Hanwha's All Listed Companies Establish 'ESG Committee'... Over Two-Thirds Have Outside Director as Chairperson

[Asia Economy Reporter Kim Hyewon] Hanwha Group will establish ESG (Environmental, Social, and Governance) committees in all its listed companies.

According to Hanwha Group on the 27th, Hanwha Aerospace, Hanwha Systems, and Hanwha General Insurance each held board meetings last week and resolved to establish ESG committees.

One outside director will be appointed as the chairperson, and through quarterly regular meetings and ad hoc meetings as needed, each company plans to establish mid- to long-term ESG strategies and policies and monitor their implementation status.

Previously, Hanwha Corporation and Hanwha Life completed the establishment of ESG committees through board meetings in March, and Hanwha Solutions did so in May. Hanwha Investment & Securities also plans to establish an ESG committee through a board resolution in July. This means that the establishment of ESG committees in all seven listed companies of Hanwha Group will be completed within the year.

In addition to listed companies, Hanwha Asset Management, a non-listed company, established an ESG committee through an extraordinary general meeting of shareholders in April and is focusing on internalizing ESG as an operational philosophy by implementing ESG promotion tasks and monitoring ESG-related investment status.

Hanwha Group judged that establishing ESG committees within the board of directors, the highest decision-making body under the law, in all its listed companies is a prerequisite and institutional measure for global-level ESG management. It is also notable that at least two-thirds (or all) of the committee members are appointed as outside directors, and the chairperson is also an outside director to ensure independence and expertise.

Each company’s ESG committee serves as the highest deliberative body related to ESG management, establishing basic policies and strategies in all ESG areas including environment, safety, social responsibility (fairness and welfare), customer and shareholder value, and governance, and deliberating on mid- to long-term goals.

Furthermore, in May, Hanwha Group established the 'Hanwha Group ESG Committee' to support and advise ESG management of affiliates and to coordinate group-level ESG activities. The Hanwha Group ESG Committee supports ESG management activities of each affiliate through assistance in establishing ESG strategic tasks by business sector and education for information sharing.

Hanwha Group Chairman Kim Seung-yeon stated in his New Year's address, "ESG has become a core management principle for global companies," and added, "As a global leader in the renewable energy sector, we will actively respond to climate change and accelerate environmental management to lead the carbon-zero era."