Evolution Baccarat

Major performance results in 2021

No. of new employees

171 people
ESG evaluation for supply
network (self-diagnosis)

46 companies
Labor union membership
Compared to No.

100 %
Hours of education per employee

52.8 hours

HEALTH AND SAFETY

0.30%
0.29%
0.14%

2019
2020
2021

We respect the health and safety of our
employees and customers at all business sites
as our top-priority value, and actively run
autonomous health and safety programs to
that end. We have defined the standards for
all such activities in our health and safety
management policies.

* 2022 status of handling of grievances in relation to the
health and safety of workers in partnership companies

Received0 case/Processed 0case

ENHANCEMENT OF CUSTOMER TRUST

Goal to Protect Consumers' Right

Strengthen the provision of information and prevent
the causes of consumers' complaints

Leakage of customers’
personal information
(2019 to 2021)
Non-compliance with laws and
autonomous regulations related
to marketing and communication
(2019 to 2021)
Accidents & incidents related
to human rights (2019 to 2021)

ZERO

Leakage of customers’ per- sonal information (2019 to 2021)

Non-compliance with laws and autonomous regulations related to marketing and communica- tion (2019 to 2021)

Accidents & incidents related to human rights (2019 to 2021)

DEVELOPMENT AND INVESTMENT TO ENHANCE QUALITY

10,722
10,227
10,782

2019
2020
2021

We aim to secure the highest quality by
strengthening our quality control system while
investing progressively in facilities, equipment,
R&D, and so forth.

As a result of our continuous efforts to
improve product quality, we recently
launched diverse healthy and tasty products.

We plan to continue developing diverse
products based on the health needs and
taste preferences of our customers.

SECURING HEALTH AND SAFETY
DURING THE USE OF PRODUCTS AND SERVICES

FOOD SAFETY MANAGEMENT POLICIES

Food safety does not allow the slightest safe zone. We take every possible measure to make perfect
products by enacting our food safety management policies based on our philosophy of developing
products and services that are safe for customers. This represents our credo of making the next 50
years of safe and healthy products based on the integrity of the past 50 years.

Evolution Baccarat requires its employees to observe the following in-house principles of food safety to
reassure the customers, and has developed a culture where food safety is highly respected
based on its food safety management system.

1

All production and sales
activities must comply with all
of the food-related statutes
and company standards as
well as the requirements of
its food safety management
system.

2

All new products of any food
brand the company produces
and sells must be released only
after securing food safety by
removing all risks of food safety
accidents in advance through
the ‘advance security
assessment’.

3

The company must develop
and apply the guidelines for
the selection and evaluation of
its partner companies in
selecting, maintaining and
managing OEM and other
partner companies.

4

“Quality, sanitation, and safety”
are periodically audited to
enhance the competency of
the production site to practice
food safety.

5

Local statutes are thoroughly
applied to secure global food
safety.

6

The customers’ requirements
for food safety should be
followed.

7

Internal and external
systematic education should
be conducted to enhance
expertise and competencies of
those in charge of food safety.

PERFORMANCE IN SECURING PRODUCT SAFETY

We consider ‘food safety’ the top priority in all the processes related to R&D, purchase of raw
materials, production of products, management of production facilities, and distribution. All our
products have acquired HACCP approval. We practice quality and food safety- oriented
management by acquiring the ISO 9001 and FSSC 22000 certifications.

Our Gimhae factory was selected as the best HACCP milk-collection site in the 2019 survey and
assessment of its HACCP operation level, which is conducted on all milk-collection sites
throughout the country by the Ministry of Agriculture, Food and Rural Affairs.

QUALITY AND SAFETY VALUE CHAIN

R&D

R&D on enhancing
food quality

PURCHASE

Partner companies
selected through
quality assessment

PRODUCTION

Advance verification
of product quality
through safety assessment

SALES

Safe distribution
management of
all products

HUMAN RIGHTS MANAGEMENT

Declaration of Human Rights Management
by Evolution Baccarat Co., Ltd.

All employees of Evolution Baccarat Co., Ltd. recognize that as “messengers with a bright smile who bring health and happiness” we must
place respect for human rights above any other value, as it is both a universal value of humankind and a philosophy that we
aim to fulfill in conducting all our business activities. Furthermore, we recognize that fulfilling our corporate social responsibility
is not simply a gracious act that a company may perform at its own discretion, but rather a noble duty that
it is morally bound to fulfill as a member of the social community.

In order to fulfill our responsibility of respect for human rights, we will support and comply with the principles of the Universal
Declaration of Human Rights, the UN Global Compact and the Fundamental Principles and Rights at Work.

We are also committed to supporting the UN Guiding Principles on Business and Human Rights as set forth by the UN Human
Rights Council, and in order to comply with those principles, we will operate a human rights management system that includes
assessment and improvement activities as well as monitoring, internal and external communication, and grievance handling
and remedy procedures.

GOAL OF HUMAN RIGHTS MANAGEMENT

HUMAN RIGHT RISK ZERO

Grievances received in 2021 in relation to
human rights and status of their process

Received0case

Processed0case

Evolution Baccarat’S PRINCIPLES OF HUMAN RIGHTS MANAGement

1

Protection of the Human Rights of Our Members

We shall create a safe and pleasant work environment to secure the health and safety of employees.

We shall evaluate to compensate according to a fair standard, and provide the opportunity of
self-development to improve work capability.

We shall improve the work condition continuously to achieve Work-Life Balance of employees.

We shall not practice any discrimination but respect diversity according to gender, race, religion,
disability, and origin of birt.
2

Protection of the Human Rights of Our Customers

We shall do our best to develop healthy and safe food varieties as a messenger of bright smiles
who shares health and happiness.

We shall put priority on the protection of customers' lives and their health when providing products
and services.

We shall take the best action to protect personal information collected through management
activities.

We shall not practice discrimination but respect diversity according to gender, religion, disability
and origin of birth.
3

Protection of the Human Rights of Our Business Partners

We shall make an effort for business partners with a win-win busineess relationship to comply with
the recommendation of ILO and in this regard cooperate to double the practical capabilities.

We shall put an effort to grow together and coexist through fair and transparent transactions.

We shall take the best action to protect personal information collected through management
activities.

We shall not practice discrimination but respect diversity according to gender, religion, disability
and origin of birth.
4

Prevention of Potential Risks of Violating Human Rights in the Course of Business Activities

We shall be aware of the potential risk of human rights violations that may occur during the process
of management activities and take the best action to prevent preemptively.

We shall do our best to prevent human rights violations in ethical areas such as protection of
personal information, quality control, protection of intellectual property, compliance of fair trade,
and transparent disclosure of information.

We shall prevent human rights violations in the area of employment and labor such as harassment
in the workplace, violation of social diversity, forced labor, child labor, and the violation of freedom
of association.

We shall strive to prevent the violations of domestic & foreign environmental laws and eliminate
the elements of environmental pollution.

Employees of Evolution Baccarat Co., Ltd

WIN-WIN COOPERATION AND LOCAL DEVELOPMENT

Win-win growth

As We source our raw materials from diverse suppliers to manufacture food items, stable management of
our supply network is a very important factor in stabilizing costs and prices. As such, our compliance with
the fair-trade regulations is part of our corporate social respons bility (CSR). We continuously explore new
means to grow and prosper together with our partner companies and farmers.

Win-win growth principle

1

Enhancement of competitiveness
and creation of synergy through
win-win growth between small
and large businesses

2

Contribution to the State and
society through harmony and
unity between small and large
businesses

3

Creation of future values through
multifaceted collaboration
between small and large
businesses

Win-win growth activities and programs

a.

Signing of fair-trade
agreements.

b.

Meetings with partner
companies.

c.

Introduction of win-win
payment and
performance sharing
systems.

d.

Introduction of
win-win fund.

e.

Development and operation
of a dispute mediation
procedure.

f.

Formation of the
Subcontract Review
Committee.

g.

Establishment of
the Fair-Trade
Promotion Department.

h.

Support for sanitation,
technology and
equipment.

i.

Operation of system
to notify employees
about key information.

j.

Operation of system to notify
employees about
key information.

Organizational chart of win-win growth

We operate win-win growth organizations such as the external cooperation team and
win-win growth task forces in order to listen to the voices of our partner companies

1

Rules on fair selection (registration) of
partner companies

We have established procedures for selecting and
managing its partner companies to ensure that new
partner companies are selected and registered
through fair transparent business procedures.

2

Rules on formation/operation of the
Subcontract Terms Review Committee

We have made it a mandatory procedure to conduct
internal reviews of the terms of subcontracts signed
with its partner companies so as not to treat
them unlawfully or unfairly, by complying with the Fair-Trade Act when subcontracting with its partner companies.

4

Rules on entering into desirable contracts

We have established rules on entering into new
contracts with its partner companies, with the aim
of guaranteeing their benefits when contracting
with Evolution Baccarat.

3

Rules on issuance and archiving
of desirable documents

We have established regulations concerning the
issuance and archival of documents that must be
issued to benefit partner companies in the process of
signing subcontracts and growing together with the
partner companies.

4 major duties to
perform for
win-win growth

1

Rules on fair selection (registration) of partner companies

We have established procedures for selecting and managing its partner companies to ensure that new partner companies are selected and registered through fair transparent business procedures.

2

Rules on formation/operation of the Subcontract Terms Review Committee

We have made it a mandatory procedure to conduct internal reviews of the terms of subcontracts signed with its partner companies so as not to treat them unlawfully or unfairly, by complying with the Fair-Trade Act when subcontracting with its partner companies.

3

Rules on issuance and archiving of desirable documents

We have established regulations concerning the issuance and archival of documents that must be issued to benefit partner companies in the process of signing subcontracts and growing together with the partner companies.

4

Rules on entering into desirable contracts

We have established rules on entering into new contracts with its partner companies, with the aim of guaranteeing their benefits when contracting with Evolution Baccarat.

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