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Creating environmental and social value with ESG management policies

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Environmental management policy

As an expert manufacturer that designs, produces, and sells agricultural machinery, Daedong looks to minimize the environmental impact of pollutants generated during its business activities involving products or services, operates all business activities in an “environmentally friendly” manner by conserving resources, and the company complies with not only its internal standards, but also environmental laws, regulations, and requirements stipulated under ISO 14001. Moreover, Daedong is committed to achieving goals established under its environmental policy aimed at protecting the environment with continued environmental improvements. This policy makes sure that stakeholders, including the general public, can be aware of the company’s efforts, and Daedong periodically reviews and takes necessary actions to ensure that its environmental management system is understood by all employees and is also effectively implemented and maintained.

Environmental management system

In order to enforce environmentally friendly management practices more effectively, Daedong has been receiving reports on overall environmental issues and approving action plans through its Board of Directors since 2023, and has appointed a Chief Safety Officer (CSO) to assume final responsibility over matters pertaining to environmental management. The CSO establishes and manages the company's health, safety, and environmental policies. Moreover, the Environmental Safety Team, a group inside the company dedicated to environmental matters, understands and responds to environmental laws and regulations, and executes tasks required for environmental management, including environmental risk management for air and water quality, and it also makes preparations for ISO14001 certification.

Environmental management system and organization
Environmental management system and organization Zoom
Process to manage environmental laws and regulations

Support for the environmental management of partner companies

Daedong requires partners to sign an “Environmental Pollution Prevention Agreement” at the time of contract in accordance with internal and external management regulations in order to diagnose and evaluate the environmental management risks of partner companies. This Agreement contains practical principles for overall environmental management, including waste reduction, pollutant emissions, and environmental education. Furthermore, in the Partner Company Evaluation and Action Standards, the current state and practices pertaining to the management of hazardous substances are reflected in the evaluation of partner companies. Daedong identifies the degree to which environmental pollution is prevented and the capacity to prevent pollution at partner companies in line with company standards for environmental facility management. Results and pertinent information help Daedong select environmentally conscious companies as partners.

Environmental management risk diagnosis and evaluation process for partner companies
  • Contract

    Sign an Environmental Pollution Agreement

  • Diagnostics

    Identify the level of environmental management, including the availability of environmental facilities or equipment

  • Evaluation

    Reflect environment-related assessment items such as the management of hazardous substances at partner companies

Management of chemicals and hazardous chemical substances

Daedong manages all activities (purchase, manufacturing, sales, after-sales service, etc.) applicable to the machinery and products it produces or sells in accordance with the new EU Registration, Evaluation, Authorization, and Restriction of Chemical (REACH) and EU Restriction of Hazardous Substances Directive (RoHS) in accordance with internal management regulations for hazardous substances. The environmental department at the company regularly reviews and lists the use of chemical substances, and also provides material safety data sheets for each chemical substance. Instructions for each work process that involves collecting chemicals are posted at appropriate locations, and training for workers handling said chemicals is provided by the company as well. Moreover, Daedong identifies hazardous chemicals by analyzing newly purchased chemical substances, replaces substances if they are deemed hazardous chemicals, and strives to keep the use of hazardous chemicals throughout its entire business operations at 0%.

Management of chemicals and hazardous chemical substances

Key environmental data

Violations against environmental laws and regulations

(Unit: case, KRW 10,000)

Sort 2020 2021 2022
Violation - - 11)
Fines and penalties - - 60

1) The levied fines were immediately brought to the company’s attention (violation: failure to report changes to air emissions facilities), and efforts are being made to prevent the same issue from recurring in the future.

GHG emissions2)

(Unit: tCO2eq, tCO2eq/KRW billion)

Sort 2020 2021 2022
Total emissions (Scope1, 2) 13,366 16,594 16,408
- Direct emissions (Scope 1) 6,212 7,349 7,132
- Indirect emissions (Scope 2) 7,154 9,245 9,276
GHG emission intensity 3) 14.92 14.07 11.21

2) Data source: Head Office, Daegu factory, Seoul office, Changnyeong Development Headquarters

3) Results based on sales revenue

Energy consumption 4)

(Unit: TJ/KRW billion)

Sort 2020 2021 2022
Total energy consumption 255 316 313
- Direct energy consumption 149 193 194
- Indirect energy consumption 106 123 119
Energy consumption intensity5) 0.28 0.27 0.21

4) Data source: Head Office, Daegu factory, Seoul office, Changnyeong Development Headquarters

5) Results based on sales revenue

Water consumption 6)

(Unit: ton)

Sort 2020 2021 2022
Total water intake 73,876 76,418 75,567
- Service water 36,938 43,008 40,460
- Groundwater 36,938 33,410 35,107
Wastewater discharge 38,716 40,901 37,812
Wastewater recycling - - -
Total water consumption 35,160 35,517 37,755

6) Data includes Head Office and Daegu factory water consumption

Waste discharge 7)

(Unit: ton, %)

Sort 2020 2021 2022
Total waste discharged 908.4 1,354.9 1,323.5
General waste 481.9 764.5 749.5
- Landfill 31.1 14.9 15.8
- Recycle 450.8 749.5 733.8
Designated (hazardous) waste 426.1 590.4 574.0
-Incineration 372 334.8 376.4
-Recycle 5.41 255.5 197.6
Total recycling 504.9 1005.1 931.3
Total recycling rate 55.6 74.2 70.4

7) Data includes Head Office and Daegu Factory waste discharge

Eco-friendly technology and investment

Daedong is striving to develop eco-friendly technologies to respond effectively to climate change and transform its business portfolio into a more eco-friendly one going forward. To date, the company has invested KRW 1.57 billion (cumulative) in the research and development of eco-friendly electrification, and another KRW 1.67 billion (cumulative) to develop technology and equipment for the cleanup of coastal areas. Additionally, Daedong spends approximately KRW 400 million per year to mitigate environmental risks and to improve relevant regulations and processes. In order to establish itself as a future agricultural platform company, Daedong carries out smart farming projects that present new standards for future agriculture using smart agricultural machinery, eco-friendly smart mobility, and forward-looking agricultural technology featuring ICT.

Eco-friendly certification

ISO14001 certification
ISO14001 certification

Daedong is certified under ISO14001 (Environmental Management System), an international standard, to practice environmental management.

EPA/CARB/EU certification
EPA/CARB/EU certification

The US Environmental Protection Agency (EPA), California Air Resources Board (CARB), and the European Union (EU) apply the world's toughest emission regulations (Tier 4 in the US, Stage V in Europe) to non-road engines to prevent air pollution and improve air quality. Daedong engines have been proven to be the world's best eco-friendly engines - they have passed rigorous emission tests in compliance with the US (EPA/CARB) 40CFR1039 and the EU Regulation (EU) 2016/1628.

Eco-friendly activities

  • Eco-friendly activities
    Eco-friendly activities
  • Daedong Plogging initiative to protect the environment
    Daedong Plogging initiative to protect the environment