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?

ESG Strategy Committee led by the CEO.

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

Mi Ra Lee (Independent director) - Chair, ESG Committee.

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

17% - The company reports the proportion of female managers in positions of senior manager or higher as 17% in 2022.

6. Percentage or number of women board members?

14.3% - The company reports that 14.3% of the board of directors are females. Data as of 2022.

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 reports participating in a blockchain-based sustainable natural rubber project 'PROJECT TREE' to enable traceability along the natural rubber supply chain - from supply to manufacturing and sales.

9. Sustainability report published within last two years?

The company's latest sustainability report was published in 2023.

10. Reports through standardised reporting systems?

The company has published its Climate 2023 CDP Questionnaire.

11. Climate risks assessment available?

[Externally verified] 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 and manage climate risks. Evidence is externally verified by limited assurance from the Korea Productivity Center.

12. Lists countries and operations?

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

13. Lists countries sourcing from?

The company procures natural rubber from Indonesia (44.8%), Thailand (25.5%), Côte d'Ivoire (8.9%), Cambodia (1.4%), and Vietnam (0.04%). It does not state where the other 19.36% comes from.

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 all scheme/outgrower smallholders?

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

23. Maps 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. Maps 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 company owned natural rubber manufacturing facilities?

The company reports it owns eight natural rubber manufacturing facilities.

30. Maps of manufacturing facilities?

The names and addresses of all eight company-owned natural rubber manufacturing facilities are published by the company.

31. Number of third party supplying processing facilities?

32. Maps of all third party supplying processing facilities?

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

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

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

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

37. Percentage of supply traceable to processing facility level?

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

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

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

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

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

42. 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.

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

44. 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.

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

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

46. Percentage area (ha) FSC certified?

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

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

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

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

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

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

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

50. 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 or processing facilities.

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

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

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

53. Certified under voluntary sustainability certification scheme?

[Externally verified] ISCC.

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

55. Commitment to zero conversion of natural ecosystems?

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

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

57. Commitment to zero deforestation?

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

58. 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. However, a clear reporting specifying commitment to zero deforestation by all suppliers could not be found by ZSL.

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

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

60. Criteria and cut-off date for defining deforestation and/or ecosystem conversion 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 for suppliers as the degradation of high conservation value (HCV) areas and reports a cut-off date as April 1, 2019.

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

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

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

63. 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.

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

65. Commitment to restoration of deforestation/conversion in own operations since cut-off date?

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

66. Commitment to restoration of deforestation/conversion in supplier operations since cut-off date?

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.

67. Implementing a landscape or jurisdictional level approach?

The company makes this commitment through the GPSNR Policy Framework. Partial points have therefore been awarded on the basis of the company's alignment with GPSNR Policy Components that do not fully meet the SPOTT indicator criteria. The company's own reporting also states collaboration with the government and academic institutions to restore endangered species populations in the Daejeon area, Korea. However, the company's own reporting is over two years old now.

68. Biodiversity policy?

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

69. Biodiversity policy applies to all suppliers?

The company has a biodiversity policy but it does not apply to all suppliers. It is also more tailored towards the company's own impact on biodiversity, rather than that of its suppliers.

70. 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.

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

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

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

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

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

The company commits suppliers to 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.

74. Commitment to protect areas from illegal activities?

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

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

76. Evidence of protecting forest areas from illegal activities?

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

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

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

78. 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 to suppliers to conduct HCV assessments.

79. 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.

80. 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.

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

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

82. 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.

83. High Carbon Stock (HCS) assessments available?

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

84. 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.

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

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

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

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

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

89. 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. However, reporting using a recognised definition of peat or specifying no planting on peat of any depth by suppliers could not be found by ZSL.

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

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

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

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

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

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

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

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

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

95. Commitment to best/sustainable tapping practices?

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

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

97. Evidence of best/sustainable tapping practices?

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

98. Commitment to zero burning?

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

99. Commitment to zero burning applies to all suppliers?

The company commits all suppliers to no burning.

100. Evidence of fire monitoring and management?

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

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

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

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

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

The company reports a target to reduce its Scope 1 and 2 emissions by 46.2% and Scope 3 emissions by 27.5% by 2030 from the 2019 baseline and to ultimately become net zero in 2050.

104. GHG emissions?

The company reports its GHG emissions intensity (scope 1 and scope 2) in 2022 as 0.97 (tCO2-eq/ton of finished products).

105. GHG emissions from land use change in company's own operations (scope 1)?

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

106. GHG emissions from land use change in supplier operations (scope 3)?

107. Progress towards commitment to reduce GHG emissions?

[Externally verified] Emissions intensity in 2022 (0.97) is a reduction from 1.00 in 2021. Evidence is externally verified by the Korea Productivity Center.

108. Methodology used to calculate GHG emissions?

The company reports using the IPCC Guidelines for National Greenhouse Gas Inventories, 2006 to calculate GHG emissions.

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

The company commits to reducing water withdrawal intensity by 30% (3.8m3/ton of finished product) by 2030 against a 2018 baseline.

110. Water use intensity?

5.16 - The company reports water withdrawal intensity in 2022 as 5.16 m3/ton of finished product.

111. Progress towards commitment on water use intensity?

[Externally verified] The water withdrawal intensity of the company has decreased from 5.55m3/ton finished product in 2021 to 5.16m3/ton finished product in 2022. Evidence is externally verified by the Korea Productivity Center.

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

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

114. Treatment of effluents from processing facilities?

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

115. Treatment of effluents from manufacturing facilities?

[Externally verified] The company treats wastewater from manufacturing facilities before discharge. Evidence is externally verified by the Korea Productivity Center.

116. Commitment to protect natural waterways through buffer zones?

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

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

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

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

[Externally verified] The company reports it has installed air pollutant prevention equipment to prevent environmental pollution caused by air pollutants, however, this information does not mention odor. Evidence is externally verified by the Korea Productivity Center.

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

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

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

121. Commitment to no use of paraquat?

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

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

123. 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.

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

125. 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.

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

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

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

128. Implementation of commitment to minimise inorganic fertiliser usage?

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

129. Integrated Pest Management (IPM) approach?

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

130. 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.

131. Commitment to human rights applies to all suppliers?

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

132. Progress on human rights commitment?

[Externally verified] The company reports it conducts human rights impact assessments once a year at all its operations to identify human rights concerns and also mentions conducting human rights training for its employees. Evidence is externally verified by Korea Productivity Center.

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

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

134. 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.

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

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

136. 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.

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

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

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

The company commits all suppliers to respect FPIC.

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

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

140. Examples of local stakeholder engagement to prevent conflicts?

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

141. Details of process for addressing land conflicts available?

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

142. 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.

143. Commitment to mitigate impacts on food security?

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

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

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

145. Commitment to provide essential community services and facilities?

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

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

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

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

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

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

The company commits to the ILO's Declaration on Fundamental Principles and Rights at Work.

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

The company commits all suppliers to the ILO's Declaration on Fundamental Principles and Rights at Work.

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

[Externally verified] The company reports conducting human rights assessments which include aspects of workers' rights, a result of the assessments is a low awareness of policies, the company has developed a training programme to address this knowledge gap. Additionally, labour councils have been introduced at work sites to enable better grievance reporting related to workplace issues. Evidence is externally verified by Korea Productivity Center.

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

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

152. 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.

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

[Externally verified] The company reports it has a grievance handling process where employees are free to request improvement actions for discriminatory treatment and sexual harassment in the workplace. The company also provides prevention training at least once a year to all its employees to prevent discrimination at work and workplace harassment. Evidence is externally verified by the Korea Productivity Center.

154. Percentage or number of temporary employees?

3% - The company reports the percentage of non-regular employees in 2022 as 3%.

155. Percentage or number of women employees?

10.4% - The company reports the proportion of female employees in 2022 as 10.4%.

156. Commitment to pay a living wage?

The company only commits to paying the minimum wage.

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

The company only commits suppliers to paying the minimum wage.

158. 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'. The information on the decent living wage is not reported.

159. Reporting of salary by gender?

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

160. Commitment to address occupational health and safety?

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

161. 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.

162. Provision of personal protective equipment and related training?

The company mentions PPE training and awareness raising. However, no figures showing the number of employees trained, or hours dedicated to training, have been reported.

163. Time lost due to work-based injuries?

The company reports LTIFR (Lost-Time Injuries Frequency Rate) for employees as 8.8% and for suppliers as 9.3% in 2022.

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

The company reports one (1) fatality in 2020. However, the evidence is over two years old.

165. 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 tapping knives as part of Project TREE's JPA.

166. Percentage of supply from smallholders?

167. Programme to support scheme smallholders/outgrowers?

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

169. Programme to support independent smallholders?

170. Percentage of independent smallholders involved in programme?

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

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

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

The company mandates supplier ESG self-assessments as part of registration of new raw material suppliers. On-site visits are also carried out in parallel to ESG self-assessments to monitor compliance.

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

[Externally verified] 100% - The company reports it achieved a 100% response rate among 413 suppliers subject to ESG assessments in the comprehensive supplier assessment conducted in 2022. Evidence is externally verified by the Korea Productivity Center.

175. Suspension or exclusion criteria for suppliers?

The company reports it provides tailored improvement guides with relevant departments for suppliers to develop corrective action plans. If a supplier is classified as high risk for three consecutive years despite the implementation of such improvement activities, the company assumes a strict approach and suspends any further business with them. However, the timeframes for action or steps taken are not reported by the company.

176. 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.

177. Proportion of supply from suppliers that is verified as deforestation- and/or conversion-free (DCF)?

178. Percentage of supply coming from agroforestry?

179. Commitment to ethical conduct and prohibition of corruption?

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

180. 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.

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

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

182. Disclosure of the company's management approach to tax and payments to governments?

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

183. Whistleblowing procedure?

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

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

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

185. Details of complaints and grievances disclosed?

The company publishes a summary table, however, no reporting of individual grievances is available.