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Governance

In accordance with the demand and expectation from various stakeholders, Hyosung Advanced Materials is trying to evolve into a sustainable company fulfilling its economic, social, and environmental responsibilities.

System

  • Governance Structure & Responsibility

    Hyosung Advanced Materials puts constant efforts to establish transparent governance through responsible management centered on the Board of Directors.
    We operate a governance system in which the CEO and top management cooperate to resolve ESG management issues after sufficient review and discussion.
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    Governance Structure & Responsibility
    • Board of Directors
    • Sustainability Steering Committee (SSC) Sustainability Management Secretariat Review strategy and key issue management, Review and approve policy, annual budget, Review and approve key business plan in relation to climate change
      • Green Management Committee Chairperson : CTO/CPO

        Review and resolution of green management-related agenda such response to climate change, reducing environmental impacts and ecofriendly activities.

      • SCM Committee Chairperson : Chief Procurement Officer

        Review and resolution of supply chain management -related agenda such as supplier code of conduct, supplier evaluation and audit, supplier engagement activities.

      • SHE Committee Chairperson : CSO

        Review and resolution of health and safety issues including employees and subcontractors. Risk management of accidents, natural disasters, and process-related accidents, etc.

      • Stakeholder Committee, Chairperson : Chief Finance Officer

        Review and resolution of agenda related to communication with internal and external stakeholders such as investors, shareholders, customers, and local communities

      • Social Contribution Committee, Chairperson : Chief Administration Officer

        Review and resolution of social-related agenda such as HR management, ethical management, audit, information security and purchasing.

      • Risk Management Committee Chairperson :Chief Strategy Officer

        For business continuity, risk management in the overall management of the company, including environment, supply chain, purchasing, ethics, finance, and reputation, and deliberation on related issues

  • Sustainability Steering Committee
    Hyosung Advanced Materials operates the Sustainability Steering Committee composed of the company's top management to systematically and continuously encourage and ensure that sustainability is a consideration for employees‘ daily work. Sustainability activities and performance are regularly reported to the top management through this committee. As the decision-making body for sustainability, the SSC discusses and decides major issues upon voting. The SSC also discusses and decides the direction of the company's future sustainability management based on the current industry situation and trends, which are shared with the sub-committees so that activities to derive actual change takes place.
  • Specialized Sub-committees
    The Sustainability Management Secretariat and the six specialized sub-committees take lead in Hyosung Advanced Materials’s sustainability activities on a corporate-wide level including overseas subsidiaries. The specialized sub-committees were established to ensure the planning and execution of sustainability management activities for each field. The sub-committees regularly review and monitor the activities, and major issues are reported to the SSC for review and guidance, and decision-making. The CEO appoints each committee’s chairperson who is top management-level executive(i.e. C-level). And each committee is composed of members who are executives in charge of each sector. Together, they discuss and carefully review the agenda items for each committee sector upon their expertise. In order to ensure careful discussion and review on the issues in each management area, the specialized sub-committees consist of the directors(or C-level) of each field serving as the chairperson and business managers and executives as members. Working-level employees under each chairperson serve as the assistant for each committee, organize quarterly or regular meetings during which members share the relevant information, check the progress of implementation goals, and discuss solutions to the issues. To guarantee effective work and improvements, designated team leaders and working-level employees of each field including overseas corporates join the specialized sub-committees to plan and execute improvement tasks.
  • Sustainability Management Secretariat
    The Sustainability Management Secretariat(SMS) assists in raising employee awareness of sustainability management activities and promoting improvement activities. The SMS members serve as stewards for the sub-committees. They review the planning of improvement activities in each field so that the direction and feedback discussed by top management and sub-committee members are properly reflected in the activities of each committee. In particular, they share both the domestic and global trends of sustainable management, manage and monitor the implementation of improvement tasks, and provide assistance to ensure that task are completed.

Key Agendas for Sustainability Steering Committee (2023 2nd Half)

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Key Agendas for Sustainability Steering Committee (2023 2nd Half)
Committee Name Key Agendas Participated Members
Sustainability Steering Committee
  1. 1. Report on major external ESG ratings
  2. 2. Report on stakeholder response status and voting of sustainability manager appointment
  3. 3. Report on GHG emissions management status and reduction goals
  4. 4. Report on biodiversity risks and voting for initiative plans at global sites
  5. 5. Report on the establishment of product Life Cycle Assessment (LCA) processes and management regulations
  6. 6. Report on other major ESG activities results
  7. 6-1. Current status and plans of key sustainability trainings
  8. 6-2. Status of maintaining the supplier management system
7 out of 10 members
  • Key Agendas for Sustainability Steering Committee (2023 1st Half) icon-circle-button-more-view-down
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    Key Agendas for Sustainability Steering Committee & its Sub-committe (2023 1st Half)
    Committee Name Key Agendas Participated Members
    Sustainability Steering Committee
    1. 1. Report on global scope 1, 2, 3 calculation results and global GHG emission management plans
    2. 2. Voting on global scope 1, 2, 3 reduction target setting
    3. 3. Report on key ESG activities in the first half of 2023, and plan for the second of 2023
    		8 out of 12 members
  • Key Agendas for Sustainability Steering Committee (2022 2nd Half) icon-circle-button-more-view-down
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    Key Agendas for Sustainability Steering Committee & its Sub-committe (2022 1st Half)
    Committee Name Key Agendas Participated Members
    Sustainability Steering Committee
    1. 1. Report on key sustainability management activities in 2022
    2. 2. Report on internal and external changes in ESG-related environment & associated risks, and resolution of necessary tasks
    3. 3. Report on the preparation for SBTi target approval, and resolution of the 2023 Action Plan
    4. 4. Report on the excess emissions of domestic business sites in 2022, and resolution on the surplus sales plan
    5. 5. Discussions and resolutions on the change of the specialized sub-committee under the SSC
    		7 out of 12 members
  • Key Agendas for Sustainability Steering Committee & its Sub-committee (2022 1st Half) icon-circle-button-more-view-down
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    Key Agendas for Sustainability Steering Committee & its Sub-committe (2022 1st Half)
    Committee Name Key Agendas Participated Members
    Sustainability Steering Committee
    1. 1. Voting for the establishment of two new Sub-committees
    2. 2. Report on the major activities and improvements for sustainability in the first half of 2022, and plan for the second of 2022
    3. 3. Progress report on GHG emissions inventory setting for SBT and voting for management plans
    4. 4. Report on GHG excess/shortage at Korean sites by scenario analysis as per the revised NDC in 2021
    5. 5. Appointment of new member of the SSC and its Sub-Committees
    		9/12members
    Green Management Committee
    1. 1. Report on GHG emissions calculations for setting the SBT and management plan
    2. 2. Report on GHG excess/shortage at Korean sites by scenario analysis as per the revised NDC in 2021
    3. 3. Progress report on the improvement status for green management indicators
    4. 4. Report on the calculation status of GHG emissions by products and voting for fostering maintenance/management manpower
    		9/11members
    Social Contribution Committee
    1. 1. Voting for the renewal of Human Rights Policy
    2. 2. Voting for the renewal of Code of Ethics
    3. 3. Progress report on global key sustainable improvement tasks in 2022
    		7/12members
    Stakeholder Committee
    1. 1. Report on plan of sustainable publications in 2022
    2. 2. Report on 2022 CSR plan and measurement results of social value creation in 2022
    		3/3members
    Risk Management Committee
    1. 1. Report on risks related the Directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive(EU)
    2. 2. Report on the risks and need to reinforce management of biodiversity risks
    3. 3. Report on risks related ISSB disclosure (in relation to climate change)
    		3/3members
    Supply Chain Management
    1. 1. Report on the Directive of the European Parliament and of the Council on Corporate Sustainability Due Diligence and amending Directive(EU) and impact on supply chain management
    2. 2. Voting for establishing a global supply chain management strategy
    3. 3. Voting for the renewal of sustainable procurement policy and sustainable environment-friendly purchase guidelines
    4. 4. Report on management and response results of major suppliers and voting for improvement tasks
    		8/10members
  • Key Agendas for Sustainability Steering Committee & its Sub-committee (2021 2nd Half) icon-circle-button-more-view-down
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    Key Agendas for Sustainability Steering Committee & its Sub-committee (2021 2nd Half)
    Committee Name Key Agendas Participated Members
    Sustainability Steering Committee
    1. 1. Report on major activities and performances of sustainability in 2021 and major Tasks for 2022
    2. 2. Voting for SBTi participation and action plan
    3. 3. Report on the improvement plan for green management indicators
    4. 4. Voting for raising the "2030 GHG reduction target"
    5. 5. Appointment of new members of Green Management and Social Contribution Committees
    		10/10members
    Green Management Committee
    1. 1. Report on climate change risk and SBTi participation plan
    2. 2. Voting for the improvement plan for green management indicators
    3. 3. Report on raising the "2030 GHG reduction target"
    4. 4. Report on performance compared to 2021 environment invest plan and voting for 2022 budget
    		13/13members
    Social Contribution Committee
    1. 1. Report on ESG evaluation results in 2021 and voting for improvement tasks in 2022
    2. 2. Report on human rights risk management improvements in 2022
    3. 3. Report on supply chain risk management improvements in 2022
    4. 4. Report on the improvement to sustainable management education in 2022
    5. 5. Report on ISO37301 (Compliance Management System) certification
    		11/13members
    Stakeholder Committee
    1. 1. Report on plan of sustainable management publications
    2. 2. Report on 2022 CSR plan and measurement of social value creation
    3. 3. Voting for disclosure the fair trade compliance program
    4. 4. Report on improvement of the stakeholder engagement principle
    		3/3members
    Risk Management Committee
    1. 1. Report on risk management system improvement
    2. 2. Report on the main contents of COP26 and related risks
    3. 3. Report on risks and countermeasures following the introduction of the government
    4. 4. Report on expected changes and risks following the establishment of the ISSB
    		3/3members
  • Key Agendas for Sustainability Steering Committee & its Sub-committee (2021 1st Half) icon-circle-button-more-view-down
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    Key Agendas for Sustainability Steering Committee & its Sub-committee (2021 1st Half)
    Committee Name Key Agendas Participated Members
    Sustainability Steering Committee
    1. 1. Report on the major activities and improvements for sustainabilitiy in the first half of 2021
    2. 2. Voting for major KPI establishments
    3. 3. Report on the setting of the Science-based Target (SBT)
    4. 4. Voting for acquisition of carbon labeling for key products
    5. 5. Appointment of new members of the SSC and its sub-committee
    		10/10members
    Green Management Committee
    1. 1. Report on the 2nd planning period results and 3rd planning period plan for K-ETS(Emissions Trading System)
    2. 2. Voting for SBT settings
    3. 3. Report of the global environmental &safety inspection results
    		12/13members
    Social Contribution Committee
    1. 1. Progress report on major sustainability improvement projects of overseas subsidiaries in 2021
      1. 1-1. Report on the Establishment of sustainable procurement policy and its declarations of compnay-wide announcement
      2. 1-2. Report on the ESG-related provisions in supplier contracts
      3. 1-3. Report on the establishment of the sensitive transaction process
    2. 2. Voting for the resolution to strengthen supplier re-evaluation items in 2021
    3. 3. Report of global human rights impact assessment results and voting for annual assessment
    		12/13members
    Stakeholder Committee
    1. 1. Report on the scheduled to publish 2020 Hyosung Advanced Materials' Sustainability Report
    2. 2. Report on the results of CSR activities in 2020 and the first half of 2021
    		3/3members
    Risk Management Committee
    1. 1. Status report on the ESG risks by secter
    2. 2. Report on the mandatory ESG disclosure for listed firms in Korea
    		3/3members
  • Key Agendas for Sustainability Steering Committee & its Sub-committee (2020 2nd Half) icon-circle-button-more-view-down
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    Key Agendas for Sustainability Steering Committee & its Sub-committee (2020 2nd Half)
    Committee Name Key Agendas Participated Members
    Sustainability Steering Committee
    1. 1. Report on major activities and performances of sustainability in 2020
    2. 2. Appointment of new members of the SSC and its Sub-Committees
    		10/10members
    Green Management Committee
    1. 1. Report on actual environment & safety CAPEX in 2020 and voting for 2021 budget
    2. 2. Report on results of environment and safety inspection at the workplace
    3. 3. Voting for the “2030 GHG reduction target”
    4. 4. Report on the necessity of strengthening climate change
    		12/13members
    Social Contribution Committee
    1. 1. Report on the results of improvement by social sector in 2020
    2. 2. Voting for 3rd amendment of Code of Ethics
    3. 3. Report on the global improvement plans for ethics, human right, environment and etc.
    		11/13members
    Stakeholder Committee
    1. 1. Publication report of HAMC's sustainability report
    2. 2. Report on results of improvements in the governance sector in 2020
    3. 3. Report on 2021 CSR plan
    		3/3members
    Risk Management Committee
    1. 1. Report on COVID-19 response
    2. 2. Report on latest trends in response to climate change
    		3/3members
  • Key Agendas for Sustainability Steering Committee & its Sub-committee (2020 1st Half) icon-circle-button-more-view-down
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    Key Agendas for Sustainability Steering Committee & its Sub-committee (2020 1st Half)
    Committee Name Key Agendas Participated Members
    Sustainability Steering Committee
    1. 1. Status reporting of sustainabilitiy improvement tasks
    2. 2. Voting for selecting focus issues of the Sustainability Report 2019
    		10/10members
    Green Management Committee
    1. 1. Voting of the “Green Management Vision 2030”
    2. 2. Voting on establishing the new green management system
    3. 3. Report on the environmental and safety monitoring results for all sites
    		8/9members
    Social Contribution Committee
    1. 1. Report on education reinforcement to enhance employee competence
    2. 2. Process improvement to reinforce supply chain (suppliers & partners) sustainability
    3. 3. Revision and update of the “Employee handbook for fair transaction and compliance
    		10/10members
    Stakeholder Committee
    1. 1. Voting for the CSR operational system and strategy
    2. 2. Report on the website renewal plan
    3. 3. Report on the issuance of 2019 Governance Report
    		3/3members
    Risk Management Committee
    1. 1. Report on COVID-19 response
    2. 2. Report and voting regarding preparation for the prolongation of COVID-19
    		3/3members

Achievements

Sustainability Achievements

As a member of the UNGC, Hyosung Advanced Materials supports the SDGs, reflecting them in our overall sustainability management activities whose results are disclosed through COP (Communication on Progress). In 2021, we participated in the SDGs Accelerator program hosted by the UNGC Korea, and we have put in efforts to build CSE(Creating Social Ecosystem) in connection with the key sustainability management areas in accordance with the specific goals of the UN SDGs.
United Nations Global Compact
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Sustainability Achievements
Key Issues and SDGs Response Directions and Objectives Key Performance Indicators (KPIs)
Climate Change Response
7 AFFORDABLE AND CLEAN ENERGY 13 CLIMATE ACTION
  1. Establish a greenhouse gas emission management system and implement Science-Based Targets (SBT) across all global sites
  2. Continuously reduce emissions and expand the use of renewable energy
  3. Promote emission reduction activities among partner companies
  1. ① Yearly achievement rate against SBT (Scope 1,2)
  2. ② Greenhouse Gas (GHG) emissions
  3. ③ Rate of renewable energy usage compared to the previous year
  4. ④ Number of emission management partner companies (Korea)
  5. ⑤ Number of biodiversity conservation projects
Eco-friendly Business
6 CLEAN WATER AND SANITAION 13 CLIMATE ACTION 14 LIFE BELOW WATER 15 LIFE ON LAND
  1. Continuous development of products aligned with Zero Emission, Zero Waste, and Zero Impact principles
  2. Efforts to expand the portfolio of environmentally friendly products
  3. Promotion of eco-friendly management through the development of green technologies and certification considering Life Cycle Assessment (LCA)
  1. ① Rate of eco-friendly R&D expenditure within total R&D expenditure1)
  2. ② Number of products holding carbon labeling certification
    1. 1) The proportion of eco-friendly R&D expenditure within total R&D expenditure.
Management of Environmental Pollutants
6 CLEAN WATER AND SANITAION 13 CLIMATE ACTION 14 LIFE BELOW WATER 15 LIFE ON LAND
  1. To minimize the negative environmental impact resulting from business activities, efforts are made to prevent environmental accidents, reduce emissions of pollutants and waste, increase recycling, and enhance water resource management
  1. ① NOx Emission Intensity
  2. ② Waste Recycling Rate
Workplace Safety and Health
3 GOOD HEALTH AND WELL-BEING 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  1. Systematic response through the breakdown of safety management issues for the establishment of a safe workplace
  2. Ongoing safety risk management and accident prevention through continuous education and training
  3. Regular internal inspections, external assessments, board reporting, and approval of key plans
  1. ① Number of serious accidents
  2. ② Number of fires and explosions
  3. ③ Lost Time Injury Frequency Rate (LTIFR) in Korea
Create a Positive Workplace
5 GENDER EQUALITY 8 DECENT WORK AND ECONOMIC GROWTH 10 REDUCED INEQUALITIES
  1. Eradicate human rights violations and establish a non-discriminatory organizational culture.
  2. Support professional and substantial capacity development to enable the growth of both the organization and individuals together.
  1. ① Rate of human rights education completion
  2. ② Rate of female managers (Korea)
  3. ③ Rate of sites that have undergone human right impact assessment
Sustainable Supply Chain
8 DECENT WORK AND ECONOMIC GROWTH 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  1. Expand ESG-related management areas, including emissions management for suppliers.
  2. Strengthen competitiveness through the expansion of ESG assessments and support programs for partner companies.
  3. Enhance sustainable procurement practices through increased awareness and education for purchasing staff.
  1. ① Pledge rate of key suppliers to a code of conduct
  2. ② Rate of key suppliers subjected to ESG assessments
  3. ③ Amount of eco-friendly purchases (in Korea)
Mutual Growth with Community
1 NO POVERTY 3 GOOD HEALTH AND WELL-BEING 4 QUALITY EDUCATION 8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE
  1. Activities to support self-reliance of the vulnerable groups(i.e. employment support)
  2. Promote of business-related programs
  3. Provide community with necessary support through two-way communication
  1. ① Number of CSR programs
  2. ② Hours of voluntary work
  3. ③ Number of beneficiaries
  4. ④ Social value measurement from CSR activities(Korea)
Customer Satisfaction and Product Responsibility
8 DECENT WORK AND ECONOMIC GROWTH 9 INDUSTRY, INNOVATION AND INFRASTRUCTURE 12 RESPONSIBLE CONSUMPTION AND PRODUCTION
  1. Enhance customer value through securing Value in Use (ViU) based on customer needs for improved value.
  2. Achieve zero customer complaints through the strengthening of quality management systems.
  3. Produce products with consideration for user convenience, safety, and product life cycle (LCA).
  1. ① Number of VOC (Voice of Customer)
  2. ② Certification acquisition rate of the quality management system
  3. ③ Pass rate for testing the presence of harmful substances in products
Enhance Ethical Management and Anti-Corruption
16 PEACE, JUSTICE AND STRONG INSTITUTIONS
  1. Promote ethical management practices among employees through the operation of a code of ethics and related processes.
  2. Eliminate risks associated with illegal activities such as fair trade and anti-corruption.
  1. ① Foster ethical management practices among employees through the operation of a code of ethics and related processes.
  2. ② Eliminate risks associated with illegal activities such as fair trade and anti-corruption.

Governance

BoD Operation

Hyosung Advanced Materials secures the Board of Directors’ transparent and independent decision-making authority and operates a governance system which enables efficient business management based upon appropriate checks and balances. As the highest decision-making body of the company, the Board of Directors(BoD) reviews and decides on matters required by law or corporate articles of association as well as matters delegated by the general meeting of shareholders. The BoD is also responsible for the review and decision of the foundational principles of business management and its operation aiming to improve interests of all stakeholders including shareholders.
Sustainability Steering Committee

Principles of the BoD

  • Transparency
  • Specialty
  • Diversity
  • Efficiency
  • Independence

Sustainability Steering Committee

As the highest decision-making body, the Board of Directors(BoD) secures authority to transparent and independent decision-making by appointing members with diversity and expertise based on the five principles. It has built a governance structure that enables efficient management activities through checks and balances. Based on the Charter of Corporate Governance established to build sound and transparent company governance, Hyosung Advanced Materials realizes fair, transparent, and responsible management, and complies with the Code of Best Practices for Corporate Governance. The gap with the Code of Best Practices for Corporate Governance is clearly disclosed in its corporate governance report.

We disclose our sound
and transparent governance.