Hankook Tire receives Korean tire industry’s first SBTi approval for its GHG emission reduction target
- Global initiative SBTi validation of Hankook Tire’s goals for GHG emissions reduction is a first-time achievement for a Korean tire company
- By 2030, Hankook Tire aims to reduce the total direct and indirect GHG emissions generated in its production stage by 46.2% compared to 2019
- “E.Circle” and having obtained ISCC PLUS certification in a tire industry first, Hankook Tire will accelerate the establishment of eco-friendly value chain
Seoul, Korea, August 2, 2023 – Global leading tire company Hankook Tire & Technology (Hankook Tire) has received approval from the Science Based Targets initiative (SBTi) for its near-term 2030 greenhouse gas (GHG) reduction goals and net-zero target by 2050, helping the company gain momentum in the realization of its ‘2050 Carbon Neutrality Roadmap.’
SBTi is a global initiative that supports companies in setting targets that are in line with the latest climate science, including the goals of the Paris Climate Agreement – limiting global average temperature increase to 1.5℃.
In aligning with the SBTi approval, Hankook Tire aims, by 2030, to reduce the total amount of direct and indirect GHG emissions (Scope 1 and 2) generated in its production stage by 46.2% compared to 2019. Also, by 2030, the company aims to reduce absolute GHG emissions generated in its value chain(Scope3) by 27.5% compared to 2019.
Hankook Tire’s approval by the SBTi for these targets is a significant move and is the first time in the Korean tire industry that a company has set itself the challenge of reaching net zero by 2050 based on the SBTi Net Zero standard. Roughly 5,700 companies around the world are participating in SBTi, with 15 Korean companies including Hankook Tire receiving approval.
Hankook Tire recognizes that sustainability is a key value in business activities and has been engaged in ESG management since 2010, establishing an ESG Committee within its Board of Directors in 2021 and drawing up its “2050 Carbon Neutrality Roadmap” in 2022.
Last year, the company carried out numerous activities to reduce GHG and energy usage based on the activities of the Climate Change Committee under the ESG Committee, including the implementation of high-efficiency facilities, using low-carbon energy, applying fuel conversion methods and further developing energy optimization. This has since resulted in reducing GHG Intensity (tCO2/ton) by approximately 2.74% compared to 2021.
Based on the company’s sustainable natural rubber policy and its circular economy system the ‘E.Circle’, Hankook Tire applies four methods - Recycle, Renewable, Reuse, and Reduce – throughout the full manufacturing process, aiming to develop eco-friendly and sustainable products.
As a result, in 2021, Hankook Tire obtained the International Sustainability and Carbon Certification (ISCC) PLUS, a global, eco-friendly international certification, which marks a first for the tire industry. The company is also striving to increase its use of sustainable raw materials in the manufacture of its own eco-friendly tires, expanding from three to seventeen material types.
In May of this year, Hankook Tire cooperated with Kumho Petrochemical on the development of eco-friendly tires using high-functioning synthetic rubber. This accelerates one of the company’s ESG goals of achieving a sustainable raw material ratio of 55% by 2025.
Meanwhile, Hankook Tire has been recognized for its efforts to achieve carbon neutrality by obtaining the highest ratings from multiple global ESG evaluation agencies.
Last November, Hankook Tire was included in Dow Jones Sustainability Indices World (DJSI World), the world’s top sustainability management evaluation index, for the seventh consecutive year. In February, it solidified its position as a leading ESG management company by being designated “Gold Class” – the highest class possible – by S&P Global in its Annual Sustainability Report’s Industry Awards 2022.