Climate Change Data

Hanil Holdings Co., Ltd., Hanil Cement Co., Ltd., Hanil Hyundai Cement Co., Ltd.

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:7,906,672 tCO2e/year (2022)
Scope 1 Emissions:3,985,227 tCO2e/year (2022)
Scope 2 Emissions:247,430 tCO2e/year (2022)
Renewable Energy Share:32.1% (2022)
Total Energy Consumption:627,048,539 kWh/year (2022)
Water Consumption:4,397,245 m3/year (2022)
Waste Generated:1,008,763 tons/year (2022)
Carbon Intensity:0.838 tCO2eq/ton_clinker (2022)

ESG Focus Areas

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

Environmental Achievements

  • Reduced carbon emissions by 1.76% in clinker production.
  • Achieved 32.1% renewable energy share from alternative fuels.
  • Developed and successfully piloted low-carbon, low-energy green cement technology.
  • Secured 35 eco-friendly certifications for products.

Social Achievements

  • Launched 'Hanil Mind Care Program' for employee mental health.
  • Achieved zero major accidents.
  • Expanded safety management scope to include special-type workers.
  • Implemented 'Hanil ESG Implementation Guidebook' for ESG culture internalization.

Governance Achievements

  • Strengthened ESG governance with the establishment of the ESG Committee and ESG Task Force.
  • Published the first group-level sustainability report.
  • Implemented a compliance program (CP) for fair trade.

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero emissions by 2050.
Medium-term Goals:
  • Reduce greenhouse gas emissions by 30% by 2030.
  • Achieve 7% female employment and 1.59% female managers by 2025.
Short-term Goals:
  • Reduce greenhouse gas emissions intensity by 5% by 2025.
  • Increase alternative fuel ratio to reduce fossil fuel dependency.

Environmental Challenges

  • Rapid increase in fuel, electricity, and transportation costs.
  • Global economic recession.
  • Strengthening environmental regulations.
  • Increased social concerns regarding resource recycling.
Mitigation Strategies
  • Developed alternative sourcing strategies.
  • Implemented cost reduction measures.
  • Established a greenhouse gas MRV system.
  • Invested 393.6 billion KRW in greenhouse gas reduction facilities (2021-2025).
  • Established a 'Clean Net Zero' TFT to address climate change risks and opportunities.
  • Developed low-carbon, low-energy green cement technology.
  • Strengthened internal controls and regular training to prevent unfair practices.

Supply Chain Management

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

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products
  • Expansion of eco-friendly businesses

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, low-energy 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:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:106,864 tCO2e/year (downstream transport and distribution)
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

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 renovation of the No. 5 kiln at the Danyang plant, reducing anthracite coal consumption by over 30%.
  • Completed the renovation of the No. 2 kiln at the Yeongwol plant and the construction of an ECO power generation facility.
  • Converted 61% of company vehicles to low-emission vehicles.

Social Achievements

  • Implemented the SF100 (Safety First, 100 years of Hanil) behavioral safety management system.
  • Improved safety incident rate.
  • Expanded safety and health management to include subcontractors and special types of workers.
  • Introduced a smart safety management platform.
  • Held a CSO safety forum and a 'Zero Major Accidents' safety pledge ceremony.
  • Introduced a bi-weekly 4-day work week.
  • Conducted employee satisfaction surveys and implemented improvements based on feedback.

Governance Achievements

  • Expanded the Hanil Cement board of directors to include 4 outside directors.
  • Established an audit committee and a nomination committee within the board of directors.
  • Implemented a compliance program (CP) and provided compliance training to employees.
  • Established a whistleblowing system.
  • Conducted a self-assessment of compliance activities annually.

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero emissions by 2050.
Medium-term Goals:
  • Achieve 30% reduction in greenhouse gas emissions by 2030 (based on 2018 emissions).
Short-term Goals:
  • Reduce greenhouse gas emissions intensity by 5% by 2025.

Environmental Challenges

  • Rapid increase in fuel, electricity, and transportation costs.
  • Global economic downturn.
  • 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.
  • Increased investment in greenhouse gas reduction facilities (total investment of 2,469 billion won).
  • Implemented comprehensive measures to prevent recurrence of accidents.
  • Strengthened safety management governance.
  • Introduced a smart safety management solution.
  • Established a 'Greenhouse gas Unit' (G-Unit) for strategic greenhouse gas management.
  • Participated in the Korea Energy Efficiency Innovation Partnership (KEEP).
  • Developed and implemented a risk assessment system.
  • Introduced the 'Facility Investment Environmental Cost and Risk Assessment System'.

Supply Chain Management

Supplier Audits: Annual ESG assessments of subcontractors.

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

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 technology

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 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, low-energy green cement
  • High-density floor-use Remital
  • Recycled materials-based products

Awards & Recognition

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