On June 10, 1953, even before the Korean War was concluded, "Hyundai Steel" began as "Daehan Heavy Industries Corporation." Hyundai Steel, which raised up the steel industry for the first time in Korea with the will to rebuild the nation over the ruins of war, is now counted among the world's top 10 steel companies. Let us look at the sustainability report of Hyundai Steel, driven by continuous innovation and a spirit of challenge.
[A view of the brightly lit steelworks exterior © Hyundai Steel]
WE Do in Sustainable H-ways
Hyundai Steel says that for a company's success, social responsibility for the "environment" is important. Under the slogan "We Do in Sustainable H-ways," meaning acting in a sustainable way, it set an ESG strategy framework of three practice directions: "eco-friendly management (Heritage)," "shared-growth management (Humanity)," and "right management (Harmony)."
It also set six ESG promotion fields, establishing and practicing mid-to-long-term goals by field. Through this, it carries out activities that minimize environmental impact and also unfolds activities to protect natural capital, such as biodiversity conservation. Here, we will look at a few ESG areas that Hyundai Steel highlighted as major.
[Byproducts from the metal-melting process are also recycled © Hyundai Steel]
Hyundai Steel's Environmental Management
To improve the environment and reduce greenhouse gases, Hyundai Steel is actively working on environmental improvement, investing 680 billion won over five years starting in 2021. It also strives to develop recycling technology utilizing the byproducts that come out of the process of making molten iron. Hyundai Steel strives to create a clean environment with a thorough pollutant-management system and hazardous-chemical monitoring. Based on this direction, it is responding to the climate crisis by practicing the bold goal of carbon neutrality by 2050 and a phased reduction plan.
It has also rolled up its sleeves to raise energy efficiency. With the goal of reducing energy use by 5% by 2027, it is working on company-wide energy saving. Executives directly preside over energy-saving meetings and oversee energy diagnostics by plant. It operates measures to prevent energy waste, such as developing a system that uses artificial intelligence to predict the temperature of coke ovens. In particular, it plans to reduce greenhouse-gas emissions by building "Coke Dry Quenching" equipment that recycles thermal energy. It is also practicing energy saving by introducing technology that raises the combustion efficiency of heating furnaces.
[Ecosystem-protection program © Hyundai Steel]
Implementing Ecosystem-Protection Programs
Hyundai Steel carried out endangered-species conservation projects near its sites such as Dangjin and Suncheon, together with partner organizations such as World Vision, the Korea Ecotourism Association, and the Citizens' Institute for Environmental Studies. In particular, by installing an "ecological ladder" for "improving the habitat environment of the gold-spotted pond frog" and carrying out environmental-cleanup activities, it provided an occasion for local residents and employees to pool their strength for environmental restoration together. It also ran the "I'm a Citizen Scientist Too" program, which provides ecosystem education and field experience for young people in the Dangjin area. This program, for the purpose of biodiversity education, has participants observe and record endangered species while learning the importance of biodiversity.
It also conducted an "ecotoxicity assessment" to minimize the impact of wastewater discharge on marine ecosystems. As part of its efforts to minimize Hyundai Steel's impact on the environment, this also led to an eco-park project creating green space near its sites. Through such programs, Hyundai Steel continues to cooperate with local communities and join in sustainable development and the conservation of the natural environment.
[Coffee-ground recycling and the "Anyone Bench" project © Hyundai Steel]
Activities for a Society That Lives Together
Hyundai Steel is also carrying out various activities for social responsibility in the areas of the environment, safety and protection, and future generations. In the environmental field, it carried out a "coffee-ground (coffee waste) re-resourcing project" and an urban-forest creation project, "Making a Green Dong-gu." In particular, through coffee-ground re-resourcing, it also contributed to reducing local-community waste and creating jobs for vulnerable groups. In the safety-and-protection area, it expanded facilities for people with disabilities through the "Anyone Bench" project. The Anyone Bench, a convenience facility that both people with and without disabilities can use, drew attention with its user-friendly bench model design along with improving awareness of disability. On the sustainability front, Hyundai Steel continues efforts to enhance the welfare of the local community and stakeholders, providing investment of 17.1 billion won in social contribution and 88.5 billion won in shared-growth support.
The "Korea Institute of Corporate Governance and Sustainability (KCGS)" evaluated Hyundai Steel with a "comprehensive A grade in ESG management evaluation." In addition, Hyundai Steel, also selected as a "Sustainability Champion" by the "World Steel Association (WSA)," established itself as an ESG-leading company in the global steel industry. We look forward to Hyundai Steel creating a future of sustainable growth through continuous strengthening of ESG management befitting its evaluations so far.
by Editor L