How ESG Works in Hyundai Glovis



How ESG Works
in Hyundai Glovis

In February this year, a company-wide organization, the ESG Innovation Group,
was launched. It is reported through various media that companies are quickly joining the walk toward ESG,
but what does it mean to our employees?
We asked Senior Manager Hong Sang-min who is drawing up the outlines in the ESG Innovation Group,
and committed to vigorous activities.
Interview. Senior Manager Hong Sang-min of Business Cooperation/CSR Team

* Photos in this column were taken before the Level 4 Social Distancing.

Would you please tell the staff about the ESG Innovation Group?


ESG Innovation Group was launched as a company-wide organization on February 1 this year, to promote a radical transformation, from corresponding to ESG evaluation, to managing ESG. Although it is a TFT, three administrative managers are communicating to discover agenda to improve ESG issues, and to promote projects related to ESG such as outside requests and group assignments. Since there are many ESG issues related to the entire company, we also have set up an ESG strategic commission composed of heads of related teams, financial teams, and strategic teams, as well as an ESG management commission composed of headquarters directors, business managers, and regional heads that support the decisions of the management.

How important is ESG and how much is it needed?


ESG was already being discussed as a standard for investment in the early 2000s, among the financial institutions and investors of Europe, and when UN raised the ESG issue as the standard for sustainable growth, it expanded to a worldwide discussion. In the early stages, it was merely recognized as a factor influencing the image of the company. However, all of a company’s stakeholders in the management (government, investors, and consumers) consider it to be the standard for selecting and evaluating a company. As laws and regulations relating to ESG are being made in various ways, ESG has become essential in management. Owing to this tendency, the ESG-related industry is exploding, starting from 2021.

How is Hyundai Glovis doing with implementing ESG, compared to other companies’ activities?


From 2015, we have been publishing the Sustainability Report and participating in DJSI evaluation of ESG management, showing interest in and taking care from a fairly early stage. Accordingly, we are evaluated to have the best level in ESG among logistics companies from Korea or overseas. However, compared to companies in industries with high ESG management such as financial or manufacturing, we still have our shortcomings in manpower, business, and investment. Therefore, we need improved awareness among the staff and prospective efforts through business investment.

Is there a company that is the role model to promote ESG strategy?


I would say Unilever, globally recognized as the textbook case of ESG with their excellent ESG strategies and initiatives. Since 2011, Unilever has made its three factors and 73 targets transparent and reported its performance every year. It communicates with its consumers, with its survival strategy of ‘Unilever Sustainable Living Plan.’ It has become a role model for every company by making the performance management transparent and ESG information public. We are also making it our model for establishing policies and mid- to long-term strategies. We are also observing LG Electronics and Shinhan Financial Group carefully, as these two domestic companies are positively evaluated internationally.

Is there a value or an activity for the future that you consider most meaningful?


The field that I am most interested in would be E (environment), since it is currently the field that receives most attention. As the government has set the goal of carbon neutrality by 2050, all the companies are going through industrial changes with carbon neutrality (Net-zero emissions) as their mission. Therefore, we are also focusing on establishing an environment-friendly transportation system. We have joined the K-EV 100 to replace vehicles with electric or hydrogen cars, and plans are being made in the relevant departments to make freight vehicles and ships more environment-friendly.

ESG is the direction of the company, but I see that the staff needs to become more familiar with it. How do you plan to make this happen?


News and seminars on ESG are pouring out in this era, so I believe that the employees should know of its growing importance. But it is not easy to access more organized information or information about our company. I'd like to resolve this. I feel sorry that I cannot be of more help, as we do not yet have enough resources. However, we will try to familiarize our employees and internalize the concept of ESG through sharing information, regularizing in-company training, and establishing business goals. I will make sure that they are provided with such help in the near future.

2021.08.01

In February this year, a company-wide organization, the ESG Innovation Group,
was launched. It is reported through various media that companies are quickly joining the walk toward ESG,
but what does it mean to our employees?
We asked Senior Manager Hong Sang-min who is drawing up the outlines in the ESG Innovation Group,
and committed to vigorous activities.
Interview. Senior Manager Hong Sang-min of Business Cooperation/CSR Team

* Photos in this column were taken before the Level 4 Social Distancing.

Would you please tell the staff about the ESG Innovation Group?

ESG Innovation Group was launched as a company-wide organization on February 1 this year, to promote a radical transformation, from corresponding to ESG evaluation, to managing ESG. Although it is a TFT, three administrative managers are communicating to discover agenda to improve ESG issues, and to promote projects related to ESG such as outside requests and group assignments. Since there are many ESG issues related to the entire company, we also have set up an ESG strategic commission composed of heads of related teams, financial teams, and strategic teams, as well as an ESG management commission composed of headquarters directors, business managers, and regional heads that support the decisions of the management.
How important is ESG and how much is it needed?

ESG was already being discussed as a standard for investment in the early 2000s, among the financial institutions and investors of Europe, and when UN raised the ESG issue as the standard for sustainable growth, it expanded to a worldwide discussion. In the early stages, it was merely recognized as a factor influencing the image of the company. However, all of a company’s stakeholders in the management (government, investors, and consumers) consider it to be the standard for selecting and evaluating a company. As laws and regulations relating to ESG are being made in various ways, ESG has become essential in management. Owing to this tendency, the ESG-related industry is exploding, starting from 2021.

How is Hyundai Glovis doing with implementing ESG, compared to other companies’ activities?

From 2015, we have been publishing the Sustainability Report and participating in DJSI evaluation of ESG management, showing interest in and taking care from a fairly early stage. Accordingly, we are evaluated to have the best level in ESG among logistics companies from Korea or overseas. However, compared to companies in industries with high ESG management such as financial or manufacturing, we still have our shortcomings in manpower, business, and investment. Therefore, we need improved awareness among the staff and prospective efforts through business investment.
Is there a company that is the role model to promote ESG strategy?

I would say Unilever, globally recognized as the textbook case of ESG with their excellent ESG strategies and initiatives. Since 2011, Unilever has made its three factors and 73 targets transparent and reported its performance every year. It communicates with its consumers, with its survival strategy of ‘Unilever Sustainable Living Plan.’ It has become a role model for every company by making the performance management transparent and ESG information public. We are also making it our model for establishing policies and mid- to long-term strategies. We are also observing LG Electronics and Shinhan Financial Group carefully, as these two domestic companies are positively evaluated internationally.

Is there a value or an activity for the future that you consider most meaningful?

The field that I am most interested in would be E (environment), since it is currently the field that receives most attention. As the government has set the goal of carbon neutrality by 2050, all the companies are going through industrial changes with carbon neutrality (Net-zero emissions) as their mission. Therefore, we are also focusing on establishing an environment-friendly transportation system. We have joined the K-EV 100 to replace vehicles with electric or hydrogen cars, and plans are being made in the relevant departments to make freight vehicles and ships more environment-friendly.
ESG is the direction of the company, but I see that the staff needs to become more familiar with it. How do you plan to make this happen?

News and seminars on ESG are pouring out in this era, so I believe that the employees should know of its growing importance. But it is not easy to access more organized information or information about our company. I’d like to resolve this. I feel sorry that I cannot be of more help, as we do not yet have enough resources. However, we will try to familiarize our employees and internalize the concept of ESG through sharing information, regularizing in-company training, and establishing business goals. I will make sure that they are provided with such help in the near future.