Hankook Tire establishes corporate governance charter to enhance ESG

13 / 05 / 2022

• news
• Sustainable Development

Global leading tire company Hankook Tire announced the establishment of a corporate governance charter to enhance transparent ESG management and to lay the groundwork for the company’s sustainable business. The charter was approved at the board meeting held on May 9.

The corporate governance charter will ensure professionalism and independence of the board of directors, and promote the rights and interests of all stakeholders including shareholders, consumers, and members. It contains regulations on the rights and responsibilities of shareholders, roles and operations of the board, a structure of audit institutions, protection of rights of stakeholders, and disclosure. The content will be accessible for all shareholders on Hankook Tire’s official website as well as on Korea’s Financial Supervisory Service’s (FSS) Data Analysis, Retrieval and Transfer System (DART).

Last July, the ESG committee was launched within the board of directors to strengthen the company’s ESG management strategies and activities. Currently, five operating units are affiliated within the board including the ESG committee, audit committee, outside director nomination committee, sustainable management committee, and internal transaction committee.

In an effort to enhance the expertise and function of the board, the committee has been set to consist of three or more directors, with a majority of its members from outside the board. In the case of the ESG committee, Mira Lee, a female leader with extensive experience in corporate governance practices from global companies such as General Electric (GE) and Macquarie Group, was selected as the first chairman. The committee, including the chairperson, is consisted of seven inside and outside directors.

“Hankook Tire has met many milestones in fulfilling its responsibilities and roles as a top-tier ESG company, and is saving no efforts to reach sustainable growth in areas of economy, environment, and society,” says Sooil Lee, President and CEO of Hankook Tire & Technology. “Following the enactment of the charter, Hankook Tire plans to establish sound governance with objectivity and transparency, and strengthen its ESG leadership.”

Hankook has been improving its ESG capabilities by not only setting up the ESG committee but also by sharing its vision of sustainability and publishing its annual ESG Report since 2010. These comprehensive efforts led Hankook to be recognized as a leader in sustainable management. Hankook earned the highest score in the auto components group in the Dow Jones Sustainability Indices (DJSI) World, and was included in the DJSI World for the past six years starting from 2016.