Creating a sustainable, healthy global community
Hankook Tire aims to fulfill our responsibility as a global corporate citizen and to achieve sustainable growth with all stakeholders. We also aim to further improve company-wide ESG initiatives through the ESG Strategy Committee as well as nine subcommittees.
To ensure that our ESG initiatives are undertaken in an integrated manner across the board, we operate the ESG Committee and seven ESG Steering Committees under the supervision of the COO. Through regular reporting and review, we strive to make achievements in accordance with the established plan.
Hankook Tire is running the committees to ensure that our ESG initiatives are seamlessly incorporated into the daily operations of our employees and are systematically undertaken. ESG Strategy Committee meetings are hosted every February and March by the senior management and relevant executives to review critical issues on the agenda discussed by the ESG committees the previous year and to make decisions on how to address these issues based on the shared the ever-so-changing internal and external ESG trends. Each responsible team of the ESG Steering Committee is then notified of such decisions and adjustments made and is requested to undertake initiatives accordingly.
As a core element to Hankook Tire ESG, the ESG Steering Committees are operated under the responsibility of a total of seven directors and executives to ensure that our ESG initiatives are undertaken in an integrated manner across the board. These Steering Committees meet individually on a quarterly basis so that the relevant departments can discuss the issues newly identified in undertaking ESG mid-/short-term initiatives while consulting on the action targets and directions for the following year. The ESG Team attends such meetings to check on the progress made and offer advices on key issues by analyzing internal·external stakeholder survey results and outcomes of the evaluations performed by external professional organizations, and by benchmarking industry leaders.
Yet, Hankook Tire & Technology has defined KPIs for each of the seven ESG Steering Committees in 2019 to set bold long-term goals for the next 10 years. These goals are aligned with the UN Sustainable Development Goals (SDGs), and our full-fledged endeavors to attain these goals will not only promote our sustainability as a company but also contribute to tackling pending global challenges and environmental issues.
Chinese ESG Committee
Our China Headquarters have established and operated their ESG committees since 2012. Currently, the Chinese ESG Committee consists of five committees around the five areas: EHS, Employees, Corporate Philanthropy, Ethics Management and Risk Management. Each committee meeting is supervised by the CHN) Corporate Strategy Team. In addition, ESG Strategy Meetings are held annually by the COO of the China Headquarters to share ESG achievements and issues of each committee and to set the direction of ESG initiatives for the following year. Furthermore, our China Headquarters has published its own independent ESG Reports: internal reports were issued in 2013 and 2014 while external reports were officially disclosed in 2015 and 2017 as a way to broaden its communication with external stakeholders.
1) HP: Jiangsu Plant, China, 2) JP: Jiaxing Plant, China, 3) CP: Chongqing Plant, China,
ESG Committee in Europe
Established in 2013, the operations of ESG Committee in Europe are composed of five areas that reflect the regional environment and conditions: EHS, Climate Change, Employees, and Corporate Philanthropy. Its ESG operations are managed on a team level in respective work areas to ensure its operational efficiency, and ESG outcomes are reported quarterly to the Hungary Plant Manager and the EUR) Administrative Management staff. Furthermore, annual ESG achievements and plans for the following year are reported each year to the COO of the Europe Headquarters, who then approves the directions to undertake ESG initiatives in the upcoming years.
M&S ESG Operation at the Indonesia Plant and in the Asian-Pacific Region
The M&S at the Indonesia Plant and in the Asia-Pacific regions have established and been phasing in their ESG Committee operations since 2014. Reflecting regional characteristics and needs, the Indonesia Plant has been actively operating in five areas: EHS, Climate Change, Corporate Philanthropy, Employees, and Ethics Management. Since 2016, the M&S in the Asia-Pacific regions has implemented ESG activities centered on ethical managements and social contributions.
Establishment of ESG Operations in America
The ESG operations at the America Headquarters and the Tennessee Plant have been established in November 2017, and we are planning to begin our ESG activities in 2018. With this, Hankook Tire has completed the establishment of ESG operations and founded the ESG infrastructure at all overseas headquarters in GHQ in 2010, China in 2012, Europe in 2013, and at the Indonesia Plant and in the Asia-Pacific Region, followed by the America Headquarters in 2014.
The ESG operational system in America was established by reflecting the specificities and considerations for the region in the same manner as the other overseas headquarters. Hankook Tire first started with a pre-diagnosis to understand the current state of the America headquarters and the Tennessee Plant. The pre-diagnosis was proceeded in the self-diagnosis format in which the employees of the primary departments in America evaluated their ESG level by answering the diagnostic form written by the ESG team. The results of the pre-diagnosis was then supplemented through on-site diagnosis and interviews and discussions with the employees; the areas of prioritized management for each business site were selected; and the ESG tasks for each area were derived.
In January 2018, a guide that thoroughly elaborates the goals to be achieved between 2018 and 2020 was distributed to the America Headquarters to establish ESG plans. The established plans are then monitored via the reports submitted by the US Strategic Planning Managing Director and the Tennessee Plant Managing Director quarterly and by the COO of the America Headquarters semiannually.