Hankook Tire Receives SBTi Approval

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by KnowESG,

Hankook & Co

KnowESG_Hankook Tire Receives First SBTi Approval
Image courtesy of Hankook Tyre

Renowned global tire enterprise Hankook Tire & Technology (Hankook Tire) has been granted official endorsement from the Science Based Targets initiative (SBTi) for its ambitious near-future greenhouse gas (GHG) reduction objectives by 2030 and its visionary net-zero target for 2050.

This achievement marks a momentous stride forward in the execution of the company's comprehensive '2050 Carbon Neutrality Roadmap.'

The Science Based Targets initiative (SBTi) is a worldwide initiative dedicated to aiding corporations in establishing targets that align with the most current climate science in accordance with the objectives set out in the Paris Climate Agreement. This includes the pivotal aim of curbing global average temperature escalation to a mere 1.5 °C.

In consonance with SBTi's validation, Hankook Tire has set its sights on accomplishing a remarkable 46.2% reduction in the combined direct and indirect GHG emissions (Scope 1 and 2) produced during its production processes by 2030, in comparison to 2019 levels.

Additionally, within the same timeframe, the company is resolute in diminishing absolute GHG emissions stemming from its value chain (Scope 3) by an impressive 27.5% relative to the 2019 benchmark.

The acknowledgement accorded to Hankook Tire by SBTi for these pioneering targets is a monumental stride, and it signifies the inaugural instance within South Korea's tire sector wherein a company has committed to achieving net-zero emissions by 2050 in alignment with the SBTi Net Zero standard. A diverse consortium of approximately 5,700 enterprises globally is engaged in the SBTi framework, with 15 Korean enterprises, including Hankook Tire, having secured validation.

With an unwavering recognition of sustainability as a pivotal ethos within its business endeavours, Hankook Tire has been wholeheartedly immersed in ESG (Environmental, Social, and Governance) management practices since 2010. This dedication led to the establishment of an ESG Committee within the company's Board of Directors in 2021, further culminating in the formulation of its visionary "2050 Carbon Neutrality Roadmap" in 2022.

Throughout the past year, the corporation diligently executed a multitude of initiatives aimed at reducing GHG emissions and energy consumption, guided by the Climate Change Committee under the aegis of the ESG Committee.

These efforts encompassed the implementation of cutting-edge high-efficiency facilities, the incorporation of low-carbon energy sources, the adoption of fuel conversion methodologies, and the continuous enhancement of energy optimisation. The fruits of these endeavours are vividly evident in a notable reduction of approximately 2.74% in GHG Intensity (measured in tCO2/ton) in contrast to figures from 2021.

Underpinned by its steadfast commitment to sustainable natural rubber policies and the holistic 'E.Circle' circular economy framework, Hankook Tire systematically applies four key methodologies – Recycle, Renewable, Reuse, and Reduce – across its complete manufacturing spectrum. This concerted approach is aimed at cultivating environmentally friendly and enduring products.

Consequently, in the year 2021, Hankook Tire achieved a remarkable feat by obtaining the esteemed International Sustainability and Carbon Certification (ISCC) PLUS, an internationally recognised eco-friendly certification—an industry first in the tire domain.

The corporation remains resolute in its quest to augment the integration of sustainable raw materials in the production of its eco-conscious tires, thereby expanding its repertoire from a mere three to an impressive seventeen material categories.

In May of the current year, Hankook Tire forged a collaborative partnership with Kumho Petrochemical to advance the creation of eco-friendly tires utilising advanced synthetic rubber formulations. This strategic collaboration serves to accelerate one of the company's pivotal ESG objectives: attaining a commendable sustainable raw material ratio of 55% by the year 2025.

Meanwhile, Hankook Tire's relentless pursuit of carbon neutrality has earned it widespread recognition, with top-tier ratings bestowed upon the company by multiple global ESG evaluation bodies.

Notably, in November of the preceding year, Hankook Tire secured inclusion in the prestigious Dow Jones Sustainability Indices World (DJSI World) – an eminent assessment index for sustainability management – marking the seventh consecutive year of this commendation.

Furthermore, the company's preeminence in ESG management was unequivocally affirmed in February, as it attained the distinguished "Gold Class" designation—the highest accolade possible—in S&P Global's Annual Sustainability Report's Industry Awards for the year 2022.

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Source: Hankook Tire

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