HYOSUNG CORPORATION

Carbon per million dollars of revenue. The legacy industry-standard reference (CDP, MSCI). Useful for cross-sector context, but distorted by margin — high-margin firms appear artificially efficient. Read alongside the operational and asset intensities for the full picture.

OpEx (operating expenditure) is the running cost of the business — staff, services, energy, materials. This shows how carbon-intensive operations are per million dollars of spend. Removes the margin distortion that revenue-based ratios introduce.

EVIC (Enterprise Value Including Cash) is the firm's total capital footprint — equity + debt + cash + minority interest. The EU's standard intensity measure (SFDR PAI 3) — answers: how much carbon does each million of capital deployed in this business produce?

PP&E (Property, Plant & Equipment) plus leased real-estate assets is the firm's physical infrastructure on the balance sheet. This shows the carbon intensity of that physical footprint — uses Scope 1+2+3 for consistency with the other headline intensities. Surfaces stranded-asset risk for asset-heavy firms.

Hyosung currently has 0% renewable energy consumption. For reductions that are challenging to achieve solely through internal energy saving efforts, Hyosung plans a long-term approach through building photovoltaic power generation facilities and purchasing domestic third-party PPAs and RECs produced with new and renewable energy. The company intends to gradually increase the proportion of renewable energy in its operations. Once REC purchases and PPA contracts are implemented, market-based Scope 2 reporting will be adopted. In 2025, plans include target of 20% GHG reduction vs 2019 aligned with Hyundai Motor/Kia Motors goals, partially through renewable energy (solar) generation.

No narrative on durable removals approach in the firm's most recent reports.

• Environmentally friendly R&D for low-carbon textile and heavy industry products

  Hyosung invested KRW 14.3 billion in R&D in 2024, of which KRW 17.3 billion was related to environmentally friendly products (note: document states 14.3 billion total R&D with 17.3 billion eco-friendly R&D - this appears to be an error in source). Key eco-R&D includes: recycled polyester/nylon yarn technologies, bio-based spandex from fermented corn, chemical recycling pilot technology for waste fabric, and environmentally friendly high-voltage equipment (ester oil transformers replacing mineral oil, eco-friendly gas insulated switchgear replacing SF6 at 23,900 kgCO2eq/kgSF6 with Novec Mixture gas at ~500 kgCO2eq). In 2025, eco-R&D budget planned at 1.3x 2024 level.

• Korea ETS compliance and internal carbon pricing

  Hyosung is subject to Korea ETS (K-ETS) Phase 3 (2021-2025) covering 100% of Scope 1 and 2 emissions. An internal shadow carbon price is set annually in October based on KAU trading market closing prices: KRW 25,700 (2023), KRW 14,000 (2024), KRW 12,150 (2025). The price is applied to capital expenditure, operations, risk management, and opportunity management decisions. In 2024, Hyosung's emissions (29,477 tCO2) were below allocated credits (37,695 tCO2), generating KRW 12.1 million from surplus allowance sales. The company also holds 122,054 KOC credits from CDM projects convertible through 2029.

• Manufacturing energy efficiency improvements at Anyang Plant

  Hyosung annually devises and executes a facility investment plan for energy reduction with a dedicated budget. In 2024, the Anyang Plant implemented 8 energy efficiency initiatives achieving 790 tCO2eq in reductions, including replacement of air compressor cooling water pump (159 tCO2eq), normalization of 600HP turbo compressor (149 tCO2eq), boiler waste heat recovery system (161 tCO2eq), refrigerated dryer upgrades (189 tCO2eq combined), and process optimization. Electricity from electricity use accounts for ~70% of total emissions (Scope 2 is ~70% of S1+S2). KRW 5 billion planned over 2023-2030.

• Supply chain GHG reduction consulting and facility support

  Hyosung provides energy diagnosis consulting to suppliers to identify energy loss reduction methods. In 2024, 26 suppliers accounting for 95% cumulative production purchase amount were managed for environmental compliance. 18 out of 26 were re-evaluated; Hyosung supported LED lighting replacement for major raw material suppliers expected to reduce annual electricity by 14 MWh and GHG by 6.5 tonnes. Suppliers rated A receive energy reduction facility replacement cost support. ESG management education and consulting is provided to lower-rated suppliers. Supplier code of conduct includes environmental requirements equivalent to ISO 14001 level.

• Recycled and bio-based material products to reduce customer Scope 3 emissions

  Hyosung develops and sells recycled automotive carpets (BCF yarn products) using recycled PET bottles (Recycled Polyester pos), recycled fishing net nylon (Recycled Nylon pos/pre), and bio-based polyester materials. In 2024, recycled product sales reached KRW 5,901 million (40% YoY increase). LCA calculations per ISO 14040/14044 show 0.36 kgCO2/m2 avoided emissions for recycled polyester vs conventional and 2.83 kgCO2/m2 for recycled nylon carpets vs conventional. GRS certification obtained. In 2024, sales of recycled products avoided 22 tCO2 (polyester) + 143 tCO2 (nylon) = 165 tCO2 of customer Scope 3 emissions.

• Seagrass blue carbon sequestration project

  Hyosung collaborates with Korea Fisheries Resources Agency and local governments to create seagrass forests as blue carbon sinks. In 2022-2023, 10,000 seagrass seedlings were transplanted across 0.44 hectares near Dadae-Dapo Port, fixing 1.43 tCO2 annually per activity reports. Starting in 2024, Hyosung and affiliates are planting 40,000 seagrass seedlings and creating marine forest with seaweed across 159 hectares in Wando-gun, scheduled for completion by 2027. This supports Korea's Paris Agreement commitments and the establishment of marine absorption source business.