HD Hyundai Shipbuilding Division's 4 Companies Sign Business Agreement for Joint ESG Supply Chain Response
The Small and Medium Business Corporation (Chairman Kang Seok-jin, hereinafter referred to as SBC) announced on the 25th that it has signed a 'Business Agreement for Joint Response to ESG Supply Chain of Small and Medium Enterprises in the Shipbuilding Industry' with HD Hyundai Heavy Industries, Hyundai Mipo Dockyard, Hyundai Samho Heavy Industries, and HD Hyundai Global Service.
This agreement was prepared to strengthen the ESG (Environmental, Social, and Governance) capabilities of small and medium enterprises in the shipbuilding industry, as the importance of ESG management in the supply chain has been highlighted due to the introduction of the European Union (EU) Supply Chain Due Diligence Act.
The signatory organizations will support about 100 small and medium enterprises cooperating with the four HD Hyundai shipbuilding divisions to enhance ESG and carbon neutrality capabilities in the shipbuilding industry and to achieve the national greenhouse gas reduction targets ahead of schedule. Specifically, they agreed to mutually cooperate on ▲supporting ESG and carbon neutrality level diagnosis ▲providing incentives for excellent companies to take action ▲offering customized follow-up support based on diagnosis results.
SBC will connect ESG and carbon neutrality expert diagnosis and customized follow-up support based on the diagnosis results to small and medium enterprises engaged in shipbuilding. Additionally, it will support the four HD Hyundai shipbuilding divisions by providing an ESG management system to efficiently manage the ESG of their partner companies.
The four HD Hyundai shipbuilding divisions will design and apply ESG evaluation indicators specialized for the shipbuilding industry through this business agreement. Through this, they plan to improve inefficiencies within the group by integrating evaluations for overlapping partner companies and reduce the response burden on partner companies.
Kim Moon-hwan, Head of the Innovation Growth Headquarters at SBC, said, "Based on the know-how and technological capabilities of domestic shipbuilding companies, we have nearly reached the annual order target in the first half of this year," adding, "Through this agreement, we will support strengthening the ESG and carbon neutrality competitiveness of cooperating small and medium enterprises so that the shipbuilding industry can continue its boom."
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