ESG Report 2022-2023 - Flipbook - Page 38
HIGHLIGHTS
INTRO
ESG MANAGEMENT SYSTEM
PRIORITY AREA
APPENDIX
Hankook Tire & Technology ESG Report 2021/22
Shared Growth
Strengthening the on-site audits of suppliers
Managing high risk suppliers
Supplier networking events
Supplier on-site audits are designed to thoroughly follow up on
We have established a follow-up management process for high-
As a company that has grown hand-in-hand with its suppliers,
the ESG self-assessments made by suppliers. Our professionally
risk suppliers identified from supply chain assessment results.
Hankook Tire & Technology holds supplier networking events
trained in-house ESG experts conduct audits on suppliers for
This process is initiated with on-site audits performed by relevant
to build consensus with suppliers and forge flourishing
their performance in the areas of human rights & labor, ethical
departments to provide customized improvement guides at
partnerships. These events not only serve to engage in regular
management, health and safety, environment & climate change
the department level, and progresses to develop corrective
dialogue and free-flowing communication with suppliers, but
and sustainability as well as their establishment of relevant
measure plans and review the validity of improvement plans.
also enable us to instantly collect their difficulties, suggestions
regulations and procedures, while they are guided with the
Development work has been underway in 2022 to systemize this
or ideas so that we can reflect them into our operations. As
necessary improvements. In 2021, these audits were performed
entire process. In the event that a supplier is classified as being
part of such events, we award suppliers rated excellent in
in written or virtual format due to the limitations associated with
high risk over a period of three years despite the implementation
comprehensive supplier assessments. In 2021, a total of 12
COVID-19. As virtual audits were positively welcomed by both
of such improvement activities, we take a strict approach of
supplier networking events were hosted, and with the easing
auditors and suppliers, we are considering the expansion of
suspending any further business with them.
of social distancing rules in 2022, we plan to hold at least 20 or
audits conducted through virtual means in the upcoming years.
more such events. As communication is facilitated through these
events, our suppliers are more satisfied and the path to pursuing
Conflict mineral monitoring
While Hankook Tire & Technology does not directly use conflict
shared growth is further reinforced.
minerals, the Company is clearly aware that a portion of its raw
ESG training for suppliers and ethical management letters
and subsidiary materials use or contain such minerals and has
We have been supporting the ESG management of our supplies
developed its own conflict mineral policy to verify the country
who lack training infrastructure with training since 2021, and
of origin of minerals and review suppliers in this regard. As a
conducted paper-based training amid COVID-19. Along with
result of monitoring evidence and the risk assessment process
ESG training, we also sent our suppliers the E-Ethics Letter that
concerning conflict minerals, it was revealed that some specific
provides a more in-depth look at ethical management case
suppliers had issues: we immediately responded by suspending
studies to assist their ESG capabilities and ethical management.
transactions with the concerned suppliers and replacing the
materials in question with alternatives. In addition to the four
conflict minerals of 3TG (tin, tantalum, tungsten, and gold),
we are considering expanding the scope of our management
to include cobalt known for its association with human rights
violations and labor exploitation.
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