HYOSUNG TNC

Industrialization has led to the emergence of many high profile companies and entrepreneurs, shifting the focus from agriculture to industry. This has brought about significant changes in society, economy, and culture owing to the birth of capitalism.

In capitalism, companies prioritize profit maximization, gauging their success on financial gains. Such single-minded pursuits of profits have brought convenience and abundance to society at first, but as time went on, it has also led to unintended consequences such as environmental and social issues, as well as concerns about corporate ethics. As a result, consumers and governments have started to view corporations from a different perspective.

Today, governments and consumers go beyond the bottom line when evaluating corporations. They carefully examine and regulate various aspects, including corporation’s proactive stance on environmental initiatives, social contributions, and corporate ethical responsibility, before making purchase decisions. This represents a shift towards embracing new corporate values in the modern era, marking the essence of sustainable management.

Hyosung has always prioritized sustainable management practices, and discussed directions towards the future. As the world continues to evolve, the company has instituted a specialized ESG management team to integrate ESG principles into all areas of operations.

With a strong commitment to eco-friendly management, Hyosung is committed to creating a sustainable cycle at every step of the production process, utilizing tangible technologies and focusing on everything from raw material development to product disposal. Hyosung’s employees actively engage in various eco-friendly activities, such as organizing the "Eco-friendly Idea Contest" where everyone shares their ideas, promoting the use of tumblers, and conducting campaigns for collecting plastic bottles. Additionally, the company is dedicated to preserving endangered wildlife and marine ecosystems through initiatives like the "Seagrass Forest Project" and biodiversity conservation efforts. The company’s employees continue their efforts without limitations, working towards a better and greener future.

Today, we introduce the ESG Team that leads Hyosung's sustainable management values.

Introducing the ESG Team Leading Hyosung's Environmental Values!

In April 2021, the governing body known as the 'Transparent Management Committee' within the Hyosung Board of Directors was restructured and renamed to the 'ESG Management Committee.' Since then, the ESG Management Committee has been actively engaged in various tasks related to Hyosung's sustainable management.

They address various important matters for the new era, including global policies on climate change, setting goals, risk management, investment planning, and amendments to the Green Management Vision 2030 Policy. They also set reduction targets, implement internal carbon pricing, and report emissions under the emission trading system. Despite these various responsibilities, Hyosung remains dedicated to evolving sustainable management relentlessly.

The company has consolidated the EHS (Environment, Health, Safety) Committee and the CSR Committee, expanding their focus as the 'ESG Management Promotion Committee' presided by the CEO. This committee now handles not only environmental and safety health sectors but also social structures and corporate governance. This reorganization is driven by the high expectations on the increasing value of ESG management in the future.

The 'R&D Committee' plays a pivotal role in Hyosung’s sustainable management. With the CEO and management team’s participation, they meet biannually to formulate research and development strategies. This includes gathering input from departments like sales, marketing, and research, focusing on global climate change. By doing so, the R&D Committee shares the responsibility of advancing Hyosung's sustainable management.

Moreover, each subsidiary of Hyosung has its own dedicated 'ESG Management Team' directly reporting to the CEO, serving as Hyosung's ESG-focused organization. Furthermore, the strategic headquarters boasts a 'Green Management Team.' The presence of these teams and individuals working together underscores Hyosung’s unwavering and genuine dedication to growing the value of sustainable management.

What efforts are members of the Hyosung family making?

Although operating under the Hyosung banner, each business unit has its distinct roles and requires different approaches to sustainable management depending on the circumstances.

In the second half of 2021, Hyosung TNC, Hyosung Heavy Industries, and Hyosung Chemical restructured their decision-making bodies, the EHS Committee and the CSR Committee, to form the ‘ESG Management Promotion Committee’ presided by the CEO. Hyosung TNC and Hyosung Heavy Industries convene the committee every six months, while Hyosung Chemical does so on a quarterly basis.

Hyosung TNC calculates and monitors its ‘product carbon footprint’ to measure greenhouse gas emissions from production and consumption. The company offers consulting services to help partners improve their the energy greenhouse gas management capabilities. Hyosung TNC leads the eco-friendly fiber market in S. Korea, offering environmental-friendly products such as polyester, nylon, and spandex. It was the first to develop ‘regen Polyester’, a recycled fiber made from discarded waste PET in 2008. In July 2022, it partnered with the Korea Trade Association for the 'Open Innovation Project' to support startups focused on textiles and sustainable management. Hyosung TNC’s efforts are expanding and leading the eco-friendly fiber market.

Hyosung Heavy Industries has implemented internal carbon pricing and reports greenhouse gas emissions as either a surplus or deficit. It has been constructing and operating a 700bar ‘hydrogen vehicle charging system’ for next-generation eco-friendly hydrogen vehicles since 2008, even when hydrogen vehicles were not as popular. In 2010, the company has supported the intelligent power grid 'STATCOM' to address power production instability, which is a challenge for renewable energy, while solely commercializing this technology in S. Korea. In 2014, it achieved a breakthrough by developing HVDC technology, enabling the transmission of high-voltage AC power from power plants as DC power, which significantly contributes to renewable energy adoption.

Hyosung Chemical deals with various agendas, such as responding to the CDP, managing risks of greenhouse gas emissions, and participating in energy companion projects. In 2013, it achieved a major milestone by developing the world’s first industrial plastic called 'polyketone', which serves as a sustainable alternative to metals and helps reduce air pollution caused by carbon monoxide. In 2016, the polyketone-based brand 'Poketon' was launched, and in 2022, the company engaged in biodiversity conservation activities through initiatives such as ‘animal behavioral enrichment.'

Hyosung Advanced Materials strives to tackle climate change and improve people’s lives. Led by the CEO, the 'Sustainable Management Committee' charts the path for decision-making in the company. The focus is on reducing carbon emissions through innovations like 'TANSOME®’ and ‘UT Steel Cord (ultra-high tensile strength)', which were developed for the first time in S. Korea in 2011 with proprietary technology, enhancing fuel efficiency. The company has extended tire lifespans with its Dip technology, which strengthens tire’s fatigue resistance, and resulted in reducing tire waste and environmental pollution. In 2022, Hyosung Advanced Materials signed MOUs with Jeonju City and the National Ecological Institute to actively engage in biodiversity conservation and restore the endangered species, 'Jeonju Dysophylla yatabeana Makino.’

Hyosung's sustainable management, RE:GEN, is even more promising for the future

Hyosung is actively expanding sustainable management practices through advanced technology and dedicated employees. In 2018, the company announced 'Green Management Vision 2030' with a goal to reduce greenhouse gas emissions by 14.5% by 2030 compared to 2018 levels. Since then, Hyosung has been actively involved in carbon reduction initiatives. As a recognition of their efforts, Hyosung, Hyosung Advanced Materials, Hyosung TNC, and Hyosung Heavy Industries have each received a Grade A or higher from the global sustainability assessment agency, CDP, in 2020, 2021, and 2022.

Hyosung has instituted five sustainable management themes under the ‘RE:GEN’ brand, to maximize the reach of technology for future generations. These themes include recycling and upcycling for a circular economy, carbon neutrality, clean renewable energy, tree and forest protection, and smart reduction through efficient energy use. Through Hyosung’s RE:GEN brand, the company is dedicated to creating a beautiful and healthy planet for future generations by promoting ESG values.

Hyosung’s sustainable management strategy focuses on the principle of sustainability, while capitalizing on proprietary advanced product technology. Hyosung is committed to implementing systematic, practical, and exemplary sustainable management practices, setting a positive benchmark for global companies. By striving to create a better society and environment, Hyosung aims to ensure a brighter future for many more generations to come.