HYOSUNG has published its eighth Sustainability Management Report. HYOSUNG has long been committed to its vision of leading a better life. This philosophy has been rooted in the company’s focus on sustainable energy and technology, as well as its commitment to social contributions even before sustainable management became established. To secure the future of the company, HYOSUNG has set objectives for Green Management 2030 (E), Human Rights Management, Occupational Health and Safety, and Community Coexistence 2030 (S), as well as strengthening Sustainable Management Leadership and Ethical Management (G). 

▲ HYOSUNG’s 2023 Sustainability Management Roadmap 

A three-phase sustainability management roadmap has also been established to be achieved by 2030. By 2023, the goal was to build a sustainable management system, establish roadmaps for various sectors, and set performance indicators. In Part 1 of the review, we will examine the product and technology development areas of the "2023 Sustainability Management Report," which will serve as a milestone for future strategic realignment. 

A Hopeful Future Built on HYOSUNG’s R&D DNA 

In the face of the climate crisis, providing sustainable products and services has become a fundamental responsibility. HYOSUNG is promoting sustainability management across various areas, including greenhouse gas reduction, water quality and biodiversity preservation, and the circular economy. In 2023, HYOSUNG established its own sustainable product and service classification system that reflects the green classification system, enhancing transparency and laying the groundwork for innovation. Additionally, the company supported the maintenance of GRS certification for textile products and the acquisition of certification for raw material suppliers, creating various mechanisms for society and the environment. 

HYOSUNG has consistently invested in sustainable technologies, channeling KRW 11.6 billion into research on new materials, recycled, and bio-based materials. As a result, sales of recycled and bio products in 2023 increased by 79% compared to the previous year. 

Hyosung TNC: Sustainable Solutions 

Hyosung TNC, which has firmly maintained its position as the world's No.1 producer of spandex, has made significant changes throughout its product manufacturing and supply chain. As stakeholder demand for sustainable raw materials increases, Hyosung TNC has effectively communicated the competitiveness of its sustainable products by categorizing them under the name "Sustainable Solutions," based on standards such as the EU Taxonomy, K-Taxonomy, and various eco-certifications. These Sustainable Solutions are classified into two categories: 

▲ Hyosung TNC's Sustainable Solutions 

The first category is "regen." regen refers to the product line produced using recycled materials or renewable bio raw materials extracted from plants. The regen product line has been proven to reduce carbon emissions compared to products made from fossil fuels through Life Cycle Assessment (LCA) evaluations. The second category, "regen tech," focuses on minimizing negative environmental impacts during the production stage. For example, regen black is a dope dyed yarn product that does not require a separate dyeing process, thereby saving water. 

Hyosung TNC is expanding its overseas plants and implementing strategies for the development and commercialization of recycled and bio-based products to increase sales of its "Sustainable Solutions." Consequently, the proportion of Sustainable Solution sales within total yarn product sales has been increasing since 2021, reaching 5.2% in 2023, with a target of 16% by 2030 through ongoing product and technology research. 

The technologies driving Hyosung TNC's growth in the sustainability sector can be broadly categorized into two areas. The resource recycling technology involves collecting waste generated by consumers or during manufacturing processes to produce yarns made from recycled polyester and nylon chips. Representative products include regen Nylon, regen Ocean Nylon, regen Polyester, and regen Ocean Polyester. 

The bio raw material utilization technology focuses on replacing chemicals derived from fossil fuels with plant-based chemical substances to develop sustainable textile yarns. This approach minimizes resource depletion and environmental pollution. In addition to regen Bio-Based Spandex, Hyosung TNC is developing proprietary technology for producing BIO  BDO from fermented sugarcane, which is scheduled for commercialization in 2026. 

Hyosung Heavy Industries: Providing Next-Generation Power Grids and Renewable Energy Solutions 

Hyosung Heavy Industries, which engages in industrial power equipment and construction projects, has also made multifaceted efforts to reduce environmental impact. In 2023, the company developed a 72.5kV Gas Insulated Switchgear (GIS) using Vacuum Interrupters (VI) and dry air. Traditionally, GIS employs SF6 gas, a substance with a very high global warming potential. By replacing this gas, the company aims to decrease its negative environmental impact. 

Additionally, Hyosung Heavy Industries provides renewable energy connection solutions utilizing Energy Storage Systems (ESS) and STATCOM to enhance energy efficiency. ESS devices store electricity according to demand and allow for its use when needed, thereby improving energy efficiency and enabling stable power supply. STATCOM is a power device that controls system instability in transmission and distribution networks, maximizing transmission capacity while producing core components in-house and offering comprehensive solutions. 

▲Hyosung Heavy Industries' Hydrogen Value Chain 2030 Roadmap 

Hyosung Heavy Industries has also strengthened its hydrogen value chain, which encompasses production through to utilization. The company has been selected as a liquefied hydrogen supplier for commercial vehicles and is currently constructing eight liquefied hydrogen refueling stations with an investment of KRW 92 billion as of April 2024. Furthermore, the company has developed a hydrogen engine generator that operates 100% on hydrogen without other fuels such as natural gas or coal, achieving the world’s first commercialization of this technology. 

▲Hyosung Heavy Industries' Green Building and Energy Efficiency Improvements 

In the construction sector, efforts are made at every stage from design to construction to minimize environmental impacts. The company has obtained Green Building Certification (G-SEED) by reducing negative environmental effects during the construction process, with three buildings completed in 2023 receiving excellent and general grades. Additionally, the company has created biotopes in residential complexes and installed daylight control louver systems to utilize natural light for indoor lighting energy. The 'Smart Harrington' platform has also been applied to effectively manage energy consumption in multi-family housing. 

Hyosung Heavy Industries plans to carry out its mission of being the ‘Total Energy Solution Leader for Tomorrow’ through the development of environmentally conscious products and technologies. 

HS Hyosung Advanced Materials: Efforts to Minimize Environmental Impact from Raw Materials to Waste 

HS Hyosung Advanced Materials holds a dominant position as the No.1 producer of tirecords, used in one out of every two vehicles worldwide. With the recent expansion of demand and regulations for low-carbon products, HS Hyosung Advanced Materials is innovating across its entire production process. 

As part of this initiative, the company has reorganized its management system for sustainable products. This restructuring allows for objective validation of sustainability by comparing with existing products. Additionally, the company produces products that minimize negative environmental impacts throughout the entire lifecycle, measuring these impacts through Life Cycle Assessment (LCA). 

To transition to sustainable raw materials, HS Hyosung Advanced Materials is expanding its use of recycled and bio-based materials, while also optimizing processes and developing related technologies. To minimize environmental impact during usage, the company produces dope dyed yarn products that do not require additional dyeing processes. The carbon fiber TANSOMEⓇ is used in CNG for vehicles and high-pressure containers, contributing to weight reduction as well as greenhouse gas emission reduction. Furthermore, the company has developed Ultra-Tensile steel cords that reduce the weight of automobile tires. 

In 2023, the revenue from sustainable products reached KRW 204.9 billion, with an investment of KRW 3.3 billion in sustainable research and development. The company has set goals to transition its flagship products—tire reinforcing materials and industrial yarns—to sustainable raw materials. By 2050, it aims for 100% conversion of tirecords to recycled and bio-based PET, and by 2030, it plans to transition industrial yarns to recycled and bio-based materials. 

Hyosung Chemical: Expanding Low-Carbon and Bio-Based Product Production and Managing Pollutants 

▲ The manufacturing process of pallets made from recycled plastic waste by Hyosung Chemical 

Hyosung Chemical has made 2023 a remarkable year by focusing on low-carbon, recycled, and bio-based products, energy efficiency, and pollutant management. The company has increased production of environmentally-conscious products, including polyketone and TAC films, and concentrated on recycling waste plastics. As of 2023, it sold approximately 15 tons of PCR-PP disposable pallets and plans to expand this business to an annual scale of 3,000 tons. 

Hyosung Chemical has developed a submerged water purification treatment technology for using river water as drinking water, pressurized membrane filtration water treatment technology, and a two-stage submerged water purification treatment system, which has received environmental new technology certification and is utilized in several water purification plants. 

To minimize environmental impacts during the production process, the company manages operations with safety principles and systems that are stricter than legal standards. For instance, it has replaced the toxic substance toluene, used in washing PP/DH facilities, with a non-toxic substance, naphtha, and regularly maintains and repairs its factories to prevent pollutant emissions. 

HYOSUNG is developing and implementing sustainable products and technologies, achieving both environmental conservation and industrial innovation. These efforts represent a significant step toward opening new futures for the company. In <sustainability management="" report="" review="" part="" 2="">, we will explore HYOSUNG’s diverse activities aimed at enhancing the value chain, coexistence with local communities, and workplace safety and health. </sustainability>