Hanssem Publishes Industry-First Global Standard Reflective 'Sustainability Management Report'

The Interior Industry's First Autonomous and Leading Adoption of IFRS Trends

Hanssem announced on the 1st that it has published the "2024 Sustainable Management Report," which contains the current status, achievements, and vision of its ESG (Environment, Social, Governance) management from last year.

Since 2020, Hanssem has been publishing the Sustainable Management Report annually to communicate ESG management with internal and external stakeholders. This year’s fifth edition of the report proactively reflects the requirements of the International Financial Reporting Standards (IFRS). By applying global standards such as the Global Reporting Initiative (GRI) and the Task Force on Climate-related Financial Disclosures (TCFD), it has enhanced reliability and transparency. It is the first in the industry to align with global standards.

In particular, the newly introduced "double materiality assessment" from last year has been further strengthened. The double materiality assessment is a process that selects ESG issues that a company should prioritize by considering both the impact of ESG management on the environment and society and the impact of the environment and society on the company.

Through the materiality assessment involving internal and external stakeholders, Hanssem identified a total of nine critical issues: ▲ climate change response and efficient energy management ▲ environmental impact management throughout the product life cycle ▲ chemical safety management ▲ customer satisfaction and quality management ▲ respect for human rights and diversity ▲ workplace safety and health ▲ community engagement ▲ shared growth with partners ▲ sustainable management strategy. Each issue was divided into key elements such as governance, strategy, risk management, and indicators and targets based on the IFRS framework.

Through this Sustainable Management Report, Hanssem announced its plan to actively respond to climate change and promote biodiversity, reflecting the characteristics of its home interior business that primarily uses wood as the main raw material. Under the long-term goal of achieving carbon neutrality by 2050, it is advancing carbon emission reduction targets, including a 40% reduction in greenhouse gases by 2030, participating in the global carbon neutrality movement. As part of this, it promoted solar power facilities at its Plant 1 last year, which were completed in January this year.

Additionally, to respond to ecosystem threats caused by climate change, Hanssem has expanded its corporate social responsibility (CSR) activities to environmental efforts and is actively working to secure biodiversity. A representative example is the "Honey Source Tree Seedling Forest Creation" project, which provides food for disappearing bees to maintain ecosystem preservation, creating positive changes for the planet.

Hanssem set a goal to introduce and internalize human rights management that respects human rights and diversity in line with global standards. To respond to human rights risks that may occur inside and outside the organization, Hanssem established the Hanssem Human Rights and Labor Management Declaration and operates programs such as gender sensitivity education, support for in-house grievance counselors, operation of a sports team for people with disabilities, and recruitment and development programs for female talent. To strengthen human rights management, Hanssem also joined the United Nations Global Compact (UNGC). The UNGC is a UN-established organization that actively addresses corporate responsibilities to respect human rights based on the four areas of human rights, labor, environment, and anti-corruption and its ten principles.

Kim Yujin, CEO of Hanssem, stated, "As the No. 1 home interior company in Korea, Hanssem is reflecting stricter and more advanced ESG international evaluation standards for the first time in the industry to meet the heightened expectations and standards both internally and externally. We will strive not only for financial performance but also for creating environmental and social value, continuously strengthening transparency in corporate management and fulfilling our social responsibilities with the efforts of all employees."