Hankook Tire has launched an ESG (environmental, social and governance) committee to strengthen the responsibility and the role of the board to practice sustainable management.
On July 30th, Hankook Tire’s board of directors decided to set up a new ESG committee within the board of directors to improve corporate governance. The creation of the ESG committee aims to strengthen ESG management policies, strategies and activities.
With the establishment of the ESG committee, the committees within the board will be expanded to five units, including the existing audit committee, outside director nomination committee, sustainable management committee and internal transaction committee. The company aims to strengthen board-centered management and achieve sustainable growth in the long-run.
The ESG committee will be responsible for consulting, deliberating and recommending directions regarding environmental, social and governance businesses. The committee will be composed of seven members with more than half from outside the board in order to boost professionalism as well as its function. The committee has appointed its first chairperson through a committee resolution.
Outside director Mira Lee has been appointed as the first chairperson of the ESG committee. Mira Lee is a female leader who has accumulated extensive experience and expertise from global companies with leading corporate governance practices such as General Electric Co. (GE) and Macquarie Group. She is also a graduate of Ewha Womans University’s specialized program for female outside director training. With expertise in finance from global companies as well as in strategic planning, investment, personnel management, organizational culture innovation and diversity and inclusion (D&I), Lee is expected to represent the various interests of stakeholders and the public while also contributing to resolving key management issues to maximize the company’s long-term growth and corporate value.
Hankook Tire has established a working-level organization for ESG management and has been continuously cultivating tasks and achieving its goals every year. The company also obtained leadership ratings from CDP (formerly Carbon Disclosure Project) in recognition of its performance in climate change response and water security, and was awarded Carbon Management Sector Honors at CDP Climate Change Korea Awards. In addition, starting with its first inclusion on the Dow Jones Sustainability Indices in 2011, the company has been listed in the Dow Jones Sustainability Indices (DJSI) World for five consecutive years from 2016 to 2020.
Hankook Tire also is setting clear goals such as achieving 100% of sustainable raw material use by 2050 and reducing greenhouse gas emissions by 50% compared to that of 2018. The company is also participating in various initiatives for corporate sustainability practices such as UNGC (United Nations Global Compact) and is promoting eco-friendly policies such as sustainable natural rubber policies.