Group builds unified ESG framework across three affiliates

Eco-friendly materials, supply chain carbon cuts highlighted

Hankook Tire & Technology's headquarters, Technoplex. [Hankook Tire & Technology]
Hankook Tire & Technology's headquarters, Technoplex. [Hankook Tire & Technology]

Hankook Tire & Technology announced Wednesday it has published its "2025/26 ESG Report," detailing the company's management framework and sustainability performance in response to tightening global ESG (environmental, social and governance) disclosure regulations.

The report — the company's 17th annual edition — outlines its approach and management systems for complying with global ESG regulations, including the European Corporate Sustainability Reporting Directive (CSRD) and the EU Deforestation Regulation (EUDR).

Particularly notable is the establishment of a unified ESG management framework across three group affiliates — Hankook Tire & Technology, Hankook & Company and Hanon Systems — aligned with the European Sustainability Reporting Standards (ESRS). The report also introduces a new group-wide materiality assessment applying the double materiality principle required under ESRS.

Based on that materiality assessment, Hankook Tire & Technology disclosed progress on key environmental initiatives, including expanding the use of sustainable raw materials, developing eco-friendly products, building a global green production system, reducing greenhouse gas emissions across the supply chain and managing biodiversity.

The company also strengthened its governance structure. The board approved a medium- to long-term plan to enhance its independence, expertise and diversity, and introduced outside director guidelines. It is also working to adopt a board skills matrix and a mutual evaluation system for outside directors.

The company expanded its shareholder return policy as well. It established a compensation committee to improve transparency in director remuneration, set a medium-term shareholder return policy for 2025 to 2027, and carried out an interim dividend this year — moves aimed at enhancing shareholder value and management transparency.

On the environmental front, the company's factory in Jiaxing, China, obtained ISCC PLUS certification — a globally recognized eco-material standard — becoming Hankook Tire & Technology's fourth certified green production site. The company also earned the top rating (A) from the Carbon Disclosure Project (CDP) in the climate change category for two consecutive years, demonstrating its competitiveness in global sustainability.

The report also covers other key ESG initiatives, including human rights management, occupational health and safety, supply chain ESG oversight, diversity and inclusion, and community engagement. The report is available on Hankook Tire & Technology's official global website, with an English version set to be published later this month.

Meanwhile, Hankook Tire & Technology has carried out various corporate social responsibility activities since 2011, including a blood donation campaign at its domestic production facilities and research and development centers, driven by voluntary participation from employees.


eyre@heraldcorp.com