Hyundai E&C has been incorporated into DJSI World for 13 consecutive years in the 2022 Dow Jones Sustainable Management Index (DJSI)* evaluation and is taking the helm as a leader in global ESG management.
*DJSI, a sustainable investment index jointly developed by Dow Jones, the world's largest financial information provider, and RobecoSAM, a Swiss international investment company, annually publishes the results based not only on financial but also environmental and social sustainability performance of businesses. The DJSI World Index is granted to the top 10% of the companies under evaluation.
The evaluation was conducted on 2,500 global companies, and Hyundai E&C is the only company in the construction sector that has been incorporated into DJSI World for 13 consecutive years.
Hyundai E&C has been selected as the global "Industry Leader" nine times for the first time in the construction/engineering sector, and this year, was recognized for its year-on-year achievement in implementing advanced environmental management and establishing environmental policies to promote biodiversity and prevent deforestation.
In addition, Hyundai E&C received an integrated A rating in the ESG evaluation 2022 released by the Korea Institute of Corporate Governance and Sustainability (KCGS), achieving an integrated A rating for the first time in Korea for five consecutive years (2018~2022).
It is worth noting that Hyundai E&C maintained an integrated A rating even though the ratio of B+ ratings or higher decreased by 10% compared to the previous year, as the ESG evaluation model of KCGS reflected the revised code of best practice aligned with global standards.
In addition, Hyundai E&C received a BBB rating in the 2022 Morgan Stanley Capital International (MSCI)* ESG evaluation, one notch higher from the previous year. Hyundai E&C is receiving increasingly better scores, reflecting the improvements made each year. (B rating in 2020, BB rating in 2021, BBB rating in 2022)
* Morgan Stanley Capital International (MSCI) ESG evaluation is one of the global ESG evaluation indicators and grants ESG ratings to listed companies based on the company's environment, social, economic and governance data.
In addition, Hyundai E&C has steadily joined the “Leadership Group” in the climate change segment of the Carbon Disclosure Project (CDP)*, maintaining its Hall of Fame status for four consecutive years (2018~2021).
* CDP is a global non-profit organization that requires, collects, analyzes, and evaluates long-term and short-term management strategies for CO₂ or greenhouse gas emissions information and issues of major globally listed companies (Top 500 FT500 global index companies).
Amid growing discussions on biodiversity along with climate change, Hyundai E&C ranked first in Korea in the "Nature” segment where the World Benchmarking Alliance (WBA)* evaluates the impact of companies on biodiversity and ecosystems. It was also selected as the SDG2000* company, joining the list of the most influential companies in achieving sustainable development.
*WBA is a global non-profit organization that develops and evaluates international standards for sustainability and environmental and human rights management based on international human rights norms such as the UN Guiding Principles on Business and Human Rights (UNGPs) and OECD Guidelines for Multinational Enterprises.
*SDG2000 is a list of the most influential companies in achieving sustainable development selected by WBA.
Furthermore, Hyundai E&C won the Korea Sustainability Index (KSI) competition 2022 organized by the Korea Standards Association (KSA), ranking No. 1 in the construction sector for two consecutive years.
The reason why Hyundai E&C received excellent scorecard from numerous ESG evaluation agencies is due to its continued efforts to make improvements in ESG items. Hyundai E&C has also joined the UN Global Compact (UNGC), an international agreement designed to encourage advocacy and implementation of corporate social responsibility.
* It is the world's largest voluntary corporate citizenship initiative that encourages companies to internalize the ten principles of human rights, labor, the environment, and anti-corruption, which are the core values of the UN Global Compact, into their operational and management strategies and suggests practical solutions to that end.
Moreover, Hyundai E&C declared support for and joined the Task Force on Climate-related Financial Disclosure (TCFD)* supporters this year, and declared to become Net Zero by 2045 based on SBTi* for the first time among listed construction companies in Korea, followed by its declaration to decarbonize last year.
*TCFD is a global consultative body established by the Financial Stability Board (FSB) in 2015 for the disclosure of climate change-related information at the request of the G20, and more than 2,000 institutions from 78 countries have officially advocated TCFD and its recommendations.
*SBTi (Science Based Target Initiative) is a global body that provides guidelines and methodologies for setting science-based greenhouse gas emission reduction targets to respond to the climate crisis and achieve the Paris Agreement goals.
Hyundai E&C operates a sustainable management consultative body every quarter and strives to strengthen its sustainable management capabilities by identifying areas of improvements in each division based on ESG trends, risks, and initiatives at home and abroad. In addition, the company strives to identify and analyze risks related to ESG issues, report them to the Transparent Management Committee (Board), and internalize sustainable management by reflecting them in KPIs by division across the entire company.
A spokesperson from Hyundai E&C said, “We will continue to communicate with various stakeholders, focusing on the expansion of green projects such as renewable and hydrogen energy projects and win-win cooperation with the local community,” adding, “We will continue to fulfill our responsibilities as a leader in sustainable management and strive for sustainable growth and development in the long term.”