#1. Each year, Morgan Stanley Capital International (MSCI), a leading global index provider, assesses the ESG capabilities of publicly traded companies. This prestigious evaluation, which has been conducted since 1999, examines ten themes and 35 key issues within the environmental, social, and governance areas. In November 2023, Hyosung TNC received an AA rating for its 2022 performance, positioning it among the top leader group in the global raw materials and chemicals sector. This marked a two-notch improvement from the previous year (BBB rating), driven by proactive measures in climate change adaptation and carbon reduction. Hyosung TNC achieved top scores in four categories: carbon emissions, toxic substances and waste, water scarcity, and chemical hazards. Additionally, in the 2023 evaluation by the Korea Corporate Governance Service (KCGS), Hyosung TNC received an overall A rating for the third consecutive year. 

#2. The Carbon Disclosure Project (CDP) is a global climate change initiative conducted across 91 countries. In 2023, approximately 23,000 companies (including 211 from South Korea) disclosed their greenhouse gas emissions, climate change risks and opportunities, and carbon management strategies through CDP. In March 2024, at the 'Climate Change Response and Water Management Excellence Awards' hosted by the CDP Korea Committee, Hyosung Chemical and Hyosung Advanced Materials were honored for their achievements. Hyosung Chemical received the 'Carbon Management Sector Honors' for climate change response, while Hyosung Advanced Materials was awarded a 'Special Prize' for water resource management. Additionally, Hyosung Heavy Industries received a 'Leadership A-' rating from CDP in 2022, reaffirming its position as a leading company in low-carbon management. 

What Earned High Scores from Global Institutions 

▲ Hyosung recognized for its ESG management efforts at the '2023 CDP Korea Awards' 

MSCI highlighted Hyosung TNC's development of sustainable products and its efforts in energy efficiency and carbon management. Hyosung TNC proactively implemented an IT-based carbon asset management system to effectively monitor greenhouse gas emissions at its facilities and established a carbon footprint assessment process. Despite the relatively low environmental awareness in the early 2000s, Hyosung TNC led the recycling and biofiber business with its eco-friendly fiber brand 'regen' and spearheaded ESG campaigns, creating a healthy corporate ecosystem. 

CDP praised Hyosung Chemical and Hyosung Advanced Materials for their systematic execution of carbon strategies. Hyosung Chemical formed a dedicated team to identify carbon reduction measures and set key performance indicators (KPIs). Hyosung Advanced Materials demonstrated its commitment to climate change response and water resource protection by achieving a B rating for water and waste management, following its recognition in 2020 with the 'Carbon Management Honors Club' and the 'Carbon Management Sector Honors' for its efforts in climate change response. 

Beyond Commitment: Vision for Pioneering the Future with 'RE:GEN’ 

Hyosung's achievements in ESG do not stop here. Hyosung Advanced Materials was included in the '2023 Dow Jones Sustainability Index (DJSI) Korea' for the first time. The company received high marks for improving climate change response capabilities, developing sustainable products, establishing and strengthening sustainable management organizations, and fostering collaborative relationships with partners. Additionally, it received the Gold Medal rating from EcoVadis, a global ESG supply chain evaluation agency, for three consecutive years until 2023. This places Hyosung Advanced Materials in the top 1% of the textile industry and the top 3% of all companies evaluated globally. 

▲ Hyosung Advanced Materials was included in DJSI Korea for setting global reduction goals, developing low-carbon products, and making efforts for biodiversity conservation  

These external evaluations reflect HYOSUNG’s systematic and multifaceted approach to ESG management over many years. HYOSUNG’s ESG brand, 'RE:GEN,’ embodies the company's commitment to addressing global issues and proposing better solutions for a safe and prosperous world. Going beyond mere declarations, HYOSUNG is setting detailed goals under five themes: Recycling, Upcycling, Carbon Reduction, New Energy, and Resource Saving. 

Furthermore, HYOSUNG has established a company-wide governance system to address climate change. In 2021, the company expanded the Transparent Management Committee, which previously focused on governance, to include environmental and social issues, launching the ESG Management Promotion Committee. This committee actively deliberates on ESG policy development, investments, and plans related to environment, safety, and climate change preparedness. 

Goal to Reduce Greenhouse Gas Emissions by 2030 

In 2020, HYOSUNG announced its 'Green Management Vision 2030.' Building on this vision, the company has been expanding sustainable products across all business sectors and exploring new markets, particularly focusing on reducing greenhouse gases by introducing relevant facilities and improving processes. A carbon asset management system allows HYOSUNG to monitor real-time allocation, planning, and actual emissions by facility. 

For instance, Hyosung TNC raised the cooling water temperature at the Gumi plant to reduce refrigeration load and improved dryer facilities at the Ulsan plant to minimize air loss. Hyosung Advanced Materials, dedicating about 30% of its R&D budget to sustainable technologies and products, upgraded processes to reduce steam usage and implemented integrated operation of waste heat recovery from incinerators. 

▲ Hyosung Heavy Industries commercialized the world's first hydrogen engine generator, a key component in next-generation carbon-free power development 

The company is also expanding its use of renewable energy. Hyosung Heavy Industries is leading the green technology sector with renewable energy generation systems, including high-efficiency solar inverters and a diverse lineup of wind turbines, as well as creating a hydrogen energy ecosystem to achieve carbon reduction. The hydrogen liquefaction plant, established in partnership with Germany's Linde Group, can produce 13,000 tons of liquefied hydrogen annually, with plans to increase production capacity to 39,000 tons. Furthermore, HYOSUNG aims to complete a hydrogen value chain across its subsidiaries—Hyosung Chemical (hydrogen production), Hyosung Advanced Materials (carbon fiber for hydrogen storage tanks), and Hyosung Heavy Industries (hydrogen refueling stations). 

ESG: A Key Element of Global Competitiveness 

To achieve pro-sustainability environment, improving internal awareness is essential. HYOSUNG conducts climate change education for its employees and supports site managers in learning about greenhouse gas emission methodologies and reduction technology trends. 

The company transparently shares its ESG management activities with stakeholders. In October 2022, HYOSUNG’s ESG Management Promotion Committee declared its support for the Task Force on Climate-related Financial Disclosures (TCFD). Established by the Financial Stability Board (FSB) during the G20 Finance Ministers and Central Bank Governors meeting, TCFD is a global initiative with participation from 3,400 institutions and companies worldwide. This declaration marks HYOSUNG’s commitment to leading global standards in ESG management. 

HYOSUNG is exploring climate change strategies focused on carbon reduction and sustainable business across its core sectors, including textiles, heavy industries, chemicals, and advanced materials. Moving forward, HYOSUNG remains dedicated to fulfilling its ESG responsibilities and transforming the climate crisis into new opportunities. We appreciate your unwavering support as HYOSUNG navigates this critical journey.