’s Commitment to Sustainability
At Hanwha, we are firm in our belief that the choices we make today will impact the world tomorrow.
Therefore, we develop practical solutions to global issues through our business, technological, and corporate activities.
As a leader for positive change around the world, we also pursue sustainable development opportunities.
With a sharp focus on the research and development of eco-friendly technologies, we are addressing urgent environmental issues such as climate change and air pollution by producing clean energy solutions to ensure a sustainable future.
We strive to make a positive impact on the global community through our corporate activities. To achieve this, we established a working environment that inspires professional development. We also began implementing a healthier work culture and supporting social sustainability through better compliance management and participation in social impact activities.
As the Fourth Industrial Revolution advances, we will stand at the forefront of technological innovation that will form the foundation for sustainable industrial and economic development.
United Nations’ Sustainable Development Goals (SDGs)
Countries and organizations around the world have rallied around the United Nations’ Sustainable Development Goals (SDGs): a set of interconnected objectives to “achieve a better and more sustainable future for all” by 2030. Cross-sector collaboration – economic, socio-political, and environmental – is crucial to achieve the 17 SDGs and their 169 development targets.
’s Support for the UN Sustainable Development Goals
Hanwha is a firm supporter of the UN SDGs, particularly those we can directly address through our business, technology and social impact activities. Our business activities cover the entire ESG spectrum, and Hanwha remains committed to working together to achieve a sustainable future for humankind.
Some of the ways Hanwha contributes to the SDGs include:
- Hanwha DREAMPLUS
- Hanwha Science Challenge
- Hanwha-KAIST Spacekids Program
- Solar energy
- Hydrogen energy
- Wind energy
- Energy Storage Systems
- Solar panel donations to schools across the world
- Hanwha Happy Sunshine Campaign
- Hanwha Making a Clean School Campaign
- Quality job creation
- Economic productivity improvement
- Shared growth and fair trade agreements with small to medium-sized business partners
- Win-win growth fund
- Safety policies, regular safety inspections, safety education and strictly managed emergency response training
- Leading the global energy transition through green energy investments
- Investment in renewable energy infrastructure and manufacturing facilities
- Hydrogen to gas turbine technology (H2GT): Hydrogen as a decarbonizing solution for existing natural gas infrastructure
- Research and development of eco-friendly materials and plastics (such as Plastics-to-Chemicals, ECO-DEHCH plasticizer, bioplastics and more)
- Research on effective methods for storing and utilizing natural resources (Research focused on improving LNG efficiency, such as reducing evaporation rate, preventing methane slip, and re-liquefaction)
- Implementing consistent and structured procedures for managing hazardous substances
- Clean energy solutions (solar, hydrogen, wind)
- Eco-friendly mobility (Urban Air Mobility)
- Satellite climate monitoring
- Commitment to "coal-free finance“
- Using hydropower to produce raw materials for solar panels (REC Silicon)
- K-RE100, K-EV100
- Hanwha Clean Up Mekong Initiative
- Hanwha Solar Forests
- Hanwha Solar Beehive
- World Economic Forum (WEF)
- United Nations Convention to Combat Desertification (UNCCD)
- Global Green Growth Institute (GGGI)
- Partnering for Green Growth and the Global Goals 2030 (P4G)
Ethical management based on integrity is a core principle for Hanwha.
It will establish ethical and responsible management standards.
Hanwha Group, which since its foundation has been devoted to its community and has grown alongside the nation, in order to build an even more transparent and ethical management foundation, is actively practicing ethical management with qualitative growth as its top priority.
In 2018, Hanwha established the Hanwha Compliance Committee in order to improve corporate governance by enhancing transparency in management, setting up a foundation for responsible management, and strengthening board-centered management. Further, Hanwha’s major affiliates are taking active steps, such as gradually excluding prior Hanwha Group employees from eligibility for their respective external director positions, to strengthen the independence of their external directors, promote transparent management, improve corporate governance structures, and foster shareholder-friendly management.
In July 2018, Hanwha Group established the Hanwha Compliance Committee to promote group-level corporate compliance. The establishment of the Hanwha Compliance Committee is significant in that it was kick-started not by external pressure but by the internal efforts of Hanwha Group employees and executives actively practicing Hanwha’s philosophy of “Going Further Together” based on compliance and ethical management.
The Hanwha Compliance Committee aims to establish corporate compliance management of a global standard through its comprehensive programs ranging from the development of internal policies, educational programs, and corporate diagnosis to implementations. Further, the Hanwha Compliance Committee will support Hanwha’s affiliates in their practice of self-management and will promote a voluntary compliance management culture in the workplace for each.
The Status of the
Hanwha Compliance Committee is a group-level consultative body that promotes compliance management for all Hanwha’s affiliates by establishing group-level compliance policies and inspecting and providing support to each of the respective affiliates regarding their implementation of compliance policies.
’s Structure and Role
The Hanwha Compliance Committee is comprised of five members, more than half of which are external experts appointed to maintain independence and fairness. In addition, the Hanwha Group reorganized each of its affiliates’ compliance organizations and increased the number of professionals with compliance expertise.
The Hanwha Compliance Committee receives quarterly reports on major compliance issues upon which it deliberates and decides on the best courses of action.
Duties of the
The Hanwha Compliance Committee directly performs compliance duties for the Hanwha Group, ranging from education, development of self-compliance guidelines, and dissemination of compliance-related messages.
The Hanwha Compliance Committee organizes training programs to develop a voluntary corporate compliance culture amongst its employees and to strengthen the relevant expertise of compliance personnel. In addition, training curricula suitable to the business areas and duties of each of the respective affiliates are being developed and upgraded.
02 Compliance Guideline Development
The Hanwha Compliance Committee, on an annual basis, prepares and distributes compliance guidelines for each of the major regulations and applicable laws while advising each affiliate to develop their own set of compliance guidelines based on their respective business needs and circumstances.
03 Examining and Strengthening Hanwha’s Corporate Compliance
The Hanwha Compliance Committee provides assistance for each of the affiliates’ respective self-inspection and improvement activities to proactively address any potential risks that may arise. Further, the Hanwha Compliance Committee has put in place an external reporting system through which all internal and external stakeholders are able to request an investigation, and the applicable affiliate receiving such a request can take all appropriate measures in the event of illegal management activity.
04 Promoting Corporate Compliance
The Hanwha Compliance Committee selects timely topics on compliance management and distributes relevant messages to each of the affiliates, contributing to the employees’ awareness of compliance issues and compliance culture within the group.
Compliance Support for Business
The Hanwha Compliance Committee reviews and supplements the work plans of each compliance organization of Hanwha’s affiliates. Further, the Hanwha Compliance Committee evaluates work performance each year based on this review to support and manage compliance performance in the workplace.
Hanwha Group Strengthens ESG Management to a Global Level
In his 2021 New Year’s address, Hanwha Chairman Seung Youn Kim said, “Many global companies have set environmental, social, and governance (ESG) standards for their operations as part of their corporate behavior. And as a global leader in renewable energy, we have to proactively tackle climate change and lead the environmental efforts that will take us into a zero-carbon era.”
Hanwha Group has established and implemented management strategies to enhance sustainability and strengthen ESG management to a global level.
Hanwha Group formed the Hanwha Group ESG Committee in May of 2021 to carry out group-level ESG activities, and to support and advise its affiliates on ESG management.
Established under the Hanwha Compliance Committee, the corporate compliance-management consulting body, Hanwha Group ESG Committee is comprised of the key executives from the Hanwha Compliance Committee, the HR and Finance departments of Hanwha Corporation, the Hanwha Communications Committee, and from each of the major affiliates, across the four sectors of ESG management, such as environment, social responsibility, governance, and external communication.
The Committee holds regular quarterly meetings and ad-hoc meetings. It strives to enhance the ESG-management system within Hanwha Group and support affiliates’ ESG-management activities by helping establish strategies for each business area and sharing information through ESG-related seminars and workshops.
In 2021, Hanwha Group established ESG committees within the board of directors for each of its seven listed affiliate companies (Hanwha Corporation, Hanwha Aerospace, Hanwha Systems, Hanwha Solutions, Hanwha Life, Hanwha General Insurance, and Hanwha Investment & Securities) and two of its non-listed affiliate companies (Hanwha Asset Management and Hanwha Energy).
To strengthen the independence and expertise of the ESG committees, each of the chairpersons and majority of the members of each of the respective committees were appointed amongst independent directors.
Each of the ESG committees, established within the respective board of directors of the affiliates, is the highest decision-making organization overseeing ESG-management activities of the respective affiliate. Through quarterly meetings and status checks, the committees develop basic ESG-centered policies and strategies and review mid to long-term goals of responding to climate change, fulfilling social responsibilities, and enhancing stakeholder engagement.
ESG Management PerformanceEarning “Grade A” in ESG ratings
Our efforts to implement ESG management have been recognized by the 2021 environmental, social and governance (ESG) ratings of the Korea Corporate Governance Service (KCGS). Six out of seven listed affiliate companies of Hanwha received an overall Grade A. Hanwha Corporation, Hanwha Aerospace and Hanwha Life maintained Grade A ratings for two consecutive years, while Hanwha Solutions and Hanwha General Insurance each improved ratings by one grade level over the previous year. Hanwha Corporation and Hanwha Solutions received Grade A+ in the social category because of their active engagements in social responsibilities and expanded stakeholder communications. In addition, Hanwha Corporation was once again recognized for ESG management performance with an overall Grade A for corporate ESG evaluation in 2022, conducted by the NICE Investors Service.
Key ESG Activities
- Expanding green
- · Solar energy
- · Wind energy
- · Hydrogen energy
- Creating an
- · Circular economy
- · Coal–free financing
- Ensuring employee
rights and healthy work
- · Right to rest breaks
- · Human rights promotion
- · Work environment improvement
- · Grievance management
- Creating customer
satisfaction and mutual
- · Quality management
- · Customer rights promotion
- · Customer protection
- · Support for vulnerable consumer groups
- · Board independence
- · Board diversity
- · Shareholder communications
- · Shareholder participation in management