Hyundai Department Store Accelerates ESG Management... "Establishment of Dedicated Committee Within the Board"

Exterior view of Hyundai Department Store building in Gangnam-gu, Seoul (Photo by Hyundai Department Store).

Resolution to Establish 'ESG Management Committee' at the Board Meeting on the 10th
An Outside Director to Chair the Committee to Enhance Transparency
An 'ESG Council' Directly Under the CEO Also Formed and Operating
"Will Promote Systematic ESG Management"

[Asia Economy Reporter Kim Yuri] Hyundai Department Store is accelerating its ESG (Environmental, Social, Governance) management efforts. Following the establishment of an in-house ESG dedicated organization, it has decided to set up an ESG Management Committee within the board of directors.

On the 10th, Hyundai Department Store held a management board meeting and announced the resolution to establish an 'ESG Management Committee' under the board to strengthen ESG management.

The newly established 'ESG Management Committee' is the company's highest decision-making body responsible for determining key ESG-related strategies and formulating policies. It consists of three outside directors and one inside director. The committee will identify various issues related to ESG, review the company's ESG strategies, and examine and approve related performance and improvement plans.

A Hyundai Department Store official explained, "With the establishment of the ESG Management Committee, the number of committees under the board has increased from four to five, including the existing Audit Committee, Outside Director Candidate Recommendation Committee, Compensation Committee, and Internal Transactions Committee. To enhance the board's transparency and expertise, the committee is composed mainly of outside directors, and the chairperson will also be an outside director."

Earlier, Hyundai Department Store also formed an in-house dedicated department responsible for ESG-related tasks. Through a recent organizational restructuring, an 'ESG Promotion Council' was established directly under the CEO, appointing an executive vice president as the council chairperson. The newly formed council consists of about ten in-house ESG experts from various fields and will develop and implement concrete action plans to expand ESG management.

Hyundai Department Store plans to actively promote company-wide ESG management through the committee and council. In the environmental (E) sector, under the management philosophy mission ("Making customers happy, enriching the world") and vision ("The most trusted company by customers"), it has set the environmental management goal of becoming a "leading eco-friendly company in customers' daily lives."

To achieve the environmental management goal, Hyundai Department Store has selected three eco-friendly management focus areas: 'Green Service,' which reduces packaging harmful to health and the environment; 'Green Friends,' which spreads eco-friendly culture in daily life; and 'Green System,' which establishes environmentally beneficial facilities and systems. The company will concentrate its resources on these areas.

In the social (S) sector, various policies will be prepared and implemented to enhance trust with stakeholders surrounding the company, including employees, customers, partners, and local communities. As part of mutual growth and coexistence, the company will strengthen direct transactions with producer groups to revitalize the local economy and expand social contribution projects that encourage self-reliance among marginalized groups. Additionally, it plans to expand family-friendly systems for employees and establish systems to encourage ethical management activities among partners.

Regarding governance (G), Hyundai Department Store will continuously pursue measures to protect shareholder rights and enhance management transparency, such as establishing and disclosing a dividend policy for three years and codifying governance regulations.

A Hyundai Department Store official stated, "We plan to promote systematic and strategic ESG management to become a company trusted by customers. We will make our best efforts to lead in solving environmental and social issues and to enhance transparency in governance."

Meanwhile, Hyundai Department Store Group plans to take the lead in spreading ESG management within the group by establishing 'ESG Management Committees' within the boards of directors of nine listed companies in the group, including Hyundai Home Shopping, Hyundai Green Food, Handsome, and Hyundai Livart, as early as next year. The formation of dedicated ESG organizations for each affiliate is also under consideration.

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