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 4 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)
Twelve Propelling Strategies
- 01
Enhancing Global Competitiveness
- Based on its differentiated technology and proven business track record, Hyundai E&C will lead the future markets by transforming into Total Solution Creator covering all areas of construction.
- 02
Innovating Core Technology and Service
- Hyundai E&C strives to provide customer-centric services by focusing on securing core technologies to lead the era of the fourth industrial revolution.
- 03
Responding to Climate Change
- Hyundai E&C is committed to responding to climate change by seeking green, low-carbon transition of its businesses aligned with its future business strategy and recognized for its industry-leading competitiveness in responding to climate change.
- 04
Realizing Eco-friendly Construction
- Hyundai E&C is focused on using smart construction technologies to build green construction process and minimize environmental impact while improving construction efficiency.
- 05
Cultivating Innovative Talents
- Hyundai E&C is strengthening its future competitiveness by fostering and developing innovative talents, which is the driving force behind its corporate growth and development.
- 06
Enhancing Value Chain Capability
- Hyundai E&C strives to establish a joint growth system based on cooperation through sustainable supply chain management.
- 07
Improving Safety & Health Implementation
- Hyundai E&C makes “safety” a top priority in corporate management and strives to establish a safety culture and enhance safety performance by building systematic infrastructure and system.
- 08
Advancing Strategic Social Contribution
- Hyundai E&C, as a global builder which has grown together with the Korean people, is actively engaging local communities through strategic CSR activities, seeking win-win growth.
- 09
Establishing Sound Governance
- Hyundai E&C has built a sound and transparent governance structure based on the three principles of board independence, management expertise, and stakeholder value enhancement.
- 10
Internalizing Compliance Ethical Management
- Hyundai E&C is building trusted relationship with stakeholders through ethical management activities and fair trade compliance by strengthening compliance and ethical management from employees to subsidiaries, subcontractors, and business partners.
- 11
Managing Risk Proactively
- Hyundai E&C effectively improves business stability through preemptive risk management and is exploring new business opportunities based on long-term strategic risk analysis.
- 12
Protecting Human Rights in Value Chain
- Hyundai E&C has established the highest level of human rights management standards to respect and protect the rights of all stakeholders and is compliant with the human rights regulations of the country where it operates.
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).
Dow Jones Sustainability Indices (DJSI)
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| DJSI | World (Leader) |
World | World (Leader) |
World (Leader) |
World |
- DJSI Industry Leader (2011, 2013, 2014, 2015, 2016, 2017, 2018, 2020, 2021)
- DJSI World (13 consecutive years)
- DJSI Asia-Pacific (13 consecutive years)
- DJSI Korea (14 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 13 consecutive years. It means our continuous system improvement and corporate sustainability management activities have been recognized.
Korea Institute of Corporate Governance and Sustainability(KCGS)
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| Overall grade | A | A | A | A | A |
| Environment | A | A | A+ | A | A |
| Society | A | A | A | A | A |
| Governance | B+ | B+ | A | A | B+ |
Morgan Stanley Capital International(MSCI) ESG Rating
| 2020 | 2021 | 2022 | |
|---|---|---|---|
| ESG Rating | B | BB | BBB |
Institutional shareholder Services(ISS)
| March 2017 | May 2018 | November 2019 | |
|---|---|---|---|
| ISS Governance Quality Score | 3 | 3 | 4 |
| Board Structure | 4 | 4 | 5 |
| Compensation | 2 | 2 | 2 |
| Shareholder Rights | 3 | 1 | 1 |
| Audit | 1 | 5 | 1 |
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.
| 2018 | 2019 | 2020 | 2021 | 2022 | |
|---|---|---|---|---|---|
| CDP Rating | A | A- | A | A- | A- |
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.
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 plans to join SBTi according to the following procedure.
※ SBTi Corporate Net-Zero Standard
2022 World Benchmarking Alliance – Nature Benchmark
- 1st in South Korea, 3rd of Construction and Engineering
2022 KSA(Korean Standards Association)’s KSI(Korean Sustainability Index)
- 1st rank of Construction and Engineering
Sustainability Report
You can see our previous Sustainability reports
on the HDEC Library page.
Implementation of Declaration on Coal Exit (As of Q4 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.
- 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
- Hydrogen Plant, Offshore Wind Power, CCUS(Carbon Capture, Utilization and Storage) and Renewable Energy Aggregation Business(PPA-based)
- Eco-business’investment & Social Contribution
- We are planning to expand investment in green business by issuing ESG bonds before 2025.
- Review the third-party standards such as Taxonomy(EU, Korea), external credit rating agencies’ criteria and etc.
* ESG bonds will be issued after reviewing changes in the market environment.
- Energy Efficiency Improvement Project with Seoul city (H-Green Saving)
- Promotion of environmental campaigns with employee engagement (Green Mileage, etc.)
- Review the third-party standards such as Taxonomy(EU, Korea), external credit rating agencies’ criteria and etc.
- Propelling of Environmental Management
- In October 2022, Hyundai E&C declared Net Zero by 2045 and published a report called 'Global Green One Pioneer: Net Zero by 2045
- Advancement of GHG management system, review of construction-site reduction programs, establishing low-carbon portfolio-linked reduction scenarios
- Sustainable Product Sales, TCFD/WEF/SASB reporting guidance, Water usage & Biodiversity information etc.
