Climate Change Data

Environmental Metrics

ESG Focus Areas

• Innovating Construction Quality
• Industrial Safety and Health
• Securing Key Talents and Developing Competencies
• Management Based on Principles of Integrity (Ethics, Compliance)
• Development and Investment in Eco-friendly Technologies
• Governance Soundness and Transparency

Environmental Achievements

• Construction waste recycling rate: 88.5%
• General waste recycling rate at construction sites: 99.1%
• Number of fines for violating environmental laws: 0
• Green product purchasing rate: 21.1%
• GHG emissions: 22,992 tCO2eq (Intensity: 0.70 tCO2eq/KRW 100 million)
• Energy consumption: 461 TJ (Intensity: 0.014 TJ/KRW 100 million)
• Number of eco-friendly certified buildings: 13
• Rate of eco-friendly certified buildings: 100%
• Rate of eco-friendly sales: 62.8%

Social Achievements

• Number of operations of the workers’ right to stop working: 918
• Number of on-site safety inspections: 256
• Number of HDC SAFETY-I ACADEMY trainees: 1,178
• Fatality rate per 10,000 workers among employees and suppliers: 4.78
• Accident rate among employees and suppliers: 0.56
• Amount of social contribution donations: KRW 3.9 billion
• Number of households that benefitted from social contributions: 1,079
• Number of employees who participated in social contribution activities: 284
• Number of new and experienced hires: 167
• Conversion rate from contract workers to full-time workers: 21.4 %
• Number of participants in training per year: 10,823
• Level of satisfaction with trainings: 4.72

Governance Achievements

• Enactment of the corporate governance charter
• Appointment of a CSO and establishment of a new organization
• Number of board capacity-building training sessions: 4
• Number of Safety and Health Committee meetings held within the BOD: 2
• Establishment of the A1 (Hwajeong IPARK rebuilding) implementation team

Climate Goals & Targets

Environmental Challenges

• Rising raw material prices due to global instability
• Increased volatility in the financial market
• Stagnation in the real estate market
• Climate change risks (reinforced environmental regulations, increased demand for eco-friendly materials, potential supply and demand problems, increased demand for eco-friendly building technology, safety risks for employees, reduced work efficiency, costs incurred for facility damage recovery, and costs incurred for handling product defects)
• Safety risks at construction sites
• Compliance risks
• Liquidity risks
• Contingent liabilities

Mitigation Strategies

• Strengthened safety management through the appointment of a CSO
• Contingent liabilities management
• Orders based on close business feasibility review
• Flexible supply management
• Managing non-financial risks such as climate change, safety and health, compliance, and supply chains
• Fundamental process innovation
• Establishment of a field discipline prevention system
• Application of quality assuring real-name system to all sites
• Improving the subcontracting system
• Providing customer-centered products and services
• Developing eco-friendly products and technologies
• Applying renewable energy technologies such as fuel cells and geothermal systems to buildings
• Establishing a transparent governance structure
• Reinforcing integrated risk management system
• Developing the social contribution system

Supply Chain Management

Supplier Audits: 87.5% of 400 suppliers

Responsible Procurement

• Code of conduct
• Supplier sustainability requirements
• Win-win growth agreements (79.9% of suppliers)

Climate-Related Risks & Opportunities

Physical Risks

• Damage caused by natural disasters (floods, typhoons, droughts)
• Damage caused by abnormal weather (heat waves, cold waves)

Transition Risks

• Reinforced domestic and overseas environmental regulations
• Systematization of environmental information disclosure requirements
• Increase in demand for eco-friendly materials, products and equipment
• Increase in the cost of eco-friendly materials, products and equipment
• Increased demand for the development of eco-friendly building technology
• Increased demand from stakeholders to disclose environmental information

Opportunities

• Increase in demand for eco-friendly technology and buildings
• Increase in demand for eco-friendly building technology development
• Increase in eco-friendly investments
• Reduced operating costs due to high-efficiency energy buildings
• Expansion of the eco-friendly technology market
• Securing company competitiveness through new technology development

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, TCFD

Certifications: ISO 14001

Third-party Assurance: BSI

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Zero-energy buildings
• BIPV photovoltaic louver windows
• Clean air system in each room
• Semi-dry floor system
• Pest control doors
• Dry bathroom system

Awards & Recognition

• Grand Prize for Living Infrastructure Sector for Residential Services
• Commendation for Green Management
• Grand Prize at the 26th Daegu City Landscape Award
• Acquired “Excellent” grade in the shared growth index evaluation
• Commendation for Creating an Excellent Construction Culture
• Korea Luxury Housing Grand Prize
• Grand Prize at the 2023 Korea Residential Service Awards
• Best Smart Home Award
• Grand Prize at the 2023 Social Contribution Enterprise Award, ESG Support for the Underprivileged
• Grand Prize at the 17th Asian Economic Apartment Brand Awards for Social Contribution
• Win-Win Management Appreciation Award

Environmental Metrics

ESG Focus Areas

• Climate Change Response
• Environmental Management
• Safety and Health Management
• Sustainable Supply Chain
• Talent Management
• Human Rights Management
• Social Contributions
• Information Security
• Transparent Governance
• Ethics and Compliance Management
• Integrated Risk Management

Environmental Achievements

• Reduced greenhouse gas emissions by 5.9% compared to the previous year
• Achieved a 94.7% construction waste recycling rate
• Reduced energy consumption by 5%
• Reduced water usage by 5%
• Increased the proportion of green product purchases by 1.0%p to 22.1%
• Introduced guidelines for the protection of endangered wildlife

Social Achievements

• Maintained a high-risk accident rate of 3%
• Achieved a Good Quality (GQ) rating in 98.2% of sites
• Increased the proportion of female employees to 15%
• Total social contribution expenditure of KRW 4.85 billion (22.9% increase from the previous year)
• Implemented a youth job mentoring system

Governance Achievements

• Appointed a female non-executive director
• Implemented BOD and committee evaluation systems
• Acquired treasury shares (~KRW 20 billion)
• Introduced electronic voting system (2024)
• Improved dividend procedures and established a mid- to long-term dividend policy (2024)
• Obtained ISO 37001 Anti-Bribery Management System certification
• Obtained ISO 37301 Compliance Management System certification

Climate Goals & Targets

Environmental Challenges

• Climate change risks (physical and transition risks)
• Community impact (environmental pollution, building damage)
• Compliance risks (related laws and regulations, ethics-related regulations)
• Information security risks (customer data, confidential information)
• Liquidity risks (market conditions, credit)
• Contingent liabilities (credit)
• Shortage of skilled workers

Mitigation Strategies

• Developed response systems and strategies to minimize and adapt to potential climate change risks
• Developed guidelines for designing zero-energy buildings
• Established procedures for investment committee review of community impact assessments
• Developed the Project Life Cycle (PLC) management system
• Strengthened the project feasibility verification management system
• Strengthened information protection measures
• Implemented various support systems to help partner companies establish an ESG management framework

Supply Chain Management

Supplier Audits: Evaluations of existing partner companies (513 contractors, and 652 suppliers) and new applicants (409)

Responsible Procurement

• Fair trade pledge
• Code of Conduct for Partner Companies
• ESG evaluations for partners

Climate-Related Risks & Opportunities

Physical Risks

• Increase in frequency and intensity of extreme weather events

Transition Risks

• Inclusion in the greenhouse gas target management system
• Mandatory climate disclosures

Opportunities

• Strengthened system for the circular economy
• Increased demand for low-carbon, high-efficiency products and services

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards for Engineering & Construction Services, TCFD recommendations

Certifications: ISO 14001, ISO 37001, ISO 37301, ISO 27001

Third-party Assurance: Korea Management Registrar (KMR)

UN Sustainable Development Goals

• Goal 4
• Goal 5
• Goal 7
• Goal 8
• Goal 9
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

Initiatives contribute to these goals through various environmental, social, and governance programs

Sustainable Products & Innovation

• Zero-energy buildings
• Eco-friendly construction technologies

Awards & Recognition

• Report of the Year at the 2023 Management Grand Awards