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Hyundai E&C, Your ESG Score Is...

17 Oct 2024 6min 58sec

HYUNDAI E&C ESG RECOGNITIONS AND INITIATIVES Jeju Hanlim Offshore Wind Farm HYUNDAI ENGINEERING & CONSTRUCTION


 Hyundai E&C, Your ESG Score Is… 

In October 2022, Hyundai E&C became the first listed construction company in Korea to announce its commitment to carbon net-zero with the 2045 Carbon Neutrality Roadmap. Guided by its vision of being a “Global Green One Pioneer”, Hyundai E&C is expanding its portfolio of renewable energy and net-zero projects, including solar PV, offshore wind, hydrogen plants, carbon capture, utilization, and storage (CCUS), biogas, power brokerage, and zero-energy buildings.


Hyundai E&C actively participates in globally recognized ESG assessments and initiatives to evaluate its sustainability efforts and identify areas for improvement. Notably, the company consistently maintains top ratings in the “Dow Jones Sustainability Index (DJSI)”, the world’s most authoritative ESG index that annually evaluates companies’ economic, environmental, and social sustainability. It also excels in the “Carbon Disclosure Project (CDP)”, which publishes climate change response reports for major global companies and serves as an investment guide for financial institutions worldwide. Through these initiatives, Hyundai E&C actively contributes to the global net-zero initiative. 


Additionally, Hyundai E&C is working on verifying its targets at the global level. By participating in the “Science-based Targets initiative (SBTi)”, which includes over 5,700 companies globally, the company has established and validated carbon reduction targets, further strengthening its practical sustainability management capabilities.



 Hyundai E&C's Key ESG External Assessme 

Hyundai E&C is participating in ESG RECOGNITIONS CDP Carbon Disclosure Project 2023 Climate Change A CDP Korea Hall of Fame (6 consecutive years) CDP Korea Platinum Club (3 consecutive years) DJSI Dow Jones Sustainability Indices DJSI Industry Leader cumulative 9 times DJSI World 14 consecutive years DJSI Asia-Pacific 14 consecutive years DJSI Korea 15 consecutive years 2024 Sustainability Yearbook Member KCGS Korea Institute of Corporate Governance and Sustainability Total A in 2023 (6 consecutive years) Environmental A Social A Governance A HYUNDAI ENGINEERING & CONSTRUCTION


Dow Jones Sustainability Index (DJSI)

Hyundai E&C has been included in the DJSI World Index, the highest ranking in the “2023 Dow Jones Sustainability Index (DJSI)”. The company ranked first among construction and engineering companies included in the DJSI World Index, and has been the only Korean builder to be included in the DJSI World for 14 consecutive years, continuing its leading edge in ESG management.


Overview of DJSI Assessment Criteria

*DJSI World: The top 10% of 2,500 global companies by market capitalization, evaluated for sustainability based on environmental, social, and governance (ESG) criteria

*Asia-Pacific/N.America/Europe: The top 20% of companies by region

*Korea, Australia, etc.: The top 30% of companies by country


✅ Dow Jones Sustainability Index (DJSI)

The DJSI is a sustainable investment index created by Dow Jones, the world’s largest financial information provider, in collaboration with RobecoSAM, a global investment firm based in Switzerland. It is widely regarded as the most authoritative index for ESG evaluation. Each year, the DJSI releases the results of its assessments, evaluating companies on their environmental and social sustainability, along with their economic performance.




The Carbon Disclosure Project (CDP)

Hyundai E&C received the highest rating of “Leadership A” in the Climate Change category at the “CDP Korea Awards”, a global sustainability management evaluation. “Leadership A” was assigned to only 300 companies, representing 1.5% of the approximately 23,200 global participants in the 2023 CDP assessment, with Hyundai E&C being the only Korean builder to earn this distinction. Since 2018, Hyundai E&C has been inducted into the Hall of Fame for six consecutive years and has been recognized in the Platinum Club, CDP Korea's highest tier, for three consecutive years.


Selection Criteria* of Award-Winning Companies for CDP Korea Awards Climate Change

*Hall of Fame

-Achieved Leadership A- or higher

- Companies verified by a CDP third party 

- Companies inducted into the Carbon Management Honors Club for five consecutive years

*Platinum Club: Companies in the Hall of Fame for four years or more

*Gold Club: Companies in the Hall of Fame for 1 to 3 years

*Carbon Management Honors Club: Top 5 companies that achieved Leadership A- or higher and were verified by a CDP third party

*Carbon Management Sector Honors: Top 3 companies in each sector that achieved Management B or higher

*Reference: 2023 CDP Korea Report


✅ The Carbon Disclosure Project (CDP) 

As a non-profit international organization founded in the UK in 2000, CDP publishes reports on major companies worldwide, assessing their carbon management strategies, risk management capabilities, and efforts to reduce greenhouse gas emissions in the fight against climate change. These reports are distributed to financial institutions globally and serve as an investment guide. CDP is recognized as one of the most authoritative sustainability indicators, alongside the DJSI.




Korea Corporate Governance and Sustainability (KCGS)

Hyundai E&C achieved an A grade in each of the environmental, social, and governance categories in the “2023 KCGS ESG Assessment”, earning an overall A grade for the sixth consecutive year since 2018.


✅ Korea Corporate Governance and Sustainability (KCGS)

KCGS is an organization that conducts assessments, research, and investigations on corporate sustainability, and is recognized as the most authoritative ESG evaluation and analysis body in Korea.


 Key Initiatives Joined by Hyundai E&C 

Hyundai E&C is participating in ESG INITIATIVES Received Approval from the SBTI First Korean listed E&C player to receive Approval for Reduction Targets in 2023 Joined the UNGC Industry-first to join UNGC in Korea in April 2010 Declared Support for the TCFD Declared Support for TCFD in August 2022 HYUNDAI ENGINEERING & CONSTRUCTION


Science-based Target Initiative (SBTi)

In 2023, Hyundai E&C became the first listed construction firm in Korea to receive approval for its greenhouse gas reduction targets from SBTi. The company plans to reduce Scope 1 and 2 emissions  (1.5°C scenario)* by 46.2% by 2030, relative to the baseline year of 2019 and aims to cut Scope 3 emissions (less than 2°C scenario)* by 25%* by 2030, relative to the reference year of 2020.

* Targets set for 67% of the Scope 3 emissions of the reference year.


How are science-based targets set?

The targets subject to SBTi verification are largely divided into Scope 1~3.

* Scope 1, 2

This refers to “direct and indirect emissions”, which include direct emissions of carbon in the course of business and indirect emissions that cause carbon generation, such as electricity use.  The level at which we need to keep global temperature increase below 1.5°C relative to the pre-industrial levels.

* Scope 3

The '“total external emissions” from the life cycle of purchased goods, services, and end products such as buildings. The level required to keep global temperature increase below 2°C relative to pre-industrial levels.


✅ Science-based Target Initiative (SBTi)

A global initiative for companies to verify their carbon reduction targets (Paris Climate Agreement*) is jointly run by CDP, UNGC, World Resources Institute (WRI), and World Wildlife Fund (WWF). Currently, more than 5,700 companies worldwide are taking part in the initiative.

* Paris Agreement: A global long-term goal to keep the increase in global average temperature well below 2°C relative to the pre-industrial levels, with efforts to limit the increase to 1.5°C.




UNGC Membership

Hyundai E&C officially joined the UNGC in April 2010, becoming the first company in Korea to do so. We are fulfilling our role as a globally responsible company by adhering to the UNGC's 10 principles on human rights, labor, the environment, and anti-corruption.


✅ UN Global Compact (UNGC)

Launched in 2000, the UN-led international agreement is the world's largest voluntary corporate citizenship initiative with over 24,000 companies from 165 countries. 




Endorsement of TCFD

Having declared its support for the TCFD in August 2022, Hyundai E&C is disclosing climate change-related information in accordance with the TCFD disclosure standards.


✅ Task Force on Climate-related Financials Disclosures (TCFD)

The TCFD is a task force established by the Financial Stability Board at the request of the G20 in response to the increasing likelihood of climate change causing financial crises and is tasked of  disclosing “climate-related financial information”. It is utilized in various disclosure standards such as ISSB, and is mandated in many jurisdictions such as the European Union, Singapore, Canada, Japan, and South Africa.




The above information is based on the [2024 HDEC Sustainability Report], 
which is available on Hyundai E&C's website.


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