Green Management : HYOSUNG ADVANCED MATERIALS

Green Management Vision System

Green Management Policies & Guidelines

SHE Policy

Hyosung Advanced Materials regards safety, health, and environment as fundamental elements in corporate operations. Also, we recognize that the pursuit of safety, the promotion of health, and the minimization of environmental impact are crucial for sustainable profit maximization, corporate growth, and personal development. Aiming to improve the quality of life for all stakeholders, our SHE(Safety, Health, and Environment) Policy is globally distributed in the respective national languages at global business sites to ensure that all employees understand and diligently adhere to the SHE Policy.

Global SHE Policy
Environmental Guidelines

By securing green management experts and ensuring systematic operation, Hyosung Advanced Materials practices green management and carries out a wide range of green business activities. All of our business sites have a dedicated department to minimize negative environmental impacts that may occur during business activities.

Environmental Guidelines
Sustainable Procurement Policy

Hyosung Advanced Materials complies with the principle of sustainable procurement policy to minimize the negative environmental impacts caused by business activities as part of our efforts to take environmental and social responsibility.

Sustainable Procurement Policy
Eco-friendly Green Procurement Policy

Hyosung Advanced Materials adheres to the Eco-friendly Green Procurement Policy in order to fulfill its responsibilities to product users and society through green procurement activities that contribute to resource conservation and environmental impact reduction.

Eco-friendly Green Procurement Policy

Vision

Governance
Hyosung Advanced Materials strives to take corporate responsibility with sustainable growth in the process of value creation for various stakeholders. To this end, we have established and operate the green management system based on a global-level environmental operation and management process under the leadership of the Green Management Committee. Our green management governance provides accurate information and refines green management activities in a sustainable way by meeting the expectations and demands of stakeholders.

Green Management System
Hyosung Advanced Materials establishes and operates the green management system based on a global-level environmental operation and management process under the leadership of the Green Management Committee.

Zero Emission

Air Quality Control

Hyosung Advanced Materials has upgraded waste treatment facilities and uses clean fuels to reduce air pollutants and emissions. Furthermore, we manage air pollutants as per internal standard that is 80% stricter than the legal requirements. We devise and execute plants to control air pollutant emissions and improve air quality in various sectors. We replaced old air pollution control equipment to enhance efficiency in the treatment process, and switched to LNG boilers that use clean fuel. We carry out environmental impact assessments before expanding our production lines and installed new air pollution control facilities in advance to reduce and manage the air pollutant emissions. Ulsan and Jeonju plants have supplemented their waste gas incineration systems (i.e. regenerative thermal oxidizers) in accordance with the strengthened emission standards for hydrogen cyanide. Their internal standards are now stricter than the legal emission standards. Ulsan plant signed a voluntary agreement on reducing particulate matter with the Ulsan Metropolitan Government. Moreover, they are implementing specific tasks and leading two-way communication with local residents by disclosing environmental data and sharing opinions through the Jangsaengpo Residents' Council.

Water Management

Hyosung Advanced Materials operates wastewater treatment facilities effectively to minimize the impact on rivers and seas. Our facilities eliminate pollutants physically, chemically, and biologically, and our tele-monitoring system(TMS) is operated under the automated water quality measurement system. Wastewater discharge at our key business sites is far below the legal limits as they adhere to the internal standard that is 80% stricter than that of the government. Regular water quality inspection is conducted at all business sites. If an issue is found, countermeasures and improvement activities such as replacing aged water pollution control facilities are carried out consequently. In the event of releasing highly concentrated wastewater, wastewater concentration analysis takes place with the production teams to prepare countermeasures for emergencies. Through close cooperation with these teams, we ensure less use of water. As part of our initiative to expand the use of recycled water, such as water used for washing, cleaning, and firefighting, water reuse facilities and processes are in full operation. The water used in the process is recovered and stored in an emergency reservoir, or used as a coolant, thereby reducing water consumption and increasing the recycling rate. Our plan is to establish a sustainable water recycling system by expanding rainwater harvesting facilities and water reclamation facilities.

Chemical Substances Management

In the entire process of purchasing, using, selling and disposing of chemical substances, Hyosung Advanced Materials prevents incidents associated with chemical substances by removing environmental, safety, and health hazards in advance. We require all domestic plants to provide Material Safety Data Sheets(MSDS) at the point of purchasing chemical substances or any product consisting chemical substances. Our dedicated facilities are operated in compliance with the hazardous materials handling standard under the Chemical Substances Control Act. Aside from the routine legal inspection, we also identify and report on the risks that may arise during a series of purchasing, storing, handling, and using hazardous materials. We conduct monthly inspection activities at hazardous materials storage facilities, as well as carry out an off-site risk assessment and prepare a risk management plan, thereby inspecting problems and taking preemptive measures. Based on the off-site risk assessment and hazardous materials management plan, we thoroughly prevent and respond to accidents. We develop emergency scenarios of incidents resulting from chemical spills and calculate the scope of influence. We also enhance our capacity to respond to emergencies through annual training. Our training focuses on handling and managing hazardous materials and raising awareness. Training on hazardous materials are held at least once a year in our global sites, particularly for employees in charge of handling chemical substances and ensuring safety. We appoint managers for handling hazardous materials who undergo additional external training. Our employees, as well as those of our suppliers, take two-hour chemical substance safety training every year so as to ensure workplace safety and protect local residents and the ecosystem.

GHG Emissions Management

Hyosung Advanced Materials operates a carbon asset management system for domestic business sites to monitor and control their GHG emissions. Our business sites have established GHG inventories to monitor emissions by facility and activity. They also devise and implement a reduction strategy for reducing emissions. Hyosung Advanced Materials has set the goal of progressive climate response to contribute to limiting the rise of global temperature below 1.5℃. Accordingly, we materialize our efforts to achieve the goal. In 2021, we established "Vision 2030" to cut GHG emissions by 24.9% compared to the 2017 level by 2030. Furthermore, we plan to establish SBT to limit the Scope 1, 2 emissions for all global business sites, thereby curbing the rise of global surface temperature within 1.5℃ as our response to the climate crisis with no boundaries across the globe.

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Response

Zero-emission Products & Technologies

Recognizing the importance of responding to climate change, Hyosung Advanced Materials aims to reduce direct emissions from production activities and respond to the impact of climate change that may occur in the places where our products are used. To make this happen, we constantly engage in product development and production activities that can reduce GHG emissions throughout our business areas.

TANSOME®, the Key to Improving Fuel Efficiency
75% lighter than steel but tenfold its the strength, TANSOME® is Korea's first high-performance carbon fiber developed by Hyosung Advanced Materials' proprietary technology. Boasting ultra-lightweight and high-tensile properties, TANSOME® is used as a key material for improving the fuel efficiency of automobiles through light-weighting, ultimately contributing to carbon emissions reduction. Also acknowledged for its excellence in stability and functionality, TANSOME® is used in a variety of products, especially in high-pressure storage vessels for CNG(compressed natural gas) and hydrogen for green energy industries.
High-strength Tirecord
Tirecords are key reinforcements used to maintain a tire’s shape and enhance its performance. They undergo a rolling process after being coated with rubber. High-strength Tirecords are 10–20% more robust than conventional ones, and a thinner width can reduce rubber usage during rolling process. Less rubber use enables tire light-weightening which reduces the rolling resistance and thus contributes to higher vehicle fuel efficiency and lower emissions.
Steelcords from Steel Scrap
While producing a wire rod, the main material for steelcord, steel scrap is generated as by-products, releasing GHGs during the process. To tackle this issue, Hyosung Advanced Materials produces eco-friendly products that reduce the use of raw materials and cut GHG emissions at the same time using steel scrap by-products. Wire rod, which is made from steel scrap, boasts robustness due to its high impurities. It has limitations, however, when used for thin products. Therefore we have commercialized certain products using steel scrap wire rod. We will continue to develop screening and processing technologies to further extend product applications.

Zero Waste

Resource Management

By optimizing the inventory and use rate management of raw and subsidiary materials, Hyosung Advanced Materials successfully minimized the number of new purchases, thereby reducing costs and resource use. We conducted technology research and process development to reduce the waste rate of products, as well as decreased the new resource input rate by preventing light scattering in the emulsion consumed during production. Also, we are making efforts to reduce the use of resources in diverse fields, from production to shipping such as replacing product storage materials to high-strength materials and increasing the number of reuses. We purchase eco-friendly products as per the Eco-friendly Green Procurement Policy to save resources.

Waste Management
Aside from minimizing the process waste rate, Hyosung Advanced Materials endeavors to generate less waste by reducing the amount of final waste through resource recycling. Furthermore, we establish a monthly waste treatment plan throughout the year and identify the expected waste generated in the event of installing new facilities. In order to ensure that waste generated from our business sites are legally treated and tracked, we adhere to procedures set forth in relevant laws and regulations. We also determine the optimal waste treatment method according to the type and amount of waste generated in the course of business operation. We strive to not only recycle waste but also manage waste resources according to our resource circulation management system, thereby nurturing an upcycling ecosystem that creates value by recycling waste and re-creating it into new products and services.
- Development
  
  Development of waste resource utilization technologies and products
  
  Securing a waste resources and renewable materials sourcing
- Manufacturing
  
  Expansion of renewable energy use at business sites
  
  Minimization and reuse of limited resources
- Distribution
  
  Use of sustainable packaging materials
  
  Optimization of logistics
  
  Take-back and reuse
- Use
  
  Continuous development and upgrade of technology and product for zero emissions, zero waste, and zero impact
- Disposal
  
  Operation of a take-back and rcycling process in each waste, such as shell and tube
  
  Establishment of a system for extraction of materials from waste and recycling
Improvement in Waste Treatment Method
Hyosung Advanced Materials utilizes online or radio-frequency identification(RFID) system that transparently manages the entire process from discharging to transportation and final disposal of business wastes. We endeavor to increase the consignment ratio of recycling to conduct more recycling activities. In particular, we process the waste yarn and organic solvents generated at the plant, that was previously incinerated in high temperatures, and use them as auxiliary fuels. Waste organic solvents undergo consigned handling to be mixed with other substances and used as fuels with fewer environmental impacts. In addition, we consign the recycling of sewage sludge to several recycling companies.
Realization of Circular Economy
At Hyosung Advanced Materials, we aim to make our products recyclable andensure the circulation of limited resources. To reduce carbon emissions and realize a circular economy, we are in preparation for an eco-friendly product business by simplifying raw materials composition for product and changing packaging materials from one time use to that of a long service life. Particularly, we intend to contribute to the circular economy together with our customers. We reduce the number of waste packaging materials as well as new packaging materials by collecting and reusing after-use packaging materials.
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Product Recycling and Technology Development

Hyosung Advanced Materials developed high-strength recycled polyester yarn using raw materials extracted from waste plastic. The high-strength recycled polyester yarn received the international Global Recycle Standard(GRS) certification. In addition, after aggregating the demands of products made of recycled PET from clients, we began developing car flooring mats and supplying Tirecords using recycled BCF(bulk continuous filament). Besides waste PET bottles, we also collect discarded fishnets as well as spinning process waste and the process waste generated from recycled chip companies, which are recycled into PET chips. Research and development is underway to enlarge our portfolio of recycled products. We will stay committed to making unstinting R&D investments in recycling products and technology to be at the front of building an eco-friendly business ecosystem.

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Zero Impact

Zero Impact Products & Technologies

Hyosung Advanced Materials is aware of the environmental impact that occurs in all production activities, from the procurement of raw materials to the completion of products, and is actively working to minimize the impact. We continue to discover various factors that can reduce environmental impacts, expand the application of existing improvement activities, and activate new technologies.

Bio-PET Made from Plant-derived Materials
Due to the rise of new mobility, in which driving time and distance are expected to increase considerably due to enhanced driving convenience through self-driving and car-sharing, automobile and parts manufacturers are striving to develop new products with less environmental impact. On top of light-weight and improved fuel efficiency, which have long been pursued as product development requirements, customer needs for “environmentally friendly” and “recycled” materials are rapidly growing. In order to contribute to solving the resource-shortage and pollution issue of the traditional polyester made from petrochemicals, Hyosung Advanced Materials supplies car mats made of bio-PET, which is produced from bio-EG extracted from plant-based raw materials. We are also continuing our research and development to expand the applications of bio-PET.
Lyocell Tirecords: Eco-products Made from Wood-extracted Materials
Conventional rayon Tirecords, which are mainly used as reinforcing materials for high-speed driving tires, generate hazardous substances during the manufacturing process due to the use of sulfuric acid. Lyocell Tirecords, developed by Hyosung Advanced Materials as an alternative to rayon Tirecords, however, do not release toxic substances such as carbon disulfide or hydrogen sulfide, since they are made from cellulose extracted from wood. Through our lyocell Tirecords, we can prevent air and water pollution caused by the release and treatment of hazardous materials.
Waste Sulfuric Acid Treatment for Low Environmental Impact
The production process of aramid fiber, a strong and incombustible fiber, releases sulfuric acid. In the past, waste sulfuric acid was treated by a third party, or, in case of low-concentration waste sulfuric acid, it was treated through our own wastewater treatment system. In June 2018, we adopted a green technology for high-concentration sulfuric acid which reduced the treatment cost of waste sulfuric acid and prevents water pollution minimizing environmental impact. Since April 2019, we have expanded the technology to low-concentration sulfuric acid, and now all waste sulfuric acid at the plant is treated.
Eco-friendly Dip Recipe: Improvement of Fatigue Resistance
In the final manufacturing process of Tirecords, Tirecords are dipped in a chemical dip, a compound fluid made from chemical mixture, and then heat-dried. This process is essential to achieve the best performance of tires by increasing adhesion between Tirecords and rubber and to increase driving distance by enhanced resistance. Hyosung Advanced Materials developed an eco-friendly dip recipe after ceaseless research to achieve eco-friendliness in manufacturing. We contribute to reducing hazardous substances in the process without using resorcinol and formalin, as well as generating fewer waste tires by extending product lifespan thanks to higher fatigue resistance.

Environmental Risk Management

Environmental Impact Assessment

Hyosung Advanced Materials assesses whether its organizational status, production process, products, and services have a significant or negative impact on the environment through environmental impact assessments. We register, improve, and manage key areas with significant impact. We identify predictable risks and opportunities as well as emergencies throughout our environment, safety and health-related areas. An environmental, safety and health(ESH) risk management process with detailed procedures and definite roles & responsibilities are in place to effectively deal with any risk or accident. Our environment auditors evaluate environmental risks prior to ISO 14001 renewal. Through this system, we recognize the risks inherent in various factors in the environmental sector, such as environmental regulations and hindrances to green management activities, and prevent the potential impact of risks through risk analysis. We check whether the risk response measure is properly applied and prevents recurrence.

Environmental Performance & Green Management Compliance Evaluation

Hyosung Advanced Materials established an evaluation system based on internal standards that have been reinforced beyond the level required by laws and regulations for green management operation activities. We conduct evaluations accordingly. We check environmental performance indicators every year, establish and manage environmental performance goals, and carry out green management activities according to plans. Since 2019, we have expanded the scope of compliance evaluation management to include overseas business sites. We expanded the evaluation target to include all executives and individuals in production teams, and we developed additional KPIs related to sustainability. Employee performance is managed through feedback twice a year. If there are special contributors to preventing environmental and safety risks or responding to an emergency, we reward them according to our regulations. On the other hand, in the case where environmental and safety risks are amplified by illegal acts, we manage them in accordance with our HR and reward & punishment regulations.

Green Management Audit

Hyosung Advanced Materials proactively accepts the government's environmental policies and carefully reviews the ESH regulations to improve the green management system. In addition, we actively participate in the audit and inspection proceeded by various stakeholders, such as the government, local governments, and private organizations. We also make efforts to minimize environmental impact by complying with laws and setting higher internal standards than legal standards. We execute self-inspection and carry out improvement work on the findings to strengthen the green management system. Under the leadership of the Green Management Committee, we regularly evaluate and manage the green management system in the degree of system implementation, level of risk removal, and room for improvement, resulting in sustainable implementation and improvement of the system.

Environmental Laws and Risk Management

Hyosung Advanced Materials rapidly identifies new or revised government laws and policies, international convention, or local government. We ensure strict compliance through dissemination and education. We prepare evaluation standards on our compliance, which is applied to our green management system for regular inspection of the compliance. Especially, in the case of installing, expanding, or changing a discharge or pollution control facility, we receive a review, inspection and evaluation from government agencies, and public, and private organizations.

Change Risk Management

Hyosung Advanced Materials identifies and analyzes all risks resulting from changes in raw materials including chemical substances, facilities, process design, operating conditions, pollutant-emitting facilities, off-site risk assessments, process safety management, and relevant laws and regulations. We review any changes in time to verify suitability and effectiveness, report the result of changes, and carry out training to prevent risks in advance.

Emergency Drill & Awareness-raising

Hyosung Advanced Materials provides training on environmental incident risks and prevention methods to all business sites. We carry out training on environmental laws, systems, related policies, water resource saving, hazardous materials treatment and handling, occupational safety and health, and safety and health for partners in an effort to strengthen and internalize green management capability. We provide systematic education and training and conduct regular checks to raise awareness of employees and stakeholders as well as secure the capability of green management. We aim to minimize risks through customized response training in various scenarios such as leakages due to facility failures, wastewater and toxic substance spills, as well as physical damages resulting from fire or natural disasters including earthquakes, typhoons, and deluges. Our emergency response manual enables prompt notification of an emergency across the company, ensuring timely and systematic response of all related departments and sectors. Through regular training such as joint fire drills with local fire stations and education on hazardous materials, we aim to raise awareness of environmental incidents and familiarize ourselves with the manual. We have post-emergency recovery measures in place to ensure rapid normalization.