Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance

Environmental Achievements

• Achieved 3.4% GHG emission reduction compared to BAU
• Expanded EHS committee activities
• Developed various eco-friendly products (bio-based spandex, recycled polyester yarn, recycled nylon yarn, eco-friendly engineering plastics)

Social Achievements

• Launched C-Cube activities to improve customer satisfaction
• Implemented shared growth programs with suppliers
• Conducted various social contribution activities (Smile Expedition, overseas child sponsorship, support for vulnerable groups)

Governance Achievements

• Strengthened board independence and transparency
• Established a group-wide risk management system
• Implemented an ethical management system

Climate Goals & Targets

Environmental Challenges

• Global business environment difficulties and COVID-19 pandemic
• Intensifying competition in textile, power, and construction industries
• Growing demand for ESG information from stakeholders

Mitigation Strategies

• Operates a TFT at the group level to address ESG improvements
• Improving risk system focusing on safety and health risks from COVID-19
• Developing differentiated sustainability by each business company

Supply Chain Management

Responsible Procurement

• Shared growth agreement with suppliers
• Fair trade guidelines
• Supplier ethical management practices

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards

Third-party Assurance: Networks-Y (AA1000AS principles and ISAE 3000)

Sustainable Products & Innovation

• regenⓇ
• creoraⓇ eco-soft
• MIPANⓇ Regen
• creoraⓇ Regen
• POKETONE™

Environmental Metrics

ESG Focus Areas

• Climate Change Response
• Green Business and New Growth Engine
• Health and Safety at Business Sites
• Management for Mutual Growth
• Customer Obsession

Environmental Achievements

• Hyosung GHG emissions reductions compared to 2018 level 9.2%
• Hyosung TNC GHG emissions reductions compared to 2018 level 26.8%
• Hyosung Advanced Materials Establishment of Scope 1, 2, 3 inventory for all global business sites
• Hyosung Chemical Reduction of 25,592 tons of GHG emissions annually by using waste incineration heat energy compared to the emissions levels using LNG
• Hyosung Heavy Industries GHG emissions reductions compared to 2018 level 30.2%

Social Achievements

• Recognized as ‘CSR in the community’ for four consecutive years
• Operation of Employee Mental Health Care Program
• Enactment and Revision of ESG Management Policies Including Company-wide Code of Ethics
• Implementation of Anti-corruption and Ethical Management
• Board Diversity and Expertise

Governance Achievements

• Support for TCFD Declaration
• Expansion of Biodiversity Conservation Activities
• Global Pioneering of regen Bio-Based Spandex Commercialization and mass-production
• Carbon Management Sector Honors at CDP Awards
• Expansion of ISO 14001, ISO 50001 and Eco-friendly Certifications

Climate Goals & Targets

Environmental Challenges

• Climate change has a significant impact on the industry, causing substantial social and economic costs, such as raw material and supply chain risks, which translate into corporate financial risks.
• Transition risks are the risks that arise from the shift to a low-carbon society, such as policy and regulation, market, technology, and reputation risks.
• Physical risks are the risks that stem from the physical impacts of climate change.
• Climate change presents not only risks, but also opportunities for creating new businesses and markets across industries.

Mitigation Strategies

• Hyosung has adopted ‘Green Vision 2030’ as a systematic framework to address the risks and opportunities arising from climate change, and has developed a ‘mid- to long-term roadmap for climate change response’ in 2022.
• To accomplish the strategies and objectives, Hyosung aims to systematically execute specific tasks such as establishing a GHG emissions inventory, conducting climate scenario analysis, and identifying reduction measures based on the company-wide mid- to long-term roadmap for climate change response.
• Participation in Initiatives to Respond to Climate Change
• Hyosung has devised and implemented a risk management process that can recognize and systematically address the risks and opportunities arising from climate change.

Supply Chain Management

Responsible Procurement

• green procurement policies

Climate-Related Risks & Opportunities

Physical Risks

• Increased and intensified extreme weather events
• Long-term changes in climate patterns

Transition Risks

• Stricter carbon regulations
• Changes in consumers’ preferences for eco-friendly products
• Transition to eco-friendly and low-carbon technologies

Opportunities

• Growth of the hydrogen market
• Growth of eco-friendly energy demand
• Growth of the recycled eco-friendly product market

Reporting Standards

Frameworks Used: GRI Standards 2021, SASB, TCFD, EcoVadis, ISO 26000, UN SDGs

Third-party Assurance: Korea Management Registrar Inc. (KMR)

Sustainable Products & Innovation

• regen Bio-Based Spandex
• regen Ocean Nylon
• regen Polyester
• regen Nylon
• lyocell tire cord
• Bio-PET
• POKETONE™
• TANSOME®
• Antimony (Sb)-Free

Awards & Recognition

• King Sejong's Award
• Carbon Management Sector Honors at the CDP Awards