Sustainable Value Creation
Hyundai E&C has declared the “creation of a sustainable habitat for humanity” as its vision of sustainable management, and dedicates its utmost efforts to enhance the happiness of humanity in addition to corporate value.
As a global construction company, Hyundai E&C aims to provide future solutions through its sustainable construction products and environment-friendly construction technology with the sustainability management vision of ‘Creating Sustainable Habitat for Human’.
Sustainability Management Vision & Strategy
Top 3 Goals
Creating a Sustainable Base of Life for Mankind:1>New era of prosperity to be created by Hyundai E&C(HDEC PROSPERITY), 2>New era of green environment to be led by Hyundai E&C(HDEC PLANET),3>New era of co-existence with Hyundai E&C(HDEC PEOPLE)
Three Management Principles
- Establishment of Stable Management Environment
- Hyundai E&C applies the principles of checks and balances and international standards to ensure the soundness of corporate governance, which is the foundation for rational decision-making and a successful business environment. Hyundai E&C, as a responsible corporate citizen, has been striving for attaining the trust of stakeholders through ethical management and compliance.
- Managing Risk Proactively
- Through proactive risk management, Hyundai E&C is striving for a stable business operation by proactively identifying potential risk factors and preventing risks from occurring. Hyundai E&C is also strengthening its competitiveness by conducting a systematic long-term strategic risk analysis to excavate new opportunities and integrate them into its business.
- Protection of Human Rights
in Value Chain - The human rights protection of the value chain is a value that must keep. As a global construction company, Hyundai E&C sets up the highest level of responsibilities to respect and protect human rights in all areas where it leads it business, fulfils social responsibilities and roles while making effort to minimize negative effects on human rights in order to prevent in advance, any infringement on human rights that may occur in any part of the value chain.
Seven Propelling Strategies
- 01
Enhancing Global Competitiveness
- Hyundai E&C has been Enhancing its global competitiveness in the world beyond Korea based on its leading business model and proven business capabilities.
- 02
Securing Core Technology
- Hyundai E&C has been striving to enhance the future core technologies in construction industry, thereby attaining the foundation for sustainable development of human society and business.
- 03
Responding Climate Changes
- Hyundai E&C has been improving its environmental value through various strategies to improve efficiency of environmental energy management recognizing the importance of responding climate change.
- 04
Enhancing Green Safety Infrastructure
- Hyundai E&C has been systematically minimizing safety accidents and reducing environmental impacts through a safety management system and an environment-friendly construction process.
- 05
Cultivating Innovative Talents
- Hyundai E&C has been cultivating innovative talents who can improve organizational efficiency and executive ability while creating new values.
- 06
Enhancing Value Chain Capability
- Hyundai E&C has been promoting the improvement of suppliers’ business capability and management stability while promoting the competitiveness of the value chain effectively by providing sustainable value chain management system.
- 07
Advancing Strategic Social Contributions
- Hyundai E&C has been promoting strategic social contribution projects based on industrial characteristics to improve social value in overseas countries where it operates business.
Activity · Performance of Corporate Sustainability Management
Hyundai E&C has diagnosed 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’s top ESG evaluation agency, Korea Corporate Governance Service (KCGS) to inspect our corporate sustainability management level in social responsibility and environment management 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).
DJSI Certification
- DJSI Industry Leader (2011, 2013, 2014, 2015, 2016, 2017, 2018, 2020)
- DJSI World (11 consecutive years)
- DJSI Asia-Pacific (11 consecutive years)
- DJSI Korea (12 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 and 2020. We entered DJSI Korea and DJSI World in 2009 and 2010, respectively. Since having entered DJSI Asia-Pacific, we have maintained our position for 11 consecutive years. It means our continuous system improvement and corporate sustainability management activities have been recognized.
Evaluation of Korea Corporate Governance Service (KCGS)
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Overall grade | A | A | A |
| Evaluation area(Environment) | A | A | A+ |
| Evaluation area(Society) | A | A | A |
| Evaluation area(Governance structure) | B+ | B+ | A |
※ The assessment system consists of 7 levels (S / A+ / A / B+ / B / C / D), and Hyundai E&C is “fully compliant with the Environmental, Social, and Governance (ESG) standards presented by Korea Corporate Governance Service (KCGS) and is unlikely to undermine shareholder value due to ESG risks”. We continue to maintain our EGS level.
Overseas(Institutional shareholder Sevices)
| March 2017 | May 2018 | November 2019 | ||
|---|---|---|---|---|
| ISS Govemance Quality Score | 3 | 3 | 4 | |
| Board Structure | 4 | 4 | 5 | |
| Compensation | 2 | 2 | 2 | |
| Shareholder Rights | 3 | 1 | 1 | |
| Audit | 1 | 5 | 1 | |
Award of CDP
- Registered into the hall of fame at CDP korea (2018).
- Won the award of “carbon management honors club.” (ranked first in all areas, 5 consecutive years from to 2014 the 2018).
- Won the award of “carbon management sector winners” (ranked first in the industry, 7 consecutive years from to 2012 bid).
- Won “carbon management special award” as a newcomer (2011).
As the world's most reliable global sustainable index, the cdp evaluation evaluates, analyzes, and reports climate change response activities of major global listed companies every year.
Award of CRRA
- CRReporting Award'12 - Best integrated report, 1st Runner-up
- CRReporting Award'11 - Best 1st time report, 2nd Runner-up
Corporate Register Reporting Awards (CRRA) is an international award where it solely evaluates corporate responsibility reports issued worldwide at a professional level. The evaluation is conducted fairly via online voting of about 37,000 global voters.
OECD Guideline for Multinational Enterprise
- OECD Guidline for Multinational Enterprises
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. Since its official joining in UNGC on April, 2010, Hyundai E&C turned into a company responsible for the global community both in reality and in name.
Sustainability Report
You can see our previous Sustainability reports
on the HDEC Library page.
Implementation of Declaration on Coal Exit (As of Q3 2021)
- Exclusion of new coal business
-
As of January 22, 2021, we decided not to participate in new coal business through the resolution of the BoD.
- Hyundai E&C’s Coal Exit Policy is reflected in 2021 Sustainability Report to declare our commitment.
Comprehensive abandonment of participation in main & sub-process business
- Vietnam Quang Trach PKG-2 (Plant main biz), Bangladesh Matarbari PKG-2 (Infra sub biz)
- Expanding our portfolio for renewable energy & eco-friendly business
-
On January, 2021, we have reorganized our existing energy division’s coal-fired power sales organization.
- New 2 teams (renewable energy sales), strengthening fuel cells and wind power business functions
We have established the “Hyundai E&C’s Vision 2030 Strategy” to expand our value chain at all stages.
- Hydrogen Plant, Wind Power, Waste Resource Business, Energy Transformation & Smart City Projects
- Eco-business’investment & Social Contribution
- In the first half of 2022, ESG bonds will be issued to expand investment in eco-friendly businesses.
- Review of global business standards, K-Taxonomy, and external credit rating agencies’ criteria
We will continue to expand and promote social contribution projects in HSE sector.
- CEMP business agreement with Seoul council on social welfare (8/26)
- Local community social contribution in Vietnam (in second half of 2022)
- Propelling of Environmental Management
- We are planning to conduct Hyundai E&C’s value chain diagnosis to establish a carbon-neutral roadmap strategy.
- Expansion of the reduction items for green house gas emission, Diagnosis to improve the our reduction goal (in second half of 2022)
We will continue to practice disclosure of information related ESG environmental management.
- Sustainable Product Sales, TCFD/WEF/SASB reporting guidance, Water usage & Biodiversity information etc.
