Hanssem Co., Ltd. announced the release of its '2025 Sustainability Management Report' on July 1, outlining the company's ESG (Environmental, Social, and Governance) management status, achievements, and future plans.
This report notably adopts the EU's Sustainability Reporting Standards (ESRS) ahead of time, significantly enhancing the transparency and reliability of the information provided. Following last year's incorporation of the International Financial Reporting Standards (IFRS) International Sustainability Standards Board (ISSB) framework, Hanssem has further aligned its ESG assessment system with rigorous international standards by implementing the European criteria.
During the report preparation process, a 'Double Materiality Assessment' was conducted to address the impacts on corporate finance as well as the influence of corporate activities on the environment and society. As a result, eight key issues have been identified for focused management: climate change mitigation, responsible sourcing, sustainable product design, working conditions, human rights management, partnership growth, product safety and quality, and fair trade.
These issues are organized across five major chapters, with 'ESG Storytelling Content' featuring caricatures and interviews with employees and stakeholders, delivering the company's commitment to ESG management in a relatable and genuine manner.
Hanssem has strengthened transparent and accountable management by introducing an executive management system to establish a structure where the board of directors supervises business execution, thus enhancing both management efficiency and oversight. The improvement of the dividend record date system, allowing for a pre-determination of dividend amounts, has supported the activation of long-term investments, resulting in a 7 percentage point increase in compliance with key governance report indicators, reaching 60% compared to the previous year.
Actively participating in climate change initiatives, Hanssem established an ESG committee under the board in 2021, pursuing various implementation strategies such as reducing environmental impacts across product life cycles, sourcing sustainably certified timber, and improving energy efficiency in manufacturing plants.
Product safety and consumer protection are diligently managed, with efforts to expand the use of water-based paints, reduce solvent-based adhesives, and operate a claims review committee to build customer trust.
To promote employee human rights and diversity, Hanssem plans to conduct its first human rights survey in 2024, using the findings to conduct a human rights impact assessment, thus strengthening the human rights management system.
The company also operates a dedicated department for co-prosperity with partners, conducting compliance checks alongside mutual growth activities. Since 2023, Hanssem has established a code of conduct for partners and introduced ESG evaluation criteria to enhance supply chain sustainability.
Hanssem continues to engage with local communities, having improved the living conditions of 948 vulnerable households by the end of 2024 and aiming to surpass 1,000 households by 2025. Additionally, the company is expanding its focus from traditional housing improvements to include environmental protection activities such as planting nectar trees and developing buffer green spaces.
A Hanssem representative stated, "This report enhances management authenticity and execution by incorporating global ESG standards and reflecting the voices of on-site practitioners. We will continue to pursue transparent and sustainable management that meets the expectations of customers, investors, and society as a whole."
