The SKFH Corporate Sustainability Committee under the Board of Directors of SKFH is responsible for overseeing the sustainable development and climate change actions of SKFH and its subsidiaries, including green finance planning and performance, greenhouse gas inventory and emission reduction, and regularly reports climate change-related issues and implementation results to the Board of Directors. The Company also places high importance on the global climate change issue. The Board of Directors serves as the highest responsible unit for climate governance, overseeing the identification and response to climate change risks and opportunities within the organization. Climate change considerations are integrated into our operational plans, risk management policies, and risk appetite. Through the "Corporate Sustainability Committee," we monitor the implementation and outcomes of climate change risk and opportunity management. Regular meetings of the committee and its implementation task force are held to report on corporate sustainability goals, progress, and achievements to the Board of Directors. The committee is chaired by the President and consists of top-level managers from various divisions within the organization. The committee is responsible for effective management of climate change and applying climate change risk and opportunity governance to company operations and asset management. Within the committee, there is a TCFD group led by the Risk Management Department, which is responsible for planning and implementing TCFD mechanisms. Climate change risks are also incorporated into the Own Risk and Solvency Assessment (ORSA) and are regularly reported to the Risk Management Committee and the Board of Directors for discussion and approval.

SKL Climate Governance Framework

In order to effectively implement climate risk management, SKL has set up three lines of internal control and their related responsibilities are as follows: