Hanwha Group works to fully implement ESG management

By Kim Hyun-bin

Hanwha Group Chairman Kim Seung-youn has vowed to expand the company's environmental, social and corporate governance (ESG) management style to better enhance the conglomerate's future competitiveness in the global market.

"For some time, ESG management has been a key principle in order to become a global corporation," Chairman Kim said during his New Year speech, Monday. "As the leader of the global renewable energy sector, we will strongly counter climate change, as well as swiftly transitioning into an environmental management firm and leading light in the zero-carbon era."

Hanwha Group Chairman Kim Seung-youn

Industry watchers believe the chairman's efforts to strive for ESG management are to better provide a foundation to hand the conglomerate over to his eldest son Kim Dong-kwan, who is the current president of Hanwha Solutions, a cash-cow solar power division of the group.

Hanwha Solutions has become one of the main pillars of the conglomerate, further paving the way for Kim Dong-kwan to solidify his grip over the group along with the chemical and defense businesses. The rapid growth of Hanwha's solar power business has been backed by global awareness and policies aimed to strengthen its eco-friendly aspects which are expected to fuel substantial growth of the solar industry in the near future.

In addition, Hanwha Group's financial affiliates have announced a halt to investments in local and overseas coal-fired power plants.

Six financial companies under Hanwha Group including Hanwha Life and Hanwha General Insurance vowed to halt coal-related investments, Tuesday.

Under the new measures, the related companies will not acquire bonds issued by special-purpose companies (SPC) or regular bonds related to power plant construction. However, the companies will expand their investments in the eco-friendly and renewable energy sectors.

"Hanwha Group has been seeking to increase social economic value through corporate sustainability management and we see it as the first leap for the conglomerate's financial affiliates to take part in the initiatives," a Hanwha Group official said. "We aim to strengthen ESG management to provide solutions for social and environmental issues."

The financial affiliates of Hanwha Group have been strengthening ESG management in diverse fields. Hanwha Life established a green office to provide a low carbon, eco-friendly and safe establishment which also increases energy efficiency.

Since 2010, Hanwha General Insurance has invested in SOC and renewable energy sectors, with the total investments accounting for 3.6 trillion won or 20 percent of the company's working capital.

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