Climate Change Data

Hanil Holdings

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:7,906,672 tCO2e/year (Scope 1 & 2)
Scope 1 Emissions:7,399,949 tCO2e/year
Scope 2 Emissions:506,723 tCO2e/year
Renewable Energy Share:16.3% (Danyang plant)
Total Energy Consumption:627,048,539 kWh/year
Water Consumption:4,397,245 m3/year
Waste Generated:1,008,763 tons/year

ESG Focus Areas

  • Climate Change Response
  • Clean & Green Management
  • Health & Safety
  • Quality Management
  • Collaboration

Environmental Achievements

  • Reduced carbon emissions by a small amount compared to the previous year, despite a slight increase in clinker production. Achieved 16% of electricity usage from waste heat recovery at the Danyang plant.
  • 32.1% of thermal energy from alternative fuels in 2022.
  • 35 eco-friendly certified products (highest among cement companies in Korea).

Social Achievements

  • Zero major accidents in 2022.
  • Launched 'Hanil Mind Care Program' for employee mental health.
  • Supported 5,308 students through the Uduk Foundation.

Governance Achievements

  • Established an ESG committee and ESG task force.
  • Published the first group sustainability report.
  • Strengthened corporate governance structure.

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero emissions by 2050.
Medium-term Goals:
  • Reduce greenhouse gas emissions by 30% by 2030.
Short-term Goals:
  • Reduce greenhouse gas emissions intensity by 5% by 2025.

Environmental Challenges

  • Rapid increase in fuel, electricity, and transportation costs.
  • Global economic recession.
  • Supply chain disruptions.
  • Extreme weather events.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Increased investment in facilities and infrastructure.
  • Developed low-carbon, eco-friendly products.
  • Strengthened risk management.

Supply Chain Management

Responsible Procurement
  • Code of conduct
  • Supplier sustainability requirements
  • ESG assessment of new suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • CCUS technology development

Reporting Standards

Frameworks Used: GRI Standards 2021, UN SDGs, TCFD, SASB

Certifications: ISO 14001, ISO 45001

Third-party Assurance: KMR (Korean Management Certification)

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 11 (Sustainable cities and communities)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

Hanil's initiatives contribute to these goals through various ESG activities.

Sustainable Products & Innovation

  • Low-carbon green cement
  • High-density floor Remital
  • Eco-friendly Remital products

Awards & Recognition

  • 20 years consecutive selection as 'Korea's Most Respected Company' (Cement Industry)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:7,274,229 tCO2e/year
Scope 1 Emissions:4,370,690 tCO2e/year
Scope 2 Emissions:309,079 tCO2e/year
Scope 3 Emissions:106,864 tCO2e/year (downstream transport and distribution only)

ESG Focus Areas

  • Climate Change Response
  • Occupational Safety and Health
  • Environmental Impact of Production Activities
  • Customer Satisfaction and Quality Management

Environmental Achievements

  • Reduced carbon emissions by 10% compared to the previous year in the cement business.
  • Reduced greenhouse gas emissions intensity by 1% compared to the previous year.
  • Increased the share of alternative fuels in cement production by 3.7% compared to the previous year.
  • Achieved 64.1% alternative fuel contribution to thermal energy.
  • Completed the modernization of the No. 5 kiln at the Danyang plant, reducing anthracite coal consumption by over 30%.
  • Completed the modernization of the No. 2 kiln at the Yeongwol plant and the construction of a new ECO power generation facility.
  • Converted 61% of company vehicles to low-emission vehicles.

Social Achievements

  • Launched a new safety management system (SF100) and implemented a smart safety management platform.
  • Improved safety incident rate significantly in 2023.
  • Conducted CSO safety forum and safety pledge ceremony.
  • Expanded safety management scope to include subcontractors and special types of workers.
  • Implemented a bi-weekly 4-day work week at the Danyang plant.
  • Conducted employee satisfaction surveys and implemented improvements based on feedback.
  • Provided various employee wellbeing initiatives, including the Hanil Mind Care Program.

Governance Achievements

  • Expanded the Hanil Cement board of directors to include 4 independent directors.
  • Established an ESG committee and an ESG task force.
  • Implemented a system for evaluating the financial impact of environmental and climate-related risks.
  • Established a fair compensation system linked to ESG performance.
  • Introduced a compliance program (CP) and conducted regular compliance training.

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero emissions by 2050.
Medium-term Goals:
  • Reduce NOx emissions by 50% by 2030 (from 2019 baseline).
  • Achieve 30% reduction in greenhouse gas emissions by 2030 (from 2018 baseline).
Short-term Goals:
  • Reduce greenhouse gas emissions intensity by 5% by 2025 (from 2021 baseline).

Environmental Challenges

  • Rapid increase in fuel, electricity, and transportation costs.
  • Global economic recession.
  • Strengthening greenhouse gas emission regulations.
  • Major accident at Hanil Hyundai Cement Yeongwol plant in February 2024.
  • Increased risk of environmental regulations due to the introduction of the Integrated Environmental Management System.
Mitigation Strategies
  • Developed alternative sourcing strategies for raw materials and fuels.
  • Invested in greenhouse gas emission reduction facilities (2,469 billion KRW).
  • Implemented comprehensive measures to prevent recurrence of accidents, including facility improvements and employee training.
  • Established a dedicated greenhouse gas management team (G-Unit).
  • Participated in the Korea Energy Efficiency Innovation Partnership (KEEP).

Supply Chain Management

Supplier Audits: Annual ESG assessments of subcontractors.

Responsible Procurement
  • Code of Conduct for Suppliers
  • Sustainability requirements for suppliers
  • ESG assessment of new suppliers

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products and services
  • Expansion into CCUS technologies

Reporting Standards

Frameworks Used: GRI Standards 2021, TCFD, SASB, UN SDGs

Certifications: ISO 14001, ISO 45001

Third-party Assurance: Korea Management Certification Institute (KMR)

UN Sustainable Development Goals

  • Goal 7 (Affordable and clean energy)
  • Goal 8 (Decent work and economic growth)
  • Goal 9 (Industry, innovation, and infrastructure)
  • Goal 11 (Sustainable cities and communities)
  • Goal 12 (Responsible consumption and production)
  • Goal 13 (Climate action)

The report details how various initiatives contribute to these SDGs.

Sustainable Products & Innovation

  • Low-carbon, low-energy green cement
  • High-density floor-use Remital
  • Various eco-friendly certified products

Awards & Recognition

  • 2023 Korea Service Quality Index (KS-QEI) awards for Portland cement, dry mortar, and ready-mixed concrete.