KUMHO P&B CHEMICALS

SUSTAINABILITY

Environmental / Safety
Management

Environmental/Safety Policies

Kumho P&B Chemical Co., Ltd. shall endeavor to faithfully perform the following in order to realize a disaster-free and disease-free workplace through continuous improvement of safety/health.

1. Safety/health is given priority at all stages of product development/design/production/transport/service.
2. Establish safety and health goals and implement appropriate resources and continuous improvement activities to achieve them.
3. Efforts shall be made to develop and introduce technologies to provide a safe working environment and to enhance the health of workers.
4. All regulations and other requirements and objectives shall be documented, delivered to all executives and employees, and education and training shall be conducted to ensure continuous compliance.
5. Actively communicate and respond to the safety and health concerns of the employees, customers, local communities, and related organizations.
6. Encourage safe use, transportation and disposal by fully consulting and providing information to the customer about the risks of the product.
7. In order to solve problems related to safety and health and to develop technologies, a cooperative system with all interested parties shall be maintained, and environmental, safety and health programs shall be implemented jointly with partners.
8. The company and all its partners will do their best to create disaster-free and accident-free workplaces and contribute to the 'ZERO' occurence of accidents through mutual trust, respect and cooperation.
9. In order to achieve the policy, the head of the environmental safety team shall be designated as the manager's agent and the participation of all executives and employees shall be promoted through regular review and audit.
10. Strictly complies with the 12 tasks of process safety management.

Detailed objectives

Achieve No-disater / No- accident

safety and health
thorough training
ㆍSafety and Health education for
    Visitors
ㆍSafety and Health education for
    consultative parties
ㆍSafety and Health education by
    works
Workshop Safety Measures
and check-up
ㆍProviding & managing Safety gear
ㆍManagement of partner's
    safety management expenses
ㆍManagment of Workers' special
    health check-ups
ㆍChemicals risk assessment
    measures, etc.
wearing protective gear
and health management
ㆍManagement of issuance of safety
work permit
ㆍPre-operation inspection management
ㆍChecking process operation
procedures
ㆍUpdate process safety data, etc
Thorough Implementation
of PSM
ㆍEstablish a safety measures plan
before working
ㆍChecking worksite safety measures
ㆍAttendance check during works
ㆍChecking results of the post-operation
safety measures

(company-specific) Approved EXporter

This system has been introduced to provide support for time and cost savings at the time of issuing a certificate of origin as an increasing number of countries have signed free trade agreements.

A system where the customs authorities provide any exporter approved as capable of proving the origin of the goods with such benefits as simplified procedures for the issuance of certificates of origin, omission of the submission of attached documents, etc.

* Korea-EU FTA : In the case of the exportation of any consignment consisting of originating products whose total value exceeds 6,000 euros, only an approved exporter can self-issue a certificate of origin.
* Korea-ASEAN, China, India, Singapore, Vietnam FTA : Submission of attached documents may be omitted when applying for the issuance of a certificate of origin.
* Korea-EFTA FTA : When an exporter self-issues a certificate of origin, such exporter’s signature may be omitted.

Differences between the company-specific AEX and the product-specific AEX.

ㅇThe company-specific approved exporter system is a blanket authorization system where the procedures for issuing a certificate of origin are operated in a simplified way for all the free trade agreements and all the export goods.

ㅇThe product-specific approved exporter system is a system where the procedures for issuing a certificate of origin are operated in a simplified way after granting authorization as an approved exporter for each relevant FTA and the six digits of each relevant HS code.

AEO (Authorized Economic Operator)

An authorized economic operator (AEO) is a “party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national customs administration as complying with the World Customs Organization (WCO) or equivalent supply chain security standards.” Authorized Economic Operators include companies and parties concerned that are related to logistics such as importers, exporters, transporters, transportation brokers, warehouses operators, and customer brokers. The AEO concept was established by the WCO and the international community to ensure the security and smooth movement of goods in response to the U.S. trade security measures, which were reinforced after the September 11 attacks.

The introduction of the AEO program enables customs administrations to reject existing practices that had granted selective benefits of customs clearance procedures, which are based on fragmentary standards by the distributor and instead, evaluate the sincerity all distributors based on integrated standards. Consequently, once recognized as excellent, the company can enjoy comprehensive benefits in customs processes, which range from customs clearance for import and export to tax payment.

Three Features of the Korea AEO System

1. The integrated operation of the Business Evaluation System and the Security0 Management System can avoid the overlapping evaluation of a company.

2. The internal control system of a company is autonomously strengthened to increase the degree of law compliance.

3. The ASC concept is more specified. The Korean AEO system is focused on giving benefits by connecting overseas export networks with domestic import networks. Once an AEO status is given to all relevant companies, such as overseas producers and transporters (exporters), international transportation brokers, domestic cargo handlers, warehouse operators, customs brokers, and importers, they can receive unprecedented benefits.

Responsible Care

Responsible Care (RC) is a global initiative with regard to the environment, safety and health, where most of the developed countries and multinational companies are involved. This is the most comprehensive and long-term program practiced by the chemical industry. RC is a concept that even covers the local residents’ safety and the employees’ health by complementing the existing ISO 1400 (Environment Management), which was mainly engaged in the environment. It is also a voluntary management movement where companies participate with responsibility, which is different from existing regulations-centered environmental policies.

Even though the chemical industry has played a pivotal role in all the industries, it has been recognized as a culprit in the current negative issues because of the emphasis on the risks of chemicals. In this context, the purpose of this initiative is for chemical companies to have more endeavors to ameliorate environmental safety, thus simultaneously recovering its reliability and improving its image.

After adopting RC in 1992, Korea established the Korea Responsible Care Council (www.krcc.or.kr) in December 1999 and became a member of the Responsible Care Leadership Group in September 2000. Factory 1 of Kumho P&B Chemicals has also been actively engaged in the RC initiative after signing a voluntary agreement.