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Hyosung Chairman CHO Hyun-joon plans to involve himself directly in having domestic textile subcontractors build their ESG management capability in connection with the need to enhance their global competitiveness.
□ Hyosung TNC to carry out programs designed to help subcontractors enhance their ESG capability to upgrade their overall global competitiveness.
On March 16, Hyosung TNC said that it would push forward with a program designed to provide support to subcontractors in △ education and consulting for strengthening their ESG capability and △ eco-friendly certification expenses.
Said program is based on the realization that the global competitiveness of subcontractors needs to be enhanced amid the ever-increasing importance of their ESG management with the Supply Chain Due Diligence Act coming into force worldwide including the EU, starting next year.
Under the Act, the relevant businesses should undergo periodic due diligence concerning ESG factors such as environment, labor, human rights, governance structure, etc. related to their entire supply chain, and publish and remedy issues about workers’ human rights, environmental pollution, etc. found in the due diligence process.
For this, Hyosung TNC, with the help of a professional ESG consulting business, will provide sessions for the following to 11 subcontractors’ employees on a total of 4 occasions between March and June: △ ESG education in general, △ ESG-related diagnosis and guidance, and △ improvement.
Hyosung TNC intends to help subcontractors build their sustainable management capability based on the result of diagnosis of their ESG status, considering the difficulty they face in ESG regulations.
□ Also providing support for eco-friendly certifications such as GRS and Eco-Product Mark, the first ever attempt by a local textile business
In addition, Hyosung TNC will provide support in the area of issuance of eco-friendly certifications for subcontractors, the first ever attempt by a local textile business. Acquiring global eco-friendly certifications is expected to help subcontractors enhance their ESG competitiveness including being in a better position to cope with ESG regulations.
The Company plans to provide support by paying expenses for △GRS △SGS Eco Product Mark certifications to the 21 subcontractors making fabrics with Regen, the Company’s leading recycled polyester fabric, and Creora Bio-based as the world’s first bio fabric made with corn extracts.
The Eco Product Mark certifies that the relevant products have been made △ in an eco-friendly way through ESG management using △ eco-friendly raw materials and are thus △ not harmful to people.
Regen, which is a recycled polyester fabric developed by Hyosung TNC in 2008, became the first fabric in the world to acquire global recycled standard certification GRS in 2009.
As for Creora Bio-based, it acquired the Eco Product Mark from SGS (Société Générale de Surveillance), a Geneva-based institution for world-class inspection, test, and certification, in June 2022.
“ESG is becoming businesses’ criterion for value for present and future. We will set global trends for eco-friendly fabrics by helping subcontractors build their ESG management capability,” Hyosung Chairman CHO Hyun-joon said.