Hyosung Chemical's identity as "The next-generation integrated chemical materials leader creating a better futureThe Next Chemistry" is deeply intertwined with its serious consideration of environmental issues and commitment to responsible corporate actions. The company recognizes that in the face of an accelerating climate crisis, the only viable way to sustainably enhance human potential is pursuing environmental values. Let us introduce Hyosung Chemical’s green strategies, which focuses on researching and developing products beneficial to both the planet and its people." 

Hyosung Chemical's ESG Management for all Generations’ Future 

In line with the broader environmental concerns shared by many global companies, Hyosung Chemical is deeply invested in its environmental responsibilities and actively engaging in meaningful actions. The essence of the HYOSUNG’s ESG brand, "RE:GEN - Reply to Every Generation’s Future", is reflected in Hyosung Chemical's ESG management, reflecting a firm commitment to environmental protection and a sustainable future. 

At the heart of Hyosung Chemical's product range are polypropylene (PP), high-purity terephthalic acid (TPA) - the main ingredient in polyester products - and PET and nylon films for industrial, packaging and optical applications. Specialty gases such as nitrogen trifluoride (NF3) and TAC films used in semiconductors and displays, as well as the environmentally friendly polyketone material ENPLA, underline the company's focus on recycling, carbon neutrality and the reduction of harmful substances. Understanding the intrinsic connection between what the company does and environment, Hyosung Chemical is actively engaging in environment-focused activities to solidify its position as ‘Chemicals that Develop Possibilities in Every Generation’s Future and Remove Threats. 

* Hyosung Chemical’s ESG Brand Vision 

** Hyosung Chemical’s ESG Brand Essence 

Hyosung Chemical's Journey to Saving the Environment 

So, what eco-friendly strategies is Hyosung Chemical implementing in its major Product Unit (PU)? And what values do Hyosung Chemical's PUs collectively embrace and pursue in solidarity for the overarching goal of 'environment'? The following sections outline the specific green strategies of each PU, one by one. 

● PP/DH PU | Hyosung ECO-PP Initiative  

In anticipation of stringent environmental regulations in Europe and North America, Hyosung Chemical's PP/DH PU has proactively developed strategies to address these impending changes. Recognizing the potential future trade barriers posed by environmental legislation, the PU has launched pilot trials to collect and recycle post-consumer plastic food containers at 30 stores in the Jamsil Baseball Stadium in Seoul. A sustainable business division, together with the customer technical support team, has initiated recycling efforts by producing reusable PP cups that can be ground and recycled after use. In addition, the PU is involved in the collection and recycling of used ropes as part of the recycling of marine resources, converting them into products for industrial use. 

Through these efforts, Hyosung Chemical has introduced sustainable ECO-PP, a PCR (Post Consumer Recycle) PP developed for the planet’s sustainable future, which converts discarded plastics into high-quality recycled polypropylene. The production of ECO-PP requires the establishment of a "recycling loop" system in which used PP containers from various places such as coffee shops, cultural venues, and sports stadiums are collected, cleaned, shredded and re-extruded. This recycling loop ensures the production of PCR PP, which is used in various containers and household goods. Concerns about the quality of recycled materials are merely unfounded doubts. Through the accumulated technological prowess of Hyosung Chemical, ECO-PP, born from their expertise, not only matches the quality of newly-produced materials but also boasts excellent processability, high transparency, and physical stability. 

As environmental regulations, such as the European Union (EU) mandating a 50% recycling obligation for plastic packaging waste by 2025, become stricter, the use of recycled materials has become a crucial factor directly impacting companies' competitiveness. Hyosung Chemical's PCR PP has obtained the GRS (Global Recycled Standard) certification, an international certification that verifies the use of recycled materials in product production, ensuring consistency and transparency in the product manufacturing and management structure. 

● POK PU | Expansion of Eco-Friendly Polyketone Materials  

Hyosung Chemical's POK PU is dedicated to building its proprietary eco-friendly brand asset as the world's first commercially successful polyketone. To achieve this, Hyosung Chemical promotes the exceptional material advantages and eco-friendliness of POKETONE™, the company’s polyketone brand, through its website (poketone.com/kr). POKETONE™ is the only engineering plastic with a carbon-based backbone, offering outstanding impact resistance, abrasion resistance, and chemical resistance, while being safe for human contact. Leveraging these advantages, POKETONE™ serves various purposes including food contact, industrial applications, automotive and battery components, as well as extrusion applications such as pipes and films. 

POKETONE's eco-friendliness can be confirmed by its low Global Warming Potential (GWP). Compared to other engineering plastic materials, its CO2 emissions per kilogram are only about half, resulting in a significantly lower GWP. As the demand for POKETONE increases in the future, it is expected that its production volume will also increase, leading to even lower GWP figures. Additionally, while POKETONE currently sources carbon monoxide (CO) from CO production facilities, the expectation is that as technology for capturing and utilizing CO from the atmosphere becomes commercially available, Hyosung Chemical's production of POKETONE will become even more environmentally friendly. Furthermore, preparations are being made to transition from conventional ethylene to bioethylene as another raw material, in anticipation of growing demand for eco-friendly materials. 

▲ Neochem PU Factory of Hyosung Chemical 

● Neochem PU | A Goal to Develop GWP Zero Gas 

Hyosung Chemical's Neochem PU, responsible for the production of NF3 (nitrogen trifluoride), which is essential for the manufacture of semiconductors and displays, recognizes that NF3 may be classified as a greenhouse gas due to its global warming potential. In response to this challenge, the PU is committed to developing alternative gasses and reducing carbon emissions from production activities.  

Furthermore, the ultimate goal is to develop gasses with zero GWP. Additionally, the aim is to practice carbon emission reduction by consuming electricity more efficiently in the NF3 production process and actively promote the use of environmentally friendly alternative energy sources. It's also a crucial objective for the PU to restructure the production process to be more environmentally friendly. 

● Film PU | R&D of Recycle Film  

Hyosung Chemical's Film PU anticipates that the market trend will gradually reduce film consumption in the long term. As consumer trends shift towards eco-friendliness, the usage of plastics and disposable films is expected to decrease. In line with this trend, Film PU aims to respond to the growing demand for post-consumer recycling. The PU seeks to transition its paradigm towards a recycling-centric approach, focusing on product collection and recycling. As part of this effort, the PU is researching a recycling process that converts discarded PET film products, which do not meet Grade A standards, into recycled chips for use as raw materials in Grade A products. If research and development progress smoothly, the possibility of sample production and commercialization is expected to be considered by the end of this year. 

● Optical Film PU | Emphasis on Eco-Friendliness in Raw Materials and Production Processes  

In the case of Hyosung Chemical's Optical Film PU, the raw material for its main product, TAC film, is cellulose extracted from cotton, which makes the product inherently eco-friendly. Additionally, efforts are made to pursue environmental friendliness in the production process, such as replacing plasticizers that provide flexibility to the product with those that are free of environmentally harmful substances. Furthermore, efforts are being made to obtain recycling certifications for recycling processes and to continuously explore energy-saving technologies by examining potential waste factors in the energy consumption during the product manufacturing process. 

● Company-Wide Climate Change Response Initiatives | Creating Hydrogen Ecosystem Development, Carbon Capture, and Specialized Training in Greenhouse Gas Emission Management 

In addition to the activities of individual business units, Hyosung Chemical is actively promoting initiatives to combat climate change on a company-wide scale, such as the promotion of a hydrogen ecosystem, carbon capture and specialized training in greenhouse gas emission management. 

Hyosung Chemical and Hyosung Heavy Industries, in collaboration with the global gas company Linde Group, have embarked on establishing a domestic hydrogen ecosystem by constructing a system to separate carbon dioxide emitted from the Hyosung Chemical Yongyeon plant and process it into liquefied hydrogen. They are currently constructing Liquid hydrogen plant with an annual production capacity of 13,000 tons at Yongyeon plant site. Additionally, they are installing pilot facilities using CO2 cooling separation technology with liquid nitrogen, conducting commissioning, and verifying the feasibility of carbon capture performance. Through these efforts, they plan to evaluate the feasibility of a carbon capture process with an annual capacity of 100,000 tons in the medium to long term. 

▲ Hyosung Group's Hydrogen Business Value Chain Construction Plan 

Furthermore, Hyosung Chemical conducts education sessions for site personnel responsible for reducing greenhouse gas emissions at the company's facilities. These sessions cover methodologies and trends in emission reduction technologies. In addition to internal training aimed at enhancing the practical skills of personnel, the company also conducts case studies of emission reduction efforts by other companies through external consulting firms. This professional training includes the validation of internal emission reduction proposals to ensure their feasibility. 

Hyosung Chemical's Eco-Friendly Strategy: Opening the Door to 'Next-Generation-ness' 

As witnessed through various examples, Hyosung Chemical's key products are used for diverse purposes in various applications, all while focusing on the common goal of "environmental friendliness." Each product strives to contribute the best environmental efforts tailored to its specific circumstances. Through these collective efforts, Hyosung Chemical's direction is defined by one keyword: "Next-generation-ness." This entails developing products that 1) has less environmental effect, 2) meets increasingly stringent customer demands, 3) achieves technological advancements to a more detailed area that go beyond current achievements, and 4) has an exceptional expandability, which would be the collective goal of all PUs and members of Hyosung Chemical, as well as the fruitful result of their pursuit of “Next-generation-ness.” 

Hyosung Chemical will continue to pursue the values of "The Next Chemistry" through sustainable and environmentally friendly research and development of technologies and products. As the company strives to introduce new chemical materials to its customers in safer and more sustainable ways, your continued support and interest in Hyosung Chemical's eco-friendly initiatives is sincerely appreciated.