Hanil Holdings, Full-Scale Launch of ESG Management

Priority Implementation for Cement Companies Including Hanil Cement... Formation of ESG Management Promotion Committee

[Asia Economy Reporter Kim Jong-hwa] Hanil Holdings is actively engaging in ESG management by declaring 'ESG Management' for sustainable growth and forming an 'ESG Management Promotion Committee.' The goal is to establish and implement a vision in areas such as the environment and social contribution based on global standards.

Hanil Holdings is organizing task force teams (TFT) across the company?including planning, production, environment, and sales departments?at its core affiliates Hanil Cement and Hanil Hyundai Cement to discuss detailed management principles, policies, and action plans for ESG management.

Existing management activities are also being reorganized to align with the ESG framework, and external consulting is being pursued simultaneously to quickly establish an ESG management system. After applying this to the cement production business, ESG management will be expanded to all business units such as Hanil Networks and Hanil Industries, and actively reflected in the year-end management performance evaluation.

First, alongside efforts to reduce greenhouse gases, the company plans to explore innovative technology development and implementation plans for carbon neutrality to achieve the national environmental policy goal of 'carbon neutrality by 2050.' To this end, it is reviewing the expansion of the 'CO2 reduction cement' production process, which has already been successfully demonstrated, and is also promoting the establishment of smart factories to save energy and improve efficiency.

Additionally, by 2023, Hanil Hyundai Cement plans to invest approximately 70 billion KRW in its Yeongwol plant to complete the construction of a waste heat power generation facility capable of producing 17.45 MW of electricity per hour. The company expects this facility to help reduce electricity costs by about 10 billion KRW and assist in securing carbon emission credits. Going forward, it will continuously expand ESG-related investments linked to business divisions and consider issuing ESG bonds if necessary.

Social contribution activities, which had been limited to donations and local volunteer work, will be systematized with mid- to long-term plans to align with social value. The volunteer group 'WTH,' established by Hanil Cement in 2011, will be reorganized and expanded to all affiliates. To strengthen win-win management, consulting and cooperation funds to support partner companies' management will also be expanded. The goal is to enhance the competitiveness of partner companies themselves and achieve mutual growth.

To enhance shareholder value, the company will continue to expand timely disclosures on major management matters. Hanil Holdings was recognized for its efforts to protect shareholders and investors through the establishment of disclosure-related regulations, building an integrated disclosure information management infrastructure via an electronic approval system, and verifying disclosure content, and was selected as an 'Excellent Disclosure Corporation in the KOSPI Market in 2019' by the Korea Exchange.

Jeon Geun-sik, CEO of Hanil Holdings and chairman of the ESG Management Promotion Committee, stated, "We will establish an ESG management system and enhance execution capabilities to proactively respond to the new normal era and strive to increase shareholder value." He added, "We will work to achieve ESG innovation through exploring collaboration methods and strategic responses by business group."

This content was produced with the assistance of AI translation services.