Climate Change Data

Hanwha Systems

Climate Impact & Sustainability Data (2020)

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:17,544 tCO2eq
Scope 1 Emissions:576 tCO2e/year
Scope 2 Emissions:16,968 tCO2e/year
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:373,526 GJ
Water Consumption:87,089 tons
Waste Generated:243 tons
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Decreased water consumption by 8.1% (YOY)
  • Achieved a 96.1% waste recycling rate
  • Zero environmental accidents
  • Reduced greenhouse gas emissions by approximately 3% in 2020 compared to 2019
  • Achieved the target of reducing greenhouse gas emissions by 5% compared to BAU

Social Achievements

  • Selected as the “company with the best jobs in Korea” by the Ministry of Employment and Labor for two consecutive years (2020-2021)
  • Achieved a 98.4% in service satisfaction
  • Total 17,408 beneficiaries (cumulative) of social contribution activities
  • About KRW 500 million of donations in 2020
  • Expanded contact-free communication among employees

Governance Achievements

  • Establishment of ESG Committee in 2021
  • Establishment of Compliance Team in January 2020
  • Introduction of electronic voting system at the 2020 regular general meeting of shareholders
  • 0 cases of violation of fair trade in 2020
  • 0 customers affected by data breach incidents for 3 consecutive years

Climate Goals & Targets

Long-term Goals:
  • To become an eco-friendly company that leads the future life
  • To take the lead in response to climate change by establishing a low-carbon management system
  • Target to reduce greenhouse gas emissions by approx. 24% compared to 2020 in 2025
Medium-term Goals:
  • To establish a company-wide environmental safety organization
  • To keep promoting UAM business
  • To develop ESG integrated management system
  • To expand internal compliance and ethics inspection
  • To increase the diversity of the BOD
  • To improve IT training for employees
  • To expand environmental improvement activities
  • To establish a company-wide environmental safety organization
Short-term Goals:
  • To build an IoT monitoring system
  • To conduct a workplace energy saving campaign
  • To build a mobile fire notification system
  • To refine its activities to systematize the management of the environmental sector
  • To identify environmental risks and opportunities
  • To increase training programs to enhance employee competency in IT core technologies

Environmental Challenges

  • Climate change related risks (physical risks such as typhoons and floods, transition risks such as strengthening environmental policies and regulations, market risk on carbon emissions)
  • Potential risks that may affect our business mid-to long-term in addition to short-term financial and non-financial risks
Mitigation Strategies
  • Emergency response training for each situation in preparation for disasters/calamities
  • Periodic safety inspection
  • Establishment of real-time weather monitoring system
  • ISO 50001 certification
  • Enhancement of IoT-based monitoring
  • Considering the expansion of the use of renewable energy
  • Preemptive expansion of eco-friendly businesses such as UAM
  • Information disclosure based on the TCFD framework
  • Establishment of a corporate risk management system in 2021 and founding of Management Committee (expected)
  • Identification of potential risks and establishment of response strategies
  • Systemization of tax risk policies

Supply Chain Management

Supplier Audits: 12 regular subcontract inspections, 2 compliance voluntary inspections, and 1 themed inspection in 2020

Responsible Procurement
  • Securing the raw material quality of partners
  • Forgery prevention activities
  • Partner evaluation/ improvement activities

Climate-Related Risks & Opportunities

Physical Risks
  • Natural disasters such as typhoons and floods
  • Rise in average temperature and sea level
Transition Risks
  • Strengthening environmental policies and regulations
  • Market risk on carbon emissions, such as a carbon border tax
  • Demand for renewable energy transition and GHG emissions reduction
  • Replacement by low-carbon technology
  • Demand of Consumers
Opportunities
  • Development of energy-efficient products
  • Expansion of the use of renewable energy
  • Preemptive expansion of eco-friendly businesses such as UAM

Reporting Standards

Frameworks Used: GRI, SDGs, TCFD, SASB

Certifications: ISO 14001, ISO 45001, ISO 50001, CMMI v2.0 level 5, CMMI v1.3 level 4

Third-party Assurance: Korea Management Register

UN Sustainable Development Goals

  • Goal 3
  • Goal 4
  • Goal 5
  • Goal 8
  • Goal 9
  • Goal 10
  • Goal 12
  • Goal 15
  • Goal 16
  • Goal 17

As a member of the international community, Hanwha Systems supports SDGs and carries out various related activities to contribute to the achievement of common goals.

Sustainable Products & Innovation

  • Quantum RedTM (all-in-one thermal imaging camera)
  • Mangrove solution (carbon emission management system)

Awards & Recognition

  • “Korea Best Job Company” (2020, 2021)
  • Home Silver Prize of QUESTAR Awards (2020)
  • Gold Prize of ‘2020 Galaxy Awards’
  • Minister’s Commendation for security excellency corporate in Defense industry (2018)