2008 2008 Sustainability Report Sustainability Report World Best 3E Creator Energy｜Environment｜Expertise Challenge& make a Difference www.westernpower.co.kr 411 Yeongdongdaero, Gangnam-gu, Seoul 135-791, Korea Tel. 02-3456-7711 Fax. 02-3456-7759 Contents Report Preparation and Epilogue Application of GRI G3 We, Korea Western Power Co., Ltd., apply the G3 guideline of GRI when preparing the 2008 Sustainability Report. We declare CEO Message 04 We deeply realize the importance of sustainable department. The 2nd TF Team increase the completeness of that this report meets the requirements Communication with Stakeholders 06 management. We do our best efforts to actualize the clear report by comprehensively classifying and arranging the data. for above G3 Guideline. Evaluation of Importance 07 management by considering our stakeholder as the top We start the preparation of this report under the goal of The KFQ, Korea Foundation for Quality, verifies that this report acquires the A priority. We organize the TF Team by making use of handling making the best report. However, we feel some insufficiency Degree during the verification process. staffs serviced in our head office for guaranteeing the resulted from limited manpower and time. If you find any Challenge & Make a Difference +Note : The sign, +, means that this report is verified by the 3rd party. substantiality and reliability. errors or defect in our report, please remind us errors or Our History 10 1. Purpose of Publication The 1st TF Team consisting of 22 staffs arrange the activities defects through the reader's questionnaire. we will Vision and Management Strategies 13 The purpose of this report is to open our overall activities, performed by our and accomplishments based on the data provided by each supplement our report based on your comments or opinions. company for completing our social liability, and accomplishments acquired Characteristics of Power Industry 15 through the activities to our stakeholders such as shareholders, government agencies, investors, contractors, local society and civic groups. Governance Structure 16 Decision President & CEO T/F Team Members 2. Report Preparation Standards Risk Management 18 Report verification Verified by the This report has been prepared by applying the Sustainability Reporting Items T/F Guideline 2006 of GRI (G3) and Electricity Utility Sector Supplement (draft) For Ethic Management 20 Adjustment Executive Vice President professional company Su Keun Yang, MD, Management the details, refer to the GRI Index Chart. Project Manager Improvement Dept. Chun Su Kim, Social contribution team 3. Scope and Duration of Report Project manager T/F Team leader Creative Energy leader, Management Improvement Dept. This report has been prepared to explain the business operation of our Seoul Management improvement Analyze the stakeholder and supervise Sun Bin Im, Deputy General Manager, head office and 7 business places. The duration to report is January 1st, 2007 Creative Energy 24 division director the overall report preparing process. Social Contribution Team thru December 31st, 2007. Some accomplishments acquired in July 2008 are Energy Security 25 Carefully prepare and review the included in this report. Our accomplishments acquired over last 3 years 2005 Jeong Lae Im, Manager, Publicity Team challenge & make a difference section. thru 2007 are specified in this report to show the trend of our TF Team Leader Value Creation 27 Carefully prepare and review the accomplishments. Jeong Su Lee, Manager, Financial Team Social contribution team T/F Team creative energy section. Technological Development 30 lader members Carefully prepare and review the clean Jae Chul Lee, Manager, Environmental & 4. Characteristics of Report and Difference from Previous Ones Advisory energy section. Chemical Team Working-level job We publish our Sustainability Report based on the environment report Management Innovation 31 Advised by the TF Team Members(1st, Carefully prepare and review the happy Rae Hyun Jeong, Manager, Construction professional company published in 2004. We published our first Sustainability Report by adding the Important Management Accomplishments 32 2nd) energy section. Team economic and social accomplishments to our existing environment report for Arrange the accomplishments of 21 staffs including Sang Hak Lee, Planning 9 departments the purpose of guaranteeing the smooth communication with our stakeholder. important issues. Dept. We specify the insufficient parts of 2007 Sustainability Report such as DMA (disclosure on management approach), activities related to our stakeholder Clean Energy and importance evaluation more detail. Also, we specify the accomplishment information at end of each section so that the readers may comprehensively Clean Energy 36 check our management accomplishments. Climatic Change and Energy 37 5. Data Measuring and Selecting Standards Utilizing the Resources and 41 Sustainable Management Progressing Trace The financial accomplishments stated in this report are prepared according to Minimizing the Generation of Pollutant financial accounting standards. Our environmental and social accomplishments are prepared according to Important Environmental Indexes 48 2005 Environment Report 2006 Environment Report 2006 Sustainability Report 2007 Community Relations White Book (2005.5) (2006.11) (2007.9) (2007.10) applicable laws or data measuring and selecting standards. 6. Policy and Practice of Verification Agency Happy Energy This report has been verified by the KFQ, the 3rd party verification agency, for guaranteeing the reliability. Happy Energy 52 7. If you have any questions on this report, contact us at following Safety and Health 53 phone numbers and address: Employee Satisfaction 55 Homepage: www.westernpower.co.kr Management Focused on 59 Coexistence with Our Contractors Handling department Together with Local Society 62 Strategy & planning team, Management strategies department Korea Western Power Co., Ltd. Appendix How to contact us Tel : 02-3456-7613 Verification Statements Prepared by 68 Ӌ Our first environment report Ӌ Our second environment report Ӌ Our first sustainability report Ӌ Our first community relations report Fax : 02-3456-7752 the 3rd Party Ӌ We have arranged the environmental Ӌ Build the environment management Ӌ Prepare this report focused on strategies, Ӌ Arrange the social contribution management activities and system and arrange the environmental systems and accomplishments. strategy, organization, system. E-mail : [email protected] GRI Index Chart 70 accomplishments since 2002. accomplishments. Ӌ Nominated as the top company by the Ӌ Arrange the social contribution Ӌ Revise and declare the environment policy Ӌ Ecosystem preservation and stakeholder Hankyoreh Economic Institute. Definition of Words 74 accomplishments acquired after being Challenge & make a difference and environment management plans. partnership -Nominated as the top 4 clean company in separated from KEPCO. Ӌ Decide the long-term environmental goals Ӌ Nominated as the top ESH Value East Asia. This is a management policy slogan showing our strong intention targeting Ӌ Arrange our strategic social contribution Major Awards and Certificates 76 of each area management company. Ӌ Nominated as the top sustainable the sustainable management by making a difference based on the challenging program. Ӌ Strategy to be ready for the climatic change management company. and creative thought. Nominated as the 2008 top social Associations and Organizations Joined by 76 protocol and sustainable management. Ӌ Nominated as the top company for the Ӌ Our company as a Membership Member excellent communication. contribution company. World Best 3E Creator Energy̸Environment̸Expertise Challenge& make a Difference CEO Message Sustainability Report 2008 04 We provide the happy energy to our nation. We will be a good friend of our people and local society. Happy energy makes people warm. Clean energy keeps the environment clean. We contribute to our nation and society through the best energy generated in harmony with human, technology and environment. Our esteemed stakeholders! We, Korea Western Power Co., Ltd., deeply appreciate your continual interest and strong support enabling our continual growth. This sustainability report is published as the second edition for the purpose of showing our strong sustainable management intention and meeting the requirements for the global standards. Recently, the power industry is faced with a lot of difficulties resulted from increased price of power generation fuel and fierce competition. In addition, interest in environment is getting increased, so the eco-friendly plans are considered as a key element in generating the power. We operate our business focused on the sustainable management by accomplishing our responsibility to keep the natural environment clean and overcoming the difficult business environments. We have tried our best efforts to accomplish our business goals by recognizing the importance of sustainable management since separated from Korea Electronic Power Corporation as the professional power generation company in 2001. We have prepared the sustainable management road map and Vision 2020(3 plus 10), long-term management strategy, to secure the dynamic force of continual growth as a part of efforts to become the global top power company based on our management accomplishments for last 7 years. The Vision 2020 is prepared to show our strong management intention required for guaranteeing our