NC

In 2022, NC became the first Korean game company to ever be included in the "DJSI Korea Index.” Additionally, NC has received outstanding ratings from ESG evaluation institutions both from home and abroad, such as MSCI and KCGS. We would like to present the outcomes of NC's ESG efforts over the past year, including the results achieved, as well as share plans for NC's future efforts and activities in this area.

NC has achieved a significant milestone by being included in the 2022 Dow Jones Sustainability Indices (DJSI) Korea Index. Every year, S&P Dow Jones Indices, the world's biggest financial information institution, and S&P Global Switzerland SA, the global sustainable management assessment institution, assess and announce companies' ESG achievements. Out of the 205 companies evaluated, only 52 were included in the DJSI Korea Index, and NC is the sole Korean game company to have been included. NC was particularly recognized for its excellent performance in personal information protection, security, human resources management, and development.

NC received an "AA" rating for the Morgan Stanley Capital International (MSCI) ESG Ratings, which is higher than the "A" rating it received in 2021. This is the highest rating ever received by a company in the media & entertainment business and global gaming industry. NC received high scores in privacy protection, information security, and governance areas.

Additionally, NC has achieved an "A" ranking for two consecutive years since 2021 in the ESG assessment conducted by the Korea Institute of Corporate Governance and Sustainability (KCGS), Korea's most renowned ESG evaluation institute. This is the highest ranking achieved by a local game company. NC was recognized for its excellence in information security and privacy protection sectors, consistent with the overseas ESG assessment institutions, and was also appraised for its communication with shareholders and other interested parties.

If 2021 was focused on strengthening the basis for ESG management, 2022 was dedicated to establishing three core values: ① The Right Play, ② Digital Responsibility, and ③ Qualitative Leap of Society, and executing related activities in full.

NC has cultivated a "Shift Left" culture that prioritizes customer communication from the early stages of game development, contributing to the concept of "The Right Play." The development procedures for the THONE AND LIBERTY, Project M, and Project LLL have been shared one after another via NCing, with close communication with the players.

NC has established the NC AI Ethics Framework as the principle for sustainable growth of AI technology into human-centered AI for activities related to “Digital Responsibility.” In addition, NC has built a global level of information security and privacy protection system around the Information Security Center. NC is recognized as a company that leads the industry in the sectors of information security and privacy protection. Sustainalytics, a global ESG assessment institute, analyzed NC's information security ability and found it to be in the top 1% globally. Additionally, MSCI evaluated NC and rated it at the leading level in the privacy and data security sectors.

Lastly, with regards to “Qualitative Leap of Society,” various activities have been implemented to encourage the creativity of future generations. One such activity is “Projectory,” which is a representative business of the NC Cultural Foundation. Although NC is an IT company that creates value based on intangible assets, it has established the “Environmental Management Practice Principles” with a commitment to sustainable environmental management. NC also responds actively to climate change. The company is making efforts to reduce energy consumption across its facilities, including the Data Center and R&D Center. Additionally, the company considers environmental friendliness a top priority in the construction of its new office building, scheduled to be completed in 2026. The details on the related events will be disclosed transparently in the Sustainable Management Report that is published every year.

NC is planning to steadily practice the tasks related to its core values this year as well. The company will actively seek out opportunities to undertake additional work to fulfill its social responsibilities as a company, beyond its current efforts.

It also plans to expand social contribution activities targeting local communities. As a start, NC carried out a coding training program for future generations last December. NC aims to cultivate a culture of social contribution that is enjoyable for all participants, going beyond simply performing good deeds.

The evaluation that NC received from domestic and overseas assessment institutions last year were a result of its efforts and will to practice sustainable management as well as management achievements. NC will not stop here and sees this recognition as a stepping stone towards continuously strengthening its ESG management. We appreciate your continued support for NC as we strive to make sincere efforts in the year 2023.