SEOUL, South Korea—Hankook Tire & Technology Co. Ltd. has established a corporate governance charter with the intent to provide transparent environmental, social and governance (ESG) management.
The Hankook board of directors approved the charter at its May 9 meeting.
According to the tire maker, the corporate governance charter "will ensure professionalism and independence of the board of directors and promote the rights and interests of all stakeholders including shareholders, consumers, and members."
The charter includes regulations on the rights and responsibilities of shareholders, roles and operations of the board, a structure of audit institutions, protection of rights of stakeholders and disclosure. It will be accessible for all shareholders on Hankook's website, as well as on Korea's Financial Supervisory Service's (FSS) Data Analysis, Retrieval and Transfer System (DART).
Hankook initiated the the committee in July 2021 in order to strengthen its ESG management strategies. Five committees—the ESG; audit; outside director nomination; sustainable management; and internal transaction—are affiliated within the board.
Mira Lee, with experience in corporate governance practices from global companies such as General Electric and Macquarie Group, is the committee's first chairperson. Lee is one of seven committee members, which will be comprised of inside and outside directors.
The committee will add three or more directors, with a majority coming from outside the board.
"Hankook Tire has met many milestones in fulfilling its responsibilities and roles as a top-tier ESG company, and is saving no efforts to reach sustainable growth in areas of economy, environment, and society," Sooil Lee, president CEO of Hankook Tire, said.
"Following the enactment of the charter, Hankook Tire plans to establish sound governance with objectivity and transparency, and strengthen its ESG leadership."
Hankook said it has been addressing ESG capabilities since 2010 by establishing the ESG committee and also sharing its vision of sustainability and publishing its annual ESG Report.
In early February, Hankook and Pirelli & C. S.p.A. were awarded the "gold class sustainability award 2022" by Dow Jones Sustainability World Index (DJSI). It the sixth straight year Hankook was so recognized.