ESG Report 2022-2023 - Flipbook - Page 76
HIGHLIGHTS
INTRO
ESG MANAGEMENT SYSTEM
PRIORITY AREA
76
Hankook Tire & Technology ESG Report 2022/23
APPENDIX
Risk Management
Metrics & Targets
Describe the organization’s processes for identifying and assessing climate-related risks
Disclose the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk
management process
We periodically identify and assess climate change issues and risks in order to respond to climate change risks. The ESG team identifies climate-related risks and
opportunities, including climate change risks and internal/external issues, stakeholder requirements, and emerging issues. The identified risks are prioritized through
reviewing their possible impact, urgency, and likelihood. Key risks and opportunities are then escalated to top management and the ESG Strategy Committee and
reflected in key ESG tasks and the budget. Additional identified risks concerning institutional changes in Korea and abroad and internal/external worksite issues are also
regularly reported to responsible executives and to the CAO as deemed necessary.
In 2023, the ESG Strategy Committee analyzed the latest trends and their impact on the Company regarding the financial impact estimated from the revision of the
Emission Trading Systems, climate-related disclosure systems, supply chain management issues, and renewable energy transition policies while reporting them to the
CEO and senior management to discuss our response approaches.
We manage both total volumes and intensity as assessment metrics based on Scope 1, 2, and 3 emissions (tCO2-eq), global production volumes (ton), and energy
consumption.
CDP Mapping ― C8.2, C8.2a, C8.2b, C8.2c, C8.2d, C8.2g, C11.3a
Disclose Scope 1, Scope 2 and if appropriate, Scope 3 greenhouse gas(GHG) emissions and the related risks
CDP Mapping ― C2.1, C2.2
Describe the organization’s processes for managing climate-related risks
We manage and disclose our Scope 1 and 2 emissions data each year, and extended the scope of Scope 3 emissions management in consideration of their significance
and our reduction capacity. Our Scope 1 and 2 emissions are generally declining, and we are making ongoing intensity-based improvements. Scope 3 emissions are
managed within nine chosen categories, and relevant data is fully disclosed through the Carbon Disclosure Project (CDP). As to Scope 3 emissions calculation methods,
we referred to GHG Protocol’s Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
Category
● Purchased goods and services
As climate-related risks occur across the whole of the value chain, they are managed by three out of the eight ESG Steering Committees (Climate Change, Supplier,
and Product Environment). The Climate Change Committee develops and implements key initiatives in the manufacturing phase which corresponds to Scope 1 and 2
emissions, and the Supplier Committee and the Product Environment Committee do the same for risks for supply chains, raw material acquisition, product development,
and lifecycle assessments, which fall into the Scope 3 emissions category. Initiatives from all Steering Committees are proposed and presented as agendas to the ESG
Strategy Committee, and their progress is monitored through ESG Steering Committees at least three times a year. The ESG Team manages the operation of the ESG
Strategy Committee and all the Steering Committees, and shares the risks additionally identified year-round and ensures they are also integrated into our ESG tasks.
Scope 3 emissions in 2022
29,104,680
tCO2-eq
CDP Mapping ― C2.1, C2.2
Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s
overall risk management
To ensure company-wide risk management, we compile the types of possible risks at relevant departments and their specifics, the responsible personnel, deadlines,
and assessment methods on an annual basis. The ESG Team shares key issues out of the identified climate-related risks so that they are reflected in our company-wide
management system, and shared risks anticipated in relation to the emissions trading system in 2022. Our CEO and CAO identify emerging issues and potential risks
each year through the ESG Strategy Committee, and executives responsible for equipment, research, procurement, finance, and other relevant functions identify and
implement key risks as the Chair of the respective ESG Steering Committee for risk management.
※ For data on
Scope 1 and 2
emissions, refer
to p.40 of this
report.
Emissions (unit: tCO2-eq)
Percentage (unit: %)
2,594,189
8.91
● Capital goods
156,972
0.54
● Fuel- and energy-related activities not included in Scope 1 or Scope 2
335,798
1.15
● Upstream transportation and distribution
432,253
1.49
10,136
0.03
7,476
0.03
25,501,726
87.62
● Waste generated in operations
● Downstream transportation and distribution
● Use of sold products
● End-of-life treatment of sold products
14,092
0.05
● Investments
52,038
0.18
CDP Mapping ― C6.1, C6.2, C6.3, C6.5, C7.1, C7.2, C7.3,C7.3a, C7.5, C7.6, C7.6a
Describe the targets used by the organization to manage climate-related risks and opportunities and their performance
against targets
In line with the SBTi, we aim to reduce our Scope 1 and 2 emissions from our operations by 46.2% by 2030 and scope 3 emissions generated from the value chain
by 27.5% by 2030 from the 2019 base year to eventually achieve net zero emissions by 2050. To mitigate our Scope 1 and 2 emissions, we pursue the use of highly
efficient equipment, optimize energy, and opt for renewable energy. To reduce our Scope 3 emissions, we opt for eco-friendly materials, provide suppliers with a net
zero guide, and embrace eco-friendly product designs on an on-going basis. In 2022, we posted a nearly 8% reduction in Scope 1 and 2 emissions against 2019.
CDP Mapping ― C2.1, C2.2, C3.3, C3.4
※ For further details on our reduction activities in 2022, refer to p.20 of this report.
CDP Mapping ― C4.1, C4.1a, C4.2, C4.2c