SIMMTECH is strengthening ESG management based on the company's core value for sustainable growth. SIMMTECH's core value is 'Integrity', which means keeping all promises beyond honesty and SIMMTECH is achieving a healthier global environment, happier communities, and more transparent governance based on it. We will pursue 'ENABLE A BETTER WORLD ' and practice sustainable management.

• ESG Management System

  SIMMTECH has established a dedicated ESG organization to define ESG key issues to set up and implement ESG strategies, also operates company-wide ESG management system in which related teams can co-work efficiently. We will try to strengthen the ESG management system to expand positive impact on the environment and society and enhance corporate value.

  

• Double Materiality Assessment

  Overall

  SIMMTECH annually conducts double materiality assessment to identify the company's key sustainability issues and establish appropriate strategies. As the first procedure of the assessment, the responsible team complies the current status of ESG management to organize an issue pool. Then the team analyzes the materiality of each issue in a business perspective and also assesses the materiality in an impact perspective through stakeholder surveys. Detailed strategies are establised and managed for those selected key issues.

  

  Assessment result

  ESG Materiality

  

  2026 ESG Key Priority: Greenhouse Gas Emissions Reduction

  Impact

  Greenhouse gas (GHG) emissions are a key global environmental issue directly linked to climate change and biodiversity loss. Regulatory requirements by governments are being strengthened, while expectations from customers and investors continue to increase. Based on the Company’s materiality assessment, GHG emissions reduction has been identified as the top priority again in 2026, following the previous year. Accordingly, the Company aims to enhance existing reduction activities and strengthen its systematic management framework to achieve tangible reduction outcomes. Through these efforts, the Company seeks to contribute to climate change mitigation, enhance its sustainability management capabilities, and further reinforce trust with stakeholders.

  Response Strategy

  SIMMTECH operates a dedicated organization responsible for GHG and energy management, maintaining a continuous monitoring system for emissions and energy consumption. In 2026, the Company plans to strengthen its data-driven management system beyond the current level and continue company-wide energy efficiency improvement activities. In addition, it is continuously reviewing the expansion of renewable energy use and the application of facilities and investments related to GHG reduction. Furthermore, we are enhancing execution capabilities to achieve mid- to long-term reduction targets and focusing on delivering tangible reduction results through systematic risk management.

• ESG Financial Risk Monitoring

  SIMMTECH continuously identifies and manages potential ESG-related financial risks arising from stakeholder expectations and regulatory changes. In 2026, reflecting the Company’s initiatives in greenhouse gas reduction and wastewater reuse, key risks and opportunities have been reviewed as follows.

  2026 Key Review (Climate Change and Wastewater Management)

  Category	Type	Potential Risks / Opportunities	Response Strategy
  Transition Risk	Regulatory	Strengthened environmental regulations (e.g., Integrated Act, emissions cap system)	Expand renewable energy and transition to cleaner energy
  	Market	Increased carbon credit costs and rising energy prices	Improve energy efficiency to reduce GHG emissions
  Opportunity	Resource Efficiency	Reduced water usage and procurement costs	Establish and operate wastewater reuse systems
  	Operational Efficiency	Lower energy consumption and improved efficiency	Continue company-wide energy saving and equipment optimization

• ESG Ratings

  SIMMTECH has been recognized in its excellent performance of sustainable management from various ESG evaluation agencies.

  • KCGS

    2025 ESG Overall Rating	E(Environmental)	S(Social)	G(Governance)