Neu-Isenburg, Germany, 04 September, 2023 – Premium tyre manufacturer Hankook has published its 2022/23 ESG Report (ESG = Environmental Social Governance). In it, Hankook reports on its sustainability activities and strategies for the current year. As further proof of this commitment, the Science Based Targets Initiative (SBTi) has validated Hankook’s greenhouse gas emission reduction targets. These commit the company to reaching net zero emissions by 2050 based on the SBTi Net Zero standard.
This is Hankook’s 14th ESG Report. It is based on the ESG vision “Innovation for a Sustainable Future” introduced in 2010, and includes all of the company’s sustainability activities as well as its medium- and long-term strategy in the environmental, social and governance areas. The focus is evenly split between the three priority areas Eco Value Chain, Sustainable Product and Responsible Engagement.
Hankook has been systematically increasing its efforts toward sustainable management, starting with the strengthening of its ESG management system. In 2009, the company established a corporate social responsibility (CSR) organisation followed by the formation of the ESG Strategy Committee and Steering Committee a year later. In 2018, Hankook launched a strategic initiative focused on implementing sustainable natural rubber policies and promoting an eco-friendly circular economy system. In 2021, the tyre manufacturer established an ESG Committee within the Board of Directors. In 2022, Hankook unveiled a Corporate Governance Charter, which serves as the foundation for sustainable management and manifests the company’s commitment to transparent and ethical ESG practices.
By reducing its greenhouse gas emissions, Hankook has positioned itself at the forefront of constructing an eco value chain. The company has developed a systematic climate change response strategy and integrated a Climate Change Committee into its management activities. Moreover, Hankook is carrying out diverse energy saving activities such as implementing high-efficiency equipment, optimising energy efficiency and using renewable energy. As a result, the company’s greenhouse gas intensity fell by 2.74% compared to the previous year’s figures.
Target: 46.2% reduction in greenhouse gas emissions by 2030
In March 2022, Hankook joined the Science Based Targets initiative and submitted its greenhouse gas emission reduction targets. SBTi is a global initiative that supports companies in setting targets that are in line with the latest climate research findings and the goals of the Paris Agreement. By 2030, Hankook aims to achieve a 46.2% reduction in the total amount of direct and indirect greenhouse gas emissions (Scopes 1 and 2) generated during the production stage, compared to 2019 figures. By doing so, it will be in compliance with the SBTi validation. Additionally, the company has set a target for 2030 to reduce the total amount of greenhouse gas emissions generated throughout the value chain (scope 3) by 27.5% compared to 2019 figures. Hankook’s recognition by the SBTi for these targets is a significant move. Hankook is thus rising to the challenge of reaching net zero emissions by 2050 based on the SBTi Net Zero standard. Around the world, roughly 5,700 companies have committed to meeting science-based climate targets as part of the SBTi.
Development of eco-friendly tyres
Hankook conducts further research into the development of eco-friendly tyres using highly functional synthetic rubber. This accelerates the company’s ESG goal of successively increasing the percentage of sustainable raw materials. In recognition of its efforts to achieve carbon neutrality, Hankook obtained the highest ratings from multiple global ESG evaluation agencies.
Furthermore, the company is currently working on intelligent tyres technology, which utilises sensors embedded in the tread to detect wear, as well as the i-Flex, an airless tyre. To build a more sustainable future, Hankook is actively involved in establishing a sustainable supply chain, implementing human rights management, fostering employee well-being and engaging in social contribution activities.
Hankook has been included in the Dow Jones Sustainability Indices (DJSI) World – the world’s most prestigious sustainability index – for seven consecutive years.
More information about the ESG Report is available at Hankook’s website under the ESG menu: https://www.hankooktire.com/global/en/esg/esg-report.html