Hanwha Aerospace Ranks First in Asia and Fifth in the World in Anti-Corruption Index

On February 16, Hanwha Aerospace announced that it had been rated as one of the top five companies worldwide by Transparency International in its most recent Defense Companies Index on Anti-Corruption and Corporate Transparency (DCI). The DCI 2020 evaluated the levels of commitment to anti-corruption and transparency of 134 of the world’s largest defense companies across 38 countries. Hanwha Aerospace was revealed to be the highest-ranking Asian company in the index after reviewing the scores of all the companies.

Only two firms – Leonardo of Italy and Raytheon of the United States – received A grades, while a total of 14 companies, including Hanwha Aerospace, Lockheed Martin of the United States, and BAE Systems of the United Kingdom, received B’s. A and B grade companies accounted for approximately 12 percent of the 134 companies that were evaluated. Hanwha Aerospace’s overall score placed it among the top five companies assessed by Transparency International.

The DCI assesses key standards of anti-corruption and transparency in 10 distinct areas based on a six-tier scale that ranges from A to F. A, B, C, D, E and F grades indicate very high, high, moderate, limited, low, and very low levels of commitment, respectively.

Hanwha Aerospace received high scores in three key areas: Leadership and Organizational Control, Supply Chain Management, and Support to Employees.

The company received its highest rating in the Leadership and Organizational Control category for its senior management’s work to prevent corruption, implement relevant policies, and establish anti-corruption programs. Hanwha Aerospace was also recognized for its efforts to comply with transparent and fair business practices, maintain integrity, and adhere to anti-corruption policies when selecting suppliers. Specific programs, including those that offer ongoing training for all employees and protect internal whistleblowers, also received high marks.

Last year, Hanwha Aerospace obtained an overall grade of A, the highest score among Korean defense companies that were evaluated by the Korea Corporate Governance Service (KCGS) across environmental, social and governance (ESG) categories.

“Building on this top-five rating in the Defense Companies Index on Anti-Corruption and Corporate Transparency, as well as last year’s A-grade ESG evaluation, we will not only contribute to national defense as a representative defense company in Korea, but will also fulfill our role as a responsible member of society,” said a Hanwha official.

Earlier this year, Seung Youn Kim, Chairman of Hanwha Group, emphasized the importance of ESG in his New Year’s message, stating that “We need to strengthen our own ESG efforts, through better compliance and by implementing strategies that enhance the sustainability of our own business activities.”