What is ESG? ESG is an acronym for Environment, Social and Governance, and the name of a system that enables a company to operate transparently in terms of environmental, economic and social sustainability. This is the first of a series of articles in which we will showcase the efforts our company is making to make our operations sustainable and our planet more liveable.
Hankook Tire places a strong emphasis on innovation in the way the company operates and creates value, and is working with the global community to do all we can to combat climate change and reduce the ecological footprint of our products. To achieve this goal, we are reducing our greenhouse gas emissions (Scope 1, 2, 3) while continuing our research and development efforts, establishing environmentally friendly facilities and collaborating with our suppliers.
Our ambition is to reduce Scope 1 and 2 emissions from the manufacturing phase by 46.2% and Scope 3 emissions by 27.5% by 2030, and to reach net zero emissions by 2050. To achieve this, in 2023 we introduced 79 energy saving measures globally in the manufacturing phase, resulting in a global emissions reduction of 4.45% compared to 2019.
At Hankook, we are developing an integrated system for site-level energy data management and regularly evaluate our internal Scope 1 and 2 emissions. To determine the value of Scope 3 emissions, we are building an emissions calculation system using data from our corporate management system and supplier carbon surveys. These efforts will support our investments and activities to reduce greenhouse gas emissions and help us achieve our medium and long-term environmental goals.
Scope 1 (direct emissions): Greenhouse gas emissions
In particular, during the curing process, when tires are exposed to high pressure and temperature in the mold, LNG (liquefied natural gas) is used to generate the necessary heat (steam). As a result, the greenhouse gas emissions from the combustion of LNG represent a significant proportion of our direct Scope 1 emissions.
Scope 2 (indirect emissions)
These come from electricity consumption, which accounts for nearly 70% of emissions from our manufacturing activities.
Scope 3 (indirect emissions)
Emissions from the value chain, where used tires and raw material purchases represent a significant share.
In order to ensure transparency and credibility, Scope 1, 2 and 3 emissions are verified by an independent verification body within our company. Early identification of any adverse values and the implementation of necessary corrective actions helps to reduce potential risks while increasing stakeholder confidence in our company’s climate reporting.
Hankook is a leader in expanding the circular business model. This includes the production of sustainable raw materials, recycled and sustainable carbon black, and the use of synthetic rubber. These activities make a major contribution to reducing our CO2 emissions, thereby strengthening our competitiveness.
1. – Design
We operate an information system on hazardous chemicals used in our products to pre-screen them. To reduce rolling resistance and energy consumption and improve fuel efficiency, we design tires with reduced weight and long life.
2. – Raw material procurement
We use sustainable raw materials and continuously build and improve our relationships with our suppliers.
3. – Production
We reduce waste and contaminants and ensure they are properly managed. Reduce water and energy consumption in the production phase.
4. – Use
To reduce rolling resistance, reduce fuel consumption and increase fuel efficiency, we reduce the weight of tires and improve their wear resistance.
5. – Reducing environmental damage
Extend product life and recycle worn tires as secondary raw material in the form of new tires or other rubber products.
6. – Reduction
To reduce CO2 emissions, we are increasing our use of renewable energy and reducing the weight of our tires. We do this by using technologies that extend the life of our products to reduce resource consumption.
7. – Extended lifetime
We are researching clean, innovative technologies that not only extend the life of our tires, but also allow them to be recycled.
8. – Reuse
We retread tires that are in good structural condition. This will significantly reduce resource consumption and help protect the environment.
9. – Renewable materials
We replace limited petroleum-based raw materials with renewable raw materials and continuously improve the technology to use new materials.
10. – Recycling
We process end-of-life tires to produce recycled rubber or carbon black, and strive to replace conventional raw materials with recycled raw materials through the efficient use of resources.
11. – Sustainable materials
We use sustainable raw materials to produce products that deliver maximum driving performance.