Hankook & Company builds group-wide ESG reporting framework

Hankook & Company has established a group-wide ESG (environmental, social and governance) reporting framework covering key affiliates including Hankook Tire & Technology and Hanon Systems. The move broadens the scope of its ESG management and sets out medium- to long-term action plans in response to tightening global sustainability disclosure standards.

Hankook & Company, the operating holding company of Hankook & Company Group, announced Sunday that it had published a sustainability management report outlining its ESG performance and future direction.

The report marks the first time the company has upgraded its existing ESG fact book into a full report format. Through the new framework, Hankook & Company aims to manage ESG information across its major affiliates in an integrated manner and build a foundation for responding to the evolving sustainability disclosure environment.

The report identifies eight core ESG issues based on a double materiality assessment — an approach that examines both the impact of corporate activities on the environment and society, and the effect of ESG factors on a company's finances and operations.

The eight issues are: climate change mitigation, supply chain sustainability management, occupational health and safety, ethics and compliance, sustainable raw materials, energy management, transparent and accountable corporate governance, and product resource circulation.

The report also addresses the company's response to global ESG regulations, covering board-led ESG oversight, supply chain human rights due diligence, anti-corruption and fair trade practices. The intent is for the holding company to manage ESG tasks across its affiliates in a unified way.

Hankook & Company plans to advance its ESG operating framework around four pillars: supply chain sustainability management, product carbon footprint management, greenhouse gas emissions reduction and renewable energy transition, and ESG disclosure data management.

Demand from global customers and regulators is growing in the automotive parts and tire industries, particularly around carbon emissions, raw material sourcing and supply chain management. This has made group-level data management and cross-affiliate ESG collaboration increasingly important.

"This report is the first to translate Chairman Cho Hyun-bum's long-held ESG management philosophy into a group-wide integrated reporting framework and execution strategy," a Hankook & Company official said. "We will continue to strengthen ESG cooperation with our key affiliates and make ESG a core pillar of our competitiveness as we build a more solid foundation for sustainable growth."

Meanwhile, Hankook & Company Group is pursuing sustainability management under its integrated ESG brand "Driving Forward, Together." Key priorities include establishing a carbon neutrality roadmap, improving energy efficiency, expanding renewable energy and reducing greenhouse gas emissions.

Hankook & Company Group is a global high-tech conglomerate whose affiliates include Hankook & Company, Hankook Tire & Technology, Hanon Systems, Hankook Networks and Hankook Engineering Works.