1. 1. Our goal is to become an ethical company that adheres to domestic and foreign laws and regulations, and corporate management policies, and practices the righteous management.
2. 2. We put the customer first and supply good-quality tires, thereby assuring the best driving experience.
3. 3. We strive to raise the value of our shareholders through rational decision-making and righteous management.
4. 4. We provide equal and fair opportunities to our employees for self-realization and bring forth a smart workplace oriented towards innovation in every aspect of our business processes.
5. 5. We comply with international agreements and various regulations, respect local laws and cultures, and take shape as the leading global tire company.
6. 6. We exercise our proactive leadership skills, respect and practice ethical behaviors at the forefront.

Hankook Tire shares the ‘Supplier Sustainability Guidance’ to obtain shared growth with suppliers, and requires its suppliers to respect and comply with the Sustainability Guidelines. Hankook Tire’s Supplier Sustainability Guidance applies to all suppliers of Hankook Tire and their workers along with all agencies, representatives, and contractors in contract with Hankook Tire as well as all supply chain that do not have contracts with Hankook Tire.

Hankook Tire shares this Sustainability Guidance to all Suppliers prior to entering into contractual relationships. Suppliers should be fully aware and be acquainted with the elements of Sustainability Guidance, share it with their workers and train them, and be committed to their compliance.

Hankook Tire may evaluate whether Suppliers are complying with the Sustainability Guidance and may conduct audits such as site visits, if necessary. Hankook Tire may request Suppliers to submit documents for evaluation and guarantees the protection of confidential information of suppliers. If an on-site audit is necessary, Hankook Tire must give proper and reasonable notification to Suppliers prior to the visit.

Suppliers must respond faithfully to the requests for evaluation from Hankook Tire and must also inform Hankook Tire immediately of any violation or concerns that may cause a violation of Sustainability Guidance. If the negative social and/or environmental impacts resulting from violation of Sustainability Guidance are critical, Hankook Tire may terminate its relationships with the violating Supplier immediately as contracted.

1. 0. Mission
   • Hankook Tire makes constant efforts for economic, social and environmental sustainability of the natural rubber value chain.
2. 1. Background
   • About 85 percent of rubber trees are grown by smallholders. As industrial rubber demand increases due to world population growth and improvements in the quality of life, it is expected that economic, social and environmental issues will arise.
   • Hankook Tire is a tire manufacturer that does not own any natural rubber farms or processing facilities. As such, we aim to propose and execute joint activities with other members of the natural rubber value chain and join global efforts such as GPSNR to establish a sustainable natural rubber value chain.
3. 2. Natural Rubber Value Chain
   • 1) Producers: Farmers, organizations and entities who are producing natural rubber, excluding Smallholder Producers.
   • 2) Smallholder producers: Natural rubber farmers, with all following characteristics.
     • A. The primary source of income for the smallholder is the farm (not only Natural Rubber);
     • B. The Natural Rubber production unit size is less than 50ha (although the farm may be larger); and
     • C. Profits from the farm accrue primarily to the owner of the farm and their family.
   • 3) Dealers: Entities that purchase and collect natural rubber from growers and sell it to processors.
   • 4) Processors: Entities that process primary sources of natural rubber raw materials into natural rubber products.
   • 5) Traders: Entities that buy and sell natural rubber involving physically handling or storing physical material.
   • 6) Manufacturers: Companies who buy and process natural rubber in order to produce finished products that contain natural rubber.
4. 3. Sustainable Natural Rubber Policy (referred to as Policy hereafter)
   • 1) Support for raising growers’ living standards through improving productivity and quality of natural rubber
     • (1) We, Hankook Tire, will increase its material efficiency trying to identify the most suitable cultivation practices (such as effective improvement of plant breeding and development of agricultural techniques, etc.) and encourage growers to receive training (such as using productive fertilizers, or appropriate tapping techniques, etc.).
   • 2) Demand for compliance with laws and regulations, and code of ethics
     • (1) Suppliers will comply with all laws and regulations regarding human rights, labor, land use and the environment of the country in which they operate their business.
     • (2) Suppliers will be responsible for obeying the Sustainability Guidance for Suppliers(https://www.hankooktire.com/global/sustainability/policy/supplier-sustainability.html) as well as Hankook Tire’s Code of Ethics(https://www.hankooktire.com/global/about-hankook-tire/company/corporate-governance/code-of-ethics.html).
     • (3) We run a Grievance Mechanism that is in line with the effectiveness criteria of the UN Guiding Principles on Business and Human Rights.
   • 3) Demand for respecting and protecting human rights
     • (1) We demand compliance with Hankook Tire’s Declaration of Human Rights(https://www.hankooktire.com/global/sustainability/policy/human-rights-policy.html), which observes the principles of the UN Guiding Principles on Business and Human Rights and the Fundamental Conventions of the International Labour Organization.
     • (2) We demand the recognition of the rights of indigenous people and local communities in compliance with the UN Declaration on the Rights of Indigenous Peoples
       • A. We demand the recognition of traditional rights of access to hunt and harvest animals and plants for the sake of survival, and indigenous, cultural and religious traditions, customs and rituals.
       • B. We demand the recognition and protection of the customary, traditional, and communal land tenure rights of indigenous people and local communities
       • C. For activities that can influence indigenous peoples and local communities (IP/LC), FPIC (Free, Prior, and Informed Consent) is obtained in accordance with the methodology prescribed in the UN-REDD (2012) Guidelines on FPIC. If we cause or have caused harm to the lands, territories, rights, or resources of IP/LC without securing FPIC, we take measures to remedy such issue through a mutually agreeable process. Implementation will be jointly monitored by the community and the GPSNR member and/or by mutually agreed third party(ies).
       • D. We demand the operation of sustainable, effective, and culturally appropriate dialogue channels with indigenous people and local communities.
     • (3) We demand support for proper living environments and food security, and respect and support for the economic, social, and cultural rights regarding community livelihoods.
   • 4) Demand for activities to support environmental protection and the least negative impact on the environment of supply chain partners
     • (1) We demand the prevention of deforestation and the degradation of high conservation values (HCV) in the production and procurement process for natural rubber, and if deforestation or degradation of HCV is confirmed to have taken place after April 1, 2019, sourcing will be prohibited. Identification and management of areas for development and conservation will comply with methodologies and guidelines that observe the High Carbon Stock Approach (HCSA) and HCV Approach.
     • (2) We demand the prohibition of burning/fire for the purpose of land preparation, land management, waste disposal, etc.
     • (3) We demand a prohibition on development or procurement of peatland farming of natural rubber.
     • (4) We demand the protection and restoration of natural forests and ecosystems, along with rare, threatened, endangered and critically endangered species, and wildlife.
     • (5) We demand that water resources be conserved including through the prevention of water pollution caused by the use of pesticides and industrial chemicals, erosion, and sedimentation during the production and procurement of natural rubber.
     • (6) We demand that soil be conserved through the prevention of soil erosion, nutrient deficiency, ground subsidence, and pollution during the production and procurement of natural rubber.
     • (7) We are committed to minimizing and mitigating GHG emissions and energy usage.
   • 5) Efforts to prevent resource depletion and maintain sustainability
     • (1) We aim to reduce the use of natural resources by improving manufacturing processes, tire quality, raw materials, etc.
   • 6) We track the complex and diverse natural rubber supply chain from growers to manufacturers, at a minimum to an appropriate jurisdictional level, to identify and purchase materials that comply with GPSNR policies, in order to know the conformance of purchased materials with GPSNR Policy Components.
5. 4. Implementation of the Policy and compliance with it
   • 1) We formulate plans for the implementation of the Policy.
     • (1) Goals and policies to achieve those targets are approved by the ESG Strategy Committee, with the participation of the CEO, and are embedded into the company’s decision-making processes. The targets must reflect timebound and geographic-specific features and all policy provisions and approved targets should be disclosed.
     • (2) Monitor implementation progress and performance to the Supplier Committee, which is chaired by the Purchasing Director, once every quarter.
   • 2) We actively support the Policy compliance of supply chain partners through incentives, training, purchasing monitoring, etc.
     • (1) We propose guidelines for fulfilling the Policy requirements to suppliers and reflect them in contracts and when participating in activities, etc.
     • (2) Natural rubber suppliers that deal with material produced and processed in accordance and conformance with the GPSNR Policy Components will be preferred.
   • 3) We conduct a supply chain assessment at least once every two years.
     • (1) Based on the supply chain assessment, we will prioritize risk mitigation actions for social and environmental risks that are identified.
     • (2) We formulate time-bound implementation plans for the compliance of suppliers who do not adhere to the elements of the Policy.
     • (3) We construct processes to integrate information from stakeholders on our suppliers’ compliance with the Policy.
     • (4) If there are significant negative social and environmental impacts resulting from non-compliance, transactions may be discontinued.
     • (5) We, Hankook Tire, promise to develop our ESG assessment tools constantly.
   • 4) We disclose the plans and achievements of our sustainable natural rubber policy in a transparent and faithful manner at least once every year.
   • 5) To offer opportunities for feedback and suggestions related to our policy fulfillment, we actively communicate with stakeholders regularly.
   • 6) We support multi-stakeholder planning and policy efforts that uphold the GPSNR principles at a landscape, jurisdictional or other spatial level.

Declaration

1. 1. Hankook Tire & Technology shall continue to create social and environmental values through economic and corporate activities and contribute towards revitalizing the local economy.
2. 2. Hankook Tire & Technology shall fully practice contribution activities for quality satisfaction and customer safety with customer-oriented management activities.
3. 3. Hankook Tire & Technology shall further enhance its efforts to minimize our environmental impact throughout its business activities and fully take part in conserving the local society and environment.
4. 4. Hankook Tire & Technology shall remain entirely dedicated towards supporting the socially underprivileged or the equivalent, such as the disadvantaged in the local community, through the active return of created values to society.
5. 5. Based on the fundamental philosophy of respect for human beings, Hankook Tire & Technology shall be at the forefront of building a healthy society by managing the health of its employees and providing medical support to local communities.

Characteristics and orientation

1. 1. Hankook Tire & Technology's social contribution activities maximize the interconnection with its core businesses as part of its efforts to ensure that corporate capabilities result in social values.
2. 2. Hankook Tire & Technology's social contribution activities refrain from engaging in any inconsistent and aimless activities and focus the company-wide capabilities on its leading social contribution programs.
3. 3. Hankook Tire & Technology's social contribution activities set the orientation for practical solutions to the pending issues and problems surrounding local communities.

Human Rights Management Declaration of Hankook Tire & Technology

1. 1. Hankook Tire & Technology is fully aware that human rights, a universal value for humankind, are important, and that we can realize such value in our business activities. Based on this, we will continue to respect and protect the human rights of all workers, including irregular workers, temporary workers, and foreign workers, and, by extension, all stakeholders , Customer and Local Community who come into contact with us through our products, services, and business activities.
2. 2. To realize this responsibility to respect human rights, Hankook Tire & Technology will continue to endorse and abide by the principle under the Universal Declaration of Human Rights, the UN Global Compact, and the International Labor Organization's Fundamental Principles and Rights at Work.
3. 3. In addition, Hankook Tire & Technology endorses the UN Guiding Principles on Business and Human Rights of the UN Human Rights Council, and to abide by the Principles, it will operate a human rights management system, encompassing the diagnosis, improvement activities and monitoring, internal and external communications, grievance settlement, and relief procedures.
4. 4. As a company that is oriented towards fulfilling its social responsibilities and pursuing the happiness of all workers and stakeholders, Hankook Tire & Technology will comply with the laws of each country under any circumstances, and respect and protect human rights to contribute towards the sound development of society.

Background

The regulation on conflict minerals regulation was initiated to prevent any funds generated from the sale of minerals extracted in conflict zones from flowing into armed groups in the applicable country, and it requires a company to report any use of minerals mined in a conflict zone (tin, tantalum, tungsten, and gold).

Definition of a conflict mineral

1. 1. A natural resource that is mined through the serious violation and exploitation of human rights, that the profits thereof are used for rebel activities
2. 2. Conflict zones: Democratic Republic of Congo, Sudan, Central African Republic, Republic of the Congo, Angola, Zambia, Tanzania, Burundi, Rwanda , and Uganda
3. 3. Conflict minerals: Tin, tantalum, tungsten, and gold mined from conflict zones

Conflict Minerals Policy of Hankook Tire & Technology

1. 1. Hankook Tire & Technology's own regulations : Guidelines for the Selection and Management of Raw and Subsidiary Material Suppliers, Chapter III, Article 8 (Conflict Minerals) stipulates as follows.
   • • All suppliers who supply goods to the company must not use minerals mined in conflict zones and must submit a certificate of origin as a proof thereof.
   • • If necessary, the company may conduct due diligence on its suppliers.
2. 2. Proof and risk assessment process for conflict minerals
   

Hankook Tire & Technology’s response to conflict minerals

1. 1. Since Hankook Tire & Technology is not listed on the US stock exchange, it is not subject to direct regulation, but as it supplies tires as the components of motor vehicles, there is an increasing demand from automakers to verify our non-use of conflict minerals. Although the tire’s bead wire contains tin which is one of the minerals subject to regulation, Hankook Tire & Technology is supplied with bead wires from companies that use tin from smelters designated as 'Conflict Free' by a third-party independent auditor.
2. 2. To comply with the regulations on conflict minerals, Hankook Tire & Technology has established a purchasing policy to prohibit any use of conflict minerals, and stipulated that companies supplying raw materials subject to regulation may be inspected for the relevant issue during due diligence. We have posted such information on the supply chain to request a ban on the use of any conflict minerals, and companies that supply relevant minerals are required to submit a CMRT (conflict minerals reporting template) and proof of origin once every year.

Hankook Tire & Technology is well aware that tax compliance and tax risk management are important factors for contributing to the national finance, securing customer interests, and maximizing profits for shareholders, and perceives that they are essential requirements for sustainable management. To this end, we have documented the standards and procedures in place for tax principles, policies, and risk management, and we pursue building a cooperative and constructive relationship with the tax authority for accurate tax payment and reports.

1. 1. To pay taxes in good faith as specified under the law, we strictly comply with domestic and foreign tax laws, etc. in all transactions designed to create economic and social values, and accurately report and pay the tax payable under the tax laws and the like.
2. 2. To ensure the transparency of taxation, we fully disclose all of the relevant company information to its stakeholders. In addition, to ensure the adequacy of the application of the tax laws and protect the stakeholders, we report the amount of tax payable through an accounting firm for he items of taxation as specified under the laws and regulations.
3. 3. We do not transfer income across borders or engage in any transactions related to tax avoidance using the difference in tax laws across countries, loopholes in the international tax system, and tax havens, and we assure that our branches and subsidiaries are adequately taxed in a legitimate manner according to the value created in each country where our business activities are carried out.
4. 4. For transactions with parties in a special relationship, our principles require our branches and subsidiaries to adopt the arm's length principle according to the guidelines for the transfer prices of the OECD and the laws and regulations of each pertinent country, and for the transactions involving the transfer prices with parties in a special relationship outside Korea, we require external tax experts to compile reports on transfer prices and manage the implementation status.

1. 1. We will comply with applicable national, regional and local legal requirements at all places of business covered by the International Convention on Biodiversity and Land Protection (World Heritage areas, IUCN Category I-Ⅳ protected area).
2. 2. We will predict the impact of the project on the environment and biodiversity, prevent and minimize risk factors, and continuously monitor the impact while promoting projects such as new and existing policies, expansions, and projects. In addition, we will endeavor to apply this policy to all global business sites, tier 1 suppliers, and non-tier 1 suppliers.
3. 3. For those business sites where important habitats are located, we will strive to minimize biodiversity loss (NNL, No Net Loss) and further create a positive impact (NPI, Net Positive Impact). In particular, we will periodically monitor the water quality and soil pollution around the business sites and try to minimize the impact on the local environment for the Daejeon and Geumsan plants, which are the largest business sites.
4. 4. Hankook Tire & Technology is contributing to the restoration of the local ecosystem by releasing black shinners endangered species of persimmons in Daejeon area where we plant Abeliophyllum distichum, Iris minutoaurea Makino and Iris ruthenica Ker Gawl, which are endemic here in Korea. We will continue to review the operation of mid- to long-term programs to promote biodiversity.
5. 5. We will expand support for regional, national and global biodiversity conservation initiatives to protect endangered, rare and endemic species. In addition, we will make active efforts such as strengthening communication to enhance the understanding of biodiversity with our employees and stakeholders.