In an industry-first, Hankook Tire & Technology (Hankook Tire) has received approval from the Science Based Targets initiative (SBTi) for its ambitious 2030 greenhouse gas (GHG) reduction goals and its ultimate target of net-zero emissions by 2050. This feat propels the tyre manufacturing giant closer to the completion of its '2050 Carbon Neutrality Roadmap.'
The SBTi is an internationally recognised initiative aimed at assisting companies in establishing science-based targets to reduce GHG emissions. The initiative's ultimate aim is to limit the global average temperature increase to 1.5℃, aligning with the objectives of the Paris Climate Agreement.
Hankook Tire's approved goals include a 46.2% reduction in direct and indirect GHG emissions from its production phase (Scope 1 and 2) by 2030, compared to 2019 levels. Additionally, the company plans to cut absolute GHG emissions within its value chain (Scope 3) by 27.5% by 2030, also benchmarked against 2019.
This SBTi approval is a major step for Hankook Tire, marking the first instance a Korean tire company has publicly committed to a net-zero target by 2050 in compliance with the SBTi Net Zero standard. Hankook Tire joins 15 other Korean businesses and nearly 5,700 global organisations that are participating in the SBTi.
Hankook Tire has been a proponent of sustainable business practices and environmental, social, and governance (ESG) management since 2010, culminating in the establishment of an ESG Committee in 2021 and the development of its '2050 Carbon Neutrality Roadmap' in 2022.
In 2021, the company implemented several initiatives aimed at reducing GHG and energy usage, including the introduction of high-efficiency facilities, adoption of low-carbon energy sources, application of fuel conversion methods, and continued enhancement of energy optimisation. These measures contributed to a significant reduction in GHG Intensity by approximately 2.74% compared to 2021.
Hankook Tire's sustainability measures extend to its manufacturing process, where it employs four R's--Recycle, Renewable, Reuse, and Reduce--aligned with its 'E.Circle' circular economy system and sustainable natural rubber policy. The company is also expanding its use of sustainable raw materials in tyre production, going from three to seventeen material types.
The company's commitment to sustainability led to its acquisition of the International Sustainability and Carbon Certification (ISCC) PLUS in 2021, another first for the tyre industry.
Earlier this year, Hankook Tire teamed up with Kumho Petrochemical to develop eco-friendly tyres using high-functioning synthetic rubber, pushing towards its ESG goal of a 55% sustainable raw material ratio by 2025.
Hankook Tire's relentless pursuit of carbon neutrality has not gone unnoticed. The company has received the highest ratings from numerous global ESG evaluation agencies. It was included in the Dow Jones Sustainability Indices World (DJSI World), the globally recognized sustainability management evaluation index, for the seventh consecutive year in November last year. In February, Hankook Tire received the highest "Gold Class" designation in S&P Global's Annual Sustainability Report's Industry Awards 2022.
