Hankook Tire & Technology

1. Sustainable natural rubber policy or commitment for all its operations?

This indicator is disabled as the company does not operate rubber plantations.

2. Sustainable natural rubber policy or commitment applies to all suppliers?

The company has published a sustainable natural rubber policy which applies to all suppliers.

3. High-level position of responsibility for sustainability?

The company reports it has an ESG Strategy Committee which comprises members from senior management to decide on company-wide ESG directions and issues. This committee reports to the ESG Committee, which is headed by the Board of Directors.

4. One or more members within the board of the company have responsibility for sustainability?

Mr. Hyunbum Cho and Mr. Jongho Park are members of the Sustainability Management Committee, which is chaired by Mr. Sooil Lee. All three are members of the board.

5. Percentage or number of women in senior management team?

11.4% - The company reports 11.4% of senior managers or higher positions are female.

6. Percentage or number of women board members?

14.3% - The company reports 14.3% of the board of directors are females. Data as of 2021.

7. Member of multiple industry schemes or other external initiatives to reduce negative environmental or social outcomes associated with natural rubber production?

[Externally verified] The company is a member of WBCSD and UNGC, as well as multiple other organisations.

8. Collaboration with stakeholders to reduce negative environmental or social outcomes associated with natural rubber production?

The company signed an MOU in 2018 to restore endangered species in Daejeon with the Geum River Environmental Office, the Daejeon Metropolitan City Government, Soon Chun Hyang University, Chollipo Arboretum, the Daejeon Choongnam Civic Group for Ecosystem Protection, and the Daejeon Office of the Korea Federation for Environmental Movements. The company also reports participating in a blockchain-based sustainable natural rubber project PROJECT TREE.

9. Sustainability report published within last two years?

The company has published its ESG report for 2021 which covers both environmental and social information in detail.

10. Reports through standardised reporting systems?

The company's ESG report for 2021 is prepared in accordance with the 'Comprehensive Option' of the Global Reporting Initiative (GRI) standards. The company has also submitted CDP questionnaires for Climate Change, Forests, and Water Security in 2022.

11. Climate risks assessment available?

The company has conducted and published an assessment of climate-related risks including actual and potential impacts of climate change on the company; metrics, targets, and processes used to assess or manage climate risks. However, the information reported is not externally verified.

12. Lists countries and operations?

Manufacturing (Korea, China, USA, Hungary, Indonesia).

13. Lists countries sourcing from?

The company sources natural rubber from China, Hungary, Indonesia, the US, Korea, and other non-OECD regions for which the country of origin is not declared.

14. Total land area managed/controlled for natural rubber (ha)?

This indicator is disabled as the company does not operate rubber plantations.

15. Total natural rubber planted area (ha)?

This indicator is disabled as the company does not operate rubber plantations.

16. Scheme smallholders/outgrowers planted area (ha)?

This indicator is disabled as the company does not operate rubber plantations.

17. Unplanted area (areas designated for future planting) (ha)?

This indicator is disabled as the company does not operate rubber plantations.

18. Conservation set-aside area, including HCV area (ha)?

This indicator is disabled as the company does not operate rubber plantations.

19. Maps of estates/management units?

This indicator is disabled as the company does not operate rubber plantations.

20. Management plans for natural rubber production are available for all estates/management units?

This indicator is disabled as the company does not operate rubber plantations.

21. Monitoring of management plan implementation available for all estates/management units?

This indicator is disabled as the company does not operate rubber plantations.

22. Maps of scheme/outgrower smallholders?

This indicator is disabled as the company does not operate rubber plantations.

23. Names and locations of all third-party supplying industrial estates/management units?

24. List of jurisdictions where sourcing from smallholders?

25. Number of company owned natural rubber processing facilities?

This indicator is disabled as the company does not operate rubber plantations.

26. Names and locations of company owned natural rubber processing facilities?

This indicator is disabled as the company does not operate rubber plantations.

27. Number (or percentage) of company-owned processing facilities that source from company-owned operations and third parties?

This indicator is disabled as the company does not operate rubber plantations.

28. Reports total volumes (or percentages) sourced by company-owned processing facilities that come from company's own operations and third-parties?

This indicator is disabled as the company does not operate rubber plantations.

29. Number of third party supplying processing facilities?

30. Names and locations of all third party supplying processing facilities?

31. Number (or percentage) of third party supplying processing facilities that source from their own plantations and third party plantations?

32. Reports total volume (or percentages) sourced from third-party supplying processing facilities that come from the supplying facilities' own operations and third parties?

33. Total volume (or percentage) sourced for manufacturing that comes from intermediary traders rather than directly from processing facilities?

34. Time-bound commitment to achieve 100% traceability to processing facility level?

35. Percentage of supply traceable to processing facility level?

36. Time-bound commitment to achieve 100% traceability to industrial plantation level?

37. Percentage of supply from own processing facilities traceable to industrial plantation level?

This indicator is disabled as the company does not operate rubber plantations.

38. Percentage of supply from third-party processing facilities traceable to industrial plantation level?

39. Time-bound commitment to achieve 100% traceability to jurisdictional level for smallholders?

40. Percentage of supply from own processing facilities traceable to smallholder at jurisdictional level?

This indicator is disabled as the company does not operate rubber plantations.

41. Percentage of supply from third party processing facilities traceable to smallholders at jurisdictional level?

42. Member of the Global Platform for Sustainable Natural Rubber (GPSNR)?

[Externally verified] The company is a member of GPSNR. This has been verified via the GPSNR website.

43. Submitted self-declaration form for the Sustainable Natural Rubber Initiative (SNR-i)?

The company has submitted a self-declaration form for SNR-i.

44. Percentage area (ha) FSC certified?

This indicator is disabled as the company does not operate rubber plantations.

45. Time-bound plan for achieving FSC FM certification of estates/management units?

This indicator is disabled as the company does not operate rubber plantations.

46. Percentage of scheme/outgrower smallholders (ha) FSC-certified?

This indicator is disabled as the company does not operate rubber plantations.

47. Time-bound plan for achieving FSC certification of scheme/outgrower smallholders?

This indicator is disabled as the company does not operate rubber plantations.

48. Percentage of natural rubber supply (tonnes) from independent smallholders/outgrowers/third-party natural rubber suppliers that is FSC-certified?

This indicator is disabled as the company does not operate rubber plantations.

49. Percentage of all natural rubber products handled/traded/processed (tonnes) that is FSC-certified?

50. Percentage area (ha) PEFC certified (excluding FSC certified area)?

This indicator is disabled as the company does not operate rubber plantations.

51. Certified under voluntary sustainability certification scheme?

[Externally verified] The company's Geumsan plant is certified under ISCC.

52. Commitment to become 100% certified under voluntary sustainability certification scheme?

53. Commitment to zero conversion of natural ecosystems?

This indicator is disabled as the company does not operate rubber plantations.

54. Commitment to zero conversion of natural ecosystems applies to all suppliers?

55. Commitment to zero deforestation?

This indicator is disabled as the company does not operate rubber plantations.

56. Commitment to zero deforestation applies to all suppliers?

The company makes this commitment through the GPSNR Policy Framework. Full points have therefore been awarded on the basis of the company's alignment with GPSNR Policy Components that fully meet the SPOTT indicator criteria. The company's own reporting only mentions a commitment to the prevention of deforestation and the degradation of high conservation values (HCV).

57. Criteria and cut-off date for defining deforestation and/or ecosystem conversion?

This indicator is disabled as the company does not operate rubber plantations.

58. Criteria and cut-off date for defining deforestation in supplier operations?

The company makes this commitment through the GPSNR Policy Framework. GPSNR defines natural rubber sourced from deforested areas or where HCVs have been degraded after 1 April 2019 to be non-conformant with its policy. The company's own reporting defines deforestation as the degradation of high conservation values (HCV) and reports a cut-off date as April 1, 2019.

59. Evidence of monitoring deforestation and/or ecosystem conversion?

This indicator is disabled as the company does not operate rubber plantations.

60. Evidence of monitoring deforestation and/or ecosystem conversion in supplier operations?

61. Amount of deforestation and/or ecosystem conversion recorded in own operations since cut-off date?

This indicator is disabled as the company does not operate rubber plantations.

62. Amount of deforestation and/or ecosystem conversion recorded in supplier operations since cut-off date?

63. Commitment to restoration of deforestation/conversion?

This indicator is disabled as the company does not operate rubber plantations.

64. Commitment to restoration of deforestation/conversion applies to all suppliers?

The company commits suppliers to protect and restore natural forests and ecosystems. However, a cut-off date whereby areas deforested should be restored is not reported.

65. Implementing a landscape or jurisdictional level approach?

The company collaborates with the government and academic institutions to restore endangered species populations in Daejeon area, Korea.

66. Biodiversity policy?

This indicator is disabled as the company does not operate rubber plantations.

67. Biodiversity policy applies to all suppliers?

The company has published a biodiversity policy but it is very limited in detail and mostly applies to the company, and not its suppliers.

68. Identified species of conservation concern, referencing international or national system of species classification?

This indicator is disabled as the company does not operate rubber plantations.

69. Examples of species and/or habitat conservation management?

This indicator is disabled as the company does not operate rubber plantations.

70. Commitment to no hunting or only sustainable hunting of species?

This indicator is disabled as the company does not operate rubber plantations.

71. Commitment to no hunting or only sustainable hunting of species applies to all suppliers?

The company commits suppliers to the recognise traditional rights of access to hunt and harvest animals and plants for the sake of survival, and indigenous, cultural, and religious traditions, customs, and rituals.

72. Commitment to protect areas from illegal activities?

This indicator is disabled as the company does not operate rubber plantations.

73. Commitment to protect forest areas from illegal activities applies to all suppliers?

74. Evidence of protecting forest areas from illegal activities?

This indicator is disabled as the company does not operate rubber plantations.

75. Commitment to conduct High Conservation Value (HCV) assessments?

This indicator is disabled as the company does not operate rubber plantations.

76. Commitment to conduct High Conservation Value (HCV) assessments applies to all suppliers?

The company makes this commitment through the GPSNR Policy Framework. Full points have therefore been awarded on the basis of the company's alignment with GPSNR Policy Components that fully meet the SPOTT indicator criteria. The company also reports its own commitment for suppliers to conduct HCV assessments.

77. High Conservation Value (HCV) assessments available for all new plantings since 1st April 2019?

This indicator is disabled as the company does not operate rubber plantations.

78. High Conservation Value (HCV) management and monitoring plans available for all new plantings since 1st April 2019?

This indicator is disabled as the company does not operate rubber plantations.

79. Commitment to the High Carbon Stock (HCS) Approach?

This indicator is disabled as the company does not operate rubber plantations.

80. Commitment to the High Carbon Stock (HCS) Approach applies to all suppliers?

The company commits all suppliers to apply the HCS Approach, as defined by the HCS Approach Toolkit.

81. High Carbon Stock (HCS) assessments available?

This indicator is disabled as the company does not operate rubber plantations.

82. Peer review of all High Carbon Stock (HCS) assessments undertaken since April 2015 by the HCSA Quality Assurance Process?

This indicator is disabled as the company does not operate rubber plantations.

83. Commitment to conduct social and environmental impact assessments (SEIAs)?

84. Commitment to conduct social and environmental impact assessments (SEIAs) applies to all suppliers?

85. Social and environmental impact assessment (SEIAs) undertaken, and associated management and monitoring plans?

86. Commitment to no planting on peat of any depth?

This indicator is disabled as the company does not operate rubber plantations.

87. Commitment to no planting on peat of any depth applies to all suppliers?

The company makes this commitment through the GPSNR Policy Framework. Full points have therefore been awarded on the basis of the company's alignment with GPSNR Policy Components that fully meet the SPOTT indicator criteria. The company's own reporting only prohbits suppliers to develop or procure rubber from peatland. No definition of peatland is referenced.

88. Landbank or planted area on peat (ha)?

This indicator is disabled as the company does not operate rubber plantations.

89. Implementation of commitment to no planting on peat of any depth?

This indicator is disabled as the company does not operate rubber plantations.

90. Commitment to best management practices for soils and peat?

This indicator is disabled as the company does not operate rubber plantations.

91. Commitment to best management practices for soils and peat applies to all suppliers?

92. Evidence of best management practices for soils and peat?

This indicator is disabled as the company does not operate rubber plantations.

93. Commitment to best/sustainable tapping practices?

This indicator is disabled as the company does not operate rubber plantations.

94. Commitment to best/sustainable tapping practices applies to all suppliers?

95. Evidence of best/sustainable tapping practices?

This indicator is disabled as the company does not operate rubber plantations.

96. Commitment to zero burning?

This indicator is disabled as the company does not operate rubber plantations.

97. Commitment to zero burning applies to all suppliers?

The company commits all suppliers to no burning.

98. Evidence of fire monitoring and management?

This indicator is disabled as the company does not operate rubber plantations.

99. Details/number of hotspots/fires in company estates/management units?

This indicator is disabled as the company does not operate rubber plantations.

100. Details/number of hotspots/fires in suppliers operations/jurisdictions?

101. Time-bound commitment to reduce greenhouse gas (GHG) emissions intensity?

The company commits to reducing GHG emissions intensity by 50% by 2050 from 2018 levels.

102. GHG emissions intensity?

The company reports the GHG emissions intensity in 2021 as 1.00 (tCO2-eq/ton of finished product).

103. GHG emissions from land use change?

This indicator is disabled as the company does not operate rubber plantations.

104. Progress towards commitment to reduce GHG emissions intensity?

[Externally verified] Emissions intensity in 2021 (1.00) is a reduction from 1.02 in 2020. This information is externally verified by Korea Productivity Center.

105. Methodology used to calculate GHG emissions?

The company reports using the WRI Greenhouse Gas Protocol methodology.

106. Time-bound commitment to improve water use intensity?

The company commits to reduce water intake intensity by 30% (3.8m3/ton of finished product) by 2030 compared to 2018.

107. Water use intensity?

5.55 - As of 2021, intensity was 5.55 m3/ton of finished product.

108. Progress towards commitment on water use intensity?

[Externally verified] Intensity increased from 5.35 in 2020 to 5.5m3/ton finished product in 2021. This information is externally verified by Korea Productivity Center.

109. Time-bound commitment to improve water quality (BOD or COD)?

110. Progress towards commitment on water quality (BOD or COD)?

111. Treatment of effluents from processing facilities?

This indicator is disabled as the company does not operate rubber plantations.

112. Treatment of effluents from manufacturing facilities?

[Externally verified] The company treats wastewater before discharge. This information is externally verified by Korea Productivity Center.

113. Commitment to protect natural waterways through buffer zones?

This indicator is disabled as the company does not operate rubber plantations.

114. Implementation of commitment to protect natural waterways through buffer zones?

This indicator is disabled as the company does not operate rubber plantations.

115. Reducing odours from natural rubber processing or manufacuring facilities?

[Externally verified] The company reports that it strives to prevent air pollution by collecting and purifying harmful substances generated during tire production properly. Air pollutants emitted during tire manufacturing are discharged after treatment in air pollutant emission prevention facilities. This information is externally verified by Korea Productivity Center.

116. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

This indicator is disabled as the company does not operate rubber plantations.

117. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers, applies to all suppliers?

118. Commitment to no use of paraquat?

This indicator is disabled as the company does not operate rubber plantations.

119. Commitment to no use of paraquat applies to all suppliers?

120. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides?

This indicator is disabled as the company does not operate rubber plantations.

121. Commitment to no use of World Health Organisation (WHO) Class 1A and 1B pesticides applies to all suppliers?

122. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

This indicator is disabled as the company does not operate rubber plantations.

123. Commitment to no use of chemicals listed under the Stockholm Convention and Rotterdam Convention applies to all suppliers?

124. Chemical usage per ha or list of chemicals used?

This indicator is disabled as the company does not operate rubber plantations.

125. Implementation of commitment to minimise inorganic fertiliser usage?

This indicator is disabled as the company does not operate rubber plantations.

126. Integrated Pest Management (IPM) approach?

This indicator is disabled as the company does not operate rubber plantations.

127. Commitment to human rights?

The company makes this commitment through the GPSNR Policy Framework. Full points have therefore been awarded on the basis of the company's alignment with GPSNR Policy Components that fully meet the SPOTT indicator criteria. The company also reports its own commitment to the Universal Declaration of Human Rights.

128. Commitment to human rights applies to all suppliers?

The company commits suppliers to the Universal Declaration of Human Rights.

129. Progress on human rights commitment ?

[Externally verified] The company reports conducting human rights assessments and related training. This information is externally verified by Korea Productivity Center.

130. Commitment to respect Indigenous and local communities' rights?

This indicator is disabled as the company does not operate rubber plantations.

131. Commitment to indigenous and local communities' rights applies to all suppliers?

The company commits suppliers to the UN Declaration on the Rights of Indigenous Peoples.

132. Commitment to respect legal and customary land tenure rights?

This indicator is disabled as the company does not operate rubber plantations.

133. Commitment to legal and customary land rights applies to all suppliers?

The company only commits its suppliers to the recognition and protection of the customary, traditional, and communal land tenure rights of indigenous people and local communities. A commitment to respect legal rights is not reported.

134. Commitment to free, prior and informed consent (FPIC)?

This indicator is disabled as the company does not operate rubber plantations.

135. Commitment to free, prior and informed consent (FPIC) applies to all suppliers?

The company commits all suppliers to respect FPIC.

136. Details on Free, prior and informed consent (FPIC) process available?

This indicator is disabled as the company does not operate rubber plantations.

137. Examples of local stakeholder engagement to prevent conflicts?

This indicator is disabled as the company does not operate rubber plantations.

138. Details of process for addressing land conflicts available?

This indicator is disabled as the company does not operate rubber plantations.

139. Supports the inclusion of women across natural rubber operations, including addressing barriers faced?

This indicator is disabled as the company does not operate rubber plantations.

140. Commitment to mitigate impacts on food security?

This indicator is disabled as the company does not operate rubber plantations.

141. Progress on commitment to mitigate impacts on food security?

This indicator is disabled as the company does not operate rubber plantations.

142. Commitment to provide essential community services and facilities?

This indicator is disabled as the company does not operate rubber plantations.

143. Progress on commitment to provide essential community services and facilities?

This indicator is disabled as the company does not operate rubber plantations.

144. Commitment to provide business/work opportunities for local communities?

This indicator is disabled as the company does not operate rubber plantations.

145. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles?

The company makes this commitment through the GPSNR Policy Framework. Full points have therefore been awarded on the basis of the company's alignment with GPSNR Policy Components that fully meet the SPOTT indicator criteria. The company's own reporting only covers commitments to five of the total eight Fundamental ILO Conventions: freedom of association, no forced labour, child labour, equal remuneration, and no discrimination.

146. Commitment to Fundamental ILO Conventions or Free and Fair Labour Principles applies to all suppliers?

The company only reports committing its suppliers to five out of the total eight Fundamental ILO Conventions: freedom of association, no forced labour, child labour, equal remuneration, and no discrimination.

147. Progress on commitment to respect all workers' rights?

[Externally verified] The company reports conducting human rights assessments which include aspects of workers' rights: equal opportunity and non-discrimination, protection of freedom of association and collective bargaining, ban on forced labor, ban on child labor, and protection of rights to individual safety. This information is externally verified by Korea Productivity Center.

148. Commitment to eliminate gender related discrimination with regards to employment?

The company commits to prevent employment-related discrimination based on gender.

149. Commitment to eliminate gender related discrimination with regards to employment applies to all suppliers?

The company commits all suppliers to prevent employment-related discrimination based on gender.

150. Progress on commitment to eliminate gender related discrimination with regards to employment?

[Externally verified] The company reports information on progress on the commitment to eliminate gender-related discrimination with regard to employment. This information is externally verified by Korea Productivity Center.

151. Percentage or number of temporary employees?

251 (1.3%) - The company reports a total of 251 temporary employees across all its operations. Data as of 2021.

152. Percentage or number of women employees?

The company reports a total of 1957 permanent women employees and 15 temporary women employees. Data as of 2021.

153. Commitment to pay a living wage?

The company commits to pay the living wage to all workers.

154. Commitment to pay a living wage applies to all suppliers?

The company commits all suppliers to pay the living wage to all workers.

155. Progress on commitment to pay a living wage?

The company only reports information on 'ratios of standard entry level wage by gender compared to local minimum wage'. Living wage reporting was not found. Information is not externally verified.

156. Reporting of salary by gender?

The company reports the ratio of the basic salary and remuneration of women to men for each employee category. Information is not reported according to significant locations of operation as required by GRI reporting guidelines.

157. Commitment to address occupational health and safety?

The company commits to address health and safety at work for all workers.

158. Commitment to address occupational health and safety applies to all suppliers?

The company commits all suppliers to address health and safety at work for all workers.

159. Provision of personal protective equipment and related training?

160. Time lost due to work-based injuries?

The company reports LTIFR (Lost-Time Injuries Frequency Rate) for employees as 8% and for suppliers as 5.5%. Data as of 2021.

161. Number of fatalities as a result of work-based accidents?

The company reports one (1) fatality in 2020. Evidence is over two years old so full points cannot be awarded.

162. Commitment to support smallholders?

The company makes this commitment through the GPSNR Policy Framework. Full points have therefore been awarded on the basis of the company's alignment with GPSNR Policy Components that fully meet the SPOTT indicator criteria. The company's own reporting does not report a clear commitment, however, mentions supporting natural rubber smallholders with formic acid and knives as part of its CSR activities to improve the sustainability of natural rubber.

163. Percentage of supply from smallholders?

164. Programme to support scheme smallholders/outgrowers?

165. Percentage of scheme smallholders/outgrowers involved in programme?

166. Programme to support independent smallholders?

167. Percentage of independent smallholders involved in programme?

168. Process used to engage smallholder suppliers on compliance with company's policy and/or legal requirements?

169. Number or percentage of smallholder suppliers engaged on compliance with company's policy and/or legal requirements?

170. Process used to prioritise, assess and/or engage non-smallholder suppliers on compliance with company's policy and/or legal requirements?

The company muses ESG self-assessment questionnaires to evaluate suppliers and on-site visits are used to monitor compliance.

171. Number or percentage of non-smallholder suppliers assessed and/or engaged on compliance with company's policy and/or legal requirements?

[Externally verified] 70.1% - The company reports that as of 2021, 70.1% of suppliers received an ESG assessment. Also, the company is planning to conduct an ESG assessment for all (100%) suppliers by 2030 to strengthen ESG management within the value chain. This information is externally verified by Korea Productivity Center.

172. Suspension or exclusion criteria for non-smallholder suppliers?

The company only reports that 'if the negative social and/or environmental impacts resulting from violation of 'Supplier Sustainability Guidance' are critical, the company may terminate its relationships with the violating supplier immediately as contracted'. The timeframes for action or steps taken are not reported by the company.

173. Time-bound action plans (including Key Performance Indicators) for suppliers to be in compliance with natural rubber sourcing commitments?

The company reports information on action plans for suppliers that are planned to be completed in 2021, however, these action plans do not cover environmental aspects of sustainability in concern to sourcing natural rubber such as deforestation and no planting on peat.

174. Proportion of direct and indirect supply from third-parties that comes from natural rubber plantations which are compliant with natural rubber sourcing policies?

175. Percentage of supply coming from agroforestry?

176. Commitment to ethical conduct and prohibition of corruption?

The company commits to ethical conduct and the prohibition of corruption.

177. Commitment to ethical conduct and prohibition of corruption applies to all suppliers?

The company commits all suppliers to ethical conduct and the prohibition of corruption.

178. Progress on commitment to ethical conduct and prohibition of corruption?

[Externally verified] The company reports having an ethics management system that conducts ethics management training, awareness campaigns, etc. This information is externally verified by Korea Productivity Center.

179. Disclosure of the company’s management approach to tax and payments to governments?

The company reports having a tax policy, however, it does not states a governance body/executive-level position that is responsible for the tax policy and its review.

180. Whistleblowing procedure?

The company reports information on whistleblowing procedures which includes the methodology as well as information on how whistleblowers are protected.

181. Own grievance or complaints system open to all stakeholders?

The company has its own grievance or complaints system open to all stakeholders and provides a flowchart of the process.

182. Details of complaints and grievances disclosed?