Hyosung demonstrates its commitment to preserving the environment through a research and development investment of 104.3 billion won and the registration of 3,310 patents. Why does Hyosung prioritize environmental concerns to such a great extent?

In South Korea, the period with the heaviest rainfall during the year is commonly referred to as the ‘monsoon' season. However, due to the rapidly changing climate, there has been speculation about the potential obsolescence of the term 'monsoon.' This is caused by the fact that the weather patterns during the supposed 'monsoon' season have become more and more unpredictable. As a result, people have been making comments such as 'it doesn't feel like a monsoon' or 'this doesn't seem like the monsoon season.' This phenomenon is not exclusive to Korea; it is observed globally as the world grapples with the consequences of rapid climate change. ESG management has gained significant attention as an alternative as a consequence. ESG management encompasses the belief in taking into account environmental responsibility, social accountability, and governance improvement in order to achieve sustainable progress. The importance of environmental considerations is increasing rapidly.

Hyosung is committed to conducting research and development efforts that benefit future generations. We are actively promoting eco-friendly initiatives and projects that specifically target the issue of climate change.

Three Efforts to Save the Earth

Hyosung's businesses are committed to environmental efforts, with a strong emphasis on extensive, continuous, and systematic approaches. This involves the development of materials that safeguard biodiversity and the envisioning of a society with low carbon emissions in the future.

1) Wide-Ranging and Focused Efforts (RE:GEN GUARDIAN)

Hyosung is currently implementing a seagrass conservation project with the goal of reducing carbon emissions. Seagrass is a marine organism that plays a crucial role in the absorption of carbon by the world's oceans and coastal ecosystems. It is considered a significant contributor to the concept of blue carbon, which plays a great role in reducing greenhouse gas emissions. Hyosung, along with our subsidiaries Hyosung TNC and Hyosung Heavy Industries, has been actively engaged in seagrass conservation efforts. We have successfully established seagrass forests and have been effectively managing them for a period of one year. Additionally, we have continued our commitment to seagrass conservation for a total of three years. The seagrass conservation project has yielded significant results, as evidenced by a 2.5-fold increase in the number of benthic animal specimens since the establishment of the seagrass forest. The number of species has increased by 1.5 times, and the diversity index of organisms has increased by 1.2 times.

Hyosung Chemical is also preserving biodiversity through a collaboration with the Cheongju Zoo's Animal Behavior Enrichment Program for endangered species. The Animal Behavior Enrichment program offers captive animals that have lost their natural instincts due to captivity opportunities to engage in active feeding and abundant movement. This activity improves the physical and mental health of non-habitat protected species and positively influences their reproduction. It is anticipated that the Animal Behavior Enrichment program will contribute to the preservation of various animals on Earth.

We are actively involved in projects aimed at promoting plant diversity. Hyosung Advanced Materials is currently undertaking initiatives to restore the habitat of Dysophylla yatabeana Makino and conduct cleanup efforts on pet beaches. As part of our ecosystem preservation and restoration project, we have established a planting site for the endangered Class II Dysophylla yatabeana Makino and donated 2,000 seeds. Additionally, through the 'One Company, One River' program, we are dedicated to preserving plant diversity by eliminating harmful plants during pet beach cleanup activities.

2) Sustained Efforts: Creating a Hydrogen Ecosystem

Hyosung firmly believes that it is absolutely crucial to continue making efforts to protect the Earth's environment. It is crucial for our society to shift away from relying on fossil fuels, as they are a major contributor to the rise in carbon emissions. Instead, we should focus on adopting sustainable energy sources that not only address our current needs but also hold promise for the future. That is why Hyosung is currently involved in the design of a hydrogen society.

Hyosung Chemical and Hyosung Heavy Industries are on the verge of completing the world's largest LIQUID hydrogen plant. Creating a hydrogen ecosystem is one effort to address climate change by reducing carbon emissions. We are partnering with The Linde Group, a global gas company, to construct a remarkable plant with the capacity to produce 13,000 tons of LIQUID hydrogen annually. This plant has the potential to greatly enhance the hydrogen ecosystem. In addition, the LIQUID hydrogen produced at this facility will be supplied to the hydrogen refueling stations supported by Hyosung Heavy Industries to expedite the commercialization of hydrogen-powered vehicles.

3) Meticulous and Systematic Efforts: regen, PET Tirecord, and POKETONE

Hyosung TNC, a leading chemical fiber company in Korea, is introducing environmentally friendly fibers under the name regen. Since the pioneering development of eco-friendly recycled Polyester fibers in 2008, Hyosung TNC has successfully expanded its production to include eco-friendly fibers for all three major chemical fibers: polyester, nylon, and spandex.

For the first time in Korea, regen Polyester, a material made from 100% recycled plastic bottles, can reduce carbon dioxide emissions by 40-50% compared to conventional yarns. In nylon, regen Ocean Nylon, the world's first recycled fiber developed in 2007, can reduce carbon dioxide emissions by 73%, fossil fuel use by 75.7%, and water consumption by 98.6% compared to conventional nylon. In addition, regen Bio-Based, the world's first bio-spandex processed from natural raw materials derived from corn instead of coal, can reduce water use by 39% and carbon dioxide emissions by 23% compared to conventional spandex. What's more, every ton of regen Bio-Based used saves as much carbon as 378 pine trees absorb in a year.

Hyosung Advanced Materials has successfully obtained the world's first ISCC PLUS certification for its eco-friendly PET tire cords. This certification is internationally recognized and signifies its dedication to producing environmentally friendly materials. The high-strength Recycled-PET yarn, which is made from recycled PET bottles, has also been certified by international eco-friendly certification organizations with the Global Recycled Standard (GRS) certification. Furthermore, we have successfully created industrial Bio-PET yarn by extracting Bio-EG from plant-based materials. This innovative yarn is then used in the manufacturing and distribution of tirecords and car mats. Lyocell tirecords are made from cellulose extracted from wood and can be used as a substitute for rayon tirecords, which are commonly used as reinforcement material in high-speed tires. The utilization of Lyocell tirecords helps prevent air and water pollution since no harmful substances are produced during the manufacturing process. This contributes to the preservation of the environment. TANSOME®, a remarkable super fiber, has garnered attention for its practical applications due to its exceptional strength, which surpasses that of steel by over ten times, while weighing only a quarter as much. Carbon fiber is a lightweight material that is widely used in various industries, including aircraft manufacturing, space vehicles, and wind turbine blades. It is often referred to as a super fiber due to its strength and heat-resistant properties. Additionally, it is utilized in the manufacturing of fuel tanks for environmentally friendly hydrogen cars and high-pressure containers for natural gas, thereby making a valuable contribution to the eco-friendly energy sector.

Hyosung Chemical has introduced a new eco-friendly polymer material called polyketone, world’s first of its kind to be commercialized. It is composed of carbon monoxide and olefins (ethylene, propylene), which are major contributors to air pollution. POKETONE is the brand name of Hyosung Chemical's eco-friendly engineering plastic polyketone. Polyketone is a new material that can replace plastics and has the effect of reducing carbon dioxide generation just by using it. This is because each ton of polyketone produced reduces carbon monoxide by about 0.5 tons. In particular, it is harmless to the human body and does not produce any harmful substances, so it can be applied to food containers and children's and infant products. It can also be used in various other fields such as automobiles and electronics, industrial pipes, LEDs, cable ties, tirecords, and industrial ropes and hoses.

Prioritizing eco-friendliness has become essential for becoming a premium brand in the global market and ensuring the well-being of future generations. Hyosung's eco-friendly and climate change response businesses are not merely additional ventures for ESG management; instead, they serve as the driving force behind Hyosung's new growth and form the core of its innovation. Hyosung is actively taking practical and tangible steps to tackle climate change. We have implemented comprehensive and targeted initiatives across all our business units, and are dedicated to maintaining and expanding these efforts in the future.

Hyosung's ESG brand, RE:GEN (Reply to Every Generation's Future), represents Hyosung's commitment to addressing the needs of every generation. It combines a vision and mission that envisions a happier and more sustainable future for all generations, utilizing Hyosung's strengths. This future is intended for those living in the present as well as future generations. Its goal is to leverage all ideas and knowledge in order to create a future that is both happier and more sustainable for everyone. Our company is dedicated to earning the trust of our customers through the use of cutting-edge technology and our commitment to creating a sustainable future for all. Hyosung's ESG is committed to becoming a company that prioritizes technology solutions for the benefit of customers, the planet, and future generations. We will strive to create a brighter future for everyone.