Creating values with ESG activities

We pursue growth that creates sustainable values with our stakeholders, including customers, shareholders, business partners, employees and communities. All of us at Hanwha are working together to introduce sustainable principles and systems as we practice sound and responsible management by ushering in ESG (Environmental, Social and Governance) initiatives.

Taking a step beyond corporate growth, we aim to fully internalize our ESG values, which will allow us to grow harmoniously with the environment and society, while strengthening our global competitiveness in each industry.

Strengthening ESG management

In 2021, to promote deeper understanding and encourage full implementation of ESG management, Hanwha established ESG committees for each of our seven listed affiliate companies and two non–listed affiliate companies. As the highest decision–making body overseeing ESG management activities, our ESG Committees develop basic ESG–centric policies and strategies as well as review our mid– to long– term goals of responding to climate change, ensuring workplace safety, fulfilling social responsibilities and increasing stakeholder engagement and governance.

In order to encourage more diverse and professional discussions about ESG, more than two–thirds or all of members of each committee are outside directors. The Hanwha Group ESG Committee works to improve the ESG–management system within Hanwha Group and to support affiliate ESG–management activities by helping establish strategies for each business area, sharing information and providing professional training in ESG–related seminars and workshops.

Earning Grade A ESG ratings

Through our efforts to actively implement ESG management, we received an overall Grade A rating for five of the listed Hanwha affiliate companies by the 2021 environmental, social, and governance (ESG) ratings of the Korea Corporate Governance Service (KCGS). In the environmental category, six of the affiliates, including Hanwha Life, received a Grade A for their excellent responses to environmental issues. In the social category, four of the affiliates, including Hanwha Solutions and Hanwha Life, received a Grade A+ for their work in social responsibility and expanded stakeholder communications.

Hanwha Solutions was also recognized for the third consecutive year by the CDP (formerly the Carbon Disclosure Project), a global nonprofit organization, for its carbon emissions management performance, earning a Grade A- for its leadership in responding to climate change. Based on these achievements, Hanwha Solutions received awards in three categories in the 2023 CDP Korea Awards, including the Carbon Management Honors Club, which was given to the top six companies. Hanwha Corporation and Hanwha Aerospace also earned Grade A- from CDP and received Carbon Management Sector Honors, recognizing their leadership in the industrial materials sector.

Collaborating to support UN SDGs

Hanwha is a firm supporter of UN SDGs, particularly those we can directly address through our business, technology and social impact activities. Our primary areas of focus are SDG 7 (Affordable and Clean Energy), SDG 8 (Decent Work and Economic Growth), SDG 12 (Responsible Consumption and Production), SDG 13 (Climate Action) and SDG 17 (Partnerships for the Goals). We are actively engaged in each ESG area, working together to achieve a sustainable future for humankind.