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Hyosung is set to provide 10 billion won in funds for cooperation between large-sized businesses and their smaller-sized counterparts and between businesses and rural areas and to help businesses build their ESG management capability.
On March 17, Hyosung signed an agreement with the Korea Foundation for Cooperation between Large and Small Businesses and Rural Areas for the provision of said funds. Hyosung President KIM Kyoo-Young and Secretary General KIM Yeonghwan of said foundation attended the ceremony, which was held at Hyosung’s building in Mapo-gu, Seoul.
Said funds are private funds that businesses provide to said foundation to promote win-win cooperation between large-sized businesses and their smaller-sized counterparts and between businesses and rural areas. Five affiliates of the Hyosung Group (i.e., Hyosung Corporation, Hyosung TNC, Hyosung Heavy Industries, Hyosung Advanced Materials, and Hyosung Chemical) will provide a total of 10 billion won (5.5 billion won + 4.5 billion won) to said funds.
Hyosung will use the fund for win-win cooperation between large-sized businesses and their smaller counterparts to help with their supply-chain ESG management including reduction of energy use by subcontractors and their acquisition of eco-friendly certifications such as carbon labeling. Hyosung will also provide safety goods like body cams and airbag vests to enhance their safety and goods-quality capability and remote inspection facilities, etc., while providing flagship stores to SMEs and startups explored through open innovation, etc. and support their development of eco-friendly materials through the recycling of waste PET bottles and fishing net.
The fund for win-win cooperation between businesses and rural areas will be spent on providing goods using eco-friendly technology such as produce driers made with carbon fiber, which is a highly efficient heating element, and clothing that uses Regen—Hyosung’s brand for recycled fiber yarns—to encourage the expansion of the base for eco-friendly technology. Hyosung will also engage in activities for the management of seagrass habitats for the conservation of marine biodiversity while striving for the invigoration of the local economy and communication between stakeholders through the purchase of local products and establishment of educational facilities.
Hyosung Chairman CHO Hyun-joon has stressed the importance of ESG management in the Group’s management guidelines. “We should establish an eco-friendly management system and strengthen mutual growth with subcontractors and social contribution activities,” he said.
Meanwhile, Hyosung has helped subcontractors explore overseas markets, encouraging them to join the Group in attending world-renowned exhibitions such as “Preview in Seoul”, “Intertextile Shanghai”, outdoor exhibitions held in Germany, etc. In addition, Hyosung is making multi-faceted efforts for supply-chain ESG management, including provision of ESG management education/consulting designed to enhance subcontractors’ competitiveness.
※Supply-chain ESG: Management of subcontractors’ ESG management factors in general such as environment, human rights, etc. from the perspective of risk management for businesses’ sustainable management