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ESG

We have established three strategic directions and defined nine key initiatives. Through these efforts, we aim to embed sustainability into our operations and deliver tangible ESG outcomes.

Activity · Performance of Corporate Sustainability Management

Hyundai E&C diagnoses its home and abroad sustainable capacity and internal improvement activities by participating in the Dow Jones Sustainability Indices (DJSI) evaluation to practically achieve sustainable growth. As a domestic listed company, we also make public the evaluation result to Korea ESG evaluation agency ESG evaluation agency, Korea Corporate Governance Service (KCGS) to inspect our corporate sustainability management level in Environmental, Social, Governance objectively. We also endeavor to provide our shareholders and stakeholders with objective corporate sustainability management information. To this end, we engage in public disclosure and evaluation where global guidelines and UN Sustainable Development Goals (SDGs) are considered, including Global Reporting Initiative (GRI), recommendation of Task Force on Climate-related Financial Disclosures (TCFD), and standard of Sustainability Accounting Standards. Board (SASB).

Dow Jones Sustainability Indices (DJSI)

2020 2021 2022 2023 2024
DJSI World
(Leader)		 World
(Leader)		 World World World
  • DJSI Industry Leader (2011, 2013, 2014, 2015, 2016, 2017, 2018, 2020, 2021)
  • DJSI World (15 consecutive years)
  • DJSI Asia-Pacific (15 consecutive years)
  • DJSI Korea (16 consecutive years)

The DJSI evaluation hosted by S&P Dow Jones Indices, SAM (S&P Global Switzerland SA) in collaboration with Korea Productivity Center (KPC), Hyundai E&C has been nominated as construction industry world leader in 2011, 2013, 2014, 2015, 2016, 2017, 2018, 2020 and 2021. We entered DJSI Korea and DJSI World in 2009 and 2010, respectively. Since having entered DJSI Asia-Pacific, we have maintained our position for 15 consecutive years. It means our continuous system improvement and corporate sustainability management activities have been recognized.

Korea Institute of Corporate Governance and Sustainability(KCGS)

The assessment system consists of 7 levels (S/A+/A/B+/B/C/D), The Korea Corporate Governance Service is adequately equipped with the system aligned with the environmental, social, and governance model standards (less likelihood for undermining shareholder value with an excellent sustainable management system).
2020 2021 2022 2023 2024
Overall grade A A A A A
Environment A+ A A A A
Society A A A A+ A
Governance A A B+ A B+

Institutional shareholder Services(ISS)

A lower score indicates a higher level of management system and lower risk, and this is taken into account when determining the rating.
As of the first half of 2025
ISS ESG Corporate Rating C+
Environmental 1
Social 1
Governance 3

Sustainalytics ESG Rating

  • ESG Risk Rating : 25.8 (Medium Risk)
  • Ranking 19 in Construction & Engineering Sector (19 out of 336)

Risk classification : Negligible 0-10 / Low 10-20 / Medium 20-30 / High 30-40 / Severe 40+

As of April 2025

Carbon Disclosure Project(CDP)

CDP is the most reliable global sustainability index in the environmental sector, and it evaluates, analyzes, and reports on climate-related activities of global companies every year.

Hall of Fame for 7 consecutive years (2018~2024), Platinum Club for 4 consecutive years (2021~2024)
2020 2021 2022 2023 2024
CDP Rating A A- A- A A

UN Global Compact(UNGC)

United Nations Global Compact (UNGC) is an international agreement made by the former UN secretary-general Kofi Annan in 2000 to urge enterprises to support and execute social responsibility. In April 2010, Hyundai Engineering & Construction joined UNGC for the first time in the domestic industry. Through this, Hyundai Engineering & Construction has been recognized as a socially responsible company in name and reality. Also Hyundai E&C voluntarily participates in the OECD Guideline for Multinational Enterprise and fulfills its responsibilities as a social enterprise.

HUMAN RIGHTS
Principle 1 : Businesses should support and respect the protection of internationally proclaimed human rights
Principle 2 : Businesses should make sure that they are not complicit in human rights abuses
LABOUR STANDARDS
Principle 3 : Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining
Principle 4 : Businesses should uphold the elimination of all forms of forced and compulsory labour
Principle 5 : Businesses should uphold the effective abolition of child labour
Principle 6 : Businesses should uphold the elimination of discrimination in respect of employment and occupation
ENVIRONMENT
Principle 7 : Businesses should support a precautionary approach to environmental challenges
Principle 8 : Businesses should undertake initiatives to promote greater environmental responsibility
Principle 9 : Businesses should encourage the development and diffusion of environmentally friendly technologies
ANTI-CORRUPTION
Principle 10 : Businesses should work against corruption in all its forms, including extortion and bribery

Task Force on Climate-related Financials Disclosures(TCFD)

TCFD is a climate-related disclosure published by the Financial Stability Board (FSB) in 2017, and is used in various disclosure standards such as ISSB. In August 2022, Hyundai E&C declared to become TCFD supporters and disclosed our climate-related information in accordance with TCFD standards.

Governance
ㆍ The organization’s governance around climate-related risks and opportunities
Strategy
ㆍ The actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning
Risk Management
ㆍ The processes used by the organization to identify, assess, and manage climate-related risks
Metrics
ㆍThe metrics and targets used to assess and manage relevant climate-related risks and opportunities

Science Based Targets Initiative(SBTi)

SBTi is a voluntary initiative to provide a methodology for establishing science-based greenhouse gas reduction targets in line with the Paris Agreement objectives and to verify corporate reduction targets. Hyundai E&C committed to setting a science-based target in 2022, and became the first one among the domestic listed construction company to obtain approval for its carbon reduction targets in Q3 2023, establishing its credibility and earning recognition for the carbon neutrality roadmap externally.

Science Based Targets Initiative(SBTi)

2022 World Benchmarking Alliance – Nature Benchmark

  • 1st in South Korea, 3rd of Construction and Engineering

2023 World Benchmarking Alliance – Building Benchmark

  • 3rd of Construction, 14th of all
    (Subsectors : Construction, Property Development, Property Management)

2024 World Benchmarking Alliance – Urban Benchmark

  • Global 9th

Sustainability Report

You can see our previous Sustainability reports
on the HDEC Library page.

View Report(KO) Download Report(KO) View Report(EN) Download Report(EN) 2021 Hyundai E&C Declaration on Coal Exit

Implementation of Declaration for Coal Exit

As of January 22, 2021, Hyundai E&C decided not to participate in new coal business through the resolution of the Board of Directors. Furthermore, we have proactively responded to the climate change crisis and externally disclosed the 'Hyundai E&C Declaration for Coal Exit,' which emphasizes strengthening social responsibility management.

Summary of Hyundai E&C Declaration for Coal Exit
- Exclusion of new coal business
- Expanding our portfolio for renewable energy & eco-friendly business
- Eco-business investment & Social Contribution
- Propelling of Environmental Management
After 2021 Declaration for coal exit: Implementing Climate Change Response Measures
  • January 2021 Declaration for coal exit(board resolution)
  • July 2021 Public disclosure of Declaration for coal exit(sustainability report, website)
  • October 2022 Declaration for 2045 Net Zero Roadmap(sustainability report, website)
    Publication of Net-Zero Report
  • December 2022 Application for SBTi membership
    Transition to a renewable energy portfolio
  • Q3 2023 Approval for SBTi

Portfolio Transition and Expansion

ㆍReorganization of Renewable Energy Division, establishment of New Energy Business Unit
ㆍExecution of Eco-friendly projects in offshore wind power and Bio-gas
ㆍStart a Power Purchase Agreement business

Eco-Friendly Investments

ㆍPromotion of greenhouse gas emission reduction through social contributions (H-Green Saving)
ㆍExpansion of environmentally friendly R&D Investments
ㆍEstablishment of ESG Bond Investment Criteria

Strengthening Environmental Management

ㆍInduction into CDP Korea Committee's Hall of Fame for 7 consecutive years
ㆍMembership in the TCFD (Task Force on Climate-related Financial Disclosures) Alliance
ㆍEnhanced disclosure of TCFD Information
ㆍFormulation of environmental management policies

Sustainability Management Policy