HYOSUNG TNC

Influencers are setting the trend on social media with their respective personality and charm. What they do and wear gain attention and followers. Their influence is not confined to domestic audience but reaching out to global users via social medial, especially centering around the MZ generation. With all eyes on themselves, these influencers try out new clothing on a daily basis to differentiate, gain new followers and continue to create buzz. Their followers who admire and relate to them often follow suit the influencers’ pattern of consumption, further facilitating the cycle of fast fashion. The biggest issue of the fast fashion industry is its environmental impact. According to UNECE (UN Economic Commission for Europe), fashion industry as a whole account for 20 percent of water consumption and 10 percent of carbon dioxide emissions across different industries in the world. Its manufacturing process requires lots of resource input and emits greenhouse gas, a main culprit of climate change. Its distribution process also has a large carbon footprint across the world as clothes manufactured in countries with cheap labor travel around the world before they are purchased by end-users. Clothes never sold are either incinerated or end up in landfill. As such, fashion industry is now faced with a new challenge of fulfilling the need of the day, preservation of environment, while continues to put forth beautiful and unique clothes. With many celebrities voicing their concerns about the environment, the general public are increasingly awakened to the importance of the environmental issue. Global Web Index, a UK-based marketing company, released a report that 61 percent of the millennials are aware of the issue and willing to purchase ‘green products’ even if they are pricier than others. In other words, we now have a growing demographic of ‘eco consumers’ who make their consumption choices in consideration of environmental issues. The corporate world is also responding and it is not only fashion industry but also other industries that have been responsive. Hyosung is no exception. It has been working tirelessly to lead a sustainable fashion industry and develop eco-friendly materials. Hyosung TNC, for instance, has developed recycled textiles for polyester, nylon, and spandex for the first time in Korea. In so doing, Hyosung TNC has contributed to cutting down on plastic consumption in the clothing manufacturing process and promoting plastic recycling. Here are some of the company’s innovative products, a by-product of its continuous research and development endeavor. First recycled polyester yarn in Korea, regen Hyosung regen is the first product in Korea that applied a technology that recycles discarded PET bottles. Regen polyester contributes to reducing landfill volume and CO2 emissions. Based on its 15-year know-how and technology, Hyosung has created a recycled yarn that maintains the function and quality of virgin polyester. It has been working on materialistic and chemical recycling through its R&D efforts. As such, Hyosung TNC continues to offer green products, protect environments, and create a responsible consumption culture among consumers and corporates. World’s best recycled nylon yarn, regen Ocean Nylon Hyosung TNC has worked together with local fishing communities to separately discard waste fishing nets so that they can be easily recycled. Collaborating with venture companies working on sustainability, Hyosung TNC collects, shreds, and cleans waste fishing nets for pre-production process. After this, the fishing net waste are melted to separate raw materials to be recycled to regen Ocean Nylon, creating a virtuous cycle. regen® Jeju, a recycled yarn from used PET bottles in Jeju Hyosung TNC is committed to turning discarded PET bottles from Jeju into recycled yarns. To that end, the company has formed an MOU with the Jeju Special Self-governing province, Ministry of Environment and Jeju Province Development Corporation for a project of recycling PET bottle waste in Jeju into plastic bags. This should be a good example of positive influence by a private-public cooperation. Under this project, the Ministry of Environment and Jeju local government established the so-called ‘Clean House’ system of household waste collection facilities while Jeju Development Corporation collects discarded PET bottles. These PET bottle wastes are fed into Hyosung TNC’s manufacturing system to produce regen® Jeju, the 100% recycled yarn, which is then used for production of fashion items under the brand of Pleatsmama. A knit pleats bag produced by Pleastsmama out of this virtuous cycle uses 16 PET bottles of 500ml. regen Spandex made of recycled waste regen Spandex is 100% recycled spandex made of reclaimed waste, which is not only eco-friendly but also boasts excellent functions. Its global market share is over 30%, securing global number one name. Hyosung TNC has also been on a journey to develop various types of eco-friendly recycled yarns. After all, fashion is about reflecting who you are in a stylish manner. But fast fashion industry is blamed for its role in environmental degradation to speed up climate crisis. Realistically, it is almost impossible to put a stop to clothing manufacturing and purchase. This is where innovation in technology come in handy. With the innovative technology of recycling discarded PET bottles into a yarn while cutting down on carbon footprint of the whole fashion manufacturing process, we can move a step closer to addressing environmental issues caused by the fashion industry as a whole. Hyosung TNC is committed to taking the leadership in creating such a virtuous manufacturing cycle with its innovative technology, and to continuing its pursuit of a sound manufacturing industry going forward.

NFTs (non-fungible tokens), which use block chain technology to authenticate the ownership of digital assets like images and videos, are attracting significant attention with the expansion of the metaverse industry. This is because NFTs play a crucial role in the metaverse economy by securely protecting ownership through unique identifications assigned to digital products. The NFT market is particularly appealing to Generation Z, who are emerging as a primary target audience. As they enter the job market, Generation Z possesses increasing purchasing power and are known as ’digital natives’ who are well-versed in digital culture and enthusiastic about new experiences. With these characteristics, Generation Z readily adopts NFTs, using digital photo cards in fandom culture and engaging in games that feature NFT items, thereby driving the growth of the NFT market. In January, Hyosung Group captured public attention by hosting the ‘Hyosung TANSOME x Make Your Color’ concert, featuring renowned rock bands like No Brain and Lazybone, and introducing NFTs for ticket issuance and sales. Ticket holders were able to enter the concert venue through on-site NFT authentication and received limited edition brand album kits. Hyosung is actively engaged in youth marketing, including the launch of an NFT platform, to specifically target the younger generation. Youth marketing is a corporate strategy that aims to communicate with and meet the values and expectations of the younger generation, who represent the potential of the future customer base. Effective communication forms the basis of this marketing approach, as companies need to genuinely engage with the youth. Simply showcasing technical competencies or activities may not be enough to earn the loyalty and trust of Generation Z. Companies must actively listen to the voices of the youth, incorporate their insights into marketing strategies, develop technologies that align with their environmentally friendly values, and more. As part of their youth marketing initiatives, many companies are striving to build a brand image that resonate with the youth and are involved in various activities tailored to Generation Z’s interests and tastes, such as hosting online and offline events and developing relevant content. Hyosung’s Youth Marketing Project is for, of, and by Generation Z Hyosung Group is a leading player in various industrial sectors, including textiles, heavy industries/construction and industrial equipment. With a 56-year track record of delivering exceptional products and technologies, Hyosung has established strong presence in global markets. However, there is a lack of sufficient brand awareness regarding Hyosung’s products. While older generations in South Korea are familiar with Hyosung and its history, the overall visibility of the brand among younger South Koreans remains low. This is mainly due Hyosung’s identity as a B2B company that primarily engages in business-to-business transactions, rather than direct interactions with end-consumers. As a result, younger consumers rarely come across the Hyosung brand in their daily lives. To target Generation Z as potential future customers, Hyosung has implemented youth marketing activities. Generation Z is known for their heightened environmental awareness and their commitment to creating sustainable future. They embrace lifestyles aligned with veganism and actively seek out products from environmentally conscious companies, making them “greensumers.” Additionally, Generation Z prefers two-way communication, valuing direct expression of opinions over one-sided communication. Hyosung has tailored its marketing efforts to cater these communication preferences and address areas where they can provide practical support to Generation Z. 16th ASL Academic Festival – Exploring Hyosung’s Marketing from the Perspective of College Students The 16th ASL Academic Festival is one of the many youth marketing activities organized by Hyosung, specifically targeting college students. In collaboration with the Association of Strategic Leaders (ASL), this event was designed with three main objectives in mind. Firstly, it aims to assist college students in their job search, which is their primary concern. Secondly, it provides them with an opportunity to gain insights into how companies operate. Lastly, it serves as a platform to promote Hyosung Group to college students, who form an active segment of Generation Z. At this event, held in collaboration with ASL (a forum founded by the Hanyang Strategic Thinking Association (HSTA), Ewha Consulting (ECON), SKKU Society of Strategic Consulting (SSC)), participating students were tasked with developing marketing strategies to enhance Hyosung’s value-add and raise its brand recognition. The 62 students invited to the event were divided into nine teams and worked diligently to complete various assignments. These tasks included conducting an assessment of the Hyosung brand and developing a plan to improve its value among the MZ generation, creating a strategy to differentiate Hyosung’s business and promote the regen brand in alignment with the environment-friendly agenda, and enhancing the market competitiveness of Hyosung’s Harrington Place with its repositioning efforts. By selecting theses three topics, Hyosung addressed real-time world-marketing challenges it currently faces and sought solutions encouraging college students to generate creative and constructive ideas. This collaborative approach allowed Hyosung to tap into the fresh perspective of younger generations and gather valuable insights to enhance its marketing strategies. Hyosung oversaw the strategy development process, which involved studying tasks, an orientation period, sharing and presenting data, and Q&A session. The event provided college students with an opportunity to develop business strategies and gain insights into problem-solving in the workplace. The Hyosung staff served as mentors, offering practical suggestions to enhance the students’ strategies and providing them with valuable practical experience. The event was also valuable for Hyosung staff, as it allowed them to gain fresh insights. Brilliant ideas conceived by Generation Z that yielded practical benefits for Hyosung's marketing strategies The participating students at the festival expressed their appreciation for the opportunity to learn about Hyosung’s business values, technology development, ESG management and global market position. They were delighted to experience Hyosung’s dedication to the environment and its corporate efforts to make a positive impact. Furthermore, the college students showcased their original thinking abilities and generated brilliant, logical, and feasible ideas. They were adept presenters and witnessed remarkable growth in their skills during short month. On the other hand, the Hyosung staff had chance to gain insights into Generation Z’s perspective of the company. They valued this time to listen to the students’ opinions and engage in branding activities that align with Generation Z’s standards. Overall, it was a valuable and mutually beneficial experience for both the students and the Hyosung staff. Drawing from the insights gained this academic festival, Hyosung intends to establish a platform for open communication with Generation Z. This platform may encompass various initiatives, including similar academic festivals and other forms of content. By utilizing this platform, Hyosung aims to actively listen to the voices of Generation Z and reflect on the type of company they aspire to associate with a and work for. Furthermore, Hyosung will analyze internal challenges and engage in external youth marketing activities to become the ideal company admired by Generation Z. One participant shared their perspective on the festival stating, “Getting information about Hyosung was challenging as it is primarily seen as a B2B company. However, this project provided valuable insights into the various activities and initiatives undertaken by Hyosung in different domains. It helped me understand Hyosung’s focus on targeting Generation Z through youth marketing, and I will continue to show interest in Hyosung’s business.” Another participant emphasized the significance of communication in brand strategy and marketing, saying, “I strongly believe in the importance of communication, and this project reinforced that belief. The exchange of feedback and opinions highlighted the critical role of active idea sharing and feedback in perfecting business strategies in the real world.” Hyosung Group recognized the value of the feedback and opinions shared by the participants, who are Generation Z members with significant potential and influence. To honor their input, Hyosung plans to incorporate the outcomes of the 16th ASL Academic Festival into marketing strategy to enhance brand recognition. The company intends to integrate the ESG strategies and creora® marketing strategies proposed by the participants into its business operations, using them as case studies for a brand marketing campaign. These valuable contributions will serve as preliminary reference materials in the development of ideas and the creation of an environment-friendly brand narrative for Hyosung's strategies within an eco-conscious ecosystem. Additionally, the ideas generated through this festival will be thoughtfully considered and reflected upon as the company formulates its new branding strategy. Expanded digital marketing for steady communication with the future generation Moving forward, Hyosung aims to enhance its digital content marketing to engage in meaningful communication with Generation Z. Recognizing their interest in companies that prioritize environmental protection, Hyosung plans to create content highlighting its environmental technologies and initiatives. Additionally, the company will organize offline events such as environment-themed concerts and academic festivals, offering opportunities for Generation Z, to actively participate. Hyosung understands the importance of personal development, self-realization, personalized experiences, job prospects, and value-driven consumption for this generation. Therefore, the company will continue to provide platforms for Generation Z to gain practical knowledge through direct involvement and participation.

The global spandex market leader Hyosung TNC has rolled out a variety of textile materials that are “world’s first feats” and “innovative”. Endowed with superior technology, quality and services, the company is leading the global textile market and continues to grow by constantly developing new products and exploring new markets, without resting on its laurels. Notably, the company strives to raise customer confidence and realize customer value by offering customer-centric and differentiated services based on quality and customer-centric management. It is also hard at work creating a virtuous cycle of sustainable renewable textile manufacturing by researching and developing eco-friendly textile materials, propelled by a sense of mission to ensure customer satisfaction and preserve the environment for future generations. As a result, Hyosung TNC has created the world’s first eco-friendly nylon yarn recycled from waste fishing nets, and commercialized the world’s first bio spandex. As a global spandex market leader, it is also the world’s first developer of eco-friendly catalysts necessary for manufacturing polyester textile and Korea’s first to develop nylon material for the inner-liner of fuel tanks used in hydrogen-fueled vehicles. Hyosung TNC has the most number of titles such as “world’s leading or first”. How has the company succeeded in being a global textile market leader? Here are the seven reasons. ① Integrated Textile Company A global textile maker with a wide spectrum of products including high-performance and eco-friendly yards Hyosung TNC is an integrated textile company that consists of three types of chemical fiber yarns, spandex, nylon, and polyester. To meet fast-changing customer needs, it constantly develops and ensures a stable supply of a broad portfolio of products including nylon, polyester and spandex, thereby maximizing customer confidence and satisfaction. As such, the company produces functionally optimized yarns including functional yarn that quickly absorbs and dries sweat and also protects the skin from UV exposure, in addition to sweat odor-reducing yarn, cooling yarn, 99.9% UV-blocking yarn and anti-bacterial yarn. Through these products, various eco-friendly, functional yarns create high added value to the customer as a global integrated textile maker. ② Strong Brand Awareness From global fashion brands to high-performance automobiles Lifestyle yarn “CREORA” is the leading global spandex yarn brand with the largest market share, and the unrivaled integrated yarn brand in South Korea that combines nylon and polyester. The global market-leading spandex that is used in the production of one-third of all stretchy garments worldwide has globally strong brand awareness. The eco-friendly brand “regen” offers sustainable yarns including polyester, nylon and spandex made of recycled waste, along with regen Bio-Based Spandex. regen is closely aligned with multiple global fashion and automobile brands that pursue the value of sustainability and is used in a wide variety of fields, elevating its profile as a global eco-friendly brand. ③ Value Chain Partnership Creating new values through shared growth with various partners and corporate clients Hyosung TNC does more than supply yarns to fashion brands, while it creates new values by building a value chain across the entire fashion industry. It not only works with major global brands to raise market awareness of eco-friendly materials for sustainable growth, but also helps small and medium-sized corporate clients grow their business by penetrating overseas markets and capitalizing on its global network to achieve shared growth. It has organized various programs including online trend expos and seminars to help small and medium-sized corporate clients find overseas buyers as they face headwinds from overseas expos being canceled due to the pandemic. Also, it is working with small fabric and sewing companies to help them expand their business globally. Moreover, Hyosung TNC recommends trends that can best fit each client, and makes customized proposals on development of new fabrics. It then introduces fabrics developed by its partners to major global brands, while constantly seeking to innovate in a bid to grow with its business partners and clients. ④ Fashion Design Center Hyosung TNC presents innovative ideas based on customers’ needs and trends. Hyosung TNC opened its “Fashion Design Center (FDC)”, an in-house R&D center to develop and roll out new products and innovative ideas, based on customer needs of materials and fast-changing fashion industry trends. The company also proposes trends in new materials with a focus on functional and eco-friendly innovative yarns, and promotes these trends on and offline to support the growth of other brands to secure market leadership in both the textile and fashion industries. ⑤ Continuous Innovation Innovation, the core value of Hyosung TNC that drives the company to establish multiple first-ever feats in the industry Owing to developing and producing countless innovative products, Hyosung TNC continues to be committed to R&D investments to continue creating new opportunities and satisfying the needs of consumers and the industry because innovation is never achieved overnight. It requires constant research and dedication over a long period of time. Hyosung TNC is fully aware that all these efforts add up to innovation. The R&D center is at the core of Hyosung’s portfolio that boasts so many “first-ever feats” in the industry, and it is the driving force behind building an innovative future for itself and consumers. ⑥ Brand/Retailer Collaboration Hyosung TNC is involved in active cooperation and creation of synergy effects to practice the value of “togetherness” Hyosung TNC is working closely with multiple brands, retailers and local governments. Particularly, it has been striving to enhance its corporate profile by pursuing active cooperation with global fashion brands, based on a variety of functional yarns. Recently, the company has successfully carried out a recycling project in which used plastic bottles were collected in Seoul and Jeju City and recycled into fabrics named “regen Seoul” and “regen Jeju”, respectively. Hyosung TNC is implementing cooperation projects with different brands based on eco-friendly yarns. As a result, many more global brands, local governments, corporations and non-profit organizations have offered proposals to work with the company. It is striving to relay the value of “togetherness” to consumers as a leader of eco-friendly fashion trends to create new values by working with other brands. ⑦ Global Network Leader Making strides to deliver ‘world’s first achievements’ and a leading global textile brand to reinvent itself as a “lifestyle facilitator” Hyosung TNC continues to secure its growth momentum in the global market by making investments in expanding its production capacity, and marketing and service areas worldwide. It is operating production centers, subsidiaries and branches in various global locations including the U.S., Germany, Spain, Italy, Brazil, Mexico, Japan, China, Taiwan and Vietnam. We have identified the seven key factors for Hyosung TNC to emerge as the industry leader in the highly competitive global textile market. Hyosung will not rest on its laurels with milestones of being the world’s first and leading brand in its market segments. Instead, it strives to bring greater satisfaction to customers and create more added values for them. Beyond building a global textile brand, Hyosung is determined to make innovations for the planet, and become a lifestyle facilitator that can benefit both humans and nature. For future generations and a healthy planet where people and nature can coexist, Hyosung TNC will continue to advance its track record of developing better technologies and responding to the demand and needs of future generations.

"Within the company, we utilize tumblers instead of paper cups. Employing tumblers is one of the most effortless methods to enact a zero-waste lifestyle." At Hyosung TNC, paper cups are nowhere to be found. This is due to their ongoing 'Eliminate Disposable Cups in the Workplace' campaign, aimed at reducing single-use items in daily life. In order to encourage participation in this campaign, employees have been provided with funds to purchase personal tumblers, and disposable items such as paper cups in break rooms have been eliminated. Initiated in May 2021, the campaign continues to this day. Approximately 190,000 paper cups were used in Hyosung TNC offices during 2020, which equates to an annual emission of roughly 2 tons of carbon dioxide. The collective efforts of individuals willing to endure minor inconveniences can result in a staggering reduction of 2 tons of carbon dioxide emissions – is that not truly remarkable? We gathered firsthand impressions from three employees actively participating in eco-friendly campaigns at a company that vigorously promotes environmentally conscious workplace culture. Q. What were your initial thoughts upon hearing about the 'Eliminate Disposable Cups in the Workplace' campaign? Employee A(): I was intrigued by the prospect of directly participating in 'ESG activities', which have been a rising issue. Although ESG activities are a global direction, I thought they had little direct relevance to my everyday life. However, through the in-house campaign, I found it fascinating that I could naturally contribute to ESG activities in my daily life and closely experience ESG endeavors. Employee B(): I knew that ESG activities were beneficial for the environment, but I didn't think there would be any direct benefits for me. Protecting the environment inevitably entails some inconvenience for people. But by using a tumbler instead of paper cups, I was able to gain financial benefits. The company could reduce the cost of purchasing disposable cups, and I could receive discounts at cafes by using a tumbler. I thought it was a good campaign since it reduced disposable cup expenses while directly contributing to environmental protection. Q. Were there any concerns among employees when they first heard about the campaign? Employee A(): When I first learned of the company's plans for the campaign, several concerns came to mind. The main reason we had failed to reduce the use of disposable items was the need to accept personal inconveniences. To carry out the campaign, we had to allocate sometime during work to wash cups and prepare mugs for client visits. Although seemingly trivial, changing our daily routines required us to develop a sense of purpose and adjust our mindset for participating in the campaign. Considering the negative impact of disposable items and the environmental benefits of using tumblers and mugs, I eventually decided to practice it. Q. What is the most significant change you've noticed since implementing the 'Eliminate Disposable Cups in the Workplace' campaign? Employee C(): Naturally, the amount of waste from disposable items has decreased considerably. In the past, I used 2-3 paper cups daily, but since the campaign, I've consciously avoided not only paper cups but also other disposable items. I initially thought of it as a small habit-changing campaign, but it seems to have gradually altered my environmental awareness. Q. If your environmental consciousness has changed, do you also practice this outside of work? Employee B(): I use a tumbler when I go to the gym for exercise, and I actively try to use a tumbler when visiting cafes outside of work. Some cafes even offer discounts when using a tumbler. In such cases, I feel proud to contribute to environmental protection while enjoying the added benefit of a coffee discount. Employee C(): Since becoming more aware of disposable items, I realized I use many of them when ordering delivery food. So, when I order food at home, I indicate 'no need for disposable items' in the request section. Washing dishes after eating may be a bit bothersome, but considering the impact these habits have on the environment, I'm happy to practice them willingly. Q. Your participation in the in-house campaign has contributed to reducing annual greenhouse gas emissions by 2 tons. You must be very proud. How do you feel about this achievement? Employee A(): Although it may seem like a small practice, it was even more meaningful that we could easily contribute to preventing environmental destruction just by participating. Before the campaign, I was well aware of the seriousness of environmental destruction through articles and documentaries addressing issues like the Amazon rainforest deforestation and the risk of polar bear extinction. However, I didn't actually practice environmental protection for reasons like lack of awareness or inconvenience. But with the company's active encouragement to use tumblers, a simple action, I was very proud to contribute to reducing greenhouse gas emissions. I also found it rewarding that small practices from my colleagues came together to achieve such significant results. Employee B(): The activity I started for participating in the campaign has now become my habit. I used to find washing tumblers bothersome, and carrying them around inconvenient, sometimes forgetting them, but now I always carry one when I go out. In addition to tumblers, I started using reusable items like hand towels instead of disposable ones. Practicing these habits, I feel like I have become more diligent than before. I am very proud to have recognized the necessity of environmental protection through the in-house campaign and to practice it even outside the company. Q. What other eco-friendly campaigns can be carried out in the workplace? Employee C(): I think implementing a 'Reuse One-sided Paper Campaign' would be beneficial. There is a lot of paper used only once and then discarded in office life, which feels wasteful. Actively encouraging the use of the blank side of printed pages could help protect the environment. Additionally, starting with small actions like unplugging unused power cords or using stairs for short-distance travel within the building could lead everyone to practice them, just like the 'Eliminate Disposable Cups in the Workplace' campaign. In addition to these efforts, Hyosung TNC has expanded the 'regen® Upcycling Campaign' to its business locations nationwide this year. The 'regen® Upcycling Campaign' is a PET bottle collection campaign where employees bring PET bottles, which are then exchanged for goods and bags made from Hyosung TNC's recycled polyester fiber, regen Polyester. Last year, about 9,000 PET bottles were collected, and this year's goal is to collect 15,000. The carbon reduction effect of this campaign is similar to the amount of carbon dioxide absorbed by approximately 70 pine trees in a year. There is a theory called the 'butterfly effect,' which states that a small flap of a butterfly's wings can cause a typhoon on the other side of the earth. Although it is currently a campaign limited to Hyosung TNC employees, their small efforts, when combined, can someday instill a belief in eco-friendliness among all members of every company. As this culture becomes established, wouldn't it lead to all people around the world actively practicing environmental protection? Today, as they dream of an eco-friendly future, Hyosung TNC employees continue to participate in eco-friendly campaigns.

Mankind and nature have always coexisted. Nature has always been an integral part of human existence and humans have been a part of nature’s history. Because mankind cannot exist without nature, mankind must find a way to coexist and prosper with nature. In order to create a natural environment where sustainability is guaranteed, the ability of individuals, enterprises and the world to coexist, the value of ‘togetherness’ is now more important than ever before. Many people around the world today are working feverishly to combat climate change on multiple fronts. All these human efforts are being made for the sake of one goal: ‘the coexistence of mankind and nature’. This goal is the very definition and objective of ‘living well together by helping each other’. There is a company that practices this value of ‘togetherness’, the very meaning of coexistence. That company is Hyosung TNC! According to the UN, the fashion industry is responsible for about 8-10% of CO2 emissions, the main cause of climate change. Hyosung TNC, which manufactures textile yarns for the fashion industry, is the world’s top maker of spandex. As a responsible member of the industry, the company has been introducing many types of eco-friendly products over the years with the hope of contributing to the mitigation of the climate change crisis. The brand that symbolizes the company’s efforts in this regard is regen®, a recycled yarn brand. To produce and supply regen®, Hyosung is collaborating with a slew of fashion companies and organizations and creating the value of mutual growth. regen® is not the only example of the sustainability drive being pursued by Hyosung TNC. Hyosung TNC is ceaselessly researching new ways of reducing carbon emissions throughout the lifecycle of its products. Today, we at Hyosung TNC intend to fully disclose the details of our environmental activities. Transition to environmentally-friendly fuels Hyosung TNC’s factories were able to reduce their greenhouse gas emissions significantly after switching to low carbon energy sources. The factories receive waste heat (a renewable energy source) from nearby household waste incineration centers, after which biogas generated by the anaerobic digestion tank of the wastewater treatment plant is fed into the boilers. The company’s Gumi factory has reduced its greenhouse gas emissions by replacing B-C oil with LNG and LPG gas. Until recently, B-C oil was widely used in the manufacturing sector because it was cheap and had high energy efficiency, but it was blamed for polluting the environment because it produced diverse pollutants including soot. Therefore, the Gumi factory gradually increased the substitution of B-C oil, the source of so many pollutants, and reached a milestone in November 2019 when it stopped using it completely. Hyosung TNC is paving the way forward as a global leader that considers the value of the environment, rather than as one that thinks only about minimizing costs to boost efficiencies. 1) Reducing GHG emissions through improved processes and the construction of a smart energy platform The environmental investment plan for each factory is the one thing that Hyosung TNC never forgets to prepare every year. The company is dedicated to reducing carbon emissions through energy savings that are concretized in the yearly environment investment plans. Every year, Hyosung implements the environment investment plan thoroughly and strictly according to the schedules set forth in the plan. Manufacturing processes are improved to cut down on energy usage rates, while equipment like motors, freezers and air compressors are replaced with high efficiency ones. In addition, in 2020, Hyosung TNC’s Daegu factory participated in the ‘Seongseo Industrial Complex Smart Energy Platform Construction Project’ launched by the Korea Industrial Complex Corporation. In this project, twenty instruments were installed in facilities that consume large amounts of electricity, and a Factory Energy Management System (FEMS) was set up in the factory. The FEMS is a system that enables energy to be used effectively in a factory thanks to the application of information communication technologies and computing software. It analyzes how much energy is used by a particular facility, forecasts the level of energy demand, and calculates the appropriate energy usage rate and costs. With the deployment of the FEMS, Hyosung TNC is able to operate its facilities more efficiently because it can determine in real time where and when energy is used and then make adjustments to the amount of energy to be supplied. 2) Building a GHG inventory at global factories Depending on the nature and scope of emission rates, greenhouse gas emissions can be classified into Scope 1 (direct emissions), Scope 2 (indirect emissions), or Scope 3 (other emissions). Hyosung TNC not only monitors and manages the scope 1 greenhouse gases directly emitted by its factories, but also manages indirectly emitted scope 2 greenhouse gases. To build an inventory of greenhouse gases at its global factories, and not just its factories in South Korea, the company calculates scope 1 and scope 2 emission rates at the factories run by its subsidiaries in China (Hyosung Spandex Jiaxing Co. Ltd.), Republic of Türkiye (Hyosung Istanbul Tekstil Ltd.), and Vietnam (Hyosung Dong Nai Ltd.). In the case of its domestic factories, Hyosung TNC even calculates its scope 3 emission rates (i.e. emissions across the entire value chain) voluntarily and reports the data to the Carbon Disclosure Project (CDP). With the aim of building greenhouse gas inventories and controlling the emission rates of all its global factories, the company is planning to gradually introduce the calculation of scope 3 emission rates to its other factories. By managing indirect emission rates and emission rates at its overseas subsidiaries, Hyosung TNC is working hard to reduce greenhouse gas emissions. 3) Gradual transition to environmentally-friendly businesses As mentioned earlier, Hyosung TNC is a global fabric producer that supplies, in close collaboration with global fashion brands, environmentally-friendly yarns made from recycled materials which are sold under the brand name regen®. Through ceaseless research and development activities, the company is also introducing an entire product lineup that will expand the functionalities of regen®-based products. For example, it supplies recycled yarn made from post-consumer waste materials (waste materials discarded by end consumers) such as PET bottles and used fishing nets, and pre-consumer waste materials (waste materials generated before a product reaches the consumer), with the latter being a by-product of the manufacturing process. Recycled yarns not only help to reduce the amount of waste buried in landfills, but also lower the use of petroleum resources during the production of normal yarns, which in turn naturally aids the environment because lower petroleum resource usage means lower carbon dioxide emissions and energy usage. Hyosung TNC is also leading the pro-environmental movement of the industry by manufacturing bio-based products, which require less water and generate less carbon than conventional yarns and are made from non-edible ingredients. 4) Spreading a pro-environment culture within the company In 2021, Hyosung TNC’s main office in Mapo-gu launched a campaign to reduce the use of disposable products that are indiscriminately used and thrown away in the office. This campaign involved the participation of all executives and employees working at the main office. Today, employees use their own personal tumblers (slightly less handy but longer lasting) rather than the disposable paper cups. By using personal tumblers as a substitute for easy-to-discard paper cups, the company anticipates that this will translate into a greenhouse gas emission rate reduction of around two tons per year, while costs can be saved for roughly 190,000 paper cups that were used in the main office each year. Another notable campaign is the ‘Internal campaign to reuse regen’ launched in 2022. For this campaign, which is now in its second year of operation, special bins have been installed in the company’s main office building in Mapo-gu to collect discarded PET bottles, which are then recycled and used as a material for making environment-friendly fashion items for distributing to employees. The PET bottles discarded in the office are also collected and recycled as Hyosung TNC’s environmentally-friendly regen® polyester yarn, which is used to make bags and t-shirts for the employees. In 2022, 8,831 PET bottles were collected - an effect equivalent to 37 pine trees absorbing carbon dioxide for thirty years. The campaign is continuously improving the brand awareness of regen®, the company’s flagship environmental brand, as well as cultivating a positive mindset among employees regarding their personal participation in the recycling of resources. Hyosung TNC also organizes an annual ideas contest with the aim of finding novel ways to reduce energy consumption and greenhouse gas emissions, in the hopes that increased awareness of the issue among employees could lead to deeper cuts in the company’s carbon dioxide emission rates. This ideas contest has produced some tangible results. For example, Hyosung TNC’s Nylon Polymerization Team at the Ulsan factory proposed the innovative idea of raising the production density of thickeners in the recovery process to reduce the use of energy. If this idea is realized, greenhouse gas emissions could be reduced by up to 8 tons in a single year, which is a big motivator for Hyosung TNC to review this idea in earnest. We live in an era of rapidly changing times and trends which inevitably lead to the production of huge amounts of disposable items, trash, and fast fashion (SPA). The resulting pollution poses a threat to the health not only of everyone now living on Earth but also to future generations of mankind. As if the pollution of land is not enough, the plastic waste that seeps into the oceans is creating huge offshore islands, and as the plastic exposed to sunlight cools, it discharges greenhouse gases. These greenhouse gases then reflect the sunlight back to the surface of the earth, making our world even hotter. After floating on the seas for a long time, waste materials eventually disintegrate into tiny pieces, which are then eaten by sea creatures who mistake them for food, with often disastrous consequences. Ultimately, these waste materials pass through the food chain and end up in the bodies of humans. This is a major problem that cannot be resolved through the efforts of one person or one organization alone. The problem requires the interest of the wider international community and commitment and efforts from all of us. This is why Hyosung TNC, as the world’s top producer of spandex, seeks to play an active role in tackling the problem with a sense of responsibility. In tune with its reputation as a global top player, Hyosung TNC will design a sustainable future for all generations based on its environment-oriented business, so that everyone can welcome a future in which they can live safely in a clean environment. At every moment, Hyosung TNC considers sustainable progress for all generations, present and future. Indeed, the choices we make as a business will always place “togetherness” in our pursuit of valuable customers like you who yearn for a brighter future.