ESG Report 2022-2023 - Flipbook - Page 39
HIGHLIGHTS
INTRO
ESG MANAGEMENT SYSTEM
PRIORITY AREA
APPENDIX
Hankook Tire & Technology ESG Report 2021/22
39
Sourcing Sustainable Raw Materials
As a founding member of the Global Platform for Sustainable
Providing formic acid to smallholder natural rubber farmers ―
Increasing the ratio of raw material suppliers rated A in
ESG assessments
We focus on helping our renewable material suppliers become
Natural Rubber (GPSNR), we have been committed to
Natural rubber, a key tire material, is produced by coagulating
We manage the ratio of our suppliers who provide us with
more eco-friendly to render our supply chain carbon neutral. To
promoting the sustainability of natural rubber. We established
the liquid extracted from rubber trees. While farmers often use
sustainable materials to realize green purchasing as a way to
replace carbon black and synthetic rubber, which account for the
our sustainable natural rubber policy to elaborate on our social
acid to shorten coagulation times, some smallholder rubber
achieve carbon neutrality over the long haul. To this end, we
largest share of carbon emissions, with sustainable materials,
responsibility along the natural rubber supply chain as well as
farmers in Indonesia opt for alternative forms of acid that are
have continued to increase the ratio of raw material suppliers
we have identified new suppliers and diversified sources of
our initiatives to implement this policy in 2018. This policy was
relatively cheaper than formic acid, giving rise to issues with
rated A in ESG assessments, and such efforts resulted in 95.9%
such materials to stabilize the supply of green carbon and
supplemented by reflecting the Policy Component announced
product quality and environmental protection. To resolve this
in the ratio of such suppliers as of 2021. In 2022, we will monitor
renewable rubber. We also adopted regenerated butyl rubber for
by the GPSNR in September 2020, and the amended policy
challenge and establish a sustainable natural rubber supply
for any ratio variances as part of our natural rubber supplier
all our plants in Korea and abroad to maximize the use ratio of
was disclosed on our website in 2021. As part of our initiatives
chain, Hankook Tire & Technology has prepared to provide
assessments and adjust our target as needed.
sustainable materials. In 2021, our use of sustainable materials
to act on this policy, we created ESG assessment items for
farmers with formic acid, which generates relatively less of an
amounted to 29%.
natural rubber supply chains and made assessments accordingly
environmental impact. By providing formic acid to smallholders
in 2021 to verify our compliance with the sustainable natural
in Indonesia, we not only generated gains in natural rubber
rubber policy and prevent relevant risks. Our plan for 2022 is to
productivity and quality, but also helped farmers improve
supplement these assessment items and extend the scope of
their standard of living. The natural rubber produced as such
assessment targets.
is delivered to natural rubber processing plants with whom
Identifying renewable material suppliers and securing
proprietary technology
Operating the Sustainable Natural Rubber program
we signed long-term supply contracts to contribute to the
sustainable manufacturing of products.
Participating in a blockchain-based sustainable natural
rubber project ― We joined the PROJECT TREE, a blockchainbased natural rubber traceability and sustainability project.
Led by the international trader ITOCHU, this project aims to
enable traceability along the natural rubber supply chain from
manufacturing to sales, regulating cultivation in wildlife habitats
and peat land (wetland) by ensuring no natural rubber is sourced
from protected areas. We partner with ETEL, the largest UKbased tire distributor and sell tires manufactured under the
PROJECT TREE. The proceeds go to pursue sustainability
by supporting smallholders who cooperate in ensuring the
traceability of natural rubber, collectors, and providing local
dealers with farming equipment, fertilizers, training and
incentives.
95.9 %
Ratio of raw material suppliers
rated A in ESG assessments
in 2021