Starting this year, with the disclosure of corporate governance reports mandated for all KOSPI-listed companies, the pharmaceutical sector is also accelerating efforts to strengthen ESG (environmental, social, and governance) management. Daewon Pharmaceutical(003220) is strengthening ESG management by prioritizing governance improvements, advancing its compliance management system, and promoting carbon neutrality.
Daewon Pharmaceutical met 11 of the 15 core governance indicators set by the Korea Exchange (KRX) under the 2025 corporate governance report standards, recording a 73.3% compliance rate. This marks the third straight year of improvement, following 20% in 2023 and 53.3% in 2024.
This year, it additionally met indicators centered on shareholder return policies and audit systems. It required that dividend policies and future dividend plans be notified to shareholders at least once a year, and it adopted electronic voting to make it easier for minority shareholders to exercise their voting rights.
It also strengthened audit functions. The audit committee is composed entirely of outside directors, and a dedicated internal audit unit was newly established. Each quarter, the audit committee holds separate meetings with external auditors without management present to enhance independence.
It also strengthened its compliance management system. Daewon Pharmaceutical recently obtained integrated certification for the compliance management system (ISO 37301) and the anti-bribery management system (ISO 37001). Building on its pioneering adoption of ISO 37001 among domestic pharmaceutical companies in 2018, it expanded its companywide systems for legal compliance and anti-corruption, and it is embedding a culture of compliance through fair trade personnel operations and compliance training by job grade.
In the environmental field, it is pursuing expansion of renewable energy and improvements in energy efficiency with a goal of carbon neutrality (Net Zero) by 2050. The Hwangnam and Jincheon plants maintain the ISO 14001 environmental management system, and the Jincheon plant is set to begin full operation in the second half with a 3,151 kW solar power facility and a factory energy management system (FEMS).
Through this, it will replace about 46% of the plants' electricity use with renewable energy, cut Scope 1 and 2 greenhouse gases by 40% from 2023 levels by 2040, and achieve carbon neutrality by 2050.
It is also expanding environmental activities linked with local communities. In cooperation with the Seongdong District Office and the Social Cooperative Hangang, it is promoting a Jungnangcheon biodiversity enhancement project, and it is continuing employee-participation activities such as creating ecological forests and running wildlife protection campaigns.
It is also expanding environmental activities linked with local communities. In cooperation with the Seongdong District Office and the Social Cooperative Hangang, it is promoting a Jungnangcheon biodiversity enhancement project, and it is continuing employee-participation activities such as creating ecological forests and running wildlife protection campaigns.
In the social field, it is focusing on patient safety and access to medicines as core tasks. It operates an independent pharmacovigilance system to manage safety information, continues producing 12 low-revenue exit-prevention medicines, and is pursuing formulation and packaging improvements to enhance medication convenience.
Through the "Hope Cold Medicine Project," it supported 100,000 sachets of Coldaewon Kids children's cold medicine for medically vulnerable groups, and it is continuing social contributions such as donating proceeds from employee choir performances to music education for people with developmental disabilities. It also plans to continue strengthening workplace health and safety (ISO 45001), human rights management including partners, and supply chain ESG management.