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OCI Environmental Management Guidelines

OCI selected eco-friendliness as a core value to carry out sustainable management, and fulfills corporate social responsibility to protect the environment. To maintain eco-friendly sites, all employees of OCI observe the following principles and implement environment improvement activities.

OCI operates an environmental management system certified by an external institution, observes laws and other requirements, and strives to establish world-class environmental management. We assess environmental elements through environmental impact assessment, establish a plan to deal with environmental impacts that require management, and improve environmental management.

Establishing a Chemical Management System

OCI has introduced and operated the Chemical Management System (CMS) since June 2019 to respond to related to chemical management. CMS computerizes the entire process from procurement to use and disposal of chemicals by type and integrates a procurement management system for 15,500 chemicals. Previously, different departments were responsible for the procurement and management of chemicals, making integrated management difficult. But safety and efficiency increased after the introduction of the CMS because procurement and management were done simultaneously. OCI will proactively respond to regulations on chemicals with the CMS.

Hazardous chemical substances management

Warehousing

Designation of places to store hazardous chemical substances that passed safety assessment tests and education for employees who handle Hazardous chemical substances

Storage

Installation of hazardous chemical leakage prevention devices and leakage sensing devices in hazardous chemical substances storage facilities, and organization of emergency response team and training with response exercises for fire, explosion and leakage

Shipment

Driver education, and emergency response training in the case of transport accidents (participation of transport companies)

OCI recognizes the value of the virtuous cycle of water resources and the corporate responsibility for water resource management, and operates under a set policy for managing water resources. Each facility complies with the laws on integrated management of environmental pollution facilities and water environment conservation, operating wastewater discharge facilities legally and setting internal management standards that are stricter than legal requirements.

To ensure sustainable water resource management, a Water Risk analysis using the WRI's Aqueduct Water Risk Atlas was conducted for all domestic facilities. The analysis used the SSP1 RCP8.5 scenario for the year 2030, which is considered a pessimistic scenario according to the Aqueduct Water Risk Atlas. The facilities expected to experience changes in water stress levels between 2023 and 2030 are in Gunsan and Iksan. Moving forward, OCI will continue to monitor water risks in the regions where it operates, managing water usage in facilities located in high water risk areas, and striving to identify and implement water management initiatives, such as water reduction and wastewater reuse.

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To respond to global environmental regulations and strengthen our ESG system, we have established and are implementing a comprehensive Life Cycle Assessment (LCA) plan for all products manufactured in Korea. In 2024, we completed LCAs for five key products—polysilicon, high-purity phosphoric acid, carbon black, pitch, and hydrogen peroxide—applying the internationally recognized CML 2001 methodology. These products account for 38.05% of our total sales. The LCA for polysilicon has been third-party verified following ISO 14040 and ISO 14044 standards. Likewise, LCAs for carbon black, pitch, and hydrogen peroxide have also undergone third-party verification based on the same ISO standards. Going forward, we will continue to enhance our LCA process and actively identify and implement improvement measures based on the environmental impact analysis of each product. Through these efforts, we aim to minimize the negative environmental impact generated throughout the product lifecycle.

* LCA(Life Cycle Assessment) is a methodology for assessing the environmental impacts associated with all stages of the life cycle of a product or production process (raw material extraction, production, final processing) by listing the quantity of inputs and outputs.

Biodiversity and forest protection activities

We recognize the value of biodiversity and the importance of ecosystem conservation. We carry out various activities such as planting trees, making flowery roads, and collecting garbage to protect biodiversity by preventing the loss of natural habitats and deforestation and ensure environmentally sustainable development. Since 2023, we have encouraged employees and their families to voluntarily participate in forest care activities to understand the importance of ecosystem preservation better.

Eco-Friendly Product Procurement

OCI is committed to achieving its environmental management goals and fulfilling its environmental and social responsibilities. To this end, the company has established and implemented the Eco-Friendly Product Procurement Regulation. Through this regulation, OCI promotes the purchase of eco-friendly products that minimize energy and resource consumption while reducing greenhouse gas emissions and pollutants. This approach enables us to advance sustainable and responsible management across our operations.

Achievement of International Eco-Friendly Certification ‘ISCC PLUS’

OCI has achieved the international eco-friendly product certification ‘ISCC PLUS’ by producing carbon black at its Gwangyang and Pohang plants using pyrolysis oil derived from waste plastics as a raw material. ISCC PLUS is an internationally recognized certification for sustainability and low-carbon products aligned with the European Union’s Renewable Energy Directive. Known for its stringent and transparent assessment standards, it is widely regarded as one of the most reputable eco-friendly certifications globally.

Signing a voluntary agreement to reduce particulate matter

To protect the safety and health of the public, we signed a voluntary agreement to reduce particulate matter with the Ministry of Environment in 2019. Since then, we have been involved in activities to reduce the amount of particulate matter in Korea. As part of these efforts, we installed a system to monitor and control air pollutants and odor-causing compounds and set an internal management standard that is more stringent than legal requirements.

Climate Action

We recognize that climate change is a shared crisis facing all of humanity and are committed to minimizing the negative environmental impact across all areas of our business for a sustainable future. Additionally, we actively support national greenhouse gas reduction targets and have a policy of not funding organizations that deny climate change or oppose climate regulations.