Kumho Petrochemical gets serious about sustainability
![Kumho Petrochemical’s head office in Jung-gu, central Seoul. [KUMHO PETROCHEMICAL]](https://koreajoongangdaily.joins.com/data/photo/2022/11/23/88dd2113-d2c9-4c1b-bfbf-fecc81ef4d32.jpg)
Kumho Petrochemical’s head office in Jung-gu, central Seoul. [KUMHO PETROCHEMICAL]
Kumho Petrochemical is modernizing measures to fulfill the company’s environmental, social and corporate governance goals.
Under the slogan, “Let’s Act, Advance and Accelerate for ESG!”, Kumho Petrochemical signaled its vision to grow its business while embracing the ESG philosophy.
By joining UN Global Compact (UNGC), a global initiative formed and governed by the UN, the company is elaborating its strategies for ESG management. Kumho Petrochemical wishes to fulfill the social responsibilities of companies through its participation in the UNGC and plans to release an annual Communication on Progress document showing the company’s efforts and activities to meet its sustainable development goals.
Kumho Petrochemical is approaching climate issues with vigor and responsibility after sharing blueprints for achieving carbon neutrality early this year. The company’s ESG committee has made long-term goals and procedures to reduce carbon emissions. It aims to prioritize carbon reduction levels until 2030 and balance emission with the amount that has been reduced by 2035. 2035 will be a stepping stone to fully accomplishing carbon neutrality in 2050.
Kumho Petrochemical’s products will be revolutionized to ensure eco-conscious manufacturing. The company is currently looking into how NB latex, which is the main component of medical nitrile gloves, can be transformed into a biodegradable substance.
Used plastic is also being recycled to ensure the positive flow of resource usage. Recycled styrene monomer (thermally recycled polystyrene) and solution-polymerized styrene-butadiene rubber (a synthetic rubber product manufactured by solution polymerization) are two of the company’s ambitious chemicals to facilitate environmental manufacturing by 2025.
Kumho Petrochemical has rearranged the company’s processes and guidelines to meet its vision of a safe and healthy business environment. Its safety environment team has been renamed as the safe environment planning office, ensuring the company has an independent division focused solely on safety.
Kumho Petrochemical has made continuous attempts to support the socially isolated. Old doors and windows at welfare centers have been remade using Kumho building materials from its Hugreen brand. The company has also made a number of donations of walking sticks and other devices designed for assisted living.
Alternative business structures have been introduced to effectively ensure ESG goals are met and the company flourished. A number of committees have been newly created under Kumho Petrochemical’s board of directors, strengthening their role and significance. Apart from the ESG committee and business management committee, all committees are comprised of nonexecutive directors.
Kumho Petrochemical plans to expand shareholder returns to optimal levels to ensure the rights and interests of shareholders. The accounting-based profit dividend in 2021 was the largest ever, followed by the acquisition of treasury stocks worth 150 billion won.
BY LEE HYE-IN [lee.hyein@joongang.co.kr]
with the Korea JoongAng Daily
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