ESG Report 2022-2023 - Flipbook - Page 37
HIGHLIGHTS
INTRO
ESG MANAGEMENT SYSTEM
Valuable Supply Chain
PRIORITY AREA
APPENDIX
Hankook Tire & Technology ESG Report 2021/22
Assisting Suppliers in Bolstering Their ESG
Competitiveness
The global spread of infectious diseases, the aggravating
the importance of supply chain management. To preemptively
Mandating ESG self-assessments in signing purchase
contracts
respond to risks that could potentially occur along its supply
We have stipulated that ESG self-assessments be made
chain, Hankook Tire & Technology is fully advancing shared
in signing purchase contracts to identify suppliers’ ESG
Identifying and managing critical suppliers
growth with suppliers through providing them with assistance
management status and assess risks associated with supply
We manage critical suppliers separately according to the set
to bolster their ESG competitiveness, along with sourcing
chain management. To raise the portion of supply chain ESG
criteria to maintain our production continuity and manage risks.
sustainable materials.
risk assessments in making purchasing decisions, we increased
Suppliers of materials that are monopolized or only provided
the ratio of ESG in comprehensive supplier assessments from
by a few vendors, heavily used or technology intensive, are
5% to 10% in 2021. Supply chain risk assessment results
considered critical suppliers. As to facilities, suppliers of facilities
help direct our efforts in providing ESG guidance to suppliers
that take extended periods of time to resolve maintenance/
in need of improvement and request for their improved ESG
repair issues, and thus have a significant impact on our
performance. Supply chain ESG assessment items are revised
production, are classified as critical suppliers. Currently, we have
annually and may be adjusted in intensity to reflect the status of
86 critical material suppliers and 26 critical facility suppliers,
issues that become increasingly significant, either domestically
and our list of critical suppliers is updated each year in line with
or internationally. In 2022, we will expand assessment items
consumption trends and conditions. In identifying and managing
corresponding to the section on human rights in line with the
critical suppliers, we diversify our supply chain, rendering it more
mounting importance they represent following the EU’s supply
reliable in the face of unexpected supply disruptions caused by
climate crisis, and tightening regulations all further underscore
321 in total
Number of suppliers
in 2021
Supplier ESG Assessment Items*
Korea’s Framework Act on Human Rights Policy.
Human rights
and labor
• Prohibit discrimination in terms of employment,
promotion, training, wages, compensation, and/or
retirement on the grounds of gender, religion, disability,
age, or place of origin
• Ban child labor & forced labor, physical punishment or
coercion and verbal violence
• Provide training on the prevention of sexual harassment
• Recognize workers’ freedom of association and collective
bargaining
Ethical
management
• Provide ethical management training
• Prohibit all forms of unethical practices including the
acceptance and offering of bribes, and unjustified related
transactions
• Operate communication channels to receive whistleblower
reports on unethical practices and to handle grievances,
protect the identity of whistleblowers
Health and
safety
• Provide health and safety training
• Conduct regular checks on the work environment and
areas in need of safety checks
• Check to ensure the availability of PPE and compliance
with its use
• Conduct regular firefighting drills (emergency evacuation
or fire extinguishing exercises)
Environment
and GHG
• Provide training on environmental management
• Properly process air/water pollutants and waste
• Reduce energy consumption or GHG emissions
Supplier
management
• Demand critical suppliers to improve their management
of human rights, labor, ethics, health & safety, the
environment, and climate change
Purchase Breakdown by Region (unit: %)
OECD region
Non-OECD region
28.7
Target
100
2030
Korea
31.9
1.4
China
Others
5.4
Indonesia
19.5
72.8
94
77.9
2019
2020
2021*
3.2
Others
Hungary
6.3
3.6
US
* Ratio of suppliers which received ESG assessments in 2021: 70.1%
chain due diligence regulations for corporate sustainability and
the recent logistics crisis and the pandemic.
Ratio of suppliers who received ESG assessments over
the last 3 years (unit: %)
Hankook Tire & Technology aims to reach
100% in the ratio of suppliers that receive
ESG assessments by 2030.
37
Others
56.8
43.2
Non-OECD
OECD
* In selecting suppliers and extending their contracts, those rated Yellow (60 points) and
above in ESG ratings are given precedence, and measures are developed to improve
ESG ratings for those rated Red (below 60 points or not evaluated).