Pursuing Carbon Neutrality by 2050, Establishing Annual Reduction Targets
Advancing Systematic ESG Management Capabilities
Hanssem Co., Ltd., a comprehensive home interior specialist, has published its “2023 Hanssem Sustainability Management Report,” which details the current status, achievements, and future roadmap of its ESG (Environmental, Social, and Governance) management. Hanssem has published a sustainability management report for four consecutive years since 2020, continuing to strengthen its ESG management.
In this sustainability management report, Hanssem expressed its commitment to strengthening its response to climate change. First, the company disclosed its goals of completing its environmental management system by 2025 and achieving “carbon neutrality (Net Zero)” by 2050. Previously, Hanssem expanded its scope last year to “Scope 3,” which manages indirect greenhouse gas emissions including those from partner companies, and also joined the world-renowned nonprofit organization CDP (Carbon Disclosure Project).
In particular, this year Hanssem included a TCFD (Task Force on Climate-related Financial Disclosure) report in its sustainability management report. The TCFD is a body established in 2015 by the Bank for International Settlements (BIS) and the Financial Stability Board (FSB) at the request of the G20 (Group of 20). It recommends that companies identify risks and opportunities arising from climate change, establish strategies, and disclose the financial impacts in quantified reports. Hanssem is the first domestic home interior company to declare its support for the TCFD and to disclose such a report.
Introducing Double Materiality Assessment and Selecting 12 Key Issues to Systematize ESG Management
Hanssem also introduced a “double materiality assessment” this year to systematize its ESG management. The double materiality assessment is a process of selecting the ESG issues a company should prioritize by considering both the impact of the company’s ESG management on the environment and society, and the impact of the environment and society on the company. Hanssem selected a total of 12 key issues, including ▲sustainability management strategy ▲carbon emissions reduction ▲climate change response ▲community engagement and ▲shared growth. Based on these, the company plans to strengthen its ESG management capabilities through active cooperation with relevant departments and internal and external stakeholders.
In the social domain, the company will focus on ▲human resource development ▲strengthening safety and health and ▲shared growth. In the second half of last year, Hanssem obtained “ISO45001” certification, which verifies that a company identifies and prevents risk factors related to accidents and injuries that may occur to employees at its workplaces. Starting in the second half of this year, the company plans to establish a “Supplier Code of Conduct” and distribute it to its supply partners. In addition, Hanssem added “disclosure of chemical substance information”—conducting chemical safety tests before launching new products and informing stakeholders of the results—as a key issue in the social domain.
In the governance domain, the company plans to continue its transparent management system centered on seven subcommittees within the board of directors, including the ESG Committee and the Audit Committee. Over the course of 2022, Hanssem held 14 board meetings and deliberated and resolved a total of 44 agenda items, demonstrating active board activity. In addition, Hanssem intends to continue improving its governance through measures such as ▲strengthening its ethics program and ▲expanding information disclosure.