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Hyosung has launched the ESG Management Committee, setting into motion efforts to establish a sustainable management system that would help make the group a 100-year company
□ Transparent Management Committee under the Board of Directors reorganized into ESG Management Committee
Hyosung Corporation, holding company of the Hyosung Group, announced that it held a board meeting on April 29 to reorganize the Transparent Management Committee under the Board of Directors that had dealt with improvement of governance into the ESG Management Committee to strengthen ESG management in the fields of environment, society and governance.
The establishment of the ESG Management Committee is aimed at proactively responding to demands from customers, society, and shareholders to ensure environmental protection and social safety nets.
The ESG Management Committee will be responsible for ESG-related policy, risk strategies for ESG policy, and investment and activities on the environment, safety, and climate change, as well as deliberation of transactions between specially related persons and decisions of management matters to protect shareholders' rights which had been dealt with by the Transparent Management Committee.
□ At least two-thirds of outside directors sit in the committee which will decide key ESG management-related issues
The ESG Management Committee consists of five members -- CEO Kim Kyu-young and four outside directors (Chung Sang-myeung , Kim Myung-ja, Kwon O-gon, and Chung Dong-chae). Considering the importance of ESG, one outside director was added to the Transparent Management Committee which had had four members. Former Prosecutor General Chung Sang-myeung, outside director who headed the Transparent Management Committee, will continue to chair the new committee.
In addition to the holding company, major affiliates such as Hyosung TNC, Hyosung Advanced Materials, Hyosung Heavy Industries, and Hyosung Chemical also plan to set up an ESG Management Committee under their respective CEOs in the first half of the year.
Chairman Cho Hyun-joon said, "ESG management is an identity that Hyosung must have in order to make a leap toward becoming a premium brand in the global market. He expressed hope that "Hyosung will grow into a '100-year company’ loved and trusted by shareholders and society by protecting the environment and enhancing righteous and transparent management, and seeking growth together with partner companies."
□ Hyosung leads ESG by establishing Transparent Management Committee and strengthening eco-friendly businesses
Hyosung Group split into a holding company and four business units in 2018 in order to improve its governance structure through enhancement of transparent management and establishment of an independent management system. The transition to the holding company system was completed at the end of last year.
In 2018, Chairman Cho broke the practice of the CEO serving as chair of the board of directors and stepped down as chair of the board, paving the way for an outside director to serve as chairperson. He also established the Transparent Management Committee and strengthened the independence of outside directors by having an outside director chair the outside directors recommendation committee.
Hyosung has been expanding eco-friendly energy businesses such as fiber recycling, hydrogen, solar, and ESS, and strengthening eco-friendly management by making efforts to reduce carbon dioxide emissions.