Hanwha, '1 Year of ESG Management Establishment' Aiming to Leap to Global Standards

1st Anniversary of Group ESG Committee Launch
Commitment to Achieve Global Standards
ESG Committees Established at All Listed Companies
Independent Chairmanship by Outside Directors Strengthens Autonomy
6 out of 7 Listed Companies Receive 'A Grade' in External ESG Evaluations

Hanwha Group held an event to reaffirm its commitment to advancing to a global ESG level on the first anniversary of the launch of its ESG Committee. Photo by Hanwha Group

Hanwha Group marked one year of establishing ESG (Environmental, Social, and Governance) management and expressed its commitment to implementing ESG management at a global level.

On the 25th, Hanwha Group held a seminar at its headquarters in Janggyo-dong, Jung-gu, Seoul, inviting Professor Park Doo-yong from Hansung University (former Chairman of the Korea Occupational Safety and Health Agency), the company announced on the 26th. The seminar was held to commemorate the first anniversary of the launch of the 'Hanwha Group ESG Committee,' with about 80 ESG officers and employees from within Hanwha Group gathering. The purpose was to reaffirm the commitment to practicing ESG management at a global standard.

Professor Park delivered a lecture on the topic "Recent Trends in Industrial Safety and Corporate Response Strategies from an ESG Perspective," covering safety management systems, strategies for preventing major accidents, and crisis response strategies from an ESG viewpoint. The Hanwha Group ESG Committee holds quarterly seminars inviting external experts to enhance understanding of global ESG trends and related policies and to establish response strategies.

The event was attended by about 80 people, including President Cho Hyun-il, who serves as the chairman of the Hanwha Group ESG Committee, Kim Seung-mo, President of Hanwha Corporation, Shin Hyun-woo, President of Hanwha Aerospace, and CEOs of major affiliates, as well as ESG and environmental safety officers from 15 affiliated companies.

Participants wrote messages expressing their personal and organizational ESG goals and commitment to practice. These message cards were placed in potted companion trees distributed as souvenirs and set on each person's office desk. The intention is to encourage thinking about ESG-linked activities during work, serving as a kind of ESG motto. The companion trees were grown using power generated by Hanwha’s solar panels.

In his greeting, Chairman Cho Hyun-il emphasized, "Based on the ESG management achievements accumulated over the past year, we will continue activities to advance as a global top-tier ESG company."

Hanwha Group established the institutional foundation for full-scale ESG management by launching the 'Group ESG Committee' in May last year. Within just one year, ESG committees have been set up not only in all seven listed companies but also in some unlisted affiliates. Remarkable achievements include publishing a sustainability management report and enacting a governance charter. The ESG committees established in affiliates are characterized by appointing at least two-thirds or all members as outside directors and having an outside director serve as chairman to ensure independence and expertise.

Hanwha Group is emerging as a global leader in eco-friendly energy. It is actively investing in eco-friendly businesses such as solar power and hydrogen both domestically and internationally and has completed the acquisition of RES France, a French renewable energy company. By acquiring 100% stakes in the U.S. company PSM and the Dutch company Thomassen, it secured core technology for eco-friendly hydrogen (co-firing) power generation. In November last year, Hanwha Solutions became the first Korean renewable energy company to declare 'K-RE100 (100% renewable energy use).'

Eco-friendly social contribution campaigns and activities for co-growth with partner companies are also ongoing. In April, Hanwha Group created 'Solar Forest No. 9' on approximately 50,000 square meters in Bangnae-ri, Naemyeon, Hongcheon-gun, Gangwon Province, taking the lead in responding to climate change and carbon neutrality. Hanwha Solutions is promoting cooperative projects to supply renewable energy to major facilities within national parks to reduce carbon emissions. Hanwha Solutions, Hanwha Systems, and Hanwha Engineering & Construction have signed fair trade agreements with partner companies to strengthen practical support for co-growth.

ESG bonds issued for social responsibility investments such as environmental, social, and governance improvements continue to be well received. Over the past year, five companies?Hanwha Corporation, Hanwha Solutions, Hanwha Aerospace, Hanwha Energy, and Hanwha Total Energies?have raised 1.215 trillion KRW through ESG bond issuance. These funds are used for investments such as expanding solar cell and module production lines, preventing air pollution, improving energy efficiency, and constructing eco-friendly buildings. In February this year, Hanwha Life also issued overseas ESG bonds worth 750 million USD, attracting investors from Asia, Europe, and the United States.

As a result of these efforts, six out of the seven listed companies received an overall grade of 'A' in the 2021 ESG evaluation of listed companies announced by the Korea Corporate Governance Service. Hanwha Corporation also earned an overall 'Excellent (A)' rating in the corporate ESG evaluation conducted by NICE Credit Rating.

Meanwhile, Chairman Kim Seung-yeon emphasized ESG management in his New Year's address this year, stating, "Let us actively practice management with integrity and the value of sharing so that the ESG management and the philosophy of 'Together Far' established within us can be spread under the name of First-Class Hanwha."