HYOSUNG TNC

Over 120 countries, including South Korea, the United States, and China, have declared carbon neutrality by 2050, aiming to achieve zero carbon emissions. More than 170 countries have signed international environmental agreements, including the Climate Change Agreement, the Biodiversity Agreement, and the Desertification Prevention Agreement, commonly referred to as the three major environmental agreements of the United Nations (UN). As environmental pollution reaches critical levels and climate change threatens human survival, many countries are working together to prevent further damage. Consumers are also participating in this movement, not just at the national level. The need for improving working conditions and considering social minorities increases as awareness and living standards improve. Companies are also expected to take responsibility for environmental and social impacts. The world has become increasingly interested in social values such as environmental stewardship, social contributions, and ethical business practices. It has become imperative for companies to consider sustainability alongside profit-seeking to flourish and survive.

In South Korea, ESG management is becoming increasingly important, and ESG evaluations are predicted to impact consumer brand loyalty significantly. Due to global warming and changes in tropical climate, Korea faces undeniable climate crises, such as severe droughts and floods. During trans-seasons, air pollution, including fine dust and yellow dust, reaches alarming levels, making it impossible to leave the house without wearing a mask. Due to these factors, ESG management has become increasingly important, focusing on environmental issues. Z generation consumers, who are primarily in their 20s and 30s and have high purchasing power, are more sensitive to environmental issues of companies.

Hyosung has been investing generously in technology development and research for environmental protection and sustainable development and is sincerely committed to concrete ESG management through its ESG brand RE:GEN, staking the group's prosperity on it. Hyosung is placing ESG at the core of its business as an important direction and growth axis and expanding it. However, since there are limitations to generating social results for ESG alone, Hyosung is leading a change in social awareness and has launched the RE:GEN Alliance, which pursues the same values for ESG management through alliances based on goodwill to expand the entire value chain.

Meaningful Companionship for All Generations, RE:GEN Alliance

Hyosung is taking a more proactive approach than anyone else in the practice of ESG management and has positioned ESG as the most critical element in the direction of social responsibility and business innovation. As an important business direction and growth axis, Hyosung Group plans to expand ESG and establish it as the core of its business. It aims to accelerate ESG innovation in all aspects, from the production to all subsidiaries, major products, services, and solutions that reflect ESG core values. Drawing upon its technological DNA, Hyosung Group is constantly innovating and striving to respond to the future of all generations, centered around its core values of a circular economy, carbon neutrality, hydrogen and renewable energy, and energy redesign through its ESG brand, RE:GEN.

Hyosung recognizes that there are limits to creating great social outcomes by taking responsibility for the environment, engaging in social contribution activities, and conducting ethical management alone. We know that environmental protection and consideration for social minorities require collective efforts. Knowing this, Hyosung is leading in bringing about practical changes in ESG and enhancing ESG activities to generate even greater social outcomes. We have launched the RE:GEN Alliance to collaborate with other companies that strive to achieve sustainable responses for future generations, centered around core values including a circular economy, carbon neutrality, hydrogen and renewable energy, and energy redesign. RE:GEN Alliance will strive to create social outcomes of ESG management with the core values of cooperation for a better future, responsibility for all generations, sharing of resources for good, and a commitment to achieving concrete results through tangible ESG management, together with Hyosung.

RE:GEN Alliance TO-BE

Hyosung is already operating RE:GEN with a genuine and substantive approach to ESG management. By launching the RE:GEN Alliance and making the decision to collaborate for greater achievements, Hyosung aims to strengthen the trust and authenticity of its ESG brand, RE:GEN. The alliance provides an opportunity for partners who participate in ESG management to share in Hyosung's genuine ESG values and promote good faith.

RE:GEN Alliance is thrilled to announce its first collaboration with the upcycling fashion brand Harlie K. Harlie K is a sustainable fashion brand dedicated to enhancing the value of resources and promoting a shift towards environmentally friendly consumption. They achieve this by incorporating various eco-friendly materials such as recycled denim, coffee bags, and vegan Korean paper (Hanji) leather into their designs. Through Hyosung's open innovation project, Harlie K was discovered and initiated a collaboration, leading to their official partnership with the RE:GEN Alliance. As part of the RE:GEN Alliance's inaugural project, the collaboration between Hyosung and Harlie K has unveiled the "Mare Bag," an environmentally friendly recycling bag made from upcycled fishing nets. This collaboration not only allows Hyosung to achieve tangible results regarding ESG management and social impact but it also provides significant benefits to Harlie K as a participating brand. The RE:GEN Alliance firmly believes that all companies and brands involved in the alliance can achieve similar positive outcomes.

Through its partnership with various companies, Hyosung aims to enhance the social awareness and brand recognition of RE:GEN, while supporting to its partners to engage in consistent activities based on Hyosung's practical ESG management know-how in their respective fields. As of 2023, Hyosung is supporting a number of brands as part of the RE:GEN Alliance, including Harlie K, which was the starting point for its brand enhancement activities, 119 REO, LUCA LAB, which produces accessories using industrial materials, and Axoo, which supports ESG activities and biodiversity projects and sponsored the Oop Seoul Festival. In addition, Hyosung is collaborating with other brands such as CUECLYP, NoPlasticSunday, Kanei Tei, Over Lab, Jerrybag, LAR, Montsenu, OWNU, Continew, EGS, Understand Avenue, Trashbusters, among others, to develop brands under the RE:GEN Alliance name. As part of its ESG management practices, Hyosung has established a public-private partnership fund to support co-prosperity management. We are working with companies that produce outstanding eco-friendly products under the RE:GEN Alliance name to share core values and develop brands for eco-friendly products while supporting the growth of environmental technology and brands. Hyosung's partnership with its partners in the RE:GEN Alliance generates social contributions, ethical management, and environmental benefits, resulting in the acceleration of innovation and solutions for a better future for all generations. The RE:GEN Alliance aspires to work together to solve today's environmental and social problems through its practical implementation of ESG management with the aspiration that future generations will enjoy as much prosperity as the current generation.

Our management philosophy, known as the Hyosung Way, is dedicated to transforming dreams into reality by uniting the strength and determination of Hyosung employees worldwide. Our primary objective is to set a new trend rooted in Hyosung's brand identity while upholding our core values. The Hyosung Way aspires to establish our company as a global leader, pioneering innovative lifestyles for our customers with a focus on Global Excellence, Innovation, Accountability, Integrity. At the heart of the Hyosung Way lies a commitment to bring significant changes and advancements in our customers' lives. We prioritize core values such as customer-recognized “Global Excellence” relentless "Innovation" that embraces and pursues change, unwavering "Accountability" in fulfilling promises and ensuring a sustainable future and fostering "Integrity" that promotes dynamic and flexible synergy through mutual respect, trust, and resource allocation.

Hyosung Group firmly believes that by cultivating dependable partnerships within the RE:GEN Alliance, we can effectively pursue the Hyosung Way, making meaningful social contributions through eco-friendliness, social responsibility, and ethical management for all generations. We strive to create a dynamic and flexible synergy with our RE:GEN Alliance partners and provide various forms of support to nurture shared growth and coexistence in alignment with our core values, as well as practice ESG management. Now is the time for Hyosung and our RE:GEN Alliance partners to jointly address the diverse environmental and social challenges that lie before us, working towards a future that surpasses what any individual company can accomplish alone. Hyosung Group views the RE:GEN Alliance initiative as a transformative journey, forging a better tomorrow and Earth by fostering a partnership for the well-being of all generations.

RE:GEN Alliance, a partnership for all generations, for a better tomorrow.