Leading ESG Globally
Global leading tire company Hankook Tire & Technology (Hankook Tire) has published its 2022/23 ESG Report, highlighting its sustainability activities, performance, and mid- and long-term strategies for the year.
Based on Hankook Tire’s environmental, social, and governance (ESG) vision system – “Innovation for a Sustainable Future” – the 14th report since 2010 provides an overview of the company’s performance in three primary categories: Eco-Value Chain, Sustainable Product, and Responsible Engagement.
Hankook Tire has been increasing its efforts toward sustainable management, starting with the strengthening of its ESG management system. The company embarked on this journey in 2009 by establishing a corporate social responsibility (CSR) organization, followed by the formation of the ESG Strategy Committee and Steering Committee in 2010, and the introduction of the E.Circle declaration in 2018, a strategic initiative focused on implementing sustainable natural rubber policies and promoting an eco-friendly circular economy system. In 2021, the ‘ESG Committee’ – an ESG decision-making body – was established within the Board of Directors to share its vision and sustainable management performance with employees and further clarify the company’s ESG engagement.
In May 2022, Hankook Tire 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. Beyond this, it is intensifying efforts to establish responsible governance by introducing a code of ethics for independent directors and implementing regular evaluations of the Board of Directors’ operations.
Hankook Tire has positioned itself at the forefront of constructing an Eco-Value Chain by reducing greenhouse gas emissions. It has developed and integrated a systematic climate change response strategy, led by the Climate Change Committee, into its management activities. Moreover, Hankook Tire is carrying out diverse energy reduction activities, such as implementing high-efficiency facilities, optimizing energy use, and using renewable energy to reduce greenhouse gas emissions.
In March 2022, Hankook Tire was the first tire company in South Korea to join the Science-Based Targets Initiative (SBTi) and submit its greenhouse gas reduction targets. By 2030, Hankook Tire aims to achieve a 46.2% reduction in the total amount of direct greenhouse gas emissions (scope 1) and indirect greenhouse gas emissions (scope 2) generated during the production stage, compared to 2019 figures. Additionally, the company has set a target to reduce the total amount of greenhouse gas emissions (scope 3) generated throughout the value chain by 27.5% compared to 2019 figures. Hankook Tire plans to reduce greenhouse gas emissions across various aspects in major business activities, including product production, raw material acquisition, distribution, and investment over the medium to long term.
To help take the lead in low-carbon management, Hankook Tire extended the scope of its activities in May by partnering with Kumho Petrochemical Co., Ltd. to develop tires that utilize an eco-friendly, high-performance synthetic rubber called Eco-SSBR.
Hankook Tire is also committed to developing more sustainable products. The company is putting its efforts towards minimizing the environmental impact of its products, from raw material acquisition and manufacturing to usage and disposal. Hankook Tire has made significant progress in preserving natural resources and reducing carbon emissions by excavating sustainable resources and developing implementable technologies in the design and raw material acquisition phases.
At the same time, Hankook Tire is dedicated to innovating technologies that enhance the competitiveness of the future mobility industry. Currently in-process is its intelligent tire technology, which utilizes sensors embedded within the tire to detect parameters such as air pressure and tread wear, and the i-Flex, a non-pneumatic tire. Last year, Hankook Tire also gained significant attention from the industry. For instance, WheelBot, a modular spherical wheel robot that optimized for future smart cities, has been successfully brought to life and has garnered great interest in the field.
Furthermore, Hankook Tire is actively involved in establishing a sustainable supply chain, implementing human rights management, fostering employee well-being, and engaging in social contribution activities to build a more sustainable future.
As part of these efforts, Hankook Tire has been conducting various social projects under the slogan “Driving Towards Happiness.” In line with this, Hankook Tire launched a driving school at the Daejeon Traffic Culture Institute in August 2022 to provide diverse educational content to underprivileged children. Since 2013, Hankook Tire has been organizing an annual traffic safety campaign specifically for children, contributing to safer school commutes. Hankook Tire continues to actively fulfill social responsibility through ongoing employee volunteer activities, including participation in afforestation and mural painting campaigns.
More information about the ESG report is available at Hankook Tire’s website (https://www.hankooktire.com/global/en/esg/esg-report.html) under the ESG menu. The report is available in an online publication format and can also be downloaded as a PDF.
Hankook Tire has been included in the Dow Jones Sustainability Indices (DJSI) World – the highest class in the world’s most prestigious sustainability index – for seven consecutive years, further solidifying its position as a leading global ESG company.