Global leading tire company Hankook Tire announced the establishment of a corporate governance charter to enhance transparent environmental, social and governance (ESG) management and lay the groundwork for the company’s sustainable business. The charter was approved at the board meeting held on May 9.
The corporate governance charter will ensure professionalism and independence of the board of directors, and promote the rights and interests of all stakeholders including shareholders, consumers, and members. It contains regulations on the rights and responsibilities of shareholders, roles and operations of the board, a structure of audit institutions, protection of rights of stakeholders, and disclosure. The content will be accessible for all shareholders on Hankook Tire’s website, as well as on Korea’s Financial Supervisory Service’s (FSS) Data Analysis, Retrieval and Transfer System (DART).
The ESG committee was launched in July 2021 within the board of directors to strengthen the company’s ESG management strategies and activities. Currently, five operating units are affiliated within the board including the ESG committee, audit committee, outside director nomination committee, sustainable management committee, and internal transaction committee.
In an effort to enhance the expertise and function of the board, the committee will consist of three or more directors, with a majority of its members from outside the board. Mira Lee, a leader with extensive experience in corporate governance practices from global companies such as General Electric (GE) and Macquarie Group, was selected as the committee’s first chairperson. The committee, including the chairperson, consists of seven inside and outside directors.
“Hankook Tire has met many milestones in fulfilling its responsibilities and roles as a top-tier ESG company, and is saving no efforts to reach sustainable growth in areas of economy, environment, and society,” said Sooil Lee, President and CEO of Hankook Tire & Technology. “Following the enactment of the charter, Hankook Tire plans to establish sound governance with objectivity and transparency, and strengthen its ESG leadership.”
Hankook has been improving its ESG capabilities by not only establishing the ESG committee, but also sharing its vision of sustainability and publishing its annual ESG Report since 2010. These comprehensive efforts led Hankook to be recognized as a leader in sustainable management: Hankook earned the highest score in the auto components group in the Dow Jones Sustainability Indices (DJSI) World, and was included in the DJSI World for the past six years, beginning in 2016.
Source: Hankook Tire