NAVER Corp

In 2022, NAVER aims to enhance our approach to climate change response in a more systematic and professional manner, alongside the appointment of new top executives. The responsibility and authority for climate change strategy development, related investments, and overall capital allocation, previously held by the CFO, have been transferred to the Chief Sustainability Officer (CSO), who is in charge of external/ESG policies. As a registered executive of the ESG Committee, the CSO oversees NAVER's climate change response strategy and actively engages with internal and external stakeholders to communicate and drive the direction and implementation of NAVER's climate change initiatives. Furthermore, the CEO promotes the transition to a low-carbon economy and leads the exploration of environmentally friendly business opportunities within the organization. [...] NAVER takes active part in direct stakeholder engagement to advocate for renewable energy policy improvements. This includes engaging with government officials, policymakers, and institutions such as Korea Electric Power Corporation (KEPCO) to represent the perspective of renewable energy users. In addition, we participate in initiatives such as RE100, Corporate Renewable Energy Foundation (CREF), and Corporate Renewable Energy Initiative (CoREi) to collaborate with other stakeholders in the renewable energy market. Through these engagements, NAVER aims to contribute to improving the renewable energy supply chain and fostering indirect stakeholder engagement.

Since declaring ESG management in 2020, NAVER has actively promoted the internalization of ESG within the NAVER platform ecosystem through the establishment of an ESG Committee under the board of directors, the declaration of 2040 Carbon Negative and RE100, and the launch of a human rights management system. [...] NAVER's ESG Committee is the highest decision-making body that supervises company-wide ESG-related risk management and business opportunities. The Committee, established under the Board of Directors through a BOD resolution in October 2020, has been actively executing its role. [...] In 2022, the ESG Committee consisted of 4 directors, including two outside directors (including the chairperson), one other non-executive director, and one inside director. As of 2023, it is composed of three directors according to a resolution made at the 4th regular BOD meeting in March 2023. Outside director Lee Keon-hyeok, with high expertise in governance and communication, was appointed as the new chairman. Chae Seon-ju, head of External/ESG Policy, and Roh Hyeok-joon, who have been part of the ESG Committee since 2022, continue to provide their expertise in managing risks and opportunities associated with corporate sustainability. [...] In 2022, the ESG Committee was held five times, among which at four committee meetings, members received reports on the implementation status based on NAVER's 7 ESG management strategies, exchanged opinions on sustainability management global benchmarks, and discussed future plans based on NAVER's current status and global trends. In particular, after declaring the "Carbon Negative 2040" objective, the Committee made important decisions that laid the groundwork for elevating NAVER's environmental management to a global level. Such decisions include making decisions on concluding agreements to procure renewable energy and joining various environmental initiatives. In the social sector, the committee monitored the current status and performance of NAVER's human rights management, including the reorganization of the grievance mechanism in 2022 while reviewing efforts to improve the organizational culture. Moreover, the Committee reviewed ways to advance ESG risk management to build a sound supply chain ecosystem. In the fourth quarter, it also discussed possible improvement measures based on the results of the materiality assessment to set out and materialize the direction of NAVER's sustainability management in 2023.

### GOVERNANCE

###### ESG Committee within the BOD

NAVER has established and operates a governance system for general topics of sustainability including climate change response, based on a decision-making structure comprised of ESG Committee within the Board of Directors, dedicated departments, and a working group. This system is responsible for monitoring, supervising, and managing issues and activities associated with climate-related risks and opportunities. The ESG Committee serves as the highest consultative body, spearheading the management of ESG risks and the expansion of business opportunities throughout the company. It receives and resolves issues related to ESG management. After a resolution to change the committee's composition at the fourth regular board meeting in March 2023, the committee includes two outside directors (including the chairperson) and one inside director.

ESG Committee within the BoD

External/ESG Policy

Green Impact

ESG Working Group

Procurement & Green Partnership Compliance Human Rights HR Win-win Growth

Information Protection & Project Flower BOD Secretariat Green Internet Commerce Risk Management

**Name of**

**Committee** **the Committee**

**Composition** **Key activities** **name** **members**

**(directors)**

ESG 2 Outside Byun Jae-Sang - Review and manage key ESG risks and opportunities Committee Directors (Chairperson) - Perform top-level decision-making on company-wide

Rho Hyeok-joon ESG initiatives

- Identify business items based on environmental and social

1 Inside Chae Sun-joo sustainability and make related investment decisions Director - Establish climate change response strategy and direction

- Manage ESG information disclosure and external

communication

- Execute social contribution programs, etc.

- As of March 2024

### GOVERNANCE

###### ESG Committee within the BOD

**NAVER ESG Committee's Activities in 2023** The ESG Committee within the BOD convenes quarterly, with climate and environmental issues reported at least twice a year. The committee reviews NAVER's mid-to long-term strategies for climate mitigation and adaptation, approves major ESG initiatives, and oversees the management and monitoring of goals and their implementation concerning climate-related issues.

In 2023, the ESG Committee convened four times, addressing key issues including the revision of NAVER's comprehensive ESG strategy, management plans for ESG across its affiliates, the publication of Integrated Report, and contributions towards disaster recovery. In the environmental sector, the committee approved a direct power purchase agreement (PPA) with the Korea Water Resources Corporation for renewable energy (small hydropower), as a tangible step toward achieving NAVER's "2040 Carbon Negative" environmental strategy.

### GOVERNANCE

###### Executive Management and Dedicated Organizations

The CEO participates in the decision-making process for executing climate change mitigation and adaptation strategies, investing in ESG projects, and managing various capital financing issues. Particularly, the CEO leads the identification of environmentally sustainable business opportunities within the commerce industry to promote the transition to a low-carbon economy and expand green business prospects.

The Board of Directors approves the annual budget and governs major capital expenditures, acquisitions, and divestitures. Additionally, the External/ESG Policy Representative, a registered executive officer as well as a member of the ESG Committee, oversees strategies to minimize climate change risks and maximize opportunities, underpinned by their authority in shaping NAVER's climate response strategies, related investments, and capital financing. This role actively involves communicating with internal and external stakeholders to clarify NAVER's climate response direction and advance implementation measures. "Green Partnership," an ESG-focused environment department within the External/ESG Policy division, develops and executes policies aimed at transitioning to renewable energy, discovering eco-friendly services, and fostering partnerships to achieve the "2040 Carbon Negative" goal, along with monitoring and reporting on the environmental management system.

"Env. Operation," a working group under the Green Partnership department, manages the setup, operation, improvement, and certification of the environmental management system. It continuously reviews and enhances environmental practices across various business areas and workplaces, taking into account NAVER's businesses. Furthermore, it enhances the environmental management capabilities at each workplace through specialized training in environmental fields. The Internal Carbon Pricing TF, a task force under Green Partnership, develops and implements systems that enhance climate change awareness among employees and involve the supply chain, using an internal carbon pricing approach.

Environmental improvement initiatives are communicated to "Green Impact," a department dedicated to ESG management and a secretary to the ESG Committee, ensuring the initiatives are aligned with NAVER's 7 ESG Management Strategies.

### RISK MANAGEMENT

###### Climate Change Risk Management Framework

###### Risk/Opportunity Identification

NAVER continuously monitors climate-related policies, regulations, and requirements from major rating agencies to assess their applicability to the company. Additionally, NAVER conducts an annual materiality analysis involving employees and stakeholders to identify and evaluate major risks and opportunities that climate change could pose on its business, and develops response measures for key issues. The results are disclosed in the TCFD report.

###### Risk Management System

NAVER regularly assesses climate change risks and opportunities that could affect its business, incorporating them into a comprehensive corporate risk management process aligned with the overall business strategy.

Our office buildings and data centers are managed by relevant departments that continually assess and manage operational environmental risks and opportunities. We also implement green procurement strategies for the construction and operation of eco-friendly facilities. Moreover, company-wide climate change risks are systematically reviewed and identified by ESG management units under the guidance of the External/ESG Policy Representative, along with external consultations on the development of short-, mid-, and long-term strategic responses. The External/ESG Policy Representative evaluates mid-to-long-term investments and funding for risk mitigation, while the ESG Committee within the BOD makes final decisions on the direction and allocation of resources for non-financial risk management. Additionally, should severe disasters related to climate change occur, the Risk Management Committee under the BOD and the overall corporate risk management department oversee business continuity planning.

Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]We declared 2040 Carbon Negative in 2020. In order to achieve the goal in Korea, support from the government such as policy setting, terms and conditions amendments is essential. As Korea's No. 1 Information and Communication Technology (ICT) platform service provider, we proactively engaging with policy-makers and trade associations. In addition, we fund other organizations whose activities may influence climate change relevant policy, law, or regulations. In specific, we aim to achieve RE100 company-wise and accelerate energy transition in ICT industry as well. In that, we actively participate in meetings held by ICT related trade associations and directly communicate with policy makers as we have suggestions for RE100 implementation in Korea.
We plan to continue discussing the system and means of RE100 implementation with aforementioned stakeholders, so that Korean companies can better facilitate and achieve RE100.

Describe the process(es) your organization has in place to ensure that your external engagement activities are consistent with your climate commitments and/or climate transition plan?[…]We declared 2040 Carbon Negative in 2020. In order to achieve the goal in Korea, support from the government such as policy setting, terms and conditions amendments is essential. As Korea's No. 1 Information and Communication Technology (ICT) platform service provider, we proactively engaging with policy-makers and trade associations. In addition, we fund other organizations whose activities may influence climate change relevant policy, law, or regulations. In specific, we aim to achieve RE100 company-wise and accelerate energy transition in ICT industry as well. In that, we actively participate in meetings held by ICT related trade associations and directly communicate with policy makers as we have suggestions for RE100 implementation in Korea.

Does your organization have a public commitment or position statement to conduct your engagement activities in line with the goals of the Paris Agreement?[…]Yes