HDC Hyundai Development Company Receives A Grade in ESG Evaluation for First Half of the Year

ESG Evaluation Grade A in the First Half of 2024
3 Levels Up Compared to 2 Years Ago

HDC Hyundai Development Company announced on the 25th that it received an A grade in the ESG evaluation conducted by Sustinvest, a major domestic ESG rating agency.

HDC Hyundai Development Company achieved an A grade in the first half of 2024, rising two levels from last year’s B grade. This marks a three-level increase from the C grade in the first half of 2022 over two years. HDC Hyundai Development Company received an A grade alongside Samsung C&T, DL E&C, and GS Construction.

Sustinvest is a Korean ESG evaluation and advisory organization established in 2006, currently publishing annual ESG management level evaluation results for approximately 1,300 listed and unlisted companies.

The first half evaluation used governance improvements as a key assessment indicator. HDC Hyundai Development Company improved areas such as the board of directors, audit committee, shareholder rights, and risk management last year.

In the board of directors section, efforts were made by appointing female outside directors, introducing board and committee evaluation systems, and managing the pool of outside director candidates. In the shareholder rights area, notices of general meetings were announced four weeks in advance, electronic voting was introduced, and policies on treasury stock purchases and mid- to long-term dividend strategies were established.

The audit committee ensured accounting transparency by pre-reviewing internal transactions within affiliates and non-audit services by external auditors. New certifications were acquired for Anti-Corruption (ISO 37001) and Compliance Management System (ISO 37301).

Significant achievements were also made in the environmental and social sectors. In the environmental sector, efforts were made to reduce environmental impact during construction, strengthen resource circulation, and establish climate change response strategies such as setting mid- to long-term greenhouse gas reduction targets to prepare for mandatory ESG disclosures.

In the social sector, a code of conduct for partner companies was established to strengthen supply chain sustainability. A human rights management system was built by conducting human rights impact assessments and establishing human rights protection policies for employees and stakeholders. To coexist with local communities, social contribution activities have been continuously expanded, and the safety management IT platform has been advanced to prevent accidents and build a safe workplace.

An HDC Hyundai Development Company official stated, “Through the top management’s commitment to ESG management and the company-wide efforts to improve management, we were able to internalize ESG management in a short period.” He added, “The achievements and plans for the environmental and social sectors, which are scheduled for evaluation in the second half of the year, will be disclosed in the 2024 Sustainability Management Report later this month to enhance sustainable growth competitiveness.”