Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment
• Social
• Governance

Environmental Achievements

• Reduced energy consumption by 4.3% compared to the previous year.
• Reduced GHG emissions by about 4% compared to the previous year.
• Invested KRW 1.3 trillion in carbon fiber and hydrogen projects for R&D and commercialization.

Social Achievements

• Received outstanding results from ESG evaluations.
• Continued efforts to promote shareholder rights and interests through treasury stock repurchases.
• Various CSR activities to overcome difficulties of COVID-19 pandemic, contributing to local communities.

Governance Achievements

• Strengthening the Board Expertise by Appointing Outside Directors from Diverse Backgrounds
• Reinforcing Independence and Transparency from External Board Members
• Fair and Transparent Evaluation and Compensation

Climate Goals & Targets

Environmental Challenges

• The spread of COVID-19 has affected negatively to our production and sale, leading into decrease in sales, operating profit, and net profit.

Mitigation Strategies

• Minimized the recession of our business performance based on stable management capacity despite continuous COVID-19 pandemic situation.

Supply Chain Management

Responsible Procurement

• Established fair trade guidelines

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD, EcoVadis, ISO26000, UN SDGs

Third-party Assurance: DNV

Awards & Recognition

• CSR in the Community

Environmental Metrics

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 Energy and GHG reduction relative to 2018: 4.9%
• Hyosung TNC CDP Climate Change: A- grade attained
• Hyosung Heavy Industries Annual Energy Reduction at the Changwon Plant: 47 TJ
• Hyosung Advanced Materials Annual Energy Reduction at the Ulsan Plant and Jeonju Plant: 20 TJ
• Hyosung Chemical Total Photovoltaic Power Generation: 171,694 kWh

Social Achievements

• Recognition for CSR in the Local Community for 3 consecutive years
• Employment success for 271 persons in the Employment Promotion Program
• 100% ‘return rate after parental leave’ for three consecutive years

Governance Achievements

• Hyosung Corporation received outstanding results in its ESG evaluations
• Hyosung TNC acquired Leadership A- and won the Carbon Management Special Award at the 2021 CDP Climate Change Korea Awards

Climate Goals & Targets

Environmental Challenges

• Climate change risks including transition risks from market and technological changes and physical risks from climate change effects
• Supply chain disruptions
• Increased need for eco-friendly and low-carbon products
• Microplastics pollution
• Expanding need for eco-friendly and low-carbon products

Mitigation Strategies

• Risk management process to identify and respond to climate change risks and opportunities
• Internal carbon pricing
• Green Management Vision 2030 with GHG emission reduction target
• Purchase of renewable energy certificates and green electricity
• Energy-saving diagnoses and facility support for suppliers
• Development of eco-friendly products (regen, MIPAN regen, bio-based spandex)
• Technology for recycling waste fishing nets
• Introduction of eco-friendly raw materials and emission reduction technologies
• Plastic recycling pilot project
• Development of eco-friendly materials using captured carbon dioxide

Supply Chain Management

Responsible Procurement

• Shared growth agreements
• Energy-saving support project
• ESG education and guidebooks
• Win-win Payment System
• Code of Conduct for Hyosung Business Partners
• Fair Trade Compliance Program
• Standard Subcontracting Contract

Climate-Related Risks & Opportunities

Physical Risks

• Typhoons
• Floods
• Droughts

Transition Risks

• Market and technological changes to the transition to a low-carbon economy
• Regulatory changes

Opportunities

• Development of energy-efficient products
• Expansion of renewable energy businesses

Reporting Standards

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

Certifications: ISO 14001, ISO 45001, GRS, ISCC EU and ISCC PLUS, Ocean Bound Plastic (OBP), KOLAS, FSSC 22000, IATF 16949, AS9100D, OEKO-TEX ® Standard 100, Recycled Claim Standard (RCS)

Third-party Assurance: KFQ (Korean Foundation for Quality)

Sustainable Products & Innovation

• regen
• MIPAN regen
• bio-based spandex
• Polyketone
• TANSOME
• ALKEX
• Creora regen

Awards & Recognition

• Carbon Management Special Award (Hyosung TNC)
• Patriotic Culture Award
• CSR in the Community awards (3 consecutive years)

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
• Hyosung Advanced Materials received a commendation from the Korean Ministry of Health and Welfare
• Supported local communities with products that incorporate Hyosung’s eco-friendly technology (POKETONE tray, carbon fiber dryer, etc.)
• Operation of Employee Mental Health Care Program
• Enactment and Revision of ESG Management Policies Including Company-wide Code of Ethics

Governance Achievements

• Support for TCFD Declaration
• Implementation of Anti-corruption and Ethical Management
• Board Diversity and Expertise
• Enhancing Shareholder Communication
• Operation of the ESG Management Promotion Committee under the BoD

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.
• The global community is facing the urgent challenges of climate crisis and resource depletion, and is taking proactive measures to shift to a circular economy and a low-carbon society.

Mitigation Strategies

• Hyosung has established a strategic system that enables proactive responses to climate change risks by identifying and evaluating risk and opportunity factors based on the climate risk classification system included in the TCFD recommendations.
• 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.
• Hyosung is committed to reducing the environmental impact of its products and processes.

Supply Chain Management

Responsible Procurement

• green procurement policies

Climate-Related Risks & Opportunities

Physical Risks

• heat waves, floods, forest fires, rising average temperatures and sea level rise

Transition Risks

• policy and regulation, market, technology, and reputation risks

Opportunities

• growth of the hydrogen market
• growth of eco-friendly energy demand
• growth of the recycled eco-friendly product market
• growing market demand for carbon-reduced bio-based plastic materials

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
• All-PET carpets
• POKETONE™

Awards & Recognition

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

Environmental Metrics

ESG Focus Areas

• Sustainable Products and Technology Development
• Response to Climate Change
• Collaborative Partnership with Businesses across the Value Chain and Communities
• Reinforcement of Workplace Health and Safety
• Reinforcement of Sustainability Leadership and Risk Management

Environmental Achievements

• Reduced emissions by 6.4% compared to the previous year.
• Increased Hyosung Corporation’s LCA items to 10, up from 3.
• Calculated Scope 1 and 2 emissions of major subsidiaries in 2023.
• Sales from recycled/bio-material products increased 79% compared to the previous year (Hyosung Corporation).

Social Achievements

• 0 Industrial Accidents occurred at Hyosung Corporation.
• Established the 2030 Safety and Health Roadmap.
• Conducted collaborative partnership with stakeholders in the value chain (Climate change mitigation and adaptation with 73 companies, New product research and marketing with 17 companies, Promoting safety and human rights with 107 companies, Improving quality and productivity with 23 companies, Providing sustainability education and consulting for 106 companies).

Governance Achievements

• Hyosung Corporation held 7 ESG Management Committee meetings and 4 ESG Management Promotion Committee meetings.
• Established and revised ESG policies.
• Improved the human rights impact assessment checklist.

Climate Goals & Targets

Environmental Challenges

• Increasing greenhouse gas emissions reduction goals and broadening the scope of carbon emissions management to alleviate the impact on climate change.
• Major customers and investors’ demands for Greenhouse gas emissions reduction from our business sites and products are increasing.
• Safety accidents are highly likely to expose workers in manufacturing facilities and research laboratories, which can also harm the surrounding local communities.

Mitigation Strategies

• Hyosung Corporation approved the increase in 2030 Emissions Reduction Goal (Reduction of 23.6% compared to the emissions in 2018, up from 14.5%).
• Implementation of 7 investment plans for Hyosung Corporation’s greenhouse gas emissions reduction (Reducing 2023 emissions by 2.7%, equivalent to approximately 800 tons per year).
• Established the 2030 Safety and Health Roadmap.
• Hyosung Corporation enacted and revised 7 safety and health regulations.

Supply Chain Management

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather conditions such as typhoons and floods
• Long-term climate change patterns such as sea-level rise and increase of average temperature

Transition Risks

• Enhancement of carbon regulations
• Demands of customers to reduce carbon emissions and acquire eco-friendly certification
• Transition to eco-friendly, low-carbon technologies/products
• Stakeholders’ demands for climate change action and information disclosure

Opportunities

• Expansion of hydrogen market
• Expansion of the sustainable product market
• Sales generation through participation in the emissions trading system

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, ISO 26000

Third-party Assurance: Econine