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Green Management

Construct green management with environment, safety and health activity

Green Management

Hyosung Advanced Materials improves the Green Management competence under essential activity for business competitiveness. We makes a life more comfortable through taking a responsibility of environment executed by all the employees’ understanding of green management strategy system and compliance with policies and guidelines.

Green Management Overview

Green Management Strategy System

Based on Hyosung Group’s Green Management VISION 2030, Hyosung Advanced Materials is committed to fulfill our environmental responsibility through actualization of CSE(Creating Social Eco-system) in order to improve sustainability for all humanity. To achieve this goal, we are carrying out various activities aligned to three strategic directions - ‘Zero Emission’, ‘Zero Waste’ and ‘Zero Impact’.

Green Management Goal

As an eco-friendly corporate with responsibility,
we make human life more comfortable through realization of CSE.

Strategic Direction

Zero EmissionContribute to lowering emissions.
Emit less GHGs and pollutants from our production process.
Supply products that can reduce emission.
Zero WastePreserve resources.
Reduce usage of all resources consumed during production.
Reinforce reuse/recycling of resources and fulfill end-of-product responsibilities.
Zero ImpactMinimize negative effects.
Minimize the environmental impact caused by production.
Minimize negative impact on environment and product users.

Basis

Based on business as usual, reduce 20.5% within 2030

Business expansion through eco-friendly technology development

Establish eco-friendly infrastructure

Building a trust with stakeholders by the transparent disclosure

SHE Policy

Hyosung Advanced Materials applies the corporate SHE(Safety∙Health∙Environment) policy in all global sites so that employees understand and perceive a consensus regarding SHE. SHE policy is established and updated by the Green Management Committee in accordance to the green management policy/processes, which is then distributed and posted in all business sites.

Established on 2020.02.20

Environmental Guidelines

Hyosung Advanced Materials executes various eco-friendly businesses under its Green Management System established by securing environment specialists. Also, specialized teams for environment & safety management are in place at all global sites to reduce the environmental effects caused from our corporate activities.

  1. Based on Hyosung Advanced Materials green management strategy system we create the foundations for green management as well as lead the climate change responses.
  2. In order to minimize impact to the environment and our stakeholders, we established and manage the Green Management System through which we protect environment, prevent pollution, and proceed green projects.
  3. We monitor environmental impact factors which may arise in the course of business activities such as hazardous substances, wastes, GHGs, and actively engage in environment conservation through preemptive reduction activities.
  4. We strictly comply with legal frameworks, regulations & agreements related to SHE and minimize environmental by preemptive saving effort of energy and all resources such as water and minerals.
  5. To effectively practice green management, we provide continuous education and training as well as sharing practices with our suppliers and stakeholders, increasing overall reliability.

Established on 2018.06.01
Amended on 2020.07.15

Safety and Health Guidelines

Hyosung Advanced Materials has established a safety and health management system to provide a safe and pleasant environment to all stakeholders including employees, partners, and customers, performing various activities to promote health.

  1. By operating the safety and health management system, checking the safety and health activity process with implementation status and improving continuously, we achieve accident-free and work environment improvement.
  2. We strictly comply with all laws, regulations, and agreements related to safety and health, and do not perform work without guaranteeing the safety of workers under any circumstances.
  3. We inspect safety and health factors such as hazardous chemical handling conditions, workplace noise and vibration, and we thoroughly prepare for immediate response in the event of an emergency situation.
  4. We conduct continuous education and training to effectively operate safety and health management, and share the safety and health performance with stakeholders to increase overall reliability.

Established on 2018.06.01
Amended on 2020.07.15

Green Management System

Hyosung Advanced Materials operates the Green Management System constructed upon the environmental operation process by Green Management Committee.

Green Management Committee

  • Production
  • Facilities
  • Environment
  • Safety
  • Planning, etc.
Green Management Audit Group
A. Environmental Operation Process
1. Organization Conditions Management
2. Risk Management
3. Impact Evaluation
4. Environmental Laws and Policy Management
5. Environmental Facility Regulation and Licensing
6. Green Management Activities
  • Waste Management
  • Soil Environment Management
  • Water Environment Management
  • Emission Management
  • Chemical Substance Management
7. Green Management Compliance Evaluation Management
8. Change Management
  • B. Green Management Communication
  • C. Training
  • D. Emergency Response
1. Scenario Establishment
2. Emergency Response Training
3. Emergency Response Process Improvement

Green Management Composition and Operation

A. Environment Operation Management Process

1. Organization dedicated to Green Management and operation of expert manpower.

Hyosung Advanced Materials operates the Green Management Committee as a specialized subcommittee under the Sustainability Management Committee led by the CEO. The Green Management Committee, which includes C-level executives, conducts decision-making on the agenda, and introduces the critical issues to the Sustainability Management Committee for final decision-making. In addition, green management is systematically operated by the Safety & Environment team, an organization dedicated to green management belongs to each business site, and the expert manpower of green management.

2. Risk Management

Hyosung Advanced Materials identifies the risks inherent in various factors in the environmental field such as climate change, environmental regulations and disruption of green management activities, and prevents potential impacts of risks in advance through the risk analysis. Furthermore, we make sure that the risk response plan has been properly applied and prevent recurrence.

3. Environmental Impact Evaluation

Hyosung Advanced Materials identifies whether all activities related to our production, products, and services have or are likely to have a significant impact on the environment from the green management perspective. Then, we improve and manage the identified significant environmental impacts after evaluating the importance according to the standards.

4. Environmental Laws and Policy Management

Hyosung Advanced Materials rapidly identifies new or revised laws and policies from government agency, international convention, local government, and etc.. We comply with those laws and policies through distribution and education, apply evaluation standards on compliance and inspect Green Management System.

5. Environmental Facility Regulation and Licensing

Hyosung Advanced Materials is reviewed, inspected, and examined by the relevant government departments, public institutions, and private organizations when new emission or prevention facilities are expanded or changed in order to comply with the regulations, and we promote stable operation.

6. Waste Management

Hyosung Advanced Materials establishes an annual monthly waste treatment plan and identify expected waste generated when new facilities are installed. We are researching and applying various methods to reduce the amount of waste generated, such as process improvement and improvement of raw materials and packaging materials. In addition, we are expanding the rate of consignment of recycling companies to strengthen waste recycling, and legally reporting on waste disposal using the all-baro system of the environmental public corporation in Korea.

7. Soil Environment Management

Hyosung Advanced Materials conducts periodic self-inspections as well as legal inspections in order to prevent soil contamination of the site in advance. We comply with the Soil Environment Conservation Act, regularly conduct legal inspections in a timely manner, and store soil contamination inspection results for a long period of time. We manage soil contamination regularly by self-inspecting whether there is any leakage or causing soil contamination.

8. Water Environment Management

Hyosung Advanced Materials is effectively operating wastewater treatment facilities to minimize the impact on rivers and seas. Contaminants are removed through physical, chemical, and biological methods, and an automatic water quality measurement system is installed to utilize a water quality remote monitoring system.

9. Emission Management

Hyosung Advanced Materials reduces Air pollutant and greenhouse gases by replacing and repair the equipment. Also, we manage air pollutant and greenhouse gases emission based on internal standards reinforced more strictly and establish/implement the plans to reduce emission.

10. Chemical Substance Management

In the entire process of introducing, using, selling, and disposing of chemical substances, Hyosung Advanced Materials prevents accidents related to chemical substances by removing risk factors related to safety, environment and health in advance. We comply with the standards for handling hazardous chemicals under the Chemical Substances Control Act, and operate facilities that meet the standards. In addition, based on the Off-site Risk Assessment and Risk Management Plan System, we prepare accident scenarios for hazardous chemicals and calculate the scale of impact. We carry out thorough accident prevention and response activities, such as improving emergency response capabilities through emergency response training at least once a year.

11. Green Management Compliance Evaluation Management

Hyosung Advanced Materials has established an evaluation system based on internal standards that are reinforced beyond the level required by laws and regulations for green management operation activities, and conduct evaluation accordingly. We check environmental performance indicators every year, establish and manage environmental performance goals, and carry out green management activities according to plans. From 2019, we have expanded the scope of compliance evaluation management to include overseas business sites.

12. Change Management

Hyosung Advanced Materials applies the Change Management to changes in equipment, process design, operating conditions and raw and subsidiary materials including chemicals used for the production of all products, as well as environmental pollution emission facilities and Off-site Risk Assessment, changes in process safety management (PSM), and related regulatory changes when the relevant regulations are changed. Changes are reviewed in a timely manner without omission to verify the suitability and effectiveness,. The change results are reported immediately, and further training is conducted to prevent the occurrence of risks due to changes.

B. Green Management Communication

Hyosung Advanced Materials strives to fulfill our corporate responsibilities through continuous growth in the process of creating value for our stakeholders, including customers, executives, and shareholders. To this end, we provide accurate green management information by communicating with the major internal and external stakeholders through many channels such as the Green Management Committee, the Industrial Safety and Health Committee, and the Corporate Safety Inspection Council, and we continuously improve green management activities by collecting the expectations and demands from the stakeholders.

C. Education and Training

In order to strengthen and internalize green management capabilities in the areas such as environmental laws, systems, various relevant policies, water conservancy, handling of hazardous chemicals, industrial safety and health, and business partners, Hyosung Advanced Materials has executed environmental training to 465 employees(accumulated) in Korea in 2019, and safety and health education to a total of 3,674 employees(accumulated). We conduct education and training systematically, and check the effectiveness and performance of the training regularly to strengthen the awareness among members and stakeholders and secure SHE capabilities.

D. Emergency Response for Environmental Safety

Hyosung Advanced Materials has prepared scenarios for various types of safety accident, such as damage caused by natural disasters including earthquakes, typhoons, and heavy rains, as well as environmental accidents including leaks of waste water, waste oil, toxic substances, untreated gas and chemical substances caused by the abnormalities in production process facilities, and we establish an environmental and safety emergency response process to enable immediate response. Through regular training such as joint private-public fire drills and education on handling hazardous chemicals, we are striving to quickly respond to environmental and safety accidents to minimize human, material, and environmental damage, and to make themselves acquaint with the emergency response manual. Post-emergency recovery measures have been prepared in advance so that rapid normalization even after an accident occurred.

Green Management Audit

Hyosung Advanced Materials proactively accepts the government's environmental policies and carefully review the environment∙safety∙health regulations to improve the Green Management System. In addition, we actively participate in the audit/inspection proceeded by various stakeholders such as government, local governments, and private organizations. We also make efforts to minimize environmental impact by complying with the regulations and setting higher internal standards than legal standards. Hyosung Advanced Materials executes internal self-inspection and carries out improvement work on the findings to strengthen the Green Management System. Under the leadership of the Green Management Committee, we also regularly evaluate and manage the Green Management System in the degree of system implementation, level of risk removal, and area of improvement, resulting in sustainable implement and improvement of Green Management System.

Green Management Activities in Hyosung Advanced Materials

In line with the eco-friendly energy policy stance that has been strengthened since the Paris climate agreement entered into force, companies are practicing green management in various forms, such as expanding the use of renewable energy. In addition, environmental management capabilities are emerging as the core of corporate management, as major financial institutions use environmental issues as an important evaluation criterion. As the perception of various stakeholders such as consumers, local communities, and private organizations, companies are required to reduce environmental impact factors and minimize the use of resources and hazardous substances throughout the entire production, consumption, and disposal cycle of products. Hyosung Advanced Materials operates a Green Management System with Zero Emission, Zero Waste, and Zero Impact as strategic directions in accordance with its sustainability management philosophy, and conducts preemptive and systematic activities such as eco-friendly product development and sales, and green management operations. From the planning stage of the project, we identify environmental issues of various stakeholders to preemptively devise measures to respond to environmental risks. We also integrate the reporting system under the Green Management Committee, which has C-level decision-making authority. In detail, we establish specific tasks and plans, make investments to realize them, and monitor the performance of each green management activity. In addition, we are conducting support activities to improve the green management capabilities of our suppliers, and incentives are given to suppliers with excellent evaluation of green management in the purchasing process. Lastly, we are continuing our green management activities by transparently disclosing our green management performance to various stakeholders in a timely and accurate manner.

Advocating global initiatives

With the launch of a new climate system based on the Paris Agreement of the 21st COP21 in 2015, we are actively participating in the '2030 National Greenhouse Gas Reduction Roadmap'. Also, as a member of the UN Global Compact, we are actively participating in activities to improve sustainability and corporate citizenship.

Environmental Investment

Hyosung Advanced Materials establishes an investment plan for continuous green management activities such as waste treatment, environmental restoration, and prevention of environmental pollution, and ensures that investments can be executed reasonably through internal review procedures. After investment planning, we aggregate and manage implementation performance of additional investment that occurs especially so that green management is well practiced.

Green Management Activities – Emission Reduction and Climate Change Response

Carbon asset management system operation

We operate a Carbon Asset Management System for domestic business sites, and monitor energy consumption and GHG emissions by business site, facility, and measuring instrument. We comprehensively manage the amount of emission permits by facility, emission plan, estimated emission, and actual emission in real time. GHG reduction activities are systematically carried out through annual reduction simulations that reflect various factors such as production volume, emission plan, estimated emission volume, and reduction projects. We are effectively managing carbon assets by predicting/diagnosing excess or shortage of emission permits and actively participating in emission trading. In 2021, a project to calculate and manage emissions at overseas plant was carried out. In the next two years, HAMC will set SBT for all our major production sites and carry out activities to further reduce emssion.

Air pollutant emission management

We replaced aging air pollution prevention facilities to increase the efficiency of handling pollutants, and the fuel used in boilers was changed from B-C oil to a clean fuel, LNG. We carried out environmental assessment before the extension of production lines and installed additional air pollution prevention facilities to reduce and manage the air pollutants emissions in advance. We implemented a large-scale investment in supplementing the waste gas incineration plant (RTO) in 2019 in preparation for the strengthening emission standards of hydrogen cyanide (HCN) from 2020, and is managing it with internal standards that are stricter than the legal emission standards. Also, we have signed a voluntary agreement with Ulsan City to reduce fine dust and are implementing detailed tasks.

Renewable energy and waste energy use

In order to facilitate the use of renewable energy, we have gradually expanded photovoltaic power from domestic business sites to Jiaxing and Qingdao(in progress), and we have reduced the amount of electricity purchased and indirect greenhouse gas emissions(Scope2) by installing photovoltaic power generation facilities and self- consumption of generated power in the workplace. Not only that, we have reduced the use of fossil fuels by utilizing the waste heat and process heat at plants from other companies. In addition, economic revenue is also being generated by reselling such external waste heat to other companies through steam pipelines.

Green Products & Technology – Response to Climate Change and Emissions Reduction

We recognize the importance of responding to climate change. Therefore, we aim to directly reduce emissions from production activities and respond to the impact of climate change that may occur in the places where our products are used. To make this happen, we are constantly developing and producing products that can reduce greenhouse gas emissions in all business areas.

TANSOMEⓇ – Carbon fiber, the key to automotive fuel efficiency improvement

Having only one-fourth the density but 10 times the strength of steel, TANSOMEⓇ is the first high-performance carbon fiber to be developed in South Korea through independent technology of Hyosung Advanced Materials. Based on its ultra-light and high-modulus/strength properties, TANSOMEⓇ is used as a key material for improving fuel efficiency of automobiles through vehicle weight reduction, ultimately contributing to carbon emissions reduction. In addition, with its excellence in stability and functionality, TANSOMEⓇ is used in various products, especially in high-pressure vessels for CNG(compressed natural gas) and hydrogen in eco-friendly energy industries.

TANSOME Picture

High-strength tire cord

Tire cords are key reinforcements used to maintain a tire’s shape and reinforce tire performance. They are used as reinforcements of tires through pressured rolling processes after being coated by rubber. High-strength tire cords are 10~20% stronger than regular tire cords, and reducing the width of the cord can reduced the amount of rubber used for the pressured rolling process. This reduction of rubber usage enables weight reduction of tires which reduce the rolling resistance contributing to automotive fuel efficiency and emissions reduction.

Steel Cord from Steel-scrap

While producing a wire rod, which is known as a main component of the tire reinforcement, the steel scrap is generated as by-products, and greenhouse gases are released during the production process. Hyosung Advanced Materials produces eco-friendly products that can reduce the use of raw materials and reduce greenhouse gas emissions at the same time using steel scrap generated as by-products. A wire rod, which is made from scrap-steel, has a high strength due to its high impurities. However, it is limited in applying to thin products. Thus, it has been commercialized by applying to some of the current product specifications. We will continue to develop screening and processing technologies to further extend product applications.

Steel Cord Picture

Green Management Activities – Resource Preservation

Raw material usage reduction

Internally, by optimizing the inventory and usage management of raw and subsidiary materials, we were able to minimize the amount of new purchases, thereby reducing costs and resource use by approximately KRW 145 million after the spin-off. We conducted technology research and process development to reduce the waste rate of the product, and reduced new emulsion input by preventing the scattering of the emulsion consumed during production. In addition, we are making efforts to reduce the use of raw and subsidiary materials in various areas from the production process to the shipping process, such as reducing the purchase volume by replacing materials required for product storage with high strength and increasing the number of reuses.

Water usage reduction

Hyosung Advanced Materials works closely with the teams in charge of production process to minimize unnecessary water consumption. In order to expand the use of recycled water, such as washing water, cleaning water, and firefighting water, we have established and operated water reuse facilities and processes. The water used in the process is recovered and stored in an emergency reservoir, or reused for cooling water to reduce water consumption and increase the rate of water recycling. In the future, we plan to expand rainwater use facilities and heavy water facilities in order to establish a sustainable water reuse system.

Recycle and reuse

In collaboration with customers, we have reduced the amount of waste packaging materials and the amount of new packaging materials by collecting and reusing after-use packaging materials for product shipment. We are making various efforts such as using the reprocessed waste as recycled PET chips in production or as fuel sources to reduce energy use. In addition, we are gradually increasing the rate of recycling through activities such as finding and consignment treatment of wastewater sludge that was disposed of in landfill.

Green Products & Technology – Resource Preservation

Hyosung Advanced Materials has a number of products using various polyesters, and is striving to minimize the environmental impact that may occur in the production and use of products. Process waste that can be easily discarded in the life cycle of products and products after use are recycled as polyester chips and used as raw materials.

Recycled polyester yarn

Global fabric consuming manufacturers (i.e. apparel and shoes) are actively promoting the use of recycled polyester yarn, an eco-friendly product, as environmental pollution caused by excessive use of plastic products has emerged as a social problem. In line with the global efforts to reduce environmental pollution and respond to environmental demands in the apparel markets, Hyosung Advanced Materials developed high-strength recycled polyester yarn using raw materials extracted from waste plastics and obtained Global Recycle Standard (GRS) certification from an international authority.

Recycled floormats using recycled polyester chips

Global automobile manufacturers are proactively developing and introducing recycled automotive parts from waste plastics. Hyosung Advanced Materials has initiated R&D of automotive carpet and option mats using recycled BCF (Bulk Continuous Filament) based on the needs from development teams of customers. We are working on developing the product which meets the customers’ requirements by utilizing not only polyester recycled chips and waste nylon from waste fish nets and waste yarn, but also process wastes from both our production lines(spinning) and our supplier companies for recycled chips.

Green Management Activities – Negative Impact Minimization

Chemical substances management

In the entire process of purchasing, using, selling and disposing of chemical substances, we prevent accidents related to chemical substances by removing environmental, safety, and health hazards related to chemical substances in advance. Hyosung Advanced Materials is required to provide MSDS (Material Safety Data Sheet) at the purchase of chemicals in all domestic factories and provide training for handling and managing hazardous chemicals and raising awareness. In addition to the regular legal inspection, we also identify and report on the risks that may arise during a series of purchase, storage, handling, and use of hazardous chemicals, through regular inspection activities of hazardous chemicals storage facilities, Off-site Risk Assessment and preparation of a risk management plan, and proactively inspect problems and take preemptive measures. Our business sites and overseas affiliates regularly conduct training about hazardous chemicals at least once a year including training for the staffs handling hazardous chemicals and chemical safety training. Ulsan plant appoints managers of hazardous chemicals and provides them with external training. In order to ensure workplace safety and protect local residents and ecosystem, Jeonju plant delivers two-hour chemical substance safety training every year not only to its own employees but also to employees from supplier and contractor companies.

Waste reduction

In addition to minimizing the process waste rate, we are reducing waste by reducing the amount of final waste through recycling of resources through waste recycling. Typically, waste synthetic fibers and waste organic solvents generated in large quantities in the factory were consigned to incineration in the past (high temperature), but now waste synthetic fibers are used as auxiliary fuel after reprocessing. Waste organic solvents are consigned to reusable companies, mixed with other substances, and used as fuel with reduced environmental impact. In addition, we are consigned to recycling wastewater sludge by finding recycling companies. Furthermore, we are researching activities that lead to waste recycling and reduction of the use of raw materials by converting them into recycled PET chips.

Environment cleanup activities

Periodically, employees perform environmental cleaning activities in the surrounding environment, such as parks and green areas around the factory.

Green Products & Technology – Negative Impact Minimization

Hyosung Advanced Materials is aware of the environmental impact that occurs in all production activities from the procurement of raw materials to the completion of products, and is actively working to minimize this. We continue to discover various factors that can reduce the environmental impact, expand application of existing improvement activities, and activate new technologies.

‘Bio-PET’ made from plant-extracted materials

Due to the rise of New Mobility, in which driving time and distance are expected to increase considerably due to enhanced driving convenience through self-driving and car-sharing, car parts manufacturers are striving to develop new products to decrease their environmental impacts. On the top of lighter weight or improved fuel economy, which have long been pursued already as product development requirements, customer needs in “environmentally friendly” and “recycled” materials are rapidly growing especially in the European market. In order to contribute to solving the resource-shortage and pollution issue of the traditional polyester made from oil, Hyosung Advanced Materials is suppling automotive carpets made of Bio-PET, which is produced from Bio EG and Bio TPA extracted from plant-based raw materials. We are also continuing our R&D to expand the use of Bio-PET in other polyester applications such as sewing thread.

Waste sulfur treatment for low environmental impact

The production process of aramid fiber, a high-strength and incombustible fiber, generates waste sulfuric acid. In the past, waste sulfuric acid was treated by external sewage treatment company or low-concentration waste sulfuric acid was treated through ours own wastewater treatment system. From June 2018, we applied a special eco-friendly technology for high-concentration waste sulfuric acid. From April 2019, we have expanded to low-concentration waste sulfuric acid, achieving two outcomes: reducing the treatment cost of all waste surfuric acid (low&high concentration) and preventing water pollution.

Table of the cost of Waste sulfur treatment
2018 2019 2020
Cost of Treatment 1,205 Mil. KRW 489 Mil. KRW 0 Mil. KRW

Lyocell tirecord – Eco-product made from wood-extracted materials

Conventional rayon tirecords, which are mainly used as tire reinforcing materials for high-speed driving tires, generate hazardous chemical substances during the manufacturing process due to the use of sulfuric acid. ‘Lyocell tirecords’, developed by Hyosung Advanced Materials as an alternative to rayon tirecords, however, does not release toxic substances such as carbon disulfide or hydrogen sulfide, since it is made using cellulose extracted from wood. Through our lyocell tirecords, we can prevent air and water pollution caused by release and treatment of hazardous chemicals.

Lyocell tirecord Picture

‘Eco-friendly Dip Recipe’ – Improving fatigue resistance of tires

At the final manufacturing process of tire cords, tire cords are dipped in a chemical-compound fluid, chemical dip, and then dried by heat. This process is essential to achieve best performance of tires by increasing adhesion between tire cords and rubber, and to increase driving distance by enhanced resistance. Hyosung Advanced Materials developed eco-friendly dip recipe after ceaseless research to achieve environmental manufacturing process. The eco-friendly dip is now close to commercialization stage, and with this, we expect to reduce hazardous substances in the process without using rezosynol and formalin, and contribute to generating less waste tires by extending product lifetime with higher fatigue resistance.

Green Technology Development and Green Activities Goal

Hyosung Advanced Materials conducts various activities such as R&D, process improvement on manufacturing and administration to realize green technology development and green activities aligned with our strategic direction.

Hyosung Advanced Materials’ green technology development goal

  • Developing and applying submaterial to replace regulated materials (Zero Impact)
  • Applying environmental impact reduction plan in manufacturing process (Zero Impact)
  • Developing high-strength carbon fiber essential for hydrogen energy system (Zero Emission)
  • Developing special carbon fiber used variety in a high-tech industry (Zero Emission, Zero Waste)

Hyosung Advanced Materials’ green activities goal

  • Increasing waste recycling rate and consignment disposal proportion of recycling company (Zero Waste, Zero Impact)
  • Expanding usage of renewable energy (Zero Emission)
  • Strengthening environmental impact minimization activities by improving global-integrated Green Management System (Zero Impact)
  • Expanding support for green management capabilities of business partners(Zero Emission, Zero Impact)

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