Climate Change Data

Environmental Metrics

ESG Focus Areas

• Environment & Safety
• Technological Innovation
• Supply Chain
• Labor Rights
• Governance & Ethics
• Corporate Social Responsibility

Environmental Achievements

• Reduced GHG emissions by 4.7% y-o-y
• Achieved 66.8% in waste recycling
• Reduced energy consumption by 3.4TJ
• Replaced fluorescent lights with LED lights, resulting in annual power consumption reduction of 85,848 kWh and cost savings of nearly KRW 9.96 million
• Optimized process water pumps, achieving annual power savings of 218,582 kWh, amounting to KRW 23.39 million in reduced power bills
• Installing inverters on chilling pumps, contributing to annual power savings of 84,672 kWh, with a cost reduction of KRW 9 million

Social Achievements

• Launched corporate sports team comprised of athletes with disabilities
• Provided 19 sessions of the Vision Workshop for talent development, 640 employees in attendance, and 4.2 points in satisfaction score
• Signed the SIA t1 agreement to provide tailormade training for people with disabilities with the Korea Employment Agency for Persons with Disabilities
• Reached 37 persons in cumulative direct employment of people with disabilities

Governance Achievements

• Stipulated and circulated the Code of Conduct for all 150 suppliers
• Stipulated our tax policy and announced it through the Board’s approval
• Publicly declared the Corporate Governance Charter
• Ethics training completed by 112 new hires
• Achieved ISO 27001 in 2022
• Reached 100% in completion of information security training

Climate Goals & Targets

Environmental Challenges

• Increasing waste from automotive parts including plastic and PCB
• Financial burden for waste treatment
• Intensifying price competition in line with the mainstreaming of L1~L2 autonomous driving in the market
• Accelerating development of perception, decision-making, and control technologies in line with the growing autonomous driving market
• Brain drain amid the intensifying market competition
• Decreasing corporate competitiveness due to the lack of employee work engagement and innovation drivers
• Intensifying competition over technology development in the global eco-friendly automotive market
• Tightening regulations to improve fuel efficiency and reduce CO2 emissions mainly in overseas countries
• Declining market competitiveness due to information leaks concerning key products and technology
• Losses in corporate and financial value due to personal/customer data leaks
• Supply chain shocks due to decreasing supplier competitiveness and product quality
• Declining corporate value due to ESG risks occurring along supply chains
• Tightening government regulations on GHG emissions
• Increasing stakeholder demand for businesses to join in on climate change adaptation efforts

Mitigation Strategies

• Develop failsafe, redundancy, and other technologies to ensure the safety of autonomous driving
• Establish an integrated process to respond to regulations governing high-consequence safety disasters and public disasters
• Build a quality-driven culture through quality reporting/awards and quality training
• Facilitate the recycling of automotive equipment parts
• Reduce waste from defective products
• Disclose waste volume in line with Ministry of Environment guidelines
• Develop autonomous driving solutions that support advanced autonomous driving
• Prepare to tap into the new robotic mobility business
• Proactively form partnerships with domestic/global leading companies and specialist startups
• Operate campus recruiting and the Employee Referral program to secure top-notch R&D talent
• Manage key talent
• Increase inclusive employment
• Develop high-performance autonomous driving technology for L3 and beyond
• Develop plans to advance the system to preemptively respond to security incident risks and prevent their reoccurrences
• Develop a conflict mineral tracing system to bolster our management system
• Conduct ESG assessment on 15 suppliers in 2023
• Fully transition to zero-emission vehicles for owned and leased vehicles by 2030
• Become net zero by 2050
• Expand partnerships to develop eco-friendly mobility technology for autonomous driving
• Operate talent development programs to develop eco-friendly technology
• Issue green bonds to fund R&D on eco-friendly vehicles and parts
• Regularly review information security risk with the company-wide information security management department head taking the lead
• Stipulate internal management planning guidelines for information security
• Implement conflict minerals management for semiconductor plating
• Apply ESG criteria in selecting and assessing suppliers
• Facilitate communication with suppliers
• Replace old equipment and increase the use of high-efficiency utility

Supply Chain Management

Supplier Audits: 5 in 2022, 15 planned for 2023

Responsible Procurement

• Supplier Code of Conduct
• Conflict minerals management
• ESG criteria in selecting and assessing suppliers

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI Standards, ISO 26000, UN SDGs, UNGC, SASB

Certifications: ISO 14001, ISO 45001, ISO 27001, IATF 16949

Third-party Assurance: BSI

UN Sustainable Development Goals

• Goal 1
• Goal 2
• Goal 3
• Goal 4
• Goal 7
• Goal 8
• Goal 9
• Goal 10
• Goal 11
• Goal 12
• Goal 13
• Goal 16
• Goal 17

The report lists several SDGs and how HL Klemove's initiatives contribute to them.

Awards & Recognition

• Science and Technology Award 2022
• Industry Technology Innovation Award 2022
• Commendation of the Minister of Science and ICT on 56th Science Day in 2023