Describe the process(es) your organization has in place to ensure that your engagement activities are consistent with your overall climate change strategy[…]To ensure that our climate change engagement is consistent to our overall climate change strategy, we have established the 'Process for ESG-related requests from external stakeholders(hereinafter ENGAGEMENT PROCESS)' through which all stakeholders including customers, suppliers, shareholders, organizations are covered.
The ENGAGEMENT PROCESS was made because our engagement may directly or indirectly influence policy or regulations regarding climate change. Our ENGAGEMENT PROCESS prevents personnel's incorrect or inaccurate reply by discretionary judgment and reinforces stakeholders trust through transparency and accuracy of the responses.
1. General practice; The process is usually carried out in 6 steps although exact process may differ depending on the details of the request - 1)REQUEST received, 2)Submit REQUEST to the ESG team including its purpose and requirements, 3)Designate responsible personal, 4)Collect data and draft response, 5)Review and internal approval, 6)Submit REQUEST and share result. When collecting data, the ESG team works with the personal to sensor whether the engagement data is consistent. In 2021, 31 engagements were made of which 1 request wasn't fully responded – Michelin's request for LCA calculation. We engaged with customers regarding SBT setting, product GHGs among others in 2021.
2. For engagement with government and associations(i.e. The Federation of Korean Industries, ISSB, etc.), each related business unit prepares the corresponding opinion, and the climate change response officer checks its consistency to HAMC's climate change roadmap and response strategy. HAMC is part of Korea Chemical Fiber Association, KOREA H2 BUSINESS SUMMIT and receives requests to submit opinions on ESG and climate change.
3. For engagement with shareholders or investors, there is an additional screening by the CFO and the IR manager. In October 2021, our shareholder Shinhan Asset Management inquired about our climate change response status including our strategy for the 3rd planning period of the K-ETS and our governance system. The ESG team drafted the response upon which the IR team and Finance Office reviewed the appropriateness and coherency.