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About This Report

GS Caltex 2011 Sustainability Report
GS Caltex, as a responsible global energy company, recognizes that
its top sustainability priority is to respond to such global environ-

Bridge
mental issues as: environmental pollution, climate change and the
depletion of resources and energy. GS Caltex has also demonstrated
its strong support for and commitment to the 10 principles of the
UN Global Compact in the areas of: human rights, labour, environ-

to
Future
ment and anti-corruption and has been in full compliance with them.
This report is GS Caltex’s 7th Sustainability Report and we publish

the such reports every year to share our sustainability management ini-
tiatives and accomplishments in a transparent manner. This report
GS Caltex 2011 Sustainability Report also serves as a channel for proactive communication with all our
stakeholders whom we interact with closely in our business conduct
including: shareholders, employees, suppliers, consumers, govern-
ments and the local people of Yeosu.

Characteristics of This Report
This report focuses on sustainability issues that our stakeholders are
the most interested in and related accomplishments through stake-
holder dialogue. It also aims to share our performance in undertaking
CSR strategies as a corporate leader that responds proactively to the
international social responsibility standards of ISO 26000. We fol-
lowed the latest GRI(Global Reporting Initiative) G3.1 guidelines in
preparing this report and applied the Advanced Level in reporting on
our compliance with the UN Global Compact.
GS Caltex 2011 Sustainability Report
Reporting Period and Data
This report spans from January 1, 2011 to December 31, 2011 and cov-
ers our performance for the past 3 years. Performance data disclosed
in this report was generated based on computer management sys-
tems in respective business domains and statistical data produced by
the headquarter divisions in concern. Performance data from 2009
and 2010 was reinstated, as the calculation methodology remained
unchanged in the reporting period. The last report published was in
June of 2011.

Reporting Boundary
This report illustrates the economic, social and environmental perfor-
mance at our headquarters in Seoul and in the Yeosu Complex. It par-
tially includes data on our terminals, service stations, and lubricant
plants and the reporting boundary is specified when deemed neces-
sary. The New & Renewable Energy R&D Center and subsidiaries are
also covered in this report.

Assurance
Each accomplishment listed in this report was objectively assured by
the Korean Standards Association and the KSA confirmed that this
report met the requirements for the A+ Application Level of the GRI
G3.1 guidelines.

GS Tower, 679 Yeoksam-dong, Gangnam-gu, Seoul, 135-985 Korea Tel _ 82-2-2005-1114
Yeosu Complex, 1056 Wolrae-dong, Yeosu City, Jeonam, 555-260 Korea Tel _ 82-61-680-2114

Sustainability Management
Framework at GS Caltex Corporate History
We at GS Caltex move towards sustainability management in
our own GSC Way. Our sustainability management framework,
which aims to achieve its corporate vision, is formed upon
the principles of ISO 26000 (International Standard on Social Growth & Development: 1966 - 1989 Dec. 2008 No. 4 diesel desulfurizing unit completed (70,000 BPSD, 260,000 barrels in total)
Responsibility) with the 4 strategic directions of: Sustainable Dec. 1966 Joint Venture Agreement signed with Caltex Petroleum Corp. in the U.S.
Jan. 2009 HOU capacity increased-RFCC (from 93,000 BPSD to 94,000 BPSD)
HCR (from 60,000 BPSD to 61,000 BPSD)-155,000 barrels in total, Power
Operation, Reliable Energy, Accountable Engagement, and May 1967 Honam Oil Refinery Co., Ltd. incorporated
Carbon Technology established (Joint Venture Agreement signed with
Responsible Marketing. This framework guides our endeavors Jun. 1969 No. 1 CDU in the Yeosu Refinery completed (60,000 BPSD)
Nippon Oil Corp.)
Jun. 1981 Yeosu Refinery expanded (380,000 BPSD), 1st crude wharf completed
in managing detailed implementation tasks. Jul. 2009 Yeosu No. 1 plant expanded (700,000 BPSD), Lubricant base oil plant’s
Jan. 1986 R&D Center established
production capacity increased (from 16,000 BPSD to 23,000 BPSD)
Apr. 1988 Polypropylene plant completed (120,000 MTA)
Oct. 2009 Yeosu No. 1 plant expanded (750,000 BPSD), Kero-diesel hydro-
Dec. 1989 Polypropylene plant expanded (from 120,000 MTA to 180,000 MTA)
desulfurizing unit expanded (272,000 BPSD)
Feb. 2010 GS Caltex India Private Limited established, Equity investment in the
CSR Strategic Framework Management Rationalization & Business Diversification: 1990 - 1999
onshore Block 7 in Bangladesh made
CSR STRATEGY Sep. 1990 1st P-X plant (200,000 MTA) and 1st aromatics plant (500,000 MTA) completed Mar. 2010 PCT (Power Carbon Technology) production facility completed
Oct. 1991 1st kero-diesel hydro-desulfurizing unit completed (50,000 BPSD) Jun. 2010 HOU unit completed-VRHCR (Vacuum Residue Hydrocracker, 60,000
Sep. 1995 1st RFCC (Residue Fluid Catalytic Cracker) completed (70,000 BPSD) and BPSD), 215,000 barrels in total
an overseas office in Singapore opened May 2011 No. 3 VRHCR’s completion ceremony held, No. 4 VGOFCC’s
The Environment
Human Rights
SUSTAINABLE May 1996 Renamed as LG-Caltex Oil Corporation groundbreaking ceremony held, Cathode plant’s groundbreaking
OPERATION Feb. 1997 Kuk Dong City Gas Co., Ltd. (Now Yesco) acquired ceremony held
Labour Practices Nov. 1998 Central Technology R&D Center in Daejeon completed Sep. 2011 GS Aromatics Japanese office opened
Jan. 2012 GS Energy launched
Innovation & Upgrades: 2000 - 2005
Jan. 2000 New vision of ‘The Leader in Providing Total Energy Service’ declared
Our Previous Sustainability Reports Jun. 2000 LG Power Co., Ltd. (Now GS Power) established
Consumer Issues Reliable Aug. 2000 Seorabeol City Gas Co., Ltd. established
The Environment energy Jan. 2001 Haeyang City Gas Co., Ltd. acquired
Sustainability Reports between 2005 and 2010
Apr. 2003 No. 3 Paraxylene Plant completed (1.2 million MTA)
Sep. 2003 Order for the commissioned operation of refining plants in Sohar, Oman landed
Mar. 2005 Renamed GS Caltex Corporation

Organizational Governance Leader in Providing Total Energy Service: 2006 - 2012
Fair Operating Practices ACCOUNTABLE Jun. 2006 GS Caltex (Langfang) Plastics Co., Ltd. established
Community Involvement ENGAGEMENT Aug. 2006 GS Caltex Foundation launched
Dec. 2006 New & Renewable Energy R&D Center opened
Aug. 2007 No. 2 HOU unit completed-VDU (Vacuum Distillation Unit) 150,000 BPSD
HCR (Hydrocracker) 55,000 BPSD, Lubricant base oil plant completed (16,000 BPSD)
Sep. 2007 Hydrogen Station opened
Nov. 2007 1st Aromatics plant expanded (2.8 million MTA)

Consumer Issues
RESPONSIBLE Dec. 2007 Cheongpyeong Research Center established
Oct. 2008 Yeosu No. 1 plant expanded (700,000 BPSD)
MARKETING

For inquiries or feedback on our sustainability report or for further
information on sustainability management at GS Caltex, please feel
free to visit our corporate website at (http://www.gscaltex.com) or
contact the Environment & Product Quality Planning Team. Our fi-
nancial reports can be viewed at the DART(Data Analysis, Retrieval
and Transfer System) website(http://dart.fss.or.kr) at the Financial
Supervisory Service.

Tel: +82-2-2005-6136 Fax: +82-2-565-5168 E-mail: bridgegs@gscaltex.com

GS칼텍스 지속가능경영 체계

Bridge
GS칼텍스의 지속가능경영은 GSC Way를 통해 02 CEO Message
구현되고 있습니다. 회사의 비전을 달성하기 위한 04 Sustainability at GS Caltex
지속가능경영 체계는 ISO 26000(사회적 책임 06 Key Performance of GS Caltex

to
Future
08 GSC Way
국제표준)에 기반하여 구축되었으며, Sustainable
09 GS Caltex Corporate Profile
Operation, Reliable Energy, Accountable
Engagement, Responsible Marketing의 the 12
1 4
Corporate Governance
Report Content Definition Process
GS Caltex 2011 Sustainability Report
4대 전략방향으로 구성되어 세부 실행 성과들을
관리해 나가고 있습니다.

CSR 전략체계
Establishment of the Low Carbon Great Work Place
CSR STRATEGY
Environmental Management System

18 EHS & Q Integrated System 26 Mutually-Beneficial
19 Prevention of Environmental Pollution Labor-Management Culture
The Environment 21 Company-wide Actions to Climate change 28 Health & Safety
Human Rights
SUSTAINABLE 23 Sustainable Use of Resources 30 Protection of Human Rights
OPERATION 24 Protection of Marine Environments 31 Development of Human Resources
Labour Practices

CORPORATE
VISION Extension of Product and Establishment of
Service Responsibility Future Energy Leadership
Consumer Issues Reliable The Leader in providing
Total Energy Service
The Environment energy 34 Sustainable Products 38 New & Renewable Energy
35 Sustainable Supply of Energy 39 Waste Recycling

BUSINESS GOAL
Bridge to the Future Fair Operation Community Involvement
Organizational Governance Achieving KRW 100 Trillion in Sales by 2017 and Development
Fair Operating Practices ACCOUNTABLE 46 Social Contribution
Community Involvement ENGAGEMENT 42 Ethics Management/Fair Trade
44 Win-Win Management 48 Enhancement of
Local Community Independence

CSR MISSION
ENERGY FOR SUSTAINABLE LIFE Promotion of Sustainable Consumption Protection of Consumer Rights

Consumer Issues
RESPONSIBLE 52 Promotion of Sustainable Consumption 54 Protection of Consumer Rights

MARKETING 55 Customer Satisfaction Initiatives

Appendix
56 GRI G3.1 / ISO 26000 Index 65 Reader's Voice
62 Third-party Assurance Statement 66 Awards
64 UN Global Compact 67 Corporate History

At the 2012 World Business Council for Sustainable Development (WBCSD) Council Meeting to be held in Seoul in October. GS Energy was established as a new platform to secure future growth engines. petrochemicals. and the energy provider. GS Caltex became the second company in Korea to receive the “$20 Billion Export Tower Award. Serving as the chair of the Korea Business Council for Sustainable Development (KBCSD) for the last decade.” an independent exhibition hall in the Expo 2012 Yeosu. “Green Sharing” and “Community Involvement”. when the No. and competitive company in the industry. achievement. We sincerely ask all our the most respected stakeholders for their continued interest and support. and lubricants business and further strengthen its competitiveness. environment and society. played a significant is pursuing sustainability role in pursuing our CSR initiatives. the full operation of the No. Sustainable Development   (KBCSD). GS Caltex maintained the has taken the lead No.” In particular. we plan to promote Green Leadership of Korea and Korean enterprises by discussing ways to expand clean energy sources. 2 / 3 CEO MESSAGE 2011 Sustainability Report As the chair of the Korea With the spread of the Eurozone debt crisis and the deterioration of the world economy. GS Caltex has taken the lead in improving energy efficiency and promoting harmonious development of the economy.3 Heavy Oil Upgrading facility (HOU) significantly efficiency and promoting improved GS Caltex’s competitiveness in exporting eco-friendly light petroleum products and as harmonious development a result.3% of annual crude oil import value in 2011. GS Energy. GS Caltex is continuing to pursue sustainable development through large-scale investments. The new business structure will enable GS Caltex to focus on its core businesses including petroleum. the very Business Council for survival of many businesses is being threatened. GS Caltex “GS Caltex Energy Field. GS Caltex is pursuing sustainability management to become the most respected and competitive company in the industry. the completion of the Yeosu Culture and Arts Park “Yeulmaru”. In recognition of this of the economy. management to become As a responsible green energy provider.4 HOU begins environment and society commercial operation.” With the completion of the perfect complex in 2013. a holding company specializing in energy business. a venue where public can experience high-quality culture and arts.1 ranking in the service  station sector for 3 consecutive years thanks to the support of our in improving energy customers. Despite the challenging business environment. We are continuing to fulfill our Corporate Social Responsibility (CSR) by taking various initiatives focused on two main themes. under the slogan of As a responsible green “Beautiful Korea through Energy Sharing. GS Caltex According to the National Customer Satisfaction Index survey in 2011. June 2012 Chairman & CEO Dong-Soo Hur Bridge to the Future .  as a global energy company contributing to the enhancement of Korea’s national competitiveness. GS Caltex exported 83. In addition to strengthening our existing businesses for sustainable growth. In addition. GS Caltex will be able to expand its export market and solidify its position for the last decade. will create synergistic effects with GS Caltex by identifying and developing new business areas with growth potential.

etc. Ethics management training was given to CSR Committee decision to strengthen support for CSR facilitate social responsibility in the other suppliers. production. we undertake sustainability management initiatives based on our unique GSC Way Our sustainability management initiatives in 2011 were to collect feedback and through the 7 core subjects of the ISO 26000. 37-39 Endeavors are required to secure future establishment of GS Energy and its existing subsidiaries of Future Energy Acquisition of initiatives through future energy business energy leadership Leadership 3. and used in Introduction of the in-house carbon neutral programs 17-24 Climate change response activities should Environmental company-wide level every establishment by function cover the entire spectrum of the value chain Management (purchasing/production/marketing/support. 2011) undertaken systematically Great Work Place Investigation of labor conditions for the vulnerable Endeavors are required to meet social Dispute-free collective wage bargaining was concluded including service stations and suppliers 25-27 responsibility regarding employment and Preservation of the harmonious labor-management and the retirement age was extended to 60 in 2011 and identification of possible improvements employment relationships that extend to culture and enhancement of employment security suppliers and other related organizations 2. 34 Environmental hazards should be reduced Enhancement of competitive edge regarding the environmental quality grades of 4~5 Product and Service through responsible product development environmental quality of products Responsibility Waste treatment business was expanded through the Establishment . integrated manner. in accordance with the outcomes of analysis conducted. by considering our requires the approval of the CSR Committee and the quarterly CSR Committee meeting reports sustainability management strategy framework and the ISO 26000 in an relevant progress to the company CEO. an improvement from . The GS Caltex guarantee system was Sustainable consumption campaign 51-52 Sustainable regarding products and services and services strengthened (use of authentic fuel products) Consumption Protection of Endeavors are required to encourage On-the-spot eco campaigns for service station employees Campaign to promote low carbon green consumption Database of success stories 53-55 Consumer Rights sustainable consumption were undertaken . Community Support was given to industry-academia-government technology for local communities is required S trengthened contributions and support activities to Development of technology transfer programs Involvement and partnership projects under the Innovation Center for Safety 45-49 and contributions and support should be improve independence of local communities for local communities Development Diagnosis Technology of Heavy & Chemical Facilities.) Revised standards (draft) were set in accordance with such Programs to enhance safety awareness of employees Human rights policies regarding suppliers / international norms as the UN Human Rights Declaration and suppliers (economic. 2011 Sustainability Report 4 / 5 Sustainability at GS Caltex At GS Caltex. Major CSR Achievements ●완Completed 료 On-going OUR CHALLENGE OUR RESPONSE OUR RESPONSE OUR COMMITMENT CSR STRATEGY CSR Issue 2011 Implementation Task 2011 Major Achievements Progress 2012 Implementation Task Page 1. 30 CSR Committee decision for human rights policies and human rights responsibility regulations (proposals) civil rights and political rights) subsidiaries should be stipulated and (guidelines) to be stipulated (Feb. social and cultural arena. Chonnam geared toward reduced dependency on them National University. ACCOUNTABLE ENGAGEMENT Fair operating practice procedures were created and training was strengthened for business units with  roactive endeavors are required to prevent P Establishment and implementation of high/fair operational risks violations of fair operating regulations fair operating safeguards Tightening of social responsibility-related requirements in signing purchasing/service 41-44 Fair Operation Transaction practices among Tier 1 and Tier 2 suppliers bidding contracts Stronger endeavors should be made to were improved. RELIABLE ENERGY The world’s best-in-class quality was recognized by the Extension of Ministry of Environment. Support for Technician School in Yeosu City T he visions of social responsibility and strategy should be integrated with the Creation of CSR strategies and assessment of CSR strategy framework was set and 1st-year implementation Establishment of performance evaluation systems structure of the company-wide vision and CSR performance tasks were identified for social responsibility management CSR should be considered in making Strengthened employee performance evaluations Stakeholder Identification and Stakeholder engagement process was completed to identify Designation of R&R to ensure integrated 14-15 Systematized process should be set up to Establishment and expansion of stakeholder engagement Engagement identify major stakeholder issues and processes regarding CSR issues to be reported management of stakeholder engagement PR activities are insufficient to promote Strengthened communication on social responsibility Integrated management of stakeholder engagement Creation of integrated management programs stakeholder engagement initiatives was explored 4. Suppliers were supported to establish initiatives at business suppliers organizations in the value chain voluntary compliance programs T he development and utilization of Existing programs including job training for women continued. Every issue regarding sustainability management from stakeholders and select and address CSR issues. Sustainable Operation Low-carbon energy policies were performed on the entire Low Carbon Expansion of climate change response activities on a spectrum of product purchasing. which were based on the ISO 26000 compliance evaluation indicators developed internally by GS Caltex. RESPONSIBLE MARKETING Promotion of Green driving campaigns were undertaken in service stations Training programs are needed for end users Operation of P/G for end users regarding products and filling stations.

367 3. of hours) 85 85 102 361.7 65.880 Foreign long-term Overseas bonds Moody's Baa 2011-05 Outcomes of employee ethics training .922 16.071 14. Fair Operation No.490 6.202 760. 2011 Sustainability Report 6 / 7 Key Performance of GS Caltex Economic Performance Environmental & Social Performance We at GS Caltex ensure that issues and achievements that have the greatest impact on our In particular.205 2010 35.755 -Non-regular employees 350 123 44 2011 Based on Consolidated Financial Statements Resigned employees (resignation rate) 149(4.4 RESPONSIBLE Protection of Satisfaction with customer compliant handling 65. of participants in -Express training (filling station) 57 238 102 2011 10.955 12.240 2009 0.59) 150(4.10 58.413.842 Employment of the physically-challenged and other vulnerable people 0 0 0 Domestic 447. of meetings and issues proposed to the Industrial Health and Safety Committee (No.7 28.731 Korea Ratings AA+ 2011-05-16 738.014 299 Total GHG emissions (1.798.11 0.328 2010 0. Our No.000 man-hours) 0. 4 HOU _ KRW Corporate Bond Water consumption (ton/year) 36.262 Non-current liabilities 6. of service stations equipped with vapor recovery unit (%) 191(72) 238(86) 256(96) STRATEGY 4.101 6. To outline relevant outcomes.100 3.133.315. of stations) 99 119 123 Sales _ KRW Exports _ KRW Investment in the Credit Rating / Discharge of water pollutants (ton/year) 329. our new global-level performance indicators will be management pillars of: economy.315 Non-current assets 11.301 5.2 2010 4.900 Marine pollution prevention training (No.029 114.691. of persons) 3.702.006 Male employees (%) 88.273 2009 2010 2011 Net income Sales Ratio of operating profit to net sales Oil spills (No. 3.800 Capital expenses (interest dividend) Agency Health & safety training at Yeosu Complex(h/person) 21.3 Domestic 33.13 0.1 AA + Recycled water (ton/day) 3.240 Designated clean service stations (No.031.101.198(68) 1.472.284 10.530 361.971 Cash and cash equivalents 1.155. of rounds) 10 10 10 669.013 259.369 48 30.548.11 MARKETING Consumer Rights No. of violations of fair trade regulations (No of violations) 2 1 1 2009 2010 2011 ACCOUNTABLE Community Contributions to local community by year (KRW million) 33.030 STRATEGY 1.13 No.10 Based on Separate Financial Statements . Extension of Product LNG imports (ton) 62.060 Domestic KIS A1 2011-11-04 STRATEGY 2.422 10. of suggestions) 20 20 20 Great Work Place Distributed Economic Values (unit: KRW million) Domestic/Overseas Credit Rating in 2011 TRIR (total recordable incident rate per 200.650 6.432.541 5.026 S&P BBB 2011-03 ENERGY Future Energy Leadership R&D expenses against sales (%) 0.080.5 88.581 -Direct emissions 5.1 88.002 1.466 9. of spills occurred) 0 0 0 3% Current assets 9.1 236.041 2011 0.621 New hires over the past 3 years (No.365 14.610 10.011 4% 47.06 Operating expenses (including wage and benefits) Taxes No.55) 184(5.371 Government Grants (unit: KRW million) R&D Expenses against Sales (unit: %) Promotion of Sustainable Consumption Green purchasing (KRW million) 4.3 2. of supplier employees who attended safety management training Credit Rating Credit Rating Rating Date (No.340.654 6.9 11.741 12.2 1.952.634 248.937 6. are addressed at the top management level in the 3 sustainability CSR Committee. of persons) 397 251 223 -Regular employees 47 128 179 1.902 7.593 SUSTAINABLE Upgrading (%) 20.777 Current liabilities 7.235(68) 862.431 commercial paper and Service Responsibility 302.04 0. of unionized employees (%) 1.639 5.658 No. of employees (No.236. our environmental and social performance is under stringent management through the sustainability as a company.553 3.434 2009 3.147 3.620 11.605 32. Customer complaint handling time (hours) 3.7 2009 3% OPERATION No.585.159 38.000 tCO2eq) 6.662 50.7 28.8 2.775 256.5/1342 21. of persons) 5.324 Trillion Trillion Trillion Establishment of the Low Discharge of hazardous chemicals (ton/year) 5.616 8.769 56.186(69) 1.410 24.535 1.907.946. of persons) 5.8 No.492 7.5/1829 21.669 Discharge of waste (ton/year) 11. .227. 27.976 374.6 65. 3 HOU VRHCR commenced its disclosed in next year’s sustainability report.552 ENGAGEMENT Involvement and Development Participants in social volunteering organizations (No.1 266.5/1387 NICE AA+ 2011-11-04 44.42) No. full operation in 2011 to further boost our competitive edge in the export market. environment and society.7 26.337 STRATEGY 3.150 12.5 11.001 1. of participants in -Express training (service station) 1.189 Korea Ratings A1 2011-12-28 RELIABLE Crude oil imports (barrel) 235.685 1919 No.308 Key Financial Indicators (unit: KRW million) Consolidated Statement of Financial Position (unit: KRW million) -Indirect emissions 799 1.630.513 NICE A1 2011-11-04 Training hours per employee (No.819.620. Strategic Direction Strategic Tasks Item 2009 2010 2011 Emissions of air pollutants (ton/year) 11.839 12.12 0.096 KIS AA+ 2011-11-04 corporate bond Female employees (%) 11.656 carbon Environmental Management System Environmental investments (KRW 100 Million) 2.

GSC Way Charter GS Caltex Corporation Japan Office GS Caltex (Qingdao) Energy Co. while contributing GSC Way GSC Way. GS Caltex announced GSC Way in January edge. Ltd. Based on our organizational values of Trust.. Jeonnam Province.r. GS Abu Dhabi Branch GS Caltex (Jinan) Energy Co. GS Caltex Czech. 2012) Cracking unit Excellence _ Strive for excellence in individual and organizational performance Core Behaviors Excellence Proactive _ Think ahead and be the first to act Collaboration _ C  oncentrate internal and external resources and RUSSIA capabilities Trust GS Caltex Russia Representative Office Performance-Driven _ Create tangible results GS Caltex London Branch GS Caltex Beijing Representation Office GS Caltex (Yantai) Energy Co. 2012 and is striving to practice GSC Way in its policies. Ltd.. GS Caltex Corporate Overview Organizational Structure Reasons for creating GSC Way With the establishment of GS Energy. .. Gangnam-gu.. Qingdao Lidong Chemical Co. Divisions Support Business Flagship Brands Lubricant Supply & Marketing Business Trading Headquarters: CEO & Chairman GS Tower. Ltd. Ltd. Ltd. Ltd. Ltd.. GS Caltex Corporation Japan office GS Caltex (Suzhou) Plastics Co. Flexibility Challenge GS Caltex (Langfang) Plastics Co. India Corporate Reporting Directly & Change Flexibility _ Welcome diversity with an open mind Planning Subsidiary Russia... Ltd. GS Caltex provided a common framework of principles which is applicable to Date of Establishment May 19. GS Caltex (Suzhou) Plastics Co. Ltd. Ltd.) all employees. GS Caltex (Langfang) Plastics Co. and internal/ Headquarter Business Petrochemical Management Manufacturing external expert workshops. GS Caltex Russia Representative Office GS Caltex (Suzhou) Trading Co.. business environment. - Think ahead and be the first to act - Concentrate internal and external resources and capabilities - Create tangible results We will achieve our vision through the GSC Way | Overseas Network | GS Caltex London Branch GS Caltex Beijing Representative Office GS Caltex Singapore Pte. s. eco-friendly products..205 Challenge _ Set high goals and pursue them aggressively * VGOFCC: Vacuum VGOFCC Project Gas Oil Fluid Catalytic Organizational Structure 7 headquarter divisions. Challenge and Excellence.. Ltd. We will: GS Caltex Abu Dhabi Branch GS Caltex Singapore Pte. 2011 Sustainability Report 8 / 9 GSC Way GS Caltex Corporate Profile GS Caltex meets its domestic demands with high-quality. GS Czech. management and daily business activities to achieve the vision. Korea Divisions Human Resources Overseas Office and Singapore.. our organizational structure changed In order to achieve the company's vision of “The Leader in Providing Total Energy Service” and from: 8 headquarter divisions and 1 project-to: 7 headquarter divisions and 1 Company Name GS Caltex Corporation management goal of “Bridge to  the Future”.r..o. Flexibility. 1967 (Incorporated as Honam Oil Refinery Co. GS Caltex (Jinan) Energy Co. China. Ltd. the promise we all should keep together to the national economy with increased exports. GS Caltex (Qingdao) Energy Co. Yeosu Trust _ Fulfill one’s role.. and proactively prepare for future changes in the project on January 1..o. employee surveys. Ltd. 1 project Project (restructured on January 1. s. Ltd. Ltd.. Korea Location of Finance GSC Way Organizational Values Headquarters Plant: Yeosu Complex-1056 Wolrae-dong. Seoul.. GSC Way was upheld through executive meetings. acquired through sustained investments. GS Caltex India Private Ltd. 678 Yeoksam-dong. Ltd. GS Caltex (Qingdao) Petroleum Co. through the creation of its own global competitive GS Caltex’s vision is to be accomplished through GSC Way. Ltd. of Employees 3. Qingdao Lidong Chemical Co. Ltd. 2012. Ltd. GS Caltex India Private Ltd.. trust and respect one another City. GS Caltex (Suzhou) Trading Co. GS Caltex (Yantai) Energy Co.. Japan and Abu Dhabi to the CEO Management and behavior No. GS Caltex (Qingdao) Petroleum Co. UK(London).

of Certified Employees 3. About we directly imported 250.r. China.3% 30. By 2011. GB(Green Belt) . 360.000 service profit ratio is above 25%. green- producing 775. we meet 9.9% towards the goals of creating financial benefit. As part of our proactive global market 1. Our top priority here is achieving expansion initiatives in 2011. Our materials and other next-generation energy storage With the established infrastructure of 3. of MBB* 0 5 3 Refinery Lubricant Aromatics Poly Propylene Light Oil Gasoline Petroleum In 2011. 석유 전력 지역난방 해외자원개발 녹색성장 석유화학 윤활유 신재생에너지 도시가스 Management Innovation Initiatives innovation initiatives. 15 such wells are in our possession green investments to continue to produce and supply high resin plant in Suzhou. “Champion Project Evaluation Committee” was held in order to set stretched goals and support to achieve them. and our with the long-term goal of internally sourcing 10% of the continue our large-scale investments for a greener future.o was Dangjin-gun. friendly and green society. thin film cells.석유 district heating facilities in the Anyang and Bucheon 전력 지역난방 areas.000 barrels.000. of Projects 464 455 432 61% 76% 90% 51% Project Financial Benefit (KRW 100 million) 533 326 317 Building Company-wide Innovation Culture No.000 tons.000 barrels daily.S. We plan to import more than 1. our continuous efforts for No.9% addition. of Projects 50 52 52 39% 49% 27.000 tons of grease assist us in providing safe and convenient city gas stably. Japan and other through our subsidiary GS Power Co. This contributes to Korea’s million tons a year continuously after 2015. a company-wide integrated innovation program to achieve sustainable profit growth. parts of Asia. our New & Renewable Energy production capacity of 215. Project Financial Benefit (KRW 100 million) 1. GS Caltex Czech. BB(Black Belt).. s. with an emphasis on aromatic products such affiliated company. In order to proactively respond to the low-carbon. waste plastics and 석유 전력 지역난방 해외자원개발 take the lead in enhancing Korea’s competitive edge in the its inspired product석유화학performance and technology윤활유 전력 지역난방as the 석유 도시가스 신재생에너지 전력녹색성장 지역난방 waste catalysts . This led to the creation of a company-wide Ratio of Domestic/Export Markets by Business Domain in 2011 GS Caltex’s Share in the Domestic Market in 2011 innovation culture beyond the Six Sigma initiatives. 도시가스 oil field development business.000 tons of LNG in 2010 and growth policy of the Korean government and to secure oil upgrader(HOU) is the largest in Korea with the daily 75% of our base oil revenue comes from India.5 future growth engines.9% and improving the way we work. in order to produce daily refinery capacity through the development of oil Our green investments follow a two-thronged approach: as paraxylene.. Our goal for Six Sigma Management Innovation Initiatives 2012 is internalizing of the Six Sigma initiatives into our daily Export Domestic GS Caltex Other Industry Peers We at GS Caltex introduced Six Sigma initiatives in 1999 as operations in order to achieve KRW 100 Trillion in sales by 2017. for both business covers fuel cells. GS EPS runs fields.000 barrels of lubricants a day and 8. 해외자원개발 녹색성장 석유 석유화학 석유 해외자원개발석유화학 전력 윤활유 지역난방 녹색성장 해외자원개발 도시가스 신재생에너지 녹색성장 petroleum industry. we are moving 2009 2010 2011 24% 10% 22. In order to take the lead in contributing to eco- stations and 400 filling stations nationwide. 석유화학 윤활유 신재생에너지 도시가스 with an annual capacity of 37. China.654 708 531 GB* No.000kW combined heat and power plants and 도시가스 신재생에너지 Holdings) has. In all.000 tons in 2011. Ltd. We operate LNG-powered combined cycle power plants We are actively seeking out new business opportunities To lay the foundation to lead the global market. More than 90% of the revenues come from and supply electricity and district heating. of Six Sigma Projects. 2011 Sustainability Report 10 / 11 Business Domains | Petroleum | | Base Oil and Lubricants | | LNG and City Gas | | New & Renewable Energy | At GS Caltex. South Chungcheong Province and GS Power 전력 지역난방 to the 7 exploratory wells that our holding company. GS EPS Co. we had 8 exploratory wells making conventional business greener and pursuing new the export markets. With these achievements.800 GB* projects. we including the U. our base oil Since the first import of LNG for internal use in 2009. champion in the domestic 윤활유 finished lubricants market. Ltd.000 kW LNG combined cycle power plants in including the NE Natuna oil well in Indonesia.000 barrels of oil a day and our heavy facility is capable of producing 26. it also engages in the recycling more than 30% of Korea’s petroleum demand supply and products annually. each business unit was encouraged to take creative * MBB(Master Black Belt). as well as Taiwan. As of the end of 2011. Financial Benefit and innovation led to 300 Champion projects. 석유 석유화학 해외자원개발 윤활유 through 전력 지역난방 equity investment 녹색성장 and they form the basis of our 해외자원개발 value-added and녹색성장 신재생에너지 cleaner energy. various cell than 50% of the petroleum products that we manufacture. 800 BB* projects and No. in addition green business areas. | Petrochemicals | | Electric & District Heating | | Exploration & Production | | Eco Business | Our petrochemical business covers the global market.. In Certified BB* Employees GB* 52 214 53 432 55 35 Business Business Business Business Market 30. in 도시가스 석유화학 윤활유 신재생에너지 신재생에너지 도시가스 terms of both market share and sales volume. Our lubricant business produces subsidiaries at Haeyang City Gas and Seorabeol City Gas devices. foreign exchange reserves and the relevant operating internal consumption and for new power plants. We export more Russia and the rest of the world.석유화학 2 composite 윤활유 runs 900. China began commercial operations. (GS ‘high energy efficiency’ and we will expand large-scale 석유 해외자원개발 녹색성장 established in the Czech Republic and the No. Our lubricant business is recognized for of disposed materials such as: waste. developing leaders Champion No. our oil refinery facility is capable of Commencing full-fledged production in 2007.

” From the CEO's New Year's Message Management Support. set up the CSR strategic framework and identify response tasks. compliance diagnostic indicators. GS Caltex GS Caltex launched the Social Contribution Committee in Wan Bae Rha Vice Chairman & CEO. In regarding fluctuations in foreign exchange rates and oil prices. Kyung-Suk Suh Jin-Soo Huh Vice Chairman & CEO. Junior Board facilitates a bottom. the UN-level international We follow the precautionary principle in managing risks ferent from the audit committee under the commercial code) products. Audit Committee (dif- company with an aim to import. R. Blough Vice President. D. In the first half of Task Force in June of 2010 to develop ISO 26000-based CSR In times of uncertainties like today. hosting of the event. GS Holdings Vice Chairman. in the Sang Ho Chyun President. their executive compensation schemes Supply & Trading. consumers up communication channel for employees to present their the ISO 26000 (International Standard on Social Responsibility). our CEO Dong- of the BOD and prevent any possible conflicts of interest. a wholly owned subsidiary practicing the UNGC global standards in the 4 areas of: of 2004. and environment. Proactive Risk Management and Strategic Response them were reflected in business activities. Management of Implementation of EHS expertise and risk management capabilities. is making significant contributions to the Korean board members are prohibited from exercising their voting the final appointment is made at the General Meeting of the government’s green growth strategy. A total of structure between GS Holdings and Chevron until 2011. Chevron Korea . To ensure proactive response to and enhanced compliance with foreign exchange rates human rights. risk management. GS Caltex launched Junior Board. labor and 7 Board meetings were held in 2011 to address major agenda who were carefully selected. the Integrated Risk Management of GS Caltex ternal procedures and guidelines of both shareholders and Soo Hur. Krogmeier Vice President. environmental and social areas. manufacture and sell petroleum We joined the UN Global Compact. Growth for communication with businesses). J. Bennett Vice President and Treasurer. working in relation with finance and Energy and Chevron. changed to a 50:50 joint venture between GS Energy and BOD Performance and Prevention of Conflicts of Interest 2011. by providing a venue for rights on agenda items are of special interest to them. GS Holdings. a company’s BOD Members (as of May 1. Marketing & Business Committee 26000. With of 2010 and declared our commitment to supporting and Management Committee has been up and running since May 8 committee meetings were held in 2011. GS Energy July 2005 in order to set social contribution policies and make relevant important decisions. in January 2012. as stated in the system led by the BOD. activities. Anderson Vice President. local community involvement & development and these plans should be put into action in a timely and efficient Dong-Soo Hur Chairman & CEO. integral part of our corporate governance and are dedicated to enhancing the level of compliance. items such as the Kero Merox Project. The committee contributes to the sustainable improved accordingly in February of 2011. Our Risk and the LNG Procurement Management Committee. labour. in order to evaluate and manage risks that we face of GS Holdings. follow the internal policies of the respective company. Chevron International Products and WBCSD 2002. in December within the economic. Chevron Manufacturing Sustainable Development) to Korea as a member of regular meetings in 2011 to address such CSR agenda items P. for the sustainable development of the Korean CEO. C. Chevron Gas and Midstream as: environmental and local community issues. The committee held 4 meeting of the WBCSD(World Business Council for C. Manufacturing. 2012) 2012. 2011 Sustainability Report 12 / 13 Corporate Governance Since our inception in 1967. in turn. Committee Committee Safety Committee The BOD is comprised of 10 directors who possess professional Junior Board In October 1993. The committee was GS Caltex’s GS Caltex has served as a business leader. R. The recommendations of director (a body established under the Presidential Committee on Green Risk Management System at GS Caltex Articles of Incorporation. the establishment of GS Energy. a group Management of price. To ensure the independent operation nominees are made in accordance with the respective in. GS Caltex expanded and reorganized into the CSR Committee in Contributions capacity of the chair of the KBCSD(Korea Business to KBCSD Council for Sustainable Development) launched in April of 2010. As our BOD members are from GS Caltex. we invited the 2012 general and decisions on major CSR issues. V. in consideration of all possible risks. Economic Risk Social Risk Environmental Risk Shareholders. who serves as the committee chairman and the P. The Chairman and related business risks on compliance with social policies and strategies made up of passionate and professional junior-level employees Response to the ISO 26000 international oil prices and responsibility covering CEO of GS Caltex also serves as the Chairman of the Board. Major response tasks aim to improve our compliance with human rights. our CSR Committee made the decision to stipulate The committee chairman is our company CEO and its members Chevron. Corporate Governance Board Committees Global CSR Initiative Risk Management System There are 3 committees operated under the GS Caltex Board GS Caltex was founded in 1967 as Korea’s first private oil Member of the UN Global Compact(UNGC) Risk Management Committee of Directors: Accountability Committee. the “ success is determined by how proactive the company is in responding to risks. The development of the company by making important decisions on BOD-centered Decision-making System members are not compensated separately for their BOD GS Caltex is committed to enhancing efficiency and transpar. GS human rights policies and relevant internal policies were are GS Caltex executives. Chevron Corporation presidents who serve to create a venue to make discussions industry In addition. assists us in improving the sustainability of GS Caltex as a responsible corporate citizen. This. The board resolutions require an affirmative vote of Green Growth Business Dialogue ency in management activities through the decision-making In his capacity as head of the Green Growth Business Dialogue more than two-thirds of all registered directors. environment and anti-corruption. Edwards Country Chairman. GS Caltex other topics that correspond to the 7 core subjects of the ISO CSR manner to turn each crisis into an opportunity. the 37th Junior Board is operated. the company’s ownership human rights. GS Caltex has been promoting transparency in management We also recognize that meeting our social responsibilities through our CSR Committee forms an through the decision-making system under the supervision of the Board of Directors (BOD). Action plans should be set in advance Name Position for each scenario. The company maintained a 50:50 joint venture agreement on corporate social responsibility. The CSR Committee consists of the company R. with a focus the WBCSD and we are dedicated to the successful on how to respond to the ISO 26000. communication and dialogue between the government and Risk Management CSR Environmental private companies. marketing strategies and opinions to CEO. They proposed 132 ideas and about 70% of we moved faster than other companies to form the ISO 26000 the 2012 business plan.

6 3.3. March 8.7 25 company’s influence sphere ★ 32 44 20 3.1 10 Support for customer services and resolution of 22 ★ ★ 10 55 Significance to Stakeholders Relevance Relevant issues were assessed for their 4. 11 Depletion of natural resources (fossil fuel. stakeholder groups at GS Caltex.7 3.49 3. the introduction of fair trade safeguards and the promotion of sustainable consumption. compared to 2008.1) 4 3 Guarantee of fair employment and employment 3. 3 Increasing influence of government policy ★ ★ ★ 27 17 in number than other issues.0 complaints and disputes Test level of materiality to GS Caltex and to 6 2 1 23 Fair and adequate consideration of the quality of ★ ★ 34 31 stakeholders. The overall level was enhanced even • Labor Practices: Excellent Workplace Innovation Company’ chosen by Increasing number of consumers who value health the Ministry of Employment and Labor further this year.9 labor conditions 9 8 (ISO 26000 7. procedures.52 Stakeholder Identification Stakeholders Stakeholder Research 15 Recognition of social responsibility ★ ★ 44 14-15 The outcome is identical to that of 2010. ★ Material Issue 1 u) oS or s y( Ye est Recognizing Social Responsibility y su e nt s t io ns nit u er s/ Inv ie s ty s ri t l Is ee s me Sta ls mm old o ri ge ri o ri a loy ers i ce ua l Co iar Pri Pa 11 P te p p p li ve rn r v d i v id c a O a re h b sid 10 .2. In-depth interviews were conducted On/off-line surveys were performed on 16 Protection of consumer data and privacy ★ 4 54 which was identified through the ISO with the representatives of the 9 core stakeholders between February 24th and 26000 standards.2 4.) ★ ★ 16 39 2 12 New 3. to choose material issues and define the report content in a bid to both review the From the 52 issues. material issues identified in 2010 and to discover new issues. etc. which were then screened. 2011 Sustainability Report 14 / 15 Report Content Definition Process We at GS Caltex followed both the GRI report content definition rules and the ISO 26000 Material Issues Identified The materiality test conducted through stakeholder engagement assisted us in identifying 52 relevant issues out of 115 sustainability issues. which revealed that issues concerning con. through the refining of human rights policies and guidelines.3 26 30 23 Endeavors to support investments in local 29 communities ★ ★ 42 46 27 3. tors whose reporting levels were relatively low as a result of such analysis were reviewed and their reporting levels were enhanced 4 Increasing sources of alternative energy ★ ★ 9 38 wherever deemed appropriate.43 high sulfur heavy oil management systems.5 22 21 16 27 Generation and distribution of economic outcomes ★ ★ 31 6 Test significance to GS Caltex stakeholders. 17 Fair competition ★ ★ 21 43-44 Growing importance of employee rights and 18 responsibilities ★ ★ 36 25 3 Materiality Test 19 20 Increasing demand for distribution structure improvement Growing wealth gap ★ ★ 45 47 44 43-44 Material Issues Identified ● Trend ● Impact 21 Participation in local community development ★ 24 45-49 4. 31 were then finalized to be reported through the materiality test. Those indica.1 4.5 3. 3.3 4.2 Contributions to education and the cultural 30 development of local community ★ ★ 39 47. the environment and fair operating practices were higher both domestically and abroad on an indicator unit. Major Issues Covered by the Media 5 Tightening environmental regulations ★ 2 18 • Consumer Issues: Consumer support issues (including prices of heating oil) Re-diagnosis of CSR Compliance 6 Increasing waste that pollutes the environment ★ ★ 15 20 • Fair Operating Practices: Expansion of ethics management and strengthened We used the ISO 26000 diagnostic indicators that we developed shared growth 7 Growing demand for transparency ★ ★ 1 41 • Community Involvement: Expansion of a philanthropic culture and internally to evaluate the level of our compliance with CSR princi- 8 Prevention of environmental pollution ★ ★ ★ ★ ★ 5 19-20 the protection of cultural assets ples just as we did in 2010.4 4.6 26 Fair marketing activities ★ 22 55 28 13 Significance Relevant issues were assessed for their 3.10-11 Expansion of profit created through exports ★ ★ Stakeholder Identification and Engagement 13 Intensifying competition ★ ★ 30 3 In-depth Interview with 14 Sustainable use of resources ★ ★ 23 23.8 11 24 relationships ★ ★ 33 26-27 7 5 19 Promotion of social responsibility within a 3. 3.4 31 25 29 14 12 28 Provision of job creation opportunities ★ ★ New 48 18 3. 2009 and 2010.5 31 Guaranteed social dialogue between employees ★ ★ 37 26 Significance to GS Caltex . ity report was compared against those of other major refineries 2 Growing demand for fair trade ★ ★ ★ ★ ★ ★ 3 41 sumers. 2012.9 4.8 3.0 4.4 3. thanks to such initiatives as: the development of 9 and eco-friendly society ★ ★ 8 51-52 • Environment: Stronger competitive edge in export. 15 17 which were then scored.060 media articles regarding social responsibility in The GS Caltex level of performance reporting on our sustainabil- 2011 were analyzed. the introduction of energy 10 Customers’ growing price sensitivity ★ ★ ★ ★ ★ 17 12.33-36 A total of 4. of 20 Ma Em Su G o Se In Lo N G Sh Su 20 N o Media Analysis Performance Indicator Analysis of Industry Peers 1 Growing instability in global politics ★ ★ ★ 25 3.

in all our estab- investments (unit: No. Ministry of Great Work Place → 25 Environment company has been proactive in responding to the govern. GS Caltex has are fully committed to generating tan- System → 17 Deputy Director faithfully fulfilled its role as a leader in the sense that the gible outcomes in this regard.) establishment by function eco-friendly way through the low carbon environmental sustainable ◆ EHS & Q integrated system ◆ Sustainable Use of Resources management system operation ◆ Prevention of environmental Pollution ◆ Company-wide Actions to Climate Change ◆ Protection of Marine Environments and commit ourselves to Low Carbon Environmental Management creating a great work place that delivers maximum satisfaction to employees GS Caltex’s Commitment Stakeholder’s Voice through our humane management philosophy. GHG regulation is highly critical issue in the oil refin. The into action in the entire spectrum of company needs to make sure that its emissions of GHG our business conduct-spanning from are reduced within the entire operational spectrum-from product purchasing to production. Especially. of employees) per Employee evant processes should be established and outcomes be lishments by function. The implementation of an emissions trading our social responsibility to reduce GHG Hyun-Soo scheme. In 2011. constitutes a huge factor here as it emissions as an oil company and we Establishment of the Low Carbon Environmental Management Kuk may act as a game-changer in the market. in particular. harmful substances of in-house carbon neutral programs such as VOC generated during the fueling process affect in 2012 will enable us to become even consumer health and thus demand closer attention in the more proactive in responding to cli- upcoming years.205 102 (unit: KRW 100 million) (unit: hours) disclosed transparently. and use in all neutral programs conduct our business in an value chain marketing/support and etc.Sustainable Operation 2011 Sustainability Report 16 / 17 Establishment of the Low Carbon Environmental Management System Stakeholder Issues Identified through the We at GS Caltex manage low carbon Materiality Test environmental performance (covering response Priority to climate change and the prevention of Increasing influence of government policy 3 environmental pollution) through an advanced Tightening environmental regulations 5 world-class management system and environmental investments. we put low carbon energy policies ment’s fuel environmental policies over the years. The introduction 299 3. sales to consumption. . We activities should cover the entire Environmental company-wide level entire spectrum of product in-house carbon spectrum of the Management (purchasing/production/ purchasing. Increasing waste that pollutes the environment 6 Prevention of environmental pollution 8 Sustainable use of resources 14 ●Completed On-going OUR OUR CHALLENGE RESPONSE 2012 CSR 2011 2011 CSR Issues Progress Implementation STRATEGY Implementation Tasks Major Achievements Task We at GS Caltex aim for Low Carbon Climate change response E xpansion of climate change response activities on a Low-carbon energy policies were put into action in the Introduction of the sustainable operation. Rel. We at GS Caltex are keenly aware of Government ery sector. mate change. production. from Environmental Employees Training Hours production to crude oil drilling and transportation.

We at GS Caltex ensure the health and safety of 1. NOx Health & reduction facilities have been additionally deployed in boiler and No.047 3. including the ISO 14001 (environmental management system) limit that are even stricter than national legal year of 2008 over the next 5 years by 2016. T  o meet these environmental goals. we build quality management systems facturing processes and manage the discharge of wastewater across the board. Health & Safety Principles Quality Principles 2011 133 29. No. Yeosu Complex is equipped with such air pollution control proactive remediations are taken. SOx. thereby earning trust from the public. W  e abide by all environmental regulations in our thus. ous manner. RTO*. In this and that our environmental management principles are way. multicyclones. on top of committing nance and operation of establishments and the mini. We at GS Caltex meet customer needs and expec. VOC 127 134 129 3. health & safety and quality management. Ground Installation of Oil Pipes at Plants and Terminals systems and take environmental management initiatives more VOC. VOC. To this end. to increasing continuously.741 12. We have been installing oil pipes at plants and terminals on Internal Emission Limit Stronger than the ground which used to be laid underground since 2003 to proactively. every three years. safety and quality management. 1. Health & Safety In order to prevent and minimize environmental Ministry of Environment and the Jeollanamdo.125 9. of service stations Percentage(%) Principles Principles 2009 97 21. KSA/ISO 14001 and have these systems registered with tional certification bodies. been observed in a bid to strengthen eco-friendly management and NOx reduction units. health.071 14. boosted our capability to eliminate pollutants. (in accordance with BS EN ISO 9001 and KSA 9001/ on a daily basis. Safety and Quality Principles Stringent Operational Standards ▶ We apply our own makes soil pollution inspections. Second Voluntary Agreement to Reduce the pollutants in water treated in wastewater treatment facilities. 3. Air Pollutant Emissions This in turn. In the case that pollution is found. We consider ment as our core priority in fulfilling our responsi. mental pollution. Health. pleasant and injury-free faithfully do our part as a healthy corporate citizen. to reduce the integrated management system at GS Caltex to Management System Certification pollution that may be caused by our production emissions of air pollutants generated near the Yeosu National ensure the comprehensive management of the activities.981 3.390 Monitoring of Water Pollution and Operation preventive actions in everything that we do. We monitor sources of wastewater generated from manu- CO 361 589 581 that health & safety information is shared trustfully environment. carbon filters were installed to reduce mization of health & safety risks (through health & uously check to make sure these systems are improved ficiency of these systems. independently and on their own safety and quality. international certification bodies. * RTO: Regenerated Thermal Oxidizer ** VRU: Vapor Recovery Unit National Environmental Regulations ensure the fundamental prevention of soil and underground The efficient operation of the EHS & Q integrated system ensures Automated Stack Gas Emissions Measurement System ▶ water contamination. feed water. safety and quality principles have facilities as: electric precipitators. as well as new processes. health. SOx and NOx. the number of clean service stations equipped with Environmental Management NOx Reduction Devices ▶ Low NOx burners are being double-wall tanks. mainte. we build environ. provide products and services that satisfy relevant Dust 228 242 203 workplace through continuous improvements and in putting top priority on the prevention of environ. SOx 6. we guarantee that the health and safety mental management systems in accordance with the QS 9000) and have them registered with interna. we at GS Caltex apply internal emission Industrial Complex and surrounding areas. respective areas that serve as guidelines for environmental. we contin. in the entire areas of: air/water/soil quality and chemicals & waste.937 tions in our entire business conduct and make sure entire business conduct to maintain a pleasant living Total Energy Service’. we create advanced health& safety manage. Emissions of Air Pollutants (unit: ton/year) all our employees and our suppliers. This is further complemented by principles in Since the declaration of environmental management principles. proclaimed both internally and externally. regulations. ourselves to cutting air pollutant emissions by 13% from the base environment.6% use of the cleaner fuel of LNG. solidify our status as ‘The Leader in Providing NOx 4. management system) from such international certification Soil Pollution Prevention bodies as the ISO. To prevent soil contamination caused by oil leaks from pipes and tanks. VRU**. Total 11. Sustainable Operation Establishment of the Low Carbon 2011 Sustainability Report 18 / 19 Environmental Management System 18 EHS & Q Integrated System 19 Prevention of Environmental Pollution 21 Company-wide Actions to Climate Change EHS & Q Integrated System 23 24 Sustainable Use of Resources Protection of Marine Environments Prevention of Environmental Pollution Our EHS & Q integrated system is our own unique International Environmental. Underground water monitoring wells are that we comply with all environmental regulations. in order to follow these international standards for environmental. SOx. 2. of Clean Service Stations Safety Quality incinerators since 2008. Additionally. installed to measure pollutants water pollution. the Ministry of Environment in 2002. reduce emissions of NOx from the initial generation stage. safety improvement programs and training). ment systems. and the OHSAS 18001 (occupational health and safety regulations. and NOx. national law) assist us in practicing environmental management in a covering dust. We will commit We were certified with wide-ranging international standards. NOx. 3. put top priority on environmental factors in business conduct in law. tations through scientific and systemized quality 2009 2010 2011 it a top priority in our management activities and bility to protect the environment as a company and management as a total energy service leader and Water Pollutants Control gravitate towards a safe. The automated measurement networks are up and Improved Soil Pollution Prevention Facilities at running to allow systematized management of the air quality in Service Stations the vicinity of our plant sites. and CO in an automated and continu- voluntary and proactive manner. Our own internal Every stack within our plants has CleanSYS (automated gas installed at our plants for the constant monitoring of underground standards (which are far more stringent than what is required by emissions measurement units). health. We comply with all of the health & safety regula. We earn trust from and impress our customers and of Advanced Treatment Facilities 2. safety and quality. our environmental.978 7. We signed the 2nd voluntary agreement on May 13th with the . which help reduce emissions of dust. through the 2010 119 26.7% * Based on the 448 service stations owned and directly operated by GS Caltex as of the end of 2011 1. Voluntary Soil Pollution Investigation As part of our compliance with the "voluntary agreement to EHS & Q Integrated System Air Pollution Control investigate and restore soil pollutions" between GS Caltex and Establishment of Environmental. health. our entire establishment Our EHS & Q integrated system is up and running to ensure the Discharge of Air Pollutants efficient and systematic management of the environment. Moreover. To this end. We at GS Caltex consider environmental manage. and double-wall pipes leak detections is Principles installed in existing plant heaters. 1996.240 the wastewater from distillation facilities is reused to desalter of our workers is secured regarding: design. 2. To increase the recycling rate of wastewater.7% Use of Cleaner Fuel LNG ▶ We endeavor to cut the emissions Environmental Management Principles of air pollutants covering: dust. that operational standards that exceed the thresholds prescribed by initiative. ourselves to the continuous improvement of the ef.

If undocumented. as well as process change across the entire value chain.1 236.All energy sources excluding pur.176 Environmental Investments (unit: KRW 100 million) cluding executives and team leaders aims to examine the general Our GHG inventory was set up in 2008 to meet internationally- conditions and covers recent energy efficiency index outcomes agreed standards in accordance with the IPCC (Intergovern- Recycling Rate(%) 54.506 2.786 oil) from wastewater treatment facilities as fuel for kiln of cement Production Facility Expansion through . * LDAR: Leak Detection and Repair Energy Management Initiatives Discharge of Hazardous Chemicals (unit: ton/year) Discharge of Water Pollutants (unit: ton/year) 2009 2010 2011 Highest Energy Efficiency 2009 2010 2011 By running a dedicated organization for energy efficiency im. was put into commercial operation in October corporative firms and environmental officers. the waste is not developed to enable real-time management effects regarding 2009 2010 2011 (Heavy Oil Upgrading) project as a future engine of growth.001 1. We have a dedi- Voluntary Agreement to Reduce the Use of Chemicals Soil Pollution 89 14 6 109 allowed GS Caltex to build energy efficiency into its corporate cated organization responsible for GHG management and this Our EHS&Q integrated information system allows us to check the Others 17 17 3 37 culture and make consistent and bold investments in energy ef. consumption of hazardous chemical substances daily and make Total 2.716 5.9 3.Purchased electricity (MW) 207 228 276 the No.314 ficiency and energy saving projects. Indirect energy consumption (EFO BD) 3.712 36. In particular.Comsumption of purchased steam • VGOFCC(Vacuum Gas Oil Fluidized Catalytic Cracking) Our ‘Optimization Subcommittee’ is responsible for analyzing (EFO BD) the energy improvements made and the progress in achieving Total (EFO BD) 36. In addition. in.902 7.187 2. and GB tasks to Environmental Investment identify energy improvement items. 32.1 Trillion in the No.3 PCE 47 47 46 best domestic and overseas practices to save energy.677 20. .637 34.967 34.1 266. Sustainable Operation Establishment of the Low Carbon 2011 Sustainability Report 20 / 21 Environmental Management System 18 EHS & Q Integrated System 19 Prevention of Environmental Pollution 21 Company-wide Actions to Climate Change Prevention of Environmental Pollution 23 24 Sustainable Use of Resources Protection of Marine Environments Company-wide Actions to Climate Change Tighter Internal Effluent Limit for Water Pollutant chemical consumption’ with the Ministry of Environment in We became the 1st Korean oil company to be Discharge 2004. in order to ensure effi- VOC 36 4 . own Champion tasks (for executives). which is to To ensure efficiency in waste management. Management of GHG Emissions Amount Recycled 12.173 Capacity: 53. and foreign exchange rates. under which we made a pledge to achieve 30% and 50% certified with the ISO 50001 for energy management Our internal operational standards for water pollutant dis.3 59. as well as required running. ensures the real-time monitoring of GHG emissions. a move that aimed to respond to the climate charge were tightened to 50% of the statutory minimum. we use real-name provements in real time).922 16. allow us and the integrated company-wide innovation programs were ini- Phenol 0. produce high value-added and cleaner light oil from low-grade certification with signatures from the discharging teams.457 term roadmap established.795 14. water pollutants. performance and loss monitoring energy innovation initiatives. reductions in quantities of chemicals discharged within 3 and 5 system. which quarterly basis). The monthly ‘per- Total 23.324 525 167 71 763 marine pollution Resources Institute) GHG Protocol and the ISO 14061.529 38. ciency in the management of GHG emissions. we are fully committed to the deliv- HCl 1.500 formance review meeting’ attended by all related managers. the WRI(World Total (excluding recycling) 11. additional leap forward. 4 HOU dates of treatment specified.3 2009 2010 2011 Total Waste water and from the Yeosu Complex. 40 and the working-level executive capabilities of our employees. Our IT- Air 1.272 19.1 0.000 BPSD * EFO BD: Equivalent Fuel Oil Barrels per Day 2009 2010 2011 plans. Such endeavors were rec- regular evaluations of chemical consumptions (on a monthly and ognized by the Korea Energy Management Corporation. 4 HOU(Heavy Oil Real Name Certification for Waste Discharge and To ensure more efficient energy management. systems and heating furnace monitoring systems are up and heavy residual oil. in order Upgrading Facility Investment: No.427 BOD 88. In 2011. .790 20.9 3.7 provement.054 company. This assisted us Direct energy consumption (EFO BD) to expand production facilities and lay the basis to take an in building and operating a systematized energy management .359 38.370 Capacity: 5. and we continue discharge concentrations are higher than the legal threshold. the discharge of pollutants. our endeavors to discover the ergy efficiency and cost reduction constitute the core indicators N-H 8. We signed the ‘voluntary agreement to reduce awarded GS Caltex the Presidential Award. we at GS Caltex have been systematically taking Amid rapid and sudden fluctuations in international oil prices H2SO4 250 440 495 COD 159.000 BPSD optimization. energy cost reduction and energy-saving items. reward scheme is up and running to encourage engagement in Vacuum Residue Hydrocracker (VRHCR) unit.0 53.4 NH3 176 226 231 competitive edge.8 79.365 14.02 0. efficiency moni.130 internal management system examinations. chased electricity and steam (EFO BD) we work in alliance with corporative firms to utilize sludge(waste system which ensured consistent energy saving.4 65.656 to achieve best-in-class energy efficiency. P-Bank (Productivity Bank) Waste Disposal Management Energy Management Systems was also recently opened as a idea suggestion system. mental Panel on Climate Change) guidelines.562 3. BB tasks.366 Winning the Presidential Award for Energy-saving based GHG management system was modified to incorporate Management of Hazardous Chemicals Both the firm commitment at the level of top management the newly installed VRHCR processes.923 4.960 13.3 energy management initiatives in accordance with the long. En- SS 72.0 118.387 environmental non-conformance reports are issued.230 43. If years respectively (by the years 2007 and 2009 respectively) change crisis more proactively. All GS Caltex employees perform their Total 329.334 813 219 2.000 BPSD Waste Discharge (unit: ton/year) roadmap milestones. We also invested KRW 1.616 8. 4 HOU Project Energy Improvement Committee 758 785 1.917 22. against the base year of 2001 and have been working with our to build company-wide preparedness for climate environmental non-conformance reports are issued to manage leak detection and repair(LDAR) system.4 67. in addition to the progress review of the half-yearly Actions to Climate Change General Waste 14. Creative Innovation for Energy Efficiency NaOH 3. an energy unit price management system was Energy Consumption of 2010.8 industry peers and Chevron's own and joint ventures refineries.4 57.871 4.08 Total 5. collected and if waste is neglected or insufficiently separated. It is also responsible for setting future • Gasoline HDS(hydrodesulfurization) Capacity: 24. as a way to sustain our endeavors in reducing improvement. in order to build a world-class energy ery of high-quality products at lower prices to our customers. through the review of optimization activities and hardware • Alkylation (production of eco-friendly high-end gasoline) Designated Waste 8. compared to Korean tiated in 1999 to this end.5 105.014 299 3. to gather creative ideas from employees and the rating-based Upgrading)Project Reuse of Sludge toring systems (which manage energy consumption and im.

662 50. recognized for their contributions in reducing GHG emissions. . mobile combustion.823 28.553 3. us to control the amount of wastewater used according to differ- through continued interest in energy and the environment.000 tons of credits were traded. 10 2009 2010 2011 high-level commitment to and interest in energy efficiency and energy efficiency projects that focused on Yeosu Complex were We set up an on-line waste management system that covers the No.002 Total Emissions: 6. Our endeavors for the contin- ter generated from the manufacturing processes is treated and ual improvement of energy efficiency and GHG issues will be further strengthened reused as desalter feed water to minimize the total generation through the Plan-Do-Check-Act cycle in the upcoming years.301 facilities as fuel for kiln of cement company at the fuel recycling 1. but to establish a framework for such real-time monitoring of wastewater composition enables the sustainable growth of the company in accordance with international standards. 2 Plant 10.100 Company-wide TF to use of sludge (waste oil) generated from wastewater treatment Chairman cope with Climate Change 2009 5. Moreover. Total 36. No. Included in our efforts to turn waste into high value- added resources. A total of No. to build preparedness for the introduction of the GHG emissions Water Consumption (unit: ton/day) of the waste and wastewater generated from egies to improve energy efficiency and reduce GHG emissions. is also company with a competitive edge in energy efficiency.839 21. In 2011. by addressing governmental policies and building a GS EPS) are doing transactions in the GS-ETS and are given in. composed of executives.159 38. the TOC(Total Or- ganic Carbon) measurement devices are installed to measure in order to ensure a more proactive to these challenges. sour wa- and in committing to a transparent and fair system. while energy management is also gaining greater significance The influent monitoring system is up and running specifically to in responding to oil prices.669 GHG issues lead to working-level actions across the company.672 10.492 plant and the extraction of metal substances out of waste con- 2010 5. storage and treatment of waste and our team-specific waste discharge real name certification sys. ent conditions and to treat concentrated wastewater separately.669 systems and enabled us to secure early actions of GHG emis- sions reductions.273 Total Emissions: 7. the top management at GS Caltex declared that the company’s energy This allows us to make significant contributions to the stable op- management guidelines needed to take the lead in improving energy efficiency eration of wastewater treatment facilities. of waste management.308 GS GS GS Water Quality * Direct emissions: Emissions from stationary combustion.490 taining such transition metals as Mo and Ni. environmental non-conformance re- Environmental & Safety Planning Division ports are issued to ensure that corrective measures are taken im- GHG Emissions (1. 2 Plant 0 0 0 These reports were registered with the relevant governmental tem ensures less generation of waste and enhanced efficiency Total 3. GS Power and No. GHG and energy management is the microorganisms used in biological wastewater treatments.553 3. are the CEO & 799 Total Emissions: 6. the ‘Climate Change Task Force (TF)’ (which con. minimize microorganism mishaps caused by the influx of con- ergy management system standard for the first time in the Korean oil industry. If waste found on-the-spot is neglected Secretariat_GS Caltex or insufficiently managed. In addition. process unit Power EPS Caltex and fugitive sources * Indirect emissions: Emissions through imported steam and purchased electricity Our sustained water pollutant control activities ensure that the Headquarters Water treatment facilities * The 2009 and 2010 emissions were verified by a third-party organization in accordance with concentrations of discharge at wastewater treatment facilities the energy and GHG target management system guidelines and the 2011 GHG emissions are under verification are below 30% of the legal threshold. we are enhancing the activity and efficiency of Due to the aggravating climate change crisis. Under this system. the GS-ETS was held on a month- Waste Recycled Water (water reused for crude oil desalters) ( unit: ton/day) duction of the company-wide emissions trading scheme. Yeosu Complex 1.487 28. Sustainable Operation Establishment of the Low Carbon 2011 Sustainability Report 22 / 23 Environmental Management System 18 EHS & Q Integrated System 19 Prevention of Environmental Pollution 21 Company-wide Actions to Climate Change Company-wide Actions to Climate Change 23 24 Sustainable Use of Resources Protection of Marine Environments Sustainable Use of Resources Climate Change Task Force Proactive Actions to GHG Regulations We at GS Caltex are committed to the sustainable Water Management System At GS Caltex. The certification did not the composition of wastewater influent every 6~7 minutes and simply aim to obtain an international certificate. transaction outcomes. To this end. The Green Growth Committee.581 2011 6.039 up and running to establish our mid/long-term green growth 8 establishments (covering our Yeosu Complex. transportation. collection. centrated wastewater. gaining importance. Thus. Our GS ETS (Emission Trading System) was initiated in 2009. and to raise the recycling rate of waste. use of resources by increasing the recycling rate sists of related team leaders) is responsible for discussing strat. GS Caltex was certified with the ISO 50001 en. Our TMS handles water from wastewater treatment facilities that is directly discharged to public areas. centives according to their level of GHG target attainment and mental GHG energy target management program and the intro.367 3. In responding to the introduction of the eco- Energy Management System Certification (ISO 50001) toxicity system.367 3. Such ly basis and 32.330 strategies. 1 Plant 25. 1 Plant 3.369 long-term roadmap that covers our participation in the govern.000 tCO2eq) Direct Emissions Indirect Emissions mediately. trading scheme and we play a leading role as an eco-friendly 2009 2010 2011 manufacturing processes. of wastewater.

including oil spills caused by the transportation of Fair and adequate consideration of the quality of labor conditions 23 employee satisfaction through the operation of benefit products and raw materials. 2 Plant construction thanks to the a great work place in the upcoming years. held between August 25th and Kim especially critical factor to ensure the growth a company. we Materiality Test Priority Oil Spills are fully committed to the enhancement of employee perform intense disaster prevention training to We are fully aware of the significance of environmental marine Growing importance of employee rights and responsibilities 18 competency. we held an event with local fishermen CSR 2011 2011 develops full knowledge of the geographic features and use of CSR Issues Progress Implementation and community leaders to release 25. On April 14. our marine resources protection initiatives have continued since 1996 in order house drills. with the theme of marine preservation Labor Union perspectives and employee perspectives. Strengthened Prevention Training ▶ We at GS Caltex are ●Completed On-going every place of business is committed to preserving the local building accident prevention capabilities through intensive in- environment. tion control teams to work with contamination control compa. In 2012. prediction program firm basis established for stable labor rela. In the vicinity of our plant in Yeosu. building our own readiness to prevent off-shore oil spills In particular. wage bargaining that extended the retirement age the beauty of the clean Sea of Yeosu (the host city the Expo efits. While we at GS Caltex legacy to be left to next generation. 2011. and to remind summer vacationers of the labor-management declaration for harmony care and respect for others. Such initiatives cost KRW 220 Million. More than 10 rounds of regular prevention drills OUR OUR to protect fishery resources and help local fishermen boost their and education programs are offered every year and real-time CHALLENGE RESPONSE repetitive simulation training ensures that our prevention team 2012 incomes. The GS Caltex-UNEP KuK-Jin harder it is for an organization to grow. We have high expectations that the GS groups and the identification of possible improve- Caltex management will always be willing to ments will be extended to cover service stations embrace the rights of their employees with a and suppliers. 2011. we appoint dedicated pollu- schemes and the facilitation of internal communication. warm heart. we also do our utmost to improve fundamentally prevent off-shore oil spills. Revised standards (plans) were set in Programs to enhance the Human rights policies CSR Committee decision for accordance with such safety awareness of employees Annual Accident Prevention regarding suppliers / the stipulation of human international norms as the UN Human and suppliers (economic. succeeded in concluding a dispute-free collective established its presence as a meaningful venue to promote agement work together to seek mutual ben. together Stakeholder’s Voice GS Caltex’s Commitment exercises are conducted in a more scientific and realistic with the UNEP(United Nations Environment Program) National environment. both labor and management August 27th. Therefore.000 abalone spats into the STRATEGY Implementation Tasks Major Achievements the devices to respond to accidents immediately. also engage in clean-ups and pollution control activities in the villages near the plant and 6 2 2 employment relationships that extend to suppliers and other related organizations management culture and enhancement of job security extended to 60 in 2011 suppliers and identification of possible improvements rounds/year rounds/year rounds/year the adjacent island’s coastal areas. . An impetus behind our growth and development as Yeosu Clean Sea Campaign. 2011) and political rights) cleanup of Odong Island near Yeosu. Committee for the Republic of Korea and environmental camps The wider the trust gap between managerial The top management at GS Caltex firmly believes for university students. our employees pick up debris on Accident prevention programs ▶ Our accident preven- operation ◆ Health & Safety ◆ Development of Human Resources Wolmi Island and clean up the coastal areas regularly. With an emphasis on marine environments and fishery activities. social 'Sea Lovers' Volunteer Group subsidiaries should be stipulated rights policies (guidelines) Rights Declaration and human rights and cultural arena. Prevention training Real-time tide and current and the No. to ensure that Our Yeosu Clean Sea Campaign started back in 2002. Following the labor dispute in 2004. Great Work Place tion programs are combined with a real-time tide & current prediction program. that value 2012 Yeosu Korea). 2011) responsibility We have a volunteer group initiated for the environmental regulations (proposals) (Jun. the to 60. Task sea. the that labor relations based on trust are the greatest has been held every August in Yeosu. our labor condition investigations of vulnerable tions. This ‘Sea-Lovers’ volunteer group (comprised field exercise prevention exercise response exercise regarding employment and harmonious labor- was concluded and the retirement age including service stations and of employees of the Yeosu Complex). Thus. In Incheon. we have world-class health & safety Protection of Marine Environments Provision of job opportunities 28 management systems up and running and take the caused from transportation and to minimize the environmental Preservation of the Marine Environment and impact in case of such accidents. Guarantee of fair employment and employment relationships 24 nies. disasters. Guarantee of social dialogue between employees 31 initiative in protecting the human rights of those Fishery Resources employees working at GS Caltex and our subsidiaries. an oil-spreading prediction program GS Caltex-UNEP Yeosu Clean Sea Campaign and a virtual emergency response program. was attended by 87 university students and Union Leader of a company is how stably labor and man. (which was designated as Great Work Place Endeavors are required to a National Park) and members clean up the coastal areas of the Water surface cleaner Private-public accident Virtual emergency meet social responsibilities Preservation of the Investigation of labor Dispute-free collective wage bargaining conditions for the vulnerable island each month. will guide us to deliver importance of environmental preservation. where terminals sustainable ◆ Mutually-Beneficial Labor-Management Culture ◆ Protection of Human Rights and lubricant plants are located. Our management guidelines. civil rights Training and Education and undertaken systematically (Feb. Sustainable Operation Establishment of the Low Carbon 2011 Sustainability Report 24 / 25 Environmental Management System 18 EHS & Q Integrated System 19 Prevention of Environmental Pollution Great Work Place 21 Company-wide Actions to Climate Change Protection of Marine Environments 23 24 Sustainable Use of Resources Protection of Marine Environments GS Caltex is dedicated to protecting and preserving Off-shore Oil Spill Prevention Training a beautiful and clean environment as an invaluable Stakeholder Issues Identified through the The source of our competitive edge as a company Prevention of Transportation-related Off-shore originates from our employees. In 2011.

389 5. whose members are employees at these establish. of persons) Baseline figures No. . consecutive years. Retirement Pension System No.559 1. of persons) ● Unionized employees (ratio) 150 Essential Minimum Work Agreement 2010 3. in 2011 and in consideration of general business conditions. No. 2009 2010 2011 the Yeosu Complex and the local branches at the terminals and lu- Regular Workers 47 128 179 bricant plants. a retirement pension help desk. 2011. of retirees Resignation rate Non-Regular Workers 350 123 44 ments. 2005 (to the mandate for collective bargaining agreements was handed team to research and review a wide range of data on retirement Senior Executives 55 53 60 over to the company in 2009 as well. On top of this. This commitment forms the basis upon To ensure job security. they are able to decide whether * Others: special assistants to chairman/corporate advisors/in-house security police/private to switch to the DC(defined contribution) plan. all employees must initially join the DB(defined benefit) Total 3.59% * Non-regular Workers in 2009: including interns hired under the energy internship program 3-year terms. our labor and management agreed to in- Entrusting Wage Negotiations and Dispute-Free which we create joint endeavors to make sure that GS Caltex re. starting from 2012. Sustainable Operation Great Work Place 2011 Sustainability Report 26 / 27 26 Mutually-Beneficial Labor-Management Culture 28 Health & Safety 30 Protection of Human Rights Mutually-Beneficial Labor-Management Culture 31 Development of Human Resources Starting with the announcement of the ‘declaration steadfast trust in the company.584 ance with the labor-management charter.621 1.242 1. As a result. founded in 1971.205 * Contract/dispatched workers: Including those rehired after retirement plan and then.569 2011 1.100 3. * Performance bonuses. we laid the basis to build a stable corporate culture and generated company decided to institute a 4% increase in wage levels.124 29. we have what is called “the essential minimum work 2009 2010 2011 184 agreement. the establishment has Office Workers 32. retirement pension guidance and continued to carry out joint labor-management Support Workers 45 46 49 concluding collective wage negotiations for 7 consecutive years.677 at GS Caltex has been entrusting management with the authority since the end of 2010. With sustained outcomes. These endeavors allowed us to win the Prime Minister’s Award at the Industrial Relations Culture Awards in 2011.249 4. Contract/Dispatched Workers 114 84 123 consensus among our employees regarding the company-wide group and local scholarship and education retirement pension system. the Yeosu Com- 2009 2010 2011 plex has been committed to achieving the corporate vision of shared growth between labor and management. izing management to finalize wage negotiations since 2005 and Our labor union and management initiated a joint task force 2009 2010 2011 management charter’ on December 9. the retire- Our labor union made the critical decision to entrust the company by strikes. the labor union has been author.42% Seoul and Others 1. which rec- ognizes companies who put mutu- ally-beneficial labor-management culture into action. allowances. GS Caltex’s Labor Union has 14 different retirement pension companies.074 36. the management harmony’ in 2005. These new recruits attended the ‘introductory training for newly hired graduates tions to the company and concluding dispute-free wage negotiations for 7th in 2011’ for 5 weeks starting from December 19. gaining. troduce a system to rehire those employees who retired due to Collective Bargaining for 7 Consecutive Years in 2011 mains dispute-free.198 68% At GS Caltex. Our system also police. system.297 4. the labor union pension systems and the finalized plan has been up and running achieve our vision of ‘Co-prosperity through Office Workers 1. through productive labor relations in compli.235 68% and 100% of the required essential minimum workforce should be reserved. to reflect the vari- New Recruitments (unit: No.300 Introductory training for newly hired graduates in 2011 ▶ We hired 106 new employees: 20 in the 1st half of 2011. With this confidence that we gained from our employees.537 1. etc. ment age was raised from 58 to 60. been setting a leading example in labor relations by entrusting wage negotia. based on coop- erative labor relations and bilateral partnership. In the aftermath of tremendous losses caused reaching retirement age July of 2009. of employees at the end of year+No.538 1.636 2010 1. Under the current retirement pension Others 22 21 23 programs in accordance with our vision. of persons) Our labor union.55% No. of Employees by Employment Type (unit: No. through the collective bar- with full jurisdiction to conclude wage negotiations once again ing a ‘dispute-free workplace’ through the ‘declaration for labor.147 3. of persons) 2009 1. With such communication channels as productive labor management relations’).262 1. we have Technical Workers 1. of Retirees and Resignation Rate (unit: No. both parties announced the common goal of establish. of persons) for labor-management harmony and labor.408 30.186 69% shares the obligation to participate in the essential minimum work * Baseline figures: No. of Employees by Region (unit: No. Technical Workers 27. we made sure that there was a programs covering support for the under-privileged setting a leading example in labor relations. 55 in the 2nd and 31 technical workers.273 to conclude wage negotiations and has remained dispute-free in presentations for all employees. lunch and transport fees are paid separately.562 1.” under which each member of the entire labor union 2011 3. Industrial Relations Culture Awards in 2011 Average Entry-Level Salary per Employee (unit: KRW thousand) Since the declaration for labor-management harmony in 2005. is made up of the main body at ous needs of our employees. * Those who resigned not included Unionized employees (No.000 38. The union has 3 full-time members (including the union Total 397 251 223 chair) and they are elected directly by union members to serve 149 2009 3.679 1. of retirees Yeosu 1. This agreement is the first of its kind ever to be signed Employment Status at GS Caltex in the industry in 2009. As a result.

ExxonMobil. of items) niques in order to assist our suppliers in preventing industrial acci- dents. 2011. These meetings enable the productive exchange of health ment voluntarily.04 every meeting and health & safety concerns serve as the top prior. to include the working . porates these best practices in their respective EHS system pro- ers to share the latest safety technologies and safe working tech. which led to a drop of more than 50% in incident ticipation in boosting environmental and safety. tive facilities. under the long-term goal of ‘achieving & safety solutions. Because each contribute to undertaking zero-incident activities responsibly. health and safety issues are given precedence in 0. we are fully committed to workplace hours of the employees of suppliers as well as GS Caltex em.000 man hours In particular. This training program aims to en- 2011 20 sure prompt response in the case of fire at these facilities. No. The incident rates (unit: hour/person) to be the critical prerequisites for the happy and at GS Caltex are significantly lower than other global world-class 2009 2010 2011 oil companies and domestic industry peers. through Health & Safety Training for Suppliers (unit: No. a total of 11. 7 subsidiaries were participated in the event. The environmental. 2009 2010 2011 Establishment of Industry-leading Safety Culture of remaining incident-free for 6 consecutive years as of * TRIR(Total Recordable Incident Rate): Total Number of recordable incidents per 200. we are determined to continue Emergency Response Training 22 / 1037 38 / 1065 38 / 1207 supporting a healthier work life for all of our EHS Performance employees. We have also utilized the total recordable incident paredness for incidences of fire at the national level. We arrange regular health & safety training programs for suppli. Our Top Management Priority 0. Sustainable Operation Great Work Place 2011 Sustainability Report 28 / 29 26 Mutually-Beneficial Labor-Management Culture 28 Health & Safety 30 Protection of Human Rights Health & Safety 31 Development of Human Resources At GS Caltex.5 / 1829 21. Health & Safety Training for Employees at the Yeosu Complex safety and health and believe such basic rights ployees in calculating the number of incidents. of Meetings of and Agenda Items Proposed to the Industrial Health & Safety Committee (unit: No. Total 87 teams servation system. TRIR * World Class TRIR ** 0. The plant was highly proactive with its ** World Class: Including Chevron. Moreover. a world-class safety consulting firm.5 / 1387 incident rates. of persons) repetitive real-life simulation training. rates at the site of these suppliers. risk assessments and health manage. These systems enable our suppliers to develop community. for the first time in Korea. We continuously engage in wide-ranging activities. terminals. Some initiatives. an established track record of incident-free working March 30. 2011 11. lubricant plants. human resources and systems. the Industrial Health & Safety Com. After the in. We believe that each Regular Safety Training 21.300 ness against real occurrences of fire. we secured safety in the process of estab- up and running since 1999. suppliers as an annual event to enhance employee awareness regarding factors in advance and in making thorough on-the-spot decide on current issues and job duties regarding environmental conducted safety checks. team leaders and supervisors) Health & Safety for Mutual Benefits suppliers) and has taken the lead in introducing automat- to show care and respect not only for themselves but also for oth- are encouraged to take the lead on safety initiatives. Health and Safety Competition This feat can be attributed to the invaluable endeavors 20 executives in charge of safety environment issues in their re. management systems certified with our assistance. the company-wide EHS performance target is set individual’s happiness leads to the contentment Capacity Building Training 80 / 130 67 / 163 69. BP. which helped them strengthen their health commander's training program’ for refineries and petrochemical of the Lubricant Plant 2010 20 & safety management competency. and process defects (with all its employees together with initiative is a safety culture program that encourages employees management leaders (executives. mittee (jointly attended by both labor and management) contin. all of which ed facilities and addressing noise and brightness issues to Support for Health & Safety Management System er co-workers.5 / 141 and announced through the Management Committee at the be- and growth of the entire organization and society. The IIF issues are direct requests made by the company CEO. 2010 24.800 rate(TRIR). In 2011. including 2009 5. our fire-fight- World-class EHS Performance Management ing programs include some 200 outside organizations. Our Lubricant Plant has Remained Safety Management Leadership 0. through the near miss and safety ob- safety. etc. as the top decision-making body in health & safety policies on their own and undertake zero-injury lishing a clean & green factory.800 supplier employees received safety Professional Fire Fighting Drill Training 2009 20 training and safety managers received specialized safety courses We developed the ‘professional training courses for emergency Lubricant Plant Resolution for Improved Safety for four hours a month. environmental and safety issues and to promote voluntary par- pre-examinations. In 2011. This contributes to enhanced pre- dent rates.620 and students in relevant fields. the “Environmental Safety Committee” has been (KOSHA 18001). based on hours and the thorough management and supervision of safety suggestion system for ideas to improve on mechanical the advice from JMJ. setting EHS policies and strategies for our establishments.12 Incident-free for 6 Consecutive Years 0. three of our suppliers had their health & safety Environmental. health and safety competition began in 1998 made by all the workers at the plant in identifying risk spective establishments attend quarterly committee meetings to troduction of the health & safety management system. plants for the first time in Korea. from Yeosu complex. Our lubricant plant established an amazing track record ity in making decisions on budget.5 / 1342 21. thereby leading the safety culture in the local measures to respond to abnormal conditions of respec- At GS Caltex. deliver a more pleasant work environment.356 We developed the ‘professional training courses for emergency commanders’ for the first time in Korea and offer regular exercises where trainees build prepared- ‘Zero Incident’. R&D Center and a workplace with 10 incident-free years’. we assist our suppliers of IIF guidebooks for all GS Caltex employees and the employees tivity improvements on top of creating safe and prompt Health & Safety Management in establishing their own health & safety management systems of our suppliers. Shell.06 At GS Caltex. New Employee Training 36 / 57 99 / 52 126 / 109 ginning of every year. To further decrease fulfilling life of our employees.410 We apply the ‘EHS Performance Management Standards’ firefighters from the National Emergency Management Agency that match the level of advanced countries in controlling inci. In particular. actively. Our IIF(Incident & Injury Free) initiative began in 2006. Moreover. The best practices ues to discuss programs to improve the health and safety of all GS Health & Safety Training for Suppliers are then shared across the board and each establishment incor- Caltex employees.326 0. at Suppliers covering IIF safety training and the publication and dissemination worker at the plant was committed to safety & produc- As part of our shared growth program. Therefore.

we help our employees transform into ‘business leaders’ by offering wide-ranging programs and systems-starting any- Outward Education Contributions the grounds of: education. pany in order to make our management family-friendly as well as benefit systems that cover: recruitment. Jiri. wealth/status. Medical Service Support for medical expenses Male 88. and customized one- of Human Rights and the UN’s Human Rights Norms on-one coaching/mentoring courses.” to embody ticipate in presentations. All employees are free to take maternity/childcare ties. skin color. annual interest rate of 1% Special holiday and financial support for condolences and congratulations tation program.7 Development Programs for High-Performance Talented (if the amount is above KRW 50. we have stipulated and equality and the virtue of the co-existence of all human promotion of human talent is the most human rights policies to pay closer attention to beings based on human dignity important key to corporate growth. Training Hours per Employee gifted students are all part of our education donations. leaves and this complies with the Korean governmental policy to in training hours on the grounds of employment type or gender.000) revised policies include human rights examinations of Under-age children (up to KRW 3 million) Individuals Collective accident insurance benefits major suppliers and contract enterprises. age. We employ female counselors to speak with ternational universities and offer them internship opportunities Livelihood Support Service courses.1 88. 2009 2010 2011 highly stringent criteria. birthplace. systemic training and mentoring support. annual interest Haman Resource Development rate of 1% Center: Residential complex supports and respects internationally acclaimed human Company housing: Yeosu Complex Summer Resorts: Mt. Tuition support for children: Fully supported for junior high/high school/univer- tigated by auditors. these future leaders par- prohibited.4 billion in 2011. flexibility. Mt. employees in taking MBA courses at top-notch national and in- in our online CCP (Corporate Compliance Program) agement initiative. gender. We abide by the Labor Standard Act.3 Employees and their spouses: Fully supported Human Rights Policy Training for Suppliers ▶ The Female 11. Human Rights Policy 2009 85 Housing Support Service Leisure Support Service Revision of regulations in accordance with the UN Housing purchase/Rent financing: Condominium benefits: 180 accounts Universal Declaration of Human Rights ▶ GS Caltex 2010 85 up to KRW 50 million. We also support category. evolve into more competent leaders. Seorak. labor. Our 6 Sigma course for teachers working at elementary. of human rights. individuals with career development. ior high and high schools and Junior R&D Camp for scientifically- increase childbirth rates. mutual cooperation and the generation of strengths and weaknesses. religion or Guarantee of Employee Rights We invite the parents and children of our employees to the com- race. social background. The GSC Way serves as a guiding prin. religion. who is capable of such key actions People-oriented Philosophy transactions that may cause or instigate violations of universal which result in objective and in-depth analyses of their individual We respect the human rights of each and every employee at GS human rights (including war crimes) are prohibited. Major relevant training contents were included sexual harassment in the workplace as part of our ethics man. under which they go through a schedule of dif- . challenge and excellence. We at GS Caltex established our own “GSC Way. Leadership Development Program: situations both at the sites of our suppliers as well • Discrimination on the grounds of race. In particular. We assist these highly qualified Health promotion programs rights. or differences in political views is strictly Talent Development Model(GSC Way) capabilities. Additionally. we offer leadership training and discrimination during the 2011 reporting period and there are no and a total of KRW 21. These revised policies stipulate human their work capacity as well as providing separate courses for rights regulations with an extended scope to cover our Gender Ratio of Employees (unit: %) qualified high-performers who are specially selected based on a suppliers as well as our own employees. in training and education (to develop talented employees). On top of this. Therefore we at GS Caltex revised 6 internal policies Talent Development Framework: covering: personnel. Each employee is treated equally within our personnel and where from recruitment to talent development. Our Leadership Development Center (LDC) was designed as a as at GS Caltex. The informants are notified of their results business operations. we established the job ro. Sustainable Operation Great Work Place 2011 Sustainability Report 30 / 31 26 Mutually-Beneficial Labor-Management Culture 28 Health & Safety 30 Protection of Human Rights Protection of Human Rights Development of Human Resources 31 Development of Human Resources Major Revisions on We support UNGC’s 10 principles in the areas Our human resource development program ferent assignments to experience new business fields and grow Human Rights Policy company-wide high. With this or child labor and strictly forbids any type of discrimination on model. the environment and is based on the CEO’s philosophy that the • Respect and support for the universal human rights of freedom anti-corruption. Marriage financing: up to KRW 10 million.5 11. gender. which all employees take as an annual victims and make sure that reported issues are thoroughly inves. Training opportunities are in-house childcare facility with a capacity of 50 children in March mentoring to chemical engineering majors at top-notch universi- area in our business that may lead to serious violations of free. candidate courses.5 88. tion. Under the LDC programs. equally provided to our employees and there is no discrimination of 2012. education and retirement. they are provided with Caltex in accordance with our people-oriented philosophy and outcomes based on the organization’s values of trust. tive treatment towards female employees and to offer proactive employee-friendly and these programs serve to boost employee salary. we established an loyalty and pride. promotion. Wide-ranging for Transnational Corporations and Other Business specific job training to assist individual employees in enhancing Benefits Services In-house Childcare Facility Enterprises. which Stipulation of support our endeavors to fulfill our social responsibility. rights protection principles and makes proactive efforts 2011 102 Dormitory: Yeosu Complex and Baek-am Training Center Refresh vacation available not to be complicit when it comes to human rights abuse. language. Our investments In-house Childcare Facility ▶ To strictly prohibit discrimina. regarding human rights and labor are abided by. nationality. In order to help high-performance talented sity students (regardless of the number of children) by phone or e-mail. • Forced or child labor is forbidden and all contracts and the ideal GS Caltex employee. at global companies to help them gain experience applicable to Employee Assistance Program (EAP) mandatory training program. which prohibits forced ciple in our endeavors to nurture talented employees. purchasing and ethics regulations in Our talent development framework is structured as follows: 2011. There was no single case of amounted to an average of 102 hours per employee per annum support for those employees raising children. which helps them to • Domestic regulations and international norms and agreements with the principle of human dignity stipulated in the Constitu. group discussions and role-playing. jun- dom in association with collective bargaining. placement. as proactive action. physical place for potential leaders to further cultivate their leadership disability.level perspectives. in accordance with the UN Universal Declaration level-specific courses. as well as up to KRW 200 million (if the fatality is caused by an industrial accident) Grievance Resolutions We nurture tomorrow’s leaders with our development programs employee training policies regarding job-related human Comprehensive medical check-ups and in-house clinic (Yeosu) We operate a separate grievance resolution division to deal with for high-performance talents.9 11.

Middle East. This is why providing pe. Europe. and Thailand will support our ★★★ development of alternative energy sources. We Priority also strive to fulfill our environmental and safety Growing instability in global politics 1 responsibilities in manufacturing products and providing services. also essential goods that we cannot do away To this end. 2011 Sustainability Report 32 / 33 Reliable Energy Extension of Product and Service Responsibility Stakeholder Issues Identified through the We are diversifying the sources of crude oil Materiality Test supply to ensure sustainable energy supply. efforts to secure energy leadership.000 tons) also needs to build preparedness for the com. Vietnam. ment plans by predicting related risks and import Director troleum products at stable prices. Southeast Asia. ●Completed On-going We at GS Caltex pursue the production of reliable OUR OUR CHALLENGE RESPONSE energy. creasing its in-house development of oil fields. quality Responsibility development environmental quality grades of 4~5 Extension of Product and Service Responsibility → 33 Reliable energy ◆ Sustainable Products ◆ Sustainable Provision of Energy Extension of Product and Service Responsibility Establishment of Future Energy Leadership → 37 Stakeholder’s Voice GS Caltex’s Commitment NGO Petroleum products serve as the primary ener. is so critical. we create stable crude oil procure- Lee with in our daily life. as part of Environmental LNG Imports Anode Materials thereby contributing to economic stability. We are committed to securing future energy CSR 2011 2011 2012 leadership by strengthening STRATEGY CSR Issues Implementation Tasks Major Achievements Progress Implementation Task our responsibility for products and services and building Extension of Environmental hazards The world’s best-in-class quality was preparedness for resource Enhancement of competitive edge Product and should be reduced through recognized by the Ministry of Envi- regarding a product’s environmental Service responsible product ronment. participation in the development of oil fields in In- 36 2. Australia. Central and Latin America and Africa. ★★ . Our Product Quality Production Capacity Grade (unit: 10. an improvement from the depletion.000 (unit: ton) ing depletion of natural resources through the donesia. as many as 80 different kinds of crude oil from 30 Comsumers Korea The company needs to reduce its dependency different countries around the world covering: the on the Middle East as a source of supply by in. They are role is to ensure the sustainable supply of energy. Eun-Young. It our strategy to diversify crude oil suppliers. We at GS Caltex believe that our most important gy source for all economic activities.

. which is a related incidents and quality defects to zero. At GS Caltex. Our mobile lab vehicles are projects. system. and in contributing to the final retail distributors and customers is thoroughly and strictly 80 different kinds of crude oils from 30 nations around the world environmental standards. polycyclic aromatics con. we took tors in managing the product quality at GS Caltex service stations. Product Safety tons (6 cargos) in 2011. The established over- nually. GS Energy. the overseas oil field development came under 2009 2010 2011 High-Quality Gasoline 1st Half 2nd Half 1st Half 2nd Half 1st Half 2nd Half Future Energy Leadership Secured through the Supply of the leadership of GS Caltex. we over 100. maximizes the ★★★★★ World’s Highest Level ★★★★ Near the World’s Highest Level tal pollution by directly importing LNG to use as fuel and as raw increased synergy for sustainable growth that befits the values engine power output and enhances the fuel efficiency by elimi. immediately informs them of the results. a holding company specialized in equipped with high-end precision analysis devices that are actually used in the laboratory environment. which services Gwangju City to build the Consumers find it hard to directly check the quality of petroleum accompanied by the 2% mixed production of biodiesel. It petrochemical businesses. The upcoming years. which firm foundation for our city gas business. our participation in the development of oil fields and friendliness of petroleum products sold in the Korean metropolitan The E&P business at GS Caltex is strong in that it is able to gener- gasoline. Group companies. regarding the 3 areas in the a dramatic improvement in keeping engines clean. nating deposits that form within the engine. . cheon City in the North Gyeongsang Province. UAE and the Nemaha oil field project in the U. It also satisfies the world’s most stringent undertaken by the Korean government. GS Caltex currently owns 8 exploratory projects. We strive to establish safe manufacturing processes and Central and Latin America and Africa. specifically set up a subsidiary office in Singapore and branch of- the engine and enhances power and acceleration. We import 250 million barrels of crude oil from major oil pro- Rigorous Quality Management System ducers annually and continue to build strategic networks by Premium Gasoline for Luxury Cars. in a bid to cope with resource depletion. managed by the ISO 9001 international quality management including the Middle East. After the initial imports of LNG of the GSC Way. Altogether. The entire process of pro. erations and for the new LNG power plant consumptions after At GS Caltex. projects. storage. Included in our efforts products due to the inherent features of the product and there are further boosts our efforts to reduce CO2 emissions. Seorabeol City Gas Service Station Quality Management also delivers cetane number. our Mobile Lab team visits the vices. This is why we are adopting even more stringent standards Kerosene and Kangnam City Gas Co. We will continue to commit in managing product quality at our service stations. Upstream Business Development gram in July of 2007 for the first time in the industry to im. making significant for in-house consumption in 2009. of oil fields and green growth business as well as petroleum and the needs of clean diesel vehicles.. such as GS Holdings. so our kerosene Petroleum Mobile Lab Stable Supply of Crude Oil We launched the Petroleum Mobile Lab’ service pro. through its strategic partnership with GS processed by highly advanced desulfurization units. At GS Caltex. Diesel ★★★★★ ★★★★★ ★★★★★ ★★★★★ ★★★★★ ★★★★★ We at GS Caltex are taking the lead in preventing environmen. an initiative being duction. manufactured by GS Caltex are rated grade 4~5 by the ministry an. area annually and announces the results. we imported some 360. we continue to ULSD (Ultra Low Sulfur Diesel) Expanded Penetration of City Gas product quality management systems as well as reduce process. the total number efficiency is central to our low carbon energy policy. ourselves to the establishment of future energy leadership and suspected quality defects. Australia. Our ULSD product is over Haeyang City Gas. Reliable Energy Establishment of Future Energy Leadership 2011 Sustainability Report 34 / 35 34 Sustainable Products 35 Sustainable Provision of Energy Sustainable Products Sustainable Supply of Energy The development of high-quality. In 2012. while reducing role in the advancement of the gas industry. boasts Gasoline ★★★★★ ★★★★★ ★★★★ ★★★★★ ★★★★ ★★★★★ Clean Energy evant decision-making processes. eco-friendly products may be stored indoors without disrupting pleasant in. through our subsidiaries of units produce ULSD with sulfur contents less than 10 ppm. The construction of LNG terminals is under progress to through the competitive quality of our products which are un. as well as sulfur contents that satisfy the high. expand new business opportunities that span the development Our ultra-low sulfur diesel is an eco-friendly product that meets We at GS Caltex ensure the stable supply of city gas. when com. Europe.5 million tons per annum for in-house op. Our Strength in the E&P Business quality in the global and domestic markets. we ensure that our products are safe for use. In the case of Our kerosene products are mainly used for indoor heating de. we have instituted comprehensive the energy business.. Southeast Asia.000 contributions to the reduction of CO2 emissions. The petroleum products ate synergistic effects. oline. Following the physical spin-off of GS High-Quality Eco-Friendly Products Supply of Clean Energy Energy in 2012. In 2001. To reduce their sulfur content and boast the highest Results of the Environmental Quality Evaluations are meeting future energy needs through the The Ministry of Environment measures and evaluates the eco. Source: Ministry of Environment materials at our Yeosu Complex. to expand the scope of our service areas are equity investments recent growing concerns among consumers about counterfeit gas- in and strategic partnerships with Kyung Nam Energy Co. shipment. the supply of cleaner energy to households and businesses in the station. our plan is to continue with Stable Supply of Crude Oil imports of more than 1. lubricity. GS Holdings has an additional 7 such products on the spot. kerosene and diesel products are especially in the diversification of crude oil suppliers. and will lead to pared to our existing gasoline products. was newly launched in order to advance products that deliver cleaner energy and high-energy door environments. which recognizes their world-class product quality. energy companies. plans to ensure the stable supply of crude oil into the UAE and the U. Ltd. we import as many as vibration and noise. Ltd. tightening solidarity with oil-producing nations and overseas As a high-performance gasoline with a research octane number 2015. including NE mediately identify counterfeit and adulterated petroleum Natuna Block in Indonesia. odor commonly found in oil products is reduced. Our advanced desulfurization safe and convenient energy source. Haeyang City Gas and Seorabeol City Gas. In a bid to ensure stability in oil supply. engages in on-site analysis and bustion and accordingly do not cause eye or nose irritations. Presently. This will further speed up the rel- With high-performance engine cleaning additives. seas networks of GS Global can be utilized to further strengthen our overseas E&P business. We of E&P projects we have equity ownership in stands at 17. and transport of our products to the fices in London and the UAE. These products do not produce harmful gases during com.S. was established in 2000 to service Gyeongju City and Young- We apply more rigorous standards than ordinary quality inspec- tent and density. stable energy supply for the nation. est standards both nationally and overseas. prevents abnormal ignition in order to protect this end and these endeavors will assist us in playing an active matched by any other industry peers.S. Moreover. consults with customers.

will be deplet. Reliable Energy 2011 Sustainability Report 36 / 37 Establishment of Future Energy Leadership Stakeholder Issues Identified through the Natural resources are finite and will someday Materiality Test be completely depleted. In order to build preparedness for the limitations of finite natural resources Sep. The waste treatment business through ultimate goal of GS Caltex should be to become a total GS Energy and other subsidiaries will energy provider that is beloved by consumers through assist us in responding to the changing the development of cost-saving and easily accessible paradigm in the energy sector. As an interim step initiatives through our future energy Senior Manager GS Holdings before the development of such alternative sources. crude oil. 2006 May. Jul. an off-shore exploratory Sung-Wook. At Priority GS Caltex. by GS Energy from Longfellow Energy. the demand for alternative energy sources can increase. energy. from Mitra Energy. 2012 Energy Leadership 15% take-over of the exploration rights for Cambodian 6% take-over of the UAE 3 areas (2 on-shore and offshore Block A from Chevron. Making full-fledged 1 off-shore) by GS Energy from ADNOC. oil company.) 11 commercialization of new and renewable energy sources in order to respond to the sustainability trend. We at GS Caltex are fully aware of the Company ed sooner or later. In 30% take-over of NE Natuna. specifically petroleum. our response task was to secure Lee develop alternative energy sources. Therefore. company and subsidiary of Mitsui Group. Holding Natural resources. 2012 30% take-over of the onshore L10/43 and L11/43 10% take-over of the Nemaha project in the Stakeholder’s Voice GS Caltex’s Commitment equity in Thailand from MOECO. a state-owned entry into the E&P business. an exploration U. . project in Indonesia. Japan. it business. the company needs to act more proactively to 2011. This will require proactive initiatives to develop GS alternative energy and new & renewable energy for sus- tainable growth. ●Completed On-going OUR OUR CHALLENGE RESPONSE 2012 CSR 2011 2011 CSR Issues Progress Implementation STRATEGY Implementation Tasks Major Achievements Task Waste treatment business was Establishment Endeavors are required to  cquisition of initiatives A expanded through the of Future Energy secure future energy through future energy business establishment of GS Energy and Leadership leadership existing subsidiaries GS Caltex GS Holdings GS Energy Reliable energy ◆New and Renewable Energy ◆Waste Recycling Establishment of Future 2003 Mar. The expansion of the new also needs to continue developing upgrader facilities to & renewable energy business and the fulfill its responsibility as a stable energy supplier.S. 2011 changing market conditions caused by the depletion of and are coping with this challenge. we build plans for the stable supply Increasing sources of alternative energy 4 of crude oil and focus on the development and Depletion of natural resources (fossil fuel and etc.

Additionally. GS Platech. the extraction of high-purity EDLC(Electric Double Layer Capacitor) which are eco-friendly increases their potential as battery materials for electric vehicles. backed by the governmental support.Film Battery next-generation lithium-ion battery business in the upcoming years. . It successfully completed the development 2011. GS Platech’s commercial waste treatment facility in Cheongsong. when we began developing fuel cells as an energy increase their competitive edge in this field. from recycled plastics. that requires thermal treatments of 1000℃. which then reacts with oxygen in projects continuously. DAEJUNG EM established its own mass production system of the high-capacity fuel cell system with a capacity above 100kW. previously depended heavily on imports. This demonstrates Carbon Materials for EDLC that they are higher in output and faster in charge. only 30% of them are available with Fuel Cell domestic technology. conventional graphite materials. electricity. of commercial operation in July. The plant has been GHG emissions and causes environmental pollution. the byproduct of slag. Japan’s largest refiner. GS Caltex is fully committed to developing and 5kW fuel cell products for buildings through our subsidiary GS next-generation cathode materials to improve its competitive edge FuelCell. GS Caltex’s technology research institute batteries (precursors and cathode materials). one of our subsidiaries. possesses the Plasma enable us to build a rigorous preparedness to cathode materials per year in Iksan. The capability too. The domestic recycled plastics market is in its This achievement was highly recognized in the international infancy but is expected to grow continuously with the increasing society as well as in Korea. led to the successful localization of anode production. it in DAEJUNG Energy Materials. with a daily capacity of 10 tons a trend. a joint venture with JX-NOE. such batteries for the first time in Asia.000 incinerated or buried in most cases but the incineration generates from waste treatment by less than 1/10 compared to the commenced full-scale mass productions of EDLC carbon materials tons).5% in 2010 to 29% in component technology. and hydrogen. legislated in accordance with tightening global environmental tons is under way as scheduled and slated for the commencement Power Carbon Technology regulations since 2008. This will further boost the energy produced from waste in the form of steam. thus allowing us to energy storage devices. Thus. we have developed 1kW fuel cell products for households of the new electrical age. Samil Polymer. We pursue the sustainable use of resources Gasification & Vitrification technology that enables the eco- meet future energy needs and take the lead in with the help of our subsidiaries Samil Polymer friendly and efficient treatment of waste and the highly-effective Anode ▶ Our R&D efforts to develop anode materials (another transition of waste into energy. Against the backdrop company. power generation. Thin. Moreover.000 tons of a recycling economy is a critical social challenge. to cope with the coming age of electric vehicles. which is world’s largest. the plant and our anode plant (with an annual production capacity of 2.26 MT new and renewable energy.26 tons of CO2 emissions. for the plant construction in May of 2009 at Gumi City in North Technology’. which environmental pollutants and obtaining the most out of the plastics is equal to reducing 1. and GS Platech by enhancing the recycling and core component of rechargeable batteries). one of our subsidiaries. is quite different from conventional waste-to- Together with our affiliate. to produce carbon materials for than artificial graphite and safer than natural graphite. Fundamentally suppressing commercial marketing began accordingly. Japan’s largest refinery. began in 2005 and technology is at the core of GS Platech’s technology portfolio and consumption efficiency of finite resources. GS Nanotech. which Recycling of Waste Plastics generation. rate of over 20%. Cathode ▶ While cathode materials are a core component of rechargeable batteries. enabled us to localize the production of anode materials. in 2011. compared to The synthetic gas produced as a byproduct can be recovered We set up ‘Power Carbon Technology’. We are also working to tap The recycled plastics market was initiated in early 2000 in Europe treated and in commercializing the fuel cell power generation for into the global market with the opening of authorized retail stores and amounts to KRW 500 billion today with an annual growth the first time in the world. We held the ground-breaking ceremony Our anode business is being conducted through ‘Power Carbon composite resins suitable for automobiles and home appliances meet wide-ranging needs of our customers. Completed in March 2010. traditional incineration. a with an annual capacity of 300 tons. This will manufacturing 2. produces eco-friendly hydrogen and the replacement of fossil fuel. The world-class gasification the paradigm shift of the future energy industry. it is critical that Korean companies Since 1989. Moreover. Reliable Energy Establishment of Future Energy Leadership 2011 Sustainability Report 38 / 39 38 New and Renewable Energy 39 Waste Recycling New & Renewable Energy Waste Recycling GS Caltex is fully dedicated to the development with the completion of the production facility. which is capable of We at GS Caltex recognize that the transition into Waste to Energy(Plasma Gasification) of new & renewable energy sources. We strengthened our strategic investments the air to produce electricity and heat simultaneously. in Japan. which became available with this plant. Plastic materials are not recycled and instead This process reduces pollutants such as dioxin that are generated Gyeongsang Province. a joint venture with JX. they are more affordable in various types of energy to deliver such applications as steam NOE. can be reused for construction of mass production. we work in developing Waste Plastic CO2 conversion technologies and presents a future way of generating thin-film battery products that are touted as the next-generation rechargeable battery and in commencing the mass production of 1 MT 1. GS Caltex is positioned to be Recycle Reduction North Gyeongsang Province. has long time to disintegrate organically. Fuel cell is a high-efficiency eco-friendly energy device that and plans to further increase the number of researchers to such converts city gas into hydrogen.setter in the thin-film battery and electronics market with succeeded in extracting high-purity hydrogen out of the daily waste its best-in-class technological capability. which has the in-house operational is also a next-generation energy source with a capability to reduce capacity to produce all the cathode materials for rechargeable CO2 emissions by 45%. North Jeolla Province. The anode is capable of treating all types of flammable waste regardless of materials manufactured by GS Caltex are the soft carbon type their composition. 2012.000 tons of precursors per year and 1. secondary battery materials Recycling of Electrical/Electronics Products and Automobiles steam using RPF(Refused Plastic Fuel) with a daily capacity of 110 began in 2009. The burial. and in full commercial operation since March of 2012. Battery Materials usage of recycled components due to the Act on the Resources The construction of our gasification facility in Yeoncheon to supply Our research on the next-generation. was completed in December of 2011. The recycling of 1 ton of waste materials or soil remediation. and our equity is developing high-capacity fuel cells for buildings and main system 500kW Plasma Facility Plasma Gasification Facility in Yeoncheon World’s First Fuel Cell Generation Powered by Waste Resources ownership in the company rose from 14. has negative impacts on the environment as plastics take a harmless glass crystalline material.

Ltd. Increasing demand for distribution structure improvement 19 Promotion  of social responsibility within the company’s influence sphere 25 ●Completed On-going OUR OUR CHALLENGE RESPONSE 2012 CSR 2011 2011 CSR Issues Progress Implementation STRATEGY Implementation Tasks Major Achievements Task Fair operating practice Proactive endeavors are Establishment and procedures were created and training required to prevent violations of fair implementation of fair was strengthened for business units operating regulations operating safeguards Tightening of social with high fair operation risks responsibility-related GS Caltex continues to requirements Fair Operation in signing endeavor to enhance Stronger endeavors should purchasing/service CSR Committee decision to Transaction practices among Tier 1 bidding contracts be made to facilitate social stakeholder engagement. offered Park tex. 2011) was given to suppliers chain practices and promote community development via Accountable ◆ Ethics Management / Fair Trade engagement ◆ Win-Win Management Accountable Engagement. our top priority in business conduct is our compliance with the principles Priority of business ethics. ganizations with higher fair trade risks. GS Caltex shoulders a particularly social responsibility requirements in awarding heavy social responsibility. responsibilities in other initiatives at business suppliers Ethics management training organizations in the value establish fair operating (Feb. neat and gentle people’. Every.337 (unit: No. We execute substantial Growing demand for fair trade 2 initiatives in ensuring our business is more sustainable by taking the lead in establishing Growing demand for transparency 7 fair operating practices and expanding their Fair competition 17 scope to suppliers and subsidiaries. of employees) tributions and consumer issues. we at GS Caltex created fair transaction large companies is a controversial issue in procedures. 2011 Sustainability Report 40 / 41 Accountable Engagement Fair Operation Stakeholder Issues Identified through the Materiality Test At GS Caltex. labor relations. Fair Operation Fair Operation → 41 Stakeholder’s Voice GS Caltex’s Commitment Community Involvement and Development → 45 Supplier The concentration of economic power in In 2011. As a large fulfill their social responsibilities by tightening company. ther expand in 2012 to encourage suppliers to 3. Such initiatives will fur- (unit: No.ㄷ ruption-free.. social con. cor.371 terms of wages. purchasing/service bidding contracts. strengthened training for those or- Byeong-Jae Korean society. ethics management training for suppliers to President E-IL Industry Co. When we think of GS Cal. what comes to our mind is ‘clean. . strengthen support for CSR and Tier 2 suppliers were improved. of employees) (unit: KRW thousand million) 566 6. in establishing voluntary ethics management Ethics Training for in Social Employees Social Contributions Volunteering Groups panies follow in the footsteps of GS Caltex in compliance programs. improve transaction practices between Tier thing the company does is closely watched 1 and Tier 2 suppliers and assisted suppliers Participants as it is a leading oil company and many com.

Second. 2011 Intensive courses for procurement units address what purchasing market environment.337 of 2009. In 2011. 2011 Online 2. we are addressing E-mail ethics@gscaltex. Management Information on Systems & Procedures Team ” Grievance Resolution Division(reports Phone 02-2005-6259 employee obligations in abiding with fair trade laws. Health. First. If received unavoidably. and EHS(environment.com) Reporting line Head of Unit allows us to introduce ethics management initiatives at GS Cal- CCO UCO2 appointed tex externally and it serves as a Auditor Reporting Reward / Punishment (Corporate Compliance communication and reporting Committee Office) channel for stakeholders such UCO as customers and suppliers. GS Caltex consider fair trade as the top ethical decision-making and behaviors based on legality. Program Vice President. EHS & Q1. certainty of fluctuating oil prices and other instabilities in the For us to achieve sustainable profit growth.com monitoring since the creation of the system. This aims to minimize the risks of legal violations set procedures so that ethics management may continue to Fax 02-556-7630 For More associated with new corporate systems and to further clarify take its firm root across our organization.gscaltex.com changes in internal/external environments. UCOs. Our Corporate Compliance Committee meets employees should bear in mind including what constitutes unfair priority in our business conduct and strive to prevent all types ness and transparency should be built into our daily operations twice a year to share company-wide issues on ethics management subcontract transactions. fair trade. which serves as the benchmark of CCP. helping our employees raise ethical One of the key factors in determining the success of ethics man. Offline 1. unjustified Fair Trade subsidiaries. ” lations. basic ethics of employees. these courses focus on the 7 areas of: understanding websites in an integrated manner in an integrated manner. violations Our ethics management website (http://ethics. of trained employees) Compliance with the (Fair Trade) Law & Procedures Team) to ensure the substantial implementation of as of 2011 We have wide-ranging programs to comply with the fair trade law Direct or indirect requests for gifts or bribes preventive measures.262 of Korea. Accountable Engagement Fair Operation 2011 Sustainability Report 42 / 43 42 Ethics Management / Fair Trade 44 Win-Win Management Ethics Management/Fair Trade Our ethics management strives to seek win-win Code of Ethics Corporate Compliance Program Training website and it is co-managed with our shared growth and CCM partnerships in our business so that we may grow Fully aware of the importance of ethics management. we issue the monthly ethics management regarding fair trade. or the requests of unjustifiable fa. intensive courses for marketing units company. established due to ers and suppliers. we have an ethics management bulletin board on health and safety) throughout the entire business the corporate intranet to share that the most recent cases. trends action rules. Safety & Quality employees. and Q&As regarding ethics management and fair trade are shared vant organizational/reporting framework and practical guidelines for fair trade that include compliance requirements for employees To enhance understanding and consensus among employees. agement is a CEO’s commitment towards it. against regulation. Our ethics management action plans and “ Sep. Total 3. * CD training for technical workers is not included. a substantial manner at the workplace(20 management-level “ Jan. of unfair practices including price fixing. prevention of sexual for senior management level decision-making and the fulfillment harassment. constantly. 2 Customer Centered Management activity spectrum. we specifically revised the code of our online CCP courses were developed into 3 different courses webzine “Ethics Virus” which is distributed across the entire ethics and practical guidelines for detailed action rules to clearly from 2010 : general courses. the code of ethics back in 1994. This system makes it mandatory for relevant departments they run against our initiative of shared growth with custom. information security. as of 2011).gscaltex. unwarranted giveaways and To respond to growing social needs for transparency and un- that voluntary compliance actions are taken and supervised in other issues that sales representatives are expected to know.075 advance review system for fair trade law compliance’ in December vors or engaging in unfair transactions are not tolerated as dit Committee under the Board of Directors. the CFO was appointed as the CCO(Corporate Compliance advanced courses for marketing units that include common management and fair trade across all GS Caltex employees and Officer) in 2001 and the UCO(Unit Compliance Officer)s were wrongful actions and general unfair transactions.com Compliance Corporate Compliance Officer- Tae-Jin Um. This webzine allows us to discuss the latest news on Ethics Management stipulate our responsibility for the protection of human rights. and develop conjointly not only with our customers. the fair trade law. to review in advance whether new systems. which our We also take extensive actions in building consensus regarding shareholders and employees but also with our of employee job duties. fair. The fair trade program is a case in point-offering were shared twice in 2011 to emphasize the importance of ethics CEO. we created Primarily. Our CEO messages Following the corporate compliance guidelines announced by our course content. The code of ethics was followed by the employees should understand and practice in their job duties. Internet http://ethics. CFO Preventing Violations of the (Fair Trade) Law CEO & Chairman We take precautionary actions in preventing any possible violations 자율준수 조직 BOD / of the fair trade law: including voluntary compliance checks which Communication with Employees on Audit Committee are carried out frequently in the particular units that bear high risks CCO1 appointed Ethics Management Disciplinary actions taken against of violation. and each GS Caltex employee should be accountable for both & fair trade and to discuss ways to prevent business ethics vio- the processes and outcomes. Such segmented ethics management and fair trade while encouraging lively debates CEO’s Commitment towards Ethics Management courses enable us to provide job-specific and division-specific on ethics dilemmas and. nation/society. ethical issues through continued communication with our suppliers. We instituted the Corporate Compliance Office(Systems Employee CCP Training (unit: No. With continued Hotline of sexual harassment) 02-2005-6012 the Corporate E-mail clean@gscaltex. performance are transparently reported semi-annually via the Au. Voluntary Compliance Organizational Framework programs that are differentiated in terms of study cases and awareness in regards to their daily work life. bear any risk of violating they should be reported and returned in accordance with the Ethics Phone 02-2005-6011 Corporate Compliance Office. Senior compliance issues. establishment and operation of practical guidelines for detailed 1 Environment. also appointed in each division and subsidiary in a bid to ensure displays and advertisements. With the growing importance of fair trade. and intensive courses for procurement units. we set up ‘the to customers or suppliers. corporate compliance work rules that stipulate rele. The Corporate Compliance Training and Dissemination existing Ethics Management Committee 1 Corporate Compliance Officer Each Units (Division / Hotline website was reorgan- 2 Unit Compliance Officer Subsidiary) ized into the ethics management . and CCM2.

We will continue to listen and support these suppliers based on trust. Intensive Support for Education and Training Ethics Management Hotline) the local economy by generating full-time jobs dependency of the local community. Our endeavor to seek shared growth with suppliers ●Completed On-going contract-signing guidelines to establish voluntary fair subcontract in an air of mutual trust and cooperative fair trade-based relation- transaction systems on the part of big companies. customers and in an other’s shoes'. The beneficiaries Han • Operation of the GS Caltex Supplier Support Center-technology • Introducing high-performing suppliers and their products on the Chairman through the massive investments in expanding of our support in 2011 included the support project for training at the Yeosu Complex.5 billion as of 2011) in an effort to mitigate the cost burden order to promote the development and welfare Contributions to education and the cultural development caused by the surging prices of raw materials and exchange rate of the local community. equipment for new projects . We plan to develop technology and supporting their product development efforts 6. guidelines to ships was widely appreciated. training on marine transportation GS Caltex corporate website Ye-ul Maru Project plant facilities. Given that low-price bidding female job seekers. OUR OUR select and manage suppliers and guidelines to create and operate CHALLENGE RESPONSE the internal committee to review subcontract transactions. Accountable Engagement Fair Operation 2011 Sustainability Report 44 / 45 42 Ethics Management / Fair Trade Community Involvement and Development 44 Win-Win Management Win-Win Management At GS Caltex. we will commit ourselves to We proactively adjusted delivery unit prices for our suppliers (some Endeavors to support investments in the local community 29 relevant organizations as well as employees in mutually-beneficial management with our suppliers KRW 5. Improvement in Making Payments system • Making 100% full cash payments • Exempting outstanding suppliers from performance bond Local As a company located in the Honam area. costs engagement ◆ Enhancement of Community Independence • Arranging KRW 60 billion network loans to support supplier loans Community Involvement and Development • Supporting loans for high-performing suppliers with long-term 5. of local communities 30 to local community stakeholders and put visible opment by supporting and awarding contracts to SMEs suppliers Growing wealth gap 20 efforts into improving local communities. Support for Technician School in Yeosu City We made 100% full cash payments of KRW 420. Support for Tier 2 Suppliers specifically needs to nurture suppliers that transfer programs that may be utilized to help local • Providing opportunities for laboratory tests of international • Signing the agreement among Tier 1 and Tier 2 suppliers certification agencies to improve suppliers’ technology capacity • Building the price adjustment information provision system possess competitive and reliable technological communities grow in order to strengthen our support • Awarding orders to small and medium size suppliers of capabilities in tapping the global market. the Involvement government partnership project under the Innovation required and contributions and support support activities to improve the transfer programs for local and Center for Safety Diagnosis Technology of Heavy & should be geared towards reduced independence of local communities communities Making Cash Payments to Suppliers system to provide information on adjusted delivery unit prices to Development dependency on them Chemical Facilities.5 can be enhanced only through mutually-beneficial billion worth of low-interest loans by the end of 2011. CSR Issues Progress Implementation STRATEGY Implementation Tasks Major Achievements Task nology development and education/training and the installation of clusion of the shared growth agreement among 139 Tier 1 and Existing programs including job training for women a separate department dedicated to shared growth initiatives. the At GS Caltex. Moreover. Support was given to the industry-academia- technology for local communities is Strengthened contributions and Development of technology improved payment conditions for Tier 2 suppliers. We are Stronger Support for Suppliers 2012 CSR 2011 2011 also expanding other types of management support covering tech. We also assisted our suppliers with technology devel. This allowed our Tier 1 suppliers to incorporate Community The development and utilization of continued. GS Caltex is geared towards the development and utilization of • Making 20% pre-payments of estimated monthly contract sums • Operating the Joint Growth Office making significant economic contributions to technology for the local community and the reduced • Operating the Unfair Transaction Reporting Center (within the Chang-Jin 3. for the local community. It School of Yeosu City. fluctuations. With our CEO’s Materiality Test initiatives with wide-ranging stakeholders deep-rooted management philosophy of ‘put yourself Adjustment of Delivery Unit Price Priority including local community people. Included in our endeavors to expand shared growth was the con. GS Caltex needs to promote Chonnam National University. Financial Support • Assisting suppliers in replacing imported materials with domestic • Creating the KRW 100 billion win-win partnership fund with the counterparts financial institution to reduce supplier’s financial burden from • Supporting high-performing suppliers with patent application Accountable ◆ Social Contribution high interest rates on bank loans. structure and CSR should be considered in assessment of CSR performance implementation tasks were identified system on social responsibility making employee performance evaluations management Strengthened also created a KRW 100 billion win-win partnership fund together Stakeholder Establishment and expansion of Designation of R&R to ensure with financial institutions to support our suppliers in receiving Identification Systematized process should be set up stakeholder engagement and Stakeholder engagement process was completed to integrated management of and to identify major stakeholder issues identify issues to be reported Engagement process regarding CSR stakeholder engagement Support for GS Caltex Suppliers PR activities are insufficient to Strengthened communication on Integrated management of stakeholder engagement Creation of integrated promote stakeholder engagement social responsibility initiatives was explored management programs 1. We from increased delivery unit prices from GS Caltex. Stakeholder Issues Identified through the At GS Caltex. the Innovation Center for Safety safety and energy efficiency • Consultation meetings with suppliers Committee • Providing ethics management education and assisting in • Assisting top-performing suppliers in expanding domestic and and the frequent change of suppliers do occur Diagnosis Technology of Heavy & Chemical Facility of building a voluntary ethics compliance program overseas markets in the market. we take social contribution management with our suppliers. Consequently. Management and Other Types of Support business relationships • Six sigma education and management consulting • Investment in the Win-Win Guarantee Fund in the new and • Serving as a purchasing agent of raw and subsidiary materials for renewable energy sector OEM partners • Aiding in the establishment of a safety and health management Stakeholder’s Voice GS Caltex’s Commitment 2. Introduction and Operation of the Three Fair Trade in replacing imported materials with domestic counterparts and Participation in local community development 21 Guidelines in placing major material orders to these companies undergoing We are in full compliance with the following three key guidelines: new projects. are fully aware of any price adjustments if Tier 1 suppliers benefit be integrated with the company-wide vision Creation of CSR strategies and CSR strategy framework was set and 1st-year performance evaluation riods from 10 days to 4.5 billion to small Tier 2 suppliers is up and running to ensure these Tier 2 suppliers Social responsibility vision and strategy should Establishment of the and medium size suppliers and reduced the average payment pe. Tier 2 suppliers. and the Technician • Allowing suppliers to participate in new product developments technology transfers and other means. we believe that our sustainability loans. Increasing Support for Technology Development • Support for supplier offices local suppliers in the Honam area through government cooperation project. the industry-academia- • Support for company resorts 4. 35 of our suppliers benefited from KRW 31. our support for the local community is • Completing payments within 7 days upon receiving tax invoices payments issued by suppliers after delivery • Exempting outstanding suppliers from warranty bond payments Community southwestern region of Korea.4 days after the receipt of tax invoices. Chonnam National University.

has been offering free lunches to approxi- 1994. ‘GS Caltex House Green Art Contest/Green Children’s Writing Contest ▶ Since of Love & Sharing’. built 60 toilets and created 300.552 and the Minister of Education.838 the initiative in 2011. . GS tional donations that aim to foster talented individuals who will Culture and Sports 12.8 billion respectively as of lies. for university students were further boosted after the signing of Social Welfare 6. GS칼텍스 assistance to 400 households living in permanent rental apart- Contribution Beautiful World through In 2011. the number of beneficiaries in this initiative amounted happy and growing local community water purifier experience program through colored waste water. continued to Jeolla Province.605 Good Neighbors. ment through sharing for the sustainable future of the planet Each year. we decided 33. In 2011. In 2011. The healing bags designed lead the future energy society.769 56.552 fering environmental diseases.436 11. The accumulated number of beneficiaries and scholarships of- citizen. GS Retail. a group of 20 vol- tate our educational donations. In addition. participated in this agreement. these two events have been attended by a are an active supporter of villages on islands and remote areas overarching themes: ‘Green Sharing’ to create a green environ.610 by Seo-Won Park.605 33. Moreover. Lee.000 children. junior high school students in island regions near Yeosu. we have been holding the Green Art Contest in Seoul mately 310 elderly people per day. 2011. We recently launched the GS&POINT Na. which began back in 2005. total of 141. Some 400 volunteers from the women’s associa- Fulfilling environmental responsibili.843 9. Social Contribution Initiative Directions sions were held and attended by 6.972 Joint projects were undertaken in conjunction with GS Engineer- this agreement. we help repair houses for senior people living alone and humanity and ‘Community Involvement’ that moves beyond Support for Environmental Diseases and Refugees on the islands. Green Sharing and the Green Children’s Writing Contest in Yeosu to encourage since 2008. social responsibilities and duties as a corporate Education for Children ▶ In 2010. A total of 467 students were awarded with the scholar- philanthropic initiatives in order to fulfill our to ensure everyone in our local community has the opportunity National Park Ecology Experience Courses /Environmental to live a peaceful life.780 Sports and the J. In Initiatives 사회공헌활동 2011 offered various programs including the renewable energy Community Involvement 2011.578 and KRW 4.377 people. CEO of Big Ant International. K. ecology experience courses for children from low-income fami- tion with the Korean Red Cross to allow card-holders to donate fered amounted to 6. were sold under R&D Camp for the scientifically-gifted children and the 6 Sigma Others 688 2.425 16. children to think about the meaning and importance of envi- Our Mission in ties for a sustainable future as a total tion comprised of the spouses of GS Caltex employees and local Social Contribution GS칼텍스 energy service provider ronmental preservation. So far.352 ing & Construction.472 3. as a corporate citizen The writing contest had a writing theme related with the natural environment and was held in conjunction with the kids climate Support for Villages on Islands and in Remote Areas ▶ We At GS Caltex. We also initiated donate necessary goods to 112 local welfare facilities and 560 environmental education programs for children in 2010 to in- low-income households in September of 2011.796 in the northern part of Cambodia. The sharing of love and compassion on the Ko. our social philanthropic activities focus on two change quiz. The Green Art Contest held in May of volunteer groups offer their helping hand in the soup kitchen. ships during the scholarship ceremony held on April 27. South cial awareness of environmental preservation. GS Home Shopping.586 2. attended by 569 children. Accountable Engagement Community Involvement and Development 2011 Sustainability Report 46 / 47 46 Social Contribution 48 Enhancement of Community Independence Social Contribution Under the catchphrase ‘Beautiful World through Major Social Contribution Programs Helping the Under-privileged in Local Communities GS Caltex Scholarship ▶ Since 1996.876 volunteers participated in serving 78. We also provided Our Social struct them about climate change and the correct use of energy.135. 2011 to facili- 2010 32. 13 sessions of one-day education programs and 2-night 사회공헌활동 Catchphrase ments within Yeosu city their heating bills in 2011. Energy Sharing 3-day camps were held. we instituted the sponsoring of English classes Ministry of Environment and Korean National Park with an aim then matched in equivalent sums through the donations made taught by native English speakers in 2007 for elementary and to enhance the welfare of the under-privileged and raise the so- by GS Caltex. we have been providing Energy Sharing’. a social welfare organization. 3. the physically-challenged seniors in conjunction with the their accumulated gas mileage to the needy. These donations cover the Junior Education Scholarship 13. and donate goods for public use within these villages. SLOGAN SLOGAN Soup Kitchen ▶ Our soup kitchen in Yeosu. we started national park Num card designed specifically for charity donations in conjunc. 139 ses- rean Thanksgiving Day. that are relatively left behind from their urban counterparts. Our previous endeavors to Social Contribution Expenses Spent by Category (unit: KRW million) nurture talent that covered the support for the industry-academ- Goods for Charity ▶ Our Goods for Charity initiative began in 2009 2010 2011 ia cooperation in the energy sector and the creativity academy 2006 together with World Vision. hold special events for the elderly living in island fragmented support for local communities to pursue actual local Helping Environmental Refugees in Cambodia ▶ We help villages. Those mileage are 2011. GS EPS. As MISSION MISSION Carrying out our responsibilities for a experience program (solar and wind power) and the portable of 2011. we provided 708 water purifying de- 2009 to cooperate with the Ministry of Education. overseas environmental refugees in third-world countries who have difficulties in either obtaining an adequate supply of drink- Education Donation Initiative Social Contribution Expenses Spent by Year (unit: KRW million) ing water or in addressing well water contamination due to cli- Signing the Education Donation Agreement ▶ In order to Amount mate changes and increasing demographics in conjunction with promote public education and foster creative talent. GS Caltex’s CEO Dong-Soo Hur unteers comprised of under-privileged children and GS Caltex 2011 56.000m2 (20ha) reservoirs nology and signed an agreement on November 22.145 3. Huh Foundation. community involvement and development.462 meals. Total 33. Science and Technology Ju-Ho employees was sent to the nation for various relief activities. Science and Tech- vices. Monday through Friday. All the proceeds went to help children suf- training for school principals and teachers.057 1. It allowed us to take the lead in making educa- Environment Preservation 504 1. we are fully committed to social Support for the Needy ▶ We are actively assisting the needy GS Caltex Scholarships to secondary and university students in Environmental Education for Children Yeosu.218 36. to 277.

construction commenced they may land jobs with local companies. 2008 Master plan covering the types of facilities. improved independence and technological development capabilities of local communities. Mangma Mountain and Jang Island in Sijeon-dong. As of 2011. Eco-friendly Cultural and Art Space Life with Waves of port initiative for low-income people in local community. From the which strike a natural balance with the surrounding environment. In 2011. offer. in local communities openly welcome the voices of stakeholders By 2011. 42 low. their sizes and ar port these businesses by paying office rental fees in the early stages. 60 novice lecturers were given an opportunity to accumu. pur. shuttle busses) during the expo period. His design cre- Dec.000m2 near order to create jobs for local women in 2008. This directly contributes to the tion and hosting of the expo event. the Official Supporting Facility for the Yeosu Expo 2012 Ye-ul Maru The Ye-ul Maru Culture & Art Park in Yeosu is the official support- er for the Yeosu Expo 2012 as well as a premier cultural space. Our stakeholders in Yeosu hoped to enjoy culture and art Korean society and engage in economic activities through the support of and this prompted us to create the cultural and art infrastructure childcare facilities and various types of educational assistance. 2009 Groundbreaking ceremony was held aims to help young job seekers in Yeosu City build ca. Yeosu geographical conditions of local community. We are currently serving as a collaborating company for the project ex- ecution committee. by Dominique Perrault. an architect famous for his eco-friendly Apr. GS Support for the Income Growth of Local Island Residents Caltex aims to serve as a strong supporter for the development We have been operating summer guest homes in villages near the Geomun The Ye-ul Maru Culture & Art Park is our of the local economy and culture through the successful invita- and Geumo Islands near Yeosu since 2005. that befits the status of Yeosu as the host city of the 2012 Expo. late hands-on work experience and develop their professional capabilities. performance and exhibition halls. approximately shared growth with the local community as local people who have longed for a decent cultural life for quite 6. May 2012 Opening preliminary planning stage of the project. Ye-ul Maru. Included in the wide-ranging support GS Caltex will years. It is further 2010 Civil engineering work was completed and building pacity and grow into top-performing technicians so that completed by the arrangement of major underground facilities. all the way down to the atelier and Dominique Perrault. we ensure that all our social contribution initiatives exhibition halls for a specified period of time. Accountable Engagement Community Involvement and Development Community Involvement and Development 2011 Sustainability Report 48 / 49 ▼▼▼ 46 Social Contribution 48 Enhancement of Community Independence Enhancement of Local Community Independence GS Caltex’s to ‘eco-friendliness by maximizing the use of new and renewable energy such as photovoltaics and thermal labyrinths while pre- Our social contribution programs are geared towards Culture & Art Park serving the pristine geographical terrain. 2008 The project execution committee was created and the We also signed an agreement to support established social enterprises in designs that comprehensively reflect the historical. the amazing harmony of the mountains and the sea. extending through the key facilities of the Apr. The exhibit is perfected by Nov. in a bid to translate the aspiration of local people into the devel- Self-support Initiative for Local People opment of local culture and art. will be the full supply of fuel for the expo vehicles (including Industrial Complex. ated a 2-km trail starting from the viewing deck on the top of rangements was finalized chasing their products and participating in the relevant steering committee. We continue to repair houses for local people in island villages to improve living conditions for the elderly near Yeosu in alignment with the self-sup. Mangma Mountain. 2007 Agreement signed between GS Caltex and Yeosu City to ed by the floor of the traditional Korean house that was designed build a culture & arts park floor installation and simple home repair services between 2005 and 2011. was commissioned to design the park Sponsoring the Technician Development Project (work space for artists).000 visitors have stayed at the summer guest homes over the past 7 a founding company of the Yeosu National some time. Accumulatively. At GS Caltex. all the buildings. we offered The design particularly reflected our long-standing commitment extensive efforts in offering wide-ranging support that included advice and benchmarking. cultural and project site was finalized on a land site of 700. There is a permanent exhibition hall on Oct. culture and art in addition to room for relaxation as demonstrat- 261 households in this area received such support including wallpapering. A total of 560 variety of performances and exhibitions offered by Ye-ul Maru will GS Caltex employee family members and workers of our suppliers came to demonstrates our firm commitment to the help fulfill the cultural craving of its visitors to Yeosu as well as the these islands between July and August of 2011. Upon completion of the Support for Female Job Seekers park construction. 2009 The consortium of Chang-jo Architects. the world-renowned French archi- tect. In 2011. Oct. assets and landscape facilities We have been supporting employment-training programs to assist local Incorporation of Stakeholder Feedback in Building will be donated to the city of Yeosu and we will facilitate the direct women in improving their job-seeking and vocational capabilities since Ye-ul Maru operation of such facilities in the initial stages as performance and 2005. . a local architect. and reflect them to promote the development of the local com- Another initiative is in assisting married immigrant women to adapt to munity. We have continued to sup. Culture & Art and Relaxation income households were offered assistance with wallpapering and floor Ye-ul Maru embodies the meaning of a space life with waves of Progress of the Ye-ul Maru Project installation in the island region near Nam-myeon. We at GS Caltex hope that a representative social contribution project that increased income of the local people by attracting tourists. Yeosu. 2009 Basic design was completed We are an active sponsor of the Technician School which Jang Island on the pedestrian bridge. a total of 13 such training programs were attended by 347 women.

The GS Caltex consumption products and services Consumption regarding products and services guarantee system was strengthened campaign At GS Caltex. Fair marketing activities 26 ●Completed On-going OUR OUR CHALLENGE RESPONSE 2012 CSR 2011 2011 CSR Issues Progress Implementation STRATEGY Implementation Tasks Major Achievements Task Green driving campaigns were Promotino of Training programs are undertaken in service stations Sustainable Operation of P/G for end users regarding Sustainable needed for end users and filling stations. it is recommended will be initiated in 2012. Priority We take the lead in establishing fair operating Increasing number of consumers who value health and practices and expanding their scope to our an eco-friendly society 9 suppliers and subsidiaries. considering those working at ther strengthened to offer educational service stations are its own employees. The eco-campaign Green Purchasing Equipped with Complaint Handling service stations. trust-based relationship ever since. Our on-site green driving cam- Eunma Service Station gerial perspectives. 2011 Sustainability Report 50 / 51 Responsible Marketing Promotion of Sustainable Consumption Stakeholder Issues Identified through the Compliance with business ethics is our top Materiality Test priority in the conduct of business at GS Caltex. we are (use of authentic fuel products) committed towards responsible marketing. thus committing Sustainable use of resources 14 ourselves to sustainability management. They should opportunities to customers and to also create service station employee training centers share the best practices of top-perform- Service Stations Customer and disseminate the success stories of top-performing ing service stations. responsible ◆ Promotion of Sustainable Consumption With this in mind. offers Jae-Sun Kim I expect the company to offer proactive operational operational support for our service sta- Owner support and assistance. rather than take simple mana. marketing we protect consumer Promotion of Sustainable Consumption rights and promote sustainable consumption. in the industry in July of 2007. . I also hope that GS Caltex offers its paign at service stations and the GS service stations growth potential. 104 96 2. as long as it does not hamper their stability. including investments Caltex guarantee program will be fur- in education and training.4 (unit: %) (unit: days) that operational support for service stations is further expanded. In order to ensure the shared growth of initiative for service station employees Vapor Recovery Units Time (unit: KRW 100 million) GS Caltex and its service stations. created for the first time Consumer Rights → 53 mutually-beneficial. tions. Stakeholder’s Voice GS Caltex’s Commitment Promotion of Sustainable Consumption → 51 Service It’s been almost 20 years since I began my business Our Petroleum Mobile Lab ser- Protection of Station partnership with GS Caltex and we have been building a vice program.

Details regarding the purchase of eco-friendly products 2012 CSR 2011 2011 -C reating and practicing guidelines in purchasing eco-friendly CSR Issues Progress Implementation STRATEGY Implementation Tasks Major Achievements products Task . program’ is provided. We protect the rights of Priority of Environment. Tire pressure: Encouraging service stations (filling stations) to Investors The level of competition is relatively low in the Korean GS Caltex is dedicated to providing high No.Managing targets and performance to encourage sustainable station employees were undertaken Consumer Rights carbon green consumption success stories consumption (at 684 service stations) Details of Eco-friendly Management Support for Suppliers . I social responsibilities. Throughout the entire Auto Oasis maintenance Protection of consumer data and privacy 16 safety regarding products and the resolution shops nationwide.Assisting core suppliers in establishing their own environmental management systems Stakeholder’s Voice GS Caltex’s Commitment Green Purchasing between 2008 and 2011 (unit: KRW million) Undertaking the 3-Stop campaign (off-line) 2008 2009 2010 2011 Total 1.176 1. Our GS Caltex guarantee as an eco-friendly company and implement environmental program will also be strengthened to raise customer awareness OUR OUR management guidelines.610 10. 5. We are fully dedicated to the initiatives that Green Consumption hope that GS Caltex continues to strengthen its social tinue to boost our social responsibility initia- reduce our environmental impact by using sophisticated energy. website: Promoting the 3-Step Campaign responsibilities while improving its economic perfor. Eco-friendly driving habits: Expanding the campaign with the Amount Purchased 4.806 4. tives based on the ISO 26000. As meeting uct and service-related training programs for Low Carbon Green Consumption Korea Sustainability Investing Forum) their social responsibilities is the surest way for com.Purchasing government-designated eco-friendly products -D iscovering and expanding eco-friendly products continuously Endeavors are required On-the-spot eco campaigns for service Protection of Campaign to promote low Database of .  Sustained improvement of green consumption contents in an environment where they can live a cleaner and more throughout our society. saving facilities in order to ensure that our children may flourish mance and disseminating the spirit of love and hope 2. we do not believe that the energy that we consume Promotion of Low Carbon panies to guarantee their long-term sustainability. which will lead to the further reduction of hazardous exhaust information. We will specifically operate prod- guarantee program Executive Director to provide better services to customers.530 help of service station employees Chun-Seoung to other industries.Incorporating the use of eco-friendly products in the terms of contracts . we will con- today belongs to us. Responsible Marketing Promotion of Sustainable Consumption 2011 Sustainability Report 52 / 53 52 Promotion of Sustainable Consumption Promotion of Sustainable Consumption Protection of Consumer Rights We established practices of purchasing eco. . prosperous life. Companies need to compete sible company in spite of the current market 3. This helps our customers maintain complaints and disputes 22 appropriate levels of tire pressure by checking their pressure Green Purchasing status. Low Carbon Green Consumption Campaign friendly products through the voluntary green Our low carbon green consumption campaign is being Stakeholder Issues Identified through the We recognize customer satisfaction as purchasing agreement we signed with the Ministry performed both online and offline in an aim to promote our Materiality Test our top priority. Use of authentic products: Strengthening the GS Caltex Yang more actively based on high quality and lower prices conditions.Incorporating environmental evaluations in selecting suppliers covering long-term contracts responsible ◆ Protection of Consumer Rights -C onducting environmental evaluations in inspecting materials marketing ◆ Customer Satisfaction Initiatives and completing construction Protection of Consumer Rights . the protection of consumer gas emissions.873 participate oil refinery market in terms of market share compared quality products at lower prices as a respon- 2. Moreover. We also provide motor oil checking service free of charge. of Items Waste 976 915 1.639. end users as part of our efforts to meet our At GS Caltex. ●Completed On-going the program to ensure that our low carbon green consumption friendly products in order to enhance our corporate image campaign is successfully established. 1.434 25. We move towards low carbon environmental management initiatives for low carbon green consumers through various initiatives ranging green growth by disseminating an eco-friendly growth and to establish a culture of eco-friendly consumption Customers’ growing price sensitivity 10 from the protection of consumer’s private culture of production and consumption. CHALLENGE RESPONSE regarding the use of authentic gasoline products. Fair marketing activities 26 Our service station employees who interact with customers at Green Purchasing Policy direct contact points take the initiative in informing customers of We follow the directions described below in purchasing eco.846 4. the ‘automobile fuel efficiency enhancement Support for customer services and the resolution of of consumer complaints regarding services.

As of the end of Raised Resolved Protection of Consumer Health and Safety 2011. investments and endeavors in tightening the product information to help our customers make Customer Service Center (CSC) ▶ The CSC(Customer Service physical. factors early on so that immediate response measures may be corporate damage. In order to earn customer trust and minimize any No. creating more clean service stations. equipments to prevent oil leak and overflow and oil leak sensors. forged of falsified and response from escaping into the air via gas pumps. Customer Compliant Handling Performance Check Items Details walled pipes. HDpe). providing and disposing customer service stations are clean service stations and down the road. was established in 2001 through the integration of all customer information. collecting. managerial and technological protection plan to boost the number of clean stations even further. pect of our business from the receipt to the resolution of overall Information tems to prevent soil contamination by double-walled tanks (Frp+iron plates.Express Trainees at Filling Stations taken. and product quality) Protection • Personal information handling guidelines should be agement programs. it is highly critical to identify and as top quality products and competitive services). sumer-centered corporate culture’ is essential for growing into • The collection of essential customer information should Complaint Handling Time be reduced to minimum a leading globally-competitive company and therefore we strive . In 2011. Specifically.2 • Access should be controlled to prevent the leakage of than 4 point scores on a scale of 1 to 5) via our ‘happy call’ customer information through hacking attacks. the CSC is engaged in every as- Protection of Consumer Data and Customer Definition of a clean gas station ▶ Clean gas stations are equipped with proactive sys. All newly built or renovated GS Caltex Act. we abide pliments as well as product and service concerns from service All our employees are trained regularly to raise awareness of have 160 such stations up and running. Clean gas stations are defined Centered Management (CCM) certification aims to evaluate a daily training program that covers the ideal service mindset. • Other measures required by relevant regulations should they occurred. We ban the use of Center). general customers.6 65. that fires. Moreover. through the leakage or discharge of pollutants. meaning disclosed to address customer information. Protection of Customer Information As for marketing communication and product supply. The vapor recovery unit measures are created and taken to minimize any damage to cus- takes in vapor that is spread into the atmosphere via the pump Consumers Consumers tomers and provide immediate responses when customer infor- mation is misused. regulations. and each and every GS Caltex service station will be equipped Logistics Production tiated by the Ministry of Environment in 2006. HDPE). Satisfaction with Customer Complaint Handling • Once used. No. we have installed va. ment System (CCMS)) in 2006 and received the ‘certificate of Monitoring of and Response to the Leakage of Vapor Recovery System Product Customer Information In providing a clean and comfortable service station environment develop. nozzle and puts it into the storage tank. we vertising Act. With our lated to product and service communication.Average number of days between receipt and resolution of complaints (on the bonus card. and so that risks that may impede the health and safety of (unit: No. those damages were attended to as Protection the infiltration of malicious programs.7 65. facilities to prevent oil leaks and overflow and oil At GS Caltex. our service stations are minimized. As of the end of 2011. prevent risk factors in advance through facility maintenance and built to prevent any product damages to customers and the case made after compliant resolution Technological • Vaccine software should be installed and run to prohibit management. service stations. Such systems izing its activities and whether it makes sustained improvements In-House Audit Activities for Customer Information Security include double-walled tanks(FRP+iron plates. systems were . With the firm belief that such a customer- Gas stations deal with high-risk combustible products. With the goal of im- spectrum of our marketing initiatives. in relevant business activities from the perspective of customers.Express Trainees at Service Stations will examine service station facilities to search out potential risk (unit: No. 6-step service manuals and marketing programs (2 hours in total). Such inquires involve product quality com- doublewalled pipes.4 • Customer consent must be obtained when collecting to enhance customer values by running customer-driven man- Managerial customer information. 256 GS Caltex service stations or 96% of those subject to Protection of Service Stations from Soil Contamination mandatory VOC installations had vapor recovery units installed Purchasing Quality Ever since we joined the clean service station pilot project ini. these clean service stations are expected Consumer Service Support and Complaint Resolution service capabilities on the site at customer contact points. there was no violation of regulations re- information. managerial and technical security of informed purchasing decisions. double. 2009 2010 2011 leak sensors. PR to customers and service station workers. the most-ever among by the relevant regulations including the Consumer Protection station customers. as being equipped with systems to prevent soil contamination whether a company takes customer-driven approaches in organ. we introduced the consumer centered man- Audit System to •A  nnual audits should be made of customer information agement initiative (previously Consumer Complaints Manage. bonus card customers and customer information protection and to ensure the safety in domestic competitors. -Express Training ▶ We offer ‘ -Express’ training measures are undertaken to protect sensitive customer data extensive measures in the prevention of soil and underground for employees at our service and filling stations to improve their safely in accordance with the ‘Personal Information Protection water contamination.The percentage of customers found to be satisfied (more 65. of persons) 1535 1685 1919 be taken. while reducing natural Complaints Leeadership System Performance Complaints gasoline losses as well as enhancing air quality. the ‘Information & Telecommunication Network Use to prevent economic losses that incur from the recovery of soil Consumer Centered Management (CCM) ▶ The Customer training bus stops at the service station in concern and provides Facilitation and Information Protection Act’ and other relevant and underground water pollution. ment Our customer information monitoring system ensure that cus. explosions or any other type of accidents are at risk of driven corporate culture is critical in achieving this aim (as well (unit: points) occurring anytime. we provide industry in July of 2010. storing. customer information must be destroyed. misleading phrases and the provision of unclear of our customer service channels and continues to expand its information on our products across the whole scope of activities beyond customer service. The Act’. we make continued out in a fair manner.8 2. proving customer satisfaction. we have been with vapor recovery units by 2012. Therefore. service station’s service 3. of persons) 57 238 102 Protect Customer protection activities every year to strengthen Information the protection of customer information. of . Our Petroleum Mobile Lab service program where there were damages. Service Station Facility Safety Management quality. Sales Service por recovery units at our service stations. which prevent oil vapor tomer information is not leaked. we . This improvement in- creases the inventory of service stations. Fair Marketing Initiatives customer inquiries. using. the Outdoor Advertisement Act and the Broadcasting Ad. we are fully aware that the ‘establishment of a con.3 2. Responsible Marketing Protection of Consumer Rights 2011 Sustainability Report 54 / 55 54 Protection of Consumer Rights 55 Customer Satisfaction Initiatives Protection of Consumer Rights Customer Satisfaction Initiatives To ensure that the confidential information of our We ensure that our marketing activities are carried excellent CCM company’ for the first time in the Korean refining customers is safely managed. of .

3. 9 Third-party Assurance 2.. products. Also explain therelationship between the reporting organization and the assurance provider(s). risks.4 Location of organization's headquarters.5 Number of countries where the organization operates. structure.3 검증 Assurance and basis ofany external assurance provided.subsidiaries. Explanation of the effect of any re-statements of information provided in earlier reports.g.7 9 customers/beneficiaries). fiscal/calendar year) 3. 9. or ownership. operating companies.3 9 6.2 Description of key impacts.g. Sustainable Operation 2011 Sustainability Report 56 / 57 Appendix GRI G3. 8 Statement from the most senior decisionmaker of the organization 1. and types of 2. biennial.1 Name of the organization.2 Primary brands. Significant changes from previous reporting periods in the scope.) About This Report 6.1 About This Report for information provided.4 Contact point for questions regarding the report or its contents. 67 Report Parameters Reporting period (e.. 2.2 Organizational Profile 2.1/ ISO 26000 Index Reported Partially Reported Not Reported Not Available Reporting ISO 26000 Profile Disclosure No.9 techniques underlying estimations applied to the compilation of the Indicators and other About This Report information in the report.2 about the relevance of sustainability to the organization and its strategy.11 About This Report or measurement methods applied in the report. or equivalent senior position) 3 6. 3. of Page Note ISO 26000 Level Core Subjects and Issues Principle of Stakeholder Engagement 6.8 and other entities that can significantly affect comparability from period to period and/or About This Report between organizations.2 Date of most recent previous report (if any). Data measurement techniques and the bases of calculations. and/or services. About This Report 3.9 Significant changes during the reporting period regarding size. Reader’s Voice → 65 2. countries.5 within Value Chain Strategy and Analysis 1. 9 ~ 11 Operational structure of the organization.10 About This Report and the reasons for such re-statement. 3. and names of countries with either major operations or that are specifically relevant to the sustainability issues covered 9 Statement → 62 in the report.5 Process for defining report content.12 57~ 61 numbers or web links where the following can be found. ISO 26000 Index → 57 2. etc. CEO. outsourced operations. boundary. 2. divisions. including main divisions. 3.. . If not included in the assurance report accompanying the sustainability report. Organizational governance 1.3 Reporting cycle (annual. Policy and current practice with regard to seeking external assurance for the report. 9 2. including assumptions and 3. 9 2.10 Awards received in the reporting period.2 Organizational governance GRI 3. Table identifying the location of the Standard Disclosures in the report. sectors served.1 / subsidiaries. Identify the page 3. chair. leased facilities.2 Organizational governance 3. 3. 12 UN Global Compact → 64 Markets served (including geographic breakdown. 12 2. and joint ventures. suppliers). About This Report Boundary of the report (e. leased facilities. See GRI Boundary Protocol for further guidance.5.2 Community Involvement Promotion of Social Responsibility Boundary Protocol 6. About This Report 3. explain the scope 3.6.g.6 About This Report ventures. 3 6. and opportunities.13 62 ~ 63 7. About This Report Basis for reporting on joint ventures.6 Nature of ownership and legal form. joint 3.1 (e.8 Scale of the reporting organization.8. subsidiaries.7 State any specific limitations on the scope or boundary of the report.

9 12 6. We do not export waste. products.5. 27 6.2 by stakeholder group.3/6. 14 ~ 15 6.5 resource use/ Sustainable Development and impact of infrastructure investments and services provided primarily for reclaimed by category. environmental. 2011 Sustainability Report 58 / 59 GRI G3. 6. 4.6 12 6.8. including the extent 6. 7. including frequency of engagement by type and 4. /6.7 Community involvement and development/ EN21 Total water discharge by quality and destination. 7.8.5 The environment reclaimed by category. EC3 Coverage of the organization’s defined benefit plan obligations. biodiversity and Promoting social responsibility in the and runoff. state the number and gender of 4. EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved. 14 6.5. or treated waste deemed EN24 hazardous under the terms of the Basel Convention Annex I. 7.4/6.8 Identity. 6 Community involvement/Social investment/ and payments to capital providers and governments. 6. EN5 Energy saved due to conservation and efficiency improvements. SOx.8.5. EN7 Initiatives to reduce indirect energy consumption and reductions achieved. exported. and Engagement Governance structure of the organization. resource use/ Promoting social EN26 34 Community involvement and development/ of impact mitigation.2 Number of IUCN Red List species and national conservation list species with advocacy organizations in which the organization.2 relevant risks and opportunities. Memberships in associations (such as industry associations) and/or national/international 4.6 resource use/ Promoting social of impacts. 7. senior services.7/6. 23 Process for determining the composition.8/6.2 with respect to economic.8/6. and adherence or compliance with internationally agreed EN12 biodiversity in protected areas and areas of high biodiversity value outside 24 standards.3 EN22 Total weight of waste by type and disposal method.9 development and access/Social investment/ Social investment There was no violation Percentage of products sold and their packaging materials that are EN28 .5/6. EN23 Total number and volume of significant spills.3. EN2 Percentage of materials used that are recycled input materials. 6. Sustainable resource use EN6 Linkage between compensation for members of the highest governance body. principles.8. 6. and the organization’s 12 6.8/6. of Page Note ISO 26000 Profile Disclosure No.7 the highest governance body and its committees. Social investment The use of packaging Economic. Processes for evaluating the highest governance body’s own performance.3 members of the highest governance body that are independent and/ 12 6. including revenues.8/6. donations and other community investments. environmental. 23 4. any land with high implementation.16 14 6.8.2 organizational oversight.2 Location and size of land owned. Economic.2 EN19 Emissions of ozone-depleting substances by weight. 35 4. and other significant air emissions by type and weight. 22 4. of Page Note ISO 26000 Level Core Subjects and Issues Level Core Subjects and Issues Environmental (Disclosure on Management Approach) 17 Governance. environmental.6 biodiversity and restoration of Explanation of whether and how the precautionary approach or principle is Biodiversity protection natural habitat 4. EN9 Water sources significantly affected by withdrawal of water. or adjacent to. III. operating costs. 7.5/6.6.6.5 The environment .4/6. social and cultural rights/Community The environment/Sustainable Percentage of products sold and their packaging materials that are materials accounts for 6. Community involvement and development management plans are resource use/ Protection of EN25 habitats significantly affected by the reporting organization's discharges of water .5. Economic (Disclosure on Management Approach) 6 EN20 NOx.2 The environment/ EN17 Other relevant indirect greenhouse gas emissions by weight.6/6.5/6. .2 and other indicators of diversity. 21 Processes in place for the highest governance body to ensure conflicts of EN8 Total water withdrawal by source.6 under discussion at the environment. EN15 - habitats in areas affected by operations. and transporting members of 24 6.7.5. 6. qualifications. and reductions in energy requirements as a result of these initiatives. and executives (including departure arrangements).8.8.5/6.8.11 13 6. retained earnings.4/6.1/ ISO 26000 Index GRI G3. and extent 6.8. 23 Prevention of pollution Financial implications and other risks and opportunities for the organization’s EC2 21 ~ 22 6.8.including any consideration of gender 12 6.5 Climate change and mitigation We do not emit activities due to climate change. leased. including through its reporting. codes of conduct. social and cultural rights/Promoting regulations.5. 6.9/6. 21 Mechanisms for shareholders and employees to provide recommendations or 4. 21 For organizations that have a unitary board structure.8.5/6. restoration of natural habits Policy.4/6.6. protected status.6/6. 37 ~ 39 4. significant hazardous substances.5.5 managers. protected EN11 . and services on 4. imported. and proportion of spending on locally-based suppliers at significant 6. 7.8. by level of extinction risk.7 social responsibility in the value chain/Respect for property rights/ Access to essential services/ Significant environmental impacts of transporting products and other goods and The environment/Sustainable Understanding and describing significant indirect economic impacts. sustainability report.13 13 6. practices. 8 6.12 13 6. 22 6. and future plans for managing impacts on biodiversity.6.4 Initiatives to provide energy-efficient or renewable energy based products and 21.2 interest are avoided. 22 Key topics and concerns that have been raised through stakeholder engagement.7. 7. - Externally developed economic. and social charters.8.2 addressed by the organization. 21 or non-executive members. size. Range of ratios of standard entry level wage by gender compared to local minimum wage at Conditions of work and social protection/ Biodiversity The environment/ Sustainable EC5 27 6.3 involvement and development/Community EN27 . and principles.4.5/6. depleting substances.9/6. 12 6. - organization has responded to those key topics and concerns. 7.4.6 involvement/Education and culture/Technology consumption public benefit through commercial.6/6.7 Employment creation and skills/ community at significant locations of operation.9 Social investment The environment/ 6.9 Technology development and access/Wealth and income creation/Social investment EN30 Total environmental protection expenditures and investments by type. .4/6.6.17 4. II. 6/6. 23 Internally developed statements of mission or values.2 EN4 Indirect energy consumption by primary source. 5 6. /6. areas and areas of high biodiversity value outside protected areas.2 EN3 Direct energy consumption by primary energy source. 7. managed in. /6. and VIII.1/ ISO 26000 Index Reported Partially Reported Not Reported Not Available Reported Partially Reported Not Reported Not Available Reporting ISO 26000 Reporting ISO 26000 Profile Disclosure No.8. EN10 Percentage and total volume of water recycled and reused. of environmental 6. codes of conduct. in-kind.1 governance body responsible for specific tasks. and social performance.8 Weight of transported. responsibility in the value chain /6. plans are under discussion at the CSR EN14 Strategies.2 disclosed in our 2012 initiatives to which the organization subscribes or endorses. EN13 Habitats protected or restored. 6 and percentage of transported waste shipped internationally.8.5/6.8/6.10 4. 7. 6.5. 20 4. or probono engagement. current actions.4 12 6. EC4 Signifi cant financial assistance received from government.5 responsibility in the value chain/ Procedures for local hiring and proportion of senior management hired from the local Sustainable consumption EC7 26 ~ 27 6.2 EN16 Total direct and indirect greenhouse gas emissions by weight. of the total. Organizational governance Procedures of the highest governance body for overseeing the organization’s identifi cation and management of economic.3.5/6. and biodiversity value of water bodies and related signifi cant locations of operation.7 development/Employment creation and skills/ Social investment The environment/Sustainable Initiatives to mitigate environmental impacts of products and services. and social performance.8 relevant to economic. CSR Committee. 5. Commitments.2 Indicate whether the Chair of the highest governance body is also an executive officer. 20 6.15 Basis for identification and selection of stakeholders with whom to engage. environmental. or other Committee and will be 4. including Description of significant impacts of activities.5. biodiversity value. including committees under the highest EN1 Materials used by weight or volume. only a minimal portion EC8 49 /6.2 performance (including social and environmental performance).5 value chain/ Community involvement and EC6 44 locations of operation.7. and how the We do not emit ozone- 4. particularly The environment/ 4. 24 Protection of environment. 14 6.2 The environment/ direction to the highest governance body. 23 EC1 employee compensation. such as setting strategy or 12 6.5/6. and social performance and the status of their 1.8/6.5 EC9 46 ~ 49 Community involvement and development/ EN29 materials used for the organization's operations. protected areas.4/6.5 Climate change and mitigation Approaches to stakeholder engagement.4/6.8.7 Technology development and access/ the workforce.5/6.8.14 List of stakeholder groups engaged by the organization. and principles We do not possess 4.5. 7. 19 Direct economic value generated and distributed. and expertise of the members of 4.

4/6.4/6. by significant locations of operation.3/6.4.8. There is no 6. Promoting social responsibility in the value chain The Korean Standards Association served as an independent assurance provider of this report and confirmed that the report qualified for the Application Level A+.4/6.3.4.4 Type of product and service information required by procedures.6.8. and number donations.4/6. support.3/6. and actions taken /6.8.7 Consumer data protection and privacy There is no area Human rights/Due diligence/Human rights risk Operations and significant suppliers identified in which the right to exercise of business that 6.4.3.4.6/6.3/6. work and social protection 6.7 and sponsorship by type of outcomes. 26 employment relationships/Conditions of work and SO3 policies and procedures.7. occupational diseases. There is no Labour practices/Emplyoment and employment Percentage and total number of business units analyzed for business unit LA3 Benefits provided to full-time employees that are not provided to temporary 30 ~31 6. 2011 Sustainability Report 60 / 61 GRI G3. infringement of /6.4/6. by gender. - Percentage of total workforce represented in formal joint management– LA6 worker health and safety committees that help monitor and advise on 26 Fair operating practices/Responsible political 6.3/6.4.7.5/6.7. support.6/6.6 and rights at work/Emplyoment and employment In accordance with the 2002 Guidelines C C+ B B+ A A+ relationships management.3/6. counseling.7/6.7. training.4/6.5 Emplyoment and employment relationships/ PR9 concerning the provision and use of products and services. and voluntary codes related to PR6 marketing communications.9/6. support. standards.6.6.4/6. with ethics 6.6/6.3.3/6.3/ SO8 for noncompliance with laws and regulations. 6.7/6.4. elimination of all forms of forced or compulsory labor.3.4/6.4.7 Mandatory Self-Declaration Independent Independent Independent in concern.7/ chain/Consumer issue/ Discrimination and vulnerable groups/Fundamental 6. 6. and absenteeism. 45 ~ 49 Employment creation and skills/Social and employment relationships /6.4/6.4/6.4/ Percentage of employees trained in organization’s anti-corruption LA4 Percentage of employees covered by collective bargaining agreements. Social dialogue complaint and dispute resolution Operations and significant suppliers identified as having significant risk for Human rights/Due diligence/Human rights risk situation/ Avoidance of complicity/Discrimination HR6 incidents of child labor.5/ and vulnerable groups/Fundamental principles HR8 or procedures concerning aspects of human rights that are relevant to 43 management operations.7 Total number and rate of new employee hires and employee turnover investment/Respect for property rights LA2 27 by age group.10 Human rights/Avoidance of complicity/ HR7 incidents of forced or compulsory labor.4/6.4.5 Human rights/Due diligence/Avoidance of HR1 contracts that include clauses incorporating human rights concerns. and region. promotion.7/6. politicians. 6. 6. lost days.3 relationships Total number of substantiated complaints regarding breaches of customer privacy Consumer issue/ PR8 and losses of customer data.6/6.5/6. contractors and other business partners 6. safety at work SO6 and related institutions by country.3/6.10 social protection/Social dialogue/Fundamental principles and rights at work Labour practices/Emplyoment and employment SO4 Actions taken in response to incidents of corruption.10/6. /6.3. 43 6. social and cultural rights/ /6.7 Human rights/Resolving grievances/Discrimination Total number of incidents of violations involving rights of indigenous Assurance Report Assurance Report Assurance Report HR9 . and other indicators of diversity. addressed and resolved Verification HR11 .5 complicity/ Emplyoment and employment services/Education and awareness HR2 30 that have undergone human rights screening. It is under Percentage of security personnel trained in the organization’s policies integrated Human rights/Resolving grievances/Discrimination 6. minority group 27 principles and rights at work/Labour practices/ PR1 assessed for improvement. protection corruption. - with high risks of or part-time employees.4/6.5 employability of employees and assist them in managing career endings.8. /6.3. and percentage Consumer issue/Fair marketing. business Resolving grievances through formal grievance mechanisms.8.3.3/6.5 protection/Social dialogue Public policy positions and participation in public policy SO5 development and lobbying.8/6.7. any political Rates of injury.4/ practices/Protecting consumer's health and 6.3. and region.7/6.7. and development programs.3/6.3.8. business Due diligence/Human rights risk situation rights reviews and/or impact assessments.9 safety/Sustainable consumption/ Consumer Human Rights (Disclosure on Management Approach) 30 Total number of incidents of non-compliance with regulations and voluntary There is no service.4. fatual and LA15 Return to work and retention rates after parental leave.7/6.9 complaint and dispute resolution Human rights/Resolving grievances/Discrimination PR7 codes concerning marketing communications.1/ ISO 26000 Index GRI G3.4/6. in concern. and measures taken to contribute to the effective 30 and vulnerable groups/ abolition of child labor.6. and sponsorship. and basic labor rights.3.7/6. 30 Percentage of operations with implemented local community engagement. 6.3/ unbiased information and fair contractual HR3 aspects of human rights that are relevant to operations.5/ Fair operating practices/Fair competition/ Education.4/6. category.3/6.1 Application Level Operations and significant suppliers identified as having significant risk for 6.7.4/6. .8.3 Labour practices/Emplyoment SO1 impact assessments. their families.4.3. 6. Third-Party There is no Optional Number of grievances related to human rights filed.4.3/6. and complaint and dispute PR4 codes concerning product and service information and labeling.8/ Community involvement and development/ 6.10 rights/Fundamental principles and rights at work/ Monetary value of significant fines for non-compliance with laws and regulations There is no Consumer issue/ cant risk.3. including advertising.5/6.4.1 guidelines and we self-declare that this report meets all the requirements for the Application Level A+.4.3/6.7/6.8/6. support. 42 ~ 43 Minimum notice period(s) regarding operational changes. by gender.4. /6.4.4/6.5 Human rights/Avoidance of complicity practices/Consumer service.4. Promoting social responsibility in the value membership.8/6. Respect for property rights There is no Percentage and total number of operations that have been subject to human HR10 . 34 unbiased information and fair contractual /6.7 LA8 to assist workforce members.4 employment relationships/ Conditions of life cycle. business and vulnerable groups/Civil and political rights/ people and actions taken.6 Consumer service.4.3.8.4/6.3.3. fatual and Total hours of employee training on policies and procedures concerning promotion.9/6.6 relationships/Promoting social responsibility in the value chain Programs for adherence to laws.6.6/6. gender.3/6.3/6.8 Education and culture/Health Monetary value of significant fines and total number of non-monetary sanctions Fair operating practices/Respect for property 6.7. Total number of incidents of non-compliance with regulations and voluntary 6. in the workplace/Employment creation and skills Percentage of employees receiving regular performance and career Labour practices/Human development and training Product Responsibility (Disclosure on Management Approach) 33 LA12 31 6. including advertising.3.4.3.3 Emplyoment and employment relationships categories subject to such procedures.6 Total value of financial and in-kind contributions to political parties. and complaint Human rights/Due diligence/Avoidance of 6.7. by type of outcomes.4. employment contract.3/6. Economic.4. or community members regarding 28 ~29 Community involvement/ serious diseases.8/6. Total number of legal actions for anticompetitive behavior.8. Community involvement and development Average hours of training per year per employee by gender.4/ Fundamental principles and rights at work Declaration of the GRI G3.3/6.3.6. anti-trust. Labour practices/Emplyoment and 6.8/6.3.9 and dispute resolution/Access to essential Percentage of significant suppliers.7/6.6. and percentage of employees trained. and risk-control programs in place Labour practices/Health and safety at work/ SO7 and monopoly practices and their outcomes.7.8 Operations with significant potential or actual negative impacts SO9 on local communities.3. Labour practices/Health and We do not make 6. 55 There was no 6.8/6.3.4.6/6. of Page Note ISO 26000 Profile Disclosure No.4.3 Fair operating practices/Anti-corruption 6.10/6.3.10/6. including results of surveys measuring 6.3.7 rights/ Social investment Labour practices/Health and LA9 Health and safety topics covered in formal agreements with trade unions.7.3.7. LA7 28 of workrelated fatalities by region and by gender.5 Protecting consumers' health and safety/ Total number of incidents of non-compliance with regulations and voluntary 6.6.3/6.7.4.3. 42 ~ 43 Respect for property rights 6.7/6.10/6.7/6.6 in the value chain health and safety/ Sustainable consumption/ Practices related to customer satisfaction.4.6/6.3/6. - penalty imposed. of Page Note ISO 26000 Level Core Subjects and Issues Level Core Subjects and Issues Labor Practices and Decent Work (Disclosure on Management Approach) 25 Society (Disclosure on Management Approach) 41 Total workforce by employment type.4.7 employee category. . 30 Discriminatiohn and PR3 of significant products and services subject to such information requirements.7.6. by type of violation recorded.8. age group.8.7/6.6/6.1/ ISO 26000 Index Reported Partially Reported Not Reported Not Available Reported Partially Reported Not Reported Not Available Reporting ISO 26000 Reporting ISO 26000 Profile Disclosure No. 26 ~ 29 6.4.5/6.4 Discrimination and vulnerable groups/Fundamental LA13 employee category according to gender.3. and actions taken to support these rights.4/ principles and rights at work/ There is no Sustainable consumption LA14 Ratio of basic salary and renumeration of women to men by employee 27 Labour practices/ Emplyoment and PR2 codes concerning health and safety impacts of products and services during their - violation recorded.6/6.4/6.4/ LA5 26 relationships/ Conditions of work and social including whether it is specified in collective agreements.3.3. 43 6.4.4 vulnerable groups 6.7 development reviews.5. and measures to contribute to the 30 Emplyoment and employment relationships/ Our GS Caltex Sustainability Report 2011 was prepared in accordance with the GRI G3.3 involvement/Community involvement occupational health and safety programs. 30 discrimination and rights at work/Emplyoment and employment that occurred.6/ safety at work 6.7/6. training in the workplace Prevention and mitigation measures implemented in operations with signifi Programs for skills management and lifelong learning that support the continued Labour practices/Human development and training SO10 cant potential or actual negative impacts on local communities 45 ~ 49 Community involvement and development LA11 27. 55 Consumer service. and percentage of significant products and services 34 Economic.3/6.8.3/6.3.3.6.3.3/6. or that 30 complicity/ Promoting social responsibility Consumer issue/Protecting consumer's have undergone human rights screening.5/ PR5 customer satisfaction.7. 6.6/6.4/6. 54 6.4.4 relationships/Conditions of work and social SO2 risks related to corruption. including the 7. 6. social and cultural rights/ LA1 27.8. 6. resolution/Education and awareness outcomes.3/6. . by significant locations of operation. prevention. Percentage and total number of significant investment agreements and 6.7.3/6.4/ situation/Avoidance of complicity/Civil and political HR5 freedom of association and collective bargaining may be voilated or at signifi 30 may give rise to 6. and by Labour practices/Human development and LA10 31 6.7.6/6.4. in concern.6/6. 31 6.5 broken down by gender Community involvement and development/ 6. 55 Consumer issue/Fair marketing.6.3/6. 6. 43 6.8.8. in the workplace Life cycle stages in which health and safety impacts of products and services are Composition of governance bodies and breakdown of employees per 6. and vulnerable groups/Fundamental principles HR4 Total number of incidents of discrimination and corrective actions taken.

provider of the Korean government’s greenhouse gas energy target management system. 2011 and December 31. It is recommended. stakeholder demands. collecting and preparing performance indicators in the Report and engage in quality as- ment. The company would benefit from sharing with stakeholders such information as its top management’s commitment to fair trade. society as an ISO 26000 national secretary. KSA also verified that GS The Korean Standards Association (KSA. The Report was revised if deemed necessary. reliability and accuracy of specified sustainability performance information within the Report in accordance with the AA 1000AS principle of reporting responsibility. however. detailed activities taken by departments in Assurance Results and Opinions (regarding assurance principles/process) charge and activities to prevent any reoccurring violations of the fair trade principle through sustainability reports. Chang-Ryong Kim. This also constitutes a moderate-level assurance regarding the reliability of the report content. data and evidence in relation with the assurance scope and provided assurance using the follow-  At GS Caltex. KSA outlines the following opinions regarding the Report. business and performance  Growing uncertainties in the global political landscape caused by fluctuations of oil prices and foreign exchange rates are exerting between January 1. 2011 Sustainability Report 62 / 63 Third-party Assurance Statement •Materiality Dear GS Caltex Management and Stakeholders:  Materiality means that GS Caltex should determine the level of relevance and significance of a specific issue regarding the organization and its stakeholders. the analysis of media coverage and internal diagnosis. GS Caltex is recommended to expand its strategic activities to maintain and enhance the •Consistency between financial data in the Report and corporate audit reports trust and reputation among stakeholders and disclose the endeavors it is making to this end. KSA believes that GS Caltex is operating appropriate processes and channels to ensure stakeholder engagement. In particular. KSA June 2012 arrived at the conclusion that the content of this Report reflects the sustainability of GS Caltex’s management void of significant errors or biases. •Review of the sustainability data preparation process through the physical visit to the GS Caltex headquarters and Yeosu Complex •Review of internal documents and basic data to support core statements within the Report •Society •Review of the consistency between financial data in the Report and corporate audit reports With the growing importance of fair trade. The direct impact on the energy industry and stakeholders are clearly aware of these emerging issues. KSA is an independent and autonomous association and is not affected by any KSA believes that GS Caltex reflects material sustainability issues in determining its guidelines and initiatives and is responding to influence or interests of GS Caltex.1 guidelines and ISO 26000 principles in performing the assurance engage- reduce any errors in the process of calculating. aged under the corporate slogan of ‘company-wide response to climate change’. Assurance Methodology •Environment KSA gathered the necessary information. Report 2011(the ‘Report’ hereafter). monitoring relevant outcomes. materiality and responsiveness under the AA1000AS 2008 were followed in assuring this surance activities covering the creation of internal guidelines and procedures to comply with the principles of accuracy and consistency. the disclosure of environmental indicators may emphasize the achievements measured against •Interviews with GS Caltex employees in charge of sector-specific performance data and review of data collection systems the set sustainability management strategies. analysis and organization of the information and all the statements included in this Report. 2011. The assurance principles of inclusivity. KSA highly evaluated it in that it applied adequate levels of weighting to major stakeholder issues regarding Korean Standards Association(KSA). KSI(Korea Sustainability Index) operator. energy management and efficiency improvement initiatives are being undertaken and GHG emissions are being man- ing methods:. the ‘assurer’ hereafter) was commissioned by GS Caltex to assure the ‘GS Caltex Sustainability Caltex went through the materiality test process in identifying core issues covering the analysis of recent trends. With its assurance. GS Caltex would benefit from taking a step further •Review of sustainability issues that may impact GS Caltex and garner attention from stakeholders to disclose the quantitative data of its energy consumption or GHG emissions in order to illustrate its endeavors and achievements in •Review of the process to determine material issues to be included in the Report addressing climate change. Specifically. achievements and relevant systems in this Report the analysis of industry peers. •Inclusivity  Inclusivity means that GS Caltex should fulfill its duty to explain on sustainability and engage stakeholders in developing and implement- ing relevant strategic measures. UN CDM DOE(development operational entity). identifying additional possible Assurance Standards and Level improvements and continuing to work on these improvements. AA1000 assurance provider. report. GS Caltex is entirely and solely responsible for the collection. which means that as an assurance provider. KSA reviewed the draft of the Report and presented its opinions. KS certification and ISO certification. and assurance anced communication on a company level. GRI G3. KSA is committed to the sustainable development of the Korean recommended that GS Caltex designate employees in charge of the integrated management of wide-ranging stakeholders for more bal. Meanwhile. sustainability management. stakeholder interviews. GS Caltex would benefit from diver- assurance engagement focused on the data regarding environmental. KSA’s involvement with stake- sifying and expanding the scope of its risk management activities and make responsive strategies accordingly in order to maintain its holder engagement was limited due to its review of the materiality evaluation process. recognized GRI training body. global competitive edge. KSA reviewed the evidence and validity of the data. It is disseminates such services as industrial standardization. that GS Caltex perform internal reviews to The assurance provider used the AA1000AS 2008. Not included in the assurance scope is the verification of financial data in its narrow meaning. Chairman & CEO of the Korean Standards Association As such. •Our Recommendations for Further Improvement (regarding implementation performance and issue) Assurance Type and Scope The following recommendations aim to assist GS Caltex in laying the basis for sustained response to sustainability issues through the KSA’s assurance is a Type 2 assurance as defined by the AA 1000AS standards. •Responsiveness  Responsiveness is defined as an organization’s response to the stakeholder issues that affect its sustainability performance and it is Independence achieved through decision-making activities in addition to performance and stakeholder communication. Aside from providing third-party assurance on the Report. •Economy The scope of this assurance is limited to the systems and activities of GS Caltex covering sustainability policies & goals. social and wider economic achievements. implementing these strategies with the proactive support from top management. is serving as a knowledge service provider which distributes and social responsibility as it previously did in 2010 and created a more systemic and objective system to identify stakeholder issues. it is highly encouraging that GS Caltex is creating social responsibility strategies. written by GS Caltex to arrive at independent assurance conclusions. Introduction KSA is not aware of any significant omissions or exclusions of critical information on the part of GS Caltex. KSA evaluated the creation of company-wide level sustainability management strategies. . quality management. established as a special corporation in accordance with the Law for Industrial Standardization in 1962.

Which is your main area of interest? (Multiple choices permitted) made to this report. strategies or policies in the area of anti-corruption.The COP describes key outcomes of integration of the anti-corruption principle. in business conduct Others [ ] Anti-Corruption Implementation • Implementation of fair operating practices on a stragic level 4. Gangnam-gu. Promotion of sustainable consumption □□□□□ Thank you for your cooperation.The COP describes robust commitments. □ GS Caltex employee □Shareholder □ Financial institution □ Highly unsatisfactory □ Unsatisfactory □ Average Ye-ul Maru Project Council. strategies or policies in the area of environmental •Implementation of low carbon environmental management strategies and review of the possible conduct of Fair operation □□□□□ stewardship.The COP describes key outcomes of integration of the labour principles. improvements in business conduct Labour Principles Implementation 3. the Board of Directors 1. •Promotion of women’s rights through the operation of an in-house childcare facility □ Media □Research institute □Other [ ] •Implementation of a company-wide CSR strategy to secure a sustainable environment 6. labor union. 21.The COP is independently verified by a credible third-party. Please rate the following activities (according to their importance) 17.The COP describes effective management systems to integrate the environmental Community involvement and development □□□□□ • Regular discussion of environmental outcomes through the CSR Committee principles. strategies or policies in the area of human rights. • Assistance to suppliers in establishing their own voluntary compliance programs that GS Caltex should pursue in order to develop in a more 18. the UNGC principles and the GRI G3. CDM projects and entry into the carbon market 14. Low carbon environmental management □□□□□ in business conduct Your invaluable feedback. The COP describes robust commitments.The COP describes effective monitoring and evaluation mechanisms for environmental •Development of the internal ISO 26000 diagnostic tool to review environmental issues and reflect improvements stewardship. How would you evaluate this report? • Collection of opinions through interviews conducted from each stakeholder group 3. The COP describes key outcomes of human rights integration. 2011 Sustainability Report 64 / 65 UN Global Compact Reader’s Voice Since joining the UN Global Compact in December of 2010. Which of the following applies to you? 5. Criterion Report Content we will carefully turn our ears to your voice concerning this report and the entire business operation at GS Caltex. •The Ministry of Environment. improvements in business conduct Extension of product and service responsibility □□□□□ Environmental Stewardship Implementation Establishment of future energy leadership □□□□□ 13. received via the contact point below.The COP describes key outcomes of the integration of the environmental principles. To grow into a sustainable company beloved by stakeholders through our compliance with our social responsibilities. in business conduct Protection of consumer rights □□□□□ •Development of the internal ISO 26000 diagnostic tool to review environmental issues and reflect improvements 16. labour. Korea Sustainability Investing Forum □ Customer □Supplier □NGO □ Satisfactory □ Highly satisfactory UN Goals and Issues □ Local resident □Academia □Government •Provision of opportunities for the equal development of human resources 4. 135-985 •Incorporation of such international standards as the ISO 26000. Governance and Engagement •Discussion of activities in relation with human rights.The COP describes robust commitments. The COP describes effective management systems to integrate the labour principles. This year’s COP was prepared to meet the UNGC Advanced Level GS Caltex Sustainability Reports are published every year to communicate our performance in meeting our social requirements and outlines our compliance activities in greater detail. The COP describes engagement with all important stakeholders. 15. E-IL Industry. The COP describes effective decision-making processes and systems of governance for •Integrated risk management in the economic.The COP incorporates high standards of transparency and disclosure.The COP describes the implementation of the Global Compact principles in the value chain. GS Caltex Transparency and Verification Fair operation □□□□□ •Provision of general corporate information including its organizational profile and operational methodology 22. Moreover. guidelines in the publication of sustainability reports Protection of consumer rights □□□□□ Fax : +82-2-565-5168 24. GS Holdings. responsibilities that cover: the economy. principle. the environment and our social contributions. •Stipulation of GS Caltex’s human rights policies in accordance with international standards including the UN Human Rights Declaration and human rights responsibility regulations 2.The COP describes effective monitoring and evaluation mechanisms for the integration of •Development of the internal ISO 26000 diagnostic tool to review environmental issues and reflect improvements anti-corruption. The COP describes robust commitments. • Regular discussion of labor outcomes through the CSR Committee Stakeholder communication □□□□□ 11. The COP describes key aspects of the company’s high-level sustainability strategy in anti-corruption through the CSR Committee line with Global Compact principles. through the establishment of productive labor relations in accordance with the Great Work Place strategy ◀ Not satisfied 1 2 3 4 5 Satisfied ▶ regarding our business activities at GS Caltex. civil consumer’s organization. GS Caltex has been a strong supporter of its principles Reader Feedback Survey on the GS Caltex Sustainability Report 2011 in the areas of human rights. The COP describes actions taken in support of broader UN goals and issues. •GS Caltex’s sustainability management strategy – created in accordance with the ISO 26000 and includes the 10 Extension of product and service responsibility □□□□□ UNGC principles Establishment of future energy leadership □□□□□ Environment & Product Quality Planning Team. Value Chain Implementation Great Work Place □□□□□ will be greatly appreciated.The COP describes effective management systems to integrate the anti-corruption • Regular discussion of anti-corruption outcomes through the CSR Committee sustainable manner. the environment and anti-corruption.The COP describes effective monitoring and evaluation mechanisms of labour principles •Development of the internal ISO 26000 diagnostic tool to review the outcomes of labor practices and to reflect Low carbon environmental management □□□□□ integration improvements in business conduct Great Work Place □□□□□ •Development of the internal ISO 26000 diagnostic tool to review the outcomes of labor practices and to reflect 12. 10. Seoul. 679 Yeoksam-dong.com . social and environmental sectors through corporate sustainability. Eunma Service Station. the environment and 1. fulfilling its duty to come up with the COP (Communication on Progress) report each year. Please rate the completeness and usefulness of the data • Implementation of the corporate vision for mutually-beneficial relationships between labor and management presented in this report. • Discussion of human rights issues through the CSR Committee □ Human rights □Labor practices 7. The COP describes effective monitoring and evaluation mechanisms of human rights •Development of the internal ISO 26000 diagnostic tool to review human rights issues and to reflect improvements □ Environment □Fair operating practices integration in business conduct □ Consumer issue □Community involvement and development •Development of the internal ISO 26000 diagnostic tool to review human rights issues and to reflect 8. strategies or policies in the area of labour.The COP provides information on the company's profile and context of operation. labour. Please feel free to share any expectations you may have 9. Please feel free to suggest any improvements that could be Human Rights Implementation 2. The COP describes effective management systems to integrate the human rights principles. Strategy. through sustainability reports Community involvement and development □□□□□ GS Tower. ◀ Not satisfied 1 2 3 4 5 Satisfied ▶ 19.1 Promotion of sustainable consumption □□□□□ Tel : +82-2-2005-6136 23. □ Stakeholder communication □Organizational governance employees and the implementation of human rights policies in the upcoming years 6. 7. • Third-party verification made by the Korean Standards Association Others [ ] E-mail : bridgegs@gscaltex. •Application of the human rights guidelines stipulated in 2011 to the expansion of the human rights awareness of 5. it is published to gather the invaluable feedback of our stakeholders so that we may incorporate it into the fabric of our business conduct in the upcoming years. in business conduct Stakeholder communication □□□□□ •Development of the internal ISO 26000 diagnostic tool to review environmental issues and reflect improvements 20.

Korea Association of Business Ethics Nov. 1 in Korean Industry sector of the Korean Consumer Satisfaction Index(KCSI) 2010. Yeosu City Sep. 2011 Grand Prize at the Customer’s Beloved Brand Awards 2011. Ethics Management Awards. 2011 Presidential Award at the 33rd Energy Saving Competition. 2010 Prime Minister’s Award at the 12th Korea Master Brand Awards. 2010 Selected for the Marine Safety Competition. Ministry of Employment and Labor Nov. 2011 Grand Prize. 2011 $20 Billion Export Award for the 2nd time in the history of Korea. JoongAng Daily Jul. 2010 Selected as a top-former under the voluntary chemicals emission reduction agreement. Korean Standards Association Nov. Ministry of Land. Prime Minister Nov. 2011 1st in the Service Station sector in the National Customer Satisfaction Index for 3rd consecutive years. 2010 Best Safety Management Company Award 2009. Sustainable Operation Awards Jan. 2011 Top performer in the Korean Sustainability Index 2011. Ministry of Knowledge and Economy Oct. 2011 Korea’s Top Win-Win Partnership Company Award. Ministry of Knowledge and Economy Nov. Ministry of Employment and Labor Oct. 2010 No. 2010 Grand Prize at the Workplace Innovation Awards 2010. 2010 1st in the Service Station sector in the National Customer Satisfaction Index 2010. Ministry of Environment Apr. Korea Productivity Center Nov. Korea Productivity Center . Transport and Maritime Affairs Nov. Korea International Trade Association Dec. 2011 Prime Minister’s Award at the Labor-Management Culture Awards 2011. Korea Management Association Consulting(KMAC) Oct.