Hyundai Engineering and Construction

Stakeholder engagement
The company discloses how often and through which channels it engages with various stakeholder groups as well as an overview of the issues raised during its stakeholder engagement activities. Its stakeholder engagement covers nature, including biodiversity, and social issues.

Resource exploitation and circularity 
The company discloses its inputs, including some information on its material footprint.

Solid and air pollution
The company discloses the proportion of hazardous waste treated to reduce pollution compared to total waste, the hazardous waste diverted from disposal and the waste directed to disposal.

GHG emissions 
Hyundai Engineering and Construction is reducing its scope 3 emissions. It has a time-bound target to reduce its scope 3 emissions and reports progress against it.

Safe, clean, healthy and sustainable environment 
Hyundai Engineering and Construction is committed to respecting local communities’ right to a safe, clean, healthy and sustainable environment. It should, however, reinforce the wording of its commitment to show further leadership. The company demonstrates that its human rights risks and impacts identification process includes a focus on the health of local communities.

Sustainability strategy and accountability
While the company discloses some sustainability targets, no evidence was found that it has group-wide targets on key sustainability topics for the most material parts of its value chain based on the SBTN Sectoral Materiality Tool. Furthermore, the company discloses that one of the CEO’s key performance indicators (KPIs) is linked to greenhouse gas emissions. However, it does not provide sufficient evidence that it links performance criteria in senior executives’ remuneration policies to specific targets and objectives which cover nature, including biodiversity, and social issues. The company has an opportunity to make its processes clearer. The company also does not disclose whether its highest governance body has expertise regarding nature-related topics.

Lobbying
The company discloses a list of trade associations of which it is a member wherever it operates. However, it does not disclose a clear and detailed framework for assessing alignment of its trade associations with nature-positive policies. Hyundai Engineering and Construction has an opportunity to develop such a review process and report (potential) misalignment between the lobbying activities of its trade associations and nature-positive policies.

Impact and dependencies assessment 
While the company states that it pre-emptively analyses the effects on the ecosystem for its project sites and adapts its plans accordingly, no further evidence was found that the company assesses its impacts on nature, including biodiversity, within its own operations. The company does not disclose any assessment of its impacts on nature, including biodiversity, in its supply chain. Hence, the company has an opportunity to make its biodiversity assessments public. The company also does not disclose any assessment of its dependencies on nature within its own operations or for its upstream business relationships.

Key areas and species
While the company provides the status of protected species near its sites, no evidence was found that the company discloses the locations that are in or adjacent to areas important to biodiversity within its own operations. Similarly, it does not disclose the locations of its suppliers that are in or adjacent to areas important for biodiversity. The company does not disclose species populations existing in or adjacent to its own locations or to the locations of its suppliers. Finally, the company does not disclose the status according to national and international conservation lists of species identified in its own locations. Overall, the company has an opportunity to strengthen its biodiversity reporting for both key areas and species.

Ecosystem conversion and restoration 
Hyundai Engineering and Construction has an opportunity to disclose a commitment to ensure zero conversion. Furthermore, while the company discloses some activities, it does not have time-bound targets to achieve conversion-free supply chains. Nevertheless, the company has a commitment to minimise ecosystem conversion and discloses some activities to minimise ecosystem conversion. The company is also committed to restoring ecosystems and discloses details and outcomes of ecosystem restoration projects in areas affected by its own operations or by its suppliers.

Resource exploitation and circularity
The company has an opportunity to report quantitatively on its group-wide circularity performance (e.g. circular material productivity). While the company discloses activities to improve soil health, it does not have a target to improve soil health in its production or sourcing practices.

Water 
No quantitative evidence was found of reductions in water withdrawal, nor does the company disclose a time-bound target to reduce water withdrawal across its own operations. However, it does report how much water is withdrawn for its own operations in water-stressed areas. The company has a strong opportunity to set a water target at the group level and report against it as well as to engage with suppliers to reduce water withdrawal. Furthermore, the company discloses its processes for managing and monitoring discharge water quality but does not regularly report on water pollution. Nor does it disclose targets to reduce water pollution, indicating room for improvement. The company does not disclose a commitment to respect the right to water, nor its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution 
The company is reducing the production of hazardous waste, but it is not reducing plastic use and waste in its own operations. It does not report on the amount of plastic waste generated and proportions directed from or to disposal. Additionally, the company has a strong opportunity to report on air quality parameters of emissions of harmful air pollutants as well as to set time-bound targets to reduce air pollutants across the most material parts of its value chain.

GHG emissions 
The company is reducing its scope 1 and 2 greenhouse gas emissions. It has a time-bound target to reduce its scope 1 and 2 emissions and reports progress against the target. However, it has an opportunity to set a reduction target for its scope 1 and 2 emissions aligned with a 1.5-degree trajectory. The company’s scope 3 emissions reduction target is not aligned with a 1.5-degree trajectory either.

Invasive species 
The company has not identified any activities that could lead to the introduction of invasive alien species (IAS) in its own operations.

Safe, clean, healthy and sustainable environment 
The company does not track its actual or potential negative impacts on the health of local communities. The company is not committed to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights 
While the company mentions Indigenous Peoples’ rights, it reports no commitment to respect their rights which references the relevant part(s) of ILO Convention No. 169 on Indigenous and Tribal Peoples or the UN Declaration on the Rights of Indigenous Peoples. The company does not disclose its processes for identifying and recognising the rights of Indigenous Peoples when activities in its own operations may impact their rights, nor does it describe how it obtains Indigenous Peoples’ free, prior and informed consent. The company does not disclose a commitment to respect ownership and use of land and natural resources and related legitimate tenure rights, as set out in the relevant part(s) of the VGGTs or the IFC Performance Standards. Nor does the company require its business relationships to have a process to identify legitimate tenure rightsholders, paying particular attention to vulnerable or marginalised tenure rightsholders, and to negotiate with them to provide adequate compensation. These aspects are strong opportunities for the company to improve.

The company describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations. It discloses that it assesses its human rights risks. It also discloses its major human rights issues. However, it does not describe the process for prioritising its human rights risks in enough detail: it is unclear which factors it has considered in the saliency assessment. While the company describes some corrective actions taken as a result of on-site human rights risk assessment processes and states that it should continuously monitor the effectiveness of the processes, it does not describe its global system to take action to prevent, mitigate or remediate its salient human rights issues, nor how its global system applies to its supply chain. There is no evidence that the company provides an example of the conclusions reached and actions taken or to be taken on at least one of its salient human rights issues as a result of assessment processes. The company discloses categories of stakeholders whose human rights have been or may be affected by its activities. However, there is no evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities.

The company has a publicly available policy statement committing it to respect the health and safety of its own workers and expecting its suppliers to do the same. The company discloses  that it has achieved paying all workers a living wage. The company also describes how it determines a living wage for the regions where it operates. While the company states that it expects its suppliers to pay wages that are sufficient for workers and their families to fulfil their basic needs, it has an opportunity to disclose how it works to support the payment of a living wage by its suppliers. The company discloses the proportion of its total direct operations workforce covered by collective bargaining agreements. However, there is no evidence that the company describes how it works to support the practices of its suppliers in relation to freedom of association and collective bargaining.

The company discloses a global tax strategy. There is no evidence that the company describes the process for identifying its bribery and corruption risks and impacts in specific locations or activities covering its own operations. Although the company has a supplier code of conduct in which it prohibits bribery and corruption, there is no evidence that it includes anti-bribery and anti-corruption clauses in its contracts with business relationships. The company outlines its approach to lobbying and political engagement but does not formalise this approach in a public policy document. The company states that it does not make political contributions but does not formalise this commitment in a public policy document.