Hyosung Chemical Co., Ltd.
Climate Impact & Sustainability Data (2021, 2023)
Reporting Period: 2021
Environmental Metrics
Total Carbon Emissions:33,367.08 tCO2eq/year (2021)
Scope 1 Emissions:9,766.12 tCO2eq/year (2021)
Scope 2 Emissions:23,600.96 tCO2eq/year (2021)
Total Energy Consumption:686.12 TJ/year (2021)
Water Consumption:547,206 tons/year (2021)
Waste Generated:1,957.7 tons/year (2021)
Carbon Intensity:0.032 tCO2eq/KRW 1 million (2021)
ESG Focus Areas
- Climate Change
- Eco-friendly Products and Technologies
- Health and Safety
- Supply Chain Management
- Customer Satisfaction
- Corporate Social Responsibility
- Governance
- Ethical Management
- Human Rights
- Talent Recruiting and Training
- Research and Development
- Information Security
Environmental Achievements
- Hyosung reduced energy and GHG emissions by 4.9% compared to 2018.
- Hyosung TNC acquired Leadership A- grade in CDP Climate Change.
- Hyosung Chemical obtained Recycled Claim Standard (RCS) for industrial films and optical films.
- Hyosung TNC's 'regen ocean' product received Ocean Bound Plastic (OBP) certification.
Social Achievements
- Hyosung achieved a 100% return rate after parental leave for three consecutive years.
- Hyosung's CSR activities were officially recognized for three consecutive years by ‘CSR in the Community’.
- Hyosung TNC supported 110 single-mother households in Vietnam in building financial independence.
Governance Achievements
- Hyosung Corporation received outstanding results in its ESG evaluations.
- Hyosung established the ESG Management Committee under the BOD and the ESG Management Promotion Committee under the CEO.
Climate Goals & Targets
Long-term Goals:
- Net zero emissions by 2050
Medium-term Goals:
- Achieve 14.5% GHG emission reduction by 2030 compared to 2018 emissions.
Short-term Goals:
- Reduce water consumption by 5.7% from original target (achieved in 2021)
Environmental Challenges
- Global supply chain disruptions
- Increased raw material prices
- Spread of COVID-19 variants
- Climate change risks (transition and physical risks)
- Microplastic pollution
- Supply chain risks (raw material supply, product continuity, disasters, safety, environmental regulations, security, legal/ethical issues, orders, general management)
- Increased demand for eco-friendly products
Mitigation Strategies
- Carbon management system implementation
- CDP participation
- Internal carbon pricing
- Risk management process
- Insurance for natural disasters
- Facility inspections and waterproofing
- GHG emissions reduction through process improvement
- Eco-friendly fuel transition
- Smart energy platform for energy efficiency management
- Eco-friendly steel products and chemical materials trade expansion
- Recycled and eco-friendly textile product lineup
- Development of eco-friendly materials (bio-based spandex, Creora regen, regen)
- Investment in eco-friendly R&D
- Supporting eco-friendly start-ups
- Waste fishing net recycling technology
- High early-strength concrete and detachable decks in construction
- Green building certifications
- Eco-friendly landscapes (biotopes)
- Energy Partnership MOU with the Korea Energy Agency
- Consulting services for energy diagnosis
- Photovoltaic power facilities
- Waste heat recovery system improvement
- Eco-friendly dip solution development
- Recycled PET yarn development
- Lyocell tirecord development
- Bio-PET product launch
- Transition to sustainable materials
- Polyketone product development and application expansion
- Post-Consumer Recycled (PCR) technologies and products development
- Creation of a hydrogen ecosystem
- Eco-friendly water treatment systems development and commercialization
- Shared growth promotion system for mutual growth with business partners
- Fair trade guidelines
- Price indexation system
- Supply continuity emergency scenarios and response manual
- 4A+1A process for VOC activities
- C-Cube activities
- Online communication channels
- Technical Marketing (TM) Team
- Participation in exhibitions
- Family-friendly management system
- Flexible working arrangements
- Refresh Day and designated holiday system
- Retirement support system
- Maternity protection policy
- Workplace daycare centers
- Information security system
- Double authentication
- Cooperation with The Korean Association for Industrial Technology Security
- Human rights policies and principles
- Human rights impact assessment
- Reporting channel
- Human rights training
- Dual-track job training system
- Onboarding program
- On-the-job training (OJT) program
- Remote education system
- Micro Learning and Metaverse platforms
- Sustainability training
- Global Management Course (GMC)
- Insight Forum
- Training program for new team leaders
- Team leader training program
Supply Chain Management
Responsible Procurement
- Shared growth agreements
- Energy-saving diagnosis and consulting
- ESG education and guidebooks
- Win-win Payment System
- Cash payment for goods received
- Code of Conduct for Hyosung Business Partners
- Fair Trade Compliance Program
- Standard Subcontracting Contract
- Price indexation system
- Supplier evaluation
Climate-Related Risks & Opportunities
Physical Risks
- Typhoons
- Floods
- Droughts
Transition Risks
- Market and technological changes
- Transition to a low-carbon economy
- Regulatory changes
Opportunities
- Development of energy-efficient products
- Hydrogen economy
- Renewable energy businesses
Reporting Standards
Frameworks Used: GRI Standards, SASB, TCFD, EcoVadis, ISO 26000, UN SDGs
Certifications: ISO 14001, ISO 45001, GRS, RCS, Ocean Bound Plastic (OBP), OEKO-TEX ® Standard 100, FSSC 22000, IATF 16949, AS9100D, KOLAS
Third-party Assurance: KFQ (Korean Foundation for Quality)
Sustainable Products & Innovation
- regen
- MIPAN regen
- Creora regen
- Bio-based spandex
- Polyketone
- Recycled PET yarn
- Lyocell tirecord
- Bio-PET
- Eco-friendly gas insulation system (GIS)
- Dry Air-Insulated Switchgear (DAIS)
Awards & Recognition
- CDP Climate Change Korea Awards (Hyosung TNC)
- Carbon Management Special Award (Hyosung TNC)
- Patriotic Culture Award (Hyosung)
- CSR in the Community awards (Hyosung)
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:867346.35 tCO2e/year
Scope 1 Emissions:319258.155 tCO2e/year
Scope 2 Emissions:548088.196 tCO2e/year
Scope 3 Emissions:1976677.66 tCO2e/year
Renewable Energy Share:0.01%
Total Energy Consumption:1917644.41 MWh/year
Water Consumption:7244.43 ML/year
Waste Generated:Not disclosed
Carbon Intensity:4.311e-7 tCO2e/KRW
ESG Focus Areas
- Climate Change
- Water Security
Environmental Achievements
- Reduced greenhouse gas emissions by 1397 tCO2e compared to the previous year due to various reduction activities.
- Invested 663 million KRW in greenhouse gas reduction activities, resulting in an estimated decrease of 1,927 tons of CO2 equivalent per year in greenhouse gas emissions and a reduction of 40.3 TJ per year in energy consumption.
- Sold 5,280 tons of remaining carbon credits, generating revenue of approximately 46 million KRW.
Social Achievements
- Not disclosed
Governance Achievements
- Established an ESG management promotion committee headed by the CEO.
- Expanded and restructured the EHS Committee, integrating it with the CSR Committee, to form the ESG Management Promotion Committee.
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Achieve a 14.5% reduction in greenhouse gas emissions by 2030 compared to 2018 levels.
Short-term Goals:
- Not disclosed
Environmental Challenges
- Increased direct costs due to carbon pricing mechanisms (Korea ETS).
- Risk of fines, penalties, or enforcement orders for water-related regulatory violations.
- Risk of product damage due to extreme weather events (heavy rains and typhoons).
- Increased partner and stakeholder concern or negative feedback due to increasing ESG-related requests from clients.
Mitigation Strategies
- Invested 680.9 million KRW in response to climate change risks, including greenhouse gas reduction activities and third-party verification of emissions reporting.
- Invested 273 million KRW to comply with water-related environmental regulations (emission facilities, TMS maintenance, and facility upkeep).
- Invested 217.2 million KRW in preparing for extreme weather, including office building repairs and drainage improvements.
- Actively engages with customers to address ESG concerns and improve supplier evaluation scores.
Supply Chain Management
Supplier Audits: 47/759 (6.19%)
Responsible Procurement
- Code of Conduct for Partners
Climate-Related Risks & Opportunities
Physical Risks
- Extreme weather events (heavy rains and typhoons)
Transition Risks
- Carbon pricing mechanisms (Korea ETS)
Opportunities
- Sale of surplus carbon credits
- Increased sales of low-carbon products (Polyketone)
Reporting Standards
Frameworks Used: GRI Standards, TCFD
Certifications: Null
Third-party Assurance: Econine Co., Ltd.
UN Sustainable Development Goals
- Goal 7 (Affordable and clean energy)
- Goal 6 (Clean water and sanitation)
- Goal 13 (Climate action)
Initiatives contribute to these goals through greenhouse gas emission reductions, water efficiency improvements, and sustainable product development.
Sustainable Products & Innovation
- Polyketone
Awards & Recognition
- A grade from KCGS, A- in CDP Climate Change category, Silver rating from EcoVadis