Human Rights Risk Assessment for M&A and New Business Relationships

In addition to its company-wide human rights due diligence process, Pulmuone identifies and assesses potential human rights risks that may arise when establishing new business relationships, including mergers and acquisitions (M&A) and joint ventures. This enables the Company to identify potential human rights issues early in the transaction review and decision-making process, incorporate them into investment decisions, and promote alignment with the Group's human rights standards following an acquisition.

① Assessment Framework

Pulmuone has established a proprietary due diligence checklist comprising 40 assessment items to comprehensively assess risks that may arise during and after M&A transactions. The checklist covers environmental, social, and governance (ESG) factors. The table below presents the human rights-related assessment items included in the checklist.

② Use of Assessment Results

Human rights risks identified through the checklist are incorporated into M&A decision-making. Following an acquisition, identified issues are translated into improvement actions and incorporated into the Group's human rights due diligence process. Through this approach, Pulmuone continues to strengthen its human rights risk management framework across its own operations, value chain, and new business relationships.