Hankook Tire has established a corporate governance charter to promote transparent social, environmental, and governance management. The charter will help lay the foundation for the company’s sustainable business. It was approved on May 9.
In addition, it will enhance the independence and professionalism of the board of directors and uphold the rights and interests of all stakeholders. The charter covers regulations on the roles and operations of the board, the rights and responsibilities of the shareholders, the protection of rights of stakeholders, a structure of audit institutions, and disclosure.
Hankook said that the information will be available on the company’s website and on Korea’s Financial Supervisory Service’s Data Analysis, Retrieval, and Transfer System. In July 2021, the board of directors launched the ESG committee to strengthen ESG management strategies and activities. There are currently five operating units associated with the board including the ESG committee, outside director nomination committee, internal transaction committee, sustainable management committee, and audit committee.
The company says that the committee will include three or more directors to help enhance the function and expertise of the board. Majority of the members are from outside the board. Mira Lee was selected as the committee’s first chairperson. She has extensive experience leading corporate governance practices in global companies such as Macquarie Group and General Electric.
The committee has seven directors from inside and outside. Hankook has been publishing an annual ESG report since 2010 to help improve its ESG capabilities. This has allowed it to be recognized as the leader in sustainable management. The Dow Jones Sustainability Indices World gave it the highest score in the auto components group.