Hyundai Heavy Industries Expands 'ESG Management' to Partner Companies

Korea Enterprise Data and Partner Companies Sign Business Agreement to Establish ESG Evaluation Model

[Asia Economy Reporter Hwang Yoon-joo] Hyundai Heavy Industries is taking the lead in creating a sustainable shipbuilding ecosystem by supporting its partners in establishing customized ESG (Environmental, Social, and Governance) evaluation models.

On the 8th, Hyundai Heavy Industries signed a Memorandum of Understanding (MOU) on mutual cooperation for partner ESG evaluation with Korea Enterprise Data, a credit rating agency, at its headquarters in Ulsan. For the development of this ESG evaluation model, Hyundai Heavy Industries will provide information on partners' materials and block supply status, while Korea Enterprise Data plans to utilize its long-accumulated credit evaluation data on small and medium-sized enterprises (SMEs).

Starting this month, the two companies will develop an ESG evaluation model suitable for the shipbuilding industry based on related data, and conduct comprehensive pilot evaluations for interested partners. Through this, they aim to establish evaluation criteria that can objectively analyze the ESG management status of their partners.

Additionally, Hyundai Heavy Industries plans to establish practical support measures by the end of the year, including financial support, education, and consulting necessary for partners' ESG management based on the established ESG evaluation criteria.

According to a survey conducted by the Federation of Korean Industries on February 15 targeting research center heads of 15 securities firms, the ESG response level of domestic companies scored only 4 out of 10 for SMEs compared to advanced countries, indicating the need for institutional support tailored to SME ESG management.

As SMEs increase their interest in ESG management to lay the foundation for sustainable growth, Hyundai Heavy Industries expects that the establishment of this ESG evaluation model will serve as a catalyst to accelerate ESG management among shipbuilding industry partners.

Meanwhile, Hyundai Heavy Industries Group established its group ESG governance (decision-making system) in April and has accelerated ESG management by setting up ESG committees in eight affiliates to date.

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