) scenario reflecting increased operational rates.
Hanmi Pharmaceutical aims to reduce greenhouse gas emissions by 30% by 2030 and 53% by 2035 compared to 2018, in line with the national 2035 NDC, and plans to achieve Net Zero by 2040. To achieve this, we will concentrate company-wide efforts on expanding renewable energy adoption, introducing eco-friendly facilities, and optimizing processes. Furthermore, having been designated as a target company for the Greenhouse Gas Emission Trading Scheme in 2020, we continue to manage greenhouse gas emissions through the annual purchase of emission allowances.

Hanmi Pharmaceutical Greenhouse Gas Emissions Status in 2025

Total Greenhouse Gas Emissions	149,942tCO_2eq	SCOPE 1 + 2 + 3
SCOPE 1	13,098tCO_2eq (9%)	Boiler 12,442tCO_2eq \| Vehicles and others 657tCO_2eq
SCOPE 2	55,327tCO_2eq (37%)	Electricity 45,665tCO_2eq \| Steam 9,664tCO_2eq
SCOPE 3	81,516tCO_2eq (54%)	Upstream 65,658tCO_2eqㅣDownstream 15,859tCO_2eq

Scope 1 & 2 Reduction Targets

For Scope 1 greenhouse gases, emissions from LNG boiler fuel usage at Paltan Smart Plant and Pyeongtaek Bioplant account for the majority, and long-term plans for eco-friendly fuel boilers such as hydrogen and biomass will be reviewed by 2040. For Scope 2 greenhouse gas emissions in 2025, electricity accounts for 81% and steam for 19%. Hanmi Pharmaceutical has designated Scope 2 as a key target for carbon neutrality implementation and plans to fully initiate renewable energy adoption from 2026, primarily utilizing REC and PPA.
Through this, the company aims to achieve a 30% reduction by 2030 and a 53% reduction by 2035 compared to 2018 greenhouse gas emissions, with a target of achieving Net Zero by 2040.

Hanmi Pharmaceutical SCOPE 3 Carbon Neutrality Forecast Scenario

Hanmi Pharmaceutical is establishing a carbon-neutral foundation across its entire Value Chain, including calculating Scope 3 emissions for 2025, to achieve supply chain carbon neutrality.
Hanmi Pharmaceutical's Scope 3 emissions for 2025 are 81,516tCO_2eq, with products/services accounting for approximately 59%. Accordingly, we plan to expand carbon neutrality education for partners and encourage participation in supply chain carbon neutrality initiatives to strengthen supply chain greenhouse gas emission management.

Key Carbon Neutrality Activities for 2025

Hanmi Pharmaceutical conducts its own greenhouse gas/energy reduction activities annually to achieve the 2030/2035 NDC and 2040 Net Zero targets.
Through these reduction activities, we are cumulatively reducing 3,523tCO_2eq of greenhouse gases and 70,988GJ of energy by 2025. Furthermore, in accordance with our Green Procurement Management Guidelines, we prioritize environmentally friendly products with excellent energy efficiency and low environmental impact when purchasing products and equipment, making procurement decisions accordingly. In 2025, the Paltan Smart Plant received commendation from the Gyeonggi Provincial Governor in recognition of its leading efforts in climate and environmental management activities such as carbon reduction and resource circulation. In the future, we plan to incorporate internal carbon costs into decision-making to increase the proportion of equipment investments with lower carbon emissions and continuously strive for long-term carbon emission reduction.

Expected Annual Reduction through 2025 Reduction Activities

Greenhouse Gas/Energy Saving Activities

Hanmi Pharmaceutical is reducing the use of energy, water, steam, and other resources through process efficiency improvements, such as efficient utility usage.
When replacing equipment or facilities costing KRW 5 million or more, we prioritize green procurement products, such as high-efficiency energy equipment and eco-labeled products, in accordance with the 「Green Procurement Management Guidelines」. We also publish Hanmi's green procurement policy promotional materials on our internal integrated procurement site, HSRM, to build an environmentally friendly and sustainable supply chain. Furthermore, by reflecting greenhouse gas and energy saving activities in the MBO evaluations of responsible executives, we are fostering company-wide cost-saving awareness and an eco-friendly organizational culture.

Category	2025 Activities	Type	Savings Amount (KRW 100M/year)	GHG Reduction (tCO_2eq/year)	Energy Savings (GJ/year)
Paltan Smart Plant	Introduction of Energy Solution (Compressor Central Control System)	Electricity	0.5	129	2,688
Pyeongtaek Bioplant	Energy Saving of 1℃ Ethylene Glycol Chiller through Relocation of -5℃ Ethylene Glycol Chiller Circulation Pump	Electricity	5.0	1,207	25,215
Total			5.5	1,335	27,903

Key Activities at Paltan Smart Plant

Introduction of Energy Solution (Compressor Central Control System)
[Before Improvement] Compressed air system operation: Manual ON/OFF operation	[After Improvement] Compressed air system operation: Automated
By introducing an energy solution (compressor central control system), we have established a state-of-the-art monitoring system to manage energy usage more precisely. Based on this, an annual reduction of 129 tCO_2eq of greenhouse gases and 2,688GJ of energy is possible, and the resulting cost savings are estimated at approximately KRW 50 million per year.

Key Activities at Pyeongtaek Bio Plant

Energy Saving of Adjacent Chillers through Relocation of Chiller Circulation Pumps
[Before Improvement] Operation of 1℃ 1000RT chiller	[After Improvement] Alternative operation of -5℃ 240RT chiller
Through circulation pump piping work, we transitioned to operate the -5℃ 240RT chiller instead of the existing 1000RT chiller, halting the operation of the 1℃ 1000RT chiller and its auxiliary facilities to pursue energy efficiency. Based on this, an annual reduction of 1,207 tCO_2eq of greenhouse gases and 25,215 GJ of energy is possible, and the resulting cost savings are estimated at approximately KRW 500 million per year.

Ⅱ-(2) Minimizing Environmental Impact

Hanmi Pharmaceutical continuously identifies and improves potential environmental issues that may arise during the product manufacturing process. Since 2012, we have adopted ISO 14001, an environmental management system, to establish a firm direction for environmental management and are building a global-standard environmental management system to minimize environmental pollution and negative impacts. Environmental targets are established for each detailed area of environmental management, including greenhouse gases, energy, water, waste, air pollutants, and water pollutants, and are regularly reported to and approved by the Board of Directors. Furthermore, to prevent accidents due to environmental risks, we have enacted risk management regulations and operate a pre-emptive environmental accident prevention system. In particular, by disclosing environmental information through the environmental information disclosure system, we are continuously striving to expand environmental management and green management.

Pollutant Management

Hanmi Pharmaceutical managed air pollutant emissions to be 70% below the legal permissible limits through activities to minimize pollutant discharge. In particular, dust emissions achieved a 61% reduction compared to 2018. Furthermore, the target of managing water pollutants to be 30% below the legal permissible limits for 2025 has been achieved. We continuously monitor and manage emission status using TMS (Telemonitoring System) and share data with the Ministry of Environment. In 2026, the Paltan Smart Plant plans to strengthen wastewater treatment performance through the construction of a wastewater process redundancy system and will continue to strive to prevent the generation of water pollutants in advance.

Risk	Content	Financial Impact (KRW 100M/year)			Response Plan
Risk	Content	Short-term (2026~27)	Mid-term (2028~30)	Long-term (2031~40)	Response Plan
Increased pollutant generation due to increased production volume	Increased pollutant generation Increased pollutant management costs	20.2	21.5	24.7	Strengthened management of air pollution prevention facilities below legal permissible limits Continuous monitoring of water pollutants through MS

Management of Hazardous Chemical Substances

To prevent damage from chemical-related accidents and protect employee health, Hanmi Pharmaceutical established a company-wide MSDS integrated management system in 2019 and is annually strengthening its capabilities in securing safety and health material data and processes. Furthermore, with the aim of strengthening the procurement process for hazardous chemical substances and the MSDS management system, an internal system for pharmaceutical raw material management has been established and is being operated. Hanmi Pharmaceutical has also introduced and operates a hazardous chemical substance pre-assessment system to fundamentally eliminate human and environmental impacts of hazardous chemical substances, thereby proactively mitigating various risks such as environmental, health, and regulatory risks. In particular, each business site actively conducts chemical risk assessments for each substance used, undergoes regular inspections of hazardous chemical substance storage and handling facilities, and conducts training and drills for responding to chemical spills based on worst-case/alternative scenarios, striving to prevent accidents in various ways.

Chemical Substance Management Process

Hanmi Pharmaceutical's Hazardous Chemical Substance Usage Status

Category	Unit	2022	2023	2024	2025
Hazardous Chemical Usage	ton	193	178	832	447

Waste Management

Hanmi Pharmaceutical strictly adheres to waste management as stipulated by laws such as the Waste Management Act. The company manages waste based on the principle of transparently recording and disclosing the entire process of generation, transportation, and treatment of general waste and designated waste (such as hazardous substances) through the Waste Proper Treatment System (Allbaro). In particular, pharmaceutical products must be disposed of as designated waste, thus they are thoroughly managed through verified designated waste disposal companies. Hanmi Pharmaceutical monitors waste generation and recycling volumes and identifies and implements various activities to increase the recycling rate. Since 2021, waste acids and alkalis, which were previously discharged as designated waste, have been self-processed for pH adjustment in wastewater treatment plants, thereby annually reducing waste generation. In 2025, the company plans to strengthen management activities to reduce waste generation and enhance recycling rates, including restricting outsourcing to incineration companies and implementing waste separate collection campaigns.

Risk	Content	Financial Impact (KRW 100M/year)			Response Plan
Risk	Content	Short-term (2026~27)	Mid-term (2028~30)	Long-term (2031~40)	Response Plan
Due to increased production, Increased waste generation	Increased waste management costs	4.5	4.7	5.3	Improvement of waste recycling rate / Expansion of recognized circular resources Implementation of resource circulation performance management system

Waste Management Status

Hanmi Fine Chemical is a facility subject to the Resource Circulation Performance Management System, established to achieve the nation's mid-to-long-term and phased resource circulation goals, and annually sets and monitors targets. This business site manages the final disposal rate based on indirect landfill volume and the recycling rate in accordance with the Resource Circulation Performance Management System, with no direct landfill disposal.

Category	Circular Utilization Rate¹⁾(%)		Final Disposal Rate²⁾(%)
Category	2025 Target	2025 Performance	2025 Target	2025 Performance
Hanmi Fine Chemical	58.97	89.58	21.97	1.75

1) Recycling Rate = (Actual Recycling Volume + Recognized Circular Resources) / (Waste Generation + Recognized Circular Resources) X 100
2) Final Disposal Rate = (Final Disposal Volume) / (Waste Generation + Recognized Circular Resources) X 100

Major Waste Impacts

Category		Generation	Impact
Paltan Smart Plant Pyeongtaek Bio Plant	Wastewater Treatment Sludge	Wastewater Treatment	Marine pollution when discharged into the ocean
Paltan Smart Plant Pyeongtaek Bio Plant Hanmi Fine Chemical	Waste Synthetic Resin	Product Production and Disposal	Microplastic generation / Dioxin emission during incineration
	Waste Organic Solvents	Waste liquid after experiments / Culture processes, etc.	Chemical Substance Leakage
	Halogenated Waste Organic Solvents	Product Production	Generation of endocrine disruptors during incineration

Major Waste Recycling Status

Category		Recycling Processing Details
Paltan Smart Plant Pyeongtaek Bio Plant	Wastewater Treatment Sludge	Used in agricultural production activities
	Waste Synthetic Resin	Manufacturing of intermediate processed waste
	Plastic waste	Crushing/grinding and then converting to raw materials
Pyeongtaek Bioplant	Wastewater Treatment Sludge	Used in agricultural production activities/soil improvement
	Waste Synthetic Resin	Manufacturing of fuel, solid fuel products/raw materials
	Spent adsorbents	Manufacturing of intermediate processed waste
Hanmi Fine Chemical	Halogenated Waste Organic Solvents	Direct product manufacturing
Hanmi Fine Chemical	Other waste organic solvents	Direct manufacturing of products/fuel·solid fuel products

*Waste generated at the workplace is currently being recycled and incinerated through reported treatment companies.

Water Resource Management

Hanmi Pharmaceutical strives to minimize water usage during manufacturing processes and increase the reuse rate. In 2025, Hanmi Pharmaceutical reduced water intake by approximately 36% compared to 2018, while simultaneously increasing reuse volume by 20% compared to 2018, reusing a total of 47,126 tons (reuse rate of 9.4%). At the Paltan Smart Plant, 100% of R/O concentrate is used as cooling tower makeup water, and Hanmi Fine Chemical reuses R/O water as scrubber water, resulting in a 21% reduction in water consumption compared to 2018, demonstrating its best efforts in water conservation.

Water Reuse Process

Expansion of Green Procurement

Since 2019, Hanmi Pharmaceutical has been making continuous efforts to switch materials used in pharmaceutical manufacturing to eco-friendly alternatives. After various tests, in 2020, all product packaging boxes were converted to 100% recycled paper. As part of the Green Hanmi campaign, when producing literature such as brochures for product promotion, we minimize environmental impact by
producing literature with minimized environmental impact. Starting in 2024, green procurement management guidelines will be established, prioritizing the use of green procurement products. We will strive to create an environmentally friendly corporate culture by strengthening green procurement procedures in the future.

Status of Green Procurement Literature Production

Category	Unit	2023	2024	2025
Total Production	Cases	161	218	220
Green Procurement Literature	Items/%	151/93.8	190/87.2	189/85.9
Total Production Cost	KRW 100M	4.5	5.9	4.8
Green Procurement Literature Cost	KRW 100M/%	4.1/92.6	4.4/74.6	3.8/80.8

* Green Procurement Literature: Literature that uses environmentally and forest-certified paper and ink and does not apply post-processing that impacts the environment, such as coating.

Status of Eco-friendly Packaging Box Usage

Category	Unit	2023	2024	2025
Total Usage	EA	394,960	395,620	383,400
Total Usage	ton	298	299	290
Greenhouse Gas Reduction Volume	tCO_2eq	158	158	154

* Application of domestic environmental product label waste treatment emission factor standards

FSC Certification for Forest Protection

FSC certification verifies forests that are managed sustainably and certifies products that use raw materials produced from such forests, managed by the Forest Stewardship Council. Hanmi Pharmaceutical produces key printed materials using FSC-certified paper and at FSC-certified printing companies for sustainable forest management.

Environmental Education and Emergency Response Training

Hanmi Pharmaceutical conducts technical personnel training in accordance with relevant laws such as the Emissions Trading Act, the Air Environment Conservation Act, the Water Environment Conservation Act, and the Chemical Substances Control Act. Additionally, we conduct annual hazardous chemical safety education for all members of workplaces handling hazardous chemicals and report the content and results to the Chemical Safety Institute.

Status of Environmental Education

Category	Unit	2023	2024	2025
Environmental Technical Personnel Job Training	hours	28	66	88
Hazardous Chemical Substance Manager/Handler Training	hours	4,400	1,328	5,696
Hazardous Chemical Substance Employee Training	hours	374	348	525
Other Training (ISO, ESG, etc.)	hours	944	960	983
Total	hours	5,746	2,702	7,292

Regular Environmental Accident Emergency Response Drills

Hanmi Pharmaceutical establishes scenario-based plans and conducts regular emergency drills annually to enhance environmental accident prevention and response capabilities. Furthermore, Hanmi Fine Chemical conducts emergency response drills for hazardous chemical substance (ethanol) leaks, thereby operating a system to respond quickly and effectively to environmental accidents and minimize damage.

Eco-friendly In-house Campaigns

Use of reusable cups in the in-house cafe and recycling of coffee grounds

Hanmi Group uses multi-use cups in employee lounges and in-house cafes to reduce the use of disposable cups. The multi-use cups are made of materials from which environmental hormones are not detected. After employees use them, they return them to collection points, where a specialized cleaning company from a local self-sufficiency center collects and manages their cleaning. In 2025, the in-house cafe replaced the use of 55,430 disposable cups by utilizing multi-use cups, resulting in an annual reduction of approximately 1.27 tons of greenhouse gases. Additionally, coffee grounds generated at the in-house cafe are not treated as general waste but are collected through the Songpa-gu Office's coffee grounds recycling project and provided to local livestock farms as moisture adjusters and compost. The expected contribution to greenhouse gas reduction from coffee grounds recycling is 0.12 tons.

In-house campaign for Environment Day: 'Wanjeon DOYOU AGAIN'

As part of its eco-friendly campaign, Hanmi Pharmaceutical launched the employee participation program 'Wanjeon DOYOU AGAIN'. Employees sampled the new Wanjeon DOYOU product, received education on the correct separate disposal methods for aseptic packaging, and directly experienced the washing, drying, and unfolding processes.
Approximately 100 employees participated, pledging to practice environmental protection for future generations. The campaign focused on guiding the correct disposal methods for aseptic packaging: ▲washing it cleanly, ▲completely removing moisture, ▲unfolding and drying the pack, and ▲disposing of it separately from general paper cartons. Through this activity, Hanmi Pharmaceutical aims to raise employees' awareness of resource circulation and eco-friendly consumption, and to establish an internal participation base where environmental protection actions can naturally spread throughout work and daily life. Hanmi Pharmaceutical plans to continuously expand employee-participatory environmental campaigns in the future, continuing practical activities to promote resource circulation and reduce environmental burden.

Resource Circulation Campaign

Eco-friendly Donation Using Coffee Grounds

Hanmi Pharmaceutical began its resource recycling efforts in 2021 by donating coffee grounds generated at its in-house cafe to the social enterprise Coffee Cube.
It has continuously expanded activities to circulate everyday waste back into resources. Subsequently, the scope of resource circulation was transitioned to a community-centered model, and currently, coffee grounds from the in-house cafe are donated to Songpa-gu's Resource Utilization Division, thereby strengthening a local-based virtuous cycle system for resources. Although coffee grounds are classified as general waste, which increases disposal costs and environmental burden,
Songpa-gu collects them in dedicated containers from each establishment, removes foreign substances, then conducts bulk collection, and provides them to livestock farms, where they are recycled as agricultural resources such as compost and moisture regulators.
This cooperative model involving businesses, local governments, and local farms is an example of resource circulation that re-discovers the value of household waste and reduces environmental burden. Hanmi Pharmaceutical will continue to identify recycling possibilities for generated resources and continuously advance its resource-efficient virtuous cycle system.

Hanmi Pharmaceutical In-house Cafe EQUAL GARDEN	▶	Songpa-gu Resource Utilization Division	▶	Local Farms

Category	Coffee Grounds Donated (kg)	CO₂ Reduction (ton)
2025	346.3	0.12
2024	442	0.15
2023	441	0.15
2022	348	0.11
2021	358.5	0.12

1g of coffee grounds = 0.338g of carbon dioxide [Source: Statistics Korea, Ministry of Environment]

Eco-friendly Donation Using Discarded IT Assets

Hanmi Group recycles retired IT assets to promote smooth resource circulation. In cooperation with the social enterprise 'Comwin', it recycles IT waste and supports informatization projects for underprivileged groups with assembled PCs.

III. Risk Management

Risk and Opportunity Monitoring	Frequency	Subjects	Method	Oversight
Climate Change Response
GHG management Third-party verification and monitoring	Once a year	Hanmi Pharm Hanmi Fine Chemical	ㆍMonitoring the carbon neutrality roadmap through Scope 1+2 emissions calculation and verification ㆍEstablishing a Scope 3 carbon neutrality roadmap (planned)	ESG Group Hanmi Fine Chemical EHS Team
GHG/Energy Saving Activities	On an ongoing basis	Hanmi Pharm	ㆍEstimating energy water and steam consumption reduction methods and reduction amounts	Each site's energy/ greenhouse gas management department
Climate Change Financial Impact Analysis	Once a year	Hanmi Pharm Beijing Hanmi Pharm	ㆍComprehensive review of negative impacts of business operations, external environmental changes, financial impacts, etc. ㆍIdentifying and reviewing transition/physical risks and opportunities	ESG Group
Climate Change Scenario Analysis	Once a year	Hanmi Pharm Beijing Hanmi Pharm	ㆍIdentifying key climate change risks ㆍSelecting and applying climate change scenarios reflecting characteristics of each risk (transition/physical)	ESG Group
Minimizing environmental impact
Pollutant Management	On an ongoing basis	Hanmi Pharm Hanmi Fine Chemical	ㆍManaging air/water pollutants below legal permissible limits of 70%/30%	Each workplace EHS Department
Management of Hazardous Chemical Substances	On an ongoing basis	Hanmi Pharm Hanmi Fine Chemical	・Management of hazardous chemicals through a chemical management process	Each workplace EHS Department
Waste Management	On an ongoing basis	Hanmi Pharm Hanmi Fine Chemical	ㆍMonitoring waste generation and recycling volume, performing activities to improve recycling rates	Each workplace EHS Department
Water Resource Management	On an ongoing basis	Hanmi Pharm Hanmi Fine Chemical	ㆍIntroducing water reuse process	Each workplace Energy/Greenhouse Gas Management Department
Green Procurement Management	On an ongoing basis	Hanmi Pharm Hanmi Fine Chemical	ㆍOperating and monitoring green procurement processes	Each worksite's Energy/Greenhouse gas Management department and procurement team

Ⅳ. Indicators and Targets

2025 Performance and 2026 Targets (Carbon Neutrality)

2025 Target	2025 Performance	Achieve
Hanmi Pharmaceutical
・Greenhouse gas emissions: 71,810 tCO_2eq (maintain 2018 levels) ・Energy consumption: 1,386,914 GJ (maintain 2018 levels)	ㆍGreenhouse gas emissions 68,426 tCO_2eq (5% decrease compared to 2018) ㆍEnergy consumption 1,368,085 GJ (1% decrease compared to 2018)	100% 100%
- Scope1&2&3 third-party verification and CDP evaluation response / Establishment of ESG Committee - [Paltan] Installation of central compressed air control system to reduce facility operation - [Pyeongtaek] 2024 Pyeongtaek greenhouse gas emissions reduced by 2% (approx. 783tCO_2eq)	- Scope1&2&3 third-party verification and CDP evaluation response - [Paltan] Introduction of energy solution (compressor central control device) - [Pyeongtaek] Greenhouse gas emissions reduced by 8% compared to 2024 (2,940tCO_2eq )	67% 100% 100%
Hanmi Fine Chemical
ㆍEmissions below permissible GHG emission limits (16,086 tCO_2eq)	ㆍEmissions below permissible GHG emission limits (11,609 tCO_2eq)	100%
- Inverter Overhaul, replacement with high-efficiency motor facilities - Maintaining D-building power factor at 95% - Conducting electricity bill reduction campaigns twice a year	- Inverter Overhaul work - Replacing D-building power factor correction capacitors and maintaining power factor at 95% - Power off unused equipment and control utility facilities (13% reduction in electricity costs and 22% reduction in electricity consumption)	100% 100% 100%

※ Hanmi Pharmaceutical's greenhouse gas reduction target is set based on a scope excluding Scope 3.

2026 Target

Hanmi Pharmaceutical

ㆍGreenhouse gas emissions 70,375 tCO_2eq (2% reduction compared to 2018)
ㆍEnergy consumption 1,359,176 GJ (2% reduction compared to 2018)

- [Company-wide] Introduction of renewable energy (RE10 level)
- [Paltan] Energy efficiency improvement (compressed air facility improvement)
- [Pyeongtaek] Energy efficiency improvement and power usage optimization (wastewater recycling and power control)

Hanmi Fine Chemical

ㆍEmissions below greenhouse gas emission allowance (15,356 tCO_2eq)

- Power usage optimization (replacement of old transformers, shutdown of unnecessary power, etc.)
- Compliance with greenhouse gas emission allowance under the target management system

Investment amount related to Carbon Neutrality
2025	Execution Rate	2026
Plan : KRW 7.0 billion \| Execution : KRW 3.2 billion	46%	Plan : KRW 4.7 billion

2025 Performance and 2026 Targets (Minimizing Environmental Impact)

2025 Target	2025 Performance	Achieve
Strengthening Management of Air/Water Pollutants
ㆍManagement of air/water pollutants below legal permissible limits of 50/30% ㆍ30% reduction in major air/water pollutant emissions compared to 2018 (Target emissions : 17 tons/12 tons or less)	ㆍManagement of air/water pollutants below legal permissible limits of 63/30% ㆍOver 30% reduction in major air/water pollutant emissions compared to 2018 (Emissions : 11 tons/12 tons)	50% 100%
- [Paltan] Installation of main coagulant injector for biological treatment tank (MBR tank) at wastewater treatment plant - [Pyeongtaek] Expansion of organic carbon source application (100%) - [Hanmi Fine Chemical] Reduction of air pollutant emissions by changing the cleaning water replacement method /Installation of IoT for air pollution control facilities (remaining parts in production buildings A, B, D)	- [Paltan] Not achieved - [Pyeongtaek] Not achieved - [Hanmi Fine Chemical] Over 3% reduction in air pollutant emission intensity compared to the previous year /Completion of IoT installation for air pollution control facilities	0% 0% 100%
Strengthening Hazardous Chemical Management
ㆍ2% reduction in hazardous chemical usage compared to 2024	ㆍHazardous chemical usage 46% reduction compared to 2024	100%
- [Pyeongtaek] Improvement of worker safety at hazardous chemical handling facilities - [R&D Center] Replacement of filters in sealed reagent cabinets / additional installation of waste organic solvent storage tanks - [Hanmi Fine Chemical] Progress in hazardous chemical business permit	- [Pyeongtaek] Replacement of NaOH, Acid tanks in the underground SKID Room of Plant 1 - [R&D Center] Replacement of 10EA internal filters in corrosive reagent cabinets / Installation of waste organic solvent storage tanks - [Hanmi Fine Chemical] Completion of regular inspection and business permit for hazardous chemical handling facilities	100% 100% 100%
Reduced Water Usage and Increased Reuse
ㆍ10% reduction in water intake compare to 2018 (Target intake : 701,381 tons or less) ㆍReuse rate 7.5% or more	ㆍ36% reduction in water intake compared to 2018 (Intake : 501,352 tons) ㆍReuse rate 9% or more	100% 100%
- [Pyeongtaek] Water intake reduced by 2% compared to the previous year - [R&D Center] Replaced hot water circulation pump and installed booster pressure pump - [Hanmi Fine Chemical] Expanded activities to reduce scrubber water usage and wastewater generation	- [Pyeongtaek] Water intake reduced by over 2% compared to the previous year - [R&D Center] Water consumption decreased by 10.6% due to circulation pump replacement, etc. - [Hanmi Fine Chemical] C-dong through RO concentrated water recycling Approximately 3,000 tons of scrubber raw water saved	100% 100% 100%
Reduced waste treatment volume and improved recycling rate
ㆍReduced general/designated waste treatment volume by 10% compared to 2018(Target treatment volume: 633 tons/252 tons or less) ㆍWaste recycling rate over 72.5%	ㆍReduced general/designated waste treatment volume by 40% compared to 2018 (Treatment volume: 387 tons/169 tons) ㆍWaste recycling rate 80%	100% 100%
- [Paltan] Recognized as circular resource by satisfying Article 9, Paragraph 1 of the Framework Act on Resource Circulation - [Pyeongtaek] Waste emission reduced by 2% compared to the previous year - [R&D Center] Improved waste emission and storage environment - [Hanmi Fine Chemical] Conducted separate waste collection campaign	- [Paltan] Not achieved - [Pyeongtaek] Waste emission reduced by over 2% compared to the previous year - [R&D Center] Expanded scale due to new installation of separate collection facility - [Hanmi Fine Chemical] Campaign conducted and waste treatment stabilized (new contract with treatment company executed)	0% 100% 100% 100%
Spreading Eco-friendly Culture
ㆍEco-friendly literature ratio over 90% ㆍ100% use of eco-friendly packaging boxes for manufactured medicines	ㆍEco-friendly literature ratio 80% ㆍ100% use of eco-friendly packaging boxes for manufactured medicines	89% 100%
- [Company-wide] Carbon-neutral social contribution activities such as coffee grounds donation, introduction of eco-friendly equipment procurement process - [Pyeongtaek] Participation in Environmental Doctor System (environmental management support consulting for SMEs)	- [Company-wide] Carbon-neutral social contribution activities such as coffee grounds donation - [Pyeongtaek] Gyeonggi Province Environmental Doctor System consulting support	50% 100%

2026 Target

Strengthening Management of Air/Water Pollutants

ㆍManagement of air/water pollutant legal permissible limits at 70%/30% or below¹⁾
ㆍReduced major air/water pollutant emissions by 32% compared to 2018 (Target emission: 16 tons/12 tons or less)

- [Paltan] Strengthened management of air pollution control facilities, including wastewater treatment process duplication and dust collector replacement
- [Pyeongtaek] Strengthened management of air pollution control facility media, including activated carbon replacement
- [Hanmi Fine Chemical] Compliance with odor prevention plan, including cleaning of air pollution control facilities

Strengthening Hazardous Chemical Management

ㆍReduced by 2% compared to the previous year

- [Paltan] Conducted in-house training for direct handlers of hazardous chemicals
- [Pyeongtaek] Improved worker safety in hazardous chemical handling facilities
- [R&D Center] Replaced filters for enclosed corrosive reagent storage, introduced reagent management process
- [Hanmi Fine Chemical] Strengthened enforcement of Chemical Control Act and compliance with management standards

Reduced Water Usage and Increased Reuse

ㆍWater intake reduced by 11% compared to 2018 (693,588 tons) / Water reuse rate over 8%

- [Pyeongtaek] Utilized recycled domestic wastewater from wastewater treatment plant
- [Hanmi Fine Chemical] Expanded activities to reduce scrubber water usage and on-site wastewater generation

Reduced waste treatment volume and improved recycling rate

ㆍReduced general/designated waste treatment volume by 12% compared to 2018 (Target treatment volume: 619 tons/246 tons) & waste recycling rate over 73%

- [Paltan] Technical review for recognizing packaging scrap as a circular resource
- [Pyeongtaek] Newly calculated waste generation by factory building and reduced by 2% compared to 2025
- [Hanmi Fine Chemical] Conducted separate waste collection campaign

Spreading Eco-friendly Culture

ㆍMaintained eco-friendly literature ratio of over 80% / 100% use of eco-friendly packaging boxes for manufactured medicines

- [Company-wide] Continuation of carbon-neutral social contribution activities, such as coffee grounds donation
- [Pyeongtaek] Conducting environmental cleanup activities around the industrial complex and participating in environmental management support consulting
for small and medium-sized enterprises (Environmental Doctor System)

1) Legal permissible limits for air/water pollutants: Adjusting target levels to reflect operational characteristics of business sites

Investment amount related to minimizing environmental impact
2025	Execution Rate	2026
Planned: KRW 210 million ㅣ Executed: KRW 150 million	73%	Plan: KRW 150 million

Ⅴ. Climate Change Risk Analysis

We conduct a climate change risk and opportunity factor assessment once a year, comprehensively reviewing negative impacts of business operations, external environmental changes, and financial impacts.
Target business sites and organizations identify and review transition/physical risks and opportunities, considering short-term/medium-term/long-term probabilities of occurrence and the severity of impact on the company.
※ The physical financial impact is the result of an update conducted after the 2024 scenario analysis, reflecting only some variable values such as the exchange rate as of December '25 and current asset values.

Climate Change Risk Management Framework

Climate Change Risk Assessment

Hanmi Pharmaceutical conducted a climate change scenario analysis to understand the financial impacts of climate change-related risks and opportunities on the company and to develop response strategies for the international community's carbon neutrality demands.

Category			Risk Description	Priority
Transition Risks	Policy /Regulations	T1	Increased Costs of Greenhouse Gas Emission Trading Scheme	2
		T2	Expansion of Mandatory Climate Change Disclosures	8
		T3	Imposition of Fines on Greenwashing Companies	15
		T4	Strengthening of Obligations and Regulations for Existing Products and Services	6
	Technology	T5	Increased costs for low-carbon technology transition	4
	Market	T6	Changes in customer behavior	12
		T7	Power market uncertainty	1
		T8	LNG market uncertainty	6
		T9	Rising raw material prices	10
		T10	Increased Volatility in Renewable Energy Prices	2
	Reputation	T11	Increased consumer consideration of environmental impact and preference for eco-friendly products	13
	Reputation	T12	Increased demands from investors and stakeholders for climate change and biodiversity response	15
Physical Risks	Acute	P1	Damage to facilities and equipment due to natural disasters such as typhoons and earthquakes	13
	Acute	P2	Damage to facilities due to urban floods and river overflows	8
	Chronic	P3	Increased wildfires around business sites	10
		P4	Increase in extreme weather phenomena	5
		P5	Increased risk of water shortage due to drought, etc.	17

Category			Risk Description	Priority
Opportunity factors	Policy /Regulations	O1	Reduced costs for responding to emissions trading regulations for reduced greenhouse gases	3
	Policy /Regulations	O2	Electricity cost savings through power demand management systems and discovery of PPA contracts	2
	Technology	O3	Reduction of greenhouse gas emissions and carbon costs through carbon neutrality implementation	1
	Reputation	O4	Enhancing global business competitiveness through climate change response	4
	Market	O5	Biodiversity conservation and ecosystem restoration in local communities	5

1) If the risk score (likelihood X impact) is identical, the priority is set equally, and they are managed with the same priority.
2) Risks are categorized into Low, Medium, and High, and among these, High-grade risks are identified as core risks requiring priority management and are indexed.

Climate Change Transition Risk Assessment

Responding to climate change, including the strengthening of global carbon emission regulations and the increasing burden of carbon prices, significantly impacts corporate sustainable management and growth. Hanmi Pharmaceutical establishes and discloses medium-to-long-term carbon reduction targets and implementation plans based on global standards, considering domestic climate change infrastructure and the characteristics of the pharmaceutical industry. We will continue to disclose the progress of Hanmi Pharmaceutical's Climate Action, which proceeds from 2030 NDC → 2035 NDC → 2040 Net Zero, and actively communicate various efforts to reduce environmental impact to our stakeholders.

Type		Period	Risk	Financial Impact	Mitigation Plan
Policy /Regulation	T1	Short -term	Increased Costs for Greenhouse Gas Emission Trading Scheme - Expansion of paid allocation in the 4th planning period	- Increased purchase of emission allowances due to the operation of Pyeongtaek Plant 2 - Increased cost of purchasing insufficient emission allowances due to rising emission allowance prices and changes in the proportion of paid allocation	[Current Response Measures] - Own greenhouse gas reduction activities through energy/ process efficiency improvement - Market and policy/regulatory monitoring - Financial impact analysis of rising emission allowance prices [Future Response Measures] - Transition to renewable energy and replacement with high-efficiency energy sources
	T2	Medium-term	Mandatory Climate Change Disclosure - KOSPI companies with consolidated assets of KRW 30 trillion or more by 2028 for listed companies mandatory ESG disclosure - IFRS S2, SEC Climate Disclosure, ESRS, etc. Expansion of global climate disclosure systems - Increased stakeholder demand for CDP response	- Increased costs for emissions calculation, verification, and disclosure response	[Current Response Measures] - Response to CDP climate change disclosure - Scope 1, 2, 3 emissions calculation and third-party verification - Conduct climate change scenario/financial impact analysis [Future Response Directions] - Advancement of climate change scenario/financial impact analysis
	T3	Medium-term	Imposing penalties on greenwashing companies - Increase in detected greenwashing cases over the past 3-4 years	- Penalties incurred upon violation	[Current Response Strategies] - FSC approval when using eco-friendly certification marks (FSC)
	T4	Long -term	Obligations and Regulations on Existing Products and Services - Fines and administrative sanctions for non-compliance with related laws and regulations - Expansion of carbon regulations due to CBAM implementation - According to the improvement plan for Hydrofluorocarbon (HFCs) management system Transitioning HFCs-using products to low-GWP products - Introduction of fossil fuel-based vehicle conversion	- Increased compliance costs - Potential for levies and penalties upon stricter regulations - Increased levies and costs upon introduction of refrigerant regulations - Increased costs for alternative energy vehicle conversion	[Current Response Strategies] - Greenhouse gas reduction targets and implementation - Annual monitoring of climate change performance [Future Response Directions] - Continued monitoring of carbon tax introduction, such as CBAM - Monitoring global refrigerant regulations, reviewing alternative refrigerants - Reviewing eco-friendly vehicle conversion
Technology	T5	Long -term	Introduction of Low-Carbon Technologies/Facilities - Energy transition and greenhouse gas reduction for carbon neutrality Increased facility investment costs	- Increased investment costs for solar panel installation - Increased investment costs for energy efficiency and process optimization	[Current Response Directions] - Considering energy efficiency when purchasing equipment [Future Response Directions] - Advanced monitoring of carbon emission reductions when purchasing equipment - Reviewing waste heat reuse and conversion of boilers to eco-friendly fuels - Reviewing the introduction of low-carbon technologies for production facilities and equipment - Strengthening response strategies through the establishment of an ESG Committee
Market	T6	Medium-term	Customer Behavior Change - Global pharmaceutical and bio companies declare carbon neutrality → Formalization of climate change competency as an evaluation factor when reviewing business partners	- Revenue loss if contracts are terminated due to inability to meet customer demands for climate change response - Increased costs for joining and implementing climate change initiatives	[Current Response Strategies] - Membership in the Korea TCFD Alliance [Future Response Directions] - Expanding participation in climate change response initiatives
	T7	Short -term	Electricity Market Uncertainty - Rising electricity costs and increased volatility - Power generation sector in the 4th planning period of the Greenhouse Gas Emissions Trading Scheme Potential for electricity bill increases due to higher paid allocation ratio	- Increased costs due to rising electricity expenses	[Current Response Strategies] - Participation in electricity demand management programs - Identifying PPA contracts [Future Response Directions] - Identifying additional PPA contracts
	T8	Short -term	LNG Market Uncertainty - Increased exchange rates, global trends such as war, cold waves and increased volatility due to climate	- Increased costs due to rising LNG expenses	[Current Response Strategies] - Implementing in-house greenhouse gas reduction activities through process optimization [Future Response Strategies] - Advancing greenhouse gas reduction activities through process optimization
	T9	Long -term	Rising Raw Material Prices - Increased raw material costs due to rising plastic and biodiversity regulations - Increased necessity for climate change response within the supply chain	- Sustainable raw material use and environmental regulation compliance leading to increased operating costs - Increased low-carbon transition costs in the supply chain leading to higher raw material procurement costs	[Current Response Measures] - Scope 3 emissions calculation - Establishment of LCA-based emissions calculation system [Future Response Directions] - Engagement activities with key supply chain partners - Establishment of greenhouse gas reduction plans for key supply chain partners
	T10	Medium-term	Increased Renewable Energy Price Volatility - shortage of renewable energy supply, price fluctuations, deepening external market volatility due to power plant transaction methods, etc.	- Increased capital expenditure due to renewable energy self-generation, REC purchases,and PPA contracts	[Current Response Measures] - Review of PPA introduction (economic analysis, timing, etc.) [Future Response Directions] - Identification of additional PPA contracts

Reputation	T11	Short -term	Changes in Consumer Preferences - Increased consumer consideration of environmental impact and preference for eco-friendly products	- Decline in brand value due to delayed climate change response - Establishment of LCA system for eco-friendly product verification	[Current Response Measures] - Accurate information disclosure based on third-party verification (e.g., ESG report, environmental information disclosure) - Participation in Korea TCFD Alliance [Future Response Directions] - Acquisition of Green Company certification - Carbon Footprint and Environmental Product Declaration (EPD) certification
Reputation	T12	Short -term	Increased Stakeholder Concerns and Negative Feedback - Increased demands for climate change and biodiversity response	- Reduced capital availability if investment criteria are not met	[Current Response Measures] - Continuous internal 'Green Hanmi Campaign' - Safe LMO research laboratory management - Adherence to AMR framework - Responding to CDP climate change disclosure [Future Response Directions] - Strengthening biodiversity and ecosystem preservation projects for local communities

Financial Impact Analysis of Climate Change Transition Risks

Hanmi Pharmaceutical evaluated the materiality (likelihood × impact) of identified transition risks and, based on this, identified high-priority (High-grade) risks. Subsequently, the financial impact was analyzed by calculating the average financial amount for these risks across short-term (2026~2027), medium-term (2028~2030), and long-term (2031~2040) periods.

Type	Transition Risks
Content	T1. Increased Costs from Greenhouse Gas Emissions Trading Scheme
Financial Impact Analysis Criteria	As Hanmi Pharmaceutical has been designated as an allocated entity under the Greenhouse Gas Emissions Trading Scheme since 2020, rising carbon credit prices and an increase in the proportion of paid allocations will lead to higher costs for purchasing insufficient emission allowances. Accordingly, the financial impact amount was calculated based on the sequential expansion of the paid allocation ratio (assuming 30-50%) and the expected carbon credit prices according to transition scenarios.
Financial Impact Analysis Results	Assumption of NDC Reduction Target Achievement (Based on NDCs Scenario)	Assumption of Net Zero Achievement by 2050 (Based on Net Zero 2050 Scenario)
	Short-term (2026-2027): KRW 2.16 billion Mid-term (2028-2030): KRW 2.83 billion Long-term (2031-2040): KRW 4.10 billion	Short-term (2026-2027): KRW 1.92 billion Mid-term (2028-2030): KRW 3.20 billion Long-term (2031-2040): KRW 12.77 billion
Content	T5. Introduction of low-carbon technologies/facilities
Financial Impact Analysis Criteria	Hanmi Pharmaceutical has established a mid-to-long-term carbon neutrality roadmap with the goal of achieving carbon neutrality by 2040. To achieve carbon neutrality, investment costs for introducing reduction measures such as energy efficiency improvements and process optimization will increase. Implementation costs were calculated through the installation and maintenance of solar power facilities.
Financial Impact Analysis Results	Short-term (2026-2027): KRW 4.52 billion Mid-term (2028-2030): KRW 70 million Long-term (2031-2040): KRW 70 million
Content	T7. Electricity Market Uncertainty
Financial Impact Analysis Criteria	From the 4th planning period of the Greenhouse Gas Emission Trading Scheme, the proportion of paid allocation of emission allowances in the power generation sector is gradually increasing (from 10% in the 3rd planning period to a maximum of 50% by 2030 in the 4th planning period). Additionally, with the advancement of electricity market system reforms, electricity unit prices are expected to rise. Accordingly, energy costs due to the increase in electricity unit prices have been calculated.
Financial Impact Analysis Results	Short-term (2026-2027): KRW 20.43 billion Mid-term (2028-2030): KRW 23.46 billion Long-term (2031-2040): KRW 32.30 billion
Content	T10. Increased Volatility in Renewable Energy Prices
Financial Impact Analysis Criteria	Hanmi Pharmaceutical has set reducing Scope 2 emissions as a core task and established RE100 achievement as a detailed goal. To this end, signing Power Purchase Agreements (PPAs) and purchasing Renewable Energy Certificates (RECs) have been designated as key implementation measures, and RE100 implementation costs, including annual KEPCO charges based on BAU, through PPAs and RECs, have been calculated.
Financial Impact Analysis Results	RE100 Implementation Costs (PPA)	RE100 Implementation Costs (REC)
	Short-term (2026-2027): KRW 21.96 billion Mid-term (2028-2030): KRW 23.07 billion Long-term (2031-2040): KRW 25.70 billion	Short-term (2026-2027): KRW 28.31 billion Mid-term (2028-2030): KRW 31.02 billion Long-term (2031-2040): KRW 40.72 billion

Financial Impact Analysis of Climate Change Physical Risks

Type	Period	Risk	Financial Impact*			Response Plan
Type	Period	Risk	Content	Short-to Mid-term (~2030)	Long-term (~2040)	Response Plan
Acute	Short -term	P1. Due to natural disasters such as typhoons, earthquakes, resulting in damage to facilities and equipment	Restoration costs for business sites damaged by natural disasters Loss of profit due to production stoppages	KRW 110M	KRW 130 -140 M	[Current Response Measures] -Establishment of BCP through ISO 22301 certification -Regular inspection of facilities [Future Response Directions] -Phased replacement of aging facilities /Advancement of pharmaceutical industry-specific BCP
Acute	Long -term	P2. Facility damage due to urban floods, river overflows	Costs incurred for restoring damaged workplaces Decreased profits due to production disruption	KRW 2.29 -2.34B	KRW 2.91 -3.16B
Chronic	Short -term	P3. Increased wildfires around workplaces	Costs incurred for restoring wildfire damage	KRW 380 -400M	KRW 570 -640M	[Current Response Measures] -ISO 14001 certification and operational management /Annual environmental accident emergency drills -Monitoring of legal standards and GMP compliance [Future Response Directions] -Environmental goals and performance for each workplace management system, and strengthened environmental impact assessments
	Long -term	P4. Increase in abnormal weather phenomena	Increased heating and cooling operating costs due to rising temperatures and increased greenhouse gas emissions (air conditioners, HVAC systems, etc.) Increased investment in air pollution control facilities	KRW 25.48 -26.33B	KRW 31.45 -35.08N	[Current Response Measures] -Establishment of BCP through ISO 22301 certification -Monitoring of legal standards and GMP compliance [Future Response Directions] -Facilities/regulations, such as central control for heating and cooling, to be advanced
	Long -term	P5. Increased risk of water shortage due to drought, etc.	Increased investment costs for water reuse facilities and increased investment costs for water quality management	-	-	[Current Response Measures] -Management through ISO 14001 certification /Water recycling activities in the manufacturing process [Future Response Directions] -Strengthening water reuse processes

* Results of SP1-2.6 (Low) and SSP5-8.5 (High) scenarios.

Ⅵ. Climate Change Scenarios

Climate Change Scenario Analysis Process

Among the major risk factors, Hanmi Pharmaceutical analyzed the potential financial impacts of ‘strengthened greenhouse gas emission regulations and rising carbon credit prices’ for transition risks, and 8 acute and chronic risks for physical risks. The transition risk analysis was based on the NDCs, Below 2℃, and Net Zero 2050 scenarios from the Network for Greening the Financial System (NGFS), applying the contents of Korea's 2030 Nationally Determined Contributions (NDC) and 2050 Carbon Neutrality Scenarios A and B (Nov. 2021). For physical risks, the analysis was based on the Shared Socioeconomic Pathway (SSP) scenarios. SSP scenarios are emission scenarios adopted in the IPCC (Intergovernmental Panel on Climate Change) 6th Assessment Report, which project changes in future socioeconomic systems such as population, economy, and energy use, along with radiative forcing intensity by 2100.

Type	Category	Projected Temperature Increase	Source
Transition Risks	NDCs Assumes achievement of current NDC greenhouse gas reduction targets	+ 2.6℃	NGFS
	Below 2℃ Assumes implementation of reductions to achieve the target of keeping global temperature rise below 2℃	+ 1.6℃
	Net Zero 2050 Achieving Net Zero by 2050 through continuous carbon neutrality efforts	+ 1.4℃
Physical risks	SSP5–8.5(High) A low emission reduction scenario where total greenhouse gas emissions triple by 2075	+3.3-5.7℃	IPCC AR6
	SSP2-4.5(Medium) A strong reduction scenario where emissions remain at current levels until 2050 and decrease by 2100	+2.1-3.5℃
	SSP1-2.6(Low) An aggressive reduction scenario achieving Net Zero by 2050, consistent with the Paris Agreement	+1.3-2.4℃

Transition Risk Analysis

Hanmi Pharmaceutical estimated the company's BAU¹⁾ scenario by utilizing NDCs, Net Zero 2050, and Below 2℃ transition scenarios based on NGFS (Network for Greening the Financial System), reflecting energy consumption and emissions allowance allocations according to production plan forecasts, and analyzed the potential carbon costs²⁾ according to national emissions trading scheme regulatory scenarios and climate change scenarios. Hanmi Pharmaceutical's projected greenhouse gas emissions allowance allocation assumes a linear achievement of the 2050 Carbon Neutrality Scenario A and B, which targets an 80.4% reduction in the industrial sector. Accordingly, the emissions allowance allocation was calculated assuming a 54% reduction and an increase in the paid allocation ratio to 50%. The potential carbon price in NGFS scenarios is an estimated price derived through an integrated assessment model to comply with IPCC SSP (Shared Socioeconomic Pathway) reduction pathways at minimum cost, considering both socioeconomic damage from greenhouse gas emissions and the costs required for reduction.
1) BAU: Abbreviation for Business As Usual, representing projected greenhouse gas emissions if no special measures are taken for reduction.
2) Potential Carbon Cost: Shadow price used for selecting potential business risks due to future carbon regulations to formulate corporate strategy and evaluate investments.

Transition Risk Analysis Results

Hanmi Pharmaceutical's projected greenhouse gas emissions allowance allocation forecasts that allowances for 671,000 tCO_2eq (57% of the total projected cumulative emissions of 1.18 million tCO_2eq from 2026 to 2040) will need to be purchased. Hanmi Pharmaceutical's estimated carbon costs, assuming NGFS Korea carbon prices as allowance prices, show that the allowance price per 1 tCO_2eq of greenhouse gas will rise to approximately KRW 70,000 to KRW 300,000 by 2040, and the annual carbon cost will amount to approximately KRW 3.1 billion under the NDCs scenario and KRW 13.1 billion under the Net Zero scenario.

Scenario	Carbon Price (Unit: KRW/tCO_2eq)				Cumulative Carbon-Cost (Unit: KRW 100 million)				Cumulative by 2040 Carbon Cost NPV³⁾ (Unit: KRW 100 million)
Scenario	2026	2030	2035	2040	~2026	~2030	~2035	~2040
NDCs	111,313	114,241	63,692	69,661	20	128	314	538	388
Below 2℃	51,373	73,072	103,801	135,991	9	72	279	691	461
Net Zero 2050	93,404	138,714	205,267	297,126	17	134	539	1,411	935

3) NPV (Net Present Value): This is the present value of a future stream of cash flows, discounted at an interest rate, converted to a current amount, applying Hanmi Pharmaceutical's weighted average discount rate of 3.65% over the last three years.

Physical Risk Analysis

Hanmi Pharmaceutical conducted a physical risk analysis for Paltan Smart Plant¹⁾, and Beijing Hanmi Pharmaceutical's business site, utilizing S&P Global Sustainable 1's Climanomics²⁾ platform, based on the Shared Socioeconomic Pathway (SSP) scenario. Physical risks were modeled by applying variables such as temperature and precipitation to eight types of physical risks, including chronic and acute extreme temperatures, urban floods, and wildfires. The Mean Annual Average Loss (MAAL) included direct financial impacts of climate risks on specific asset types, such as operational costs, capital costs, and business interruption impacts leading to losses.

1) Paltan Smart Plant and Pyeongtaek Bio Plant business sites are located in close proximity (within the analysis grid), and their inland urban location and industrial conditions are identical, thus Paltan Smart Plant was selected for representative analysis.
2) S&P Global's climate change scenario analysis platform for physical climate risk analysis

Physical Risk Analysis Results – By Asset

Physical Risk Analysis Results – By Risk

Analysis of acute and chronic risks showed that asset loss due to extreme temperatures had the most significant impact, with asset loss rates due to extreme temperatures projected to increase to 5.96%~8.06% by the 2050s.

Category		SSP1-2.6(Low)				SSP2-4.5(Medium)				SSP3-8.5(High)
Category		`20	`30	`40	`50	`20	`30	`40	`50	`20	`30	`40	`50
Acute	Coastal Flood	-	-	-	-	-	-	-	-	-	-	-	-
	River Flood	-	-	-	-	-	-	-	-	-	-	-	-
	Urban Flood	0.37%	0.47%	0.54%	0.57%	0.35%	0.45%	0.57%	0.68%	0.37%	0.51%	0.70%	0.92%
	Typhoon	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.02%	0.03%	0.03%
Chronic	Drought	-	-	-	-	-	-	-	0.001%	-	-	0.001%	0.003%
	Extreme Temperature	4.22%	5.04%	5.81%	5.96%	3.92%	5.00%	5.60%	6.87%	4.08%	5.62%	6.87%	8.06%
	Water Stress	-	-	-	-	-	-	-	-	-	-	-	-
	Wildfire	0.06%	0.09%	0.11%	0.12%	0.06%	0.09%	0.13%	0.16%	0.06%	0.10%	0.16%	0.21%

Financial Impact Analysis Results Based on Climate Change Scenarios_Physical Risks

Both Paltan Smart Plant and Beijing Hanmi Pharmaceutical are located in inland urban areas, and thus physical risks due to extreme temperatures and urban flooding were primarily identified. Asset losses from coastal flooding, river overflow, and water stress were not identified. Based on this analysis, according to SSP1 2.6 and SSP5-8.5 scenarios, Paltan Smart Plant is projected to incur losses of KRW 41.6 billion to KRW 57.5 billion by the 2050s, and Beijing Hanmi Pharmaceutical is projected to incur losses of KRW 3.7 billion to KRW 4.6 billion by the 2050s. Hanmi Pharmaceutical has established and operates a BCP (Business Continuity Planning) for disasters, and will continue to advance its response strategies according to the level of exposure to physical climate change risks.

<Business Sites>

<Annual Average Estimated Asset Loss by Business Site>

<Analysis of Extreme Temperature Impact>

According to the physical risk analysis, extreme temperatures, which had the greatest impact, were measured based on changes (absolute change in the 50th percentile of past annual daily maximum temperatures) from the 1980-2000 historical baseline period. This analysis indicates that the daily maximum temperatures at the Paltan Smart Plant and Beijing Hanmi Pharmaceutical business sites are projected to rise by approximately 4℃ by the 2050s compared to the 1980-2000 period.