L&F CORP.

Responsible Minerals

"Responsible minerals" refer to minerals that are mined with a commitment to remedying negative factors such as human rights abuses, child labor exploitation, and environmental destruction in the mining process, and to fulfilling social and environmental responsibilities. L&F is actively working with all of its partner companies to amend these negative factors and minimize the impact on the society and environment

Responsible Raw Material Supply Chain Management

Conflict Mineral Management

In 2016, we became a member of the RCI(Responsible Cobalt Initiative)and formulated a ‘Responsible Sourcing Policy’ outlining the criteria for cobalt and conflict minerals in high-risk regions. We have also called upon new cobalt producers to commit to this policy. Furthermore, we are conducting third-party verification of cobalt smelters by using the Extended Minerals Reporting Template(EMRT) and supply chain mapping tools. We integrate our conflict minerals response process with our partner company’s sustainability management system to ensure responsible mineral sourcing.

Supervising Conflict Minerals Management of suppliers

As the management of conflict minerals within the supply chain has gained prominence, we are in the process of refining our conflict minerals management procedures. With the transformation of the previous CSR checklist into ESG evaluation criteria, it has become more challenging for suppliers with conflict minerals issues to be integrated into our value chain. In response to this , we conduct thorough evaluations of new raw material suppliers before their registration. This evaluation covers aspects such as their basic financial structure, production capacity, quality control, environmental impact assessment, and measures against child labor. In particular, we carefully review the polices and management systems related to conflict minerals, including cobalt.

L&F Responsible Sourcing Policy

Responsible Sourcing Policy

L&F is committed to the responsible sourcing of materials used in its products. We honor and ensure the rights to physical health, safety, freedom, and happiness of all stakeholders, including our executives and employees, partners, and members of society. This policy has been established to construct a responsible supply chain in alignment with international standards and norms. Accordingly, we will continue to pursue human rights and environmental protection throughout our supply chain by identifying risks through diligent supply chain assessment and offering support and collaboration to address and rectify issues.

Recognizing the necessity of extensive collaboration to achieve our objectives, L&F joined the Responsible Cobalt Initiative (RCI) in 2016. We have implemented a global human rights policy applicable to all partners conducting business with L&F worldwide to foster mineral supply through continuous human rights monitoring. We have assessed and recommended improvements to address potential risks and are actively engaging with customers, suppliers and other stakeholders. Our goal is to grow collectively by upholding internationally recognized social responsibilities and achieving sustainable, robust performance.

L&F diligently adheres to the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas (“OECD Due Diligence Guidance”). This policy assists in mitigating risks for companies utilizing or associated with minerals identified in the OECD Due Diligence Guideline ANNEX II. Should there be any need, you may request a postponement or cessation of business relationships.

Responsible Minerals Report

2023 Responsible Minerals Report

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Shared Growth with Supplier

L&F are engaged in various activities to foster mutual growth with our partners.
In addition to providing technical and financial support, we are actively seeking diverse methods to
enhance the growth of our partners and strengthen the competitiveness of the value chain.

Development of ESG Evaluation Metrics for partners Companies

In response to the growing demand for ESG supply chain management, the previous CSR self-checklist Was advanced into the ESG evaluation metrics for partner companies. These metrics encompass three areas-Environment, Social, and Governance - comprising a total of 100 indicators

Supplier Evaluation Metrics

Category	subcategory	No. of items	No. of items per domain
Environment	Carbon emissions	4	42
	Water resources	10
	Green technology	3
	Chemical substances	7
	Waste	6
	Air pollution	7
	Raw material sourcing (environmental)	5
Society	Labor and human rights	14	47
	Safety and health	12
	Raw material sourcing(social)	8
	Data security	9
Governance	Ethical management	11	11
Total		100	100

* The scoring system consists of 100 items, with 1 point per item, totaling 100 points.

Supplier Code of conduct

Prior to engaging in transactions with L&F, partner companies are required to sign our supplier Code of Conduct. This code, established in 2018, encompasses vital aspects including human rights, the Prohibition of forced and child labor, minimum wage guarantees, equitable compensation systems, non-discrimination, diversity promotion, freedom of association, ethical management policies, and responsible sourcing. Each revision, occurring biennially, intergrates key supply chain management concerns, mandating partner companies to take pledge on the updated Supplier Code of Conduct.

Happiness-Oriented Management

L&F is actively exploring various avenues to strike a balance between work and spare time, aiming to pursue a harmonious life. L&F strives to create a people-centric and happy organizational culture to enhance efficient work advancement in collaboration with passionate contributors to the organization.
As L&F values its members, we will make boundless efforts to leap forward as an unstoppable evolving enterprise.

Employee Benefits

Comprehensive and regular checkup

For the health of our employees, we offer annual health cheakups. Particularly, employees aged 35 and above are provided with regular comprehensive medical check-ups for their health management.

In-house gym

We established an in-house gym to promote exercise along with convenient facilities such as massage chairs and lounges.

Medical service discount benefits

We offer up to 20% discount benefits in medical services through partnerships with excellent local hospitals.

Flexible Work System

To ensure work-life balance for our employees, we have implemented various work systems which allow for efficient working schedule such as selective working hours and work-from-home arrangements.

Refresh leave system

We provide Founding Anniversary Leave and annual leave(3 days) setting aside from the annual leave entitlement. Additionally, we support a long-term leave system known as the Refresh Leave to encourage extended breaks and support employees in spending quality time with their families.

External recreation facility

We provide support for employees to use recreation facility located at major tourist destinations nationwide, either free of charge or at a discounted rate.

Tickets for local team matches

We offer support for tickets for home game tickets(Sweet Box) for local sports teams(Samsung Lions)

In-house club activity support

We operate hobby clubs and provide monthly activity allowances for club activities, aiming to facilitate quick adaptation and enhance teamwork among employees.

Commuting Buses

We operate commuter buses free of charge around the business site.

Free in-house cafeteria

We operate an in-house cafeteria to offer complimentary lunch, dinner, and late-night meals.

Benefits for long-serving employees

After 5 years of service, we provide rewards, additional vacation days, and other benefits in every 5years.

Welfare Mall / Holiday support expenses

We provide our employees a welfare mall of various welfare benefits worth 500,000 won each for Lunar New Year and Chuseok throughout the year.

Support for bereavement

In the event of a funeral, L&F provides bereavement leave, condolence money, wreaths, and condolence items to support out employees.

Contributing 50% of IRP

We support our employees' post-retirement security and aim to ensure a stable life by contributing 50% of the payment amount.

Supporting education expenses

We support education expenses for employees’ children entering university.

Local Community Contribution

L&F aims for cooperative growth with local community and shares our growth and development through various events every year. In addition to volunteering activities, L&F consistently donates funds to local organizations, and it strives to achieve sustainable social value by fostering large-scale job creation and developing global production bases, contributing to the mutual growth of the local community. To achieve such mutual growth, L&F is expanding its factory in the Daegu-Gyeongbuk region to create new jobs mainly for local people.