Dec 12, 2022

Hankook Tire Named to Dow Jones Sustainability Indices World for the Seventh Consecutive Year

Leading global tire maker Hankook Tire continues to solidify its Environmental, Social and Governance (ESG) leadership, earning its seventh consecutive listing in the esteemed Dow Jones Sustainability Indices (DJSI) for industry-leading sustainability.

The most authoritative sustainability assessment index globally, DJSI World represents the top 10% of the world’s 2,555 largest companies in the S&P Global BMI with leading performance in economic, environmental and social impact. This year, the list included 326 companies worldwide: 12.8% of the top 2,555 global corporations. Hankook Tire represents the Korean auto components industry alongside Hyundai Mobis.

Hankook Tire has been acknowledged as a pioneer in leading the future of the industry after seven years of inclusion in DJSI World, as a result of its continuous efforts to strengthen ESG management. This year, the company recorded its highest score since the inception of DJSI, achieving high ratings in a variety of areas including corporate philanthropy, human rights, supply chain management, and R&D innovation.

Through eight committees in each of its areas of expertise, Hankook Tire has consistently communicated its sustainability initiatives to its employees and improved its company-wide ESG standards. In 2021, the company organized an ESG Committee within the board of directors to strengthen ESG management. This year, through the formation and announcement of its Corporate Governance Charter, Hankook declared its intention to create, maintain, and develop an advanced governance structure.

Hankook Tire is consistently striving to achieve a sustainable value supply chain. In order to guarantee the economic, social, and environmental sustainability of the natural rubber value supply chain, the company established sustainable natural rubber policies in 2018. Later in 2021, these policies were revised in line with the guidance of the Global Platform for Sustainable Natural Rubber (GPSNR).

The company also leads in the practice of circular economy. Earlier this year, Hankook Tire became the first Korean tire manufacturer to join the Science Based Targets Initiative (SBTi) and submitted a mid- to long-term greenhouse gas reduction objective based on scientific evidence as part of the global effort to achieve carbon neutrality.

This indicates that the total amount of direct greenhouse gas emissions (Scope 1) and indirect greenhouse gas emissions (Scope 2) generated in the production phase will be reduced by 46.2% in 2030 compared to 2019. In addition, the total amount of greenhouse gas emissions generated in the value chain (Scope 3) will be reduced by 27.5% by 2030 compared to 2019, reducing all greenhouse gases caused by production and major business activities such as raw material extraction, distribution, and investment in the mid- to long-term.

Under the slogan “‘Driving towards Happiness,” Hankook is carrying out its social responsibilities through various social contributions and activities for coexistence with local communities.

Hankook Tire’s ongoing efforts to strengthen ESG management have been highlighted by its first incorporation in DJSI Korea in 2011 and joining DJSI World for 7 consecutive years, beginning in 2016. With the goal to lead future growth as a leading global tire company, Hankook Tire plans to manage its financial performance and a variety of activities, such as corporate philanthropy and environmental management, with a systematic framework to continue its global top-tier sustainability management capabilities.

The Dow Jones Sustainability Indices is the most respected global index for sustainability rating and investment. It lists outstanding companies by comprehensively evaluating corporate management activities in various aspects such as financial performance, social contribution activities, ethical management, and environmental management. The DJSI was jointly developed in 1999 by S&P Dow Jones Indices, the world’s largest financial information company, and S&P Global Switzerland SA (formerly SAM), a global sustainability rating agency.

Source: Hankook Tire

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