Hankook's ESG report highlights conservation efforts

NASHVILLE — Hankook Tire & Technology published its 2023-24 Environment, Social and Governance (ESG) report that outlines its sustainable management activities and performance for 2023, as well as the company's mid- and long-term strategies.

The report, published annually since 2010, highlights important achievements in three main categories: Eco-value chain, sustainable product and responsible engagement.

Hankook describes its ESG vision as "innovation for a sustainable future," and added this year's report underscores the company's long-time efforts to be a global ESG leader.

In 2009, the company established a dedicated corporate social responsibility committee, followed the next year by the formation of its ESG Strategy and steering committee.

In 2018, Hankook introduced the E.Circle declaration, a strategic initiative focused on implementing sustainable natural rubber policies and promoting an eco-friendly circular economy system.

In August 2023, Hankook became the first tire company in Korea to have its carbon reduction target approved by the Science Based Targets Initiative, a global initiative that supports companies in setting targets that are in line with the latest climate science.

By 2030, Hankook aims to achieve a 46.2% reduction in greenhouse gas emissions from the manufacturing stage (scope 1 and 2) and a 27% reduction in emissions throughout its value chain (scope 3) compared to 2019 levels.

Emission "scopes" range from one to three: Scope 1 is direct emissions from sources controlled by a company; scope 2 is indirect upstream emissions from purchased electricity, steam, heat and cooling; and scope 3 describes all other indirect emissions, both upstream and downstream.

Hankook's ultimate goal is being a Net Zero company by 2050.

In 2023, Hankook saw a 12% reduction in greenhouse gas emissions from manufacturing (scope 1 and 2) and a 5% reduction in value chain emissions (scope 3) compared to 2019. Hankook said it plans to reduce the total amount of greenhouse gas emissions (scope 3) from the value chain by 27.5% from 2019 levels by 2030.

Additionally, the company is working to reduce all greenhouse gas emissions from production and major business activities, including raw material acquisition, distribution and investment, over the medium to long term.

With biodiversity risk management becoming increasingly important in recent years, Hankook is setting up processes to minimize its impact. These efforts are in line with the Locate, Evaluate, Assess, Prepare (LEAP) approach proposed by the Taskforce on Nature-related Financial Disclosures (TNFD), an international initiative on natural capital disclosure, the company said.

Additionally, Hankook is involved in biodiversity conservation activities, including the "Our Forest" project, which plants trees in the gardens of schools for special needs children and care centers for single mothers.

The company also installed a "Smart Wall Garden" at its Daejeon plant in Korea through an agreement with the Korea Arboreta and Gardens Institute and launched its "Make Your Own Pet Plant" program.

"By considering ways to reduce the environmental impact of products throughout their entire life cycle — from raw material acquisition to manufacturing, use and disposal — the company has achieved significant results in preventing natural resource depletion and reducing carbon emissions," Hankook said. "This was achieved by discovering sustainable, eco-friendly materials and developing application technologies at the stages of design and raw material acquisition."

Hankook Tire is also implementing a competitive, sustainable management strategy through its waste tire recycling project, "re:move." Hankook recycles waste from tire production to create upcycled products such as shoes, longboards and camping goods.

In addition, Hankook is building a sustainable supply chain, practicing human rights management, creating value for employees, and actively engaging in social contribution activities to support local communities and foster a sustainable future.

In 2022, the company launched a driving school at the Daejeon Traffic Culture Institute to provide traffic safety education to underprivileged children.

Since 2013, Hankook has been promoting child traffic safety and raising awareness to help create safe routes for children traveling to and from school. Hankook also to carries out employee volunteer activities such as painting murals and participating in the "Our Forest" project. Through projects such as these, Hankook employee volunteer hours exceeding 10,000 in 2023.

Download the full ESG report to learn more.